Review report, state of Georgia, Georgia Student Finance Commission, year ended June 30, 1994

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STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

REVIEW REPORT STATE OF GEORGIA GEORGIA STUDENT FINANCE COMMISSION YEAR ENDED JUNE 30, 1994

GEORGIA STUDENT FINANCE COMMISSION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

EXHIBITS

FINANCIAL STATEMENTS

A COMBINED BALANCE SHEET (STATUTORY BASIS)

ALL FUND TYPES AND ACCOUNT GROUPS

2

B COMBINED STATEMENT OF CHANGES IN FUND BALANCES

(STATUTORY BASIS)

GOVERNMENTAL FUND TYPES

4

C STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

5

STATEMENTS OF FUNDS AVAILABLE AND EXPENDITURES

COMPARED TO BUDGET

BUDGET FUND

D

"A" STUDENT FINANCE COMMISSION

8

E

"B"LOTTERYFOREDUCATION

9

F STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS

STATE REVENUE COLLECTIONS FUND

10

G NOTES TO THE FINANCIAL STATEMENTS

11

SUPPLEMENTARY INFORMATION

H COMBINING BALANCE SHEET (STATUTORY BASIS)

BUDGET FUND

22

I COMBINING STATEMENT OF CHANGES IN FUND BALANCES

(STATUTORY BASIS)

BUDGET FUND

23

J COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

24

K COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

FIDUCIARY FUND TYPE - AGENCY FUNDS

27

SCHEDULES

SCHEDULES OF APPROVED BUDGET

I

"A" STUDENT FINANCE COMMISSION

28

2

"B" LOTTERY FOR EDUCATION

29

3 CASH AND CASH EQUIVALENTS

30

GEORGIA STUDENT FINANCE COMMISSION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

SUPPLEMENTARY INFORMATION

SCHEDULES

4 SCHEDULEOFFEDERALREVENUES

31

5 SCHEDULE OF OTHER OPERATING EXPENSES

32

6 RECONCILIATION OF TRAVEL

33

7 SUMMARY OF SALARIES, TRAVEL, AND PER DIEM AND FEES

34

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION I FINANCIAL

CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174
TAX RATIO (404) 656-0494

~.epartm.eut nf J\uhits
254 WASHINGTON STREET, S.W. ROOM 214
J\thmht, @eorgia 30334-8400
November 24, 1994

FINANCIAL AUDITS (404) 656-2180
PROGRAM AUDITS (404) 656-2006

Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members of the Board of Commissioners of the Georgia Student Finance Commission
and Honorable Stephen Dougherty, Executive Director
INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have reviewed the accompanying financial statements (Exhibits A through G) of the Georgia Student Finance Commission as of and for the year ended June 30, 1994, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. As described in Note 1, these financial statements were prepared on a prescribed basis of accounting that demonstrates compliance with the budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. All information included in these financial statements is the representation of the management of the Georgia Student Finance Commission.
A review consists principally of inquiries of agency personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware ofany material modifications that should be made to the accompanying financial statements in order for them to be in conformity with the basis of accounting described in Note 1.
Our review was made for the purpose ofexpressing limited assurance that there were no material modifications that should be made to the financial statements in order for them to be in conformity with the basis of accounting described in Note 1. The accompanying supplementary information (Exhibits H through Kand Schedules 1 through 7) is presented only for supplementary analysis purposes. Such information has been
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subjected to the inquiries and analytical procedures applied in the review of the financial statements and we are not aware of any material modifications that should be made thereto.
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Claude L. Vickers State Auditor

FINANCIAL STATEMENTS - 1-

GEORGIA STUDENT FINANCE COMMISSION COMBINED BALANCE SHEET (STATUTORY BASIS)
ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 1994

ASSETS Cash and Cash Eguivalents
(See Schedule) Accounts Receivable
State Appropriation Federal Financial Assistance Other
Fixed Assets Equipment
Amount to be Provided for Payment of Accrued Compensated Absences
Total Assets
LIABILITIES AND FUND EQUITY Liabilities
Accounts Payable Payroll Withholdings Funds Held for Others Compensated Absences
Total Liabilities Fund Equity
Investment in General Fixed Assets Fund Balances
Reserved Federal Financial Assistance Georgia Higher Education Assistance Corporation Georgia Student Finance Authority Lottery for Education State Revenue Collections Fund
Unreserved Designated Surplus Regular Lottery for Education Total Fund Equity
Total Liabilities and Fund Equity

GOVERNMENTAL FUND TYPES

BUDGET

STATE REVENUE COLLECTIONS

$ 4,7B8,031.90 $ 11,262.69

$

0.42

61,048.00

132,573.35

$ 193,621.77

$==4=,9=8==1=,6=5==3=.6==7 $=====1=1=,2==6=2=.6==9

$ 60,295.74 398.00
$ 60,693.74

$

932.85

11,922.97 2,141.15
500,000.00 $

11,262.69

94,106.49 4,311 , 856. 47 $ 4,920,959.93 $

11,262.69

$ 4,981,653.67
=============

$=====1=1=,2==6=2=.6==9

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement.
- 2-

EXHIBIT "A"

FIDUCIARY FUND TYPE
AGENCY

ACCOUNT GROUPS

GENERAL FIXED
ASSETS

GENERAL LONG-TERM
DEBT

TOTALS
(Memorandum Only) JUNE 30, 1994 JUNE 30, 1993

$ 328,047.25

$--5-,1-2--7-,3--4-1-.8--4 $----2-5-3-,-9-0-7-.-0-6

$

0.42 $ 28,288.31

61,048.00

0.00

----1-3-2-,-5-7-3-.-3-5 ----1-4-5-,-2-5-6-.-6-3

$----1-9-3-,6--2-1-.7--7 $----1-7-3-,-5-4-4-.9--4

$----3-6-4-,0--6-4-.4--3

$----3-6-4-,0--6-4-.4--3 $---3--5-3-,3--3-4-.6--9

$----3-6-8-,-8-2-9-.-9-8 $----3-6-8-,-8-2-9-.9--8 $----3-1-2-,3--6-3-.6--9

$ 328,047.25 $ 364,064.43 $ 368,829.98$ 6,053,858.02 $1,093,150.38

$ 328,047.25
------------$----3-2-8-,0--4-7-.2--5

$ 60,295.74 $ 74,915.17

398.00

445.00

328,047.25

187,387.61

$---3--6-8-,8--2-9-.9--8 ----3-6-8-,8--2-9-.9--8 ----3-1-2-,3--6-3-.6--9

$----3-6-8-,-8-2-9-.9--8 $----7-5-7-,-5-7-0-.9--7 $----5-7-5-,-1-1-1-.4--7

$ 364,064.43

$ 364,064.43 $ 353,334.69

932.85 11,922.97 2,141.15 500,000.00 11,262.69

0.00 0.00 0.00 0.00 146,529.13

------------$---3--6-4-,0--6-4-.4--3

94,106.49

18,175.09

-4--,3-1--1-,8-5--6-.4--7 ----------0-.-0-0

$--5-,2-9--6-,2--8-7-.0--5 $----5-1-8-,0--3-8-.9--1

$ 328,047.25
::::============

$===3==6=4=,0==6=4=.4==3

$ 368,829.98
========;::;====

$==6=,0=5==3=,8=5==8=.0=2=

$==1=,0=9==3=,1==5=0=.3==8

- 3-

GEORGIA STUDENT FINANCE COMMISSION COMBINED STATEMENT OF CHANGES IN FUND BALANCES (STATUTORY BASIS)
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1994

EXHIBIT "B"

BUDGET

STATE REVENUE COLLECTIONS

TOTALS (Memorandum Only)
YEAR ENDED ---------------------------JUNE 30, 1994 JUNE 30, 1993

FUND BALANCES - JULY 1

Reserved Unreserved
Designated Surplus
ADDITIONS

$ 146,529.13 $ 146,529.13 $ 15,295.00

$ 18,175.09

18,175.09

28,286.89

------------- ------------- ------------- -------------

$ 18,175.09 $ 146,529.13 $ 164,704.22 $ 43,581.89
------------- ------------- ------------- -------------

Adjustments to Prior Year's Accounts

Payable

$ 38,172.40

Cash Receipts for the Year

Exhibit "F"

$

Excess of Funds Available over Expenditures

Exhibit "C"

4,882,787.53

$ 38,172.40$

224,914.33

224,914.33

4,882,787.53

3,108.41 276,743.30
15,066.68

$ 4,920,959.93 $ 224,914.33 $5,145,874.26$ 294,918.39

DEDUCTIONS

Unreserved Fund Balance (Surplus) Returned to Office of Treasury and Fiscal Services Year Ended June 30, 1992 Year Ended June 30, 1993
Cash Disbursements for the Year Exhibit "F"
FUND BALANCES - JUNE 30

$

0.00

18,175.09

$

0.00 $ 28,286.8~

18,175.09

0.00

$ 360,180.77

360,180.77

145,509.17

------------- ------------- ------------- -------------

$ 18,175.09 $ 360,180.77 $ 378,355.86 $ 173,796.06
------------- ------------- ------------- -------------

(To Exhibit "A")

$ 4,920,959.93 $ 11,262.69 $4,932,222.62$ 164,704.22
============= ============= ============= =============

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement.
- 4 :.

GEORGIA STUDENT FINANCE COMMISSION STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND
YEAR ENDED JUNE 30. 1994

EXHIBIT "C" Page 1

FUNDS AVAILABLE
REVENUES
STATE APPROPRIATION General Appropriation Amended Appropriation
Less: Lapsed Funds
Total State Appropriation
FEDERAL REVENUES (See Schedule)
OTHER REVENUES RETAINED Georgia Higher Education Assistance Corporation Georgia Student Finance Authority Interest Earned Sales of Photocopies and Publications
Total Other Revenues Retained

TOTALS YEAR ENDED JUNE 30. 1994 JUNE 30. 1993

$60,477,777.00 $25,039,875.00 11,562,379.00 -162,878.00

$72,040,156.00 $24,876,997.00

17.368.789.00

0.00

$54,671,367.00 $24,876,997.00

$ 102. 777 .oo $_ _ _......._o...o._o_

$2,635,768.08$ 2,765,853.00

1,984,226.92 2,043,075.00

152,478.04

6,171.31

0.00

1,139.25

$4,772,473.04 $ 4,816,238.56

Total Funds Available

$59.546,617.04 $29,693,235.56

EXPENDITURES
PERSONAL SERVICES
Salaries and Wages Employer's Contributions for:
F.I.C.A. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance Assessments by Merit System
REGULAR OPERATING EXPENSES
Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Rents (Other than Real Estate) Insurance and Bonding Other Operating Expenses (See Schedule) Duplicating and Rapid Copy Publications and Printing
TRAVEL

$ 3,066,899.62 $ 3,183,446.05

221,503.70
493,249.08 381,173.51
17,880.00 5,013.00
11,681.00 20,468.63

229,195.86
498,420.66 396,348.90
13,046.00 3,335.00
7,897.00 17,557.35

$ 4,217,868.54 $ 4,349,246.82

$

1,827.44 $

260,710.58

6,853.80

1,200.00

2,544.43

43,522.59

1,078.00

50,667.79

$_...3::6:.8:,:4~0=4.63 $

$_ __,8.a1.:,.,1.:3.=0.18 $

2,589.24 238,122.01
13,732.22 309.00
1,958.00 21,868.01
0.00 76,829.00
355,407.48
67,880.59

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement.
- 5-

GEORGIA STUDENT FINANCE COMMISSION STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "C'' Page 2

EXPENDITURES EQUIPMENT
Equipment Purchases Rental of Equipment
COMPUTER CHARGES Other Costs Supplies and Materials Repairs and Maintenance Rents (Other than Real Estate) Other Operating Expenses (See Schedule) Software Equipment Equipment Purchases Per Diem, Fees and Contracts Contracts Computer Billings, DOAS
REAL ESTATE RENTALS TELECOMMUNICATIONS PER DIEM, FEES AND CONTRACTS
Per Diem and Fees Contracts
OTHER GUARANTEED EDUCATIONAL LOANS Other Costs Tuition and Scholarships Georgia Student Finance Authority TUITION EQUALIZATION GRANTS Other Costs Tuition and Scholarships Georgia Student Finance Authority STUDENT INCENTIVE GRANTS Other Costs Tuition and Scholarships Georgia Student Finance Authority LAW ENFORCEMENT PERSONNEL DEPENDENTS' GRANTS Other Costs Tuition and Scholarships Georgia Student Finance Authority NORTH GEORGIA COLLEGE ROTC GRANTS Other Costs Tuition and Scholarships Georgia Student Finance Authority

TOTALS YEAR ENDED JUNE 30. 1994 JUNE 30, 1993

$ 10,948.03 $

5,824.72

10,180.32

12,916.54

$ 21,128.35 $ 18,741.26

$ 38,031.91 $ 8,865.40 1,844.97 2,819.05 36,510.90
17,202.50
145,741.95 9,106.36
$_..:..:2;.6:u0..:,;1.:2:,3.04 $
$_ __.3,...2.,.,_3""9""3' .96 $
$_....1.4_8.~,3...3....1.55 $

27,935.69 98,901.03
1,269.41 68.95
43,142.68
10,630.28
103,609.87 180.00
285,737.91
24,76~.96
146,890.02

$ 31,109.89 $ 22,750.81

8,819.34

15,540.03

$ 39,929.23$ 38,290.84

$3,130,819.00$ 3,130,818.00 $18,561,740.00 $16 I 774,274 00 $ 3,901,380.00 $ 3,701,379.00 $ 38.000.00 $ 38,000.00 $ 79,500.00$ 85,000.00

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement.
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GEORGIA STUDENT FINANCE COMMISSION STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND
YEAR ENDED JUNE 30, 1994

EXHIBIT "C" Page 3

EXPENDITURES
OTHER
OSTEOPATHIC MEDICAL LOANS Other Costs Tuition and Scholarships Georgia Student Finance Authority
GEORGIA MILITARY SCHOLARSHIP GRANTS Other Costs Tuition and Scholarships Georgia Student Finance Authority
HOPE FINANCIAL AID Personal Services Salaries and Wages Employer's Contributions for: F. I .C.A. Retirement Health Insurance Other Costs Supplies and Materials Tuition and Scholarships Other Operating Expenses (See Schedule) Publications and Printing Travel Equipment Equipment Purchases Computer Charges Other Costs Supplies and Materials Other Operating Expenses (See Schedule) Software Equipment Equipment Purchases Lease/Purchase of Equipment Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Contracts
TUITION EQUALIZATION GRANTS Other Costs Tuition and Scholarships Technical Institutes
Total Other
Total Expenditures
Excess of Funds Available over Expenditures

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$ 160,000.00 $ 160,000.00

$ 543,740.00 $ 501,740.00

$ 85,287.44 $
6,028.29 13,453.21 10,660.95
29,054.12 16,606,986.36
17,689.55 69,505.13 3,625.79
19,218.54
1,862.01 313.99
4,306.75
31,535.28 4,218.00 26,902.34
23,294.94 616,455.94
$17,570,398.63 $

0.00
0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00
0.00
0.00 0.00 0.00
0.00 0.00 0.00
0.00 0.00
0.00

$ 5,508,942.40 $_ _ _ _0.~0-0

$49,494,520.03 $24,391,211.00

$54,663,829.51 $29,678,168.88

4,882,787.53

15,066.68

$59,546,617.04 $29,693.235.56

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement.
- 7-

GEORGIA STUDENT FINANCE COMMISSION STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"A" STUDENT FINANCE COMMISSION YEAR ENDED JUNE 30 1 1994

EXHIBIT "0"

FUNDS AVAILABLE
REVENUES
State Appropriation Federal Revenues Other Revenues Retained

BUDGET

ACTUAL

VARIANCE FAVORABLE (UNFAVORABLE)

$26,926,367.00 $26,926,367.00$

0.00

1,630,337.00 102,777.00 -1,527,560.00

7,205,152.00 4,626,275.54 -2,578,876.46

$35,761,856.00 $31,655,419.54 $-4,106,436.46

EXPENDITURES
Persona1 Services Regular Operating Expenses Travel Equipment Computer Charges Real Estate Rentals Telecommunications Per Diem, Fees and Contracts Guaranteed Educational Loans Tuition Equalization Grants Student Incentive Grants Law Enforcement Personnel Dependents' Grants North Georgia College ROTC Grants Osteopathic Medical Loans Georgia Military Scholarship Grants Paul Douglas Teacher Scholarship Loans

$ 4,787,335.00 $ 4,217,868.54 $ 569,466.46

399,307.00

368,404.63

30,902.37

87,133.00

81,130.18

6,002.82

20,944.00

21,128.35

-184.35

379,500.00

260,123.04

119,376.96

32,394.00

32,393.96

0.04

147,198.00

148,331.55

-1,133.55

50,757.00

39,929.23

10,827.77

4,076,000.00 3,130,819.00

945,181.00

19,531,108.00 18,561,740.00

969,368.00

5,003,940.00 3,901,380.00 1,102,560.00

38,000.00

38,000.00

0.00

79,500.00

79,500.00

0.00

160,000.00

160,000.00

0.00

543,740.00

543,740.00

0.00

425,000.00

0.00

425,000.00

------------- ------------- -------------

$35,761,856.00 $31,584,488.48$ 4,177,367.52

Excess of Funds Available over Expenditures

$ 70,931.06 $ 70,931.06
============= =============

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.

The notes to the financial statements are an integral part of this statement.

- 8-

GEORGIA STUDENT FINANCE COMMISSION STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"B" LOTTERY FOR EDUCATION YEAR ENDED JUNE 30, 1994

EXHIBIT "E"

FUNDS AVAILABLE
---------------
REVENUES
--------
State Appropriation Other Revenues Retained
EXPENDITURES Hope Financial Aid Tuition Equalization Grants
Excess of Funds Available over Expenditures

BUDGET

ACTUAL

VARIANCE -
FAVORABLE
(UNFAVORABLE)
--------------

$45,113,789.00 $27,745,000.00 $-17,368,789.00

0.00

146,197.50

146,197.50

------------- ------------- --------------

$45,113,789.00 $27,891,197.50 $-17,222,591.50

$39,413,797.00 $17,570,398.63 $ 21,843,398.37

5,699,992.00 5,508,942.40

191,049.60

$45,113,789.00 $23,079,341.03 $ 22,034,447.97

$ 4,811,856.47 $ 4,811,856.47

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement.
- 9-

GEORGIA STUDENT FINANCE COMMISSION STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
STATE REVENUE COLLECTIONS FUND YEAR ENDED JUNE 30 1 1994
CASH RECEIPTS STATE REVENUE COLLECTIONS
Nonpublic Postsecondary Educational Institution Agent's Fees Application and Renewal Fees Sale of Publications Total Cash Receipts
CASH AND CASH EQUIVALENTS - JULY 1, 1993
DISBURSEMENTS TRANSFERS
To Office of Treasury and Fiscal Services CASH AND CASH EQUIVALENTS - JUNE 30, 1994

EXHIBIT "F"
$ 158,103.97 49,921.01 16,889.35
$ 224,914.33 146,529.13
$ 371,443.46
=============
$ 360,180.77 11,262.69
$ 371,443.46

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement.
- 10 -

GEORGIA STUDENT FINANCE COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT "G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY The Georgia Student Finance Commission, an organizational unit of the State of Georgia, is part of the executive branch of the government ofthe State of Georgia. The Commission was created for the purpose of administering a Guaranteed Educational Loan Program in the State of Georgia. The Board of Commissioners of the Georgia Student Finance Commission consists of sixteen (16) members. Four (4) members reside on the Board by virtue of their position in State Government. They are the Chancellor of the University System of Georgia, the Commissioner of Technical and Adult Education, the State School Superintendent and the Director of the Office of Planning and Budget. The remaining twelve (12) members are appointed by the Governor and subject to confirmation by the Senate. The Board's duties include the establishment ofpolicy and direction for the administration of the Guaranteed Educational Loan Program, and the selection and employment of an Executive Director for the Georgia Student Finance Commission.
The Georgia Student Finance Commission does not have authority to determine the amount of funding it will receive from the State of Georgia for any given fiscal year. Such authority is vested in the General Assembly of Georgia. The Commission also does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, the Georgia Student Finance Commission is included within the State of Georgia reporting entity for financial reporting purposes because of the significance of its legal, operational and financial relationships with the State of Georgia. These reporting entity relationships are defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards.
FUND ACCOUNTING The Georgia Student Finance Commission uses funds and account groups to report on its financial position and the results of its operations determined in conformity with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group, on the other hand, is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available financial resources. Funds and account groups presented in the accompanying financial statements are as follows:
GOVERNMENTAL FUND TYPES
BUDGET FUND - The fund used to account for activities and functions as set forth in the Amended Appropriations Act of 1993-1994. The Budget Fund is similar in nature to a General Fund as identified in generally accepted accounting principles in that the Budget Fund is used to account for all activities except those required to be accounted for in some other fund.

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GEORGIA STUDENT FINANCE COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXIIlBIT "G"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
GOVERNMENTAL FUND TYPES
STATE REVENUE COLLECTIONS FUND - The fund used to account for the collection of specific revenues ofthe State ofGeorgia as provided by statute or administrative action and the subsequent transfer of such funds to the Office of Treasury and Fiscal Services. This presentation differs from generally accepted accounting principles in that such activity should be included in the General Fund of the governmental organization.
FIDUCIARY FUND TYPE
AGENCY FUNDS - The funds used to account for assets held for use by other funds, governments, or individuals.
ACCOUNT GROUPS
GENERAL FIXED ASSETS - The account group used to account for fixed assets used in governmental fund type operations. Fixed assets purchased are recorded at historical cost. Donated fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded values. No depreciation has been provided on general fixed assets.
GENERAL LONG-TERM DEBT - The account group used to report the noncurrent portions of certain governmental long-term liabilities, such as claims, judgments and compensated absences, which will be paid from future resources.
BASIS OF ACCOUNTING MEASUREMENT FOCUS
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. Governmental funds should be accounted for using the current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues) and decreases (i.e., expenditures) in net current assets.
GOVERNMENTAL FUND TYPES BUDGET FUND
Except as disclosed in the following paragraphs, units of government of the State of Georgia record their Budget Fund revenues and expenditures in accordance with the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Revenues that are accrued include primarily State appropriations, Federal
- 12 -

GEORGIA STUDENT FINANCE COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXIIlBIT "G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPES BUDGET FUND
grants and entitlements, and certain amounts earned under operating agreements with other parties. Further, the modified accrual basis ofaccounting calls for expenditures, other than accrued interest of general long-term debt, to be recorded when the related fund liability is incurred.

Contractual obligations for services which have not been performed and for goods which have not been delivered at the end of the fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. This accounting practice causes expenditure-driven grant revenues to be accrued based in part on the unexecuted portion of contracts for goods and services. The recognition of encumbrances as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations ofthe State of Georgia, but is not consistent with generally accepted accounting principles, which provide for the recording of encumbrances as a reservation of fund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles.

Prior period adjustments and certain other items are reported as additions to and deductions from fund balances ofthe Budget Fund in the accompanying financial statements. This presentation is in accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, but differs from generally accepted accounting principles in that immaterial adjustments should be reported as current period revenues and expenditures.

STATE REVENUE COLLECTIONS FUND

The State Revenue Collections Fund is maintained on the Cash Receipts and Disbursements basis of

accounting as prescribed or permitted by statutes and regulations of the State of Georgia. This basis of

accounting is defined as that method of accounting in which certain revenue and the related assets are

recognized when received rather than when earned, and certain expenses are recognized when paid rather than

when the obligation is incurred. The State Revenue Collections Fund, which should be included in the General

Fund in accordance with generally accepted accounting principles, should be maintained on the modified

accrual basis of accounting.



FIDUCIARY FUND TYPE AGENCY FUNDS
The Agency Funds are custodial in nature in that assets are equally offset by liabilities to other funds, governmental units, or individuals. The modified accrual basis of accounting is utilized for recognizing assets and liabilities.

BUDGET Appropriation allotments to the Georgia Student Finance Commission are on the basis of budgets submitted by the Commission and approved by the Legislature and the Governor. The budgets are compiled in the same manner as all State departments and expenditures are classified by budget unit object classes as provided in

- 13 -

GEORGIA STUDENT FINANCE COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXIIlBIT "G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUDGET Act No. 608 of Georgia Laws 1993 (as approved April 28, 1993) and amended by Act No. 622 of Georgia Laws 1994 (as approved February 8, 1994), which is an appropriated budget and is referred to in these notes as the Amended Appropriations Act of 1993-1994.
CASH AND CASH EQUIVALENTS Cash and Cash Equivalents include demand deposits with banks and other financial institutions and cash management pools that have the general characteristics of demand deposit accounts in that the Commission may deposit additional cash at any time and also may withdraw cash at any time without prior notice or penalty.
INVENTORIES No inventories of supplies are reported in the current financial statements. Expendable supplies are recorded as expenditures at the time of purchase.
RESERVED FUND BALANCE Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. The following is a brief description of the reserves reflected in the accompanying financial statements:
FEDERAL FINANCIAL ASSISTANCE The residual portion ofFederal financial assistance revenues not yet expended or encumbered. This amount is restricted for expenditure in future years. This accounting treatment differs from generally accepted accounting principles in that the unearned portion of Federal financial assistance should be reflected as deferred revenue.
GEORGIA HIGHER EDUCATION ASSISTANCE CORPORATION The residual portion of Georgia Higher Education Assistance Corporation revenues not yet expended or encumbered. This amount is restricted for expenditure in future years.
GEORGIA STUDENT FINANCE AUTHORITY The residual portion of Georgia Student Finance Authority revenues not yet expended or encumbered. This amount is restricted for expenditure in future years.
LOTTERY FOR EDUCATION The residual portion ofLottery Proceeds revenue not yet expended or encumbered. This amount is retained for financial aid claims to students not submitted to the Department as of June 30, 1994.
STATE REVENUE COLLECTIONS FUND The balance ofrevenues collected but not transmitted to the Office of Treasury and Fiscal Services at fiscal year end. These funds are required by the Official Code of Georgia Annotated to be transferred to the Office of Treasury and Fiscal Services and are not available for use by the Commission.
- 14 -

GEORGIA STUDENT FINANCE COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT"G"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
COMPENSATED ABSENCES Compensated absences represent obligations of the Commission relating to employee's rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulating annual leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount will not be liquidated with expendable available financial resources. Funds are provided in the appropriation of funds each year to the Commission to cover the cost of annual leave paid to terminated employees.
The liability for compensated absences at year end is reported in the General Long-Term Debt Account Group for governmental funds.
MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the Combined Statements (Statutory Basis) are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results ofoperations or changes in financial position in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
COMPARATIVE DATA Comparative total data for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the Commission's financial position and operations. However, comparative data have not been presented in all statements because their inclusion would make certain statements unduly complex and difficult to understand.
NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds of the State of Georgia cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral any one or more ofthe following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59:
(I) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia.
(2) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe State of Georgia.
(3) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose.

- 15 -

GEORGIA STUDENT FINANCE COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT"G"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES (4) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia.

(5) Bonds, bills, certificates of indebtedness, notes, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest, and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Fann Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
(6) Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation.
As authorized in the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has
adopted policies which allow agencies ofthe State of Georgia the option of exempting demand deposits from the collateral requirements.

CATEGORIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, cash deposits consist of all bank balances which include demand deposits and/or interest bearing accounts. These bank balances are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk.

Category 1 - Amounts covered by depository insurance or collateralized with securities (at market value) held by the Commission or by its agent in the Commission's name.
Category 2 - Amounts collateralized with securities (at market value) held by the financial institution's trust department or agent in the Commission's name.

Category 3 - Amounts collateralized with securities (at market value) held by the financial institution or by its trust department or agent, but not in the Commission's name, and amounts uncollateralized.

Carrying
Amount

Bank Balance

Risk Categories

2

3

Cash Deposits

$ 4 878 870.63 $ 6.380.130 31 $ 200 000 00 $===0.00'""" $ 6.180.130 31

CATEGORIZATION OF INVESTMENTS Investments are stated at cost. The carrying amount shown below is maintained in an investment pool by the Office of Treasury and Fiscal Services.

- 16 -

GEORGIA STUDENT FINANCE COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT"G''

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

CATEGORIZATION OF INVESTMENTS

Type of Investment

Carrying Amount

Market Value

State Investment Pool

$ 248,471.21 $ 248,471 21

NOTE 3: CHANGES IN GENERAL FIXED ASSETS

In accordance with the statutory definition of moveable personal property as defined in Official Code of Georgia Annotated Section 50-16-161, only those items with an acquisition cost of $1,000.00 or greater are reflected in the General Fixed Assets Account Group.

The following is a summary of changes of equipment in the General Fixed Assets Account Group during the fiscal year:

Balance July 1, 1993

$ 353,334.69

Additions

10,729.74

Balance June 30, 1994

$ 364,064 43

NOTE 4: GENERAL LONG-TERM DEBT

CHANGES IN GENERAL LONG-TERM DEBT During the year ended June 30, 1994, the following changes occurred in the compensated absences liability reported in the General Long-Term Debt Account Group:

Balance July 1, 1993

$ 312,363.69

Additions Annual Leave Earned and Utilized (Net) Salaries Salary Related Fringe Benefits (*)

30,255.89 26,210.40

Balance June 30, 1994

$ 368,829.98

(*) Includes related fringe benefits applicable to compensated absences at July 1, 1993.

- 17 -

GEORGIA STUDENT FINANCE COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT "G"

NOTE 5: DEFERRED COMPENSATION PLAN
The State ofGeorgia offers its employees a deferred compensation plan in accordance with Internal Revenue Code Section 457. The plan, available to employees ofthe State of Georgia and county health departments, permits such employees to defer a portion of their salary until future years. Participants choose the option or options in which they wish to participate. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the . plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property or rights ofthe State ofGeorgia subject only to the claims of the State's general creditors. Participant's rights under the plan are equal to those of a general creditor ofthe State of Georgia in an amount equal to the fair market value ofthe deferred account of each participant. Financial information relative to the plan is presented in the financial report of the State Personnel Board - Merit System ofPersonnel Administration for the year ended June 30, 1994.
NOTE6: RETIREMENTPLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA The Georgia Student Finance Commission participates in the Employees' Retirement System of Georgia, a single-employer, defined benefit pension plan. The Employees' Retirement System of Georgia was established by the General Assembly of Georgia for the purpose of providing retirement allowances for employees ofthe State of Georgia. The Retirement System is funded through a combination of employee and employer contributions. Employees are required to contribute a graduated percentage of annual compensation. Employer contributions are for a specified percentage of active member payroll determined annually by an actuarial valuation. During the year ended June 30, 1994, the Commission contributed $506,702.29 to the Employees' Retirement System of Georgia. Participation in the Retirement System is not segregated by employee groups of individual governmental units and the Commission has no further liability under the retirement system other than future employer contributions as established for each fiscal year. Information relative to the plan description, funding status and historical trends is presented in the financial report ofthe Employees' Retirement System of Georgia for the year ended June 30, 1994.
GEORGIA DEFINED CONTRIBUTION PLAN The State ofGeorgia also provides retirement coverage for temporary, seasonal, and part-time employees who are not eligible for membership in the Employees' Retirement System of Georgia referred to above through a single-employer defined contribution plan. The Georgia Defined Contribution Plan was established by the General Assembly of Georgia and is administered by the Board of Trustees of the Employees' Retirement System of Georgia. Covered employees are required to contribute 7.5% of their gross salary, with no matching contribution by the employer. A member who terminates employment may apply for a refund of contributions and interest. Benefits are based solely on the amount contributed by the employee plus investment earnings. Upon discretion ofthe Board of Trustees, members who leave employment with less than $3,500.00 credited to their account may be required to make a lump-sum withdrawal. Members are eligible to retire at the age of65 with the option ofreceiving a periodic payment based on mortality tables and interest accumulation as adopted by the Board of Trustees of the Employees' Retirement System of Georgia.
- 18 -

GEORGIA STUDENT FINANCE COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT "G"

NOTE 6: RETIREMENT PLANS
GEORGIA DEFINED CONTRIBUTION PLAN Information relative to the plan description and funding status is presented in the financial report of the Employees' Retirement System of Georgia for the year ended June 30, 1994.
NOTE 7: LEAVE POLICIES
Employees earn ten hours of sick leave each month with a maximum accumulation of ninety days. Unused accumulated sick leave does not vest with the employee and is forfeited upon retirement or termination of employment.
Employees earn annual leave ranging from ten to fourteen hours each month depending upon the employees' length of continuous State service with a maximum accumulation of forty five days. Employees are paid for unused accumulated annual leave upon retirement or termination of employment. See Note 1 - Compensated Absences
Certain employees who retire with one hundred and twenty days or more of forfeited annual and sick leave are entitled to additional service credit in the Employees' Retirement System of Georgia.
NOTE 8: CONTINGENCIES
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. This could result in refunds to the grantor agency for any expenditures which are disallowed under grant terms. The amount of expenditures which may be disallowed by the grantor cannot be determined at this time although the Commission expects such amounts, if any, to be immaterial to its overall financial position.
Litigation, claims and assessments filed against the Georgia Student Finance Commission, if any, are generally considered to be actions against the State of Georgia. Pursuant to the Official Code of Georgia Annotated, the Department of Administrative Services maintains a program of purchased insurance and self- insurance which provides coverage for such litigation, claims and assessments. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1994.
NOTE 9: BONDING INFORMATION
The Executive Director and all employees of the Georgia Student Finance Commission are bonded under a Public Employees Blanket Bond written by Employers Insurance ofWausau, their Bond No. 1450-00-110723, on which the premium was paid to October 1, 1994. Under this agreement the Public Employee Dishonesty Coverage insures the Commission to a maximum of $1,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. The Faithful Performance of Duty Coverage insures the Commission to a maximum of $100,000.00 against loss sustained from failure of its employees to perform faithfully their duties or to account properly for all monies and property received by virtue of their position or employment.
- 19 -

GEORGIA STUDENT FINANCE COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXIUBIT "G"

NOTE 9: BONDING INFORMATION
All employees ofthe Georgia Student Finance Commission are also bonded under a Commercial Crime Policy written by the United States Fire Insurance Company, their Policy No. 626 011675 2, on which the premium was paid to October 1, 1994. Under this additional public employee dishonesty coverage, the policy insures the Commission to a maximum of$4,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees.

-20-

SUPPLEMENTARY INFORMATION - 21 -

GEORGIA STUDENT FINANCE COMMISSION COMBINING BALANCE SHEET (STATUTORY BASIS)
BUDGET FUND JUNE 30 1 1994

EXHIBIT "H"

ASSETS
Cash and Cash Equivalents
Accounts Receivable State Appropriation Federal Financial Assistance Other

"A"

"B"

STUDENT FINANCE LOTTERY FOR

COMMISSION

EDUCATION

TOTAL

$ 4,818,911.57 $ 4,818,911.57

$

0.42

61,048.00

132,573.35

$ 193,621.77

$

0.42

61,048.00

132,573.35

$ 193,621.77

Total Assets

$ 193,621.77 $ 4,818,911.57 $ 5,012,533.34

LIABILITIES AND FUND EQUITY
Liabilities Cash Overdraft Accounts Payable Payroll Withholdings
Fund Equity Fund Balances Reserved Federal Financial Assistance Georgia Higher Education Assistance Corporation Georgia Student Finance Authority Lottery for Education Unreserved Designated Surplus Regular Lottery for Education
Total Fund Equity
Total Liabilities and Fund Equity

$

30,879.67

$ 30,879.67

53,240.64 $

7,055.10

60,295.74

398.00

398.00

--------------- ------------- -------------

$

84,518.31
---------------

$

7,055.10

-------------

$ 91,573.41
-------------

$

932.85

$

932.85

11,922.97

11,922.97

2,141.15

2,141.15

$ 500,000.00 500,000.00

94,106.49

94,106.49

4,311,856.47 4,311,856.47
--------------- ------------- -------------

$ 109,103.46
---------------

$ 4,811,856.47
-------------

$

4,920,959.93
-------------

$ 193,621.77 $ 4,818,911.57 $ 5,012,533.34
=============== ============= =============

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 22 -

GEORGIA STUDENT FINANCE COMMISSION COMBINING STATEMENT OF CHANGES IN FUND BALANCES (STATUTORY BASIS)
BUDGET FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "I"

FUND BALANCES - JULY 1
Unreserved Designated Surplus
ADDITIONS
Adjustments to Prior Year's Accounts Payable Excess of Funds Available over Expenditures
Exhibit "J"
DEDUCTIONS
Unreserved Fund Balance (Surplus) Returned to Office of Treasury and Fiscal Services Year Ended June 30, 1993
FUND BALANCES - JUNE 30
(To Exhibit "H")

"A"
STUDENT FINANCE COMMISSION

"B" LOTTERY FOR
EDUCATION

TOTAL

$

18,175.09 $

0.00 $ 18,175.09

$

38,172.40

$ 38,172.40

70,931.06 $ 4,811,856.47 4,882,787.53

$ 109,103.46$ 4,811,856.47 $ 4,920,959.93

$

18,175.09 $

0.00 $ 18,175.09

$

109,103.46 $ 4,811,856.47 $ 4,920,959.93

=============== ============= =============

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 23 -

GEORGIA STUDENT FINANCE COMMISSION COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "J'' Page 1

FUNDS AVAILABLE
REVENUES
STATE APPROPRIATION General Appropriation Amended Appropriation
Less: Lapsed Funds
Total State Appropriation
FEDERAL REVENUES
OTHER REVENUES RETAINED Georgia Higher Education Assistance Corporation Georgia Student Finance Authority Interest Earned
Total Other Revenues Retained

"A"

"B"

STUDENT FINANCE LOTTERY FOR

COMMISSION

EDUCATION

I.QI&

$ 25,834,367.00 $34,643,410.00 $60,477,777.00 1,092,000.00 10,470,379.00 11,562,379.00

$ 26,926,367.00 $45,113,789.00 $72,040,156.00 0.00 17,368,789.00 17,368,789.00

$ 26,926,367.00 $27,745,000.00 $54,671,367.00

$ 102,777.00

$ 102,777.00

$ 2,635,768.08

$ 2,635,768.08

1,984,226.92

1,984,226.92

6,280.54 $ 146,197.50

152,478.04

$ 4,626,275.54 $ 146,197.50 $ 4,772,473.04

Total Funds Available

$ 31,655,419.54 $27,891.197.50 $59,546,617.04

EXPENDITURES

PERSONAL SERVICES

Salaries and Wages Employer's Contributions for:
F.I.C.A. Retirement
Health Insurance Personal Liability Insurance
Unemployment Compensation Insurance Workers' Compensation Insurance Assessments by Merit System

$ 3,066,899.62
221,503.70 493,249.08 381,173.51
17,880.00 5,013.00
11,681.00 20,468.63

$ 4,217,868.54

REGULAR OPERATING EXPENSES

Motor Vehicle Expenses Supplies and Materials
Repairs and Maintenance Rents (Other than Real Estate)
Insurance and Bonding Other Operating Expenses (See Schedule)
Duplicating and Rapid Copy
Publications and Printing

$

1,827.44

260,710.58

6,853.80

1,200.00

2,544.43

43,522.59

1,078.00

50,657.79

$_ _.o:.3;a,;68..,,...:4.:.04~.,._,6=3

TRAVEL

$_ _ _8: :. .1._.,...1.o:.3,._0.,_,1.,.8

EQUIPMENT

Equipment Purchases Rental of Equipment

$

10,948.03

10,180.32

$_ _....,,_21...,,...1....,28::.:.,3:.~5

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.

- 24 -

$ 3,066,899.62
221,503.70 493,249.08 381,173.51
17,880.00 5,013.00
11,681.00 20,468.63
$ 4,217,868.54

$

1,827.44

260,710.58

6,853.80

1,200.00

2,544.43

43,522.59

1,078.00

50,667.79

$ 368,404.63

$ 81,130.18

$ 10,948.03 10,180.32
$ 21,128.35

GEORGIA STUDENT FINANCE COMMISSION COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "J" Page 2

EXPENDITURES
COMPUTER CHARGES
Other Costs Supplies and Materials Repairs and Maintenance Rents (Other than Real Estate) Other Operating Expenses (See Schedule)
Software Equipment
Equipment Purchases Per Diem, Fees and Contracts
Contracts Computer Billings, DOAS
REAL ESTATE RENTALS
TELECOMMUNICATIONS
PER DIEM. FEES AND CONTRACTS
Per Diem and Fees Contracts
OTHER
GUARANTEED EDUCATIONAL LOANS Other Costs Tuition and Scholarships Georgia Student Finance Authority
TUITION EQUALIZATION GRANTS Other Costs Tuition and Scholarships Georgia Student Finance Authority
STUDENT INCENTIVE GRANTS Other Costs Tuition and Scholarships Georgia Student Finance Authority
LAW ENFORCEMENT PERSONNEL DEPENDENTS' GRANTS Other Costs Tuition and Scholarships Georgi~ Student Finance Authority
NORTH GEORGIA COLLEGE ROTC GRANTS Other Costs Tuition and Scholarships Georgia Student Finance Authority
OSTEOPATHIC MEDICAL LOANS Other Costs Tuition and Scholarships Georgia Student Finance Authority

''A''

''B''

STUDENT FINANCE LOTTERY FOR

COMMISSION

EDUCATION

TOTAL

$

38,031.91

8,865.40

1,844.97

2,819.05

36,510.90

17,202.50

145,741.95 9,106.36

$_ _..2.:.::.;60..,.""'1.._2"'-3:...0::.,;:.4

$_ __;.;32....,..,.3.,._9:.,.3:...9:'-"-6

$,_ _~1.;:.:4.8...._,3~3-=-1:...:s~s

$

31,109.89

8 819.34

$_ __;3,:.,9u,-=.9.,._29:..,..,2_,._3

$ 38,031.91 8,865.40 1,844.97 2,819.05
36,510.90
17,202.50
145,741.95 9,106.36
$ 260,123.04
$ 32,393.96
$ 148,331.55
$ 31,109.89 8,819.34
$ 39,929.23

$ 3,130,819.00 $ 18,561,740.00 $ 3,901,380.00 $, _ _~38::..;,...o."'"o"""o,....,o....o.. $_ _~79...,..,,s-=-o""'o:...:o'""'o $_ _.._1_.60;...1.,.0-=-0.::.0,..O,.a.:.O

$ 3,130,819.00 $18,561,740.00 $ 3,901,380.00 $ 38,000.00 $ 79,500.00 $ 160,000.00

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 25 -

GEORGIA STUDENT FINANCE COMMISSION COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND
YEAR ENDED JUNE 30, 1994

EXHIBIT "J" Page 3

EXPENDITURES
OTHER
GEORGIA MILITARY SCHOLARSHIP GRANTS Other Costs Tuition and Scholarships Georgia Student Finance Authority
HOPE FINANCIAL AID Personal Services Salaries and Wages Employer's Contributions for: F.I.C.A. Retirement Health Insurance Other Costs Supplies and Materials Tuition and Scholarships Other Operating Expenses (See Schedule) Publications and Printing Travel Equipment Equipment Purchases Computer Charges Other Costs Supplies and Materials Other Operating Expenses (See Schedule) Software Equipment Equipment Purchases Lease/Purchase of Equipment Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Contracts
TUITION EQUALIZATION GRANTS Other Costs Tuition and Scholarships Technical Institutes
Total Other
Total Expenditures
Excess of Funds Available over Expenditures

"A"

"B"

STUDENT FINANCE LOTTERY FOR

COMMISSION

EDUCATION

IQlli.

$ 543 .740. 00

$ 543,740.00

$ 85,287.44 $ 85,287.44

6,028.29
13,453.21 10,660.95

6,028.29
13,453.21 10,660.95

29,054.12
16,606,986.36 17,689.55
69,505.13 3,625.79

29,054.12
16,606,986.36 17,689.55
69,505.13 3,625.79

19,218.54

19,218.54

1,862.01 313.99
4,306.75

1,862.01 313.99
4,306.75

31,535.28 4,218.00
26,902.34

31,535.28 4,218.00
26,902.34

23,294.94 616,455.94

23,294.94 616,455.94

$17,570,398.63 $17,570,398.63

$5,508,942.40$ 5,508,942.40 $ 26,415,179.00 $23,079,341.03 $49,494,520.03 $ 31,584,488.48 $23,079,341.03 $54,663,829.51
70,931.06 4,811,856.47 4,882,787.53

$ 31.655.419.54 $27,891,197.50 $59,546,617.04

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 26 -

GEORGIA STUDENT FINANCE COMMISSION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30. 1994

EXHIBIT "K!'

FUND
Georgia Nonpublic Postsecondary Education Commission Surety Bonds Tuition Guaranty Trust Fund

ASSETS/ LIABILITIES
J-U-L-Y---1-' --1-9-9-3

ADDITIONS
---------

DELETIONS
---------

ASSETS/
LIABILITIES JUNE 30, 1994
-------------

$ 16,112.60 $

339.3B $ 2,330.00 $ 14,121.98

171,275.01

167,707.BS

25,057.59

313,925.27

------------- ------------- ------------- -------------

$ 187,387.61 $ 168,047.23 $ 27,387.59 $ 328,047.25

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 27 -

GEORGIA STUDENT FINANCE COMMISSION SCHEDULE OF APPROVED BUDGET
"A" STUDENT FINANCE COMMISSION YEAR ENDED JUNE 30, 1994

SCHEDULE "l"

FUNDS AVAILABLE
---------------
REVENUES
--------
State Appropriation Federal Revenues Other Revenues Retained

ORIGINAL

AMENDED

BUDGET

APPROPRIATION APPROPRIATION ADJUSTMENTS

TOTAL

------------- ------------- -----------

$25,834,367.00 $ 1,092,000.00

$26,926,367.00

1,527,560.00

$ 102,777.00 1,630,337.00

6,124,099.00

111,685.00

969,368.00 7,205,152.00

------------- ------------- ------------- -------------

$33,486,026.00 $ 1,203,685.00 $ 1,072,145.00 $35,761,856.00

EXPENDITURES
------------

Personal Services Regular Operating Expenses Travel Equipment Computer Charges Real Estate Rentals Telecommunications Per Diem, Fees and Contracts Guaranteed Educational Loans Tuition Equalization Grants Student Incentive Grants Law Enforcement Personnel Dependents' Grants North Georgia College ROTC Grants Osteopathic Medical Loans Georgia Military Scholarship Grants Paul Douglas Teacher Scholarship Loans

$ 4,607,435.00 $ 111,685.00 $ 68,215.00 .$ 4,787,335.00

397,851.00

1,456.00

399,307.00

81,800.00

5,333.00

87,133.00

18,500.00

2,444.00

20,944.00

371,000.00

8,500.00

379,500.00

24,763.00

7,631.00

32,394.00

146,000.00

1,198.00

147,198.00

42,757.00

8,000.00

50,757.00

4,076,000.00

4,076,000.00

17,511,740.00 1,050,000.00

969,368.00 19,531,108.00

5,003,940.00

5,003,940.00

38,000.00

38,000.00

79,500.00

79,500.00

160,000.00

160,000.00

501,740.00

42,000.00

543,740.00

425,000.00

425,000.00

------------- ------------- ------------- -------------

$33,486,026.00 $1,203,685.00$ 1,072,145.00 $35,761,856.00

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 28 -

GEORGIA STUDENT FINANCE COMMISSION SCHEDULE OF APPROVED BUDGET "B" LOTTERY FOR EDUCATION YEAR ENDED JUNE 30, 1994

SCHEDULE "21'

FUNDS AVAILABLE REVENUES
State Appropriation
EXPENDITURES Hope Financial Aid Tuition Equalization Grants

ORIGINAL

AMENDED

APPROPRIATION APPROPRIATION

TOTAL

$34,643,410.00 $10,470,379.00 $45,113,789.00
$29,094,918.00 $10,318,879.00 $39,413,797.00 5,548,492.00 151,500.00 5,699,992.00
$34,643,410.00 $10,470,379.00 $45,113,789.00

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 29 -

GEORGIA STUDENT FINANCE COMMISSION CASH AND CASH EQUIVALENTS JUNE 30 1 1994

SCHEDULE "3"

NONINTEREST BEARING ACCOUNTS
Trust Company Bank, Atlanta, Georgia
INTEREST BEARING ACCOUNTS
NationsBank of Georgia, N.A., Atlanta, Georgia Funds on Deposit with Office of Treasury and Fiscal Services
State Investment Pool

$ 4,792,696.58

$ 86,174.05

248,471.21

334,645.26

$5,127,341.84

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 30 -

GEORGIA STUDENT FINANCE COMMISSION SCHEDULE OF FEDERAL REVENUES YEAR ENDED JUNE 30. 1994

PROGRAM
Education, U. S. Department of State Postsecondary Review Direct

CFDA NUMBER
84.267

SCHEDULE "4"
AMOUNT $ 102,777.00

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 31 -

GEORGIA STUDENT FINANCE COMMISSION SCHEDULE OF OTHER OPERATING EXPENSES
YEAR ENDED JUNE 30, 1994

SCHEDULE "5"

REGULAR OPERATING EXPENSES
Freight, Express and Storage Legal Advertising Registration Fees Subscriptions and Dues

nAn
STUDENT FINANCE COMMISSION

"B" LOTTERY FOR
EDUCATION

TOTAL

$

6,677.25

1,048.66

18,514.34

17,282.34

$

6,677.25

1,048.66

18,514.34

17,282.34

$

43,522.59

$ 43,522.59

COMPUTER CHARGES
Legal Advertising Subscriptions and Dues

$

402.00

2,417.05

$

402.00

2,417.05

$

2,819.05

$

2,819.05

OTHER
Hope Financial Aid Other Costs Freight, Express and Storage Legal Advertising Registration Fees Subscriptions and Dues

$

205.80 $

205.80

3,322.70

3,322.70

480.00

480.00

13,681.05

13,681.05

Computer Charges Subscriptions and Dues

$ 17,689.55 $ 17,689.55
-=--========= =============

$

313.99 $

313.99

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 32 -

GEORGIA STUDENT FINANCE COMMISSION RECONCILIATION OF TRAVEL YEAR ENDED JUNE 30 1 1994

Total per Annual Supplement

Accruals June 30, 1993 June 30, 1994

Adjustments Ennis, Lackey, Mccants, Nelson,

Diane N. Deborah C. Robert G. Patricia

Total per Report

SCHEDULE "6"
$ 85,998.16
-2,115.98 694.72
130.07 183.00 -194.50 60.50
-------------
$ 84,755.97
=============

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 33 -

GEORGIA STUDENT FINANCE COMMISSION SUMMARY OF SALARIES, TRAVEL, AND PER DIEM AND FEES
YEAR ENDED JUNE 30, 1994

SCHEDULE "7"

BUDGET FUND
-----------
"A" STUDENT FINANCE COMMISSION Regular
"B" LOTTERY FOR EDUCATION Hope Financial Aid

SALARIES
--------

TRAVEL

PER DIEM AND FEES
--------

$ 3,066,899.62 $ 81,130.18 $ 31,109.89

85,287.44

3,625.79

23,294.94

------------- ------------- -------------

$ 3,152,187.06 $ 84,755.97 $ 54,404.83
============= ============= =============

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 34 -

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

GEORGIA STUDENT FINANCE COMMISSION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994

STATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR QUESTIONED COSTS

The status offindings disclosed in the review report for the year ended June 30, 1993, is summarized below:

Audit Control Number

Status OfFindings

476-93-01 476-93-02 476-93-03

Corrective Action Implemented Corrective Action Implemented Corrective Action Implemented