Gfl. A"600 .RI 
sis 
i"l94--9S 
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, 1995 
 
 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 
 
5 
 
C STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES 
 
BUDGET FUND 
 
6 
 
STATEMENTS OF FUNDS AVAILABLE AND EXPENDITURES 
 
COMPARED TO BUDGET 
 
BUDGET FUND 
 
D 
 
"A" STUDENT FINANCE COMMISSION 
 
10 
 
E 
 
"B" LOTTERY FOR EDUCATION 
 
11 
 
F STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS 
 
STATE REVENUE COLLECTIONS FUND 
 
12 
 
G NOTES TO THE FINANCIAL STATEMENTS 
 
13 
 
SUPPLEMENTARY INFORMATION 
 
H COMBINING BALANCE SHEET (STATUTORY BASIS) 
 
BUDGET FUND 
 
28 
 
COMBINING STATEMENT OF CHANGES IN FUND BALANCES 
 
(STATUTORY BASIS) 
 
BUDGET FUND 
 
29 
 
J COMBININGSTATEMENTOFFUNDSAVAILABLEANDEXPENDITURES 
 
BUDGET FUND 
 
30 
 
K COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES 
 
FIDUCIARY FUND TYPE -AGENCY FUNDS 
 
34 
 
SCHEDULES 
 
SCHEDULES OF APPROVED BUDGET 
 
1 
 
"A" STUDENT FINANCE COMMISSION 
 
35 
 
2 
 
"B" LOTTERY FOR EDUCATION 
 
36 
 
3 CASH AND CASH EQUIVALENTS 
 
37 
 
 GEORGIA STUDENT FINANCE COMMISSION - TABLE OF CONTENTS - 
 
SECTION I 
 
FINANCIAL 
 
SUPPLEMENTARY INFORMATION 
 
SCHEDULES 
 
4 SCHEDULE OF FEDERAL REVENUES 
 
38 
 
5 SCHEDULE OF OTHER OPERATING EXPENSES 
 
39 
 
6 RECONCILIATION OF TRAVEL 
 
40 
 
7 SUMMARY OF SALARIES, TRAVEL, AND PER DIEM AND FEES 
 
41 
 
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 
 
DEPARTMENT OF AUDITS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
November 3, 1995 
 
Honorable Zell Miller, Governor Members ofthe General Assembly ofGeorgia Members ofthe Board of Commissioners 
and Honorable Stephen Dougherty, Executive Director Georgia Student Finance Commission 
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, 1995, 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 ofthe 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 ofan 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 of any 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 I through 7) is presented only for supplementary analysis purposes. Such information has been 
 
95ARL-4 
 
 subjected to the inquiries and analytical procedures applied in the review of the financial statements and we are not aware ofany material modifications that should be made thereto. 
Respectfully submitted, 
~ 
Claude L. Vickers State Auditor 
CLV:gp 95ARL-4 
 
 FINANCIAL STATEMENTS - I- 
 
 GEORGIA STUDENT FINANCE COMMISSION COMBINED BALANCE SHEET (STATUTORY BASIS\ 
ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30 1995 
 
ASSETS 
Cash and Cash Equivalents (See Schedule) 
Accounts Receivable SWm Appropriation Federal Financial Assistance Other 
Fixed Assets 
Equipment 
Amount 1D be Provided for Payment of Accrued Compensated Absences 
 
GOVERNMENTAL FUND TYPES 
 
STATE 
 
REVENUE 
 
BUDGET 
 
COLLECTIONS 
 
FIDUCIARY FUND TYPE 
AGENCY 
 
$ 4 237 053.85 $ 
 
$ 
 
0.42 
 
12,780.96 
 
0.00 
 
12781.38 
 
8728.53 $ 
 
482141.78 
 
Total Assets 
 
$ 4 249 835.23 $ 
 
8 728.53 $ 
 
482141.78 
 
LIABILITIES AND FUND EQUITY 
Liabilities Accounts Payable Payroll Wrthholdings 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 l.otlery for Education S-RevenueC~lectionsFund Unreserved Designated Surplus Regular Lottery for Education 
Total Fund Equity 
 
194,363.27 516.00 
$ 194879.27 
 
482,141.78 482141.78 
 
0.00 
0.00 0.00 0.00 
$ 
 
8,728.53 
 
30,989.38 4023966.58 
$ 4 054 955.96 $ 
 
8728.53 
 
Total Liabilities and Fund Equity 
 
$ 4 249,835.23 $ 
 
See Independent Accountant's Combined Report on Review of Financial S-.nents and Supplementary Information. 
The notas 1D the financial s-.nents are an integral part of this -ment. -2- 
 
8 728.53 $ 1 
 
482141.78 
 
 EXHIBIT"A" 
 
ACCOUNT GROUPS 
 
GENERAL 
 
GENERAL 
 
FIXED 
 
LONG-TERM 
 
ASSETS 
 
DEBT 
 
TOTALS 
(Memorandum Onlll JUNE 30 1995 JUNE 301994 
 
$ 4 727924.16 $ 5127 341.84 
 
$ 
 
0.42 $ 
 
0.42 
 
12,780.96 
 
61,048.00 
 
0.00 
 
132573.35 
 
$ 
 
12 781.38 $ 193 621.77 
 
$ 675048.01 
 
$ 675048.01 $ 364064.43 
 
$ 357942.28 $ 357942.28 $ 368829.98 
 
$ 675048.01 $ 357942.28 $ 5 773 695.83 $ 6053858.02 
 
$ 
$ 357942.28 
 
194,363.27 $ 516.00 
482,141.78 357942.28 
 
$ 357942.28 $ 1 034 963.33 $ 
 
60,295.74 398.00 
328,047.25 368829.98 
757570.97 
 
$ 675,048.01 
 
$ 675,048.01 $ 364,064.43 
 
0.00 
0.00 0.00 0.00 8,728.53 
 
932.85 
11,922.97 2,141.15 500,000.00 11,262.69 
 
$ 675048.01 
 
30,989.38 4023966.58 
 
94,106.49 4311856.47 
 
$ 4 738 732.50 $ 5296287.05 
 
$ 675048.01 $ 357942.28 $ 5 773 695.83 $ 6053858.02 
 
- 3- 
 
  GEORGIA STUDENT FINANCE COMMISSION COMBINED STATEMENT OF CHANGES IN FUND BALANCES /STATUTORY BASIS) 
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1995 
 
EXHIBIT"B" 
 
F!,!NQ BALANCES - JULY 1 
R--i u-ved 
Designated Surplus 
ADDITIONS 
A d ~ 1D Prior Yeafs Accounts Payable Cash Receipl& far the Year 
Exhibit"P Excess of Funds Available 01181' Expenditures 
Exhibit c 
QEDUCTIONS 
Urnsarved Fund Ba1anca (Surplus) Returned 1D Office of Treasury and Fiocal Services Y-EndedJune30, 1993 Y- Ended June 30, 1994 
Cash Oi&bursements far the Year Exhibit p 
R - - i Fund Ba1anca Carried Over from Priory_, as Funds Available 
FUND BALANCES - JUNE 30 
(ToElchibit"A") 
 
GOVERNMENTAL FUND TYPES 
 
STATE 
 
REVENUE 
 
BUDGET 
 
COLLECTIONS 
 
TOTALS (Memorandum Onl~l 
YEAR ENDED JUNE30 1995 JUNE30 1994 
 
$ 514,996.97 $ 
 
11,262.69 $ 
 
526,259.66 $ 
 
146,529.13 
 
4 405,962.96 $ 4 920,959.93 $ 
 
4,405 962.96 11,262.69 $ 4,932,222.62 $ 
 
18,175.09 164,704.22 
 
$ 
 
3,127.32 
 
$ 
 
4,051,828.64 
 
$ 4,054,955.96 $ 
 
$ 
 
3,127.32 $ 
 
38,172.40 
 
289,938.25 
 
289,938.25 
 
224,914.33 
 
4,051,828.64 
 
4,882,787.53 
 
289,938.25 $ 4 344,892.21 $ 5145874.26 
 
$ 
 
0.00 
 
4,405,962.96 
 
$ 514996.97 
 
$ 4,920,959.93 $ 
 
$ 
 
0.00 $ 
 
4,405,962.96 
 
292,470.41 
 
292,470.41 
 
514,996.97 
 
292,470.41 $ 5,213,430.34 $ 
 
18,175.09 0.00 
360,180.77 0.00 
378,355.86 
 
$ 4 054 955.96 $ 
 
8728.53 $ 4063684.49 $ 4932222.62 
 
See Independent Accountant's Combined Report on Review of Financial S-.nents and Supplementary Information. 
 
The nol8s 1D the financial - 
 
are an integral part of this sla18ment. 
 
-5- 
 
 GEORGIA STUDENT FINANCE COMMISSION STAIEMENI OE FUNDS AVAILABLE AND EXPENDITURES 
BUDGET FUND VEAR ENDED JUNE 3Q 1995 
 
EXHIBIT"C" 
 
FUNDS AVAILABLE 
_REYENUEi 
STATE APPROPRIATION -Appraprialian Anwlded Appraprialian 
l.Ns: Lapsed Funds 
Talal state Approprlalicn 
FEDERAL REVENUES (See SChedule) 
OTHER REVENUES RETAINED Georgia Higher Education As8ialance Corporation 
Georgia student F - Aulharily ,_Earned 
Talal other Revenues Retained 
Talal Revenues 
CARBY-0\/EB FROM PRIOR YEAR 
T-er from ROMMld Fund Balance F - Flnanclal As8ialance Georgia Higher Education As8ialance Corporation Georgia student F - Authority ~ for Education 
 
TOTALS YEAR ENDED JUNE 30 1995 JUNE 30 1994 
 
$ 112,970,008.00 $ fi/J,4n,m.oo -4 707 003.00 11562379.00 
 
$ 108,263,005.00 $ 72,040,156.00 0.00 17 368 789.00 
 
$ 108~ 005.00 $ 54 671 367.00 
 
$ 
 
168898.38 $ 
 
102m.oo 
 
$ 
 
2,700,4TT.OO $ 2,635,768.08 
 
1,938,3-16.00 
 
1,984,226.92 
 
737130.96 
 
152478.04 
 
$ 
 
5 455 953.96 $ 4m473.04 
 
$ 113887857.34 $ 59 546 617.04 
 
$ 
 
932.85 $ 
 
0.00 
 
11,922.97 
 
0.00 
 
2,141.15 
 
0.00 
 
500000.00 
 
0.00 
 
$ 
 
514996.97 $ 
 
0.00 
 
Tolal Funds Available 
 
$ 114 402 854.31 $ 59 546 617.04 
 
EXPENDIJURES 
PERSONAL SERY)CES 
-andWages Emploi,,(s Contributions for: 
F.I.C.A. 
R- 
P- eraonalnl aLullrbslnliclye lnaursnce Unemployment Compermatic)n Insurance W011<ers' Compensation Insurance -byMerltS~ 
 
2,848,669.55 $ 
203,045.66 425,026.73 347,245.32 
22,922.00 3,095.00 15,896.00 12152.82 
3 878 053.08 $ 
 
3,066,899.62 
221,503.70 493,249.08 381,173.51 
17,88().00 5,013.00 11,681.00 20468.63 
4 217 868.54 
 
See Independent Accounlanl's Combined Report on RevieW of Financial Statements and s, fl I ne11ta11 Information. The - to the financial ataternents are an Integral part of this statement. 
-6- 
 
 GEORGIA STUDENT FINANCE COMMISSION 
STATEMENT OE FUNDS AVAILABLE ANP EXPENDITURES 
BUDGET FUND YEAR ENDED JUNE 30 1995 
 
EXHIBIT"C" 
 
EXPENDITURES 
REGULAR OPERATING EXPENSES 
Motor Vehicle Elcpenaes Supplies and Materials Repairs and Maintenance Renls (Other than Real Estate) lnaurance and Banding Other Operating Elcpenaes (See Schedule) Duplicating and Rapid ~ Publicaticns and Printing 
EOVIPMENJ 
Equipment Purchases Rental of Equipment 
COMPUTER CHARGES 
other Costs Supplies and Materials Repairs and Maintenance Rents (other than Real Estate) Other Operating Elcpenaes 
Software Equipment 
Equipment Purchases Per Diem, Fees and Contracts 
Per Diem and Fees Contrac:ls Computer Billings, OOAS 
REAL ESTATE RENTALS 
TELECOMMUNICATIONS 
PER DIEM FEES AND CONTRACTS 
Per Diem and Fees Contrac:ls 
OTHER 
GUARANTEED EDUCATIONAL LOANS OlherCosls 
Tuition and Scholarships Georgia Student Finance Authooily 
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. 
 
TOTALS YEAR ENDED JUNE 30 1995 JUNE 30 1994 
 
5,360.43$ 283,620.23 
11,219.16 1,569.61 8,673.13 
111,302.91 7,329.07 
106896.12 
$---=== 535970.66 $ 
$ __...7..3,3_6=5=.4=8 $ 
 
1,827.44 260,710.58 
6,853.80 1,200.00 2,544.43 43,522.59 1,078.00 50667.79 
368404.63 
81130.18 
 
24,494.96$ 0.00 
$---=2=44"94".96 $ 
 
10,948.03 10180.32 
21128.35 
 
7,542.28$ 22,761.86 
0.00 0.00 128,049.16 
158,390.53 
80,391.68 96,850.68 
8 524.99 
502511.18 $ 
$-----4"40=99=.96 $ $--=3=54'1-53'.-76 $ 
 
38,031.91 8,865.40 1,844.97 2,819.05 
36,510.90 
17,202.50 
0.00 145,741.95 
9106.36 
260123.04 
32393.96 
148331.55 
 
48,931.73$ 16720.45 
63652.18 $ 
 
31,109.89 8819.34 
39929.23 
 
3292641.00 $ 3130819.00 
 
 GEORGIA STUDENT FINANCE COMMISSION STATEMENT OF FUNDS AVAll ABLE ANp EXPENQITURES 
BUDGET FUND YEAR ENDED JUNE 3Q 1!)95 
 
EXHIBIT"C" 
 
EXPENDITURES 
OTJ:IEB. 
TUITION EQUALIZATION GRANTS Other Costs Tuition and Scholarships Georgia Student Finance Authority 
STUDENT INCENTIVE GRANTS Othereosts Tuition and Scholarships Georgia Student Finance Authority 
LAW ENFORCEMENT PERSONNEL DEPENDENTS' GRANTS Othereosts Tuition and Scholarships Georgia Student Finance Authority 
NORTH GEORGIA COLLEGE ROTC GRANTS Othereosts Tuition and Scholarships Georgia Student Finance Authority 
OSTEOPATHIC MEDICAL LOANS Othereosts Tuition and Scholarships Georgia Student Finance Authority 
GEORGIA MILITARY SCHOLARSHIP GRANTS OtherCosls Tuition and Scholarships Georgia Student Finance Authority 
HOPE FINANCIAL AID - TUITION POlllOnal Ser1lices Salaries and Wages Employer's Contributions for: F.1.C.A. Retirement Health Insurance Other Costs Supplies and Materials Tuition and Scholarships Georgia Student Financing Authority Other Operating Expenses (See Schedule) Repairs and Maintenance Publications and Printing Travel Equipment Equipment Purchases Rental of Equipment Real Estate Rentals Computer Charges OtherCosls supplies and Materials Other Operating Expenses 
See Independent Accountanfs Combined Report on RevieW of Financial Statements and Supplementary lnfonnation. 
The notes to the financial statements are an integral part of this statement. 
-8- 
 
TOTALS YEAR ENDED JUNE 30 1995 JUNE 30 1994 
 
$ 22 360 260.00 $ 18 561 740.00 
 
$ 
 
3739557.00 $ 3901360.00 
 
$ 
 
38000.00 $ 
 
38000.00 
 
$ 
 
75000.00 $ 
 
79 500.00 
 
$ 
 
160000.00 $ 160000.00 
 
$ 
 
593600.00 $ 543740.00 
 
$ 
 
0.00 $ 
 
85,287.44 
 
0.00 
 
6,028.29 
 
0.00 
 
13,453.21 
 
0.00 
 
10,660.95 
 
28,746.94 
 
29,054.12 
 
32,TT3,197.41 399,316.41 190.00 20,553.55 6,460.18 
 
16,606,986.36 17,689.55 0.00 69,505.13 3,625.79 
 
1,010.68 3,765.32 24,762.96 
 
19,218.54 0.00 0.00 
 
176.00 0.00 
 
1,862.01 313.99 
 
 GEORGIA STUDENT FINANCE COMMISSION STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES 
BUDGET FUND VEAR ENDED JUNE 30 1995 
 
EXHIBIT"C" 
 
EXPENDITURES 
OTl::IER 
HOP.E FINANCIAL AID - TUITION Computer Charges Software Equipment Equipment Purchases Lease/Purchase of Equipment Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Contracts Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Contracts 
HOPE FINANCIAL AID - BOOKS other Costs Supplies and Materials 
HOPE FINANCIAL AID - FEES other Costs other Operating Expenses (See Schedule) 
TUITION EQUALIZATION GRANTS other Costs TUition and Scholarships Technical Institutes 
GEORGIA MILITARY COLLEGE SCHOLARSHIP other Costs Tuition and Scholarships Georgia Student Finance Authority 
LEPO SCHOLARSHIP other Costs Tuition and Scholarships Georgia Student Finance Authority 
Total other 
Total Expenditures 
Excess of Funds Available over Expenditures 
 
TOTALS YEAR ENDED JUNE 30 1995 JUNE 30 1994 
 
$ 
 
23,781.70$ 
 
4,306.75 
 
53,987.81 0.00 0.00 
 
31,535.28 4,218.00 
26,902.34 
 
42,319.47 36,700.00 33,137.98 
 
23,294.94 616,455.94 
0.00 
 
354,678.68 
 
0.00 
 
281527.00 
 
0.00 
 
34084332.09 $ 17 570 398,63 
 
$ 13 365173.53 $ 
 
0.00 
 
$ 
 
6 757 416.28 $ 
 
0.00 
 
$ 20302594.27 $ 5508942.40 
 
$ 
 
36895.26 $ 
 
0.00 
 
69255.00 $ 
 
0.00 
 
s $ 104574 n4.43 49 494 520.03 
 
$ 110,351,025.67$ 54,663,829.51 
 
4051 828.64 
 
4882787.53 
 
$ 114 402 854.31 $ 59 546 617.04 
 
See Independent Accountant's Combined Report on RevieW of Financial Statements and Supplementary lnfoonation. The notes to the financial statements are an integral part of this statement. 
-9- 
 
 GEORGIA STUDENT FINANCE COMMISSION STATEMENT OF FUNDS A\/AILABL E AND EXPENDITURES 
COMPARED TO BUDGET BUDGET FUND 
"A" STUDENT FINANCE COMMISSION YEAR ENDEP JUNE 3Q 1995 
 
EXHIBIT"D" 
 
FUNDS A\/AILABLE 
~ Slate Appropriation Federal Revenues Other Revenues Retained 
CABBY:PYEB FROM PRIOR YEAR Transfer from Reserved Fund Balance 
 
BUDGET 
 
ACTUAL 
 
VARIANCEFAVORABLE (UNFAVORABLE) 
 
$ 30,861,064.00 $ 30,861,064.00 $ 
 
2, 1-49,073.00 
 
168,898.38 
 
6488719.00 
 
4721389.27 
 
0.00 -1,980, 174.62 -1767329.73 
 
$ 39,498,856.00 $ 35,751,351.65 $ -3,747,504.35 
 
0.00 
 
14996.97 
 
14996.97 
 
$ 39 498 856.00 $ 35,766,348.62 $ -3,732,507.38 
 
EXPENDITURES 
Personal Services Regular Operating Expenses Tmel Equipment Computer Charges Real E - Rentals Telecommunic:aticns 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 
 
$ 4,999,073.00 $ 3,878,053.08 $ 
 
531,483.00 
 
535,970.66 
 
101,800.00 
 
73,365.46 
 
24,495.00 
 
24,494.96 
 
502,512.00 
 
502,511.18 
 
44,800.00 
 
44,099.96 
 
354,154.00 
 
354,153.76 
 
208,739.00 
 
63,652.18 
 
4,076,000.00 
 
3,292,841.00 
 
22,360,260.00 22,360,260.00 
 
5,003,940.00 
 
3,739,557.00 
 
38,000.00 
 
38,000.00 
 
75,000.00 
 
75,000.00 
 
160,000.00 
 
160,000.00 
 
593,600.00 
 
593,600.00 
 
425000.00 
 
0.00 
 
1,121,019.92 -4,487.66 28,434.54 0.04 0.82 700.04 0.24 
145,086.82 783,359.00 
0.00 1,284,383.00 
0.00 0.00 0.00 0.00 425000.00 
 
$ 39 498 856.00 $ 35,735,359.24 $ 3,763,496.76 
 
Excess of Funds Available over Expenditures 
See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary lnfonnation. 
The notes to the financial statements are an integral part of this statement. -10- 
 
s___ 30 989.38 
 
30.._989_.,._38_ 
 
 GEORGIA STUQENT FINANCE coMM1ss10N STATEMENT OF FUNDS A\/AILABLE AND EXPENDITURES 
COMPARED TO BUDGET 
BUDGETFUNp 
e LOTTERY FOR EDUCATION 
YEAR ENDED JUNE 30 1995 
 
EXHIBIT"E" 
 
FUNDS A)/AILABLE 
~ 
state Appropriation other Revenues Retained 
CARRV-0\/ER FROM PRIOR VEAR 
Transfer from Reserved Fund Balance 
 
BUDGET 
 
ACTUAL 
 
VARIANCEFAVORABLE (UNFAVORABLE) 
 
$ TT,ll,941.00 $ TT,401,941.00 $ 
 
0.00 
 
734564.69 
 
$ TT,401,941.00 $ 78,136,505.69 $ 
 
0.00 734564.69 
734,564.69 
 
0.00 
 
500000.00 
 
500000.00 
 
$ TT401941.00 $ 78,636,505.69 $ 1,234,564.69 
 
EXPENDITURES 
Hape Financial Aid - Tultion Hape Financial Aid - Books Hape Financial Aid - Fees Tuition Equalization Grants Georgia Military College Scholarship 
LEPO Scholarship 
 
$ 39,061,941.00 $ 34,084,332.09 $ 
 
12,000,000.00 13,365,173.53 
 
6,000,000.00 
 
6,757,416.28 
 
20,000,000.00 20,302,594.27 
 
240,000.00 
 
36,895.26 
 
100000.00 
 
69255.00 
 
4,9TT,608.91 -1,365,173.53 
-757,416.28 -302,594.27 203,104.74 
30745.00 
 
s n 401 941.00 s s 74,615.666.43 2,786,274.57 
 
Excess of Funds Available over Expend~ures 
 
$ 4 020 839.26 $ 4020839.26 
 
See Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement. 
-11- 
 
 GEORGIA STUDENT FINANCE COMMISSION STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS 
STATE REVENUE COLLECTIONS FUND YEAR ENDED JUNE 30 1995 
 
EXHIBIT"F" 
 
CASH RECEIPTS 
STATE REVENUE COLLECTIONS 
Nonpublic Postsecondary Educational Institution Agent's Fees Application and Renewal Fees Interest Earned Sale of Publications 
Total Cash Receipts 
CASH AND CASH EQUIVALENTS - JULY 1 1994 
 
$ 129,146.81 97,843.61 1,393.62 61,552.21 
$ 289,936.25 11,262.69 
$ 301,198.94 
 
DISBURSEMENTS TRANSFERS 
To Office of Treasury and Fiscal Services CASH AND CASH EQUIVALENTS -JUNE 30 1995 
 
$ 292,470.41 8,728.53 
$ 301,198.94 
 
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. -12 - 
 
 GEORGIA STUDENT FINANCE COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995 
 
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 ofthe government ofthe State of Georgia. The Commission was created for the purpose of improving the higher educational opportunities of citizens and persons of the State of Georgia through coordination of State student aid programs in the State of Georgia. The Board of Commissioners of the Georgia Student Finance Commission consists of seventeen (17) members. Four (4) members reside on the Board by virtue oftheir 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 thirteen (13) members are appointed by the Governor and subject to confirmation by the Senate. The Board's duties include the establishment of policy 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 ofGeorgia. 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 ofGeorgia reporting entity for financial reporting purposes because ofthe significance of its legal, operational and financial relationships with the State ofGeorgia. 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 ofthe State ofGeorgia. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds are maintained consistent with legal and managerial requirements. Account groups are a reporting device used to account for certain assets and liabilities of the governmental funds not recorded directly in those funds. 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 1994-1995. 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 STIIDENT FINANCE COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995 
 
EXHIBIT"G" 
 
NOTE 1: 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 cost or at estimated historical cost if historical cost is not practically determinable. 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. 
The cost ofnormal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not included in the General Fixed Assets Account Group. Material improvements adding to the value or useful life of the assets are included in the General Fixed Assets Account Group. 
GENERAL LONG-TERM DEBT - The account group used to report the noncurrent portions ofcertain 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 flow of current financial resources measurement focus. Wrth this measurement focus, operating statements present increases and decreases in net current assets and unreserved fund balance is a measure ofavailable spendable resources. In accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, the Budget Fund remits its unreserved fund balance (surplus) to the Office of Treasury and Fiscal Services in the subsequent fiscal year. 
 
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 GEORGIA STUDENT FINANCE COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995 
 
EXHIBIT"G" 
 
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
BASIS OF ACCOUNTING 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 are "measurable and available"). "Measurable" means the amount of the transaction can be determined and "available" means collecttble within the current period or soon enough thereafter to pay liabilities ofthe current period. Revenues that are accrued include primarily State appropriations, Federal grants and entitlements, and certain amounts earned under operating agreements with other parties. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized when due, and certain compensated absences, claims and judgements which are recognized when the obligations are expected to be liquidated with expendable available financial resources. 
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 ofthe 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 ofaccounting. 
 
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 GEORGIA STUDENT FINANCE COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995 
 
EXHIBIT "G" 
 
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
BASIS OF ACCOUNTING FIDUCIARY FUND TYPE AGENCY FUNDS 
Agency Funds are custodial in nature and do not measure results of operations or have a measurement focus. 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 ofbudgets submitted by the Commission and approved by the Legislature and the Governor. The budgets are adopted on a basis consistent with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia and are compiled in the same manner as all State departments. Expenditures are classified by budget unit object classes as provided in Act No. 1208 ofGeorgia Laws 1994 (as approved April 18, 1994) and amended by Act No. 6 of Georgia Laws 1995 (as approved February 22, 1995), which is an appropriated budget and is referred to in these notes as the Amended Appropriations Act of 1994-1995. 
 
Overexpenditure of a budget unit object class, except for the "common object classes", included in the Commission's final amended budget is in violation of Section 80 ofthe 1994-1995 Amended Appropriations Act. Expenditures ofno more than 102% of the stated amount for each common object class are authorized by Section 80. However, the total expenditure for the group of common object classes may not exceed the sum of the stated amounts for the separate object classes ofthe group. The common object classes include Personal Services, Regular Operating Expenses, Travel, Motor Vehicle Purchases, Equipment, Computer Charges, Real Estate Rentals, Telecommunications and Postage. 
 
A comparison of anticipated funds available and budgeted expenditures by budget unit object class indicates that the following object classes were overspent by the amounts identified below: 
 
Hope Financial Aid - Books Hope Financial Aid - Fees Tuition Equalization Grants 
 
$1,365,173.53 $ 757,416.28 $ 302,594.27 
 
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. 
 
INVESTMENTS The Georgia Student Finance Commission participates in an investment pool managed by the State of Georgia's Office of Treasury and Fiscal Services (OTFS) referred to as the "Georgia Fund I". The Commission does not have any risk exposure from investments in the Georgia Fund 1 as the investment policy ofOTFS does not provide for investments in derivatives or similar investments through the Georgia Fund I. 
 
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 GEORGIA STUDENT FINANCE COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE30 1995 
 
EXHIBIT"G" 
 
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
INVENTORIES No inventories ofsupplies 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 offund equity not appropriable for expenditure or legally segregated for a specific future use. The following is a briefdescription ofthe reserve reflected in the accompanying financial statements: 
STATE REVENUE COLLECTIONS FUND The balance ofrevenues collected but not transmitted to the Office ofTreasury and.Fiscal Services at fiscal year end. These funds are required by the Official Code of Georgia to be transferred to the Office of Treasury and Fiscal Services and are not available for use by the Commission. 
UNRESERVED FUND BALANCE In accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, the Budget Fund's unreserved fund balance is remitted to the Office of Treasury and Fiscal Services in the subsequent fiscal year as surplus as follows. 
REGULAR- An amount of unexpended general appropriations available to the State for reappropriation in subsequent years. 
LOTTERY FOR EDUCATION - An amount of unexpended lottery appropriations available for future reappropriation for Lottery for Education. 
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 offunds 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" because they do not represent consolidated financial information and are presented only to facilitate financial analysis. The columns do not present information that reflects financial position, results of operations 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 ofthis data. 
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 GEORGIA STUDENT FINANCE COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995 
 
EXHIBIT "G" 
 
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
COMPARATIVE DATA Comparative total data for the prior year have been presented in selected sections of the accompanying financial statements in order to provide an understanding of the changes in the Commission's 's financial position and operations. Comparative totals have not been included on statements where their inclusion would not provide enhanced understanding ofthe Commission's financial position and operations or would cause the statements to be unduly complex and difficult to understand. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation. 
NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS 
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds ofthe State ofGeorgia 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: 
(1) Bonds, bills, certificates of indebtedness, notes, or other direct obligations of the United States or ofthe State ofGeorgia. 
(2) Bonds, bills, certificates ofindebtedness, notes, or other obligations of the counties or municipalities ofthe State ofGeorgia. 
(3) Bonds ofany public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose. 
(4) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia. 
(5) Bonds, bills, certificates ofindebtedness, notes, or other obligations ofa 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 Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. 
(6) Guarantee or insurance ofaccounts 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. 
 
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 GEORGIA STUDENT FINANCE COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995 
 
EXIIlBIT "G" 
 
NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS 
 
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. The bank balances as of June 30, 1995, 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 pledging financial institution's trust department or agent in the Commission's name. 
 
Category 3 - Amounts collateralized with securities (at market value) held by the pledging financial institution or by its trust department or agent, but not in the Commission's name, and amounts uncollateralized. 
 
Cash Deposits 
 
Carrying Amount 
U 33] ]28 Q6 
 
Bank Balances 
s s323 7]2 54 
 
Risk Categories 
2QQQQQQQ _ _..,o""oo"' ss 123712 54 
 
CATEGORIZATION OF INVESTMENTS Investments are stated at cost. The carrying amount of the investment balance as ofJune 30, 1995, shown below is maintained in an investment pool by the Office of Treasury and Fiscal Services and is not subject to risk categorization. 
 
Type oflnvestment 
 
Carrying Amount 
 
Market Value 
 
State Investment Pool 
 
$ 396 796 JO $ 396 796 10 
 
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 ofequipment in the General Fixed Assets Account Group during the fiscal year: 
 
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 GEORGIA STUDENT FINANCE COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE30 1995 
 
EXHIBIT "G" 
 
NOTE 3: CHANGES IN GENERAL FIXED ASSETS 
 
Balance July 1, 1994 
 
$ 364,064.43 
 
Additions Deductions 
 
336,744.12 25 760.54 
 
Balance June 30, 1995 NOTE 4: GENERAL LONG-TERM DEBT 
 
$ 675 048 OJ 
 
CHANGES IN GENERAL LONG-TERM DEBT During the year ended June 30, 1995, the following changes occurred in the compensated absences liability reported in the General Long-Term Debt Account Group: 
 
Balance July 1, 1994 
 
. $ 368,829.98 
 
Additions (Deductions) Annual Leave Earned and Utilized (Net) Salaries Salary Related Fringe Benefits 
Balance June 30, 1995 
NOTE 5: RISK MANAGEMENT 
 
-10,113.97 -773.73 
$ 357 942 28 
 
Public Entity Risk Pool 
 
The State Personnel Board, Merit System ofPersonnel Administration internally administers for the State of Georgia a program of health benefits for the employees of units ofgovernment ofthe State of Georgia and units of county government and local education agencies located within the State of Georgia. This plan is funded by participants covered in the plan, by employers' contributions paid by the various units ofgovernment participating in the plan, and appropriations made by the General Assembly of Georgia. The State Personnel Board, Merit System ofPersonnel Administration has contracted with Blue Cross Blue Shield of Georgia to process claims in accordance with the State Employees' Health Benefit Plan as established by the State Personnel Board. 
 
Other Risk Management 
 
The Department ofAdministrative Services (DOAS) has the responsibility for the State of Georgia of making and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS services claims for risk of loss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and 
 
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 GEORGIA STUDENT FINANCE COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995 
 
EXHIBIT"G" 
 
NOTE 5: RISK MANAGEMENT 
Other Risk Management 
law enforcement officers' indemnification. Limited amounts of commercial insurance is purchased applicable to property, employee and automobile liability, fidelity and certain other risks. The Commission is part of the State ofGeorgia reporting entity, and as such, is covered by the State of Georgia risk management program administered by DOAS. Premiums for the risk management program are charged to the state agencies by DOAS to provide claims servicing and claims payment. 
NOTE 6: 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 of the State of Georgia and county health departments, permits such employees to defer a portion oftheir salary until future years. Participation in the plan is optional. 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 attnbutable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property or rights of the State of Georgia 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 of the State of Georgia in an amount equal to the fair market value of the 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, 1995. 
NOTE 7: RETIREMENT PLANS 
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 
Plan Description The Georgia Student Finance Commission participates in the Employees' Retirement System of Georgia ("ERS"), a single-employer, defined benefit plan established by the General Assembly of Georgia for the purpose ofproviding retirement allowances for employees of the State of Georgia. The Commission's payroll for the year ended June 30, 1995, for employees covered by ERS was $2,945,203.98. The Commission's total payroll for all employees was $2,848,669.55. 
Benefits The benefit structure ofERS was significantly modified on July 1, 1982. Unless elected otherwise, an employee who currently maintains membership with ERS based upon State employment that started prior to July 1, 1982, is an "old plan" member subject to the plan provisions in effect prior to July 1, 1982. All other members are "new plan" members subject to the modified plan provisions. 
 
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 GEORGIA STUDENT FINANCE COMMISSION NOTES TO TIIE FINANCIAL STATEMENTS JUNE 30 1995 
 
EXHIBIT"G" 
 
NOTE 7: RETIREMENT PLANS 
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 
Benefits Members become vested after IO years of creditable service. A member may retire and receive normal retirement benefits after completion of IO years of creditable service and attainment of age 65. Retirement benefits paid to members are based upon a formula which considers the monthly average of the member's highest eight consecutive calendar quarters of salary, the number of years of creditable service, and the member's age at retirement. Postretirement cost-of-living adjustments are also made to member's benefits. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension at reduced rates to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. If 10 years of service is completed and age 60 is reached, the member may retire with a reduced benefit. Additionally, there are certain provisions allowing for retirement after 30 years of service regardless ofage. 
Contributions Required and Contributions Made Under the old plan, member contributions consist ofemployee contributions paid by the employee of 1.25% ofannual compensation and 4.75% ofannual compensation paid by the Commission on behalfof the employee. Under the new plan, member contnbutions consist solely of 1.25% of annual compensation paid by employee. The Commission also is required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation. For the year ended June 30, 1995, the ERS employer contribution rate for the Commission amounted to 14.43% of covered payroll and included the 4.75% contributed on behalf of the employee referred to above. Contributions are also made on amounts paid for accumulated leave of retiring employees. 
Total contributions to the plan made during fiscal year 1995 amounted to $479,136.65, of which $389,703.15 was made by the Commission and $89,433.50 was made by employees. These contributions met the requirements ofthe plan. 
Funding Status and Progress Pension Benefit Obligation 
The amount shown as the "pension benefit obligation" is a standardized disclosure measure of the present value ofpension benefits, adjusted for the effects of projected salary increases and step-rate benefits, estimated to be payable in the future as a result of employee service to date. The measure is intended to help users assess the funding status ofERS on the going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due and make comparisons among employers. The measure is the actuarial present value of credited projected benefits, and is independent ofthe funding method used to determine contributions to the plan. 
The pension benefit obligation was computed as part of an actuarial valuation performed as of June 30, 1994. Significant actuarial assumptions used in the valuation include the following: 
 
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 GEORGIA STUDENT FINANCE COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995 
 
EXHIBIT"G" 
 
NOTE 7: RETIREMENT PLANS 
 
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 
 
Funding Status and Progress Pension Benefit Obligation 
1) The present value offuture pension benefits paid was computed using a discounted rate of 7.5 percent. This rate is also the same rate assumed to be earned on investments in the plan in future years. 
 
2) Future pension payments reflect the following assumed salary increases as a result of inflation and merit increases: 
 
~ 
 
Percentage 
 
20 
 
9.5% 
 
25 
 
8.5% 
 
30 
 
6.5% 
 
35 
 
6.0% 
 
40 to 65 
 
5.7% 
 
3) ERS has the authority to grant cost-of-living adjustments by state statute. As of June 30, 1994, cost-ofliving adjustments have been included in the pension benefit obligation. 
 
The total unfunded pension benefit obligation ofERS as ofJune 30, 1994, was $310,149,000, as follows: 
 
Pension Benefit Obligation: 
Retirees and Beneficiaries Currently Receiving Benefits and Tenninated Employees Entitled to Benefits but Not Yet Receiving Benefits 
Current Employees 
Accumulated Contributions 
Employer-Financed Vested 
Employer-Financed Nonvested 
Total Pension Benefit Obligation 
Net Assets Available for Benefits 
Unfunded Pension Benefit Obligation 
 
$ 2,227,653,000 
648,516,000 1,085,190,000 1206805 000 $5,168,164,000 4 858 015 000 $ 310 149 000 
 
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 GEORGIA STUDENT FINANCE COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995 
 
EXHIBIT"G" 
 
NOTE 7: RETIREMENT PLANS 
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 
Funding Status and Progress Pension Benefit Obligation 
The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1994. Net assets available for benefits were valued as ofthe same date. ERS does not make separate measurements of assets and pension benefit obligation for individual employers. 
Funding Policy The ERS funding policy provides for periodic employer contributions at actuarially determined rates that, expressed as percentages ofannual payroll, are sufficient to accumulate sufficient assets to pay benefits when due. Level percentage of payroll employer contribution rates are determined using the entry age funding method. ERS also uses the level percentage of payroll method to amortize the unfunded liability within approximately 20 years following the valuation date. 
Total contributions from all employers to ERS for the year ended June 30, 1995, were $256,624,679.00. The Commission's contribution was actuarially determined and represented 00.17% of total contributions made by all participating employers. 
Significant actuarial assumptions used to compute contributions are the same as those used to compute the standardized measure of pension obligation. 
Trend Information 
Historical trend information is presented in the financial report ofERS for the year ended June 30, 1995. This 
information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. 
GEORGIA DEFINED CONTRIBUTION PLAN 
Plan Description The Georgia Student Finance Commission participates in the Georgia Defined Contribution Plan ("GDCP") which is a single-employer defined contribution plan established by the Georgia General Assembly in July 1993 for the purpose ofproviding retirement coverage for State employees who are temporary, seasonal, and parttime and are not members ofa public retirement or pension system. GDCP is administered by the Employees' Retirement System Board of Trustees. The Commission's payroll for the year ended June 30, 1995, for employees covered by GDCP was $7,382.25. The Commission's total payroll for all employees was $2,848,669.55. 
Benefits 
A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board. If a member has less than $ 3,500 credit to his/her account, the Board has the option of requiring a lump sum distribution to the member 
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 GEORGIA STUDENT FINANCE COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995 
 
EXHIBIT "G" 
 
NOTE?: RETIREMENTPLANS 
GEORGIA DEFINED CONTRIBUTION PLAN 
Benefits in lieu of making periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary. 
Contributions and Vesting Member contributions are seven and one-half percent (7.5%) of gross salary. There are no employer contributions. Earnings are credited to each member's account in a manner established by the Board. Upon termination of employment, the amount of the member's account is refundable upon request by the member. 
Total contnbutions made by employees during fiscal year 1995 amounted to $553.67 which represents 7.5% of covered payroll. These contributions met the requirements of the plan. 
NOTE 8: 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 ofcontinuous State service with a maximum accumulation of forty five days. Employees are paid for unused accumulated annual leave upon retirement or tennination 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. 
NOTE9: 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, 1995. 
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 GEORGIA STUDENT FINANCE COMMISSION 
NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30 1995 
 
EXHIBIT "G" 
 
NOTE 10: 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, 1995. Under this agreement the Public Employee Dishonesty Coverage insures the Commission to a maximum ofSl,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 ofSl,000,000.00 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 oftheir position or employment. 
All employees ofthe Georgia Student Finance Commission are also bonded under Commercial Crime Policies written by the United States Fire Insurance Company, their Policy Nos. 626 012292 6 and 626 012294 4, on which premiums were paid to October 1, 1995. Under these additional public employee dishonesty coverages, the policies insure the Commission to a maximum of$9,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. 
 
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 SUPPLEMENTARY INFORMATION - 27 - 
 
 GEORGIA STUDENT FINANCE COMMISSION COMBINING BALANCE SHEET/STATUTORY BASIS) 
BUDGET FUND JUNE 30 1995 
 
EXHIBIT"H" 
 
"A" STUDENT FINANCE 
COMMISSION 
 
"B" LOTTERY FOR 
EDUCATION 
 
TOTAL 
 
Cash and Cash Equivalents Accounts Receivable 
state Appropriation Federal Financial Assistance 
Total Assets 
 
$ 
 
188,209.53 $ 
 
4,048,844.32 $ 4,237,053.85 
 
$ 
 
0.42 
 
12,780.96 
 
$ 
 
12,781.38 
 
$ 
 
0.42 
 
12,780.96 
 
$ 
 
12,781.38 
 
$ 
 
200 990.91 $ 4.048.844.32 $ 4.249.835.23 
 
UABILITIES AND FUND EQUITY 
 
Liabilities 
 
Accounts Payable 
 
$ 
 
Payroll Withholdings 
 
$ 
 
Fund Equity 
 
Unreserved 
 
Designated 
 
Surplus 
 
Regular 
 
$ 
 
Lottery for Education 
 
Total Fund Equity 
 
$ 
 
Total Liabilities and Fund Equity 
 
$ 
 
169,485.53 $ 516.00 
170,001.53 $ 
 
24,877.74 $ 24,877.74 $ 
 
194,363.27 516.00 
194,879.27 
 
30,989.38 $ 
30,989.38 $ 
 
$ 
 
30,989.38 
 
4,023,966.58 
 
4,023,966.58 
 
4,023,966.58 $ 4,054,955.96 
 
200 990.91 $ 4.048.844.32 $ 4.249.835.23 
 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
-28- 
 
 GEORGIA STUDENT FINANCE COMMISSION COMBINING STATEMENT OF CHANGES IN FUND BALANCES /STATUTORY BASIS) 
BUDGET FUND YEAR ENDED JUNE 30 1995 
 
EXHIBIT"!" 
 
FUND BALANCES - JULY 1 Reserved 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, 1994 Reserved Fund Balance Carried Over from Prior Year as Funds Available 
FUND BALANCES - JUNE 30 (To Exhibit "Hi 
 
"A" STUDENT FINANCE 
COMMISSION 
 
"B" LOTTERY FOR 
EDUCATION 
 
TOTAL 
 
$ 
 
14,996.97 $ 
 
500,000.00 $ 
 
514,996.97 
 
94,106.49 
 
4,311,856.47 
 
4,405,962.96 
 
$ 
 
109,103.46 $ 
 
4,811,856.47 $ 4,920,959.93 
 
$ 
 
3,127.32 $ 
 
3,127.32 
 
$ 
 
30,989.38 
 
4,020,839.26 
 
4,051,828.64 
 
$ 
 
30,989.38 $ 
 
4,023,966.58 $ 4,054,955.96 
 
$ 
 
94,106.49 $ 
 
4,311,856.47 $ 4,405,962.96 
 
14,996.97 
 
500,000.00 
 
514,996.97 
 
$ 
 
109,103.46 $ 
 
4,811,856.47 $ 4,920,959.93 
 
$ 
 
30,989.38 $ 
 
4,023,966.58 $ 4,054,955.96 
 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
-29- 
 
 GEORGIA STUDENT FINANCE COMMISSION COMBiNiNG STATEMENT Of fUNQS Al/Ail.ABLE ANQ EXPENQiJURES 
BUQGETfUNQ 
YEAR ENQEP JUNE 30 1995 
 
EXHIBIT"J" 
 
fUNps Al/Ail.ABLE 
~ 
STATE APPROPRIATION GeneraJAppropriation AmondadAppropriation 
Tctal S-Appropriation 
FEDERAL REVENUES 
OTHER REVENUES RETAINED Georgia Higher Education Assistance Corporation Georgia Student Finance Authority lnlen!sl Earned 
Total other Revenues Retained 
Total Revenues 
CARRY::Ol/EB FROM PRIOR YEAR 
Transfer from R-...1 Fund Balance Federal Financial Assistance Georgia Higher Education Assistance Corporation Georgia Student Finance Authority 1.-.y for Education 
 
"A" STUDENT FINANCE 
COMMISSION 
 
"B" LOTTERY FOR EDUCATION 
 
TOTAL 
 
$ 
 
27,272,133.00 $ 
 
3588931.00 
 
$ 
 
30 861 064.00 $ 
 
$ 
 
168898.38 
 
$ 
 
2,780,477.00 
 
1,938,348.00 
 
2566.27 $ 
 
$ 
 
4 721 389.27 $ 
 
$ 
 
35 751 351.65 $ 
 
85,697,875.00 $ -8 295 934.00 
77 11 941.00 $ 
$ 
 
112,970,008.00 -4 707 003.00 
108 263 005.00 
168898.38 
 
$ 734564.69 
 
2,780,477.00 1,938,348.00 
737130.96 
 
734564.69 $ 
 
5455953.96 
 
78 136 505.69 $ 113 887 857.34 
 
$ 
 
932.85 
 
$ 
 
932.85 
 
11,922.97 
 
11,922.97 
 
2,141.15 
 
2,141.15 
 
$ 
 
500000.00 
 
500000.00 
 
$ 
 
14996.97 $ 
 
500000.00 $ 
 
514996.97 
 
Total Funds Available 
 
$ 
 
35 766 348.62 $ 
 
78 636 505.69 $ 114 402 854.31 
 
EXPENQITUREs 
 
PERSONAL SERVicEs 
 
Salaries and Wages Emploier's Contributions for: 
F.I.C.A. Retirement Health Insurance Personal Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance Assessments by Merit System 
 
$ 
 
2,848,669.55 
 
203,045.66 425,026.73 347,245.32 
22,922.00 3,095.00 15,896.00 12152.82 
 
$ 
 
3878053.08 
 
REGULAR OPERATING l;;XPENS!;S 
 
Motor Vehicle Expenses Supplies and Materials Repairs and Ma,_.,nce Rents (other than Real Estate) Insurance and Bonding 
 
$ 
 
5,360.43 
 
283,620.23 
 
11,219.16 
 
1,569.61 
 
8,673.13 
 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and SUpplemenlary lnfonnalion. 
 
.30. 
 
$ 
 
2,848,669.55 
 
203,045.66 425,026.73 347,245.32 
22,922.00 3,095.00 15,896.00 12152.82 
 
$ 
 
3878053.08 
 
$ 
 
5,360.43 
 
283,620.23 
 
11,219.16 
 
1,569.61 
 
8,673.13 
 
 GEORGIA STUDENT FINANCE COMMISSION COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES 
BUDGET FUND 
YEAR ENDED JUNE 30 1995 
 
EXHIBIT"J" 
 
EXPENPIIURFS 
REGULAR OPERATING EXPENSES 
Other Operating E>cpenses (See Schedule) Dupllcaling and Rapid Copy Publlcalions and Printing 
EQUIPMENT 
Equipment Purchases 
COMPUTER CHARGES 
OtherCosts Supplies and Materials Repairs and Maintenance 
SOl!ware Equipment 
Equipment Purchases Per Diem, Faas and Contracts 
Per Diem and Fees Contracts Computer Billings, DOAS 
REAL ESTATE RENTALS 
TELECOMMUNICATIONS 
PER DIEM FEES AND CONTRACTS 
Per Diem and Fees Contracts 
OTHER 
GUARANTEED EDUCATIONAL LOANS OtherCosts Tuition and Scholarships Georgia student Finance Authority 
TUITION EQUALIZATION GRANTS OtherCosts Tuition and Scholarships Georgia Student Finance Authority 
STUDENT INCENTIVE GRANTS OtherCosts Tuition and SChclarships Georgia Student Finance Authority 
 
"A" STUDENT FINANCE 
COMMISSION 
 
"B" LOTTERY FOR 
EDUCATION 
 
TOTAL 
 
111,302.91 7,329.07 
106896.12 $ _ _ _~535=9=7-=0'-'.66"$ _ _ _~73=365=~.'1=6 
$ _ _ __,,_24,,494=,:e-96:,,_ 
 
$ 
 
7,542.28 
 
22,761.86 
 
128,049.16 
 
158,390.53 
 
eo,391.68 96,850.68 
8524.99 
 
$ _ _ _-=502=5~1"-1'-'.1"-8 
 
$ _ _ _~44~099=a,,96=- 
 
$ _ _ _-=354=1'-'53=.7=-6 
 
46,931.73 16720.45 
$ _ _ _---=63=65=2'-'.1"-8 
 
$ 
 
111,302.91 
 
7,329.07 
 
106896.12 
 
$ 
 
535970.66 
 
$ 
 
73365.46 
 
$ 
 
24494.96 
 
7,542.28 22,761.86 128,049.16 
158,390.53 S0,391.68 96,850.68 8524.99 
$ _ __,502=~51~1~.1=8 
$ _ ___,44-=099=.96= 
$ _ __,354=ce153=.7-=-6 
46,931.73 16720.45 
$ _ _--=63=65=2=-'.1=8 
 
$ _ ___:3.,,292=64=1,,,.00,._ 
s ---=22=360=260=,,,.oo,._ 
$ -----=3c.739=557=,::-00,o_ 
 
s _ _,3,.,292""""'64"'1.,,.oo"'22 360 260.00 3 739557.00 
 
See accompanying notes and Independent Aceountanrs Combined Report on Review of Financial Statements and Supplementary lnfonnation. 
-31- 
 
 GEORGIA STLJPENT FINANCE COMMISSION COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES 
BUDGET FUND YEAR ENDED JUNE 30 1995 
 
EXHIBIT"J" 
 
"A" STUDENT FINANCE 
COMMISSION 
 
e 
LOTTERY FOR EDUCATION 
 
EXPENDITURES 
 
OTl:fEB. 
 
LAW ENFORCEMENT PERSONNEL DEPENDENTS' GRANTS 
 
OlherCosls 
 
Tuition and Scholarships 
 
~ i a Student Finance Authority 
 
$ _ _ __,,38=000=.oo= 
 
$ 
 
NORTH GEORGIA COLLEGE ROTC GRANTS 
 
OlherCosls 
 
Tuition and Scholarships 
 
~ i a Student Finance Authority 
 
$ _ _ _-'-1,,,5,,000=.oo"'- 
 
$ 
 
OSTEOPATHIC MEDICAL LOANS 
OlherCosls Tuition and Scholarships ~ i a Student Finance Authority 
 
$ _ _ _-'1"'eo=ooo=.oo"'- 
 
$ 
 
GEORGIA MILITARY SCHOLARSHIP GRANTS 
 
OlherCosls 
 
Tuition and Scholarships 
 
~ i a Student F,nance Authority 
 
$ _ _ _...,593=~600=.00= 
 
$ 
 
HOPE FINANCIAL AID. TUITION 
OlherCosls 
SUpplies and Materials Tuition and Scholarships 
~ i a Student Finance Authority Other Operating Expenses (See Schedule) Repairs and Maintenance Publications and Printing Travel Equipment Equipment Purchases Rental of Equipment Real Estate Rentals Computer Charges 
OlherCosls Supplies and Materials 
Software Equipment 
Equipment Purchases Per Diem, F - and Contracts 
Per Diem and Fees 
Contracts Telecommunications Per Diem, Fees and Contracts 
Per Diem and Fees 
Contracts 
 
28,746.94$ 
32,773,197.41 399,316.41 190.00 20,553.55 6,480.18 
1,010.68 3,765.32 24,762.96 
176.00 23,781.70 
53,987.81 
42,319.47 36,700.00 33,137.98 
354,678.68 281527.00 
 
HOPE FINANCIAL AID BOOKS OlherCO&ts Supplies and Materials 
 
$ - - - = 34 = 084= 332=.09 $ 13 365173.53 $ 
 
HOPE FINANCIAL AID  FEES OlherCO&ts Other Operating Expenses 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and SUpplernentary Information. 
 
6 757 416.28 $ 
 
-32- 
 
TOTAL 
38000.00 
75000.00 
160000.00 
593600.00 
28,746.94 32,773,197.41 
399,316.41 190.00 
20,553.55 6,480.18 1,010.68 3,765.32 
24,762.96 
176.00 23,781.70 53,987.81 42,319.47 36,700.00 33,137.98 354,678.68 281527.00 34084332.09 
13 365 173.53 
6757416.28 
 
 GEORGIA STUDENT FINANCE COMMISSION COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES 
BUDGETftJND YEAR ENDED JUNE 30 1995 
 
EXHIBIT"J" 
 
EXPENDITURES 
Qil:iEB 
TUITION EQUALIZATION GRANTS OlherCosts Tuition and Scholarships Technical Institutes 
GEORGIA MILITARY COLLEGE SCHOLARSHIP OlherCosts Tuition and Scholarships Gegia Student Finance Authority 
LEPO SCHOLARSHIP OlherCosts Tuition and Scholarships Gegia Student Finance Authority 
Total other 
Tolal~res 
Excess of Fu- Available ow,r Expendijures 
 
"A" STUDENT FINANCE 
COMMISSION 
 
s 
LOTTERY FOR EDUCATION 
 
TOTAL 
 
$ 
 
20 302 594.27 $ 20 302 594.27 
 
36895.26 $ 
 
36895.26 
 
$ 
 
30 259 058.00 $ 
 
$ 
 
35,735,359.24 $ 
 
30989.38 
 
69255.00 $ 74615 666.43 $ 74,615,666.43 $ 
4020839.26 
 
69255.00 104874 n4.43 110,351,025.67 
4051828.64 
 
35 766 348.62 $ 
 
78 636 505.69 $ 114 402 854.31 
 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
-33- 
 
 GEORGIA STUDENT FINANCE COMMISSION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES 
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30 1995 
 
EXHIBIT"K" 
 
FUND 
Georgia Nonpublic Postsecondary Education Commission Surety Bonds Tuition Guaranty Trust Fund 
 
ASSETS/ LIABILITIES JULY1, 1994 
 
ADDITIONS 
 
DELETIONS 
 
ASSETS/ LIABILITIES JUNE 30, 1995 
 
$ 
 
14,121.98 $ 
 
463.55 $ 
 
27.48 $ 
 
14,558.05 
 
313,925.27 
 
190,039.72 
 
36,381.26 
 
467,583.73 
 
$ 
 
328,047.25 $ 190,503.27 $ 
 
36,408.74 $ 482,141.78 
 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
-34- 
 
 FUNDS AVAILABLE 
HEYEMl/ES 
State Appropriation Federal Reven._ Other Revenues Retained 
 
GEORGIA STUDENT FINANCE COMMISSION SCHEDULE OF APPROVED BUDGET "A" STUDENT FINANCE COMMISSION 
YEAR ENDED JUNE 30 1995 
 
SCHEDULE "1" 
 
ORIGINAL 
 
AMENDED 
 
BUDGET 
 
APPROPRIATION APPROPRIATION ADJUSTMENTS 
 
TOTAL 
 
$ 27,272,133.00 $ 1,689,383.00 6125376.00 
 
3,588,931.00 459,690.00 $ 
 
$ 363343.00 
 
30,861,064.00 2,149,073.00 6488719.00 
 
$ 35 086 892.00 $ 4048621.00 $ 
 
363343.00 $ 39 498 856.00 
 
EXPENDJTURES 
Personal Services Regular Operating Elcpenses Travel Equipment Computer Charges Real E - Rentals Telecommunications Per Diem, Fees and Contracts Guaranteed Educational Loans Tuition Equalization Grants student Incentive Grants Law Enfon:ement Personnel Dependents' Grants North Georgia College ROTC Grants Osteopathic Medical Loans Georgia MHitary Scholarship Grants Paul Douglas Teacher Scholarship Loans 
 
$ 4,797,815.00 $ 399,051.00 81,800.00 16,000.00 371,000.00 24,763.00 142,000.00 42,757.00 
4,076,000.00 18,840,166.00 5,003,940.00 
38,000.00 75,000.00 160,000.00 593,600.00 425000.00 
 
201,258.00 65,000.00 $ 20,000.00 4,000.00 50,000.00 20,037.00 2,250.00 
165,982.00 
3,520,094.00 
 
$ 67,432.00 
4,495.00 81,512.00 
209,904.00 
 
4,999,073.00 531,483.00 101,800.00 24,495.00 502,512.00 44,800.00 354,154.00 208,739.00 
4,076,000.00 22,360,260.00 
5,003,940.00 38,000.00 75,000.00 160,000.00 
593,600.00 425000.00 
 
$ 35 086,892.00 $ 4 048,621.00 $ 
 
363343.00 $ 39 498 856.00 
 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
 
 GEORGIA STUDENT FINANCE COMMISSION SCHEDULE OF APPROVED BUDGET "B" LOTTERY FOR EDUCATION YEAR ENDED JUNE 30 1995 
 
SCHEDULE "2" 
 
FUNDS AVAILABLE REVENUES 
State Appropriation 
 
ORIGINAL 
 
AMENDED 
 
APPROPRIATION APPROPRIATION 
 
TOTAL 
 
$ 85,697,875.00 $ -8.295,934.00 $ 77.401.941.00 
 
EXPENDITURES 
Hope Financial Aid - Tuition Hope Financial Aid - Books Hope Financial Aid - Fees Tuition Equalization Grants Georgia Military College Scholarship LEPO Scholarship 
 
$ 48,994,747.00 $ -9,932,806.00 $ 39,061,941.00 
 
20,143,424.00 
 
-8, 143,424.00 
 
12,000,000.oo 
 
4,656,704.00 
 
1,343,296.00 
 
6,000,000.00 
 
11,563,000.00 
 
8,437,000.00 
 
20,000,ooo.oo 
 
240,000.00 
 
240,000.00 
 
100,000.00 
 
100,000.00 
 
$ 85 697,875.00 $ -8.295,934.00 $ 77.401.941.00 
 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
-36- 
 
 GEORGIA STUDENT FINANCE COMMISSION CASH AND CASH EQUIVALENTS JUNE 30 1995 
 
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 
 
$ 
 
117,667.09 
 
$ 4,213,460.97 
 
396,796.10 
 
4,610,257.07 
 
$ 4,727,924.16 
 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
-37- 
 
 GEORGIA STUDENT FINANCE COMMISSION SCHEDULE OF FEDERAL REVENUES YEAR ENDED JUNE 30 1995 
 
PROGRAM 
Education, U.S. Department of State Postsecondary Review Direct 
 
CFDA NUMBER 
84.267 
 
SCHEDULE 4 
AMOUNT $ 168.898.38 
 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
-38- 
 
 GEORGIA STUDENT FINANCE COMMISSION SCHEDULE OF OTHER OPERATING EXPENSES 
YEAR ENDED JUNE 30 1995 
 
SCHEDULE 5 
 
REGULAR OPERATING EXPENSES 
Advertising and Promotion Board Meeting Expense Dues and Memberships Freight Offsite Storage Registration Fees Subscriptions Training Expenses 
 
"A" STUDENT FINANCE 
COMMISSION 
 
s 
LOTTERY FOR EDUCATION 
 
TOTAL 
 
$ 
 
6,317.26 
 
3,031.78 
 
9,005.00 
 
1,480.50 
 
68,753.96 
 
10,069.65 
 
1,868.58 
 
10,776.18 
 
$ 
 
6,317.26 
 
3,031.78 
 
9,005.00 
 
1,480.50 
 
68,753.96 
 
10,069.65 
 
1,868.58 
 
10,776.18 
 
$ 
 
111 302.91 
 
$ 111,302.91 
 
OTHER 
Hope Financial Aid - Tuition other Costs Advertising and Promotion Dues and Memberships Registration Fees Subscription and Dues Training Expense 
 
$ 
 
398,098.86 $ 398,098.86 
 
120.00 
 
120.00 
 
575.00 
 
575.00 
 
323.00 
 
323.00 
 
199.55 
 
199.55 
 
$ 
 
399 316.41 $ 399,316.41 
 
Hope Financial Aid - Fees other Costs Student Activity Fees 
 
$ 
 
6,757,416.28 $ 6,757,416.28 
 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
-39- 
 
 GEORGIA STUDENT FINANCE COMMISSION RECONCILIATION OF TRAVEL YEAR ENDED JUNE 30 1995 
Total per Annual Supplement Accruals June 30, 1994 June 30, 1995 
Total per Report 
 
SCHEDULE"6" 
 
$ 
 
79,264.07 
 
-694.72 1,276.29 
 
$===79=.84==5.=64= 
 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
-40- 
 
 GEORGIA STUDENT FINANCE COMMISSION SUMMARY OF SALARIES TRAVEL AND PER DIEM AND FEES 
YEAR ENDED JUNE 30 1995 
 
SCHEDULE "7" 
 
BUDGET FUND 
"A" STUDENT FINANCE COMMISSION Regular Computer Charges 
"B" LOTTERY FOR EDUCATION Hope Financial Aid - Tuition Regular Computer Charges 
 
SALARIES 
 
TRAVEL 
 
PER DIEM AND FEES 
 
$ 2,848,669.55 $ $ 2,848,669.55 $ 
 
73,365.46 $ 73,365.46 $ 
 
46,931.73 80,391.68 
127,323.41 
 
$ 
 
6,480.18 $ 
 
354,678.68 
 
42,319.47 
 
$ 
 
6,480.18 $ 
 
396,998.15 
 
$ 2,848,669.55 $ 
 
79 845.64 $ 
 
524,321.56 
 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
-41 - 
 
 SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS 
 
 GEORGIA STUDENT FINANCE COMMISSION SCHEDlIT..E OF FINDINGS AND IMPROPER OR QUESTIONED COSTS 
YEAR ENDED ruNE 30 1995 
 
CURRENT YEAR 
 
BUDGET PREPARATION/EXECUTION Overexpenditure of Budget Unit Object Classes Financial Statements Audit Control Number 476-95-01 
 
The total approved budget for budget unit "B" Lottery for Education of the Georgia Student Finance Commission provided for expenditures totaling $77,401,941.00. A comparison of anticipated funds available and budgeted expenditures to actual funds available and expenditures by object class indicates that the following object classes were overspent by the amounts identified below: 
 
Hope Financial Aid - Books Hope Financial Aid - Fees Tuition Equalization Grants 
 
$1,365,173.53 $ 757,416.28 $ 302,594.27 
 
These overexpenditures are in violation ofSection 80 ofthe Amended Appropriations Act of 1994-1995. The overexpenditures were caused by the Commission's failure to monitor the expenditure of funds against the budgeted expenditures by object class. 
 
The Georgia Student Finance Commission should review its internal control procedures over budget operations, design procedures which would prohibit the expenditure of funds in excess of budget approval, and implement those procedures to strengthen the internal controls over the budget function.