Audit report, state of Georgia, Valdosta State University, Valdosta, Georgia, year ended June 30, 1994

GA A800 ,,Rl
"-133
1Cje13-.c1i-
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET
ATLANTA. GEORGIA 30334

AUDIT REPORT STATE OF GEORGIA VALDOSTA STATE UNIVERSITY VALDOSTA, GEORGIA YEAR ENDED JUNE 30, 1994

VALOOSTA STATE UNIVERSITY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

EXHIBITS

FINANCIAL STATEMENTS

A COMBINED BALANCE SHEET

ALL FUND GROUPS

2

B COMBINED STATEMENT OF CHANGES IN FUND BALANCES

ALL FUND GROUPS

4

C STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,

AND OTHER CHANGES

6

D NOTES TO THE FINANCIAL STATEMENTS

7

SUPPLEMENTARY INFORMATION

E COMBINING BALANCE SHEET

CURRENT FUNDS - UNRESTRICTED

20

F COMBINING STATEMENT OF CHANGES IN FUND BALANCES

CURRENT FUNDS- UNRESTRICTED

21

G COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,

AND OTHER CHANGES

UNRESTRICTED

23

SCHEDULES

SCHEDULES OF REVENUES AND EXPENDITURES COMPARED TO BUDGET

1

RESIDENT INSTRUCTION

24

2

LOTTERY FOR EDUCATION

26

SCHEDULES OF OPERATIONS

3

LOAN FUNDS

27

4

ENOOWMENT AND SIMILAR FUNDS

29

5 SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

AGENCY FUNDS

30

6 CASH AND CASH EQUIVALENTS

32

7 ACCOUNTS RECEIVABLE

33

8 CHANGES IN INVESTMENT IN PLANT

34

9 SCHEDULE OF FUND BALANCES

CURRENT FUNDS AND PLANT FUNDS

36

VALDOSTA STATE UNIVERSITY - TABLE OF CONTENTS -

~

SECTION I

FINANCIAL

SUPPLEMENTARY INFORMATION

SCHEDULES

10 SCHEDULE OF REVENUES

CURRENT FUNDS

38

SCHEDULES OF EXPENDITURES BY OBJECT

11

CURRENT FUNDS

40

12

PLANT FUNDS

44

SECTION IT 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 ~uhits
254 WASHINGTON STREET, S.W. ROOM 214
J\thtttbt, &i.eur_gia 30334-8400
September 16, 1994

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

Honorable Zell Miller, Governor Members ofthe General Assembly of Georgia Members of the Board ofRegents of the University System ofGeorgia
and Honorable Hugh C. Bailey, President Valdosta State University
INDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the accompanying financial statements (Exhibits A through D) of Valdosta State University as ofand for the year ended June 30, 1994. These financial statements are the responsibility ofthe University's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in Note 1 to the financial statements, Georgia Law and State budgetary policy require the
as University to prepare its financial statements on a basis which is not consistent with generally accepted
accounting principles with respect to the recording of encumbrances expenditures and liabilities. To conform with generally accepted accounting principles, encumbrances should be recorded as a reservation of fund balance. The effects on the financial statements of this departure from generally accepted accounting principles were not reasonably determinable, but are believed to be material.
As described in Note 1 to the financial statements, the University did not report the liability and related expenditure for compensated absences in the current funds as required by generally accepted accounting principles.

94ARL-52

In our opinion, except for the effects on the financial statements ofthe matters discussed in the third and fourth paragraphs, the financial statements referred to above present fairly, in all material respects, the financial position of Valdosta State University as of June 30, 1994, and the changes in fund balances and the current operating funds revenues, expenditures, and other changes for the year then ended in conformity with generally accepted accounting principles.
Our audit was made for the purpose offorming an opinion on the financial statements taken as a whole. The accompanying supplementary information (Exhibits E through G and Schedules 1 through 12) is presented for purposes of additional analysis and is not a required part of the financial statements of Valdosta State University. Such information has been subjected to the auditing procedures applied in the audit ofthe financial statements and, in our opinion, except for the effects of the matters discussed in the third and fourth paragraphs, such information is fairly presented in all material respects in relation to the financial statements taken as a whole.
Respectfully submitted,
t:r~~
Claude L. Vickers State Auditor
CLV:cm 94ARL-52

FINANCIAL STATEMENTS - 1-

VALDOSTA STATE UNIVERSITY COMBINED BALANCE SHEET
ALL FUND GROUPS JUNE 30, 1994

ASSETS
Cash and Cash Equivalents Accounts Receivable Inventories Prepaid Items Investment in Plant

CURRENT FUNDS UNRESTRICTED RESTRICTED

LOAN FUNDS

ENDOWMENT AND SIMILAR
FUNDS

$ 3,392,579.7B 679,411.55 $ 446,342.00 164,238.17

$ 176,674.57 $ 2,643,291.18 998,442.48 1,539,577.60

Total Assets

$4,682,571.50$ 998,442.48$ 1,716,252.17 $ 2,643,291.18
============= ============= ============= ==s==========

LIABILITIES AND FUND BALANCES
Liabilities Cash Overdraft Accounts Payable Student Deposits Deferred Revenue Tuition and Fees Deposits Held for Others Capital Lease Obligations
Total Liabilities
Fund Balances U. S. Government Grants Refundable Institutional Loans - Restricted Endowment Term Endowment Quasi-Endowment - Restricted Net Investment in Plant Restricted Unrestricted
Total Fund Balances

$
$1,389,886.17 158,200.92

247,471.36 8,086.67

2,584,286.66

$4,132,373.75$ 255,558.03
$1,470,793.21 245,458.96 $ 2,051,655.82 589,483.44 2,151.92
$ 742,884:45 $ 550,197.75
$ 550,197.75$ 742,884.45$ 1,716,252.17$ 2,643,291.18

Total Liabilities and Fund Balances$ 4,682,571.50$ 998,442.48$ 1,716,252.17 $ 2,643,291.18
The notes to the financial statements are an integral part of this statement. - 2-

EXHIBIT "A"

UNEXPENDED

PLANT FUNDS
RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

AGENCY FUNDS

TOTAL (Memorandum
Only)

$1,261,456.87

$ 184,407.29 $ 7,658,409.69

$ 76,447.08

2,336.90 3,296,215.61

446,342.00

164,238.17

$68,823,982.81

68,823,982.81

$ 76,447.08$ 1,261,456.87 $68,823,982.81 $ 186,744.19 $80,389,188.28
============= ============= ============= ============= =============

$ 64,704.15 11,300.00
$ 76,004.15

$ 312,175.51 $ 34,512.65 1,443,785.49
158,200.92

$ 190,014.70

152,231.54

2,584,286.66 152,231.54 190,014.70

$ 190,014.70$ 186,744.19 $ 4,840,694.82

$68,633,968.11

$

442.93 $1,261,456.87

$

442.93 $1,261,456.87 $68,633,968.11

$1,470,793.21 245,458.96
2,051,655.82 589,483.44 2,151.92
68,633,968.11 742,884.. 45
1,812,097.55
$75,548,493.46

$ 76,447.08$ 1,261,456.87 $68,823,982.81 $ 186,744.19 $80,389,188.28
============= ============= ============= ============= =============

- 3-

VALDOSTA STATE UNIVERSITY COMBINED STATEMENT OF CHANGES IN FUND BALANCES
ALL FUND GROUPS
YEAR ENDED JUNE 30, 1994

REVENUES AND OTHER ADDITIONS

Unrestricted Current Fund Revenues State Appropriations - Lottery Proceeds Federal Grants and Contracts State Grants and Contracts Private Gifts, Grants, and Contracts Investment Income
Endowment Other Realized Gains on Investments Interest on Loans Receivable Adjustments Prior Years' Expenditures/Accounts Payable Prior Years' Checks Voided Expended for Plant Facilities Current Funds Plant Funds
Unexpended Renewals and Replacements Georgia State Financing and Investment Commission Other Additions Legal Settlement (Note 8) Recovery of Prior Years' Cancelled Loans

Total Revenues and Other Additions

EXPENDITURES AND OTHER DEDUCTIONS

Educational and General Expenditures

Auxiliary Enterprises Expenditures

Indirect Costs Recovered

Remittances to the Board of Regents of the

University S~stem of Georgia

Prior Years Unrestricted Fund Balance

Surplus



Adjustments

Prior Years' Revenues/Accounts Receivable

Prior Years' Unfunded Programs

Loans Assigned to Federal Government

Loan Cancellations and Write-offs

Administrative and Collection Costs

Expended for Plant Facilities

Capitalized

Non-Capitalized

Disposals/Deletions/Adjustments

Total Expenditures and Other Deductions

TRANSFERS BETWEEN FUNDS

Nonmandatory Renewals and Replacements Capital Projects

Total Transfers Between Funds

Net Increase/(Decrease) for the Year FUND BALANCES JULY 1, 1993

FUND BALANCES JUNE 30, 1994

CURRENT FUNDS
-U-N-R-E-S-T-R-IC-T-E-D------R-E-S-T-R-IC-T-E-D---
$50,383,201.59 $ 5,624,353.14 1,261,451.29 358,121.04 133,005.67
35,113.88 218.27

50,000.00 $50,468,533.74$ 7,376,931.14

$42,569,244.39 $ 7,230,321.93 6,990,128.84 87,910.80

32,311.47 4,254.53 13,993.65

13,993.65 -13,993.65

$49,609,932.88$ 7,318,232.73

$ -757,552.16
----2-0--0-,0--0-0-.0--0
$ .,-957,552.16
-------------
$ -98,951.30 $ 58,698.41
----6-4-9-,-1-4-9-.0--5 ----6-8-4-,-1-8-6-.0--4

$ 550,197.75
=============

$=--7-=42--,8=8-4-.-4-5-

The notes to the financial statements are an integral part of this statement.
- 4-

EXHIBIT "B"

LOAN FUNDS

ENDOWMENT AND SIMILAR
FUNDS

UNEXPENDED

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

TOTAL (Memorandum
Only)

$ $ 11,300.00 $ 9,316.69

0.00 $

$50,383,201.59

11,300.00

5,624,353.14

1,261,451.29

367,119.24

734,556.97

$

413.22

41,820.26

240,579.03

102,418.62

133,005.67 102,831.84 240,579.03 41,820.26

442.93

35,556.81 218.27

2,921,285.94 2,921,285.94

336,300.00 21,836.53 290,750.92

336,300.00 21 836.53
290:750.92

50,000.00
-----2-3-,9--1-7-.8--3 ------------- ------------- ------------- ------------- -----2-3-,9--1-7-.8--3

$ 66,151.31 $ 249,895.72 $ 114,161.55 $

0.00 $ 3,937,292.63 $62,212,966.09

$

$

6,872.19

33,641.37

28,429.69

$ 68,943.25$

0.00

$49,799,566.32

6,990,128.84

87,910.80

$ 1,346.70
336,300.00 $ 0.00 $ 337,646.70$

21,836.53 10,965.66 $
201,903.70

33,658.17 18,248.18
0.00 6,872.19 33,641.37 28,429.69 358,136.53 10,965.66 201,903.70

32,802.19$ 201,903.70 $57,569,461.45

$ 757,552.16
$----2-2-2-,-5-8-1-.-3-8 -----2--2-,-5-8-1-.-3-8 $----2-2-2-,-5-8-1-.-3-8 $----7-3-4-,-9-7-0-.7--8

$

0.00

----------0-.0--0

$----------0-.0--0

$ -2,791.94 $ 249,895.72 $

-903.77 $ 702,168.59 $ 3,735,388.93 $ 4,643,504.64

1,719,044.11 2,393,395.46

1,346.70

559,288.28 64,898,579.18 70,904,988.82

$=1=,=7=1=6=,=2=5=2=.=1=7=

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

442.93
=============

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

$=6=8=,6==3=3=,9=6==8=.1=1=

$75,548,493.46
=============

- 5-

VALDOSTA STATE UNIVERSITY STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,
AND OTHER CHANGES YEAR ENDED JUNE 30, 1994

EXHIBIT "C"

UNRESTRICTED RESTRICTED

TOTAL (Memorandum
Only)

REVENUES

State Appropriations Tuition and Fees Federal Grants and Contracts State Grants and Contracts Private Gifts, Grants, and Contracts Endowment Income Sales and Services of Educational Activities Sales and Services of Auxiliary Enterprises Other Sources

$26,236,854.00

$26,236,854.00

17,602,275.33

17,602,275.33

103,353.01 $ 5,528,679.38 5,632,032.39

1,231,658.93 1,231,658.93

358,492.02 358,492.02

111,491.60 111,491.60

99,473.76

99,473.76

5,251,514.34

5,251,514.34

1,089,731.15

1,089,731.15

Total Revenues

$50,383,201.59$ 7,230,321.93 $57,613,523.52

EXPENDITURES

Educational and General Instruction Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships
Auxiliary Enterprises Student Housing Food Services Stores and Shops Intercollegiate Athletics Other Service Units

$22,601,546.15$ 751,193.48 $23,352,739.63

3,858,556.39 309,044.60 4,167,600.99

3,011,848.13

29,718.06 3,041,566.19

7,760,267.98 978,278.20 8,738,546.18

3,695,233.74

3,695,233.74

1,641,792.00 5,162,087.59 6,803,879.59

2, 153 ,909 . 77 1,980,197.03
410,773.61 1,662,022.62
783,225.81

2,153,909.77 1,980,197.03
410,773.61 1,662,022.62
783,225.81

Total Expenditures

$49,559,373.23$ 7,230,321.93 $56,789,695.16

OTHER TRANSFERS AND ADDITIONS/(DEDUCTIONS)

Excess of Restricted Receipts over Transfers to Revenues
Transfers for Renewals and Replacements Transfers for Capital Projects Prior Period Adjustments (Net) Legal Settlement (Note 8) Remittances to the Board of Regents of the
University System of Georgia Prior Year's Unrestricted Fund Balance Surplus
Total Other Transfers and Additions/(Deductions)

$ $ -757,552.16
-200,000.00 17,083.97 50,000.00

58,698.41 $

58,698.41 -757,552.16 -200,000.00
17,083.97 50,000.00

-32 ,311.47

-32,311.47

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

$ -922,779.66 $ 58,698.41 $ -864,081.25

Net Increase/(Decrease) in Fund Balances

$ -98,951.30 $ 58,698.41 $ -40,252.89
============= ============= -----=--==---

The notes to the financial statements are an integral part of this statement.
- 6-

VALDOSTA STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXfllBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Valdosta State University (formerly Valdosta State College) is one of thirty-four (34) State supported member institutions ofhigher education in Georgia which comprise the University System of Georgia, an organiz.ational unit ofthe State ofGeorgia. The accompanying financial statements reflect the operations of Valdosta State University as a separate reporting entity.
The Board ofRegents has constitutional authority to govern, control and manage the University System of Georgia. This authority includes but is not limited to the power to designate management, the ability to significantly influence operations, the authority to control institutions' budgets, the power to determine allotments of State funds to member institutions and the authority to prescribe accounting systems and administrative policies for member institutions. Valdosta State University does not have authority to retain unexpended State funds (surplus) for any given fiscal year. Accordingly, Valdosta State University is considered an organizational unit ofthe Board ofRegents ofthe University System of Georgia reporting entity for financial reporting purposes because ofthe significance of its legal, operational, and financial relationships with the Board of Regents as defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards.
FUND ACCOUNTING In order to ensure observance oflimitations and restrictions placed on the use of the resources available to the University, the accounts ofthe University are maintained in accordance with the principles of fund accounting. This is the procedure by which resources for various purposes are classified for accounting and reporting purposes into funds that are in accordance with activities or objectives specified. Separate accounts are maintained for each fund; however, in the accompanying financial statements, funds that have similar characteristics have been combined into fund groups. Accordingly, all financial transactions have been recorded and reported by fund group.
Within each fund group, the University's fund balance allocations and designations represent those portions ofthe fund balances that are reserved, restricted and/or designated for specific future use by legal covenants, State policies, or institutional policies.
Funds presented in the accompanying financial statements are as follows:
CURRENT FUNDS
UNRESTRICTED - the fund used to account for those economic resources over which the University retains full control to use for purposes of performing the primary functions of the University, i.e., instruction, public service, auxiliary enterprises, and student activities.
RESTRICTED - the fund used to record externally restricted funds which may only be utilized in accordance with the purposes established by their source. Restricted current funds are recorded as revenues and expenditures when expended for current operating purposes.
- 7-

VALDOSTA STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "D"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
LOAN FUNDS
The fund used to account for resources which have been made available for financial loans to students.
ENDOWMENT AND SIMILAR FUNDS
The fund used to account for endowment funds, term endowment funds, and quasi-endowment funds. Endowment funds are subject to the restrictions ofgift instruments requiring that the principal be invested in perpetuity and income only be utilized. Tenn endowment funds are similar to endowment funds except that upon the passage ofa stated period of time or the occurrence of a particular event, all or part ofthe principal may be expended. While quasi-endowment funds have been established by the University for the same puq,oses as endowment funds, any portion of quasi-endowment funds may be expended. Restricted quasi-endowment funds may be expended only for the purposes established by the source ofsuch funds.
PLANT FUNDS
UNEXPENDED - the fund used to account for financial resources utilized to acquire or to construct physical properties for institutional purposes.
RENEWALS AND REPLACEMENTS - the fund used to account for resources set aside for the renewal and replacement ofinstitutional properties.
INVESTMENT IN PLANT - the fund which shows the total amounts representing the book value ofall physical properties owned by the University. Net Investment in Plant is an equity account showing the total book value ofphysical properties belonging to the University less the amount of any indebtedness to others.
AGENCY FUNDS
The fund used to account for resources held by the University as custodian or fiscal agent for individual students, faculty, staff members and organizations.
BASIS OF ACCOUNTING Except as otherwise disclosed in these notes, the financial statements are prepared on the modified accrual basis ofaccounting, which is materially the same as the accrual basis ofaccounting applicable to colleges and universities prescribed in the American Institute ofCertified Public Accountants Industry Audit Guide, Audits ofColleges and Universities. The modified accrual basis ofaccounting is defined as that method ofaccounting in which expenditures, other than accrued interest on general long-term debt, are recorded at the time liabilities are incurred and revenues are recorded when available and measurable to finance expenditures ofthe fiscal period.
- 8-

VALDOSTA STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "D"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING 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 of this nature as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, but is not consistent with generally accepted accounting principles, which provide for the recording ofencumbrances as a reservation offund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles.
Compensated absences represent obligations of the University relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulated leave in which payment is probable and can be reasonably estimated. The compensated absences liability of$1,353,776.13, salary-related fiinge benefits liabilities ofapproximately $103,563.87, and the related current year expenditure, which was not reasonably determinable, have not been reported in the current funds as required by generally accepted accounting principles.
Prior period adjustments are reported as additions to and deductions from fund balances of current funds in the accompanying financial statements. This presentation is in accordance with the State budgetary basis of accounting, but differs from generally accepted accounting principles in that immaterial adjustments should be reported as current period revenues and expenditures. The effect of this departure is deemed to be immaterial to the fair presentation ofthe financial statements.
To the extent that Current Funds and Plant Funds are used to finance plant assets, the amounts so provided are accounted for as expenditures. The balances shown on the Combined Balance Sheet as Net Investment in Plant reflect the accumulated expenditures made for plant facilities through Current Funds and Plant Funds and also include expenditures made for plant facilities expended by the Georgia State Financing and Investment Commission on behalf ofthe University. Fixed assets donated to the University are recorded at fair market value at the date of the gift and disposals are deleted at recorded cost. Depreciation on physical plant and equipment is not recorded.
The Statement of Current Funds Revenues, Expenditures, and Other Changes is a statement of financial activities of current funds related to the current reporting period. It does not purport to present the results of operations or the net income or loss for the period as would a statement of income or a statement of revenues and expenses.
BUDGET The Board of Regents of the University System of Georgia - Administrative Central Office receives State appropriated funds for the organiz.ational units ofthe University System of Georgia. The appropriated budget is adopted at the departmental level and represents appropriations provided by the Amended Appropriations
- 9-

VALDOSTA STATE UNIVERSITY
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUDGET
Act of 1993-1994. The appropriated budget covers current funds and plant funds, except for Auxiliary Enterprises and Student Activities which are not subject to appropriation. The budget allocation and disbursement ofthese funds is made to the various organiutional units by the Administrative Central Office. In addition, the organizational units receive Federal funds and other funds directly and include.these funds in the budget filed with the Administrative Central Office.
CASH AND CASH EQUIVALENTS Cash and Cash Equivalents consist of petty cash, demand deposits, and cash management pools that have the general characteristics of demand deposit accounts in that the University may deposit additional cash at any time and also may withdraw cash at any time without prior notice or penalty.
Certain amounts reflected as Investments in the fiscal year 1993 financial statements are reflected as Cash and Cash Equivalents in the accompanying financial statements. These funds are invested in the Board ofRegents cash management pools.
ACCOUNTS RECEIVABLE Accounts receivable consist ofreimbursements due from Federal, State, local and private grants and contracts, and other receivables disclosed from information available.
INVENTORIES Inventories ofconsumable supplies are recorded on the consumption method and are valued at cost based on the first-in, first-out method.
Inventories ofgoods for resale are valued at cost based on the first-in, first-out method.
PREPAID ITEMS Prepaid items are payments made to vendors in advance ofthe receipt ofgoods and services that will benefit periods subsequent to the balance sheet date.
MEMORANDUM ONLY - TOTAL COLUMNS
The total columns on the financial statements are captioned "Memorandum Only" to indicate that these totals are presented only to facilitate financial analysis. Data in these columns do not present financial position 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 the data.

- 10 -

VALDOSTA STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT"D"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belonging to the 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, notes, certificates ofindebtedness or other direct obligations ofthe United States or of the State of Georgia.
(2) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities of the State of Georgia.
(3) Bonds ofany public authority created by the laws ofthe State ofGeorgia, 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 Banlc, the Federal Home Loan Banlc, the Federal Intermediate Credit Banlc, the Central Bank for Cooperatives, the Farm Credit Banlcs, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
(6) 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 of the State of Georgia (which includes the Board ofRegents ofthe University System of Georgia) the option of exempting demand deposits from the collateral requirements.
The treasurer ofthe Board ofRegents is responsible for all details relative to ~mishing the required depository protection for all units ofthe University System of Georgia.
COLLATERALIZATION OF DEPOSITS For purposes ofanalysis ofcustodial credit risk, the University's bank balances are categorized below to give an indication of the level of risk assumed by the University at year-end:
Category I - Amounts covered by depository insurance or collateralized with securities (at market value) held by the University or by its agent in the University's name.

- 11 -

VALDOSTA STATE UNIVERSITY
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "D"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

COLLATERALIZATION OF DEPOSITS Category 2 - Amounts collateraliz.ed with securities (at market value) held by the financial institution's trust department or agent in the University'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 University's name, and amounts uncollateralized.

Cash Deposits

Canying
.Am!!l!!!l.

Bank Balances

Risk Categories

2

3

S 3 6&5 4&5.97 S 6 920 441 35 S 254 612 69 $===000~ S 666S&28 66

CATEGORIZATION OF INVESTMENTS Investments are summarized below:

Type ofInvestment

Canying Amount

Market Value

Board ofRegents Short-Term Investments Fund Total Return Fund
Mutual Funds

$ 69,164.80 $ 69,164.80

3,292,877.24 3,117,136.52

7,271.00

7,271.00

Total Investments

$ 3,369,313 04 $ 3,193,572 32

Funds invested in an investment pool managed by another governmental entity are not required to be categorized since the University did not own any specific, identifiable investment securities ofthe pool.

NOTE 3: INVESTMENT IN PLANT

The following is a summary oflnvestment in Plant fixed assets at June 30, 1994:
Land Buildings Improvements Other Than Buildings Eguipment Library Books and Collections
Total Investment in Plant

$ 1,589,514.21 44,811,091.91 2,408,557.33 11,734,912.84 8,279,906.52
$68,823,982 81

- 12 -

VALDOSTA STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "D"

NOTE 4: CAPITAL LEASES

The following is a schedule ofthe future minimum lease payments under capital leases at June 30, 1994:

Fiscal Year Ending June 30
1995 1996 1997 1998 1999 Total Future Minimum Lease Payments Less: Amounts Representing Interest Present Value ofFuture Minimum Lease Payments

$ 81,112.37 74,753.14 24,437.08 17,702.04 14,753.08
$ 212,757.71 22,743.01
S 190,014.70

NOTE 5: DEFERRED COMPENSATION PLAN

The State of Georgia offers its employees a deferred compensation plan created 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 of their 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 ofcompensation 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 and rights ofthe State of Georgia subject only to the claims ofthe State's general creditors. Participants' rights under the plan are equal to those ofa general creditor of the State ofGeorgia in an amount equal to the fair market value ofthe deferred account for 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

TEACHERS RETIREMENT SYSTEM OF GEORGIA TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by units ofthe University System of Georgia are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multipleemployer public employee retirement system (PERS).

TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after the member (1) has attained the age of 60 years and has at least ten years ofcreditable service, (2) has at least 30 years of creditable service, regardless of age, or (3) has attained the

- 13 -

VALDOSTA STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIDBIT "D"

NOTE6: RETIREMENTPLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA TRS PLAN DESCRIPTION age of55 years and has at least 25 years ofcreditable service. For those members with 30 years of service or those age 60 with at least ten years of service, retirement benefits are equal to 2% of the average of the member's two consecutive highest paid years ofservice multiplied by the number ofyears ofcreditable service up to 40 years. Any member who has between 25 and 30 years of creditable service and is at least 55 years
ofage shall receive a benefit which is reduced by the lessor of 1/12 of 7% for each month the member is below age 60, or by 7% for each year or :fraction thereofby which the member has less than 30 years ofservice. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits whereby the disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The benefit is based on member's creditable service (minimum of 10 years of service) and compensation up to the date of death or up to the time ofdisability.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
The University's payroll for employees covered by TRS for the year ended June 30, 1994, was $21,991,102.94; total payroll was $28,253,719.57.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe University w1io are covered by TRS are required to pay 6% oftheir gross earnings to TRS. The University makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees as advised by their independent actuary. For fiscal year 1994, the employer contribution rate was 11.81% for covered employees. In addition, the University contributed 5.60% to the TRS on behalfof employees electing to participate in the Regents Retirement Plan. The interest rate assumption (rate of return on investments) was 7.50%.
Total contributions made during fiscal year 1994 amounted to $4,117,159.84, ofwhich $2,795,547.26 was made by the University and $1,321,612.58 was made by employees. These fOntributions represented 12.71% (University) and 6% (employees) of covered payroll,
TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected

- 14 -

VALDOSTA STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "D"

NOTE6: RETIREMENTPLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA
TRS FUNDING STATUS AND PROGRESS
sawy increases. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable
readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess
progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other
PERS and among other employers.

Total unfunded pension benefit obligation of TRS as of June 30, 1993, which was the latest information

available, was as follows:



Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost

12,821,722,000.00

Unfunded pension benefit obligation

$ 1,090,292.000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30,' 1993. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements ofassets and pension benefit obligation for individual employers.

Total contributions from all employers to TRS for fiscal year ended June 30, 1994, were $507,582,176.00. The University's contribution for the year ended June 30, 1994, of$2,795,547.26 was actuarially determined and represented .5508% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1994 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.

TRS RELATED-PARTY INVESTMENTS During the fiscal year 1994 and as of June 30, 1994, the TRS held no securities issued by the University or other related parties.

REGENTS RETIREMENT PLAN The State of Georgia provides optional pension benefits for eligible faculty and principal administrators through a defined contribution plan. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings.

State legislation requires that the employee contribute 6% and the employer contribute 4% of the participating employee's earnable compensation. Amounts attributable to all plan contributions are fully vested and nonforfeitable at all times. The University's payroll for employees covered by the Regents Retirement Plan for the year ended June 30, 1994, was $3,638,087.88; total payroll was $28,253,719.57. The University and the covered employees made the required contributions of$142,327.53 (4%) and $217,187.18 (6%), respectively.

- 15 -

VALDOSTA STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "D"

NOTE 6: RETIREMENT PLANS
GEORGIA DEFINED CONTRIBUTION PLAN The State ofGeorgia provides retirement coverage for temporary, seasonal, and part-time employees who are not eligible for membership in the Teachers Retirement System ofGeorgia 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% oftheir gross salary, with n() matching contribution by the employer. The University's payroll for employees covered by the Georgia Defined Benefit Plan for the year ended June 30, 1994, was $619,389.58; total payroll was $28,253,719.57. Total contributions from the covered employees of the University during fiscal year 1994 amounted to $46,433.26 (7.5%). Amounts attributable to the plan are fully vested and 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 ofTrustees, 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. Information relative to the plan description and funding status is presented in the financial report of the Employees' Retirement System ofGeorgia for the year ended June 30, 1994.
NOTE 7: LEAVE POLICIES
Employees earn annual leave ranging from one and one-quarter days to one and three-quarter days each month depending upon the employees' length ofcontinuous State service with maximum accumulation offorty-five days. Employees are paid for unused accumulated annual leave upon retirement or termination of employment. See Note 1 -Basis of Accounting (Compensated Absences)
Employees earn one day of sick leave each month with no maximum accumulation established. Unused accumulated sick leave does not vest with the employee and is forfeited upon retirement or termination of employment.
NOTES: LEGALSETTLEMENT
During fiscal year 1994, Valdosta State University received $50,000.00_for losses sustained in Auxiliary Enterprises prior to July 1, 1989, which occurred as a result of unauthorized trading in the bond market. Additional funds of$50,000.00 will be received in the subsequent year.
NOTE 9: CONTINGENCIES
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. This qould 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 University expects such amounts, if any, to be immaterial to its overall financial position.
- 16 -

VALDOSTA STATE UNIVERSITY NOTES TO THE FINANCIAL STATEl\,ffiNTS
JUNE 30, 1994

EXHIBIT "D"

NOTE9: CONTINGENCIES

Litigation, claims and assessments filed against Valdosta State University (as a unit of the Board ofRegents of the University System of Georgia), 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 10: BONDING INFORMATION

The President and all employees of Valdosta State University are bonded under a Public Employees Blanket Bond written by the Employers Insurance ofWausau, their Bond No.1450-00-110723, on which the premium has been paid to October 1, 1994. Under this agreement, the public employee dishonesty coverage insures Valdosta State University 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 University 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.

All employees ofValdosta State University 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 has been paid to October 1, 1994. Under this additional public employee dishonesty coverage, the policy insures the University to a maximum of $4,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees.

NOTEll: ENROLLl\,ffiNT

The equivalent full-time student enrollment of Valdosta State University was as follows:

Regular Term Fall Quarter, 1993 Winter Quarter, 1994 Spring Quarter, 1994

7,478 7,333 6,996

Average

Summer School, 1993

UQl

- 17 -

SUPPLEMENTARY INFORMATION - 19 -

VALDOSTA STATE UNIVERSITY COMBINING BALANCE SHEET CURRENT FUNDS - UNRESTRICTED
JUNE 30. 1994

EXHIBIT "E"

ASSETS
Cash and Cash Equivalents Accounts Receivable Inventories Prepaid Items

RESIDENT

LOTTERY FOR AUXILIARY

STUDENT

INSTRUCTION EDUCATION ENTERPRISES ACTIVITIES

TOTAL

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

$2,691,775.36$ 3,000.00$ 518,160.55 $ 179,643.87$ 3,392,579.78

467,189.30

210,586.08

1,636.17 679,411.55

74,121.82

372,220.18

446,342.00

150,573.87

13,317.30

347.00 164,238.17

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

Total Assets

$3,383,660.35$ 3,000.00$ 1,114,284.11 $ 181,627.04$ 4,682,571.50
---------- --------- ----------- -==--z===== -====-==-==-

LIABILITIES AND FUND BALANCES
Liabilities Accounts Payable Student Deposits Deferred Revenue Tuition and Fees
Total Liabilities
Fund Balances Unrestricted

$1,331,795.11 $ 3,012.52

3,000.00$ 53,302.65 $ 155,188.40

1,788.41 $1,389,886.17 158,200.92

1,940,870.20

565,737.46

77,679.00 2,584,286.66

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

$3,275,677.83 $ 3,000.00$ 774,228.51 $ 79,467.41 $4,132,373.75

107,982.52

0.00 340,055.60 102,159.63 550,197.75

z:a-----= Total Liabilities and Fund Balances$ 3,383,660.35$ 3,000.00$ 1,114,284.11 $ 181,627.04$ 4,682,571.50 ---------- --=------ ------=- -==~z=-====

See notes to the financial statanents.

- 20 -

VALDOSTA STATE UNIVERSITY COMBINING STATEMENT OF CHANGES IN FUND BALANCES
CIRRENT FUNDS - UNRESTRICTED YEAR ENDED JUNE 30. 1994

EXHIBIT "F"

RESIDENT LOTTERY FOR AUXILIARY STUDENT INSTRUCTION EDUCATION ENTERPRISES ACTIVITIES

TOTAL

REVENUES ANO OTHER ADDITIONS

Unrestricted Current Fund Revenues Adjustments
Prior Years' Expenditures/Accounts Payable Prior Years' Checks Voided Other Additions Legal Settlanent

$41,598,059.94$ 299,940.00$ 7,714,874.87$ 770,326.78 $50,383,201.59

14,888.88 213.52

20,225.00

35,113.88

4.75

218.27

50,000.00

50,000.00

Total Revenues and Other Additions

$41,613,162.34$ 299,940.00$ 7,785,099.87 $ 770,331.53 $50,468,533.74

EXPENDITURES ANO OTHER DEDUCTIONS

Educational and General Expenditures Auxiliary Enterprises Expenditures Renittances to the Board of Regents of the
University Systen of Georgia Prior Year's Unrestricted Fund Balance Surplus
Adjustments Prior Years' Revenues/Accounts Receivable Prior Years' Unfunded Programs

$41,481,487.60$ 299,940.00

$ 787,816.79 $42,569,244.39

$ 6,990,128.84

6,990,128.84

32,311.47
69.39 13,993.65

4,185.14

32,311.47
4,254.53 13,993.65

Total Expenditures and other Deductions $41,527,862.11 $299,940.00$ 6,994,313.98$ 787,816.79 $49,609,932.88

TRANSFERS BETWEEN FUNDS

Nonmandatory Renewals and Replacenents Capital Projects

$ -200,000.00

$ -757,552.16

$ -757,552.16 -200,000.00

Total Transfers Between Funds

$ -200,000.00

$ -757,552.16

$ -957 ,552 .16

Net Increase/(Oecrease) for the Year FUND BALANCES JULY 1, 1993

$ -114,699.77 $ 222,682.29

0.00 $ 33,233.73$ -17,485.26 $ -98,951.30 0.00 306,821.87 119,644.89 649,149.05

FUND BALANCES JUNE 30, 1994 See notes to the financial statenents.

$ 107,982.52$

0.00 $ 340,055.60$ 102,159.63 $ 550,197.75

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

- 21 -

VALDOSTA STATE UNIVERSITY

COMBINING

STATEMENT

OAFNDCUORTRHENERT

FUNDS REVENUES. CHANGES

EXPENDITURES,

UNRESTRICTED

YEAR ENDED JUNE 30, 1994

EXHIBIT "G"

RESIDENT LOTTERY FOR AUXILIARY STUDENT INSTRUCTION EDUCATION ENTERPRISES ACTIVITIES

TOTAL

REVENUES

State Appropriations Tuition and Fees Federal Grants and Contracts Sales and Services of Educational Activities Sales and Services of Auxiliary Enterprises Other Sources

$25,936,914.00$ 299,940.00

$26,236,B54.00

14,863,121.23

$ 2,128,924.51 $ 610,229.59 17,602,275.33

103,353.01

103,353.01

99,473.76

99,473.76

5,251,514.34

5,251,514.34

595,197.94

334,436.02 160,097.19 1,089,731.15

Total Revenues EXPENDITURES

$41,598,059.94$ 299,940.00$ 7,714,874.87 $ 770,326.78 $50,383,201.59

Educational and General Instruction Academic Support Student.Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships
Auxiliary Enterprises Student Housing
Food Services Stores and Shops Intercollegiate Athletics Other Service Units

$22,301,606.15$ 299,940.00 3,858,556.39
2,224,031.34 7,760,267.98
3,695,233.74 1,641,792.00

$22,601,546.15 3,858,556.39
$ 787,816.79 3,011,848.13 7,760,267.98
3,695,233.74 1,641,792.00

$ 2,153,909.77
1,980,197.03 410,773.61
1,662,022.62 783,225.81

2,153,909.77 1,980,197.03
410,773.61 1,662,022.62
783,225.81

Total Expenditures OTHER TRANSFERS AND ADDITIONS/(DEDUCTIONS)

$41,481,487.60$ 299,940.00$ 6,990,128.84 $ 787,816.79 $49,559,373.23

Transfers for Renewals and Replacements Transfers for Capital Projects Prior Period Adjustments (Net) Legal Settlement Remittances to the Board of Regents of the
University System of Georgia Prior Year's Unrestricted Fund Balance
Surplus

$ -200,000.00 1,039.36
-32,311.47

$ -757,552.16
16,039.86$ 50,000.00

$ -757,552.16

-200,000.00

4.75

17,083.97

50,000.00

-32,311.47

Total Other Transfers and Additions/

(Deductions)

$ -231,272 .11

4.75 $ -922,779.66

Net Increase/(Decrease) in Fund Balances

$ -114,699.77 $

0.00 $ 33,233.73$ -17,485.26 $ -98,951.30

======---~= ========== ========== ======= =====~-===

See notes to the financial statements.

- 23 -

VALDOSTA STATE UNIVERSITY SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
RESIDENT INSTRUCTION YEAR ENDED JUNE 30. 1994

REVENUES
State Appropriations Other Revenues Retained

CURRENT FUNDS UNRESTRICTED RESTRICTED
$25,936,914.00 15,661,145.94 $ 7,230,321.93

$41,598,059.94 $ 7,230,321.93

EXPENDITURES
Personal Services: Education, General and Departmental Services Sponsored Operations
Operating Expenses: Education, General and Departmental Services Sponsored Operations
Capital Outlay Special Funding Initjative Research Consortium

$31,319,702.54 $ 516,801.34
8,826,814.58 6,713,520.59
1,240,012.69 94,957.79

$41,481,487.60$ 7,230,321.93

Excess of Revenues over Expenditures

$ 116,572.34 $

0.00

(1) To eliminate tuition waivers not budgeted and to reclassify current year transfers and prior year reserves budgeted as revenues.

See notes to the financial statements.

- 24 -

SCHEDULE "l"

PLANT FUNDS
RENEWALS AND UNEXPENDED REPLACEMENTS

TOTAL

ADJUSTMENTS

TOTAL

(1)

(Budget Basis)

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

$ 102,418.62$

$25,936,914.00

$ 25,936,914.00 $25,936,914.00$

0.00

0.00 22,993,886.49 $-1,586,408.43 21,407,478.06 20,134,743.00 1,272,735.06

$ 102,418.62 $

0.00 $48,930,800.49 $-1,586,408.43 $ 47,344,392.06 $46,071,657.00$ 1,272,735.06

------------- ------------- ------------- ------------- -------------- ============= -------------

$ 325,000.00$

$31,319,702.54 516,801.34

$ 31,319,702.54 $31,554,596.00$ 234,893.46

516,801.34 524,201.00

7,399.66

32,802.19

8,826,814.58 $-1,641,792.00 6,713,520.59
357,802.19 1,240,012.69
94,957.79

7,185,022.58 6,713,520.59
357,802.19 1,240,012.69
94,957.79

7,425,066.00 4,570,804.00
661,850.00 l,240,000.00
95,140.00

240,043.42 -2,142,716.59
304,047.81 -12.69 182.21

$ 325,000.00$ 32,802.19 $49,069,611.72 $-1,641,792.00 $ 47,427,819.72 $46,071,657.00 $-1,356,162.72

$ -222,581.38 $ -32,802.19 $ -138,811.23 $ 55,383.57 $ -83,427.66
============= ============= ============= ============= ==============.

$ -83,427.66
=============

- 25 -

VALDOSTA STATE UNIVERSITY SCHEDULE OF REVENUES AND EXPENDITIRES COMPARED TO BUDGET
LOTTERY FDR EDUCATION
YEAR ENDED JUNE 30. 1994

SCHEDULE "2"

R--E-V-E-N-U-E-S
State Appropr;ations

CIRRENT FUNDS PLANT FUNDS

VARIANCE -

U--N-R-E-S-T-R-IC-T-E-D--

--U-N-E-X-PE-N-D--ED---

TOTAL (Budget Basis)

BUDGET

FAVORABLE (UNFAVORABLE)

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

$ 299,940.00$ 11,300.00 $ 311,240.00 $ 311,240.00 $

0.00

------------- ------------- -------------- =======-==== -------------

EXPENDITURES

Equ;pment, Technology and Construct;on

Trust Fund

$ 299,940.00

$ 299,940.00$ 299,940.00$

0.00

D;stant Learning - Satellite Dishes

$ 11,300.00

11,300.00

11,300.00

0.00

Excess of Revenues over Expenditures

$ 299,940.00$ 11,300.00$ 311,240.00$ 311,240.00$

0.00

------------- ------------- -------------- ===:n::====s=== -------------

$

0.00 $

0.00 $

0.00

---=--=-z= =--====-=-=== =-==------

$

0.00

See notes to the financial statenents.

- 26 -

VALDOSTA STATE UNIVERSITY SCHEDULE OF OPERATIONS LOAN FUNDS
YEAR ENDED JUNE 30. 1994

SCHEDULE "3"

FUND BALANCE

FUND BALANCE

FUND

JULY 1, 1993

ADDITIONS

DEDUCTIONS JUNE 30, 1994

U.S. GOVERNMENT GRANTS REFUNDABLE

Nursing Student Loan Fund Perkins Loan Fund
INSTITUTIONAL LOANS - RESTRICTED

$ 28,173.49 $ 2,562.06 $

808.46 $ 29,927.09

1,454,674.17

51,246.33

65,054.38 1,440,866.12

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

$ 1,482,847.66 $ 53,808.39 $ 65,862.84 $ 1,470,793.21
------------- ------------- ------------- -------------

Deloach, Frances, Loan Fund

$

Dewar, Mattie Henry, Loan Fund

Folson, Albert U. and Ivy S., Memorial Fund

Harper Loan Fund

Hutchinson, Sallie Morton Archer,

Memorial Scholarship Fund

Ingram, Claude Davis, D.A.R., Loan Fund

Nevins, Charles V., Loan Fund

Other Student Loan Fund

Quitman Chapter, U.D.C. Loan Fund

Senior Honor Society Loan Fund

September 14th Loan Fund

War Bond Scholarship Loan Fund

Whitehead, Jewell D., Loan Fund

$

8,642.68$ 66,718.42
2,092.16 1,334.86

40.00 2,752.65 $

$ 171.42

8,682.68 69,299.65 2,092.16 1,334.86

17,294.99 43,973.25 22,405.06 36,108.76
1,338.14 3,704.64 8,749.95 18,737.91 5,095.63

909 .10 3,326.92
945.31 1,066.83
7.00 710.74
252.96 2,225.07
106.34
-------------

266.37 162.62 1,453.99
147 .11 878.90
-------------

17,937.72 47,300.17 23,187.75 35,721.60
1,345.14 4,415.38
8,855.80 20,084.08
5,201.97
-------------

236,196.45$ 12,342.92$ 3,080.41 $ 245,458.96

$ 1, 71 9 , 044 . 11 $ 66,151.31 $ 68,943.25$ 1,716,252.17
============= ============= ============= =============

RECONCILIATION OF STUDENT NOTES RECEIVABLE

Balance July 1, 1993 Add:
Loans to Students

$. 1,466,214.01 433,259.64

Deduct: Repayment of Loans Loans Assigned to Federal Government Loan Cancellations and Write-Offs
For Bankruptcy For Disability For Teaching Services and Other

$1,899,473.65

$ 319 ,382'.49 6,872.19

$ 3,849.00 1,903.89
27,888.48

33,641.37 359,896.05

Balance June 30, 1994

$ 1,539,577.60
=============

See notes to the financial statements.

- 27 -

VALDOSTA STATE UNIVERSITY SCHEDULE OF OPERATIONS ENDOWMENT AND SIMILAR FUNDS YEAR ENDED JUNE 30. 1994

SCHEDULE "4"

FUND
ENDOWMENT
---------
Alpha Kappa Delta Fund Barr, Robert, Fund Chapel Building Fund Christie, W. Ren, Fund Connell, Clyde E., Fund Dorminy, Elene D., Fund Dorminy, John Henry, Fund Durrenberger, Joseph A., Award Fund Gaskins, Virginia M., Fund Gulliver, Harold S., Fund Hambrick, Thera, Library Endowment Fund Holland, Jean, Fund Hopper, Annie Powe, Award Fund Hutchinson, Sallie Morton Archer,
Memorial Scholarship Fund Ingram, Claude Davis, D.A.R., Loan Fund Martin, A. B., Fund Martin, James E., Fund McDonald, Cathy H., Fund Odom, Gertrude G.. Fund Sammons, Sharalyn, Fund Sharpe, C. B., Fund Stephenson, Maxwell J., Fund Stewart, Lucy Martin, Music
Scholarship Trust fund Summerford, W. T., Fund Walker, James 0., Fund
TERM ENDOWMENT
Martin, Clare P., Fund Pierce, R. L., Fund Whitehead, Jewell D., Fund Whitehead, R. B., fund
QUASI-ENDOWMENT - RESTRICTED
Carter, Marjorie E., Award Fund

FUND BALANCE

FUND BALANCE

JULY 1, 1993 ADDITIONS DEDUCTIONS JUNE 30, 1994

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

$ 15,564.90 $

959.97 $

11,471.95

811.67

8,025.25

567.79

31,683.30

4,019.00

13,441.42

1,421.02

20,123.07

1,423.74

12,719.62

1,615.42

1,301.78

92.11

29,353.77

52,203.17

13,400.15

963 .10

50,448.88

3,569.40

2,263.08

160.10

3,107.96

219.90

0.00 $

16,524.87
12,283.62 8,593.04
35,702.30 14,862.44
21,546.81 14,335.04
1,393.89 81,556.94
14,363.25 54,018.28
2,423.18 3,327.86

33,567.20
5,176.94 4,712.33 14,000.61 24,637.84
1,464,883.06 4,674.55 22,323.27 1,885.66

10,138.71 366.29 559.83
2,166.52 1,743.20 103,706.70 1,229.09
1,579.44 133.41

43,705.91 5,543.23 5,272.16
16,167.13 26,381.04 1,568,589.76 5,903.64
23,902.71 2,019.07

30,385.69

4,199.86

34,585.55

26,099.93

1,846.65

27,946.58

10,000.00

707.52

10,707.52

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

$1,855,252.21 $ 196,403.61 $

0.00 $ 2,051,655.81

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

$ 14,170.85 $ 1,202.62 $

11,660.26

824.99

397,439.54

38,347.27

113,703.40

12,134.51

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

$ 536,974.05 $ 52,509.39 $

0.00 $

15,373.47 12,485.25
435,786.81 125,837.91

0.00 $ 589,483.44

$

1,169.20 $

982.72 $

0.00 $ 2,151.92

$2,393,395.46$ 249,895.72 $

0.00 $ 2,643,291.18

============= ============= --------=--=- ------===--=-

See notes to the financial statements.

- 29 -

VALDOSTA STATE UNIVERSITY SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
AGENCY FUNDS
YEAR ENDED JUNE 30. 1994

SCHEDULE "5" Page 1

BALANCE

BALANCE

FUND

JULY 1, 1993

RECEIPTS

DISBURSEMENTS JUNE 30, 1994

PAYROLL DEDUCTIONS F. I.C.A. Federal Income Tax State Income Tax Retirement Group Insurance Employees Credit Union Tax Deferred Annuity Savings Bonds United Fund Room and Board Garnishments Valdosta State University Foundation Valdosta State University CaP.ital Campaign Chila Support Fidelity Investments Dental Insurance Direct Deposit
EMPLOYER'S CONTRIBUTIONS F. I.C.A. Retirement Group Insurance

$

74.92 $ 1,894,233.16$ 1,894,547.54 $

162.66 2,794,455.75 2,795,143.81

1,025,432.21 1,025,705.32

1,238.64 1,583,237.34 1,585,233.02

70,756.48 1,193,918.10 1,264,487.31

1,347,170.77 1,347,170.77

2,464.48

515,903.14

518,367.62

82.50

10,620.00

10,700.00

11,346.64

11,346.64

3,153.50

3,153.50

160.83

36,400.00

37,102.52

42,644.83

42,644.83

-239.46 -525.40 -273.11 -757.04
187.27 2.50
-541.69

100.00

100.00

1,336.41

51,333.35

52,669.76

38,083.28

38,083.28

132,148.00 132,148.00

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

--3-,5-3--2-,4--4-9-.2--5

3,532,449.45
-------------

-----------0-.2--0

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

$

998.87 $1,897,243.91 $1,894,703.54$

3,759.55 2,948,294.70 2,939,860.01

144,034.28 3,286,867.79 3,412,312.67

$ 148,792.70$ 8,132,406.40$ 8,246,876.22 $

3,539.24 12,194.24 18,589.40 34,322.88

OTHER FUNDS

Air Force Aid Society

Air Force C.R.V.D.

$

Air Force Commutation Fund

Alpha Chi Honor Society

American Association of University

Professors

Association of Cooperative Education

Athletic Trainer Fund

Baseball Camp

Baseball Dugout Club

Baseball Lighting Project

Basketball Camp - Men

Basketball Camp - Women

C.C.P.

CEU Workshop

Childcare Program

Children's Service Testing Fund

Coach's Clinic

Concert Choir Tour

Connell, Clyde, Fund

Co-op Video Tape Productions

Credit Union Copying

Cross Country Boosters

Decorations and Public Occasions

Early Childhood Reading Program

Football Camp

HPE/Golf

Health Fitness Center

Honors Student Association

Inter-Fraternity Council

International Programs - Art in Britian

International Programs - Education in

Scotland

International Programs - French Epinal Tour

International Programs French Tour

International Programs - Passports

International Programs - Study in England

International Programs - Study in Mexico

$
368.24 2,429.29
15.86 79.67 17.08 477 .45 -304.31 1,873.32 543.79 350.31 1,948.57 1,026.91 16,602.40 449. 77 -16.19 -200.00 -860.98 723.80 30.00 874.22 15.59 178.98 80.00 770.90 171. 43 740.50 23,821.18
624.50 -1,230.40 3,892.75

6,843.25$ 390.04
9,998.00 300.00 2.08 100.00 478.16
3,325.00 3,737.40
337.75 2,768.00 3,907.94 98,393.50
200.00 1,510.98
-108~00 188.81
8,050.00 32.00
7,137.52 125.00 386.00
6,203.00 1,939.00 6,937.00
944.00 5,657.18 3,220.09

6,843.25 573.24 $
9,852.24 90.80 81. 75 87.98 457.54 852.07
5,016.66 353.80
1,856.20 2,768.00 2,513.95 135,968.23
29.31 -16.19
37.00 188.81 30.00 874.22
15.59 8,179.54 3,115.03
60.00 474.22
35,643.55 1,787.11 6,868.52 896.50 9,143.90

185.04 2,575.05
225.06 29.10 498.07 2,168.62 594.06 543.79 334.26 92.37 2,420.90 -20,972.33 420.46 650.00 578.80
49.44 112. 00 4,793.39
65.00 83.21 740.50 -5,619.37 151.89 68.48 672.00 -4,717.12 7,112.84

See notes to the financial statements.

- 30 -

VALDOSTA STATE UNIVERSITY SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
AGENCY FUNDS YEAR ENDED JUNE 30. 1994

SCHEDULE "5" Page 2

BALANCE

BALANCE

FUND

J-U-L-Y---1-,--1-9-9-3- ---R-E-C-E-IP-T-S---- -D-IS-B-U-R-S-E-M--E-N-T-S J-U-N-E---3-0-,--1-9-9-4

O--TH-E-R---F-U-N-D-S

International Studies Room and Food Jekyll Island Theatre Kappa Alpha Order Lady Blazer's Boosters Club Language Arts Workshop

$

1,976.80

$

1,976.80

4,289.00 $ 68,933.92 $ 89,831.09

-16,608.17

29,876.63

25,680.44

26,269.22

29,287.85

731.22

731.22

3,087.56

2,283.69

803.87

Marching Band Boosters Microcomputer Supfort Center Middle School Wor shop Miscellaneous Student Fees - Inactive Miscellaneous Student Receivables Office of Education - Cash Panhellenic Council Paramore, Jane, Memorial Fund

2,070.06 12,122.55
1,972.56 2,136.00 -2,775.50
183.26 6,205.45

3,680.00 2,700.00 2,536.27 18,375.74 4,860,257.00
25.00

9,570.41 1,866.39 1,696.96 21,085.74 4,860,257.00
45.19

2,070.06 6,232.14 2,806.17 2,975.31 -5,485.50
138.07 6,230.45

Pell Grant Repayment Phi Delta Kappa Pi Gamma Mu Ps~chology Clinic Pu lie Service Workshof Refund Clearini Accoun Reiional Educa ion Workshop Re ired Employee's Group Insurance

20,743.32 235.43 565.51
-1,455.10 14,234.35 1,553.99 -4,949.14

1,807.90 1,510.76 1,455.10 9,322.78 188,390.73 180,563.01

27.65 1,168.08 17,540.23 188,275.23 1,553.99 186,309.71

22,551.22 207.78 908.19
6,016.90 115.50
-10,695.84

R.O.T.C. School of Education

7,839.15

13,095.00 11,830.25

13,095.00 5,593.23

14,076.17

Scholarships

Regents' Op~ortunity Grants

Re~ents' Sc olarship Fund Ot er Scholarships (List on

File)

Secondary Education

150.40 19,752.52 1,978.86

12,500.00 7,700.00
2,403,092.40

12,501.00 7,450.00
2,361,651.19

149.40 250.00 61,193.73 1,978.86

Secondary Education Conference and Workshop

5,554.60

4,252.29

1,302.31

SEOG Initial Payments Society of International Students

2,105.15

803.48

521. 51

2,105.15 281.97

Sociology - Criminal Justice Program

390.67

122.00

150.15

362.52

South Georgia Math Collaborative

888.00

1,068.37

-180.37

Southern Conference on Language Teaching

7.92

10.00

1,052.29

-1,034.37

Special Account - Division of Nursing

2,632.76

15,289.00

16,404.92

1,516.84

Sfeech and Hearini Clinic SStaufdfeonrtd BRanefareeepno s i t

3,785.41 3,493.42

1,153.00 5,057.28
731. 08

1,842.00 5,057.28 2,098.91

3,096.41 2,125.59

Student Development and Placement

1,542.91

2,560.40

1,975.64

2,127.67

Student Develorment and Testing

467.65

9,629.95

10,584.77

-487.17

Student Nurse und

-564.00

9,419.90

8,855.90

Summer Math Clinic

2,251.54

2.64

2,248.90

Summer Reading Clinic

1,469.07

1,469.07

Sutherland

0.01

0.01

Tau Kappa Epsilon

117. 28

116. 78

0.50

Teachin~ Africa I & II Trade A justment Act

122.54

45,262.59

51. 74 45,262.59

70.80

Tropical Studies - Belize University Banner

2,900.00

237.45 100.00

3,000.00

237.45

University Celebration

VSU Celebration Banner

VSU For Kids

VSU Gospel Choir

VSU Rec~cling Program Who's Wo in Modern Foreign

Language

500.00 -10,237.78
446.37 142.45 2,320.22
------6-,2--9-4-.3--3

883.00 10,286.14
80.10
-------------

1,383.00 48.36 118. 50
442.27
------1-,6--2-4-.8--0

446.37 104.05 1,877.95
------4-,6-6--9-.5--3

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

$----4-2-3-,1--5-9-.7-7- $-3-0-,-4-3=9=,6-8-0--.9-7- $-3-0--,6--7-8=,-4=3-3=.=45$----=18-=4,=4=07-=.2-9-

See notes to the financial statements.

- 31 -

VALDOSTA STATE UNIVERSITY CASH AND CASH EQUIVALENTS
JUNE 30, 1994

SCHEDULE "6"

NONINTEREST BEARING ACCOUNTS
Barnett Bank, Valdosta, Georgia
First State Bank and Trust Company, Valdosta, Georgia
INTEREST BEARING ACCOUNTS
NationsBank of Georgia, Valdosta, Georgia
N.O.W. Account (Variable)
Trust Company Bank, Atlanta, Georgia
Cash Management Pools Board of Regents Short-Term Investment Fund Board of Regents Total Return Fund
Holding Account Cash Mutual Funds
OTHER
Cash on Hand Petty Cash

$ 8,373.90 30,000.00$ 38,373.90

$ 3,647,111.65

$ 69,164.80 3,292,877.24
0.42 7,271.00

3,369,313.46

7,016,425.11

291,435.17 $ 7,346,234.18

See notes to the financial statements.

- 32 -

VALDOSTA STATE UNIVERSITY ACCOUNTS RECEIVABLE
JUNE 30. 1994

SCHEDULE "7"

CURRENT FUNDS ------------------------UNRESTRICTED RESTRICTED

LOAN FUNDS

PLANT FUNDS ----------UNEXPENDED

AGENCY
FUNDS

TOTAL

Federal Grants and Contracts Research and Instruction Student Aid

$ 346,346.63 415,083.53

$ 346,346.63 415,083.53

State Grants and Contracts Research and Instruction

164,243.32

164,243.32

Private Gifts, Grants, and Contracts Research and Instruction Student Aid

57,193.88 15,575.12

57,193.88 15,575.12

Other Georgia State Financing and Investment Comnission Returned Checks Student Accounts Student Notes Vendor Credit Memos Other

$ 36,764.88 454,393.29
78,094.14 110,159.24

$ 64,547.08

$1,539,577.60

11,900.00$ 2,336.90

64,547.08 36,764.88 454,393.29 1,539,577.60 78,094.14 124,396.14

$ 679,411.55$ 998,442.48$ 1,539,577.60$ 76,447.08$ 2,336.90$ 3,296,215.61
============ ======:== =========== ========= ========= ============

See notes to the financial statements.

- 33 -

VALDOSTA STATE UNIVERSITY CHANGES IN INVESTMENT IN PLANT
YEAR ENDED JUNE 30. 1994

Land Buildings Improvements Other Than Buildings Equipment Library Books and Collections
SUMMARY OF INVESTMENT University Capital Leases

CURRENT FUNDS BALANCE ---------------------------JULY 1, 1993 UNRESTRICTED. RESTRICTED

$1,589,514.21

44,195,340.99

2,408,557.33

9,260,095.15$ 2,147,058.39 $ 201,037.50

7,731,456.47

573,190.05

$65,184,964.15$ 2,720,248.44$ 201,037.50

$64,898,579.18$ 2,720,248.44$ 201,037.50 286,384.97
$65,184,964.15$ 2,720,248.44 $ 201,037.50
----=----=--- ----------=-- ----=-==-===-

See notes to the financial statements.

- 34 -

SCHEDULE "8"

ADDITIONS

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

PLANT FUNDS

GEORGIA STATE

FINANCING AND

RENEWALS AND INVESTMENT

CAPITAL

PRIVATE

UNEXPENDED REPLACEMENTS COMMISSION

LEASES

GIFTS

DEDUCTIONS
DISPOSALS/ DELETIONS/ ADJUSTMENTS

BALANCE JUNE 30, 1994

$ 325,000.00 11,300.00$

$ 290,750.92

21,836.53

$

91,194.00$

364,299.24 $ 2,820.00

$1,589,514.21 44,811,091.91 2,408,557.33
361,907.97 11,734,912.84 27,560.00 8,279,906.52

$ 336,300.00$ 21,836.53$ 290,750.92 $ 91,194.00$ 367,119.24$ 389,467.97 $68,823,982.81
============= ============= ============= ============= ============= ============= =============

$ 336,300.00$

21,836.53$ 290,750.92 $

$ 367,119.24 $ 201,903.70 $68,633,968.11

91,194.00

187,564.27 190,014.70

$ 336,300.00$ 21,836.53 $ 290,750.92 $ 91,194.00$ 367,119.24$ 389,467.97 $68,823,982.81
============= ============= ============= ============= ============= ============= =======z=====

- 35 -

VALDOSTA STATE UNIVERSITY SCHEDULE OF FUND BALANCES CURRENT FUNDS AND PLANT FUNDS
JUNE 30, 1994

RESIDENT INSTRUCTION

CURRENT FUNDS
UNRESTRICTED
LOTTERY FOR AUXILIARY EDUCATION ENTERPRISES

STUDENT ACTIVITIES

NET INVESTMENT IN PLANT

Investment in Plant Facilities

RESTRICTED

Designated for Subsequent Years' Expenditures

UNRESTRICTED

Designated For Bus Replacement Reserve For Intercollegiate Athletics For Inventory Reserve For Renewals and Replacements Reserve For Subsequent Years' Expenditures For Uncollectible Accounts
Undesignated Surplus Regular Lottery for Education

$ 75,000.00
10,370.82
22,611.70
$

$ -33,179.47 372,220.18 $ 102,159.63 1,014.89
o: 00

$ 107,982.52$

0.00 $ 340,055.60$ 102,159.63

See notes to the financial statements.

$ 107,982.52 $

0.00 $ 340,055.60$ 102,159.63

============= ============= ============= ----=----===-

- 36 -

SCHEDULE "9"

RESTRICTED

PLANT FUNDS

UNEXPENDED

REGULAR

LOTTERY FOR RENEWALS AND EDUCATION REPLACEMENTS

INVESTMENT IN PLANT

TOTAL

$68,633,968.11 $68,633,968.11

$ 742,884.45

$ 742,884.45

$ 90,322.88 1,171,133.99

$ 90,322.88 -33,179.47 447,220.18
1,171,133.99 102,159.63 11,385.71

$

442.93

$

$

442.93 $

0.00 0.00 $ 1,261,456.87

23,054.63 0.00
$ 1,812,097.55

$ 742,884.45$

442.93 $

0.00 $ 1,261,456.87 $68,633,968.11 $71,188,950.11

============= ============= ============= ======-====-= =---==---===- =============

- 37 -

VALDOSTA STATE UNIVERSITY SCHEDULE OF REVENUES CURRENT FUNDS
YEAR ENDED JUNE 30. 1994

State Appropriations Allotments from the Board of Regents of the University System of Georgia Regular Special Funding Initiative Research Consortium Lottery Proceeds
Other Revenues Retained Tuition and Fees Matriculation Other Federal Grants and Contracts Resea r.ch and Instruction Student Aid Contract Overhead State Grants and Contracts Research and Instruction Student Aid Private Gifts, Grants, and Contracts Research and Instruction Student Aid Endowment Income Research and Instruction Student Aid Sales and Services of Educational Activities Sales and Services of Auxiliary Enterprises Other Sources Athletic Sales Cash Over-Short Donations Extension and Public Service Interest Earned Library Fines Parking Fines Rents Salvage Sales Other

See notes to the financial statements.

- 38 -

RESIDENT

LOTTERY FOR

INSTRUCTION EDUCATION

$24,601,774.00
1,240,000.00 95,140.00
$

299,940.00

$25,936,914.00$ 299,940.00

$11,615,733.14 3,247,388.09

103,353.01

99,473.76
242.00 88,141.86 13,616.89 339,036.15 12,265.33
7,147.03 134,748.68 $15,661,145.94
$41,598,059.94$ 299,940.00

SCHEDULE "10"

UNRESTRICTED AUXILIARY ENTERPRISES

STUDENT ACTIVITIES

TOTAL

RESTRICTED RESIDENT INSTRUCTION

TOTAL

$24,601,774.00 1,240,000.00 95,140.00 299,940.00
$26,236,854.00

$24,601,774.00 1,240,000.00 95,140.00 299,940.00
$26,236,854.00

$11,615,733.14 $ 2,128,924.51 $ 610,229.59 5,986,542.19

$11,615,733.14 5,986,542.19

$1,060,729.89 1,060,729.89

4,467,949.49 4,467,949.49

103,353.01

103,353.01

715,111.43 516,547.50

715,111.43 516,547.50

266,708.42 91,783.60

266,708.42 91,783.60

5,251,514.34

99,473.76 5,251,514.34

25,684.60 85,807.00

25,684.60 85,807.00
99,473.76
5,251,514.34

312,182.48 -122.74 6,049.00
16,300.64
26.64
-------------

1,142.84 158,954.35
-------------

312,182.48 119.26
7,191.84 88,141.86 16,300.64 13,616.89 339,036.15 12,265.33
7,147.03 293,729.67
-------------

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

312,182.48
119. 26 7,191.84 88,141.86 16,300.64 13,616.89 339,036.15 12,265.33
7,147:03
293,729.67
-------------

$ 7,714,874.87 $ 770,326.78 $24,146,347.59 $ 7,230,321.93 $31,376,669.52

$ 7,714,874.87 $ 770,326.78 $50,383,201.59 $ 7,230,321.93 $57,613,523.52
============= ============= ============= ============= =============

- 39 -

VALDOSTA STATE UNIVERSITY SCHEDULE OF EXPENDITURES BY OBJECT
CURRENT FUNDS YEAR ENDED JUNE 30, 1994

PERSONAL SERVICES
Salaries and Wages Employer's Contributions for:
F. I .C.A. Group Insurance Retirement Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
OPERATING EXPENSES
Travel Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Ut i1 i ti es Rents (Other than Real Estate) Insurance and Bonding Tuition and Scholarships
College Work-Study Program Scholarships, Fellowships, Prizes,
Awards and Other Grants to Counties, Cities
and Civil Divisions Other Operating Expenses Publications and Printing Equipment Purchases
Non-Inventory Computer Charges Software Real Estate Rentals Telecommunications Per Diem, Fees and Contracts
Per Diem and Fees Contracts Equipment Purchases Motor Vehicle Purchases Lease/Purchase of Equipment Inventory
OTHER
SPECIAL FUNDING INITIATIVE Personal Services Salaries and Wages Employer's Contributions for:
F. LC.A.
Group Insurance Retirement
See notes to the financial statements.

- 40 -

RESIDENT

LOTTERY FOR

INSTRUCTION EDUCATION

$23,936,238.03
1,636,457.61 2,685,239.38 2,541,204.52
127,165.00 15,328.00
378,070.00
$31,319,702.54

$ 439,360.41 64,140.79
1,221,551.97 337,796.92 845,651.68 57,901.38 45,053.72
1,641,792.00 2,000.00
452,302.22 99,511.97 370,707.75 8,487.12 99,131.26 320,316.61 570,075.60 247,285.28 93,623.64 37,698.23 256,648.94 1,615,777.09
$ 8,826,814.58

$ 345,986.36
25,413.61 25,993.39 37,508.37
-------------
$ 434,901.73

SCHEDULE "11"
Page 1

UNRESTRICTED AUXILIARY ENTERPRISES

STUDENT ACTIVITIES

TOTAL

RESTRICTED RESIDENT INSTRUCTION

TOTAL

$3,343,321.83$
202,089.44 514,627.62 311,329.01

203,410.27 $27,482,970.13 $

8,804.09
17,635.60 14,278.62

1,847,351.14 3,217,502.60 2,866,812.15
127,165.00 15,328.00
378,070.00

412,912.53 $27,895,882.66

24,307.85 35,927.02 43,653.94

1,871,658.99 3,253,429.62 2,910,466.09
127,165.00 15,328.00
378,070.00

$4,371,367.90$ 244,128.58 $35,935,199.02$ 516,801.34 $36,452,000.36

$ 55,311.00 $ 7,624.39 $ 502,295.80 $ 36,587.29 $ 538,883.09

36,327.32

100,468.11

635.25

101,103.36

575,883.34

130,487.32 1,927,922.63

529,538.07 2,457,460.70

77,825.08

889.33

416,511.33

2,201.00

418,712.33

475,679.09

1,321,330.77

1,321,330.77

45,145.23

26,079.23

129,125.84

23,806.85

152,932.69

71,000.03

100.00

116,153.75

116,153.75

376,046.86

376,046.86

525,130.73

2,166,922.73 5,162,087.59 7,329,010.32

387,047.08 54,522.57

103,583.99 33,582.98

2,000.00
942,933.29 187,617.52

2,000.00

121,6.62.07 1,064,595.36

23,806.01

211,423.53

16,582.25
3,706.75 8,274.89 80,225.48

6,030.65 1,167.25 11,861.24

393,320.65
8,487.12 104,005.26 328,591.50 662,162.32

26,979.67 47,198.50
4,582.25

420,300.32
8,487.12 151,203.76
328,591.50 666,744.57

93,384.41 63,321.42

206,802.74

547,472.43 156,945.06

157,351.68

704,824.11 156,945.06

33,510.29

71,208.52

71,208.52

11,705.62

268,354.56

268,354.56

4,178.36

15,479.09 1,635,434.54

201,037.50 1,836,472.04

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

$ 2,.618,760.94 $ 543,688.21 $11,989,263.73 $ 6,713,520.59 $18,702,784.32
------------- ------------- ------------- ------------- -------------

$ 345,986.36
25,413.61 25,993.39 37,508.37
-------------
$ 434,901.73

$ 345,986.36
25,413.61 25,993.39 37,508.37
-------------
$ 434,901.73

- 41 -

VALDOSTA STATE UNIVERSITY SCHEDULE OF EXPENDITURES BY OBJECT
CURRENT FUNDS YEAR ENDED JUNE 30, 1994

OTHER
SPECIAL FUNDING INITIATIVE Other Costs Travel Supplies and Materials Repairs and Maintenance Rents (Other than Real Estate) Other Operating Expenses Publications and Printing Equipment Purchases Non-Inventory Software Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Equipment Purchases Motor Vehicle Purchases Inventory
EQUIPMENT, TECHNOLOGY AND CONSTRUCTION TRUST FUND Other Costs Software Equipment Purchases Inventory
RESEARCH CONSORTIUM Personal Services Salaries and Wages Employer's Contributions for: F. I.C.A. Group Insurance Retirement
Other Costs Travel Supplies and Materials Rents (Other than Real Estate) Other Operating Expenses Publications and Printing Equipment Purchases Non-Inventory Software Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Equipment Purchases Inventory

See notes to the financial statements.

- 42 -

RESIDENT

LOTTERY FOR

INSTRUCTION EDUCATION

$

436.02

62,717.68

230,248.77

352.43

155.00

55.88

79,801.06 28,403.00
410.90

2,040.00

20,605.00 379,885.22

$1,240,012.69

$ 2,264.60 297,675.40
$ 299,940.00

$ 11,850.55
140.24 112.92 267.14
-------------
$ 12,370.85
717.34 4,254.26
210.00 115.00 202.98
27,455.26 1,960.00
500.00
86.90
47,085.20
-------------
$ 94,957.79
-------------
$41,481,487.60 $ 299,940.00
============= =============

UNRESTRICTED
AUXILIARY ENTERPRISES

STUDENT ACTIVITIES

SCHEDULE "11" Page 2

TOTAL

RESTRICTED
RESIDENT INSTRUCTION

TOTAL

$

436.02

62,717.68

230,248.77

352.43

155.00

55.88

79,801.06 28,403.00
410.90

2,040.00

20,605.00 379,885.22
-------------

$ 1,240,012.69
-------------

$

436.02

62,717.68

230,248.77

352.43

155.00

55.88

79,801.06 28,403.00
410.90

2,040.00

20,605.00 379,885.22
-------------
$ 1,240,012.69
-------------

$ 2,264.60
297,675.40
-------------
$ 299,940.00
-------------

$ 2,264.60
297,675.40
-------------
$ 299,940.00
-------------

$ 11,850.55
140.24 112. 92 267.14
-------------
$ 12,370.85
717.34 4,254.26
210.00 115. 00 202.98
27,455.26 1,960.00
500.00
86.90
47,085.20
-------------
$ 94,957.79
-------------

$ 11,850.55
140.24 112.92 267.14
-------------
$ 12,370.85
717.34 4,254.26
210.00 115. 00 202.98
27,455.26 1,960.00
500.00
86.90
47,085.20
-------------
$ 94,957.79
-------------

$ 6,990,128.84 $ 787,816.79 $49,559,373.23 $ 7,230,321.93 $56,789,695.16
============= ============= ============= ============= =============

- 43 -

VALDOSTA STATE UNIVERSITY SCHEDULE OF EXPENDITURES BY OBJECT
PLANT FUNDS
YEAR ENDED JUNE 30, 1994

SCHEDULE "12"

CAP ITAL OUTLAY
Equipment Purchases Non-Inventory
Per Diem, Fees and Contracts Contracts
Equipment Purchases Inventory
OTHER
DISTANT LEARNING - SATELLITE DISHES Other Costs Equipment Purchases Inventory

UNEXPENDED

RENEWALS AND

---------------------------- REPLACEMENTS

LOTTERY FOR -------------

REGULAR

EDUCATION

AUXILIARY

TOTAL

$ 325,000.00
-------------
$ 325,000.00
-------------

$ 10,965.66 $ 10,965.66

325,000.00

21,836.53

21,836.53

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

$ 32,802.19 $ 357,802.19
------------- -------------

$ 11,300.00

$ 11,300.00

$ 325,000.00$ 11,300.00 $ 32,802.19 $ 369,102.19

See notes to the financial statements.

- 44 -

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

VALDOSTA STATE UNIVERSITY
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 ofthe findings disclosed in the audit report for the year ended June 30, 1993, is summarized below:

Audit Control Number

Status ofFinding

551-92-07 551-93-01 551-93-02 551-93-03 551-93-04 551-93-05 551-93-06

Corrective Action Implemented See Audit Control Number 551-94-01 See Audit Control Number 551-94-02 See Audit Control Number 551-94-03 See Audit Control Number 551-94-04 See Audit Control Number 551-94-05 Corrective Action Implemented

PRIOR YEAR/CURRENT YEAR

ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Audit Control Number 551-94-01

The audit report for the year ended June 30, 1993, disclosed that Valdosta State University did not provide for adequate separation of duties in the performance of accounting functions and related procedures. In the year under review, the University made some improvements regarding separation ofemployee duties, but still did not achieve an adequate degree of internal control for the control category Expenditures/Liabilities/ Disbursements.

Separation of duties involving key accounting functions is the basis for achieving an adequate system of internal control. Inadequate separation of duties creates an environment which does not provide reasonable assurance that accounting data and financial statements are accurate and complete.

The University should review the accounting procedures in place, design procedures which would enhance segregation of duties relative to the above control category, and implement those procedures to strengthen the internal controls over the accounting function.

Memorandum Only Federal Grantor Agencies Affected:
National Science Foundation U.S. Department ofEducation U. S. Department ofEnergy U. S. Department ofHealth and Human Services

VALDOSTA STATE UNIVERSITY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR/CURRENT YEAR
REVENUE/RECEIVABLES/RECEIPTS Tuition and Fees Financial Statements Audit Control Number 551-94-02
The audit reports for the years ended June 30, 1989, through June 30,1993, disclosed that Valdosta State University routinely allowed the reinstatement ofstudents who paid their fees subsequent to the final payment deadline. For the year under review, our examination of summer quarter 1994 registration noted that of 170 students whose registration had been cancelled for nonpayment offees, 79 had been reinstated as ofthe date ofour audit. This practice is in violation ofSection 704 ofthe Board ofRegents' Policy Manual which states, in part, that payment offees may not be deferred and all fees are due and payable upon registration.
The University should discontinue the practice ofreinstating the registration of students who pay fees past the established fee payment deadline.
ADMINISTRATIVE REQUIREMENTS Inadequate Equipment Inventory Records Federal Financial Assistance Audit Control Number 551-94-03
The audit reports for the years ended June 30, 1988, through June 30, 1993, disclosed that Valdosta State University's property records were not maintained in accordance with the provisions of Section 30 of0MB Circular A-110. During this period, property records presented for examination did not include the following data elements required by Federal regulations:
(1) The source ofthe property, including the grant or agreement number.
(2) Whether title to the property vests with the University or the Federal government.
(3) The percent ofFederal participation in the cost of the project or program for which the property was purchased.
(4) The use and condition ofthe property.
For the year under review, these deficiencies in the University's property records continued to exist.
Procedures should be implemented to ensure that property records are maintained in accordance with property management standards as required by 0MB Circular A-110. The University has contacted the U.S. Department of Health and Human Services for resolution of this finding~ however, no response has been received.

VALDOSTA STATE UNIVERSITY
SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994

PRIOR YEAR/CURRENT YEAR

ADMINISTRATIVE REQUIREMENTS Inadequate Equipment Inventory Records Federal Financial Assistance Audit Control Number 551-94-03

Memorandum Only Federal Grantor Agencies Affected:
National Science Foundation U.S. Department ofEducation U. S. Department ofEnergy U. S. Department ofHealth and Human Services

FEDERAL FINANCIAL REPORTS Federal Cash Transaction Report Not Reconciled Federal Financial Assistance Audit Control Number 551-94-04

The audit reports for the years ended June 30, 1990, through June 30, 1993, disclosed that the expenditures reported on Valdosta State University's final monthly fiscal years' 1990, 1991, 1992, and 1993 Federal Cash Transaction Report for the U. S. Department ofEducation could not be reconciled to accounting records.

For the year under review, expenditures reported on the University's final monthly fiscal year 1994 Federal Cash Transactions Report (Form PMS 272-A) to the U. S. Department of Education again could not be reconciled to the accounting records as indicated below:

Report Date

Net Cash Expenditures Reported on Form PMS 272-A

Net Cash Expenditures per Accounting
Records

Difference

June 30, 1994

$ 2,322 ZJS 34 $ 2,432,228.21 $ -I IQ,252.81

The University should implement procedures to ensure that expenditures are reconciled to the University's formal accounting records. The University should contact the U. S. Department of Education regarding resolution ofthese unreconciled differences.

Memorandum Only Federal Financial Assistance Programs Affected and CFDA Number:
84. 007 Supplemental Educational Opportunity Grants 84.026 Media and Captioning For Individuals with Disabilities 84.033 Federal Work-Study Program 84.063 Pell Grant Program

VALDOSTA STATE UNIVERSITY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED ruNE 30, 1994
PRIOR YEAR/CURRENT YEAR
SPECIAL TESTS AND PROVISIONS Inadequate Calculations ofRepayments Federal Financial Assistance Questioned Cost: $1,019.00 Audit Control Number 551-94-05
The audit reports for the years ended June 30, 1992, and June 30, 1993, noted two deficiencies in the Federal requirements relative to the University's repayment procedures. During the year under review, the University corrected one deficiency by implementing procedures which include Perkins Loan Funds in the calculation of repayments due from students withdrawing from school within the refund period. However, the second deficiency, which consisted ofrepayments totaling $1,019.00 that were not requested from three students due to improper application ofthe University's repayment policy, had not been resolved as of the date ofthis audit.
The University should secure repayments from the three students identified above for refund to appropriate grantors.
Memorandum Only Federal Grantor Agency Affected:
U.S. Department ofEducation
CURRENT YEAR
BUDGET PREPARATION/EXECUTION Overexpenditure ofBudget - Resident Instruction Financial Statements
The total approved budget for Resident Instruction of Valdosta State University provided for expenditures totaling $46,071,657.00. A comparison ofanticipated revenues and budgeted expenditures to actual revenues and expenditures is summarized on Schedule "l" of this report. This comparison indicates that actual expenditures for Operating Expenses of Sponsored Operations and for Special Funding Initiative exceeded budgeted expenditures by $2,142,716.59 and $12.69, respectively.
EMPLOYEE COMPENSATION Improper Payroll Deductions Financial Statements Audit Control Number 551-94-06
For the year under review, our examination revealed numerous handdrawn payroll checks for which Valdosta State University did not properly withhold payroll deductions. Also, employer matching costs were not properly calculated or disbursed in a timely manner.

VALDOSTA STATE UNIVERSITY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR
EMPLOYEE COMPENSATION Improper Payroll Deductions Financial Statements Audit Control Number 551-94-06
The University should recalculate employee withholdings and employer matching costs for all handdrawn payroll checks written during fiscal year 1994. Also, affected reports and forms previously filed should be amended and resubmitted by the University.
Procedures should be implemented by the University to ensure that proper calculations of payroll withholdings and fringe benefits are made in the future.
FUND BALANCE Deficit Bal.ance in Intercollegiate Athletics Financial Statements Audit Control Number 551-94-07
At June 30, 1994, Intercollegiate Athletics had a deficit fund balance of $33,179.47. This deficit has a direct relation to the lack of sufficient funds to meet obligations on a current basis. The Board ofRegent's Policy Manual, Section 702.02 states that auxiliary enterprises "shall be placed on a self-supporting basis, and the State will not make an appropriation to finance its operation."
The University should budget and provide for adequate funds to cover this deficit.
GENERAL LEDGER Inadequate Accounting Procedures Financial Statements Audit Control Number 551-94-08
For the year under review, Valdosta State University's accounting procedures were found to be inadequate. Deficiencies noted are summarized as follows:
(1) Bank reconciliations as presented for examination were found to be inadequate as follows:
(a) In nine months during the fiscal year, unlocated differences were noted on reconciliations of the operating account.
(b) Reconciling items requiring adjusting entries in the accounting system were not made on a timely basis.
(2) Financial statements, as presented for examination, were not in agreement with the accounting records, and these differences were not readily identified.

VALDOSTA STATE UNIVERSITY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR
GENERAL LEDGER Inadequate Accounting Procedures Financial Statements Audit Control Number 551-94-08
(3) General ledger adjustments given to the University, as a result ofthe fiscal year 1993 audit, were not posted by the University.
(4) Accounts receivable recorded on the general ledger for Restricted Funds totaled $1,015,875.30. An examination ofunderlying documentation ofthese receivables revealed that $17,432.82 was not valid due to grants having expired. At June 30, 1994, a remaining accounts receivable balance of $998,442.48 existed ofwhich most had not been requested from grantors as ofthe completion of audit fieldwork.
(5) Subsidiary student deposits records for the Auxiliary Enterprises fund did not reconcile to the general ledger control accounts.
Procedures should be implemented by the University to ensure that the deficiencies identified above are corrected.
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Reconciliation of General Ledger Activity to Investment in Plant and
Equipment Inventory Financial Statements Audit Control Number 551-94-09
For the year under review, it was noted that Valdosta State University failed to reconcile general ledger control accounts to detailed subsidiary records. At June 30, 1994, the following deficiencies were identified:
(I) The changes which occurred during the year ended June 30, 1994, in the general ledger asset account balance for equipment ofInvestment in Plant could not be reconciled with the underlying accounting records normally associated with changes in this asset account. An unidentified variance of$220,637.99 existed at June 30, 1994.
(2) An unlocated difference of$24,474.25 existed between the general ledger and subsidiary equipment records.
The University should take steps to identify the differences noted above and procedures should be established to reconcile general ledger control accounts to subsidiary records.

VALDOSTA STATE UNIVERSITY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR
SPECIAL TESTS AND PROVISIONS Improper Distribution ofRefunds Federal Financial Assistance Pell Grant Program (CFDA 84.063) Questioned Cost: $461.20 Audit Control Number 551-94-10
During the year under review, an examination of twelve financial aid refunds made by Valdosta State University revealed that six were creditedin a manner inconsistent with the order ofdistribution as prescribed in Section 485 ofthe Higher Education Amendment of 1992. Also, we noted on one of the twelve examined, $461.20 was refunded in error to a student which should have been returned to the Pell Grant Program.
The University should secure repayment of $461.20 from the student identified above for refund to the U. S. Department ofEducation.
Procedures should be implemented by the University to ensure that calculations of refunds are consistent with the order of distribution as prescribed in Section 485 ofthe Higher Education Amendment of 1992.