Audit report, state of Georgia, Valdosta State University, Valdosta, Georgia, year ended June 30, 1995

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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, 1995

VALDOSTA STATE UNNERSITY - 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

22

F COMBINING STATEMENT OF CHANGES IN FUND BALANCES

CURRENT FUNDS - UNRESTRICTED

23

G COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,

AND OTHER CHANGES

UNRESTRICTED

25

SCHEDULES

SCHEDULES OF REVENUES AND EXPENDITURES COMPARED TO BUDGET

1

RESIDENT INSTRUCTION

26

2

LOTTERY FOR EDUCATION

28

SCHEDULES OF OPERATIONS

3

LOAN FUNDS

29

4

ENDOWMENT AND SIMILAR FUNDS

30

5 SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

AGENCY FUNDS

31

6 CASH AND CASH EQUIVALENTS

34

7 ACCOUNTS RECEIVABLE

35

8 CHANGES IN INVESTMENT IN PLANT

36

9 SCHEDULE OF FUND BALANCES

CURRENTFUNDSANDPLANTFUNDS

38

VALDOSTA STATE UNIVERSITY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

SUPPLEMENTARY INFORMATION

SCHEDULES

10 SCHEDULE OF REVENUES

CURRENT FUNDS

40

SCHEDULES OF EXPENDITURES BY OBJECT

11

CURRENT FUNDS

42

12

PLANT FUNDS

46

13 RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL

47

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
December 7, 1995

Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members ofthe Board ofRegents ofthe 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 of and for the year ended June 30, 1995. These financial statements are the responsibility of the 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 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 as 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.

95ARL-62

As discussed 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. Ifcompensated absences were reported, liabilities would be increased and fund balance would be
decreased by $1,703,457.09 as of June 30, 1995, and the net change in fund balance for the year ended June 30, 1995, would be decreased by $246,117.09.
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, 1995, 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 of forming an opinion on the financial statements taken as a whole. The accompanying supplementary information (Exhibits E through G and Schedules I through 13) 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 of the 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,
~~
Claude L. Vickers State Auditor
CLV:jy 95ARL-62

FINANCIAL STATEMENTS - 1-

VALDOSTA STATE UNIVERSITY COMBINED BALANCE SHEET ALL FUND GROUPS JUNE 30, 1995

ASSETS
Cash and Cash Equivalents Accounts Receivable Inventories Prepaid Items Due from Other Fund Groups Investment in Plant
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities Accounts Payable Student Deposits Deferred Revenue Tuition and Fees Deposits Held in Custody for Others Due to Other Fund Groups 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
Total Liabilities and Fund Balances

CURRENT FUNDS

UNRESTRICTED

RESTRICTED

LOAN FUNDS

$

2,726,518.09 $

839,528.53 $

416,503.50

765,596.86

1,148,704.02

1,300,029.61

702,469.93

72,656.49

1,085,437.06

$

5,352,678.43 $

1,988,232.55 $ ===1=,7=16=,5=33=.1=1

$

1,175,827.99 $

13,550.67

25,840.54

2,961,474.29

1,085,437.06

$

4,150,852.95 $

1, 111,2TT.60

$

1,462,249.63

254,283.48

$

$

1,201,825.48

$

1,201,825.48 $

876,954.95 876,954.95 $

1,716,533.11

$

5,352,678.43 $

1,988,232.55 $ ===1=,7=16=,5=33=.1=1

The notes to the financial statements are an integral part of this statement. -2-

EXHIBIT"A"

ENDOWMENT AND SIMILAR
FUNDS

UNEXPENDED

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

AGENCY FUNDS

TOTAL (Memorandum
Only)

$

2,719,038.53 $

433,505.93 $

1,553,866.70

$

164,586.77

______ $

75,599,250.66

310,958.67 $ 3,542.35

8,999,919.95 3,382,459.61
702,469.93 72,656.49
1,085,437.06 75,599,250.66

$

2,719,038.53 $

598,092.70 $

1,553,866.70 $ 75,599,250.66 $

314,501.02 $ 89,842,193.70

$

$

$

2,111,422.84

605,430.32

2,185.37

$

$

2,719,038.53 $

640,022.75 640,022.75

$

$

82,665.16

$

82,665.16 $

-41,930.05 $ -41,930.05 $

$ 1,553,866.70 1,553,866.70 $

75,516,585.50 75,516,585.50

17,362.68 $ 297,138.34 314,501.02 $

1,859,053.96 13,550.67
2,961,474.29 297,138.34
1,085,437.06 82,665.16
6,299,319.48

$

1,462,249.63

254,283.48

2,111,422.84

605,430.32

2,185.37

75,516,585.50

876,954.95

2,713,762.13

$ 83,542,874.22

$

2,719,038.53 $

598,092.70 $

1,553,866.70 $ 75,599,250.66 $

314,501.02 $ 89,842,193.70

-3-

VALDOSTASTATEUNIVERSITY
COMBINED STATEMENT OF CHANGES IN FUND BALANCES
ALL FUND GROUPS YEAR ENDED JUNE 30. 1995

B~NUE ~D QTl:!ER &2DITIot-J
Unrestricted Current Fund Revenues State Appropriations
Regular Major Repairs/Rehabilitation Funds Federal Grants and Contracts State Grants and Contracts Private Gills, 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 9)
Recovery cA Prior Years' Cancelled Loans
Total Revenues and Other Additions
EXPENDITURES AND QTHER DEDUCTIONS
Educational and General Expenditures Auxiliary Enterprises Expenditures Indirect Costs Recovered
Remittances to the Board of Regents cA the
University System of Georgia Prior Year's Unrestricted Fund Balance (Surplus)
Adjustments Prior Years' Revenues/Accounts Receivable
Loans Assigned to Federal Government
Loan Cancellations and Write-Offs Administrative and Collection Costs Expended for Plant Facilities
Capitalized Noncapitalized Disposals/Deletions/Adjustments
Total Expenditures and Other Deductions
TRANSFERS BETWEEN FUNDS
Nonrnandatory Renewals and Replacements
Net lncrease/(Decrease) for the Year
FUND BALANCES JULY 1, 1994
FUND BALANCES JUNE 30, 1995

CURRENT FUNDS

UNRESTRICTED

RESTRICTED

LOAN FUNDS

$

56,447,590.16

$

6,814,758.12 $

3,800,291.44

467,899.91

127,092.42

63,209.30 21,415.46

-13,443.40 822.40
4,986.70 42,389.81

50,000.00

$

56,582,214.92 $

11,210,041.89 $

$

47,403,452.28 $

10,991,283.84

7,949,315.05

84,687.55

22,611.70
15,828.82 $

21,726.00 56,481.51
7,800.89 39,592.68
8,807.00

$

55,391,207.85 $

11,075,971.39 $

56,200.57

$

-539,379.34

$

651,627.73 $

550,197.75

134,070.50 $ 742,884.45

280.94 1,716,252.17

$

1,201,825.48 $

876,954.95 $

1,716,533.11

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

EXHIBIT"B"

ENDOWMENT AND SIMILAR
FUNDS

UNEXPENDED

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

TOTAL (Memorandum
Only)

$

$

325,000.00

971,663.00

$

5,972.00

69,775.35

224,765.00

1,635.85

$

75,747.35 $

1,523,063.85 $

0.00 $
0.00 $

$
69,521.09
2,904,654.21 1,564,498.90
183,416.70 3,162,188.19 7,884,279.09 $

56,447,590.16
325,000.00 971,663.00 6,801,314.72 3,800,291.44 544,215.40
127,092.42 229,751.70
69,775.35 42,389.81
64,845.15 21,415.46
2,904,654.21
1,564,498.90 183,416.70
3,162,188.19
50,000.00 21,726.00
77,331,828.61

$

0.00

$ 58,394,736.12 7,949,315.05 84,687.55

$

442.93

23,054.63

15,828.82 7,800.89 39,592.68 8,807.00

1,564,498.90 $ 495.00

183,416.70 63,552.81
$

1,001,661.70

1,747,915.60 64,047.81
1,001,661.70

$

0.00 $

1,565,436.83 $

246,969.51 $

1,001,661.70 $ 69,337,447.85

$

75,747.35 $

2,643,291.18

$ _ _ _5_3_9_,3_7-'-9-'-.34-

-42,372.98 $

292,409.83 $

442.93

1,261,456.87

s _____o_.oo~

6,882,617.39 $ 68,633,968.11

7,994,380.76 75,548,493.46

$

2,719,038.53 $

-41,930.05 $

1,553,866.70 $ 75,516,585.50 $ 83,542,874.22

-5 -

VALDOSTA STATE UNIVERSITY STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,
AND OTHER CHANGES YEAR ENDED JUNE 30, 1995

EXHIBIT"C"

UNRESTRICTED

RESTRICTED

TOTAL (Memorandum
Onl):~

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

$

29,347,035.00

16,971,424.74

83,548.08 $

116.55

1,022.92

104,917.15 8,988,250.03
951,275.69

$
6,749,113.64 3,790,203.35
365,096.67 86,870.18

29,347,035.00 16,971,424.74
6,832,661.72 3,790,319.90
366,119.59 86,870.18
104,917.15 8,988,250.03
951,275.69

Total Revenues

$

56,447,590.16 $

10,991,283.84 $

67,438,874.00

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

$

25,021,986.59 $

4,044,368.44

3,146,993.00

8,814,093.93

4,610,993.32

1,765,017.00

2,523,457.34 1,918,651.73
576,923.39 1,880,641.94 1,049,640.65

734,199.38 $ 508,132.13
33,822.86 1,081,042.91
4,520.68 8,629,565.88

25,756,185.97 4,552,500.57 3,180,815.86 9,895,136.84 4,615,514.00
10,394,582.88
2,523,457.34 1,918,651.73
576,923.39 1,880,641.94 1,049,640.65

Total Expenditures

$

55,352,767.33 $

10,991,283.84 $

66,344,051.17

OTHER TRANSFERS AND ADDITIONSHDEDUCTIONS)

Excess of Restricted Receipts over Transfers to Revenues

Transfers for Renewals and Replacements

$

Prior Period Adjustments (Net)

Legal Settlement (Note 9)

Remittances to the Board of Regents of the

University System of Georgia

Prior Year's Unrestricted Fund Balance (Surplus)

$ -539,379.34
68,795.94 50,000.00
-22,611.70

134,070.50 $

134,070.50 -539,379.34
68,795.94 50,000.00
-22,611.70

Total Other Transfers and Additions/(Deductions) $

-443, 195.10 $

134,070.50 $

-309, 124.60

Net lncrease/(Decrease) in Fund Balances

$

651,627.73 $

134,070.50 $

785,698.23

===::::::::::::::::::::::::=:

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

VALDOSTA STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT"D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Valdosta State University is one of thirty-four (34) State supported member institutions of higher education in Georgia which comprise the University System of Georgia, an organizational unit of the State of Georgia. The accompanying financial statements reflect the operations of Valdosta State University as a separate reporting entity.
The Board of Regents 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.
Fund groups and 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, 1995

EXHIBIT "D"

NOTE 1: 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 of gift instruments requiring that the principal be invested in perpetuity and income only be utilized. Term endowment funds are similar to endowment funds except that upon the passage of a stated period oftime 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 pwposes 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 of such 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 of all 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 of accounting applicable to colleges and universities prescribed in the American Institute of Certified Public Accountants' audit guide reporting model.
The modified accrual basis ofaccounting is defined as that method of accounting 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, 1995

EXHIBIT "D"

NOTE 1: 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 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 ofencumbrances 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.
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$1,703,457.09 and the related current year expenditure of $246,117.09 have not been reported in the current funds as required by generally accepted accounting principles.
Prior period adjustments and certain other items are reported as additions to and deductions from fund balances of current funds in the accompanying financial statements. This presentation is in accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, but differs from generally accepted accounting principles in that immaterial adjustments should be reported as current period revenues and expenditures. 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 of the University. 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 physical plant and equipment.
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.

- 9-

VALDOSTA STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT"D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BUDGET The Board of Regents of the University System of Georgia - Administrative Central Office receives State appropriation allotments for units ofthe University System of Georgia. The appropriated budget is adopted at the departmental level and represents appropriations provided by the Amended Appropriations Act of 19941995. 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 organizational units by the Administrative Central Office. In addition, the organiz.ational units receive Federal funds and other funds directly and include these funds in the budget filed with the Administrative Central Office.

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:

Operating Expenses: Educational, General and Departmental Services Sponsored Operations
Capital Outlay Research Consortium

$ 5,880.06 $ 1,655,514.39
$ 307 298.41
$ 12,083.75

These overexpenditures of budget constitute a violation of Board of Regents policy, but do not constitute statutory violations of budget authority. Statutory violations of budget authority are reported at the departmental level.

CASH AND CASH EQUIVALENTS Cash and Cash Equivalents consist of petty cash, demand deposits, certificates of deposit and temporary investments in authorized financial institutions, and cash management pools that have the general characteristics of demand deposit accounts.

ACCOUNTS RECEIVABLE Accounts receivable consist ofreimbursements due from Federal, State, local, and private grants and contracts, and other receivables disclosed from information available. No provision has been made for an allowance for doubtful accounts within the accompanying financial statements.

INVENTORIES Inventories ofconsumable supplies are recorded on the consumption method and are valued at cost based on the first-in, first-out method.

Inventories of goods for resale are valued at cost based on the first-in, first-out method.

- 10 -

VALDOSTA STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXIIlBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
PREPAID ITEMS Prepaid items are payments made to vendors in advance of the receipt of goods 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. The columns do not present information that reflects 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 ofthis data.
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, certificates of indebtedness, notes, or other direct obligations of the United States or of the State of Georgia.
(2) Bonds, bills, certificates ofindebtedness, notes, or other obligations ofthe counties or municipalities ofthe State of Georgia.
(3) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose.
(4) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia.
(5) Bonds, bills, certificates of indebtedness, notes, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
(6) Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation.

- 11 -

VALDOSTA STATE UNIVERSITY NOTES TO THE FINANCIAL STATE:MENTS
JUNE 30, 1995

EXIIlBIT "D"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVEST:MENTS

STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES 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 organizational units of the Board of Regents of the 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 furnishing the required depository protection for all units of the University System of Georgia.

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 University or by its agent in the University's name.

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

Cash Deposits

Carrying Amount
$ 5301 562 15

Bank Balances
s1825643 01

s 228 680 62

Risk Categories 2
s.===oo=o

3 $ 1596262 45

CATEGORIZATION OF INVESTMENT The carrying amounts of investment balances as ofJune 30, 1995, are shown below:

Carrying Arnout

Market Value

Board ofRegents Short-Term Investment Fund Total Return Fund

$ 177,197.97 $ 177,197.97 3395,974.66 3,744,138.94

Total Investments

$ 3 573 172 63 $ 3 92133691

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 of the pool.

- 12 -

VALDOSTA STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "D"

NOTE 3: INVESTMENT IN PLANT

The following is a summary oflnvestment in Plant fixed assets as of June 30, 1995:

Land Buildings Improvements Other Than Buildings Equipment Library Books and Collections
Total Investment in Plant

$ 1,589,514.21 49,270,239.00 2,851,675.96 12,953,904.35
8,933,917.14
$75,599,250.66

NOTE 4: CAPITAL LEASES

Valdosta State University acquires certain equipment through multi-year capital leases with varying terms and options. These agreements contain fiscal funding clauses in accordance with Official Code of Georgia Annotated Section 50-5-64 which prohibits the creation of a debt to the State of Georgia for the payment of any sums under such agreements beyond the fiscal year of execution if appropriated funds are not available. If renewal of such agreements is reasonably assured, however, capital leases requiring appropriation by the General Assembly of Georgia are considered noncancellable for financial reporting purposes.

As of June 30, 1995, future minimum lease payments under capital leases are as follows:

Fiscal Year Ending June 30
1996 1997 Total Future Minimum Lease Payments Less: Amounts Representing Interest Present Value ofFuture Minimum Lease Payments
NOTE 5: RISK MANAGEMENT

$ 65,746.81 21,488.12
$ 87,234.93
4,569.77
$ 82 665 16

Valdosta State University is a participant in the Board ofRegents of the University System of Georgia Health Benefits Plan, which is a self-insurance program ofhealth and dental benefits for employees and retirees of the University System ofGeorgia. The University and participating employees and retirees pay premiums to the Health Benefits Plan for this health insurance coverage. The Health Benefits Plan is included in the audit report ofthe Board ofRegents ofthe University System of Georgia - Administrative Central Office. All units ofthe University System of Georgia share the risk of loss for claims ofthe Health Benefits Plan. The Health Benefits Plan is considered a self-sustaining risk fund that provides health coverage for its members up to a maximum lifetime benefit of $1,000,000.00 per person and dental coverage up to an annual maximum of $1,000.00 per person. The Board of Regents has contracted with Blue Cross Blue Shield of Georgia to process claims in accordance with the Health Benefits Plan as established by the Board ofRegents.

- 13 -

VALDOSTA STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "D"

NOTE 5: 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 law enforcement officers' indemnification. Limited amounts ofcommercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. The University, as an organizational unit of the Board of Regents of the University System of Georgia, is part of the State of Georgia 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.
A self-insured program of professional liability for its employees was established by the Board ofRegents of the University System ofGeorgia under powers authorized by the Official Code of Georgia Annotated Section 45-9-1. The program insures the employees to the extent that they are not immune from liability against personal liability for damages arising out ofthe performance oftheir duties or in any way connected therewith. The program is administered by DOAS as a Self-Insurance Fund.
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 attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the State of Georgia subject only to the claims of the State's general creditors. Participants' 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 for each participant. Financial information relative to the plan is presented in the financial report of the State Personnel Board - Merit System of Personnel Administration for the year ended June 30, 1995.
NOTE 7: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Plan Description Valdosta State University participates in the Teachers Retirement System of Georgia (TRS), a cost-sharing multiple-employer public employee retirement system (PERS) established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia.
- 14 -

VALDOSTA STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXIIlBIT D 11 11

NOTE 7: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Plan Description The University's payroll for the year ended June 30, 1995, for employees covered by TRS was $24,163,464.19. The University's total payroll for all employees was $32,170,207.21.
Benefits TRS provides service retirement, disability retirement, and survivor's 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 of creditable service, (2) has at least 30 years of creditable service, regardless of age, or (3) has attained the age of55 years and has at least 25 years of creditable 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 of years of creditable 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 of service. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe 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 of disability.
Members become fully vested after ten years of service. If a member terminates with less than ten years of
service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
Contributions Required and Contributions Made Employees ofthe University who are covered by TRS are required to pay 5% oftheir gross earnings to TRS. The University makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1995, the employer contribution rate was 11.81% for covered employees. In addition, the University contributed 5.60% to the TRS on behalf of employees electing to participate in the Regents Retirement Plan. The interest rate assumption (rate of return on investments) was 7.50%.
Total contributions to the plan made during fiscal year 1995 amounted to $4,351,866.79 of which $3,144,003.99 was made by the University and $1,207,862.80 was made by employees. These contributions represented 12.96% (University) and 5% (employees) of covered payroll.

- 15 -

VALDOSTA STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT"D"

NOTE7: RETIREMENTPLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Funding Status and Progress Pension Benefit Obligation
The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 of the Governmental Accounting Standards Board (GASB) that is required to be used for reporting purposes. The standardized measurement is the actuarial present value of credited projected benefits. This pension 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 salary increases and any step-rate benefits. A standardized measure of the pension benefit obligation was adopted by the GASB to enable readers of the 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 similar PERS.

The total unfunded pension benefit obligation ofTRS as ofJune 30, 1994, which was the latest information available, was as follows:

Total pension benefit obligation

$ 15,313,743,000.00

Net assets available for benefits, at cost

14,254,785,000.00

Unfunded pension benefit obligation

$ 1.058.958.000.00

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 of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

Retirement System Contributions Total contributions from all employers to TRS for the year ended June 30, 1995, were $565,117,811.00. The University's contribution for the year ended June 30, 1995, of$3,144,003.99 was actuarially determined and represented .5563% oftotal contributions made by all participating employers.

Trend Information Historical trend information is presented in the financial report ofTRS 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.

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.

- 16 -

VALDOSTA STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXIIlBIT "D"

NOTE 7: RETIREMENT PLANS
REGENTS RETIREMENT PLAN
State legislation requires that the employer contribute 4% and the employee contribute 5% of the participating employee's earnable compensation. Amounts attributable to all plan contributions are fully vested and nonfotfeitable at all times. The University's payroll for employees covered by the Regents Retirement Plan for the year ended June 30, 1995, was $5,183,898.06. The University's total payroll for all employees was $32,170,207.21.
The University and the covered employees made the required contributions of $207,665.39 (4%) and $259,589.18 (5%), respectively.
GEORGIA DEFINED CONTRIBUTION PLAN
Plan Description Valdosta State University participates in the Georgia Defined Contribution Plan (GDCP) which is a singleemployer defined contribution plan established by the General Assembly of Georgia in July 1993 for the purpose ofproviding retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees ofthe Employees' Retirement System of Georgia. The University's payroll for the year ended June 30, 1995, for employees covered by GDCP was $737,512.77. The University's total payroll for all employees was $32,170,207.21.
Benefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board of Trustees. If a member has less than$ 3,500.00 credited to his/her account, the Board of Trustees has the option of requiring a lump sum distribution to the member in lieu ofmaking 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 of Trustees. Upon termination ofemployment, the amount of the member's account is refundable upon request by the member.
Total contributions made by employees during fiscal year 1995 amounted to $55,313.84 which represents 7.50% of covered payroll. These contributions met the requirements of the plan.

- 17 -

VALDOSTA STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXIIlBIT "D"

NOTE 8: 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 of continuous 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.
NOTE 9: LEGAL SETTLEMENT
During fiscal year 1995, 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. This was the final payment from settlement.
NOTE 10: 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 University expects such amounts, if any, to be immaterial to its overall financial position.
Litigation, claims and assessments filed against Valdosta State University (as an organizational unit of the Board ofRegents ofthe University System of Georgia), if any, are generally considered to be actions against the State ofGeorgia. 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.
NOTE 11: POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
Pursuant to the general powers conferred by the Official Code of Georgia Annotated Section 20-3-31, the Board ofRegents ofthe University System ofGeorgia has established group health and life insurance programs for employees of the University System of Georgia. It is the policy of the Board of Regents to permit employees ofthe University System ofGeorgia eligible for retirement or that become permanently and totally disabled to continue as members ofthe group health and life insurance programs. Employees who are eligible

- 18 -

VALDOSTA STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "D"

NOTE 11: POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS

for retirement or disability under the criteria established by the Teachers Retirement System of Georgia and who have at least ten years of service with the University System of Georgia are eligible for these postemployment health and life insurance benefits. Organizational units of the Board of Regents of the University System of Georgia pay the employer portion for group insurance for affected individuals.

As of June 30, 1995, there were 258 employees who had retired or were disabled that were receiving these postemployment health and life insurance benefits. For the year ended June 30, 1995, Valdosta State University recognized as incurred $399,177.76 of expenditures, which was net of $134,233.62 of participant contributions.

NOTE 12: 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 was paid to October 1, 1995. 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 $1,000,000.00 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 of their position or employment.

All employees ofValdosta State University are also bonded under Commercial Crime Policies written by the United States Fire Insurance Company, their Policy Nos. 626 011675 2 and 626 012294 4, on which the premiums were paid to October 1, 1995. Under these additional public employee dishonesty coverages, the policies insure the University to a maximum of $9,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees.

NOTE13: ENROLLMENT

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

Regular Term Fall Quarter, 1994 Winter Quarter, 1995 Spring Quarter, 1995

7,954 7,785 7,346

Average

Summer School, 1994

- 19 -

20

SUPPLEMENTARY INFORMATION - 21 -

ASSETS
cash and C8sh Equivalents Accounts Receivable Inventories Prepaid Items Due from Other Fund Groups
Total Assets

VALDOSTA STATE UNIVERSITY COMBINING BALANCE SHEET
CURRENT FUNDS UNRESTRICTED JUNE 30. 1995

RESIDENT INSTRUCTION

LOTTERY FOR EDUCATION

AUXILIARY ENTERPRISES

STUDENT ACTIVITIES

EXHIBITE TOTAL

$ 1,202,990.50 $ 540,063.71 113,164.98 62,334.15
11085,437 .06

365,096.43 $

956,144.63 $ 223,896.98 589,304.95
10,157.34

202,286.53 $ 1,636.17
165.00

2,726,518.09 765,596.86 702,469.93 72,656.49
1,085,437.06

$ 3,003,990.40 $

s s 365,096.43

1,n9,S03.90

204,087.70 $ 5,352,678.43

LIABILITIES AND FUND BALANCES

Liabilities Accounts Payable Student Deposits Deferred Revenue Tuition and Fees

$

799,915.49 $

2,997.27

2,053,761.64

Total Liabilities

$ 2,856,674.40 $

Fund Balances Unrestricted

147,316.00

321,294.07 $
321,294.07 $ 43,802.36

51,236.20 $ 10,553.40 809,572.65 871,362.25 $
908,141.65

3,382.23 $

1,175,827.99 13,550.67

98,140.00

2,961,474.29

101,522.23 $ 4,150,852.95

102,565.47

1,201,825.48

Total Liabilities and Fund Balances

$ 3,003,990.40 $

365,096.43 $ 1,n9,S03.90 $

204,087.70 $ 5,352,678.43

See notes to the financial statements.

-22-

VALDOSTA STATE UNIVERSITY COMBINING STATEMENT OF CHANGES IN FUND BALANCES
CURRENT FUNDS - UNRESTRICTED
YEAR ENDED JUNE 30. 1995

EXHIBIT"F"

RESIDENT INSTRUCTION

LOTTERY FOR EDUCATION

AUXILIARY ENTERPRISES

STUDENT ACTIVITIES

TOTAL

REVENUES ANO OTHER ADDITIONS

Unrestricted Current Fund Revenues

$

Adjustments

Prior Years' Expenditures/Accounts Payable

Prior Years' Checks Voided

Other Additions

Legal Settlement

46,082,822.59 $
46,039.34 16,663.41

539,800.00 $ 8,995,223.83 $

3,000.00

14,127.25 2,445.30

50,000.00

829,743.74 $ 56,447,590.16

42.71 2,306.75

63,209.30 21,415.46

50,000.00

Total Revenues and Other Additions $ 46,145,525.34 $

542,800.00 $ 9,061,796.38 $

832,093.20 $ 56,582,214.92

EXPENDITURES AND OTHER DEDUCTIONS

Educational and General Expenditures

$

Auxiliary Enterprises Expenditures

Remittances to the Board cA Regents cA the

University System cA Georgia

Prior Year's Unrestricted Fund Balance

(Surplus)

Adjustments

Prior Years' Revenues/Accounts Receivable

46,073,183.n $
22,611.70 10,396.39

498,997.64

$

$ 7,949,315.05

5,015.94

831,270.87 $ 47,403,452.28 7,949,315.05

416.49

22,611.70 15,828.82

Total Expenditures and Other Deductions

$ 46,106,191.86 $

498,997.64 $ 7,954,330.99 $

831,687.36 $ 55,391,207.85

TRANSFERS BETWEEN FUNDS

Nonmandatory Renewals and Replacements

$ -539,379.34

$ -539,379.34

Net lncrease/(Decrease) for the Year $

39,333.48 $

43,802.36 $

568,086.05 $

405.84 $

651,627.73

FUND BALANCES JULY 1. 1994

107,982.52

0.00

340,055.60

102,159.63

550,197.75

FUND BALANCES JUNE 30 1995

$

147,316.00 $

43,802.36 $

908,141.65 $

102,565.47 $ 1,201,825.48

See notes to the financial statements.

- 23-

~ALOOTA !ATE !.!Nl~EBl!Y COMl;!ININ~ IATEMENT QF C!.!RBE;NI E!.!N!;! BEVEN!.!E, ~Pl;;NQITURE,
AND QTHER ~HAN~E
!.!NBETRICIED
YEAR ENDED J!.!NE 30 1995

EXHIBIT"G"

RESIDENT INSTRUCTION

LOTTERY FOR EDUCATION

AUXILIARY ENTERPRISES

STUDENT ACTIVITIES

TOTAL

REVENUES

State Appropriations Tuition and FFederal Grants and Contracts State Grants and Contracts Private Gifts, Grants, and Contracts Sales and Services of Educational Activities Sales and Services of Auxiliary Enterprises Other Sources

$ 28,807,235.00 $ 16,325,683.49 83,548.08 116.55 1,022.92 104,917.15
760,299.40

539,800.00 $
$ 8,988,250.03 6,973.80

$ 645,741.25
184,002.49

29,347,035.00 16,971,424.74
83,548.08 116.55
1,022.92 104,917.15 8,988,250.03 951,275.69

Total Revenues

$ 46,082,822.59 $

539,800.00 $ 8,995,223.83 $

829,743.74 $ 56,447,590.16

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

$ 24,944,545.48 $ 3,772,646.21 2,316,198.13 8,664,259.63 4,610,993.32 1,764,541.00

77,441.11 211,n2.23
$ 149,834.30
$ 2,523,457.34 1,918,651.73 576,923.39 1,880,641.94 1,049,640.65

$ 830,794.87
476.00

25,021,986.59 4,044,368.44 3, 146,993.00 8,814,093.93 4,610,993.32 1,765,017.00

2,523,457.34 1,918,651.73
576,923.39 1,880,641.94 1,049,640.65

Total Expenditures

$ 46,073,183.77 $

498,997.64 $ 7,949,315.05 $

831,270.87 $ 55,352,767.33

OTHER TRANSFERS AND ADDITIONS/ {DEDUCTIONS)

Transfers for Renewals and Replacements

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)

52,306.36 $ -22,611.70

$ 3,000.00

-539,379.34 11,556.61 $ 50,000.00

$ 1,932.97

-539,379.34 68,795.94 50,000.00

-22,611.70

Total Other Transfers and Additions/(Deductions)

$

29,694.66 $

3,000.00 $ -477,822.73 $

1,932.97 $ -443,195.10

Net Increase in Fund Balance

$

39,333.48 $

43,802.36 $

568,086.05 $

405.84 $ ==65=1=,62==7.,..73=

See notes to the financial statements.

-25-

VALDOSTA STATE UNIVERSITY SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
RESIDENT INSTRUCTION YEAR ENDED JUNE 30, 1995

REVENUES
State Appropriations Other Revenues Retained

CURRENT FUNDS UNRESTRICTED RESTRICTED

PLANT FUNDS RENEWALS AND
UNEXPENDED REPLACEMENTS

$

28,807,235.00

$

17,275,587.59 $

10,991,283.84

1,296,663.00 224,765.00 $ _ _ _ _ _o_.oo_

$

46,082,822.59 $

10,991,283.84 $

- - - - - - 1,521,428.00 $

0.00

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

35,554,949.96 $
9, 134,539.06
1,268,716.00 114,978.75

502,417.45
10,488,866.39 $

1,564,993.90 $

246,969.51

Excess of Revenues over Expenditures

$

46,073,183.n s

10,991,283.84 $

- - - - - - 1,564,993.90 $

246,969.51

$

9,638.82 $

0.00 $

-43,565.90 $ ====2=46='=969==.5=1

(1) To eliminate tuition waivers not budgeted and to reclassify prior year fund balances budgeted as revenues.

See notes to the financial statements.

-26-

SCHEDULE "1"

TOTAL

ADJUSTMENTS
(1)

TOTAL (Budget Basis)

BUDGET

VARIANCEFAVORABLE (UNFAVORABLE)

$

30,103,898.00

$

30,103,898.00 $

30,103,898.00 $

28,491,636.43 $

-1,517,571.49

26,974,064.94

25,336, 162.00

0.00 1,637,902.94

$

58,595,534.43 $

-1,517,571.49 $

57,077,962.94 $

55,440,060.00 $ _ _1_,63_7,_90_2_.94_

$

35,554,949.96

502,417.45

$

35,554,949.96 $

35,802,421.00 $

502,417.45

563,893.00

247,471.04 61,475.55

9,134,539.06 $ 10,488,866.39
1,811,963.41 1,268,716.00
114,978.75

-1,764,541.00

7,369,998.06 10,488,866.39
1,811,963.41 1,268,716.00
114,978.75

7,364, 118.00 8,833,352.00 1,504,665.00 1,268,716.00
102,895.00

-5,880.06 -1,655,514.39
-307,298.41 0.00
-12,083.75

$

58,876,431.02 $

-1,764,541.00 $

57,111,890.02 $

55,440,060.00 $

-1,671,830.02

$

-280,896.59 $

246,969.51 $ ======-33='=92=7=.08=

$ ===-=33='=92=7=.08=

-27-

VALDOSTA STATE UNIVERSITY SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
LOTTERY FOR EDUCATION YEAR ENDED JUNE 30, 1995

SCHEDULE ''2''

REVENUES State Appropriations

CURRENT FUNDS UNRESTRICTED

BUDGET

VARIANCEFAVORABLE (UNFAVORABLE)

$

539,800.00 $

500,000.00 $ -----3-9,8'0-0-.0-0

EXPENDITURES
Equipment, Technology and Construction Trust Fund

$

498,997.64 $

500,000.00 $ ------1-,0'0-2.-36-

Excess of Revenues over Expenditures

$ ======40=,8=0=2=.3=6

$ =======40=,8=0=2=.36=

See notes to the financial statements.

-28-

VALDOSTA STATE UNIVERSITY SCHEDULE OF OPERATIONS LOAN FUNDS
YEAR ENPEP JUNE 30, 1995

SCHEDULE"3"

FUND
U. S. GOVERNMENT gRANTS REFUNDABLE
Nursing Student Loan Fund Perkins Loan Fund
INSTITUTIONAL LOANS - RESTRICTED
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, Char1es 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

FUND BALANCE JULY 1, 1994

$

29,927.09 $

1,440,866.12

$

1,470,793.21 $

$

8,682.68 $

69,299.65

2,092.16

1,334.86

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

$

245,458.96 $

ADDITIONS/ TRANSFERS

DEDUCTIONS/ TRANSFERS

FUND BALANCE JUNE 30, 1995

-13,647.99 $ 58,958.26
45,310.27 $

486.59 $ 53,367.26
53,853.85 $

15,792.51 1,446,457.12
1,462,249.63

418.19 $ 3,606.17
6.00
710.14 2,857.68
440.12 759.70
6.00 548.25 816.92 928.11 73.96
11,171.24 $

109.67 $ 972.49
16.85
160.79 87.67 512.04 405.90
81.31
2,346.72 $

8,991.20 71,933.33
2,081.31 1,334.86
18,487.07 50,070.18 23,115.83 36,075.40
1,351.14 4,963.63 9,672.72 20,930.88 5,275.93
254,283.48

$

1,716,252.17 $

56481.51 $

56,200.57 $ ==1=,7=1=6'=533:::::::::::::.1===1

RECONCILIATION OF STUDENT NOTES RECEIVABLE
Balance July 1, 1994 Add:
Loans to Students

Deduct:

Repayment of loans

$

Loans Assigned to Federal Government

Loan Cancellations and Write-Offs

For Bankruptcy

$

170.18

For Disability

3,025.00

For Teaching and Nursing Services

35,929.39

For Uncollectible

468.11

$
$ 258,335.46
7,800.89

1,539,5TT.60 66,181.04
1,605,758.64

39,592.68

305,729.03

Balance June 30, 1995

$ ==1=,300===='=029=.6=1

See notes to the financial statements.

-29-

VALDOSTA STATE UNIVERSITY SCHEDULE OF OPERATIONS
ENDOWMENT AND SIMILAR FUNDS
YEAR ENDED JUNE 30 1995

SCHEDULE "4"

Bllil2
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 D., Fund
TERM ENDOWMENT
Martin, Clare P., Fund Pierce, R. L., Fund Whitehead, Jewell D., Fund Whitehead, R. B., Fund
QUASI-ENDOWM!;NT - R!;STRICTED
Carter, Marjorie E., Award Fund

FUND BALANCE JULY1, 1994

ADDITIONS/ TRANSFERS

DEDUCTIONS/ TRANSFERS

FUND BALANCE JUNE 30, 1995

$

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

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

34,585.55 27,946.58 10,707.52

$

2,051,655.82 $

697.35 $ 328.25 229.62 2,834.28 484.60 575.87 1,248.89 37.24 1,958.17 383.41 1,443.48 64.76 113.91
1,167.90 148.13 184.83 391.57
1,854.96 41,916.01
1,013.76 638.73 53.96
964.42 746.79 286.13
59,767.02 $

0.00 $ 0.00 $

17,222.22 12,611.87 8,822.66 38,536.58 15,347.04 22,122.68 15,583.93 1,431.13 83,515.11 14,746.66 55,461.76 2,487.94 3,441.77
44,873.81 5,691.36 5,456.99 16,558.70 28,236.00 1,610,505.77 6,917.40 24,541.44 2,073.03
35,549.97 28,693.37 10,993.65
2,111,422.84

$

15,373.47 $

12,485.25

435,786.81

125,837.91

$

589,483.44 $

605.47 $ 333.64 11,645.13 3,362.64
15,946.88 $

0.00 $ 0.00 $

15,978.94 12,818.89 447,431.94 129,200.55
605,430.32

$

2,151.92 $

33.45 $

0.00 $

2,185.37

$

2,643,291.18 $

75,747.35 $

0.00 $ ===2,7=19=,03=8.5=3

See notes to the financial statements.

-30-

VALDOSTA STATE UNIVERSITY SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
AGENCY FUNDS
YEAR ENDED JUNE 30, 1995

SCHEDULE 5"

FUND
PAYROLL PEPUCTIQNS
Federal Income Tax State Income Tax F.I.C.A. Retirement Georgia Defined Contribution Plan Group Insurance Employees Credit Union Tax Deferred Annuities Savings Bonds United Fund Garnishments Valdosta State University Foundation Child Support Fidelity Investments Dental Insurance Direct Deposit Miscellaneous
EMPLOYER'S CONTRIBUTIONS
F.I.C.A. Retirement Group Insurance
OTHER FUNDS
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 Capstone Program C.C.P. CEU Workshop Childcare Program Children's Service Testing Fund Connell, Clyde, Fund Co-op Video Tape Productions Credit Union Copying Educational Technology Training Center European Council of the Regent's
Global Center

BALANCE JULY 1, 1994

RECEIPTS

DISBURSEMENTS

BALANCE JUNE 30, 1995

$

-525.40 $

3,305,4n.90 $

3,304,445.72 $

506.78

-273.11

1,179,092.26

1,178,819.15

-239.46

2,1n,398.76

2,178,121.75

-962.45

1,469,914.56

1,469,449.52

465.04

-757.04

60,439.67

59,619.13

63.50

187.27

1,132,116.78

1,130,607.95

1,696.10

1,489,468.57

1,489,668.57

-200.00

641,455.03

642,055.03

-600.00

2.50

12,720.00

12,700.00

22.50

12,965.29

12,965.29

-541.69

44,758.51

39,858.90

4,357.92

42,736.37

42,736.37

50,491.15

47,n6.67

2,714.48

32,585.92

32,585.92

310,n5.90

310,n5.90

-0.20

2,429,661.83

2,426,934.91

2,726.72

8,342.42

10,122.32

-1,n9.so

$

-2,147.13 $

14,400,400.92 $

14,389,243.10 $

9,010.69

$

3,539.24 $

2,1n,687.57 $

2,179,850.79 $

12,194.24

3,354,174.89

3,362,935.51

18,589.40

3,471,841.50

3,490,430.90

$

34,322.88 $

9,003,703.96 $

9,033,217.20 $

1,376.02 3,433.62
4,809.64

$

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

52.55 $ 14,335.55
200.00 120.00
2,348.79 4,515.60
411.38
31,220.00 410.00
3,334.00 95,n8.50
40.00
321.29 15,470.00
4,456.00

147.51 $ 16,099.30
87.31
131.61 120.00 64.12 1,317.50 2,717.25 543.79 40.00
31,050.00 410.00
1,689.24 55,188.64
21.81 300.25 578.80 321.29
2,934.05

90.08 811.30 137.75
68.39 29.10 433.95 3,199.91 2,392.41
705.64 92.37 170.00
4,065.66 19,617.53
398.65 389.75
15,470.00
1,521.95

See notes to the financial statements.

-31 -

VALDOSTA STATE UNIVERSITY
SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
AGENCY FUNDS
YEAR ENDED JUNE 30, 1995

SCHEDULES"

.E.U.NQ

BALANCE JULY 1, 1994

OTHER FUNDS

Football camp

$

Graduate Leadership Seminar

Greek Row Deposits

HPE/Golf

Health Fitness Center

Honors Student Association

Human Performance Lab

Inter-Fraternity Council

International Programs - Art in Britian

International Programs - Eudcation in

Scotland

International Programs - French Epinal Tour

International Programs - French Tour

International Programs - Medical Insurance

International Programs - Passports

International Programs - Study in England

International Programs - Study in Mexico

International Studies Room and Food

Jekyll Island Theatre

Kappa Alpha Order

Language Arts Workshop

Marching Band Boosters

Microcomputer Support Center

Middle School Workshop

Minority Advisement Program

Miscellaneous Student Fees - Inactive

Miscellaneous Student Receivables

NAFSA Russian Awards Program - Exter Lenoid

NAFSA Russian Awards Program - llya Ganov

Office of Education - Cash

Office of Education - Direct Loan

Order of Omega

Panhellenic Council

Paramore, Jane, Memorial Fund

PCG Services

Pell Grant Repayment

Phi Delta Kappa

Pi Gamma Mu

Public Service Workshop

Refund Clearing Account

Retired Employee's Group Insurance

R.O.T.C.

Scholarships

Regents' Opportunity Grants

Regents' Scholarship Fund

Other Scholarships (List on File)

School of Education

SCOPE Program

Secondary Education

Secondary Education Conference and

Workshop

SEOG Initial Payments

Share The Wealth

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 1,976.80 -16,608.17 29,287.85
803.87 2,070.06 6,232.14 2,806.17
2,975.31 -5,485.50
138.07 6,230.45
22,551.22 207.78 908.19
6,016.90 115.50
-10,695.84
149.40 250.00 61,193.73 14,076.17
1,978.86
1,302.31 2,105.15

RECEIPTS

DISBURSEMENTS

BALANCE JUNE 30, 1995

2,562.06 $ 17,000.00 60,000.00
14,422.75 35.00
3,276.95 300.00

2,599.98 $ 17,423.75
15,757.75
3,405.48 364.66

42,275.26
20,444.00 931.00
74,676.01 91,819.69
n,334.12 31,951.54
4,780.00 131.84
3,406.47 2,093.60 20,132.25 10,000.00 10,000.00 5,901,596.00
1.00 540.00
4,051.76 135.00
2,340.00 16,263.95 156,204.82 204,397.66 28,183.00
11,666.00 7,700.00 15,004,198.03 5,200.50 1,300.00
435.11
4,328.95
26,661.00

24,346.46 151.89 68.48
11,844.00 672.00
65,265.88 98,664.51
1,976.80 105,966.57 40,289.35
803.87
4,651.96 539.75
1,618.50 2,220.45 17,122.25 9,949.00 9,818.83 5,895,246.00
151.59
38.99 1,605.25 17,223.76 156,320.32 206,528.19 28,183.00
11,659.00 6,450.00
15,014,527.19 9,995.89 1,300.00
5,434.21
20,343.28

11.52 -423.75 60,000.00 112.00 3,458.39 100.00 -128.53
18.55 740.50
12,309.43
8,600.00 931.00
4,693.01 268.02
-45,240.62 20,950.04
2,070.06 6,360.18 2,398.26 1,787.97 2,848.46 -2,475.50
51.00 181.17 6,350.00
1.00 540.00 -13.52 6,230.45 4,051.76 22,686.22 168.79 1,642.94 5,057.09
-12,826.37
156.40 1,500.00 50,864.57 9,280.78
2,413.97
197.05 2,105.15 6,317.72

See notes to the financial statements.

-32-

VALDOSTA STATE UNIVERSITY
SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
AGENCY FUNDS
YEAR ENDED JUNE 30, 1995

SCHEDULE s-

.EUNQ
OTHER FUNDS
Society of International Students Sociology - Criminal Justice Program South Georgia Math Collaborative Southern Conference on Language Teaching Special Account - Division of Nursing Speech and Hearing Clinic Student Bank Deposit Student Development and Placement Student Development and Testing Student Exchange Program Student Nurse Fund Summer Math Clinic Summer Reading Clinic Tau Kappa Epsilon Teaching Africa I and II Trade Adjustment Act Tropical Studies - Belize University System Seminar at Newcastle Vocational Educational Conference VSU for Kids VSU Gospel Choir VSU Recycling Program Who's Who in Modem Foreign Language

BALANCE JULY1, 1994

$

281.97

362.52

-180.37 $

-1,034.37

1,516.84

3,096.41

2,125.59

2,127.67

-487.17

8,855.90 2,248.90 1,469.07
0.50 70.80

237.45

446.37 104.05 1,877.95 4,669.53

$

152,231.54 $

RECEIPTS

DISBURSEMENTS

BALANCE JUNE 30, 1995

$
180.37 2,832.95 12,136.35
1,838.03 1,621.08 3,700.00 1,976.80 4,320.00

123.75 $
1,654.94 6,360.43
1,940.67 501.04
1,158.00

14.35
17,979.00
48,150.00 1,203.17

14.85
17,979.00
27,124.35 1,298.54

415.00 22,132,156.08 $

1,552.80 3,249.60
21,987,249.28 $

158.22 362.52
143.64 7,292.76 3,096.41 3,963.62 1,808.08 2,711.79 1,976.80 12,017.90 2,248.90 1,469.07
70.80
237.45 21,025.65
-95.37 446.37 104.05 740.15 1,419.93
297,138.34

$

184,407.29 $

45,536,260.96 $

45,409,709.58 $ ===3=1=0'!:::958==.67=

See notes to the financial statements.

-33-

VALDOSTA STATE UNIVERSITY CASH AND CASH EQUIVALENTS
JUNE30 1995

SCHEDULE "6"

NONINTEREST BEARING ACCOUNTS
Barnett Bank, 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
OTHER
Cashon Hand Petty Cash

$

7,780.51

$ 5,299,781.00

s 1n,197.97 3,395,974.66
0.64

3,573, 173.27

8,872,954.27

119,185.17 $ 8,999,919.95

See notes to the financial statements.

-34-

VALDOSTA STATE UNIVERSITY
ACCOUITTS RECEIVABLE
JUNE3Q 1995

SCHEDULE '7'

Federal Grants and Contrac:ts Researeh and Instruction Student Aid
Slate Grants and Contrac:ta Research and Instruction StudentAid
Private Gifts, Grants, and Contracts Researeh nd Instruction StudentAid
Other Georgia Slate Financing and lrwestment Commission Returned Checks Student Accounts
Student NolBs Vendor Credit Memos
Other

CURREITT FUNDS

UNRESTRICTED

RESTRICTED

s

159,810.25

245,870.52

341,480.88 292,257.57

n,038.80 32,448.00

LOAN FUNDS

PLAITTFUNDS UNEXPENDED

AGENCY FUNDS
s

TOTAL
159,810.25 245,870.52

341,480.88 292,257.57

n,038.eo 32,448.00

s

38,888.91

492,904.97

130,434.47 105 388.51

s

s

1,300,029.81

140,802.22 23 984.55 S

3 542.35

140,802.22 38,888.91 492,904.97 1,300,029.81 130,434.47 132,895.41

s

765,596.88 S

1,148,704.02 S

1,300,029.81 s

184,588.n s

3,542.35 S

3,382,459.61

See notes to the financial statements.

-35-

VALDOSTA STATE UNIVERSITY CHANGES IN INVESTMENT IN PLANT
YEAR ENDED JUNE 30, 1995

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

BALANCE JULY 1, 1994

CURRENT FUNDS

UNRESTRICTED

RESTRICTED

PLANT UNEXPENDED

$

1,589,514.21

44,811,091.91 $

272,160.45

$

988,787.45

2,408,557.33

48,000.00 $

4,520.68

390,597.95

11,734,912.84

1,607,747.38

331,215.08

185,113.50

8,279,906.52

641,010.62

$

68,823,982.81 $

2,568,918.45 $

335,735.76 $ ====1=,564==='=498==.90=

$

68,633,968.11 $

190,014.70

2,568,918.45 $

335,735.76 $

1,564,498.90

$

68,823,982.81 $

2,568,918.45 $

335,735.76 $ ==1=,564=='=498====.90=

See notes to the financial statements.

-36-

SCHEDULE "8"

ADDITIONS
FUNDS RENEWALS AND REPLACEMENTS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

56,011.00 $

3,142,188.19

127,405.70

20,000.00 $

CAPITAL LEASES
7,040.00 $

PRIVATE GIFTS

DEDUCTIONS DISPOSALS/ DELETIONS/ ADJUSTMENTS

BALANCE JUNE 30, 1995

$

1,589,514.21

49,270,239.00

2,851,675.96

69,521.09 $

1,129,051.24

12,953,904.35

-13,000.00

8,933,917.14

$

183,416.70 $

3,162,188.19 $

7,040.00 $

69,521.09 $

1,116,051.24 $

75,599,250.66

$

183,416.70 $

3,162,188.19

$

_ _ _ _ _ _ $ _____7,_0_40_.oo_

69,521.09 $

1,001,661.70 $ 114,389.54

75,516,585.50 82,665.16

$

183416.70 $

3,162,188.19 $

7,040.00 $

69,521.09 $

1,116,051.24 $

75,599,250.66

-37-

VALDOSTA STATE UNIVERSITY SCHEDULE OF FUND BALANCES CURRENT FUNDS AND PLANT FUNDS
JUNE 30. 1995

RESIDENT INSTRUCTION

CURRENT FUNDS

UNRESTRICTED

LOTTERY FOR

AUXILIARY

EDUCATION

ENTERPRISES

NET INVESTMENT IN PLANT

Investment in Plant Facilities

RESTRICTED

Designated for Subsequent Years' Expenditures

UNRESTRICTED

Designated

For Bus Replacement Reserve

For Equipment, Technology and Construction Trust Fund

$

43,802.36

For Intercollegiate Athletics

$

3,931.58

For Inventory Reserve

$

75,000.00

589,304.95

For Renewals and Replacements Reserve

For Subsequent Years' Expenditures

313,890.23 $

For Uncollectible Accounts

10,370.82

1,014.89

Undesignated

Surplus/Deficit

Regular

61,945.18

Lottery for Education

$

147,316.00 $

43,802.36 $

908,141.65 $

STUDENT ACTIVITIES
102,565.47 102,565.47

$

147,316.00 $

43,802.36 $

908,141.65 $ ===1=02='=565===.4=7

See notes to the financial statements.

-38-

SCHEDULE g

RESTRICTED

PLANT FUNDS

UNEXPENDED

LOTTERY FOR

RENEWALS AND

REGULAR

EDUCATION

REPLACEMENTS

INVESTMENT IN PLANT

TOTAL

$

75,516,585.50 $

75,516,585.50

$ _ __;8;;.;.7.;;.6.;.954;;...;.;.;;.95=

$ _ _...;8;;.;.7..;;.6,:.;;.954;;;..;,;.;.95=

$

75,864.75

1,478,001.95

$

75,864.75

43,802.36 3,931.58 664,304.95 1,478,001.95 416,455.70 11,385.71

$

-43,565.90

- - - - - - $ _ _ __.1,_635_.85_

$

-43,565.90 $

1,635.85 $ _ _1..._,553___.,_866_.7_0

18,379.28 1,635.85
$ _ ___,;;2;;.:.,7_1_3_,._76_2_.1..;...3

$

876,954.95 $

-43,565.90 $

1,635.85 $

1,553,866.70 $

75,516,585.50 $

79,107,302.58

-39-

VALDOSTA STATE UNIVERSITY SCHEDULE OF REVENUES CURRENT FUNDS YEAR ENDED JUNE 30 1995

State Appropriations Allotments from the Board of Regents of the University System of Georg~ Regular Special Funding Initiative
Research Consortium
Lottery Proceeds
other Revenues Retained Tuition and Fees Matriculation
other
Federal Grants and Contracts Research and Instruction Student Aid Contract Overhead
State Grants and Contracts Research and Instruction Student Aid Contract Overhead
Private Gifts, Grants, and Contracts Research and Instruction Student Aid Contract Overhead
Endatvmentlncome Research and Instruction Student Aid
Sales and Services of Educational Activities
Sales and Services of Auxiliary Enterprises
other Sources cash Over-Short Donations Extension and Public Service Interest Earned Library Fines Parking Registration and Fines Rents Salvage Sales
other

RESIDENT INSTRUCTION

LOTTERY FOR EDUCATION

UNRESTRICTED AUXILIARY
ENTERPRISES

$ 27,435,624.00 1,268,716.00 102,895.00
_ _ _ _ _ _ $ _ ___,;;,;539=,aooc.;;...;.;._oo;;..
$ 28,807,235.oo $ _ ___,;;,;539=,aoo~-oo;;..

$

12,720,168.94

3,605,514.55

83,548.08

116.55

1,022.92

104,917.15
-247.89 50,000.00 86,234.88
16,538.36 374,246.16
6,381.58 7,788.86 219,357.45
$ 17,275,587.59

$

8,988,250.03

-451.80

5,033.65

2,391.95 $ ___8,'-9_9_5__,2_2_3_._8_3_

$ 46,082,822.59 $

539,800.00 $ ===8=,995:::::::::::'=223==.83=

See notes to the financial statements.

-40-

SCHEDULE 10

STUDENT ACTIVITIES

TOTAL

RESTRICTED RESIDENT
INSTRUCTION

TOTAL

$

27,435,624.00

1,268,716.00

102,895.00

539,800.00

$

29,347,035.00

$

27,435,624.00

1,268,716.00

102,895.00

539,800.00

$

29,347,035.00

$

12,720,168.94

$

645,741.25

4,251,255.80

$

12,720,168.94

4,251,255.80

$ 83,548.08

861,604.84 5,887,508.80

861,604.84 5,887,508.80
83,548.08

116.55

1,236,n9.78 2,553,423.57

1,236,n9.78 2,553,423.57
116.55

1,022.92

258,812.66 106,284.01

258,812.66 106,284.01
1,022.92

104,917.15 8,988,250.03

4,520.68 82,349.50

4,520.68 82,349.50
104,917.15
8,988,250.03

184,002.49

-699.69 50,000.00 86,234.88
5,033.65 16,538.36 374,246.16 6,381.58 7,788.86 405,751.89

-699.69 50,000.00 86,234.88
5,033.65 16,538.36 374,246.16 6,381.58 7,788.86 405,751.89

$

829,743.74 $

27,100,555.16 $

10,991,283.84 $

38,091,839.00

$

829,743.74 $

56,447,590.16 $

10,991,283.84 $

67,438,874.00

-41 -

VALDOSTA STATE UNIVERSITY SCHEDULE OF EXPENDITURES BY OBJECT
CURRENT FUNDS
YEAR ENDED JUNE 30 1995

RESIDENT INSTRUCTION

LOTTERY FOR EDUCATION

UNRESTRICTED AUXILIARY
ENTERPRISES

PERSONAL SERVICES
Salaries and Wages Employer's Contributions for:
F.I.C.A. Retirement Group Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance

$ 27,269,090.59
1,879,297.69 2,884,535.94 2,859,963.73
196,013.00 11,755.00
454,294.01

$

3,635,094.20

220,797.18 347,973.31 527,927.94

$ 35,554,949.96

$

4,731,792.63

OPERATING EXPENSES

Travel Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities 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 Non-Inventory Computer Charges Software Real Estate Rentals Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Contracts Equipment Motor Vehicle Purchases Lease/Purchase of Equipment Inventory

$

485,088.88

54,809.12

1,461,668.65

305,711.83

895,292.80

80,919.05

52,721.90

111,419.00 1,764,541.00
1,500.00 436,599.19 135,798.90

348,060.71 9,016.76 70,843.21
218,400.00 641,445.81

271,822.24 328,425.n

46,187.00 186,504.22 1,227,763.02

$

68,185.22

33,127.39

661,527.76

69,789.65

421,314.28

153,490.61

61,562.10

550,374.02
590,386.15 55,061.20
25,417.27
4,064.29 11,825.00 248,833.89
103,675.67 138,760.13

11,529.85 8,597.94

$

9,134,539.06

$

3,217,522.42

OTHER
EQUIPMENT, TECHNOLOGY ANO CONSTRUCTION TRUST FUND Other Costs Supplies and Materials Rents (Other than Real Estate) Equipment Non-Inventory Software Equipment Inventory

$

16,912.18

144.00

7,184.10 2,050.00

472,707.36

$

498,997.64

See notes to the financial statements.

-42-

STUDENT ACTIVITIES

TOTAL

RESTRICTED RESIDENT
INSTRUCTION

TOTAL

$

217,797.55 $ 31,121,982.34 $

415,338.93 $ 31,537,321.27

10,496.72 17,215.90 22,500.69

2,110,591.59 3,249,725.15 3,410,392.36
196,013.00 11,755.00
454,294.01

25,658.85 37,500.32 23,919.35

2, 136,250.44 3,287,225.47 3,434,311.71
196,013.00 11,755.00
454,294.01

$

268,010.86 $ 40,554,753.45 $

502,417.45 $ 41,057,170.90

$

9,056.56 $

562,330.66 $

45,183.30 $

607,513.96

90.27

88,026.78

88,026.78

116,907.66

2,240,104.07

677,490.12

2,917,594.19

391.00

375,892.48

7,317.59

383,210.07

1,316,607.08

1,316,607.08

38,689.70

273,099.36

18,141.31

291,240.67

114,284.00

114,284.00

476.00
145,973.40 34,309.76

111,419.00 2,315,391.02
1,500.00 1,172,958.74
225,169.86

334,252.89 8,629,565.88
120,495.09 30,575.98

445,671.89 10,944,956.90
1,500.00 1,293,453.83
255,745.84

3,407.43 1,329.00 12,082.14

376,885.41 9,016.76
76,236.50 230,225.00 902,361.84

34,894.00 26,014.06 5,987.87

411,TT9.41 9,016.76
102,250.56 230,225.00 908,349.71

166,9TT.16

542,475.07 467,185.90

227,733.22

no,208.29 467,185.90

33,569.93

46,187.00 198,034.07 1,269,930.89

331,215.08

46,187.00 198,034.07 1,601, 145.97

$

563,260.01 $ 12,915,321.49 $ 10,488,866.39 $ 23,404,187.88

$

16,912.18

144.00

7,184.10 2,050.00

472,707.36

$

498,997.64

$

16,912.18

144.00

7,184.10 2,050.00

472,707.36

$

498,997.64

-43-

VALDOSTA STATE UNIVERSITY SCHEDULE OF EXPENDITURES BY OBJECT
CURRENT FUNDS
YEAR ENDED JUNE 30 1995

~
SPECIAL FUNDING INITIATIVES Personal Services Salaries and Wages Employer's Contributions for: F.1.C.A. Retirement Group Insurance
Other Costs Travel Motor Vehicle Expense Supplies and Materials Repairs and Maintenance other Expenses Publications and Printing Equipment Non-Inventory Software Real Estate Rentals Per Diem, Fees and Contracts Per Diem and Fees Equipment Inventory
RESEARCH CONSORTIUM Personal Services Salaries and Wages Employer's Contributions for: F.1.C.A. Retirement Group Insurance
other Costs Travel Supplies and Materials Rents (other than Real Estate) other Operating Expenses Publications and Printing Equipment Non-Inventory Software Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Equipment Inventory

RESIDENT INSTRUCTION

LOTTERY FOR EDUCATION

UNRESTRICTED AUXILIARY
ENTERPRISES

$

608,239.70

45,579.24 64,226.40 37,674.35

$

755,719.69

4,191.74 82.56
58,409.11 45,283.64 58,966.01
1,024.44

15,074.34 90,465.83 26,000.00

3,467.50

210,031.14

$

1,268,716.00

$

24,646.24

1,117.14 701.59 32.43

$

26,497.40

3,359.71 8,661.97
119.96 17,173.69
2,795.52

1,757.58 425.10 96.21

2,224.07

51,867.54

$

114,978.75

See notes to the financial statements.

$ 46,073,183.n s

498,997.64 $

7,949,315.05

-44-

SCHEDULE 11

STUDENT ACTIVITIES

TOTAL

RESTRICTED RESIDENT
INSTRUCTION

TOTAL

$

608,239.70

45,579.24 64,226.40 37,674.35

$

755,719.69

4,191.74 82.56
58,409.11 45,283.64 58,966.01
1,024.44

15,074.34 90,465.83 26,000.00

3,467.50

210,031.14

$

1,268,716.00

$

608,239.70

45,579.24 64,226.40 37,674.35

$

755,719.69

4,191.74 82.56
58,409.11 45,283.64 58,966.01
1,024.44

15,074.34 90,465.83 26,000.00

3,467.50

210,031.14

$

1,268,716.00

$

24,646.24

1,117.14 701.59 32.43

$

26,497.40

3,359.71 8,661.97
119.96 17,173.69 2,795.52

1,757.58 425.10 96.21

2,224.07

51,867.54

$

114,978.75

$

24,646.24

1,117.14 701.59 32.43

$

26,497.40

3,359.71 8,661.97
119.96 17,173.69 2,795.52

1,757.58 425.10 96.21

2,224.07

51,867.54

$

114,978.75

$

831,270.87 $ 55,352,767.33 $ 10,991,283.84 $ 66,344,051.17

-45-

VALDOSTA STATE UNIVERSITY SCHEDULE OF EXPENDITURES BY OBJECT
PLANT FUNDS YEAR ENDED JUNE 30, 1995

SCHEDULE "12"

CAPITAL OUTLAY
Supplies and Materials other Expenses Equipment
Non-Inventory Software Per Diem, Fees and Contracts
Contracts Equipment
Motor Vehicle Purchases Inventory

UNEXPENDED REGULAR

RENEWALS AND REPLACEMENTS

TOTAL

$

$

21,627.46

495.00

1,357,757.94
30,237.50 154,876.00

979.80 $
61,768.01 805.00
56,011.00 25,687.00 101,718.70

979.80 21,627.46
62,263.01 805.00
1,413,768.94
55,924.50 256,594.70

$

1,564,993.90 $

-============-- 246,969.51 $

1,811,963.41

See notes to the financial statements.

-46-

VALDOSTA STATE UNIVERSITY RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL
YEAR ENDED JUNE 30, 1995

SCHEDULE 13"

Totals per Annual Supplement

Adjustments Bostick, Horne, Saito, Stentz, Tyler, Winkler,

Patrick Shawn William Junko Brent D. DavidW. Kristen

Unlocated Variance

Totals per Report

DISTRIBUTION BY FUND
CURRENT FUNDS Unrestricted Resident Instruction Regular Special Funding Initiative Research Consortium Auxiliary Enterprises Student Activities Restricted Resident Instruction

SALARIES AND WAGES

$

32,172,652.28 $

TRAVEL 615,898.64

-163.20 -2,281.87

-37.00 -268.01 -323.50
-52.92
-151.80

$

32,170,207.21 $ ===6=1=5'!:::::065:::::::::::::.4::i:::1

$

27,269,090.59 $

608,239.70

24,646.24

3,635,094.20

217,797.55

415,338.93

485,088.88 4,191.74 3,359.71
68,185.22 9,056.56
45,183.30

$

32,170,207.21 $

615,065.41

===::::::::::==

See notes to the financial statements.

-47-

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

VALDOSTA STATE UNIVERSITY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995

STATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR QUESTIONED COSTS

The status of findings disclosed in the audit report for the year ended June 30, 1994, is summarized below:

Audit Control Number

Status ofFinding

551-94-01 551-94-02 551-94-03 551-94-04 551-94-05 551-94-06 551-94-07 551-94-08 551-94-09 551-94-10

See Audit Control Number 551-95-02 See Audit Control Number 551-95-03 Corrective Action Implemented See Audit Control Number 551-95-05 See Audit Control Number 551-95-01 Corrective Action Implemented Corrective Action Implemented See Audit Control Number 551-95-04 Corrective Action Implemented See Audit Control Number 551-95-06

PRIOR YEAR

AUDIT FOLLOW-UP/RESOLUTION Inadequate Calculations ofRepayments Federal Financial Assistance Federal Perkins Loan Program (CFDA 84.038) Questioned Cost: $192.00 Audit Control Number 551-95-01

The audit reports for the years ended June 30, 1992, and June 30, 1993, noted repayments totaling $1,019.00 that were not requested from three students due to improper application of the University's repayment policy. During the year under review, the University produced additional information to resolve these costs for two ofthe students involved. However, a repayment of$192.00 requested from one student had not been resolved as of the date of this audit.

The University should secure repayment from the student identified above for refund to appropriate grantors.

PRIOR YEAR/CURRENT YEAR

ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS -Federal Financial Assistance Inadequate Separation ofDuties Audit Control Number 551-95-02

The audit report for the year ended June 30, 1994, disclosed that Valdosta State University did not provide for adequate separation of duties in the performance of accounting functions and related procedures for the control category Expenditures/Liabilities/Disbursements. For the year under review, our audit noted no

VALDOSTA STATE UNIVERSITY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Audit Control Number 551-95-02
improvement regarding adequate separation ofemployee duties for this control category. This deficiency was a result of management not assigning employee duties in a manner to adequately safeguard assets and/or promote efficiency and accuracy in key accounting functions.
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 of Education U. S. Department ofEnergy U. S. Department ofHealth and Human Services
REVENUE/RECEIVABLES/RECEIPTS Tuition and Fees Financial Statements Audit Control Number 551-95-03
The audit reports for the years ended June 30, 1989, through June 30, 1994, 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 1995 registration noted that of twenty-five students sampled, whose registration had been canceled for nonpayment of fees, nine had been reinstated as of the date of our audit. This discrepancy occurred due to management's decision to allow students to defer fee payments. This practice is in violation of Section 704 of the Board of Regents' Policy Manual which states, in part, that payment of fees 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.

VALDOSTA STATE UNIVERSITY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
GENERAL LEDGER Inadequate Accounting Procedures Financial Statements Audit Control Number 551-95-04
The audit report for the year ended June 30, 1994, noted that accounting procedures of Valdosta State University were found to be inadequate in several areas. For the year under review, deficiencies were noted as follows:
(I) Bank reconciliations as presented for examination were found to be inadequate as follows:
(a) In eleven months during the fiscal year, unlocated differences were noted on reconciliations ofthe operating account.
(b) In five months during the fiscal year, unlocated differences were noted on reconciliations ofthe payroll account.
(c) Bank reconciliations were not prepared during fiscal year 1995 for the Jekyll Island Theater account.
(2) Subsidiary student deposit records for the Auxiliary Enterprises Fund did not reconcile to the general ledger control accounts.
(3) Accounts receivable recorded on the general ledger for the Restricted Funds totaled $1,182,239.50. An examination of these receivables revealed that $89,518.55 was not supported by appropriate documentation.
These deficiencies were the result of management improperly implementing procedures and/or not having adequately trained staffto ensure proper maintenance of accounting records.
Procedures should be implemented by the University to ensure that the deficiencies identified above are corrected.

VALDOSTA STATE UNIVERSITY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995

PRIOR YEAR/CURRENT YEAR

FEDERAL FINANCIAL REPORTS Federal Cash Transaction Report Not Reconciled Federal Financial Assistance Audit Control Number 551-95-05

The audit reports for the years ended June 30, 1990, through June 30, 1994, disclosed that the expenditures reported on Valdosta State University's final monthly fiscal years' 1990, 1991, 1992, 1993, and 1994 Federal Cash Transaction Report for the U. S. Department of Education could not be reconciled to accounting records.

For the year under review, expenditures reported on the University's final monthly fiscal year 1995 Federal Cash Transaction Report to the U. S. Department ofEducation could be reconciled to the accounting records. However, a review of the Federal Transactions Report (Form PMS 272-A) submitted by Valdosta State University to the U. S. Department ofEducation disclosed a difference of$98,900.23 between "cash on hand end of period" and ending cash per the University's accounting records as noted below:

Report Date

Cash on Hand

End ofPeriod Ending Cash

Reported on per Accounting

Form PMS 272

Records

Difference

June 30, 1995

$ -350, 102.61 $ -251,202.38 $ 98,900.23

This difference occurred due to cash transactions reported on the Federal Transactions Report (Form PMS 272-A) not being reconciled to the accounting records in prior years.

Procedures should be established to ensure that all Federal Cash Transactions Reports are reconciled to the University's formal accounting records, and documentation should be maintained reflecting this reconciliation. The University should contact its grantor agency regarding these unreconciled differences.

Memorandum Only Federal Financial Assistance Programs Affected and CFDA Number:
84.007 Supplemental Educational Opportunity Grants 84.021 Fulbright-Hays-Group Projects Abroad 84.026 Media and Captioning For Individuals with Disabilities 84.029 Special Education - Personnel Development and Parent Training 84.033 Federal Work-Study Program 84.063 Pell Grant Program 84.180 Technology, Educational Media and Materials for Individuals with Disabilities 84.219 Student Literacy Corps and Student Mentoring Corps

VALDOSTA STATE UNIVERSITY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
SPECIAL TESTS AND PROVISIONS Improper Distribution ofRefunds Federal Financial Assistance Pell Grant Programs (CFDA 84.063) Federal Family Education Loans (CFDA 84.032) Questioned Cost $518.99 Audit Control Number 551-95-06
The audit report for the year ended June 30, 1994, noted deficiencies in the University's compliance with Federal requirements relative to the University's financial aid refund procedures. These deficiencies continued to exist during the year under review, as follows:
(1) The prior year audit report noted that $461.20 was refunded in error to a student. These funds should have been returned to the Pell Grant Program. During the year under review, a refund of $461.20 had been requested from the student but had not been received as of the date ofthis audit.
(2) The prior year audit report disclosed that financial aid refunds were returned to Federal programs in a manner inconsistent with the prescribed order of distribution. During the year under review, an examination offour financial aid refunds made by Valdosta State University revealed that one refund was not properly distributed to student financial programs as prescribed in Chapter 3, Section 4 of the Federal Student Financial Aid Handbook. The University's failure to distribute these refunds in the proper order resulted in $57.79 not being returned to the Federal Family Educational Loan lender. This deficiency occurred due to University personnel applying a pro rata share of the refund to a grantor agency instead of distributing the refund in the proper order mandated by Chapter 3, Section 4 of the Federal Student Financial Aid Handbook.
Procedures should be implemented by the University to ensure that refunds are returned to Federal programs
in the order prescribed in the Federal Student Financial Aid Handbook. The University should also secure reimbursement of$461.20 from the student identified above for refund to the U. S. Department ofEducation and should contact the U. S. Department ofEducation regarding resolution of the $57.79 questioned cost.

VALDOSTA STATE UNIVERSITY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995

CURRENT YEAR

EXPENDITURES/LIABILITIES/DISBURSEMENTS Salary Listing Not Reconciled Accounting Records Financial Statements Audit Control Number 551-95-07

For the year under review, tests of payroll procedures revealed that the salary listing as submitted by the University to the Georgia Department of Audits did not reconcile to the University's general ledger. An unlocated difference of $2,281.87 existed at June 30, 1995. This deficiency occurred as a result of management's failure to reconcile salary information on a quarterly basis.

The University should establish controls to ensure that the salary listing submitted to the Georgia Department of Audits is reconciled with the general ledger.

AUDIT DISTRIBUTION/RESOLUTION Reports Not Submitted to Grantor Agencies Federal Financial Assistance Audit Control Number 551-95-08

Our audit of the fiscal year 1994 financial statements of Valdosta State University, an organizational unit of the State of Georgia reporting entity, was performed in conjunction with the Statewide Single Audit of the State of Georgia. During the year under review, the University failed to furnish a copy of the University's fiscal year 1994 audit report to the following grantor agencies:

CFDANumber

Grantor

84.048 93.102

North Georgia Regional Educational Service Agency Vocational Education - Basic Grants To States
Thomas County MHMRSA Area Services Demonstration Grants for Residential Treatment for Women and Their Children

The University should ensure that reports and corrective action plans are submitted to grantor agencies in accordance with report distribution requirements.

VALDOSTA STATE UNIVERSITY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR
ELIGIBILITY Deficiencies in Awarding/Disbursing Student Financial Aid Federal Financial Assistance Pell Grant Program (84.063) Questioned Cost $167.00/-$67.00 Audit Control Number 551-95-09
For the year under review, a sample of fifty-one students receiving Pell Grants disclosed two deficiencies in awarding and disbursing student financial aid as follows:
(1) One student was disbursed student financial aid in excess of her eligible award, which resulted in an overpayment of$167.00 from the Pell Grant Program. Federal Regulation (34 CFR 690.62) states that the amount of a Student's Pell Grant for an academic year is based upon the payment and disbursement schedules published by the U. S. Department of Education each award year. This overpayment occurred due to an adjustment of the expected family contribution which decreased the maximum allowable amount the student was eligible to receive.
(2) One student was not disbursed student financial aid in accordance with her eligible award which resulted in an underpayment of$67.00 ofPell Grant Program funds. Federal Regulation (34 CFR 690.62) states that the amount of a Student's Pell Grant for an academic year is based upon the payment and disbursement schedules published by the U. S. Department ofEducation each award year. This underpayment occurred due to an adjustment of the expected family contribution which increased the allowable amount the student was eligible to receive.
The University should establish procedures to ensure that financial aid awards are based on student's eligibility for Student Financial Aid Programs and that awards are made in accordance with appropriate Federal regulations. The University should contact the U. S. Department ofEducation regarding the resolution of these questioned costs.

VALDOSTA STATE UNIVERSITY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR
SPECIAL TESTS AND PROVISIONS Failure to Delay Loan Proceeds Federal Financial Assistance Federal Family Education Loans (CFDA 84.032) Audit Control Number 551-95-10
For the year under review, our examination revealed two instances in which the University did not delay the disbursement to first-year, first time undergraduate Stafford borrowers for 30 days after the first day of a student's program of study. Chapter 10 of the Federal Student Financial Aid Handbook states that a school may not deliver the first installment of Stafford Loan proceeds to a first-year undergraduate student borrower who has not previously received a Stafford Loan until 30 days after the first day of the student's program of study (loan period). This deficiency occurred as a result of the University's unawareness of the requirement.
The University should implement the necessary procedures to ensure that distributions ofloan proceeds are in accordance with the Federal Student Financial Aid Handbook.
SPECIAL TESTS AND PROVISIONS Disbursement in Excess ofNeed Federal Financial Assistance Federal Family Education Loans (CFDA 84.032) Questioned Cost $729.60 Audit Control Number 551-95-11
For the year under review an examination of 40 student files disclosed that one student was disbursed a total of$729.60 in Federal Family Education Loans in excess ofthe eligible award. This overpayment occurred due to the University disbursing three installments of $729.60 instead of the approved two installments as listed in the student's Loan Guarantee and Disclosure Statement.
Procedures should be implemented by the University to ensure that students are not disbursed financial aid in excess of their awards. Reimbursement of $729.60 should be secured from the individual involved and deposited to the University's operating account.

VALDOSTA STATE UNIVERSITY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR
SPECIAL TESTS AND PROVISIONS Incorrect Refund Calculations Federal Financial Assistance Federal Family Education Loans (CFDA 84.032) Amount: $119.00 Audit Control Number 551-94-12
For the year under review, our examination revealed an error in calculating the amount of student financial aid to be retained by the University for a withdrawn student. As a result of this error, an additional $119.00 is due to the Federal Family Educational Loan lender. The error occurred because University personnel applied the incorrect refund percentage, based on the actual period of attendance by the student, as stated in the University's refund policy.
The University should ensure that all refunds are correctly calculated and returned to the appropriate programs. The College should contact the U.S. Department ofEducation regarding resolution of this finding.