Audit report, state of Georgia, Valdosta State University, Valdosta, Georgia, year ended June 30, 1996

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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, 1996

VALDOSTA STATE UNIVERSITY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

FINANCIAL STATEMENTS

A COMBINED BALANCE SHEET

ALL FUND GROUPS

2

B COMBINED STATEMENT OF CHANGES IN FUND BALANCES

ALL FUND GROUPS

4

C STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES,

AND OTHER CHANGES

6

D NOTES TO THE FINANCIAL STATEMENTS

7

SUPPLEMENTARY INFORMATION

E COMBINING BALANCE SHEET

CURRENT FUNDS - UNRESTRICTED

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 ACCOUNTSRECENABLE

35

8 CHANGES IN INVESTMENT IN PLANT

36

9 SCHEDULE OF FUND BALANCES

CURRENT FUNDS AND PLANT FUNDS

38

VALOOSTA 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

SECTIONll 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
October 30, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly of Georgia Members ofthe Board ofRegents ofthe University System of Georgia
and Honorable Hugh C. Bailey, President Valdosta State University
INDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the accompanying financial statements (Exhibits A through D) of Valdosta State University as ofand for the year ended June 30, 1996. These financial statements are the responsibility ofthe University's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in Note 1 to the financial statements, Georgia Law and State budgetary policy require the 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.
As disclosed 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 $1,805,100.26 as of June 30, 1996, and the net change in fund balance for the year ended June 30, 1996, would be decreased by $101,643.17.
96ARL-62

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 ofJune 30, 1996, and the changes in fund balances and the current operatiDg funds revenues, expenditures, and other changes for the year then ended in conformity with generally accepted accounting principles.
Our audit was made for the purpose offorming an opinion on the financial statements taken as a whole. The accompanying supplementary information (Exhibits E through G and Schedules 1 through 12) is presented for purposes of additional analysis and is not a required part of the financial statements of Valdosta State University. Such information has been subjected to the auditing procedures applied in the audit ofthe financial statements and, in our opinion, except for the effects of the matters discussed in the third and fourth paragraphs, such information is fairly presented in all material respects in relation to the financial statements taken as a whole.

CLV:cm 96ARL-62

Claude L. Vickers State Auditor

F~ANCLALSTATE~TS
- 1-

VALDOSTA STATE UNIVERSITY COMBINED BALANCE SHEET ALL FUND GROUPS JUNE 30, 1996

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

$ 1,637,863.48 $ 864,789.43 $ 290,844.88

712,738.29

3,519,522.80

1,052,034.86

772,263,47

80,839,77

3,231,586.99

$ 6,435,292,00 $ 4,384,312.23 $ 1,342,879.74

$ 2,337,372.17 $ 2,942.27

77,627.18

2,918,850.72

3,080,673.59

$ 5,259,165.16 $ 3,158,300.77

$ 1,043,920.36 298,959.38

$ 1,226,011.46 $ 1,176,126.84 $ 1,176,126.84 $ 1,226,011.46 $ 1,342,879.74
$ 6,435,292.00 $ 4,384,312.23 $ 1,342,879.74

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)

$ 2,892,349.09 $

936,708.66 $

1,850,142.77

$

42,203.48

_ _ _ _ _ _ $ 82,348,261.42

653,993.63 $ 2,778.27

9,126,691.94 5,329,277.70
772,263.47 80,839.77
3,231,586.99 82,348,261.42

$ 2,892,349.09 $ 978,912.14 $

1,850,142.77 $ 82,348,261.42 $ 656,771.90 $ 100,888,921.29

$ 999,088.49 $
$ 150,913.40 $ 150,913.40 $ 999,088.49 $

14,843.00
$ 14,843.00 $

$
119,330.06 119,330.06 $

277,053.52 $ 3,705,984.36 2,942.27

379,718.38

2,918,850.72 379,718.38
3,231,586.99 119,330.06

656,771.90 $ 10,358.412.78

$ 2,129,387.03 609,536.61 2,512.05

$ $ 2,741,435.69 $

-20,176.35 $ -20,176.35 $

$ 82,228,931.36 1,835,299.77 1,835,299.77 $ 82,228,931.36

$ 1,043,920.36 298,959.38
2,129,387.03 609,536.61 2,512.05
82,228,931.36 . 1,226,011.46 2,991,250.26
$ 90,530,508.51

$ 2,892,349.09 $ 978,912.14 $

1,850,142.77 $ 82,348,261.42 $ 656,771.90 $ 100,888,921.29

-3-

VALDOSTA STATE UNIVERSITY COMBINED STATEMENT OF CHANGES IN FUND BALANCES
ALL FUND GROUPS YEAR ENDED JUNE 30. 1996

REVENUES AND OTHER AOO!T!ONS
Unrestricted Current Fund RevenlMS State Appropriations
Regular Lottery Proceeds MiIjor RepelrsIRehabilitation Funds Feder8I Grants and Contracts State Grants and Contracts Private Gills, Grants, and Contracts IIlWJlItrnent Income Endawmenl 0Iher
Realized Gains on m-tmenls
Interest on Loans R~bIe Adju.tmenla
PrIor Years' Expenditures/Accounts Payable PrIor Years' ChecIcs Voided
Funded t" the Board of Regents of the
UniYenlily System of Georgia Prior Year's Unraatricted Fund Balance (Def'1CIt)
Expended for Plant Facilities Current Funds Plant Funds Unexpended R_1s and Replacernenta Georgia State Financing and Investment Commlaalon
0Iher Additions Reccwery of PrIor Years' Cancelled Loans
Total RevenlMS and 0Iher Additions
EXPENDITURES AND OTHER DEDUCTJQNS
Educational and General Expenditures Auxiliary Enterprises Expenditures Indirect Costa R8COWII1Id Refunded to Grantors RemiUancea to the Board of Regents of the
UniYenlily System of Georgia Prior Year's Unraatricted Fund Balance (Surplw)
Adjustments PrIor Years' Revenues/Accounts R~bIe
Loans Assigned to Federal Government Loan Cancellations and WrlteeOffs Administrative and Collection Costs Expended for Plant Facilities
CapItalized Noncapitalized DisposalslOelelionslAdjuslments
Total Expenditures and Other Deductions
TRANSFERS BETWEEN FUNDS
Nonmandatory R_1a and Replacernenta Capital Projects
Total Transfers Between Funds
Net IncreaseI(Decrease) for the Year
FUND BALANCES JULY 1. 1995
FUND BALANCES JUNE 30. 1996
The notes to the financial statements are an integral part of this statement.
-4-

CURRENT FUNDS UNRESTRICTED RESTRICTED

LOAN
FUNDS

$ 85,432.535.33

$ 29,932.732.31 $ 5.867.427.52 536.517.45

-349,215.49 -1116.00

423,196.45

13,571.21

26,887.23

33,190.87 39.96

$ 85,485,785.98 $ 38.559,873.73 $

50,492.05 -258,451.00

$ 55,331,838.28 $ 38,020,925.15 9,162,349.75 151.731.22 38,180.85

81.945.18 4.872.95

$ 22,362.84 58,017.08 34,822.45

$ 84.580.808.16 $ 38,210,817.22 $ 115.202.37

$

-830.847.16

-299,811.28

$

-930.858.....

$

-25,898.84 $ 349,056.51 $ -373,653.37

1.201,825.48

876,954.95 1,716,533.11

$ 1,176,126.84 $ 1,226,011.46 $ 1,342,879.74

EXHIBIT"B"

ENDOYtIMENT ANDSMLAR
FUNDS

UNEXPENDED

PLANT FUNDS RENEWALS AND REPLACEMENTS

INVESTMENT IN PLANT

TOTAL (Memorandum
Only)

S 86,n5.00 $ 188,000.00 961,800.00

S

7,856.09

14,541.07

396,181.31

43,565.90

S 22.397.16 S 1,676.322.21 S

0.00 S

$ 65,432,535.33

69,383.59

86,n5.00 188,000.00 961,800.00 29.583.516.82 5.667.427.52 613,561.13

423,196.45 409,752.52
14,541.07 26.897.23

33.190.67 39.96

43,565.90

4,339,895.43

4,339.895.43

1,898,813.27 207,539.55
1.000,115.38

1.898.813.27 207,539.55
1,000,115.38

50,492.05

0.00 $ 7.515.747.22 $ 110.981.655.28

$

0.00

S 91.352,563.43 9.162,349.75 151,731.22 38,160.85

S

1.635.85

63.581.03

4,872.95 22,362.84 58,017.08 34,822.45

1,898.813,27 S 53.930,67

207.539.55 141.874.54
S

803.401.36

2.106,352.82 195,805.21 803.401.36

$

0.00 $ 1.954.379.79 S

349,414.09 S 803.401.36 S 103.994.020.99

S

S

S

22.397.16 S

2.719.038.53

S 299.811.28
299.811.28 S
21,753.70 S
-'11.930.05

630,847.16

$

0.00

0.00

630.847.16

S

0.00

281,433.07 S 6,712.345.86 S 6.987.634.29

1.553.866.70 75.516.585.50 83.542.874.22

S 2.741.435.69 S -20.176.35 S' 1.835.299.n S 82.228.931.36 $ 90.530.508.51

-5-

VALDOSTA STATE UNIVERSITY STATEMENT OF CURRENT FUNDS REVENUES. EXPENDITURES.
AND OTHER CHANGES YEAR ENDED JUNE 30.1996

EXHIBIT "C"

UNRESTRICTED RESTRICTED

TOTAL (Memorandum
Only)

REVENUES

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

$ 34,966,026.74

$ 34,966,026.74

18,979,190.76

18,979,190.76

143,404.31 $ 29,744,989.81

29,888,394.12

1,175.59 5,654,270.87

5,655,446.46

7,151.32

534,072.08

541,223.40

87,592.39

87,592.39

99,331.99

99,331.99

10,181,874.76

10,181,874.76

1,054,379.86

1,054,379.86

Total Revenues

$ 65,432,535.33 $ 36,020,925.15 $ 101,453,460.48

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

$ 28,044,625.77 $ 1,104,080.43 $ 29,148,706.20

5,811,181.51

370,569.66

6,181,751.17

3,882,821.24

31,775.05

3,914,596.29

10,473,484.85

1,100,476.10 . 11,573,960.95

5,092,925.91

5,092,925.91

2,026,599.00 33,414,023.91

35,440,622.91

3,295,122.39 2,241,958.51
582,493.26 2,005,838.44 1,036,937.15

3,295,122.39 2,241,958.51
582,493.26 2,005,838.44 1,036,937.15

Total Expenditures

$ 64,493,988.03 $ 36,020,925.15 $ 100,514,913.18

OTHER TRANSFERS AND ADDITIONS/(DEDUCTIONS)

Excess of Restricted Receipts over Transfers to Revenues

$ 387,217.36 $

387,217.36

Refunded to Grantors

-38,160.85

-38,160.85

Transfers for Renewals and Replacements

$

-630,847.16

-630,847.16

Transfers for Capital Projects

-299,811.28

-299,811.28

Prior Period Adjustments (Net)

28,357.68

28,357.68

Remittances to the Board of Regents of the

University System of Georgia

Prior Year's Unrestricted Fund Balance (Surplus)

-61,945.18

-61,945.18

Total other Transfers and Additions/(Deductions) $

-964,245.94 $ 349,056.51 $

-615,189.43

Net Increasel(Decrease) in Fund Balances

$

-25,698.64 $ 349,056.51 $

3.2.3.iio!o3' _5.7..;,;8;;..7..

The notes to the financi.al statements are an integral part of this statement.
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VALDOSTA STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXlDBIT "0"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

REPORTING ENTITY

Valdosta State University is one ofthirty-four (34) State supported member institutions of higher education

in Georgia which comprise the University System ofGeorgia, 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 offund 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, e.g., instruction, auxiliary enterprises, and student activities.

RESTRICTED - The fund used to record externally restricted funds which may only be utiliz.ed 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. 1996

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 ofgift 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 ofa stated period oftime or the occurrence ofa particular event, all or part ofthe principal may be expended. While quasi-endowment funds have been established by the University for the same purposes as endowment funds, any portion ofquasi-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 of institutional properties.
INVESTMENT IN PLANT - The fund which shows the total amounts representing the book value ofall physical properties owned by the University. Net Investment in Plant is an equity account showing the total book value ofphysical properties belonging to the University less the amount of any indebtedness to others.
AGENCY FUNDS
The fund used to account for resources held by the University as custodian or fiscal agent for individual students, faculty, staffmembers, 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 re~enues are recorded when available and measurable to finance expenditures ofthe fiscal period.

- 8-

VALDOSTA STATE UNIVERSITY
NOTESTOTHEFmANCIALSTATE~NTS
JUNE 30. 1996

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTmG POLICIES
BASIS OF ACCOUNTING Contractual obligations for goods and services which have not been received at the end ofthe fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. This accounting practice causes expenditure-driven grant revenues to be accrued based, in part, on the unexecuted portion of contracts for goods and services. The recognition of encumbrances as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations ofthe State of Georgia, but is not . consistent with generally accepted accounting principles, which provide for the recording of encumbrances as a reservation offund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles.
Compensated absences represent obligations of the University relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulated annual leave in which payment is probable and can be reasonably estimated. The compensated absences liability of $1,805,100.26 and the related current year expenditure of$101,643.17 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 ofthe 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 of the financial statements.
To the extent that Current Funds and Plant Funds are used to finance plant assets, the amounts so provided are accounted for as expenditures. The balances shown on the Combined Balance Sheet as Net Investment in Plant reflect the accumulated expenditures made for plant facilities through Current Funds and Plant Funds and also include expenditures made for plant facilities expended by the Georgia State Financing and Investment Commission on behalf ofthe University. 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.
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 19951996. The appropriated budget covers current funds and plant funds, except for Auxiliary Enterprises and
- 9-

VALDOSTA STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BUDGET 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 organizational units receive Federal funds and other funds directly and include these funds in the budget filed with the Administrative Central Office.

A comparison ofanticipated 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 Sponsored Operations
Capital Outlay

$ 563.974.75 $ 129378.03

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 ofdemand deposit accounts.

ACCOUNTSRECENABLE Accounts receivable consist of allotments due from the Board of Regents of the University System of Georgia - Administrative Central Office, reimbursements 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 of consumable supplies are recorded on the consumption method and are valued at cost on the Combined Balance Sheet using the first-in, first-out method.

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

PREPAID ITEMS Prepaid items are payments made to vendors in advance ofthe receipt of goods and services that will benefit periods subsequent to the balance sheet date.

- 10 -

VALDOSTA STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
MEMORANDUM ONLY - TOTAL COLUMNS The total columns on the financial statements are captioned "Memorandum Only" because they do not represent consolidated financial infonnation and 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 anyone or more ofthe following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59:
(1) Bonds, bills, certificates ofindebtedness, notes, or other direct obligations ofthe United States or ofthe State of Georgia.
(2) Bonds, bills, certificates ofindebtedness, notes, or other obligations ofthe counties or municipalities ofthe State of Georgia.
(3) Bonds ofany public authority created by the laws ofthe State ofGeorgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose.
(4) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia.
(5) Bonds, bills, certificates ofindebtedness, notes, or other obligations ofa subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest, or 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.
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 ofRegents ofthe University System of Georgia) the option of exempting demand deposits from the collateral requirements.

- 11 -

VALDOSTA STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JU,NE 30. 1996

EXHIBIT "0"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES The treasurer ofthe Board ofRegents is respol1S1ble for all details relative to furnishing the required depository protection for all units ofthe 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, 1996, 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

Bank Balances

Risk Categories

2

3

$ 5,245 766,71 $11.066.84062 $ 220,217 15 $ 44930,64 $10801 692 83

CATEGORIZATION OF INVESTMENTS Investments are summarized below:

Type ofInvestment
Board ofRegents Short-Tcon Investment Fund Total Return Fund
Total Investments

Carrying Amount

Market Value

$ 19,603.76 $ 19,425.71 3,736386,47 4,280.157,41

,

$ 3 755 990.23 $ 4,299 583 12

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

- 12 -

VALDOSTA STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT"D"

NOTE 3: INVESTMENT IN PLANT

The following is a summary ofInvestment in Plant fixed assets as ofJune 30, 1996:

Land

Buildmgs

.

Improvements Other Than Buildings

Egulpment

Library Books and Collections

Total Investment in Plant

$ 1,589,514.21 51,429,606.75 3,298,443.84 16, I 16,292.59 9.914.404.03
$82.348.26 1.42

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 ofa debt to the State of Georgia for the payment of any sums under such agreements beyond the fiscal year ofexecution ifappropriated funds are not available. Ifrenewal 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 ofJune 30, 1996, future minimum lease payments under capital leases are as follows:

Fiscal Year Ending June 30
1997 1998 1999 2000
Total Future Minimum Lease Payments
Less: Amounts Representing Interest
Present Value ofFuture Minimum Lease Payments
NOTE 5: RISK MANAGEMENT

$ 46,535.80 42,327.96 39,378.63 10.591.00
$ 138,833.39
19.503.33
$ 119.330,06

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 ofthe 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 ofloss for claims of the 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, 1996

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 ~ge its risks internally and set aside assets for claim settlement. Accordingly, DOAS processes claims for risk ofloss 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 various state organizations 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 perfonnance 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 pfGeorgia offers its employees a deferred compensation plan in accordance with Internal Revenue Code Section 457. The plan, available to employees ofthe State of Georgia and county health departments, permits such employees to defer a portion 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 will be presented in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1996.
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. 1996

EXHIBIT "D"

NOTE 7: RETIREl\1ENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Plan Description The University's payroll for the year ended June 30, 1996, for employees covered by TRS was $26,538,547.50. The University's total payroll for all employees was $36,944,210.00.
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 of60 years and has at least ten years ofcreditable service, (2) has at least 30 years of creditable service, regardless of age, or (3) has attained the 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 ofyears 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 10,10 for each year or fraction thereofby which the member has less than 30 years of service. The nonnal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits whereby the disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The benefit is based on member's creditable service (minimum of 10 years of service) and compensation up to the date of death or up to the time of disability.
Members become fully vested after ten years of service. If a member terminates with less than ten years of seIVice, no vesting ofemployer 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 actuaIy. For fiscal year 1996, 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 1996 amounted to $4,788,616.51, of which $3,461,687.40 was made by the University and $1,326,929.11 was made by employees. These contributions represented 13.04% (University) and 5% (employees) of covered payroll.

- 15 -

VALDOSTA STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXHIBIT "D"

NOTE 7: 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 ofthe Governmental Accounting Standards Board (GASB) that is required to be used for reporting purposes. The standardized measurement is the actuarial present value ofcredited 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 ofthe 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, 1995, which was the latest information available, was as follows:

Total pension benefit obligation

$ 17,442,607,000.00

Net assets available for benefits, at cost

15,857,066,000.00

Unfunded pension benefit obligation

$ 1.585,541.000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1995. Net assets available for benefits were valued as ofthe 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, 1996, were $607,274,559.00. The University's contribution for the year ended June 30, 1996, of$3,461,687.40 was actuarially determined and represented .5700% oftotal contributions made by all participating employers.

Trend Information Historical trend information is presented in the TRS June 30, 1996, financial report. 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, 1996

EXIllBIT "D"

NOTE 7: RETIREMENT PLANS
REGENTS RETIREMENT PLAN
State legislation requires that the employer contribute 4% and the employee contribute 5% ofthe participating employee's earnable compensation. Amounts attributable to all plan contributions are fully vested and nonforfeitable at all times. The University's payroll for employees covered by the Regents Retirement Plan for the year ended June 30, 1996, was $6,724,536.99. The University's total payroll for all employees was $36,944,210.00.
The University and the covered employees made the required contributions of $268,067.27 (4%) and $335,870.17 (5%), respectively.
GEORG~DE~DCONTmrnUTIONPLAN
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 for the purpose of providing 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 of the Employees' Retirement System of Georgia. The University's payroll for the year ended June 30, 1996, for employees covered by GDCP was $1,061,047.40. The University's total payroll for all employees was $36,944,210.00.
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 hislher 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 hislher 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 of employment, the amount ofthe member's account is refundable upon request by the member.
Total contributions made by employees during fiscal year 1996 amounted to $79,579.62 which represents 7.50% of covered payroll. These contributions met the requirements ofthe plan.

- 17 -

VALDOSTA STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT liD"

NOTE 8: LEAVB 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: 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, ifany, 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. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State ofGeorgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1996.
NOTE 10: 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 regular employees ofthe University System of Georgia. It is the policy ofthe Board ofRegents 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 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 ofJune 30, 1996, there were 232 employees who had retired or were disabled that were receiving these postemployment health and life insurance benefits. For the year ended June 30, 1996, Valdosta State University recognized as incurred $428,814.01 of expenditures, which was net of$158,386.25 of participant contributions.

- 18 -

VALDOSTA STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS
ruNE 30, 1996

EXHIBIT"D"

NOTE 11: 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. 1450-02-110723, on which the premium was paid to October 1, 1996. 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 actsby 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 oftheir position or employment.

AIl 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, 1996. 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 and from failure ofits employees to perform faithfully.

NOTE 12: ENROLLMENT

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

Regular Term Fall Quarter, 1995 Winter Quarter, 1996 Spring Quarter, 1996

8,348 8,003 7.559

Average

Summer School, 1995

- 19 -

I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I

SUPPLEMENTARY INFORMAnON - 21 -

VALDOSTA STATE UNIVERSITY COMBINING BALANCE SHEET CURRENT FUNDS - UNRESTRICTED
JUNE 30. 1996

EXHIBIT-E-

ASSETS
cash and cash Equivalents Accounts Receivable Inventories Prepaid Items Due from other Fund Groups

RESIDENT LOITERYFOR AUXILIARY

STUDENT

INSTRUCTION EDUCATION ENTERPRISES ACTIVITIES

TOTAL

$ 102,510.00 $ 280,336.12 65,971.74 ),950.08
2,912,746.)

297,752.77 $ 164,819.74
318,8).59

1,034,308.51 $ 265,946.26 706,291.73 39,024.69

203,292.20 $ 1,637,863.48

1,636.17

712,738.29

772,263.47

865.00

80,839.77

3,231 ,586.99

Total Assets

$ 3.402,514.34 $ 781.413.10$ 2,045,571.19 $ 205,793.37 $ 6,435,292.00

LIABILITIES AND FUND BALANCES

liabilities Accounts Payable Stuclent DeposIts Deferred Revenue tuition and Fees

$ 1,529,133.34 $ 2,942.27
1,766.446.92

Total liabilities

$ 3,298,522.53 $

Fund Balances Unrestricted

103,991.81

773,105.59 $

31,634.38 $

3,498.86 $ 2,337,372.17 2,942.27

983,195.80 169,208.00 2,918,850.72

773,105.59 $ 1,014,830.18 $ 172,706.86 $ 5,259,165.16

8,307.51 1,030,741.01

33,086.51 1,176,126.84

Total liabilities and Fund Balances

$ 3,402,514.34 $ 781,413.10 $ 2,045,571.19 $ 205,793.37 $ 6,435,292.00

see notes to the financial statements.

-22-

VALDOSTA STATE UNIVERSITY COMBINING STATEMENT OF CHANGES IN FUND BALANCES
CURRENT FUNDS - UNRESTRICTED YEAR ENDED JUNE 30, 1996

EXHIBIT -E"

RESIDENT LOITERVFOR AUXlLlARV

STUDENT

INSTRUCTION EDUCATION ENTERPRISES ACTIVITIES

TOTAL

REVENUES AND OTHER ADDITIONS

Unrestricted Current Fund Revenues Adjustments
Prior Vears' Expenditures/Accounts Payable Prior Veers' Checks Voided

$ 52,637,962.76 $ 1,433,688.74 $ 10,211,967.67 $ 1,148,916,16 $ 65,432,535,33

23,923.63 39.96

8,027.85

1,239.19

33,190.67 39.96

Total Revenues and Other Additions $ 52,661 ,926,35 $ 1,433,688,74 $ 10,219,995.52 $ 1,150,155,35 $ 65,465,765,96

EXPENPITURES AND OTHER DEDUCTIONS

Educational and General Expenditures AUldliary Enterprises Expenditures
Remittances to the Board of Regents of the
University System of Georgia Prior Veer's Unrestricted Fund Balance (Surplus)
Adjustments Prior Veers' Revenues/Accounts Receivable

$ 52,642,825.38 $ 1,469,183.59 $
61,945.18 479.98

$ 1,219,629,31 $ 55,331,638.28

9,162,349.75

9,162,349.75

4,387.97

61,945.18

5,00

4,872,95

Total Expenditures and Other Deductions

$ 52,705,250,54 $ 1,469,183,59 $ 9,166,737,72 $ 1,219,634,31 $ 64,560,806.16

TRANSFERS BETWEEN FUNDS

Nonmandatory Renewals and Replacements capital Projects

$ -630,847.16 -299,811 ,28

$ -630,847.16 -299,811,28

Total Transfers Between Funds

$ -930,658.44

$ -930,658,44

Net IncreaseI(Decrease) for the Vear $ -43,324.19 $ -35,494,85 $ 122,599.36 $ -69,478,96 $ -25,698,64

FUNP BALANCES JULV " 1995

147,316,00

43,802,36

908,141,65

102,565,47

1,201,825.48

FUNp BALANCES JUNE 30 1996

$ 103,991,81 $

8,307,51 $ 1,O3O?41,01 $ 33,086,51 $ 1,176,126,84

see notes to the financial statements,

-23-

blcL"~~
fJ 2'-\

VALDOSTA STATE UNIVERSITY COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXpEND'TURES,
AND OTHER CHANGES UNRESTRICTED
YEAR ENDED JUNE 30.1996

EXHIBIT -(3"

Net IncreaseI(Decrease) in Fund Balances

$ -43,324.19 $ -35,494.85 $ 122,599.36 $ -69.478.96$ -25,698.64

see notes to the financial statements.

-25-

VALDOSTA STATE UNIVERSITY SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET
RESIDENT INSTRUCTION YEAR ENDED JUNE 30. 1996

REVENUES
State Appropriations Other Revenues Retained

CURRENT FUNDS UNRESTRICTED RESTRICTED

PLANT FUNDS RENEWALS AND
UNEXPENDED REPLACEMENTS

$ 33,532,338.00

$ 1,048,575.00

19,105,624.76 $ 36.020,925.15

396,181.31 $

.....:0.:.::;00;::.

$ 52.637.962.76 $ 36.020,925.15 $ 1,444,756.31 $

.....;;.O.;.;;.OO~

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

40,009,334.92 $

762,671.40

11,119,823.59
104,241.91 1,409.424.96

35,258,253.75 $ 1,764,743.94 $

349,414.09

Excess of Revenues over Expenditures

$ 52.642.825.38 $ 36.020.925.15 $ 1,764,743.94 $

349.414.09 .

$

-4,862.62 $

0..0..0. $ . -319.987.63 $ _ _..-.3..4.9..,4..1.4..0...9.

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

See notes to the financial statements.

-26-

TOTAL

ADJUSTMENTS

TOTAL

(1)

(Budget Basis)

BUDGET

VARIANCEFAVORABLE (UNFAVORABLE)

$ 34,580,913.00

$ 34,580,913.00 $ 34,580,913.00 $

55.522.731.22 $ -1,3n,373.63 54,145.357.59 53,836,273.00

0.00 309,084.59

$ 90,103,644.22 $ -1,3n,373.63 $ 88,726,270.59 $ 88,417,186.00 $ _ _..;.309,,-,-,-,084.;..;...-..;.59.;..

$ 40,009,334.92 762,671.40

$ 40,009,334.92 $ 40.200,847.00 $

762,671.40

849,593.00

11,119,823.59 $ 35,258,253.75
2,114,158.03 104,241.91
1,409,424.96

-2,026,599.00 .

9,093,224.59 35,258,253.75
2,114,158.03 104,241.91
1,409,424.96

9,159,129.00 34,694,279.00
1,984,780.00 116,909.00
1,411,649.00

191,512.08 86,921.60
65,904.41 -563,974.75 -129,378.03
12,667.09 2,224.04

$ 9O,7n,908.56 $ -2,026,599.00 $ 88,751,309.56 $ 88,417,186.00 $ _ _-334~':..;,;123;;;..;;.;.;;.56..;..

$ -674,264.34 $

649,225.37 $

-25,038.97

$

-25.,.03..8...9..7..

-27 -

VALDOSTA STATE UNIVERSITY
SCHEDULE OF REVENUES AND EXPENPITURES COMPARED TO BUDGET
LOTTERY FOR EDUCATION
YEAR ENDED JUNE 30. 1996

SCHEDULE "2"

REVENUES
State Appropriations Other Revenues Retained

CURRENT FUNDS PlANIFUNDS ADJUSTMENTS

TOTAL

UNRESTRICTED UNEXPENDED

(1)

(Budget Basis)

BUDGET

VARIANCEFAVORABLE (UNFAVORABlE)

$

1,433,688.74 $ 188.000.00

$ 1.621,688.74 $ 1.631.869.00 $

$

35,494.85

35,494.85

39,800.00

-10,180.26 -4,305.15

$

1,433,688.74 $ 188.000.00 $

35,494.85 $ 1,657.183.59 $ 1.671.669.00 $

-14,485.41

EXPENPITURES
Capital Outlay Equipment, Technology and
Construction Trust Fund Special Funding Initiatives

$ 188,000.00 $

$

375,314.59

1,093,869.00

0.00 $ 188.000.00 $ 188,000.00 $
375,314.59 389,800.00 1.093,869.00 1,093,869.00

0.00
14,485.41 0.00

$

1,469,183.59 $ 188,000.00 $

-=0.:.:;.00.;;..$ 1,657,183.59 $ 1,671,669.00 $ _ _--'-14,;.:.,485.=""'.4"'-1

Excess of Revenues over Expenditure $

-35,494.85 $

0.00 $

35.494.85 $-====0.=00=

$

0...0..0.

(1) To reclassify prior year fund balance budgeted as revenue.

See notes to the financial statements.

- 28-

VALDOSTA STATE UNIVERSITY SCHEDULE OF OPERATIONS LOAN FUNDS YEAR ENDED JUNE 30.1996

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, DAR., Loan Fund Nevins, Charles V., Loan Fund other Student Loan Fund Quitman Chapter, U.D.C., Loan Fund Senior Honor Society Loan Fund September 14th Loan Fund War Bond Scholarship Loan Fund Whitehead, Jewell D., Loan Fund

FUND BALANCE ADDITIONSI DEDUCTIONSI FUND BALANCE

JULY 1, 1995 TRANSFERS TRANSFERS

JUNE 30, 1996

$

15,792.51 $ -2,527.31 $

1,446,457.12 -307,808.50

$ 1,462,249.63 $ -310,335.81 $

330.50 $ 107,662.96
107,993.46 $

12,934.70 1,030,985.66
1,043,920.36

$

8,991.20 $

449.53 $

71,933.33

3,679.73

2,081.31

81.44

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

890.37 2,509.74
921.16 41,295.16
474.42 214.58 1,228.68 140.00

$

254,283.48 $ 51,~.81 $

210.75 $ 1,991.45
312.30 1,344.68
718.56 1,277.91
118.30 421.n 807.19
6.00
7,208.91 $

9,229.98 73,621.61
2,162.75 1,334.86
19,065.14 51,235.24 23,318.43 76,092.65
1,351.14 5,319.75 9,465.53 21,352.37 5,409.93
298,959.38

$ 1,716,533.11 $ -258,451.00 $ 115,202.37 $

1,342,879.74

RECONCILIATION OF STUDENT NOTES RECEIVABLE
Balance July 1, 1995 Add:
Loans to Students

Deduct:

Repayment of Loans

Loans Assigned to Federal Government

Loan Cancellations and Write-Offs

For Bankruptcy

$

For Death

For Teaching and Nursing Services

$ 1,300,029.61

34,915.00

$ 1,334,944.61

$ 202,734.43 22,362.84

2,717.61 5,421.64 49,Sn.83

58,017.08

283,114.35

Balance June 30, 1996

$ 1,051,830.26

See notes to the financial statements.

-29-

VALDOSTA STATE UNIVERSITY SCHEDULE OF OPERATIONS
ENDOWMENT AND SIMILAR FUNDS YEAR ENDED JUNE 30, 1996

SCHEDULE "4"

FUND

FUND BALANCE ADDITIONSI DEDUCTIONSI FUND BALANCE

JULY 1,1995

TRANSFERS TRANSFERS

JUNE 30, 1996

ENDOWMENT

Alpha Kappa Delta Fund

$

Barr,Robert,Fund

Chapel Building Fund

Christie, W. Ren, Fund

Connell, Clyde E., Fund

Dorrniny, Elene D., Fund

Dorrniny, 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, DAR., 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

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

1,210.77 $ 229.43 81.41 455.75 115,10
1,513.72 714.03 491.10 415.18 69.76
377.15 29.29 375.94
240.69
61.56 40.33 98.77 434.17 8,063.52 926.03 150.99 21.89
1,626.77 174.92 45,92

0.00 $

18,432.99 12,841.30 8,904,07 38,992.33 15,462.14 23,636.40 16,297.96 1,922.23 83,930.29 14,816.42
55,838.91 2,517.23 3,817.71
45,114.50
5,752.92 5,497.32 16,657.47 28,670.17 1,618,569.29 7,843.43 24,692,43 2,094.92
37,176.74 28,868.29 11,039.57

$ 2,111,422.84 $ 17,964.19 $

0.00 $ 2,129,387.03

TERM ENDOWMENT

Martin, Clare P., Fund Pierce, R. L., Fund Whitehead, Jewell D., Fund Whitehead, R. B., Fund

$

15,978.94 $

12,818.89

447,431.94

129,200.55

280.50 $ 54.29
3,009.89 761.61

0.00 $

16,259.44 12,873.18 450,441.83 129,962.16

$ 605,430.32 $

4,106.29 $

0.00 $

609,536.61

QUASI-ENDOWMENT - RESTRICTED

Carter, Marjorie E., Award Fund

$

2,185.37 $

326.68 $

0.00 $

2,512.05

$ 2,719,038.53 $ 22,397.16 $

0.00 $ _ .....2...,7..4..1...,4...3. .56..9..

See notes to the financial statements.

- 30-

VALDOSTA STATE UNIVERSITY SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
AGENCY FUNDS YEAR ENDED JUNE 30, 1996

SCHEDULE -5"

FUND
PAYROLL DEDUCTIONS
Fec:lerallncome Tax StatB Income Tax F.I.CA Retirement Georgia Defined Contribution Plan Group Insurance Employees Credit Union Tax Deferred Annuities Savings Bonds Unit8c:l Fund Garnishments Valdosta State University Foundation Child Support Dental Insurance Direct Deposit Miscellaneous
EMPLOYER'S CONTRIBUTIONS
F.I.CA 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 Ring Account Basketball Camp - Men Basketball Camp - Women Capstone Program CEU Workshop Childcare Program Children's Service Testing Fund Connell, Clyde, Fund Credit Union Copying Educational Technology Training Center European Council of the Regenfs
Global Center Financial Aid Directors Football Camp Georgia Association Study Abroad Graduate Leadership Seminar
See notes to the financial statements.

BALANCE JULY 1,1995

RECEIPTS

BALANCE DISBURSEMENTS JUNE 30, 1996

$

506.78 $ 3,874,088,09 $

3,874,594.87

1,376,832.95

1,376,769.89 $

63.06

-962,45

2,483,037.68

2,481,341.58

733.65

465.04

1,665,342.35

1,665,807.39

63.50

79,484,16

79,589.82

-42.16

1,696.10

1,192,995.27

1,134,570.03

60,121.34

-200.00

1,635,751.01

1,635,649.72

-98.71

-600.00

789,974.78

790,224.78

-850.00

22.50

13,720.00

13,750.00

-7.50

15,464.95

15,464.95

4,357.92

46,446.89

46,744.97

4,059.84

43,435.17

43.435.17

2,714,48

52,289.98

53,887.93

1,116.53

439,434,45

414,288.98

25,145.47

2,726,72

2,726.72

-1,779,90

5,112,01

5,112.01

-1,779.90

$

9,010,69 $ 13,713,409,74 $ 13,633,958.81 $

88,461,62

$

1,376.02 $ 2,481,383.78 $

2,481,323.26 $

1,436.54

3,433,62

3;726,973.54

3,730,351.64

55,52

3,734,751,01

3,550,429.44

184,321,57

$

4,809.64 $ 9,943,108,33$

9,762,104,34 $ 185,813.63

$

90,08

$

811.30 $

21,987,50

137.75

100,00

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

75,00 624,02 5,645,00 7,262,01 3,848,00 1,301,17 12,699.13 40,500,00 3,225.00 40,934.65
265.00 384.53 24,719,00

1,521.95 11.52
-423,75

2,918,00 261,80
4,633,25 1,500,00 1,000.00

29,68 $ 22,755,59
134.11
67.05
365,77 1,791,00 9,654,30 3,780.00 2,006.81 4,776,39 34,650,00 1,057.25 60,552,18
3.72 17.10 384,53 28,629,01
2,628,15 241.80
4,229,00

60.40 43.21 103.64
1.34 104,10 692,20 7,053.91
0.12 68,00
8,015,11 6,020,00 6,233.41
394.93 637.65
11,559.99
1,811,80 20,00
415,77 1,500,00
576.25

- 31 -

VALDOSTA STATE UNIVERSITY , SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
AGENCY FUNDS
YEAR ENDED JUNE 30, 1996

SCHEDULE -5"

B:lliQ
OTHER FUNDS
Greek Row Deposits HPElGoIf Health Fitness Center
Honors Student Association
Human Performance Lab Inter-Fraternity Council International Programs - Art in Britain International Programs - Education in
Scotland International Programs - Medical Insurance International Programs - Passports International Programs - Study in England International Programs - Study in Mexico Jekyll Island Theatre Job Training Partnership ActIPIC Kappa Alpha Order Language Arts Workshop Learning in Retirement London Study Roehampton Marching Band Boosters Math Tech Conference Microcomputer Support Center Middle School Workshop Minority Advisement Program (MAP/MRO) Miscellaneous Student Fees - Inactive Miscellaneous Student Receivables NAFSA Russian Awards Program - Exter Leonid NAFSA Russian Awards Program - lIya 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 Phi Theta Kappa Pi Gamma Mu Post Secondary Options 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 Secondary Education Secondary Education Conference and Workshop SEOG Initial Payments Share The Wealth Six Flags Tickets/Student Affairs Society of International Students
See notes to the financial statements.

BALANCE.
JULY 1, 1995

RECEIPTS

BALANCE
DISBURSEMENTS JUNE 30,1996

$

60,000.00

$

112.00

3,458.39 $

5,298.72

100.00

-128.53

12,215.75

18.55

740.50

12,309.43 8,600.00
931.00 4,693.01
268.02 -45,240.62
20,950.04

37,176.00 43,218.00
914.50 9,934.06 -55,772.36 96,372.31 5,382.50 84,510.61

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

1,865.00 322,557.00
1,155.00 4,020.00
50.00 45.00 472.98 33,579.78 10,000.00 10,000.00 4,319,287.00
360.00 374.18
5,241.56
240.00 779.00 40,026.00 59,010.64 177,826.94 232,642.22 38,750.98

156.40 1,500.00 50,864.57 9,280.78 2,413.97
197.05 2,105.15 6,317.72
158.22

12,500.00 7,700.00 906,276.49 15,776.93
535.00
44,348.39 4,800.00

20,609.98 $
8,655.47
11,180.48 '572.19
51,059.15 22,680.00
1,231.65 11,636.15 -67,184.99 40,836.64 5,382.50 54,403.56
-150.00
318,950.08
749.93 5,806.27
308.00 1,832.97
626.98 33,155.96
6,987.88 9,320.26 4,324,222.23
1.00
276.79
174.77
74.28 200.00 2,099.50 40,026.00 55,411.58 177,826.94 234,812.46 42,152.98
12,495.00 9,100.00 905,456.86 13,263.56
536.45
25,176.59 4,800.00

39,390.02 112.00 101.64 100.00 906.74 -553.64 740.50
-1,573.72 29,138.00
613.85 2,990.92 11,680.65 10,295.05
51,057.09 150.00
1,865.00 3,606.92 2,070.06
405.07 4,573.91 2,140.26
2,694.46 -2,051.68 3,063.12
860.91 1,414.77
900.00 83.87 6,230.45 3,876.99 27,927.78 94.51 40.00 ' 322.44
8,656.15
-14,996.61 -3,402.00
161.40 100.00 51,684.20 11,794.15 2,413.97 195.60 2,105.15 25,489.52
158.22

-32-

VALDOSTA STATE UNIVERSITY SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
AGENCY FUNDS YEAR ENDED JUNE 30. 1996

SCHEDULE "5"

FUND
OTHER FUNDS
Sociology - Criminal Justice Program Southern Conference on Language Teaching Special Account - Division of Nursing Speech and Hearing Clinic Stuclent Bank Deposit Stuclent Development and Placement Stuclent Development and Testing Stuclent Exchange Program Stuclent Nurse Fund Summer Math COnic Summer Reading Clinic Teaching Africa I & II Trade Adjustment AI;;t Tropical Studies - Belize University System Seminar at Newcastle Vocational Education Conference VSUfor Kids VSU Gospel Choir VSU Recycling Program Wetlands Who's Who in Modem Foreign Language Women's Studies Oral History

BALANCE JULY 1, 1995

RECEIPTS

BALANCE DISBURSEMENTS JUNE 30, 1996

$

362.52

$

143.64 $

2,200.00

7,292.76

2,135.00

3,096.41

3,963.62

60.78

1,808.08

1,719.50

2,711.79

2,190.00

1,976.80

27,092.00

12,017.90

2,304.00

2,248.90

1,469.07

70.80

1,400.08

237.45

21,025.65

17,535.00

-95.37

1,178.83

446.37

104.05

100.00

740.15

2,146.16

1,419.93

1,324.00

$ 297,138.34 $ 6,724,738.59 $

316.06 $ 2,200.80
384.30 4.48
-655.06 1,975.30 1,306.83 29,546.00
1,400.08 36,750.28
2,146.16 1,419.93
851.85 6,642,158.55 $

46.46 142.84 9,043.46 3,P91.93 4,679.46 1,552.28 3,594.96 -477.20 14,321.90 2,248.90 1,469.07 70.80
237.45 1,810.37 1,083.46
446.37 204.05 740.15
472.15
379,718.38

$ 310,958.67 $ 30,381,256.66 $ 30,038,221.70$ 653,993.63

See notes to the financial statements.

-33-

VALDOSTA STATE UNIVERSITY CASH ANp CASH EQUIVALENTS
JUNE 30, 1996

SCHEDULE "6-

NONINTEREST BEARING ACCOUNTS
Barnett Bank, Valdosta, Georgia
INTEREST BEARING ACCOUNTS
NationsBank of Georgia, Valdosta, Georgia
Certificates of Deposits No. 4719 (5.60%) No.4748 (5.60%) No. 4764 (5.60%) No, 4777 (5.70%)
N.O.W, Accounts (Variable)
SunTrust Bank, AUanta, Georgia
Cash Management Pools Board of Regents Short-Term Investment Fund Board of Regents Total Return Fund
OTHER
Cash on Hand Petty Cash

.$

10,528.04

$

7,429.32

2,811.06

5,190.98

129,499.28

5,090,308,03 $ 5,235,238.67

$

19,603.76

3,736,386,47

3,755,990.23

8,991 ,228,90

124,935,00

$ 9,126,691.94

See notes to the financial statements.

- 34-

VALPOSTA STATE UNIVERSITY ACCOUNTS RECEiVABLE JUNE 30, 1996

SCHEDULE ..,.

CURRENT FUNDS UNRESTRICTED RESTRICTED

LOAN FUNDS

PLANT FUNDS AGENCY UNEXPENDED FUNDS

TOTAL

SlateAppropriations

Allotments from the Board of Regents

of the University System of

Georgia

$

164,819,74

$ 164,819,74

Federal Grants and Contracts Research and Instruction Student AId

$ 150,096.80 2,530,495.86

150,096.80 2,530,495.86

Slate Grants and Contracts Research and Instruction Student Aid

172,338.70 656,533.57

172,338.70 656,533.57

Private Gifts, Grants, and Contracts Research and Instruction

10,057.87

10,057.87

other Georgia Slate Financing and Investment Commission Returned Checks Student Accounts Student Notes other

6,942.00 40,283,13 232,447,16 113,610,49 154,635,n

$
$ 1,051,830.26 204,60

42,203.48 $ 2,n8,27

49,145,48 40,283,13 232,447.16 1,165,440.75 157,618,64

$

712,738,29 $ 3,519,522.80 $ 1,052.034,86 $ 42.203.48 $ 2,n8,27 $ 5.329,m,70

See notes to the financial statements,

-35-

VALDOSTA STATE UNIVERSITY CHANGES IN INVESTMENT IN PLANT
YEAR ENDED JUNE 30. 1996

Land Buildings Improvements Other Than Buildings Equipment Ubrary Books and Collections

BALANCE

CURRENT FUNDS

JULY 1, 1995 UNRESTRICTED RESTRICTED

PLANT UNEXPENDED

$ 1,589,514.21

49,270,239.00

$ 1,127,265.37

2,851,675.96

$

11,985.00

434,782.88

12,953,904.35 $ 3,072,147.29

269,986.25

336,765.02

8,933,917.14

985,776.89

$ 75,599,250.66 $ 4,057,924.18 $ 281,971.25 $ 1,898,813.27

SUMMARY OF INVESTMENT
University Capital Leases

$ 75,516,585.50 $ 82,665.16

4,057,924.18 $

281,971.25 $

1,898,813.27

$ 75,599,250.66$ 4,057,924.18 $ 281,971.25 $ 1,898,813.27

See notes to the financial statements.

- 36-

SCHEDULE -8-

ADDITIONS
FUNDS RENEWALS AND REPLACEMENTS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

31,987.00 $ 1,000,115.38

175,552.55

$

CAPITAL LEASES
133,411.44 $

PRIVATE GIFTS

DEDUCTIONS DISPOSALSI DELETIONSI ADJUSTMENTS

BALANCE JUNE 30, 1996

$ 1,589,514.21

51,429,606.75

3,298,443.84

62,723.59 $ 888,197.90 16,116,292.59

6,660.00

11,950.00 9,914,404.03

$

207,539.55 $ 1.000,115.38 $ 133.411.44 $

69,383.59 $

900.147.90 $ 82,348.261.42

$

207,539.55 $ 1,000,115.38

$

69,383.59 $

803,401.36 $ 82,228,931.36

_ _ _ _ _ $ 133,411.44

96,746.54

119,330.06

$

207,539.55 $ 1,000,115.38 $ 133,411.44 $

900,147.90 $ 82.348,261.42

- 37-

VALDOSTA STATE UNIVERSITY SCHEPULE OF FUND BALANCES CURRENT FUNDS AND PLANT FUNDS
JUNE 30, 1996

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 For Inverory Reserve For Renewals and Replacements Reserve For Subsequent Years' Expenditures For Uncollecbble Accounts Undesignated SurpluslDeficit Regular Lottery for Education

RESIDENT INSTRUCTION

CURRENT FUNDS UNRESTRICTED LOTIERYFOR AUXILIARY EDUCATION ENTERPRISES

STUDENT ACTIVITIES

$

$

75,000.00

8,307.51 $

706,291.73

10,370.82

321,723.64 $ 2,725.64

33,086.51

18,620.99

$ 103,991.81 $

8,307.51 $ 1,030,741.01 $

33,086.51

$ 103,991.81 $

8,307.51 $ 1,030,741.01 $

3.3.,0.,.8.6...,5.1.

See notes to the financial statements.

- 38-

SCHEDULE -9"

RESTRICTED

PLANT FUNDS

UNEXPENDED

LOTIERY FOR RENEWALS AND

REGULAR

EDUCATION REPLACEMENTS

INVESTMENT IN PLANT

TOTAL

$ 82,228,931.36 $ 82,228,931.36

$ 1,226,011.46

$ 1,226,011.46

$

71,169.24

1,764,130.53

$

71,169.24

8,307.51 781,291.73 1,764,130.53 354,810.15
13,096.46

$ -20,176.35 _____ $
$ -20,176.35 $
$ 1,226,011.46 $ -20,176.35 $

-=O;.:.;:.O~O
0.00 $

1,835,299.n

-1,555.36 0.00
$ 2,991,250.26

0.00 $ 1,835,299.n $ 82,228,931.36 $ 86,446,193.08

- 39-

VALDOSTA STATE UNIVERSITY SCHEDULE OF REVENUES CURRENT FUNDS YEAR ENDED JUNE 30, 1996

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

RESIDENT INSTRUCTION

LOTTERY FOR EDUCATION

UNRESTRICTED AUXILIARY
ENTERPRISES

$ 32,003,780.00 1,411,649.00 116,909.00 $

1,433,688,74

$ 33,532,338.00 $ 1,433,688.74

$ 13,935,364.41 4,174,715.50

143,404.31

1,175.59

7,151.32

99,331.99
46,53 149,561.78
17,705.83 396,428,20
2,511.17 7,885,00 170,343.13
$ 19,105,624.76

$ 10,181,874.76 198.39
5,581.07
24,313,45 $ :, 0,211,967.67

See notes to the financial statements.

$ 52,637,962.76 $ 1,433,688.74 $ 10,211,967,67 -40-

SCHEDULE "10"

STUDENT ACTIVITIES

TOTAL

RESTRICTED RESIDENT
INSTRUCTION

TOTAL

$ 32,003,780.00 1,411,649.00 116,909.00 1,433,688.74
$ 34,966,026.74

$ 32,003,780.00 1,411,649.00 116,909.00 1,433,688.74
$ 34,966,026.74

$ 13,935,364.41 $ 869,110.85 5,043,826.35

$ 13,935,364.41 5,043,826.35

$ 1,062,839.92 28,682,149.89
143,404.31

1,062,839.92 28,682,149.89
143,404.31

1,175.59

1,140,622.87 4,513,648.00

1,140,622.87 4,513,648.00
1,175.59

7,151.32

392,510.08 141,562.00

392,510.08 141,562.00
7,151.32

99,331.99 10,181,874.76

10,928.37 76,664.02

10,928.37 76,664.02
99,331.99
10,181,874.76

279,805.31

244.92 149,561.78
5,581.07 17,705.83 396,428.20 2,511.17 7,885.00 474,461.89

$ 1,148,916.16 $ 30,466,508.59 $ 36,020,925.15 $

244.92 149,561.78
5,581.07 17,705.83 396,428.20 2,511.17 7,885.00 474,461.89
66,487,433.74

$ 1,148,916.16 $ 65,432,535.33 $ 36,020,925.15 $ 101,453,460.48

-41 -

VALDOSTA STATE UNIVERSITY SCHEDULE OF EXPENDITURES BY OBJECT
CURRENT FUNDS YEAR ENDED JUNE 30, 1996

PERSONAL SERVICES
salaries and Wages Employer's ContrIbutions for:
F.I.C.A. Retirement Group Insurance liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance Drug Testing 8ervlces
OpERATING EXPENSES
Travel Motor Vehicle Expenses SUpplies and M8teri81s 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 Pubiic8tions and Printing EqUipment
Non-Inventory Computer Charges Software Real Estate Rentals Telecommunic8tions Per Diem, Fees and Contracts
Per Diem and Fees Contracts EqUipment Motor Vehicle Purchases LeaseJPurchase of EqUipment Inventory
QIl:iER
EQUIPMENT, TECHNOLOGY AND CONSTRUCTION TRUST FUND QtherCosts Supplies and Materials EqUipment Non-Inventory Software EqUipment Inventory

UNRESTRICTED

RESIDENT LOITERYFOR

AUXILIARY

INSTRUCTION EDUCATION ENTERPRISES

$ 30,851,153.98
2,120,103.30 3,187,980.52 3,On,069.12
312,270.00 11,035.00
448,923.00 800,00
$ 40,009,334,92

$ 4,162,827,41 245,734.25 382,163.81 549,144,14
$ 5,339,869,61

$ 544,573.56 83,802.58
1,641,679.24 444,686.52
1,120,655.01 116,371.91 61,675.15
2,026,599.00 3,189,52
509,541,64 30,257.74
412,698.n 4,813.39
214,240.11 360,960.00 652,594.96
197,159,62 314,087.30
194,622,32 164,601.11 2,020,814,14
$ 11,119,823,59

$

57,957.95

48,419.24

621,239,53

101,149,74

527,461.21

118,356,05

70,168.78

622,270.26
499,612.64 50,947.97
39,856,96 6,898,00 6,280.05 7,925.00
321,026,45
73,696.17 638,210,17

11,003.97

$ 3,822,480.14

$

3,191.63

37,088,93 6,403,00

328,631.03

$ 375,314,59

see notes to the financial statements,

-42-

STUDENT ACTIVITIES

TOTAL

RESTRICTED RESIDENT
INSTRUCTION

TOTAL

$ 393,721.45 $ 35,407,702.84 $ 632,954.90 $ 36,040,657.74

17,099.42 26,381.62 29,999.59

2,382,936.97 3,596,525.95 3,656,212.85
312,270.00 11,035.00
448,923.00 800.00

37,611:0 54,809.n 37,295.46

2,420,548.24 3,651,335.72 3,693,508.31
312,270.00 11,035.00
448,923.00 800.00

$ 467,202.08 $ 45,816.406.61 $ 762,671.40 $ 46,579,078.01

$

8,999.40 $ 611,530.91 $

62.470.61 $

132,221.82

186.80

173,368.24 2,436,287.01

641,208.66

813.80

546,650.06

4,441.91

1,648,316.22

40,786.24

275,514.20

36,070.48

131,843.93

674,001.52 132,408.62 3,On,495.67 551,091.97 1,648,316.22 311,584.68 131,843.93

175,250.28 41,928.13

2,648,869.26 3,189.52
1,184,404.56 123,133.84

352,233.42 33,414,023.91
134,503.83 17,117.91

352,233.42 36,062,893.17
3,189.52 1,318,908.39
140,251.75

9,799.33 15,597.29

462,355.06 11,711.39
220,520.16 368,885.00 989,218.70

50,736.72 36,867.04
2,864.95

513,091.78 11,711.39
257,387.20 368,885.00 992,083.65

253,974.81

524,830.60 952,297.47

223,556.26 11,985.00

.748,386.86 964,282.47

1,020.00 30,889.71

194,622.32 176,625.08 2,051,703.85

269,986.25

194,622.32 176,625.08 2,321,690.10

$ 752,427.23 $ 15,694,730.96 $ 35,258,253.75 $ 50,952,984.71

$

3,191.63

37,088.93 6,403.00

328,631.03

$ 375,314.59

$

3,191.63

37,088.93 6,403.00

328,631.03

$

375,314.59

-43-

VALDOSTA STATE UNIVERSITY SCHEDULE OF EXPENDITURES BY OBJECT
CURRENT FUNDS YEAR ENDED JUNE 30. 1996

UNRESTRICTED

RESIDENT LOTTERY FOR

AUXILIARY

INSTRUCTION EDUCATION ENTERPRISES

SCHEDULE -11-

STUDENT ACTIVITIES

TOTAL

RESTRICTED RESIDENT
INSTRUCTION

TOTAL

$ 825,188.36
56,598.09 81,489.35 40,836.60
$ 1,004,112.40
19,406.40 37.73
58,943.10 1,218.12 3,139.53
21,n4.49 5,767.95
63,227.08 18,833.17
3,239.67
24,494.00 1,279,100.32
$ 2,503,293.96

$

825,188.36

56,598.09 81,489.35 40,836.60

$

1,004,112.40

19,406.40 37.73
58,943.10 1,218.12 3,139.53
21,n4.49 5,767.95

63,227.08 18,833.17

3,239.67

24,494.00 1,279,100.32

$

2,503,293.96

$

78,363.90

4,226.32

$

82,590.22

4,678.58 4,662.10
40.00 626.50 840.69
48.95
2,940.69 2,269.60
2,797.00
2.747.58
$ 104,241.91
$ 2,982,850.46

$

78,363.90

4,226.32

$

82,590.22

4,678.58 4,662.10
40.00 626.50 840.69 48.95

2,940.69 2,269.60

2,797.00

2,747.58

$

104,241.91

$

2,982,850.46

$ 1,219,629.31 $ 64,493,988.03 $ 36,020,925.15 $ 100,514,913.18

-45-

YALPOSTASTATEUNNERSITY SCHEPULE OF EXPENDITURES BY OBJECT
PLANT FUNDS YEAR ENDED JUNE 30, 1996

CAPITAL OUTLAY
Supplies and Materials Repairs and Maintenance Rents (Other than Real Estate) Other Expenses Equipment
Non-Inventory Software Telecommunications Per Diem, Fees and Contracts
Contracts Equipment
MomrVemaePurma~
Inventory

UNEXPENDED

LOTTERY FOR

REGULAR

EDUCATION

RENEWALS AND REPLACEMENTS

TOTAL

$

15,165,05

42,140.88

199.50

16,776.16

35,979.46

17,890.83

1,299,827.04 $

229,665,00 107,100.02

$ 188,000.00

14,029.46 $

29,194.51 42,140.88
199.50 16,776.16

84,108.91 43,736.17

120,088.37 43,736.17 17,890.83

31,987.00 1,519,814.04

175,552.55

229,665.00 282,652,57

'$ 1,764,743.94 $ 188,000.00 $

349,414.09 $ 2,302,158.03

See notes to the financial statements.

-46 -

SECTIONll FINDINGS AND IMPROPER OR QUESTIONED COSTS

VALDOSTA STATE UNIVERSITY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30. 1996

STATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR OUESTIONED COSTS

The status ofthe findings disclosed in the audit report for the year ended June 30, 1995, is summarized below:

Audit Control Number

Status ofFinding

551-95-01 551-95-02 551-95-03 551-95-04 551-95-05 551-95-06 551-95-07 551-95-08 551-95-09 551-95-10 551-95-11 551-95-12

Finding Deleted See Audit Control Number 551-96-03 Corrective Action Implemented See Audit Control Number 551-96-01 Corrective Action Implemented Corrective Action Implemented Corrective Action Implemented Corrective Action Implemented See Audit Control Number 551-96-04 Finding Deleted See Audit Control Number 551-96-02 No Corrective Action Implemented

PRIOR YEAR

AUDIT FOLLOW-UPIRESOLUTION Inadequate Accounting Procedures Financial Statements Audit Control Number 551-96-01

The audit report for the year ended June 30, 1995, noted that the accounting procedures of Valdosta State University were found to be inadequate in several areas. For the year under review, the University implemented procedures to improve the quality of the accounting records. However, an examination of Restricted Fund accounts receivable at June 30, 1996 revealed $65,786.06 that remained unsupported by appropriate documentation.

The University should review these unsupported accounts receivable to determine their validity and take appropriate action to resolve these accounts.

- 1-

VALDOSTA STATE UNIVERSITY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30. 1996

PRIOR YEAR .

AUDIT FOLLOW-UPIRESOLUTION Disbursement in Excess ofNeed Federal Financial Assistance Federal Family Education Loans (CFDA 84.032) Questioned Cost $729.60 Audit Control Number 551-96-02

The audit report for the year ended June 30, 1995, disclosed that one student was disbursed a total of$729.60 in Federal Family Education Loans in excess ofthe eligible award. During the year under review, a refund of $729.60 was requested from the student but had not been received as of the date ofthis audit.

Reimbursement of $729.60 should be secured and deposited into the University's operating account.

PRIOR YEAR/CURRENT YEAR

ACCOUNTING CONTROLS (OVERALL) - Financial Statements

ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance

Inadequate Separation ofDuties

.

Audit Control Number 551-96-03

The audit report for the year ended June 30, 1995, disclosed that Valdosta State University did not provide for adequate separation ofduties in the performance ofaccounting functions and related procedures pertaining to the control category Expenditures/Liabilities/Disbursements. For the year under review, our audit noted no jmprovement regarding adequate separation of employee duties for the control category ExpenditureslLiabilitieslDisbursements. 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 Aeronautics and Space Administration National Science Foundation U. S. Department ofEducation U. S. Department ofEnergy U. S. Department ofHealth and Human Services U. S. Department of State

-2-

VALDOSTA STATE UNIVERSITY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30. 1996

PRIOR YEAR/CURRENT YEAR

ELIGmILITY

Deficiencies in AwardinglDisbursing Student Financial Aid

Federal Financial Assistance

'

Pell Grant Program (84.063)

Questioned Cost $167.00/$267.00

Audit Control Number 551-96-04

The audit report for the year ended June 30, 1995, disclosed deficiencies in the University's compliance with Federal requirements relative to awarding and disbursing student financial aid. The following deficiencies continued to exist during the year under review:

(1) The prior year report noted that one student received student financial aid in excess of her eligible award, which resulted in an overpayment of $167.00 from the Pell Grant Program. This overpayment was not resolved during the year.

(2) The prior year report noted that one student did not receive all the student financial aid for which she was eligible, which resulted in an underpayment of $67.00 ofPell Grant Program funds. This underpayment was not resolved during the year under review.

For the year under review, an examination offifty students receiving Pell Grants revealed that one transfer student was not disbursed student financial aid in accordance with her eligible award, which resulted in an underpayment of$200.00. Federal Regulation (34 CFR 690.62) states that the amount ofa 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 underpayment occurred due to the University mistakenly relying on incorrect calculations received from another institution instead of the U. S. Department ofEducation's schedules.

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.

-3-

VALDOSTA STATE UNIVERSITY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
CURRENT YEAR
SPECIAL REPORTING REQUIREMENTS Failure to Submit Institutional Payment Summary Report Federal Financial Assistance Pell Grant Program (CFDA 84.063) Audit Control Number 551-96-05
Special reporting requirements of the Pell Grant Program (84.063) for Valdosta State University included submission ofthe Institutional Payment Summary (IPS) report to the U. S. Department ofEducation during six periods for the year under review. Valdosta State University failed to submit a report for the period December 16, 1995 through February 15, 1996. This deficiency occurred as a result of managements failure to ensure that reports were submitted for the required reporting periods.
The University should implement procedures to ensure that all IPS reports are submitted on a timely basis.
SPECIAL TESTS AND PROVISIONS Failure to Delay Loan Proceeds Federal Financial Assistance Federal Direct Student Loans (CFDA 84.268) Audit Control Number 551-96-06
For the year under review, our examination revealed four instances in which the University did not delay the disbursement offunds 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 inadequate procedures to monitor disbursements.
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 of Cost of Attendance Federal Financial Assistance Federal Direct Student Loan Program (CFDA 84.268) Questioned Cost: $1,765.00 Audit Control Number 551-96-07
For the year under review, an examination ofthe financial aid records offifty students receiving Federal Direct Student Loans revealed that two students were awarded and disbursed $1,765.00 in Stafford Loans in excess ofthe student's estimated cost ofattendance. Federal Regulations (34 CFR 682.204) state that in no case may
-4-

VALDOSTA STATE UNIVERSITY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
CURRENT YEAR SPECIAL TESTS AND PROVISIONS Disbursement in Excess ofCost of Attendance Federal Financial Assistance Federal Direct Student Loan Program (CFDA 84.268) Questioned Cost: $1,765.00 Audit Control Number 551-96-07 a Stafford Loan exceed the student's estimated cost of attendance for the period of enrollment for which the loan is intended. These overpayments occurred due to the University miscalculating the cost of attendance for the students based on four quarters ofattendance instead ofactual attendance of three quarters during the academic year. Procedures should be implemented by the University to ensure that students are not disbursed financial aid in excess oftheir cost ofattendance. The University should contact the U. S. DepartmentofEducation regarding the resolution of these questioned costs. SPECIAL TESTS AND PROVISIONS Exit Counseling Not Conducted Federal Financial Assistance Federal Direct Student Loans (CFDA 84.268) Audit Control Number 551-96-08 For the year under review, an examination of fifty loan recipients identified four loan recipients who should have received exit counseling. For two ofthe four loan recipients, no documentation was available to verify that the required exit counseling had been conaucted. Federal Regulations (34 CFR 682.604) require institutions to conduct and maintain documentation of exit counseling. This condition occurred due to a lack of exit counseling forms maintained by the University. The University should ensure that all students requiring exit counseling are properly identified and that exit counseling is conducted and documented as required by Federal regulations.
-5-