Annual financial report, fiscal year 2018

FISCAL YEAR

ANNUAL FINANCIAL REPORT

UNIVERSITY SYSTEM OF GEORGIA TABLE OF CONTENTS For the Fiscal Year Ended June 30, 2018
Introductory Section ...................................................................................................................................... University System of Georgia Highlights ........................................................................................... 2 Letter of Transmittal ........................................................................................................................... 13
Financial Section ............................................................................................................................................ Independent Auditor's Report ............................................................................................................ 17 Management's Discussion and Analysis ............................................................................................ 21 Financial Statements (GAAP Basis) .................................................................................................. Statement of Net Position ........................................................................................................... 35 Statement of Revenues, Expenses and Changes in Net Position .............................................. 38 Statement of Cash Flows ............................................................................................................ 40 Fiduciary Funds .......................................................................................................................... Statement of Fiduciary Net Position ....................................................................................... 42 Statement of Changes in Fiduciary Net Position .................................................................... 43 Component Units ........................................................................................................................ Combining Statement of Net Position ..................................................................................... 44 Combining Statement of Revenues, Expenses, and Changes in Net Position ....................... 54 Notes to the Financial Statements .............................................................................................. 65 Note 1 - Summary of Significant Accounting Policies ............................................................. 66 Note 2 - Deposits and Investments ......................................................................................... 74 Note 3 - Accounts Receivable ................................................................................................. 82 Note 4 - Inventories ................................................................................................................ 82 Note 5 - Notes and Loans Receivable .................................................................................... 82 Note 6 - Capital Assets ........................................................................................................... 83 Note 7 - Advances .................................................................................................................. 84 Note 8 - Long-Term Liabilities ................................................................................................. 84 Note 9 - Deferred Outflows and Inflows of Resources ............................................................ 85 Note 10 - Net Position ............................................................................................................ 88 Note 11 - Endowments ........................................................................................................... 88 Note 12 - Significant Commitments ........................................................................................ 89 Note 13 - Leases .................................................................................................................... 89 Note 14 - Retirement Plans .................................................................................................... 90 Note 15 - Risk Management ................................................................................................... 99 Note 16 - Contingencies ......................................................................................................... 100 Note 17 - Post-Employment Benefits Other Than Pension Benefits ....................................... 100 Note 18 - Operating Expenses with Functional Classifications ............................................... 111 Note 19 - Subsequent Event ................................................................................................... 111 Note 20 - Component Units .................................................................................................... 112

UNIVERSITY SYSTEM OF GEORGIA TABLE OF CONTENTS For the Fiscal Year Ended June 30, 2018
Required Supplementary Information .......................................................................................................... Benefit Pension Plans ....................................................................................................................... Schedule of Contributions for Defined Benefit Pension Plan ........................................................ 125 Schedule of Proportionate Share of Net Pension Liability ............................................................. 126 Schedule of Employers' and Nonemployers' Net Pension Liability ............................................... 127 Schedule of Changes in Net Pension Liability ............................................................................... 128 Schedule of Investment Returns ................................................................................................... 129 Notes to the Required Supplementary Information for Pension Plans .......................................... 130 Other Postemployment Benefits Plans .............................................................................................. Schedule of Contributions for Other Postemployment Benefits .................................................... 131 Schedule of Proportionate Share of Net Other Postemployment Benefit Asset ............................ 132 Schedule of Changes in Net Other Postemployment Benefit Liability ........................................... 133 Schedule of Net Other Postemployment Benefit Liability .............................................................. 134 Schedule of Investment Returns for Other Postemployment Benefits .......................................... 135 Notes to the Required Supplementary Information for Other Postemployment Benefit Plans....... 136
Supplementary Information ........................................................................................................................... Financial Statements (GAAP Basis) .................................................................................................. Statement of Net Position by Institution ........................................................................................ 138 Statement of Revenue, Expenses and Changes in Net Position by Institution ............................. 162 Statement of Net Position by Affiliated Organization ..................................................................... 178 Statement of Revenue, Expenses and Changes in Net Position by Affiliated Organization .......... 203 Notes to the Statement of Net Position and Statement of Revenues, Expenses and Changes .... in Net Position by Affiliated Organization .................................................................................. 215 Statutory Basis Financial Statement (Non-GAAP Basis) ................................................................... Balance Sheet (Non-GAAP Basis) ................................................................................................ 217 Statement of Funds Available and Expenditures Compared to Budget (Non-GAAP Basis) .......... 218 Statement of Changes to Fund Balance by Program and Funding Source (Non-GAAP Basis) .... 224
Acknowledgments .......................................................................................................................................... 230

Introductory Section

More than 328,000 students enroll in the 26 public higher education institutions of the University System of Georgia (USG), helping contribute to communities across the state. USG's economic impact is estimated at $16.8 billion annually, and its institutions have generated more than 163,000 jobs across Georgia, an increase of more than 3,000 jobs over last year. At the same time, our faculty compete nationally for sponsored research dollars that total more than $1 billion annually. And the system continues to improve student access and increase students' college attainment, fulfilling its core mission: Knowledge.
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THE UNIVERSITY SYSTEM OF GEORGIA. 2018 ANNUAL FINANCIAL REPORT.
328,000 STUDENTS

$16.8 BILLION
Estimated USG Annual Economic Impact

163K JOBS
Generated Across Georgia

$1 BILLION
Research Dollars Competed For

KNOWLEDGE
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4

THE UNIVERSITY SYSTEM OF GEORGIA. 2018 ANNUAL FINANCIAL REPORT.
Nearly 220,000 students to date have taken advantage of the Affordable Learning Georgia program, saving an estimated $19 million annually in textbook costs.

College Completion
Since Gov. Nathan Deal launched the Complete College Georgia initiative in 2011, the number of USG students annually earning degrees has increased 21 percent. From 54,800 students in 2011 to more than 66,400 in 2018, the numbers have gone up for seven consecutive years.
To continue that work, we have designated the first year of college a "Momentum Year." All 26 institutions have begun a programmatic emphasis on first-year students to help them start on the right track toward successful degree completion and reduce their time - and costs - toward graduation.
College students are more likely to graduate when they immediately pursue an area of academic interest, get help to stay on track and follow a clearly sequenced course of study. For our first-year students, this means passing English and math, taking nine hours in a field of interest and passing 30 course-hours total.
The effort also builds on expanding use of academic programs such as "degree roadmaps," a 15-to-finish campaign for fuller course loads, early-alert systems and intrusive advising for when students stray from their chosen path and need help to get back on track.
We are proud of our academic reputation: Georgia continues to be one of only three states with at least two institutions ranked among U.S. News & World Report's Top 15 public institutions in the nation.
While the Georgia Institute of Technology remains in the top 10 at No. 8, the University of Georgia this year jumped three spots to No. 13 - the highest ranking in UGA's history.

Affordability
The Board of Regents has continued to keep tuition increases to a minimum and has focused on reducing students' textbook costs systemwide.
A zero percent tuition increase was instituted for the 2018-2019 academic year, the second time in three years that has happened. Tuition increases over the last five years have been limited to an average of 1.8 percent annually.
The system has also tried to maximize the potential of online resources, including the increased use of free, open-sourced electronic textbooks. Nearly 220,000 students to date have taken advantage of the Affordable Learning Georgia program, saving an estimated $19 million annually in text book costs.

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$30 million in annual administrative savings has been reinvested toward students' academic programs and student support.
Efficiency
Campus consolidations kept the system on-track toward improving services and opportunities especially in both South Georgia and Southeast Georgia. In turn, this has helped better serve the needs of surrounding communities by strategically aligning degree offerings with regional needs. USG consolidations since 2011 have included 18 institutions, resulting in nine newly consolidated universities and colleges throughout Georgia. The resulting $30 million in annual administrative savings has been reinvested toward students' academic programs and support services, including the hiring of new academic advisors, student counselors, faculty members and academic support staff. Institutions have also used these funds to launch student services and support initiatives seeking to enhance financial aid, library and research systems as well as streamline students' campus enrollment and registration experiences.
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THE UNIVERSITY SYSTEM OF GEORGIA. 2018 ANNUAL FINANCIAL REPORT.
Comprehensive Administrative Review
The first of its kind for USG, the ongoing Comprehensive Administrative Review launched in 2017 and is being finalized for both the University System Office as well as all 26 institutions. It brings to the fore a systemwide focus on improving administration by creating new efficiencies, streamlining processes and reorganizing staff to best serve the needs of all students.
7

Economic Innovation
The USG mission is to create knowledge. Knowledge drives innovation, which in turn drives the Georgia economy. The system has launched the new Georgia FinTech Academy, a statewide initiative to create a talent pipeline for Georgia's fast-growing financial technology business sector.
The USG also partnered with the Georgia Chamber of Commerce, the Technical College System of Georgia and others on a new statewide competition for college students that aims to foster innovation, entrepreneurship and start-up creation. The Georgia InVenture Prize, based on a competition begun at Georgia Tech, will highlight and support Georgia's growing ecosystem of student entrepreneurs and innovators from across the entire state.

The USG mission is to create knowledge.

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THE UNIVERSITY SYSTEM OF GEORGIA. 2018 ANNUAL FINANCIAL REPORT.
Cyber Expansion
USG is proud to be a founding partner of the state's new Georgia Cyber Innovation and Training Center, which opened in Augusta 2018. The center represents the single largest investment in a state cybersecurity facility in the nation to date and will help to fill the critical shortage of cybersecurity talent in Georgia and across the nation. It will be a key partner for our eight USG institutions designated by federal officials as National Centers of Academic Excellence in Cyber Defense. The center will also allow students and researchers from throughout the system to closely collaborate with our partners from the military, industry and government. The center also provides a unique opportunity to Augusta University's School of Computer and Cyber Sciences, giving students access to state-of-theart technology for their education and research in disciplines that include computer science, cyber engineering and information technology.
9

College 2025
In August, USG released the final report from its College 2025 Initiative to help institutions embrace a 21st-century model for public higher education.
A 22-member committee of experts and leaders in higher education, industry and small business identified more than two dozen recommendations.
Initial action steps based on those recommendations have already begun to be implemented this academic year, including faculty development opportunities and increased student support.
Nexus Degree
USG also launched the new "nexus" academic degree, based on the group's recommendation to develop different college credentials for new or returning students who need specialized skill sets. Nexus degrees emphasize hands-on experiential learning, skilled knowledge and connections with industry in high-demand career fields.
Albany State and Columbus State universities have since become the first institutions approved to offer these new programs with more on the way. Columbus State's new nexus degree will be in film production. Albany State will offer two new nexus degrees, one in blockchain with machine learning and the other in blockchain with data analytics.

Nexus degrees emphasize hands-on experiential learning, skilled knowledge and connections with industry in high-demand career fields.

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THE UNIVERSITY SYSTEM OF GEORGIA. 2018 ANNUAL FINANCIAL REPORT.

MEMBERS OF THE BOARD OF REGENTS IN 2018

C. Dean Alford, P. E. Allied Energy Services
Chris Cummiskey Georgia Power
W. Allen Gudenrath Morgan Stanley
Erin Hames ReformEd
Brbara Rivera Holmes Albany Area Chamber of Commerce
C. Thomas Hopkins Jr., M.D. OrthoGeorgia
James M. Hull (Chair) Hull Property Group
Donald M. Leebern Jr. Georgia Crown Distributing Company Inc.
Laura Marsh Taulbee, Rushing, Snipes, Marsh & Hodgin LLC
Neil L. Pruitt Jr. PruittHealth Inc.

Sarah-Elizabeth Reed Former First Lady of Atlanta
Sachin Shailendra SG Contracting Inc.
E. Scott Smith NW Services Corp.
Kessel D. Stelling Jr. Synovus
Ben J. Tarbutton III Sandersville Railroad Company
Richard L. Tucker Arlington Capital LLC
Thomas Rogers Wade Retired, Georgia Public Policy Foundation
Don L. Waters (Vice Chair) Waters Capital Partners LLC
Philip A. Wilheit Sr. Wilheit Packaging and Marketing Images

UNIVERSITY SYSTEM OF GEORGIA
Dr. Steve Wrigley Chancellor University System of Georgia
Tracey Cook Treasurer University System of Georgia
Edward Tate Secretary to the Board University System of Georgia

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12 University System of Georgia

OFFICE OF STRATEGY & FISCAL AFFAIRS 270 WASHINGTON STREET, S.W. ATLANTA, GEORGIA 30334

PHONE (404) FAX (404) 962-3215

January 18, 2018
Chancellor Steve Wrigley Board of Regents University System of Georgia
Dear Chancellor Wrigley:
We are pleased to present to you the Annual Financial Report of the University System of Georgia for the year ended June 30, 2018. The report provides financial information about the University System of Georgia's operations during the year and describes its financial position at the end of the fiscal year.
Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal controls established for this purpose, the objective of which is to provide reasonable assurance that the financial statements are free of material misstatements. Further, the officers of the various institutions of the University System of Georgia and its affiliated organizations have assured us that every effort has been made to reflect accurately the information considered important to all concerned parties.
State law, Federal guidelines, bond covenants and the by-laws of the Board of Regents require that the accounting and financial records of the University System of Georgia be audited each year. The Georgia Department of Audits and Accounts has performed the audit for fiscal year 2018 and has issued an unmodified opinion, the most favorable outcome of the audit process. The State Auditor's report is located at the beginning of the financial section.
Management's discussion and analysis (MD&A) immediately follows the auditor's report and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction therewith.
Respectfully submitted,

Tracey Cook Interim Executive Vice Chancellor for Strategy and Fiscal Affairs/Treasurer Board of Regents of the University System of Georgia

"Creating A More Educated Georgia" www.usg.edu

2018 Annual Financial Report 13

14 University System of Georgia

Financial Section

16 University System of Georgia

GREG S. GRIFFIN
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
Independent Auditor's Report

The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the Board of Regents of the University System of Georgia
and Dr. Steve Wrigley, Chancellor University System of Georgia
Report on the Financial Statements
We have audited the accompanying financial statements of the business-type activities, the aggregate discretely presented component units, and the aggregate remaining fund information of the University System of Georgia (USG), which is an organizational unit of the State of Georgia, as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the University System of Georgia's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the aggregate discretely presented component units. Those statements were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for the aggregate discretely presented component units, is based solely on the reports of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. Except for the Augusta University Foundation, Inc., Augusta University Research Institute Inc., AU Health Systems, Inc., Georgia State University Research Foundation, Inc., Georgia Tech Research Corporation, and the University of Georgia Research Foundation, Inc., the financial statements of the discretely presented component units of the USG that were audited by other auditors upon whose reports we are relying were audited in accordance with auditing standards generally accepted in the United States of America, but not in accordance with Government Auditing Standards.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the USG's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the USG's internal

2018 Annual Financial Report 17

control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the of the business-type activities, the aggregate discretely presented component units, and the aggregate remaining fund information of the USG as of June 30, 2018, and the respective changes in financial position and where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Emphasis of Matter
As discussed in Note 1, the financial statements of the USG are intended to present the financial position, the changes in financial position, and where applicable, cash flows of only those portions of the businesstype activities, aggregate discretely presented component units, and the aggregate remaining fund information of the State of Georgia that are attributable to the transactions of the USG. They do not purport to, and do not, present fairly the financial position of the State of Georgia as of June 30, 2018, the changes in its financial position, or, where applicable, its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America. Our opinions are not modified with respect to this matter.
As described in Note 1 to the financial statements, in 2018, the Institute adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, GASB Statement No. 81, Irrevocable Split-Interest Agreements, GASB Statement 85, Omnibus 2017, and GASB Statement No. 86, Certain Debt Extinguishment Issues. Our opinions are not modified with respect to these matters.
As discussed in Note 1 to the financial statements, in 2018, the USG restated the prior period financial statements for changes in the financial reporting entity, adoption of GASB 75, and corrections from the prior year. Our opinions are not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, Schedule of Contributions for Defined Benefit Pension Plans, Schedule of Proportionate Share of the Net Pension Liability, Schedule of Employers' and Nonemployers' Net Pension Liability, Schedule of Changes in Net Pension Liability, Schedule of Investment Returns, Notes to the Required Supplementary Information for Pension Plans, Schedule of Contributions for OPEB, Schedule of Proportionate Share of the Net OPEB Asset, Schedule of Changes of the Net OPEB Liability, Schedule of Net OPEB Liability, Schedule of Investment Returns for OPEB, and Notes to the Required Supplementary Information for OPEB Plan as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
18 University System of Georgia

Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the USG's basic financial statements. The introductory section, and accompanying supplementary information as listed in the table of contents are presented for the purposes of additional analysis and are not a required part of the basic financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly we do not express an opinion or provide any assurance on it.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated January 18, 2019 on our consideration of the USG's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the USG's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the USG's internal control over financial reporting and compliance.
A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24.
Respectfully submitted,

January 18, 2019

Greg S. Griffin State Auditor

2018 Annual Financial Report 19

20 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA Management's Discussion and Analysis
Introduction The University System of Georgia (USG)'s priority is to ensure more Georgians enter the workforce with a college credential, while also seeking to make college more affordable and accessible and the System itself more cost-efficient on behalf of the State's students and communities. USG institutions enrolled more than 325,000 students and awarded 66,441 degrees for fiscal year 2018, a 2.3 percent increase over the previous year and a 21 percent increase since 2011. System leaders continue to invest in academic initiatives to increase attainment. For the academic year 2018-19, all 26 USG institutions launched a "Momentum Year" program focused on first-year students to help them start their college careers on-track and focused toward completion. At the same time, USG institutions for the second time in three years did not raise tuition rates and continued to closely monitor student fees. Georgia's average annual tuition and fee increases over the last five years are the second-lowest of the 16 states that make up the Southern Regional Education Board. The system also embarked on an ongoing Comprehensive Administrative Review at all 26 institutions as well as the University System Office. This is a thorough assessment of how the system is organized, if processes are modernized and if staffing levels make sense. Ultimately, it will help provide greater focus on the system's most important resource: Its students.
This discussion and analysis provides a summary of the financial position of the USG for the fiscal year ending June 30, 2018. It will provide the user with an overview of how the USG utilized its resources in pursuit of its primary goals of teaching, research and public service.
The Board of Regents and Chancellor Steve Wrigley are charged with the leadership of the 26 institutions of the USG. The USG continues to prosper, as is demonstrated by the following information:
State Resources The General Appropriations Act of 2018 (House Bill 44), as amended by House Bill 683, appropriated a total of $2.32 billion to the USG. The following table presents the state appropriations available to the USG from the General Appropriations Act of 2018, as amended:

STATE APPROPRIATIONS AVAILABLE - GENERAL APPROPRIATIONS ACT OF 2018

House Bill 44

General State Funds

$ 2,305,085,976

House Bill 683

General State Funds

12,084,906

Total State Appropriations Per Appropriations Act - University System of Georgia

$

2,317,170,882

The following table presents the fiscal year 2018 allocations by the Board of Regents to the USG institutions:

ALLOCATIONS BY THE BOARD OF REGENTS

Education and General

Teaching

$

Non-Teaching

Other Activities

University System Office

$

12,270,277

Rental Payments - GA Military College

6,176,766

GA Public Telecommunications Commission

15,251,668

GA Public Libraries

37,205,936

Total Other Activities

Special Initiative Funding

Net State Appropriations Available to the University System of Georgia

2,049,128,886 162,065,334
70,904,647 35,072,015
$

2,317,170,882

2018 Annual Financial Report 21

The following chart illustrates the Board of Regents allocations to Teaching, Non-Teaching, Other Activities and Special Funding Initiatives:
Overview of the Financial Statements and Financial Analysis The USG is proud to present its consolidated financial statements for fiscal year 2018. These statements contain information from the 26 institutions of the USG, and the University System Office. These financial statements include: three consolidated financial statements (1) Statement of Net Position, (2) Statement of Revenues, Expenses and Changes in Net Position, and (3) Statement of Cash Flows; Fiduciary Fund statements for the Board of Regents Retiree Health Benefit Fund, the Early Retirement Plan - Augusta University and the USG Deferred Compensation Plan; and combining component unit financial statements for 25 discretely presented component units. These 25 organizations are legally separate tax-exempt component units of the State of Georgia. The emphasis of discussions about these statements will be on current year data of the USG. The Notes to the Financial Statements follow the combining component unit financial statements, and contain essential information that serves both to support and clarify the information presented in the financial statements preceding them. The Required Supplementary Information section contains additional information related to the Board of Regents Retiree Health Benefit Fund, the Early Retirement Plan - Augusta University, retirement plans for which the USG and its institutions participates and other post employment benefits as required by generally accepted accounting principles. Finally, the Supplementary Information section includes selected information by USG institution, affiliated organizations and USG consolidated financial statements presented on a statutory/budget basis. This discussion and analysis of the USG's consolidated financial statements provides an overview of its financial activities for the fiscal year. Further information is provided by comparative data for fiscal year 2018 and 2017.
22 University System of Georgia

Statement of Net Position
The Statement of Net Position presents the assets, deferred outflows of resources, liabilities, deferred inflows of resources, and net position of the USG as of the end of the fiscal year. The Statement of Net Position is a point of time financial statement. The purpose of the statement is to present to the reader a fiscal snapshot of the USG. The Statement of Net Position presents data concerning assets (property that we own and what we are owed by others), deferred outflows of resources (consumption of net position by the USG that is applicable to future reporting periods), liabilities (what we owe to others and have collected from others before we have provided the service), deferred inflows of resources (acquisition of net position by the USG that is applicable to future reporting periods), and net position. It is prepared under the accrual basis of accounting, which requires revenue and asset recognition when the service is provided, and expense and liability recognition when goods or services are received despite when cash is actually exchanged.
From the data presented, readers of the Statement of Net Position are able to determine the assets available to continue operations of the USG. They are also able to determine how much the USG owes vendors and investors. The difference between assets, deferred outflows of resources, liabilities, and deferred inflows of resources (net position) is one indicator of the USG's financial health when considered in conjunction with other nonfinancial conditions, such as facilities and environment.
Net position is divided into three major categories. The first category, net investment in capital assets, provides the USG's equity in property, plant and equipment owned. The next category is restricted, which is divided into two categories, non-expendable and expendable. Restricted, non-expendable net position consists solely of the USG's permanent endowment funds. The corpus of non-expendable, restricted resources is available only for investment purposes. Restricted, expendable resources are available for expenditure, however, expenditure of these resources is limited to time or purpose restrictions placed on the assets by the donor and/or external third parties. The final category is unrestricted resources, which are available to the USG for any lawful purpose.
The USG's financial position at June 30, 2018 is very strong, with total assets of $12.67 billion, deferred outflows of $874 million, total liabilities of $10.90 billion, deferred inflows of $1.04 billion and net position of $1.61 billion.
Assets and Deferred Outflows Total assets and deferred outflows of the USG in fiscal year 2018 were approximately $39 million more than those reported for fiscal year 2017. Most asset categories had marginal increases or decreases during the year. Cash and investments increased $99 million due to strategic budgetary efforts. Capital assets decreased $85 million. The major reduction in capital assets was related to the removal of duplicate capital assets that were reported by the University of Georgia Athletic Association, Inc, a component unit of the State of Georgia. These capital asset reductions were partially offset by major building additions. See Note 6 with in the Notes to the Financial Statements for more information.
Liabilities and Deferred Inflows Total liabilities and deferred inflows for fiscal year 2018 were approximately $1.52 billion more than those reported for fiscal year 2017. The majority of the change related primarily to an increase in net OPEB liability of $1.6 billion resulting from the adoption of Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Post Employment Benefits Other Than Pensions, a decrease in net pension liability of $282 million and an increase in a net deferred gain on defined benefit pension plan of $13 million.
Net Position The combination of the increase in total assets and deferred outflows of $39 million and the increase in total liabilities and deferred inflows of $1.52 billion yielded a net decrease in total net position of $1.49 billion or 48.05%. The decrease in net position was directly related to the adoption of GASB Statement No. 75. See Note 1 in the Notes to the Financial Statements for more information.
The following table summarizes the USG's assets, deferred outflows, liabilities, deferred inflows and net position as of June 30, 2018 and June 30, 2017.
2018 Annual Financial Report 23

CONDENSED STATEMENT OF NET POSITION
ASSETS Current Assets Capital Assets, Net Other Assets TOTAL ASSETS

June 30, 2018 June 30, 2017 (1) % Change

$ 2,292,837,480 $ 2,172,184,004

9,878,403,906

9,962,908,062

498,530,235

480,893,886

12,669,771,621 12,615,985,952

5.55% -0.85% 3.67% 0.43%

DEFERRED OUTFLOWS

873,854,980

889,122,408

-1.72%

LIABILITIES Current Liabilities Non-Current Liabilities TOTAL LIABILITIES

914,781,438 9,983,382,572 10,898,164,010

882,875,681 8,800,064,037 9,682,939,718

3.61% 13.45% 12.55%

DEFERRED INFLOWS

1,038,949,132

729,574,530

42.40%

NET POSITION Net Investment in Capital Assets Restricted, Non-Expendable Restricted, Expendable Unrestricted (Deficit) TOTAL NET POSITION

6,666,852,110

6,627,744,225

204,781,419

193,258,875

218,195,579

249,285,321

-5,483,315,649

-3,977,694,309

$ 1,606,513,459 $ 3,092,594,112

0.59% 5.96% -12.47% -37.85% -48.05%

(1) The amounts reported for fiscal year 2017 were not adjusted for the restatement of beginning net position. See Note 1 in the Notes to the Financial Statements for more information regarding the restatement.

Statement of Revenues, Expenses and Changes in Net Position
The Statement of Revenues, Expenses and Changes in Net Position presents the revenues received and expenses incurred during the year. Activities are reported as either operating or non-operating. Changes in total net position as presented on the Statement of Net Position are based on the activity presented in the Statement of Revenues, Expenses and Changes in Net Position. The purpose of the statement is to present the revenues received by the USG, both operating and non-operating, and the expenses paid by the USG, operating and non-operating, and any other revenues, expenses, gains or losses received or spent by the USG.
Generally, operating revenues are received for providing goods and services to the various customers and constituencies of the USG. Operating expenses are those expenses paid to acquire or produce the goods and services provided in return for the operating revenues, and to carry out the mission of the USG. Non-operating revenues are revenues received for which goods and services are not provided. For example, state appropriations are non-operating because they are provided by the legislature to the USG without the legislature directly receiving commensurate goods or services for those revenues. State capital grants and gifts and other capital grants and gifts are considered neither operating nor non-operating revenues and are reported after "Income (loss) before other revenues, expenses, gains or losses".

24 University System of Georgia

Some highlights of the information presented on the Statement of Revenues, Expenses and Changes in Net Position are as follows:

CONDENSED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION Operating Revenue Operating Expense Operating Income/Loss Non-Operating Revenue and Expense Income (Loss) before Other Revenues, Expenses, Gains, Losses and Special Items Other Revenues, Expenses, Gains, Losses Special Items Change in Net Position Net Position at beginning of year, restated Net Position at End of Year

June 30, 2018 June 30, 2017 (1) % Change

$ 5,210,409,894 $ 5,100,949,696

2.15%

8,237,924,034 8,012,168,406

2.82%

-3,027,514,140 -2,911,218,710

3.99%

2,992,032,012 2,715,233,106

10.19%

-35,482,128

-195,985,604 -81.90%

287,656,654

251,575,758

14.34%

(30,284,826)

2,219,860 -1,464.27%

221,889,700

57,810,014 283.83%

1,384,623,759 3,034,784,098 -54.37%

$ 1,606,513,459 $ 3,092,594,112 -48.05%

(1) The amounts reported for fiscal year 2017 were not adjusted for the restatement of beginning net position. See Note 1 in the Notes to the Financial Statements for more information regarding the restatement.

The Statement of Revenues, Expenses and Changes in Net Position reflects a positive year as represented by an increase in Change in Net Position for fiscal year 2018. However, the ending net position decreased significantly from the prior year due to restatements, which includes the implementation of GASB Statement No. 75 and the removal of duplicate capital assets reported by the University of Georgia Athletic Association, Inc. See Note 1 in the Notes to the Financial Statements for more information. Special items changed significantly mostly due to a change in capital asset policy at Georgia Institute of Technology, an organizational unit of the USG, and a transfer capital assets to Central Georgia Technical College, an organizational unit of the Technical College System Georgia. Some highlights of the information presented on this statement are as follows:
Revenues In fiscal year 2018, state appropriations increased $165 million (7.65%), grants and contracts revenue increased $141 million in fiscal year 2018, net tuition and fee revenues increased $34 million (1.65%).
Revenue by source (state appropriations, grants and contracts, tuition and fees, auxiliaries, gifts and other sources) is depicted by the following chart:

2018 Annual Financial Report 25

For the years ended June 30, 2018 and June 30, 2017, revenues by source were as follows:

REVENUES BY SOURCE Tuition and Fees Federal Appropriations Grants and Contracts Sales and Services Auxiliary Enterprises Other Operating Revenues Total Operating Revenues State Appropriations Grants and Contracts Gifts Investment Income Total Nonoperating Revenues State Capital Gifts and Grants Other Capital Gifts and Grants Total Capital Gifts and Grants Additions to Permanent and Term Endowments Other Nonoperating Revenue Total Revenues

June 30, 2018 June 30, 2017 (1) % Change

$ 2,090,092,615 $ 2,056,150,625

1.65%

20,546,064

22,307,653

-7.90%

1,809,183,944 1,727,419,012

4.73%

206,733,164

211,924,571

-2.45%

909,392,256

901,424,177

0.88%

174,461,851

181,723,658

-4.00%

5,210,409,894 5,100,949,696

2.15%

2,314,491,667 2,149,978,108

7.65%

690,539,065

631,236,442

9.39%

85,985,306

58,987,556

45.77%

45,118,028

44,016,277

2.50%

3,136,134,066 2,884,218,383

8.73%

265,811,845

210,403,556

26.33%

21,501,194

40,339,044 -46.70%

287,313,039

250,742,600

14.58%

343,615

833,158

593,629

--

$ 8,634,794,243 $ 8,236,743,837

4.83%

(1) The amounts reported for fiscal year 2017 were not adjusted for the restatement of beginning net position. See Note 1 in the Notes to the Financial Statements for more information regarding the restatement.

Expenses For the years ended June 30, 2018 and June 30, 2017, expenses by functional classification were as follows:

EXPENSES BY FUNCTIONAL CLASSIFICATION Instruction Research Public Service Academic Support Student Services Institutional Support Plant Operations and Maintenance Scholarships and Fellowships Auxiliary Enterprises Patient Care Total Operating Expenses Interest Expense Other Nonoperating Expense Total Expenses

June 30, 2018 June 30, 2017 (1)

$ 2,003,013,098 $ 1,996,478,175

1,399,514,297 1,371,184,188

433,276,260

419,784,258

627,423,736

608,363,683

358,362,807

354,756,483

1,232,474,231 1,173,262,400

701,503,860

651,415,644

275,405,110

254,895,457

831,510,746

829,020,400

375,439,889

353,007,718

8,237,924,034 8,012,168,406

144,695,683

161,973,120

--

7,012,157

$ 8,382,619,717 $ 8,181,153,683

% Change
0.33% 2.07% 3.21% 3.13% 1.02% 5.05% 7.69% 8.05% 0.30% 6.35% 2.82% -10.67%
2.46%

(1) The amounts reported for fiscal year 2017 were not adjusted for the restatement of beginning net position. See Note 1 in the Notes to the Financial Statements for more information regarding the restatement.

26 University System of Georgia

Total operating expenses were $8.2 billion in fiscal year 2018, an increase of $226 million (2.82%) when compared with fiscal year 2017. These increases are primarily attributable to the following functional classifications: Research ($28 million), Public Service ($13 million), Academic Support ($19 million), Institutional Support ($59 million), Plant Operations ($50 million), Scholarships and Fellowships ($21 million), and Patient Care ($22 million). As noted above, operating expenses increased $226 million (2.82%) in fiscal year 2018 when compared with fiscal year 2017. The increases were substantially attributable to salaries and benefits, including other personal services. The increases in salaries and benefits are attributable to increases in OPEB expenses, faculty and staff increases and merit increases. The following chart depicts the fiscal year 2018 operating expenses by functional classification.
2018 Annual Financial Report 27

The following chart depicts the fiscal year 2018 operating expenses by natural classification.
Statement of Cash Flows The Statement of Cash Flows presents detailed information about the cash activity of the USG during the year and is divided into five sections. The first section is concerned with operating cash flows and reflects the net cash used by the various operating activities of the USG. The second section is related to cash flows from non-capital financing activities, which reflects the cash received and spent for non-capital financing purposes. The third section summarizes cash flows from capital and related financing activities and contains cash used for the acquisition and construction of capital and related items. The fourth section is comprised of the cash flows from investing activities and includes the purchases, proceeds and interest received from investing activities. The fifth, and final, section reconciles the net cash used to the operating income or loss as reflected on the Statement of Revenues, Expenses and Changes in Net Position.
28 University System of Georgia

Cash Flows for the Years Ended June 30, 2018 and 2017, Condensed

CONDENSED STATEMENT OF NET CASH FLOWS Cash and Cash Equivalents Provided (Used) by:
Operating Activities Non-Capital Financing Activities Capital and Related Financing Activities Investing Activities NET CHANGE IN CASH and CASH EQUIVALENTS Cash and Cash Equivalents, beginning of year CASH and CASH EQUIVALENTS, end of year

June 30, 2018

June 30, 2017

$ -2,388,454,869 $ -2,101,268,541

3,054,817,788

2,839,760,642

-641,619,722

-595,935,831

23,480,441

18,969,608

$

48,223,638 $

161,525,878

1,521,937,801

1,360,411,923

$

1,570,161,439 $

1,521,937,801

Capital Assets Capital assets, net of accumulated depreciation, at June 30, 2018 and June 30, 2017 were as follows:

CAPITAL ASSETS, net of accumulated

depreciation

June 30, 2018

June 30, 2017(1)

Increase (Decrease)

% Change

Land

$ 409,861,751 $ 405,224,031 $ 4,637,720

1.14%

Capitalized Collections

51,924,925

51,448,435

476,490

0.93%

Construction Work-in-Progress

231,606,547

222,618,967

8,987,580

4.04%

Software Development-in-Progress

12,266,427

9,521,221

2,745,206

28.83%

Infrastructure

216,612,720

231,652,649 (15,039,929)

-6.49%

Building and Building Improvements

8,094,599,134

8,093,169,192

1,429,942

0.02%

Facilities and Other Improvements

160,311,999

276,854,639 (116,542,640)

-42.10%

Equipment

458,287,532

450,656,786

7,630,746

1.69%

Library Collections

175,573,379

174,917,795

655,584

0.37%

Capitalized Collections

5,062,603

5,270,189

(207,586)

-3.94%

Software

62,296,889

41,574,158

20,722,731

49.85%

Capital Assets, net of accumulated depreciation

$ 9,878,403,906 $ 9,962,908,062 $ (84,504,156 )

-0.85%

(1) The amounts reported for fiscal year 2017 were not adjusted for the restatement of beginning net position. See Note 1 in the Notes to the Financial Statements for more information regarding the restatement.

As shown above, capital assets, net of accumulated depreciation decreased $85 million during fiscal year 2018 when compared with fiscal year 2017. This decrease was largely the result of the removal of duplicated capital assets reported by the University of Georgia Athletic Associations, Inc., a component unit of the State of Georgia totaling $254 million.
The total decrease in capital assets was partially offset by major building additions totaling $437 million. Major building additions included a Student Services Center at Atlanta Metropolitan State College, a Fine Arts Center at Albany State University, a Center for Modular Medicine and a Research and Education Facility at the University of Georgia, a Convocation Center at the University of North Georgia, an Education Center at Kennesaw State University, and a Science and Technology Center at Savannah State University.
For additional information concerning Capital Assets, see Notes 1, 6, 8, and 13 in the Notes to the Financial Statements.
Long-Term Liabilities The University System of Georgia had Long-Term Liabilities of $10.2 billion of which $255 million was reflected as a current liability at June 30, 2018. Included in Long-Term Liabilities are lease purchase obligations of $2.9 billion, net pension liability of $2.9 billion and OPEB liability of $4.2 billion.

2018 Annual Financial Report 29

The net pension liability and OPEB obligation are actuarially determined estimates of future post-employment costs. See Note 14 in the Notes to Financial Statements for additional information related to net pension liability. See Note 17 in the Notes to Financial Statements for additional information related to the OPEB liability.
In fiscal year 2018, the USG adopted GASB Statement No. 75. The USG reported a net OPEB liability of $4.2 billion related to the Board of Regents Retiree Health Benefit Plan as of June 30, 2018.
Lease purchase obligations decreased $122 million during the current fiscal year. Principal and interest payments were $121.9 million and $148.7 respectively for the USG.
For additional information concerning Long-Term Liabilities, see Note 8 in the Notes to the Financial Statements.
Notes to the Financial Statements The Notes to the Financial Statements are an integral part of the basic financial statements and communicate information essential for fair presentation. For example, the notes convey information concerning significant accounting policies used to prepare the financial statements, detailed information on cash and investments, receivables, capital leases, compensated absences, retirement and other post-employment benefits, capital assets and a report of operating expenses by function.
Retiree Health Benefit Fund The University System Office is the custodian of the Board of Regents Retiree Health Benefit Fund. This fund was authorized pursuant to the Official Code of Georgia Annotated Section 47-21-21 for the purpose of accumulating funds necessary to meet employer costs of post-employment health insurance benefits.
As noted in the Long-Term Liabilities section above, the USG carries an OPEB liability of $4.2 billion as of June 30, 2018. The Board of Regents continues to evaluate options to reduce this growing liability.
For additional information concerning the Retiree Health Benefit Fund, please refer to Note 15 and 17 in the Notes to Financial Statements.
Early Retirement Pension Plan Fund - Augusta University Augusta University Early Retirement Pension Plan (ERP) is a single-employer defined benefit pension plan administered by Bryan, Pendleton, Swats and McAlister. The plan was devised by Augusta University as a means of manpower reduction and was approved by the Board of Regents of the University System of Georgia effective January 1, 2000.
For additional information concerning the Early Retirement Pension Fund, please refer to Note 14 in the Notes to Financial Statements.
Affiliated Organizations System-wide, there were 25 affiliated organizations that met one or more criteria for inclusion as component units of the State of Georgia in compliance with GASB Statement No. 14, as amended. These 25 affiliated organizations are included as component units in the University System of Georgia consolidated annual financial statements as they have been determined essential to the fair presentation to these departmental statements. All system-wide affiliated organizations including the 25 previously mentioned are included in the supplementary information section.
Economic Outlook USG's overarching mission is knowledge, to create it through research, transfer it through teaching and apply it through service. And as knowledge drives innovation, innovation drives the economy.
Why does this matter for Georgia? There is a direct relationship between knowledge, education attainment and economic competitiveness. An educated workforce is the #1 priority of businesses considering moving to Georgia, and the USG plays a key role in working with industry to fulfill the need for talent with high-priority skills.
In less than a decade, about two-thirds of jobs will require some education beyond high school. Right now, only about 47 percent of the Georgia workforce meets this requirement. At the same time, during the recovery from the Great Recession, research has shown that of the 11.6 million jobs created, 99 percent of them - or 11.5 million jobs- went to workers with at least some post-secondary education. And about 70 percent of them went to workers with at least a bachelor's degree. The USG remains a vital link for Georgia's economic success.
30 University System of Georgia

It also continues to see modest enrollment increases. For fall 2018 enrollment at USG's 26 colleges and universities totaled 328,712 students, an increase of 1.1 percent (or 3,509 more students) over the previous year. This continues a five-year trend of modest increases in student enrollment and also marks the fourth consecutive year that enrollment continued to reach an all-time high in the USG's total student enrollment. This increase came even as the USG successfully completed the latest round of institutional consolidations, which since 2011 have included 18 institutions and resulted in nine newly consolidated universities and colleges throughout Georgia. These consolidated institutions have been able to eliminate or combine administrative positions, resulting in $30 million that have been redirected into hiring faculty and staff to support students' academic experiences.
2018 Annual Financial Report 31

32 University System of Georgia

Financial Statements

34 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION JUNE 30, 2018
ASSETS Current Assets Cash and Cash Equivalents Cash and Cash Equivalents (Externally Restricted) Short-term Investments Short-term Investments (Externally Restricted) Accounts Receivable, net Federal Financial Assistance Affiliated Organizations Component Units Primary Government Pledges and Contributions Other Notes Receivable, net Investment in Capital Leases - Primary Government Investment in Capital Leases - Other Inventories Prepaid Items Other Assets Total Current Assets
Non-Current Assets Accounts Receivable, net Affiliated Organizations Component Units Pledges and Contributions Other Investments Notes Receivable, net Investment in Capital Leases - Primary Government Investment in Capital Leases - Other Other Assets Non-current Cash (Externally Restricted) Short-term Investments (Externally Restricted) Investments (Externally Restricted) Capital Assets, net
Total Non-Current Assets TOTAL ASSETS
DEFERRED OUTFLOWS OF RESOURCES
The notes to the financial statements are an integral part of this statement.

University System of Georgia

Component Units

$

1,345,123,209 $

213,067,505

66,457,356

537,765

323,925,905 110,158,026
83,446,309 111,184,098

70,473,727 12,681,594 216,911,224
-- -- 271,394,296 -- -- -- 22,991,105 68,766,262 4,433,437 2,292,837,480

4,154,994 5,173,508
-- 8,218,847 76,773,283 464,838,600
15,668 78,303,880
346,304 19,105,346 35,269,909 20,063,515 1,340,978,192

3,561,255 2,596,400
-- -- 197,905,258 38,008,297 -- -- 468,541 11,970,725 38,726 243,981,033 9,878,403,906 10,376,934,141 12,669,771,621

$

873,854,980 $

6,167,186 --
135,860,990 14,973,342
1,979,870,173 3,643
2,301,581,506 4,048,306
56,487,912 193,722,831
3,434,162 1,668,579,431 1,160,202,817 7,524,932,299 8,865,910,491
53,654,725

2018 Annual Financial Report 35

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION JUNE 30, 2018
LIABILITIES Current Liabilities Accounts Payable Salaries Payable Benefits Payable Contracts Payable Retainage Payable Interest Payable Due to Affiliated Organizations Due to Component Units Due to Primary Government Advances (Including Tuition and Fees) Deposits Deposits Held for Other Organizations Other Liabilities Notes and Loans Payable Lease Purchase Obligations - External Lease Purchase Obligations - Component Units Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities
Non-Current Liabilities Due to Affiliated Organizations Due to Primary Government Due to Other Funds Advances (Including Tuition and Fees) Other Liabilities Notes and Loans Payable Lease Purchase Obligations - External Lease Purchase Obligations - Component Units Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Net Other Post Employment Benefits Liability Net Pension Liability
Total Non-Current Liabilities TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES
The notes to the financial statements are an integral part of this statement.
36 University System of Georgia

University System of Georgia

Component Units

$

161,146,607 $

65,588,227

34,234,924

18,626,912

53,986,945

5,858

23,128,430

--

11,775,797

1,255,140

656,599

34,443,091

2,353,421

4,225,186

8,218,847

--

--

216,911,224

238,360,759

123,772,435

16,650,806

30,703,912

105,833,538

33,904,286

3,019,558

14,056,285

1,437,861

80,813,416

24,707,326

8,267,512

78,303,880

--

--

92,182,022

--

2,369,700

441,540

561,929

800,662

1,279,688

149,723,938

19,801,373

914,781,438

748,768,196

-- -- -- -- -- 6,657,407 509,037,982 2,301,581,506 -- -- -- 644,300 1,005,250 79,296,531 4,219,725,872 2,865,433,724 9,983,382,572 10,898,164,010

$

1,038,949,132 $

6,615,000 2,596,400
649,103 5,267,196 31,015,274 186,046,479 74,659,231
-- 3,149,470,250
25,685,415 30,176,076
-- 765,928
-- 6,165,679
-- 3,519,112,031 4,267,880,227
13,940,731

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION JUNE 30, 2018
NET POSITION Net Investment in Capital Assets Restricted for: Nonexpendable Expendable Unrestricted (Deficit)
TOTAL NET POSITION
The notes to the financial statements are an integral part of this statement.

University System of Georgia

Component Units

$

6,666,852,110 $

379,119,386

204,781,419 218,195,579 (5,483,315,649)

1,744,234,383 1,668,806,876
845,583,613

$

1,606,513,459 $

4,637,744,258

2018 Annual Financial Report 37

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR FISCAL YEAR ENDED JUNE 30, 2018

OPERATING REVENUES Student Tuition and Fees Scholarship Allowance Federal Appropriations Grants and Contracts Federal State Other Sales and Services Rents and Royalties Auxiliary Enterprises Residence Halls Bookstore Food Services Parking/Transportation Health Services Intercollegiate Athletics Other Organizations Gifts and Contributions Endowment Income Other Operating Revenues
Total Operating Revenues
OPERATING EXPENSES Faculty Salaries Staff Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses
Operating Income (Loss)
The notes to the financial statements are an integral part of this statement.

University System of Georgia

Component Units

$

2,726,264,061 $

--

(636,171,446)

--

20,546,064

--

909,779,341 300,975,197 598,429,406 206,733,164
5,713,117

786,239,798 9,424,710
324,625,565 897,507,134 239,050,413

335,175,956 60,205,984
199,052,595 90,697,229 60,069,227
134,091,466 30,099,799 -- --
168,748,734

-- -- 2,051,622 -- -- 145,102,432 -- 186,311,575 11,709,468 30,670,655

5,210,409,894

2,632,693,372

1,673,290,092 2,141,898,966 1,040,109,147
15,167,280 83,614,890 329,592,309 185,498,195 2,276,535,430 492,217,725

8,237,924,034

$

(3,027,514,140) $

-- 317,351,162
35,930,565 146,007,768
21,216,095 35,598,112
8,698,909 1,887,866,213
69,526,145
2,522,194,969
110,498,403

38 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR FISCAL YEAR ENDED JUNE 30, 2018

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues
Income (Loss) Before Other Revenues, Expenses, Gains, or Losses
Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses
Change in Net Position
Net Position, Beginning of Year, As Originally Reported Prior Year Adjustments Net Position, Beginning of Year, Restated
Net Position, End of Year
The notes to the financial statements are an integral part of this statement.

University System of Georgia

Component Units

$

2,314,491,667 $

29,932,138

585,154,605 13,773,089 91,611,371 85,985,306 45,118,028
(144,695,683) 593,629

3,083,581 3,227,028
-- 27,553,141 297,873,509 (129,583,788) (7,174,161)

2,992,032,012

224,911,448

(35,482,128)

335,409,851

155,488 265,811,845
21,345,706 343,615
(30,284,826)

257,371,828

221,889,700

3,092,594,112 (1,707,970,353) 1,384,623,759

$

1,606,513,459 $

-- -- 10,107,077 104,721,950 (7,885,377)
106,943,650
442,353,501
4,230,860,131 (35,469,374)
4,195,390,757
4,637,744,258

2018 Annual Financial Report 39

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF CASH FLOWS FOR FISCAL YEAR ENDED JUNE 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES Payments from Customers Federal Appropriations Grants and Contracts (Exchange) Payments to Suppliers Payments to Employees Payments for Scholarships and Fellowships Loans Issued to Students Collection of Loans from Students Other Receipts Other Payments
Net Cash Used by Operating Activities
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES State Appropriations Agency Funds Transactions - Receipts Agency Funds Transactions - Disbursements Gifts and Grants Received for Other Than Capital Purposes Transfer of Endowments to Affiliated Organization Other Noncapital Financing Receipts Other Noncapital Financing Payments
Net Cash Flows Provided by Non-capital Financing Activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital Gifts and Grants Received Proceeds from Sale of Capital Assets Purchases of Capital Assets Principal Paid on Capital Debt and Leases Interest Paid on Capital Debt and Leases
Net Cash Used by Capital and Related Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from Sales and Maturities of Investments Investment Income Purchase of Investments
Net Cash Provided by Investing Activities
Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents - Beginning of Year
Cash and Cash Equivalents - End of Year
The notes to the financial statements are an integral part of this statement.
40 University System of Georgia

University System of Georgia

$

3,301,973,858

19,349,600

1,871,601,627

(3,427,724,099)

(3,830,993,568)

(329,592,306)

(11,275,763)

13,288,808

4,917,684

(710)

(2,388,454,869)

2,314,491,667 5,381,544,066 (5,396,520,550)
743,208,655 (5,875)
29,701,557 (17,601,732) 3,054,817,788

85,145,057 15,960,283 (472,048,791) (121,967,015) (148,709,256) (641,619,722)

905,712,013 35,086,769
(917,318,341) 23,480,441

48,223,638 1,521,937,801

$

1,570,161,439

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF CASH FLOWS FOR FISCAL YEAR ENDED JUNE 30, 2018
RECONCILIATION OF OPERATING LOSS TO NET CASH USED BY OPERATING ACTIVITIES:
Operating Loss Adjustments to Reconcile Net Operating Loss to Net Cash Used by Operating Activities
Depreciation Operating Expenses Related to Noncash Gifts Change in Assets and Liabilities:
Receivables, net Inventories Prepaid Items Other Assets Notes Receivable, Net Accounts Payable Salaries Payable Benefits Payable Contracts Payable Retainage Payable Deposits Advances (Including Tuition and Fees) Other Liabilities Funds Held for Others Compensated Absences Due to Affiliated Organizations Pollution Remediation Claims and Judgments Net Pension Liability Other Post-Employment Benefit Liability Deferred Inflows of Resources Deferred Outflows of Resources
Net Cash Used by Operating Activities
NON-CASH INVESTING, NON-CAPITAL FINANCING, AND CAPITAL AND RELATED FINANCING TRANSACTIONS
Change in Receivable from Grantor Agency Affecting Proceeds of Non-capital Debt Change in Non-capital Financing Activities Advances and Deferred Inflows Reducing Proceeds of Grants Gifts other than Capital Assets Reducing Proceeds of Grants and Gifts Change in Capital Financing Activities Receivables Reducing Proceeds of Capital Grants Gifts of Capital Assets Loss on Disposal of Capital Assets Adjustments to Capital Asset Beginning Balance Ran Through Current Year Activity Change in Accrual of Capital Asset Related Payables Capital Assets Acquired by Incurring Capital Lease Obligations Change in Lease obligations due to Debt Refunding or Extinguishment of Debt Capital Financing Activities Advances and Deferred Inflows Amortization of Deferred Gain/Loss of Capital Debt Refunded Changed in Accrual of Capital Financing Interest Payable Special Item - Capital Asset Transfer Special Item - Capital Asset Transfer Reducing Capital Grants and Gifts Unrealized Gain/Loss on Investments
The notes to the financial statements are an integral part of this statement.

University System of Georgia

$

(3,027,514,140)

492,217,725 6,367,202

(24,954,234) 661,870
(8,576,376) (702,126) 3,315,752
(7,020,985) 7,626,333 (13,926,920)
962,985 228,379 380,735 10,532,619 (931,074)
(7,295) 8,784,125 (189,785) (180,675) (787,199) (281,769,074) 17,272,070 304,416,518 125,338,701

$

(2,388,454,869)

$

13,545,833

$

13,659,197

$

6,349,973

$

(1,266,589)

$

199,147,677

$

(51,081,663)

$

131,426

$

(1,238,934)

$

(16,134,248)

$

23,555,691

$

3,581,921

$

3,498,703

$

2,070,858

$

(10,272,842)

$

2,143,660

$

9,964,498

2018 Annual Financial Report 41

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF FIDUCIARY NET POSITION JUNE 30, 2018

ASSETS Cash and Cash Equivalents Investments Mutual Bond Funds Equity Mutual Funds - Domestic Equity Mutual Funds - International Equity Securities - Domestic Guaranteed Investment Contracts Pooled Investment Other Investments

Early Retirement Plan - Augusta
University

Deferred Compensation
Fund

Retiree Health Benefit Fund

$

4,865,193 $

4,731,089 $

16,539,659 $

13,079,318 48,759,325
-- 32,318,283
-- -- --

1,130,861 1,914,911
10,944 --
1,061,901 --
646,316

-- -- -- -- -- 64,136,763 --

Total Assets

99,022,119

9,496,022

80,676,422

LIABILITIES Benefits Payable

--

--

4,631,431

NET POSITION Held in Trust for: Other Employment Benefits Pension Benefits Other Postemployment Benefits

-- 99,022,119
--

9,496,022 -- --

-- -- 76,044,991

Total Net Position

$

99,022,119 $

9,496,022 $

76,044,991 $

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

Total
26,135,941
14,210,179 50,674,236
10,944 32,318,283
1,061,901 64,136,763
646,316
189,194,563
4,631,431
9,496,022 99,022,119 76,044,991
184,563,132

42 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR FISCAL YEAR ENDED JUNE 30, 2018

ADDITIONS Contributions Employer
Investment Income Dividends and Interest Net Appreciation in Investments Reported at Fair Value Less: Investment Expense
Total Additions
DEDUCTIONS Benefits Premium Expense Withdrawal Administrative expense
Total Deductions
Change in Net Position Held in Trust for Pension and Other Employee Benefits
Net Position, Beginning of Year

Early Retirement Plan - Augusta
University

Deferred Compensation
Fund

Retiree Health Benefit Fund

Total

$

13,084,672 $

1,148,887 $

158,419,937 $

172,653,496

1,814,737
7,666,447 (166,966)
22,398,890

491,952
401,174 --
2,042,013

1,000,224
(158,389) (40,519)
159,221,253

3,306,913
7,909,232 (207,485)
183,662,156

13,784,836 -- -- --
13,784,836

-- -- 139,810 --
139,810

86,808,731 3,739,929 -- 484,825
91,033,485

100,593,567 3,739,929 139,810 484,825
104,958,131

8,614,054 90,408,065

1,902,203 7,593,819

68,187,768 7,857,223

78,704,025 105,859,107

Net Position, End of Year

$

99,022,119 $

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

9,496,022 $

76,044,991 $

184,563,132

2018 Annual Financial Report 43

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS JUNE 30, 2018

ASSETS Current Assets Cash and Cash Equivalents Cash and Cash Equivalents (Externally Restricted) Short-term Investments Short-term Investments (Externally Restricted) Accounts Receivable, net Federal Financial Assistance Affiliated Organizations Component Units Primary Government (Institution) Pledges and Contributions Other Notes Receivable, net Investment in Capital Leases - Primary Government Investment in Capital Leases - Other Inventories Prepaid Items Other Assets Total Current Assets

Augusta University Foundation, Inc.

Augusta University Research Institute, Inc.

AU Health Systems, Inc.

Georgia Advanced Technology Ventures, Inc.

Georgia College & State University Foundation, Inc.

Georgia Gwinnett College
Foundation Inc.

$

3,599,289 $

3,253,919

1,482,318

--

-- 443,489
-- -- 156,166 52,991 -- 1,119,649 -- -- -- -- 10,107,821

4,381,937 $ -- -- --

62,015,768 $ 4,196,045
37,961,738 3,671,699

4,154,994 -- --
7,500 -- -- -- -- -- -- -- --
8,544,431

-- 138,785
-- 4,620,932
-- 149,885,409
-- 1,186,728
-- 19,105,346 17,410,195
-- 300,192,645

5,422,533 $ 92,960 -- --
-- -- -- -- 156,785 98,896 15,668 -- -- -- 27,948 227,214 6,042,004

3,257,017 $ -- -- --
-- -- -- -- 304,457 1,295 -- -- -- -- 30,002 -- 3,592,771

613,210 -- -- --
-- -- -- 4,548 143,021 59,381 -- 4,495,046 -- -- -- -- 5,315,206

Non-Current Assets Accounts Receivable, net Affiliated Organizations Component Units Pledges and Contributions Other Investments Notes Receivable, net Investment in Capital Leases - Primary Government Investment in Capital Leases - Other Other Assets Non-current Cash (Externally Restricted) Short-term Investments (Externally Restricted) Investments (Externally Restricted) Capital Assets, net Total Non-Current Assets
TOTAL ASSETS

-- -- 166,876 -- 8,065,133 -- 23,975,501 -- 749,766 -- -- 20,046,067 -- 53,003,343 63,111,164

-- -- -- -- 4,198,751 -- -- -- -- -- -- -- -- 4,198,751 12,743,182

-- -- -- 14,966,249 108,259,000 -- 22,519,524 -- 5,518,129 -- -- -- 256,138,375 407,401,277 707,593,922

-- -- 598,428 -- 15,000 -- -- -- -- 38,304,169 -- -- 115,225,475 154,143,072 160,185,076

-- -- 361,972 -- 37,828,406 -- 84,779,839 -- 945,869 -- -- 13,159,200 1,216,075 138,291,361 141,884,132

-- -- 208,920 -- 5,814,352 -- 161,166,269 -- 10,857 11,730,393 -- -- 8,262,388 187,193,179 192,508,385

DEFERRED OUTFLOWS OF RESOURCES

$

--$

--$

--$

--$

--$

--

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

44 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS JUNE 30, 2018

LIABILITIES Current Liabilities Accounts Payable Salaries Payable Benefits Payable Retainage Payable Interest Payable Due to Affiliated Organizations Due to Component Units Due to Primary Government Advances (Including Tuition and Fees) Deposits Deposits Held for Other Organizations Other Liabilities Notes and Loans Payable Lease Purchase Obligations - External Revenue Bond/Mortgage Payable Liabilities Under Split Interest Agreements Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities

Augusta University Foundation, Inc.

Augusta University Research Institute, Inc.

AU Health Systems, Inc.

Georgia Advanced Technology Ventures, Inc.

Georgia College & State University Foundation, Inc.

Georgia Gwinnett College
Foundation Inc.

$

467,473 $

37,255 $

42,051,559 $

1,024,191 $

1,021,259 $

3,404,499

--

--

11,655,786

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

428,576

--

--

777,751

1,966,905

--

--

--

163,152

566,035

--

--

178,289

4,161,470

35,692,611

--

34,041

52,624

49,561

--

--

2,270,401

--

618,526

--

--

--

175,193

--

--

--

--

--

--

3,404,151

--

--

18,536

7,850,066

134,360

--

--

--

--

3,254,167

221,023

--

117,646

--

--

5,469,281

1,708,100

--

--

960,000

--

2,945,000

--

2,655,000

3,575,000

--

--

--

--

--

--

--

--

--

561,929

--

--

--

--

--

--

--

--

--

--

19,392,373

--

--

--

2,083,899

4,217,261

128,473,995

7,438,983

9,081,356

7,768,295

Non-Current Liabilities Due to Affiliated Organizations Due to Component Units Due to Primary Government Due to Other Funds Advances (Including Tuition and Fees) Other Liabilities Notes and Loans Payable Lease Purchase Obligations - External Revenue Bonds/Mortgage Payable Liabilities Under Split Interest Agreements Interest Rate Swap Claims and Judgments Net Other Post Employment Benefits Liability Total Non-Current Liabilities
TOTAL LIABILITIES

-- -- -- -- -- -- -- -- 23,118,925 -- -- -- -- 23,118,925 25,202,824

-- -- -- -- -- -- -- -- -- -- -- -- -- -- 4,217,261

-- -- -- -- -- 16,348,297 60,595,833 17,777,061 129,102,958 -- 14,818,596 -- 6,165,679 244,808,424 373,282,419

-- 587,877
-- -- 1,876,072 -- 6,571,364 52,804,919 61,658,199 -- -- -- -- 123,498,431 130,937,414

-- -- -- -- -- -- -- -- 92,186,880 808,641 5,479,942 -- -- 98,475,463 107,556,819

-- -- -- -- -- -- 2,151,394 -- 168,713,233 -- -- -- -- 170,864,627 178,632,922

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

--

--

NET POSITION Net Investment in Capital Assets Restricted for: Nonexpendable Expendable Unrestricted
TOTAL NET POSITION

--

19,392,067

15,515,865

3,000,408

$

37,908,340 $

--

87,762,033

29,412,127

1,216,075

8,262,388

-- 69,973 8,455,948 8,525,921 $

-- -- 246,549,470 334,311,503 $

-- 7,128,464 (7,292,929) 29,247,662 $

19,572,735 9,193,328 4,345,175
34,327,313 $

1,468,963 1,302,018 2,842,094 13,875,463

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

2018 Annual Financial Report 45

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS JUNE 30, 2018

ASSETS Current Assets Cash and Cash Equivalents Cash and Cash Equivalents (Externally Restricted) Short-term Investments Short-term Investments (Externally Restricted) Accounts Receivable, net Federal Financial Assistance Affiliated Organizations Component Units Primary Government (Institution) Pledges and Contributions Other Notes Receivable, net Investment in Capital Leases - Primary Government Investment in Capital Leases - Other Inventories Prepaid Items Other Assets Total Current Assets

Georgia Health Sciences
Foundation, Inc.

Georgia Southern University Housing
Foundation, Inc.

Georgia State University Athletic Association, Inc.

Georgia State University
Foundation, Inc.

Georgia State University Research
Foundation, Inc.

Georgia Tech Athletic
Association

$

323,160 $

--

10,848,632

--

2,288,634 $ --
5,997,280 --

3,302,696 $ -- -- --

5,866,847 $ 22,354,408
-- --

11,607,729 $ 2,842,889 -- --

7,935,052 -- -- --

-- -- 163,152 -- 3,358,852 65,793 -- -- -- -- 42,103 -- 14,801,692

-- -- -- -- -- 32,504 -- 8,847,508 -- -- 73,197 -- 17,239,123

-- -- -- -- 12,921,741 488,536 -- -- -- -- 263,403 -- 16,976,376

-- -- -- -- 5,798,990 509,290 -- 4,817,806 -- -- -- -- 39,347,341

-- -- 54,180 2,546,660 -- 16,858,655 -- 2,309,831 -- -- 13,873,078 -- 50,093,022

-- 1,034,347
-- -- 3,327,816 3,871,523 -- -- -- -- 1,203,090 -- 17,371,828

Non-Current Assets Accounts Receivable, net Affiliated Organizations Component Units Pledges and Contributions Other Investments Notes Receivable, net Investment in Capital Leases - Primary Government Investment in Capital Leases - Other Other Assets Non-current Cash (Externally Restricted) Short-term Investments (Externally Restricted) Investments (Externally Restricted) Capital Assets, net Total Non-Current Assets
TOTAL ASSETS

-- -- 137,670 -- 2,491,483 -- -- -- -- -- -- 2,513,812 2,330,775 7,473,740 22,275,432

-- -- -- -- -- -- 213,117,609 -- -- 31,879,724 -- -- 1,620,000 246,617,333 263,856,456

-- -- -- -- -- -- -- -- -- -- -- -- 254,088 254,088 17,230,464

-- -- 8,342,840 -- 238,909,631 -- 117,046,402 -- 3,864,055 -- -- -- 15,324,667 383,487,595 422,834,936

-- -- -- -- 8,954,655 -- 70,056,371 -- -- -- -- -- 8,555,539 87,566,565 137,659,587

-- -- 4,529,908 -- 109,095,500 -- -- -- 723,496 -- -- -- 164,171,096 278,520,000 295,891,828

DEFERRED OUTFLOWS OF RESOURCES

$

--$

--$

--$

--$

8,355,807 $

16,859,114

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

46 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS JUNE 30, 2018

LIABILITIES Current Liabilities Accounts Payable Salaries Payable Benefits Payable Retainage Payable Interest Payable Due to Affiliated Organizations Due to Component Units Due to Primary Government Advances (Including Tuition and Fees) Deposits Deposits Held for Other Organizations Other Liabilities Notes and Loans Payable Lease Purchase Obligations - External Revenue Bond/Mortgage Payable Liabilities Under Split Interest Agreements Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities

Georgia Health Sciences
Foundation, Inc.

Georgia Southern University Housing
Foundation, Inc.

Georgia State University Athletic Association, Inc.

Georgia State University
Foundation, Inc.

Georgia State University Research
Foundation, Inc.

Georgia Tech Athletic
Association

$

72,180 $

3,921,771 $

610,494 $

3,908,976 $

1,955,440 $

4,733,678

--

--

17,750

--

--

--

--

--

5,858

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

17,607

--

--

--

--

--

--

--

--

--

54,180

--

339,033

--

--

--

22,633,382

1,808,231

526,887

566,562

1,431,256

1,250,000

--

354,537

--

--

--

--

--

10,471,740

--

--

--

2,339,862

--

--

--

--

3,296

912,043

--

--

--

--

--

--

--

945,963

--

--

18,829

617,900

--

69,087

--

7,985,000

--

5,145,000

--

1,145,000

90,485

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

1,279,688

--

--

--

--

--

--

1,046,192

12,473,333

2,087,483

14,173,781

24,643,002

20,807,924

Non-Current Liabilities Due to Affiliated Organizations Due to Component Units Due to Primary Government Due to Other Funds Advances (Including Tuition and Fees) Other Liabilities Notes and Loans Payable Lease Purchase Obligations - External Revenue Bonds/Mortgage Payable Liabilities Under Split Interest Agreements Interest Rate Swap Claims and Judgments Net Other Post Employment Benefits Liability Total Non-Current Liabilities
TOTAL LIABILITIES

-- -- -- -- -- -- -- -- -- 187,097 -- -- -- 187,097 1,233,289

-- -- 2,596,400 -- -- 10,558 -- -- 218,090,508 -- -- -- -- 220,697,466 233,170,799

-- -- -- -- -- -- -- 15,141 -- -- -- -- -- 15,141 2,102,624

-- -- -- -- -- 5,434,496 -- -- 131,052,210 1,714,796 -- -- -- 138,201,502 152,375,283

-- -- -- -- -- -- -- -- 81,081,458 -- -- -- -- 81,081,458 105,724,460

-- -- -- -- -- -- 4,136,573 51,815 214,850,250 -- -- 765,928 -- 219,804,566 240,612,490

DEFERRED INFLOWS OF RESOURCES

--

75,231

--

--

13,865,500

--

NET POSITION Net Investment in Capital Assets Restricted for: Nonexpendable Expendable Unrestricted
TOTAL NET POSITION

2,330,775

1,620,000

2,582,665

--

13,909,247

31,879,724

2,219,456

(2,889,298)

$

21,042,143 $

30,610,426 $

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

220,118

15,324,667

-- 2,650,111 12,257,611 15,127,840 $

164,209,327 64,799,156 26,126,503
270,459,653 $

8,555,539

(40,473,605)

-- 11,646,077
6,223,818 26,425,434 $

37,154,723 71,476,970
3,980,364 72,138,452

2018 Annual Financial Report 47

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS JUNE 30, 2018

ASSETS Current Assets Cash and Cash Equivalents Cash and Cash Equivalents (Externally Restricted) Short-term Investments Short-term Investments (Externally Restricted) Accounts Receivable, net Federal Financial Assistance Affiliated Organizations Component Units Primary Government (Institution) Pledges and Contributions Other Notes Receivable, net Investment in Capital Leases - Primary Government Investment in Capital Leases - Other Inventories Prepaid Items Other Assets Total Current Assets

Georgia Tech Facilities, Inc.

Georgia Tech Foundation, Inc.

Georgia Tech Research Corporation

Kennesaw State University
Foundation, Inc.

Medical College of Georgia Foundation

Middle Georgia State University
Real Estate Foundation, Inc.

$

7,332,379 $

9,910,000 $

76,115,265 $

17,918,782 $

28,177,571

11,757,000

--

--

--

--

--

12,349,804

--

--

--

--

-- 1,591,980
600,000 -- -- -- --
9,498,087 -- --
256,189 --
47,456,206

-- -- -- -- 22,493,000 24,041,000 -- 6,987,880 -- -- -- -- 75,188,880

-- -- -- -- -- 170,816,370 -- -- 346,304 -- 503,747 -- 247,781,686

-- -- -- 346,542 3,493,880 300,459 -- 9,234,713 -- -- 226,338 -- 43,870,518

1,425,386 $ -- -- --

2,185,769 -- -- --

-- -- -- -- 597,409 -- -- -- -- -- -- -- 2,022,795

-- -- -- -- -- 61,394,127 -- 747,495 -- -- 7,275 -- 64,334,666

Non-Current Assets Accounts Receivable, net Affiliated Organizations Component Units Pledges and Contributions Other Investments Notes Receivable, net Investment in Capital Leases - Primary Government Investment in Capital Leases - Other Other Assets Non-current Cash (Externally Restricted) Short-term Investments (Externally Restricted) Investments (Externally Restricted) Capital Assets, net Total Non-Current Assets
TOTAL ASSETS

6,167,186 553,912 -- -- -- 3,643
215,972,123 --
3,487,500 32,883,455
-- -- 13,820,576 272,888,395 320,344,601

-- -- 82,142,000 -- 1,095,524,000 -- 110,230,281 -- 24,783,000 -- -- 554,025,000 111,683,000 1,978,387,281 2,053,576,161

-- -- -- -- 63 -- -- 4,048,306 -- -- -- -- 934,597 4,982,966 252,764,652

-- -- 5,900,843 -- 15,095,722 -- 219,778,178 -- -- 53,669,323 -- 35,739,920 87,213,893 417,397,879 461,268,397

-- -- 932,102 16,588 120,894,345 -- -- -- 264,596 -- -- 129,629,157 9,934,459 261,671,247 263,694,042

-- -- -- -- -- -- 32,462,372 -- -- -- 3,434,162 -- 789,332 36,685,866 101,020,532

DEFERRED OUTFLOWS OF RESOURCES

$

--$

--$

--$

--$

--$

--

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

48 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS JUNE 30, 2018

LIABILITIES Current Liabilities Accounts Payable Salaries Payable Benefits Payable Retainage Payable Interest Payable Due to Affiliated Organizations Due to Component Units Due to Primary Government Advances (Including Tuition and Fees) Deposits Deposits Held for Other Organizations Other Liabilities Notes and Loans Payable Lease Purchase Obligations - External Revenue Bond/Mortgage Payable Liabilities Under Split Interest Agreements Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities

Georgia Tech Facilities, Inc.

Georgia Tech Foundation, Inc.

Georgia Tech Research Corporation

Kennesaw State University
Foundation, Inc.

Medical College of Georgia Foundation

Middle Georgia State University
Real Estate Foundation, Inc.

$

5,735,907 $

3,077,000 $

296 $

9,473,772 $

--

--

--

--

--

--

--

--

1,255,140

--

--

--

--

--

--

--

1,034,347

--

--

--

--

--

--

--

--

7,249,000

97,118,000

1,599,219

1,235,883

21,756,000

53,742,326

1,068,340

--

191,000

--

29,678

--

--

28,158,408

--

--

--

5,071,544

--

--

20,733,000

--

--

--

--

384,315

--

11,403,267

11,425,000

--

12,715,000

--

1,465,000

--

35,782

--

--

--

--

--

--

--

--

--

409,000

--

--

20,664,544

66,305,000

184,474,889

24,921,791

--$ -- -- -- -- -- -- 104,503 -- -- -- 66,440 5,000,000 -- -- -- -- -- -- 5,170,943

2,258,105 -- -- -- -- -- -- -- -- -- -- --
773,000 --
1,710,000 -- -- -- --
4,741,105

Non-Current Liabilities Due to Affiliated Organizations Due to Component Units Due to Primary Government Due to Other Funds Advances (Including Tuition and Fees) Other Liabilities Notes and Loans Payable Lease Purchase Obligations - External Revenue Bonds/Mortgage Payable Liabilities Under Split Interest Agreements Interest Rate Swap Claims and Judgments Net Other Post Employment Benefits Liability Total Non-Current Liabilities
TOTAL LIABILITIES

-- -- -- -- 1,587,448 -- -- -- 252,845,825 -- -- -- -- 254,433,273 275,097,817

6,615,000 -- -- -- --
8,842,000 46,442,000
-- 236,889,000
14,062,000 -- -- --
312,850,000 379,155,000

-- -- -- -- -- -- -- 4,010,295 -- -- -- -- -- 4,010,295 188,485,184

-- -- -- -- -- -- -- -- 362,381,063 55,941 -- -- -- 362,437,004 387,358,795

-- -- -- -- -- -- -- -- -- 869,766 -- -- -- 869,766 6,040,709

-- -- -- -- -- -- -- -- 89,584,844 -- -- -- -- 89,584,844 94,325,949

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

--

--

NET POSITION Net Investment in Capital Assets Restricted for: Nonexpendable Expendable Unrestricted
TOTAL NET POSITION

11,625,686

48,844,000

934,597

(34,972,296)

4,934,459

--

734,346,000

--

39,189,061

129,629,157

27,581,430

786,558,000

--

23,557,184

87,382,351

6,039,668

104,673,161

63,344,871

46,135,653

35,707,366

$

45,246,784 $ 1,674,421,161 $

64,279,468 $

73,909,602 $ 257,653,333 $

789,332
-- 6,334,271 (429,020) 6,694,583

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

2018 Annual Financial Report 49

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS JUNE 30, 2018

ASSETS Current Assets Cash and Cash Equivalents Cash and Cash Equivalents (Externally Restricted) Short-term Investments Short-term Investments (Externally Restricted) Accounts Receivable, net Federal Financial Assistance Affiliated Organizations Component Units Primary Government (Institution) Pledges and Contributions Other Notes Receivable, net Investment in Capital Leases - Primary Government Investment in Capital Leases - Other Inventories Prepaid Items Other Assets Total Current Assets

University of Georgia Athletic Association, Inc.

University of Georgia
Foundation

University of Georgia Research Foundation, Inc.

University of North Georgia
Real Estate Foundation, Inc.

UWG Real Estate Foundation, Inc.

University System of Georgia
Foundation, Inc.

$

56,249,118 $

2,018,815 $

33,654,301 $

--

15,430,636

--

--

14,066,020

--

--

107,512,399

--

2,463,567 $ 3,972,107
-- --

-- -- 69,857 -- -- 3,152,970 -- -- -- -- 616,863 -- 60,088,808

-- -- -- -- 23,975,890 2,184,582 -- -- -- -- 372,179 -- 165,560,521

-- -- -- 692,665 -- 30,723,081 -- 8,121,304 -- -- 218,013 19,836,301 93,245,665

-- -- -- -- -- -- -- 3,929,655 -- -- 132,313 -- 10,497,642

882,631 $ 4,855,656
740,517 --

692,107 13,224,835
-- --

-- -- -- -- -- -- -- 2,659,246 -- -- -- -- 9,138,050

-- 1,964,907
-- -- 45,276 -- -- 9,533,603 -- -- -- -- 25,460,728

Non-Current Assets Accounts Receivable, net Affiliated Organizations Component Units Pledges and Contributions Other Investments Notes Receivable, net Investment in Capital Leases - Primary Government Investment in Capital Leases - Other Other Assets Non-current Cash (Externally Restricted) Short-term Investments (Externally Restricted) Investments (Externally Restricted) Capital Assets, net Total Non-Current Assets
TOTAL ASSETS

-- -- -- -- 53,473,069 -- -- -- 383,531 -- -- -- 316,714,200 370,570,800 430,659,608

-- -- 45,461,172 -- 116,124,963 -- -- -- 14,930,888 -- -- 902,418,572 23,642,386 1,102,577,981 1,268,138,502

-- -- -- -- 49,419,215 -- 231,616,248 -- 824,360 8,192,909 -- -- 19,406,427 309,459,159 402,704,824

-- -- -- -- -- -- 127,710,333 -- -- 3,969,228 -- -- 2,738,131 134,417,692 144,915,334

-- -- -- -- 248,305 -- 114,180,350 -- -- 3,572,705 -- -- -- 118,001,360 127,139,410

-- -- -- -- 5,458,580 -- 393,272,230 -- 1,865 9,520,925 -- -- -- 408,253,600 433,714,328

DEFERRED OUTFLOWS OF RESOURCES

$

13,353,531 $

--$

15,086,273 $

--$

--$

--

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

50 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS JUNE 30, 2018

LIABILITIES Current Liabilities Accounts Payable Salaries Payable Benefits Payable Retainage Payable Interest Payable Due to Affiliated Organizations Due to Component Units Due to Primary Government Advances (Including Tuition and Fees) Deposits Deposits Held for Other Organizations Other Liabilities Notes and Loans Payable Lease Purchase Obligations - External Revenue Bond/Mortgage Payable Liabilities Under Split Interest Agreements Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities

University of Georgia Athletic Association, Inc.

University of Georgia
Foundation

University of Georgia Research
Foundation, Inc.

University of North Georgia
Real Estate Foundation, Inc.

UWG Real Estate Foundation, Inc.

University System of Georgia
Foundation, Inc.

$

5,663,152 $

6,953,376

--

--

--

--

--

6,936,673

34,667,957

--

--

--

--

--

5,495,000

--

--

--

--

59,716,158

1,713,310 $ -- -- -- -- -- --
2,539,952 1,753,250
-- -- -- 497,395 -- -- 778,433 -- -- -- 7,282,340

1,835,871 $ -- -- -- --
9,495 --
36,464,196 2,066,732
19,836,301 -- --
8,516,222 --
9,145,000 -- -- -- --
77,873,817

2,692,247 $ -- -- -- -- -- -- --
414,217 -- -- --
405,000 --
1,338,755 -- -- -- --
4,850,219

1,069,570 $ -- -- -- -- -- -- -- -- -- -- -- -- --
3,015,000 -- -- -- --
4,084,570

906,895 -- -- -- -- -- -- -- -- --
1,865 --
40,350,000 --
7,545,000 -- -- -- --
48,803,760

Non-Current Liabilities Due to Affiliated Organizations Due to Component Units Due to Primary Government Due to Other Funds Advances (Including Tuition and Fees) Other Liabilities Notes and Loans Payable Lease Purchase Obligations - External Revenue Bonds/Mortgage Payable Liabilities Under Split Interest Agreements Interest Rate Swap Claims and Judgments Net Other Post Employment Benefits Liability Total Non-Current Liabilities
TOTAL LIABILITIES

-- -- -- -- -- 379,923 15,836,592 -- 95,207,340 -- 2,784,451 -- -- 114,208,306 173,924,464

-- -- -- 649,103 -- -- 15,011,522 -- -- 7,987,174 1,269,901 -- -- 24,917,700 32,200,040

-- -- -- -- 1,803,676 -- -- -- 245,099,853 -- -- -- -- 246,903,529 324,777,346

-- -- -- -- -- -- 1,215,000 -- 130,793,255 -- -- -- -- 132,008,255 136,858,474

-- -- -- -- -- -- -- -- 118,309,422 -- -- -- -- 118,309,422 122,393,992

-- -- -- -- -- -- 34,086,201 -- 335,630,633 -- -- -- -- 369,716,834 418,520,594

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

--

--

NET POSITION Net Investment in Capital Assets Restricted for: Nonexpendable Expendable Unrestricted
TOTAL NET POSITION

210,744,348

8,133,469

10,890,205

--

596,270,687

--

505,135,826

59,344,327

126,398,480

$ 270,088,675 $ 1,235,938,462 $

-- 2,427,821 79,695,725 93,013,751 $

2,738,131
-- -- 5,318,729 8,056,860 $

--

--

-- -- 4,745,418 4,745,418 $

418,998 259,060 14,515,676 15,193,734

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

2018 Annual Financial Report 51

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS JUNE 30, 2018
ASSETS Current Assets Cash and Cash Equivalents Cash and Cash Equivalents (Externally Restricted) Short-term Investments Short-term Investments (Externally Restricted) Accounts Receivable, net Federal Financial Assistance Affiliated Organizations Component Units Primary Government (Institution) Pledges and Contributions Other Notes Receivable, net Investment in Capital Leases - Primary Government Investment in Capital Leases - Other Inventories Prepaid Items Other Assets Total Current Assets
Non-Current Assets Accounts Receivable, net Affiliated Organizations Component Units Pledges and Contributions Other Investments Notes Receivable, net Investment in Capital Leases - Primary Government Investment in Capital Leases - Other Other Assets Non-current Cash (Externally Restricted) Short-term Investments (Externally Restricted) Investments (Externally Restricted) Capital Assets, net Total Non-Current Assets
TOTAL ASSETS
DEFERRED OUTFLOWS OF RESOURCES
The notes to the financial statements are an integral part of this statement.

VSU Auxiliary Services Real
Estate Foundation, Inc.

Elimination/ Consolidation
Entries

Total

$

2,463,913 $

--

--

--

-- -- -- -- -- 301,738 -- 4,815,329 -- -- 13,976 -- 7,594,956

--$ -- -- --

323,925,905 110,158,026
83,446,309 111,184,098

-- -- (887,189) -- -- -- -- -- -- -- -- -- (887,189)

4,154,994 5,173,508
-- 8,218,847 76,773,283 464,838,600
15,668 78,303,880
346,304 19,105,346 35,269,909 20,063,515 1,340,978,192

-- -- -- -- -- -- 163,697,876 -- -- -- -- 11,047,703 227,338 174,972,917 182,567,873

-- (553,912) (12,921,741)
(9,495) -- -- -- -- -- -- -- -- --
(13,485,148) (14,372,337)

6,167,186 --
135,860,990 14,973,342
1,979,870,173 3,643
2,301,581,506 4,048,306
56,487,912 193,722,831
3,434,162 1,668,579,431 1,160,202,817 7,524,932,299 8,865,910,491

$

--$

--$

53,654,725

52 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS JUNE 30, 2018
LIABILITIES Current Liabilities Accounts Payable Salaries Payable Benefits Payable Retainage Payable Interest Payable Due to Affiliated Organizations Due to Component Units Due to Primary Government Advances (Including Tuition and Fees) Deposits Deposits Held for Other Organizations Other Liabilities Notes and Loans Payable Lease Purchase Obligations - External Revenue Bond/Mortgage Payable Liabilities Under Split Interest Agreements Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities
Non-Current Liabilities Due to Affiliated Organizations Due to Component Units Due to Primary Government Due to Other Funds Advances (Including Tuition and Fees) Other Liabilities Notes and Loans Payable Lease Purchase Obligations - External Revenue Bonds/Mortgage Payable Liabilities Under Split Interest Agreements Interest Rate Swap Claims and Judgments Net Other Post Employment Benefits Liability Total Non-Current Liabilities
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES
NET POSITION Net Investment in Capital Assets Restricted for: Nonexpendable Expendable Unrestricted
TOTAL NET POSITION
The notes to the financial statements are an integral part of this statement.

VSU Auxiliary Services Real Estate Foundation

Elimination/ Consolidation
Entries

Total

$

2,466,275 $

(34,512,948) $

65,588,227

--

--

18,626,912

--

--

5,858

--

--

1,255,140

--

34,443,091

34,443,091

--

(9,495)

4,225,186

--

(783,367)

--

--

--

216,911,224

--

--

123,772,435

--

--

30,703,912

--

--

33,904,286

--

--

14,056,285

--

--

80,813,416

--

--

8,267,512

3,980,000

--

92,182,022

--

--

2,369,700

--

--

561,929

--

--

1,279,688

--

--

19,801,373

6,446,275

(862,719)

748,768,196

-- -- -- -- -- -- -- -- 162,874,394 -- 5,823,186 -- -- 168,697,580 175,143,855
--

-- (587,877)
-- -- -- -- -- -- -- -- -- -- -- (587,877) (1,450,596)

6,615,000 --
2,596,400 649,103
5,267,196 31,015,274 186,046,479 74,659,231 3,149,470,250 25,685,415 30,176,076
765,928 6,165,679 3,519,112,031 4,267,880,227

--

13,940,731

227,338

--

379,119,386

--

--

1,744,234,383

--

--

1,668,806,876

7,196,680

(12,921,741)

845,583,613

$

7,424,018 $ (12,921,741) $ 4,637,744,258

2018 Annual Financial Report 53

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION COMPONENT UNITS FOR FISCAL YEAR ENDED JUNE 30, 2018

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Rents and Royalties Auxiliary Enterprises Food Services Health Services Intercollegiate Athletics Gifts and Contributions Endowment Income Other Operating Revenues

Augusta University Foundation, Inc.

Augusta University Research Foundation, Inc.

AU Health Systems, Inc.

Georgia Advanced Technology Ventures, Inc.

Georgia College & State University Foundation, Inc.

Georgia Gwinnett College
Foundation Inc.

$

--$

50,592,029 $

4,659,630 $

--$

--$

--

--

--

--

--

--

--

43,920

10,156,955

--

28,609

--

--

789,046

--

817,829,308

364,193

--

82,677

174,859

351,258

986,098

12,927,160

5,150,235

9,233,008

-- -- -- 1,375,772 912,577 212,272

--

2,051,622

--

--

--

--

--

--

--

--

--

--

-- -- -- 267,720 -- 256,876

-- -- -- 4,386,738 2,443,949 151,110

-- -- -- 1,589,988 -- --

Total Operating Revenues

3,508,446

61,100,242

825,526,658

13,844,558

12,132,032

10,905,673

OPERATING EXPENSES Staff Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation

-- -- -- -- 656,961 -- 1,864,933 6,240

-- -- -- -- -- -- 61,088,356 --

278,131,467 34,129,281
142,150,598 2,775,744 1,378,740 4,399,194
309,801,866 36,175,226

288,973 -- -- -- --
34,476 6,773,651 2,920,645

196,359 -- --
90,380 820,559
60,652 4,902,767
55,157

-- -- -- -- 249,979 -- 1,697,582 457

Total Operating Expenses

2,528,134

61,088,356

808,942,116

10,017,745

6,125,874

1,948,018

Operating Income (Loss)

$

980,312 $

11,886 $

16,584,542 $

3,826,813 $

6,006,158 $

8,957,655

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

54 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION COMPONENT UNITS FOR FISCAL YEAR ENDED JUNE 30, 2018

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues
Income (Loss) Before Other Revenues, Expenses, Gains, or Losses
Capital Grants and Gifts Other
Additions to Permanent and Term Endowments Special Item

Augusta University Foundation, Inc.

Augusta University Research Foundation, Inc.

AU Health Systems, Inc.

Georgia Advanced Technology Ventures, Inc.

Georgia College & State University Foundation, Inc.

Georgia Gwinnett College
Foundation Inc.

$

--$

--$

29,932,138 $

--$

--$

--

-- -- -- 1,758,828 (879,114) (353,408)

-- -- -- 68,514 -- (18,092)

3,083,581 3,227,028
-- 11,067,969 (8,513,680) (7,033,260)

-- -- -- 48,742 (3,230,936) --

-- -- -- 4,789,364 (4,192,793) (1,979,146)

-- -- -- 330,169 (5,261,844) 2,946,555

526,306

50,422

31,763,776

(3,182,194)

(1,382,575)

(1,985,120)

1,506,618

62,308

48,348,318

644,619

4,623,583

6,972,535

-- 587,066
--

--

(185,163)

--

--

--

--

--

--

--

1,185,205

--

--

-- 162,420
--

Total Other Revenues, Expenses, Gains or Losses

587,066

--

(185,163)

--

1,185,205

162,420

Change in Net Position Net Position, Beginning of Year, Restated

2,093,684 35,814,656

62,308 8,463,613

48,163,155 286,148,348

644,619 28,603,043

5,808,788 28,518,525

7,134,955 6,740,508

Net Position, End of Year

$

37,908,340 $

8,525,921 $ 334,311,503 $

29,247,662 $

34,327,313 $

13,875,463

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

2018 Annual Financial Report 55

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION COMPONENT UNITS FOR FISCAL YEAR ENDED JUNE 30, 2018

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Rents and Royalties Auxiliary Enterprises Food Services Health Services Intercollegiate Athletics Gifts and Contributions Endowment Income Other Operating Revenues

Georgia Health Sciences
Foundation, Inc.

Georgia Southern University Housing
Foundation, Inc.

Georgia State University Athletic Association, Inc.

Georgia State University
Foundation, Inc.

Georgia State University Research
Foundation, Inc.

Georgia Tech Athletic
Association

$

--$

--$

--$

--$

74,603,709 $

--

--

--

--

--

1,537,339

--

1,778,010

--

--

--

18,467,719

--

353,928

--

3,000,241

--

--

64,095,182

12,300

9,899,969

640,717

17,375,554

93,996

9,442,347

-- -- -- 3,260,426 -- 3,195,286

-- -- -- -- -- 7,637,541

-- -- -- 36,074,116 -- 4,052,973

-- -- -- 22,247,918 6,371,836 1,544,394

-- -- -- -- -- 3,032,914

-- -- -- 2,745,332 -- --

Total Operating Revenues

8,599,950

17,537,510

43,768,047

47,539,702

97,735,677

76,282,861

OPERATING EXPENSES Staff Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation

-- -- 2,862,971 189,071 1,007,122 -- 5,988,505 --

-- -- 329,635 -- -- -- 4,199,053 --

10,553,507 279,987 -- 379,662
7,459,242 141,190
13,722,507 70,338

2,251,315 -- --
1,076,496 7,395,350
-- 28,398,259
591,008

-- -- -- 97,771 -- 7,720 93,899,206 708,822

-- -- -- 4,450,024 11,472,295 -- 53,116,718 7,496,855

Total Operating Expenses

10,047,669

4,528,688

32,606,433

39,712,428

94,713,519

76,535,892

Operating Income (Loss)

$

(1,447,719) $

13,008,822 $

11,161,614 $

7,827,274 $

3,022,158 $

(253,031)

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

56 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION COMPONENT UNITS FOR FISCAL YEAR ENDED JUNE 30, 2018

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues
Income (Loss) Before Other Revenues, Expenses, Gains, or Losses
Capital Grants and Gifts Other
Additions to Permanent and Term Endowments Special Item

Georgia Health Sciences
Foundation, Inc.

Georgia Southern University Housing
Foundation, Inc.

Georgia State University Athletic Association, Inc.

Georgia State University
Foundation, Inc.

Georgia State University Research
Foundation, Inc.

Georgia Tech Athletic
Association

$

--$

--$

--$

--$

--$

--

-- -- -- 521,623 (8,769) --

-- -- -- 587,495 (8,262,293) --

--

--

--

--

--

--

--

--

--

--

(281,669)

813,928

--

8,147,416

741,809

9,868,946

--

(1,381,634)

(2,687,677)

(12,540,627)

--

--

663,433

--

512,854

(7,674,798)

--

6,765,782

(1,564,104)

(1,857,753)

(934,865)

5,334,024

11,161,614

14,593,056

1,458,054

(2,110,784)

--

--

--

--

--

10,292,240

158,623

--

--

--

--

2,618,107

--

--

--

--

--

--

Total Other Revenues, Expenses, Gains or Losses

158,623

--

--

--

--

12,910,347

Change in Net Position Net Position, Beginning of Year, Restated

(776,242) 21,818,385

5,334,024 25,276,402

11,161,614 3,966,226

14,593,056 255,866,597

1,458,054 24,967,380

10,799,563 61,338,889

Net Position, End of Year

$

21,042,143 $

30,610,426 $

15,127,840 $ 270,459,653 $

26,425,434 $

72,138,452

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

2018 Annual Financial Report 57

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION COMPONENT UNITS FOR FISCAL YEAR ENDED JUNE 30, 2018

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Rents and Royalties Auxiliary Enterprises Food Services Health Services Intercollegiate Athletics Gifts and Contributions Endowment Income Other Operating Revenues

Georgia Tech Facilities, Inc.

Georgia Tech Foundation, Inc.

Georgia Tech Research Corporation

Kennesaw State University
Foundation, Inc.

Medical College of Georgia Foundation

Middle Georgia State University
Real Estate Foundation, Inc.

$

--$

-- $ 656,384,430 $

--$

--

--

7,887,371

--

23,146,940

--

90,935,250

--

128,535

19,000

--

518,047

14,125,565

29,637,000

13,505,198

44,537,667

--$ -- -- -- 54,287

-- -- -- -- 4,987,537

-- -- -- -- -- 29,205

-- -- -- 41,263,000 -- --

--

--

--

--

--

--

--

--

--

--

8,189,839

2,085,115

--

1,458,003

--

--

--

1,208,708

-- -- -- -- -- 6,041

Total Operating Revenues

37,430,245

70,919,000

768,712,249

54,703,556

3,348,110

4,993,578

OPERATING EXPENSES Staff Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation

-- -- -- -- -- 193,750 904,578 60,000

4,410,000 897,000 603,000 123,000 -- 744,000
101,601,000 4,107,000

-- -- -- 117,632 -- -- 760,462,694 308,743

2,560,101 --
61,564 14,499 1,717,943 3,089,441 14,726,215 5,117,855

784,356 128,677
-- 33,306 1,804,722 28,486 6,916,596 57,305

-- -- -- -- -- -- 8,592,512 --

Total Operating Expenses

1,158,328

112,485,000

760,889,069

27,287,618

9,753,448

8,592,512

Operating Income (Loss)

$

36,271,917 $ (41,566,000) $

7,823,180 $

27,415,938 $

(6,405,338) $

(3,598,934)

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

58 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION COMPONENT UNITS FOR FISCAL YEAR ENDED JUNE 30, 2018

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues
Income (Loss) Before Other Revenues, Expenses, Gains, or Losses
Capital Grants and Gifts Other
Additions to Permanent and Term Endowments Special Item

Georgia Tech Facilities, Inc.

Georgia Tech Foundation, Inc.

Georgia Tech Research Corporation

Kennesaw State University
Foundation, Inc.

Medical College of Georgia Foundation

Middle Georgia State University
Real Estate Foundation, Inc.

$

--$

--$

--$

--$

--$

--

-- -- -- 216,576 (12,417,915) --

-- -- -- 147,748,161 (12,244,000) --

-- -- -- 299,668 -- 36,447

-- -- -- 2,397,293 (14,203,670) --

-- -- -- 19,808,102 -- --

-- -- -- 300,970 (4,475,087) --

(12,201,339)

135,504,161

336,115

(11,806,377)

19,808,102

(4,174,117)

24,070,578

93,938,161

8,159,295

15,609,561

13,402,764

(7,773,051)

--

--

--

--

--

--

--

39,690,000

--

2,479,301

1,864,565

--

--

--

--

(4,795,955)

--

--

Total Other Revenues, Expenses, Gains or Losses

--

39,690,000

--

(2,316,654)

1,864,565

--

Change in Net Position Net Position, Beginning of Year, Restated

24,070,578 21,176,206

133,628,161 1,540,793,000

8,159,295 56,120,173

13,292,907 60,616,695

15,267,329 242,386,004

(7,773,051) 14,467,634

Net Position, End of Year

$

45,246,784 $ 1,674,421,161 $

64,279,468 $

73,909,602 $ 257,653,333 $

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

6,694,583

2018 Annual Financial Report 59

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION COMPONENT UNITS FOR FISCAL YEAR ENDED JUNE 30, 2018

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Rents and Royalties Auxiliary Enterprises Food Services Health Services Intercollegiate Athletics Gifts and Contributions Endowment Income Other Operating Revenues

University of Georgia Athletic Association, Inc.

University of Georgia
Foundation

University of Georgia Research Foundation, Inc.

University of North Georgia
Real Estate Foundation, Inc.

UWG Real Estate Foundation, Inc.

University System of Georgia
Foundation, Inc.

$

--$

--$

--$

--$

--$

--

--

--

--

--

--

--

--

--

180,061,965

--

--

6,197

--

9,664,456

--

--

--

662,521

--

1,161,698

27,740,812

8,438,432

5,853,649

16,195,671

-- -- 145,102,432 -- -- --

-- -- -- 71,836,680 -- --

--

--

--

--

--

--

--

--

--

--

--

--

--

168,477

--

1,140,827

--

--

--

523,103

--

636

439,773

7,905,032

Total Operating Revenues

145,102,432

82,662,834

207,802,777

8,607,545

6,293,422

26,433,351

OPERATING EXPENSES Staff Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation

17,379,558 495,620 --
10,934,918 -- --
100,965,659 10,278,367

447,708 -- --
904,110 63,000 --
105,908,900 1,334,098

-- -- -- -- -- -- 198,862,595 114,739

-- -- -- -- -- -- 947,587 123,290

-- -- -- -- -- -- 161,346 --

347,818 -- --
29,482 1,572,199
-- 1,305,463
--

Total Operating Expenses

140,054,122

108,657,816

198,977,334

1,070,877

161,346

3,254,962

Operating Income (Loss)

$

5,048,310 $ (25,994,982) $

8,825,443 $

7,536,668 $

6,132,076 $

23,178,389

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

60 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION COMPONENT UNITS FOR FISCAL YEAR ENDED JUNE 30, 2018

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues
Income (Loss) Before Other Revenues, Expenses, Gains, or Losses
Capital Grants and Gifts Other
Additions to Permanent and Term Endowments Special Item

University of Georgia Athletic Association, Inc.

University of Georgia
Foundation

University of Georgia Research Foundation, Inc.

University of North Georgia
Real Estate Foundation, Inc.

UWG Real Estate Foundation, Inc.

University System of Georgia
Foundation, Inc.

$

--$

--$

--$

--$

--$

--

-- -- 27,020,882 3,357,675 (3,323,491) (18,690)

-- -- -- 84,594,622 940,830 (2,373,000)

-- -- -- 846,993 (10,613,517) 955,000

-- -- -- 143,280 (5,629,528) --

-- -- -- 145,203 (5,054,010) --

-- -- -- (33,889) (9,467,404) --

27,036,376

83,162,452

(8,811,524)

(5,486,248)

(4,908,807)

(9,501,293)

32,084,686

57,167,470

13,919

2,050,420

1,223,269

13,677,096

--

--

--

55,915,213

--

--

-- -- (354,800)

-- -- (2,734,622)

--

--

--

61,450

--

--

Total Other Revenues, Expenses, Gains or Losses

--

55,915,213

(354,800)

(2,734,622)

--

61,450

Change in Net Position Net Position, Beginning of Year, Restated

32,084,686 238,003,989

113,082,683 1,122,855,779

(340,881) 93,354,632

(684,202) 8,741,062

1,223,269 3,522,149

13,738,546 1,455,188

Net Position, End of Year

$ 270,088,675 $ 1,235,938,462 $

93,013,751 $

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

8,056,860 $

4,745,418 $

15,193,734

2018 Annual Financial Report 61

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION COMPONENT UNITS FOR FISCAL YEAR ENDED JUNE 30, 2018

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Rents and Royalties Auxiliary Enterprises Food Services Health Services Intercollegiate Athletics Gifts and Contributions Endowment Income Other Operating Revenues
Total Operating Revenues
OPERATING EXPENSES Staff Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses
Operating Income (Loss)
The notes to the financial statements are an integral part of this statement.

VSU Auxiliary Services Real Estate Foundation

Elimination/ Consolidation
Entries

Total

$

--$

--

--

--

6,525,396

--$ -- -- -- --

786,239,798 9,424,710
324,625,565 897,507,134 239,050,413

-- -- -- 95,811 -- 997,894

-- -- -- (10,416,184) -- --

2,051,622 --
145,102,432 186,311,575
11,709,468 30,670,655

7,619,101

(10,416,184)

2,632,693,372

-- -- -- -- -- -- 1,057,665 --

--

317,351,162

--

35,930,565

--

146,007,768

--

21,216,095

--

35,598,112

--

8,698,909

--

1,887,866,213

--

69,526,145

1,057,665

--

2,522,194,969

$

6,561,436 $ (10,416,184) $ 110,498,403

62 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION COMPONENT UNITS FOR FISCAL YEAR ENDED JUNE 30, 2018

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues
Income (Loss) Before Other Revenues, Expenses, Gains, or Losses
Capital Grants and Gifts Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses
Change in Net Position Net Position, Beginning of Year, Restated
Net Position, End of Year
The notes to the financial statements are an integral part of this statement.

VSU Auxiliary Services Real Estate Foundation

Elimination/ Consolidation
Entries

Total

$

--$

--$

29,932,138

-- -- -- 117,980 (6,136,629) --

--

3,083,581

--

3,227,028

--

27,553,141

--

297,873,509

--

(129,583,788)

--

(7,174,161)

(6,018,649)

--

224,911,448

542,787

(10,416,184)

335,409,851

--

--

10,107,077

--

--

104,721,950

--

--

(7,885,377)

--

--

--

106,943,650

542,787 6,881,231

(10,416,184) (2,505,557)

442,353,501 4,195,390,757

$

7,424,018 $ (12,921,741) $ 4,637,744,258

2018 Annual Financial Report 63

64 University System of Georgia

Notes to the Financial Statements

UNIVERSITY SYSTEM OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018
Note 1 Summary of Significant Accounting Policies
Nature of Operations The University System of Georgia (USG) serves the state and national communities by providing its students with academic instruction that advances fundamental knowledge and by disseminating knowledge to the people of Georgia, the nation, and throughout the world.
Reporting Entity The USG, an organizational unit of the State of Georgia primary government (State), is comprised of twenty-six (26) State-supported member institutions of higher education in Georgia, the University System Office (USO), the Georgia Archives and the Georgia Public Library System. The USO also is the custodian of the Board of Regents Retiree Health Benefit Fund and the Deferred Compensation Plan. Augusta University, an organizational unit of the USG, is the custodian of the Early Retirement Plan.
The Board of Regents of the University System of Georgia (Board) has constitutional authority to govern, control and manage the USG. The Board was created in 1931 as a part of a reorganization of Georgia's state government. With this act, public higher education in Georgia was unified for the first time under a single governing and management authority. The governor appoints members to the Board, who each serve seven years; regents may be reappointed to subsequent terms by a sitting governor. Regents donate their time and expertise to serve the State through their governance of the USG - the positions are voluntary ones without financial remuneration. Today, the Board is composed of 19 members, five of whom are appointed from the state-at-large, and one from each of the 14 congressional districts. The Board elects a chancellor who serves as its chief executive officer and the chief administrative officer of the USG.
The USG does not have the right to sue/be sued without recourse to the State. The USG's property is the property of the State and subject to all the limitations and restrictions imposed upon other property of the State by the Constitution and laws of the State. In addition, the USG is not legally separate from the State. Accordingly, the USG is included within the State's basic financial statements as part of the primary government as defined in Section 2100 of the Governmental Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial Reporting Standards.
The accompanying basic financial statements are intended to supplement the State's Comprehensive Annual Financial Report (CAFR) by presenting the financial position and changes in financial position and cash flows of only that portion of the business-type activities of the State that is attributable to the transactions of the USG. In addition, certain discretely presented component units of the State, as discussed below, have been included since they have been determined to be essential to the fair presentation to these departmental financial statements. These financial statements do not purport to, and do not, present fairly the financial position of the State as of June 30, 2018, the changes in its financial position or its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
The accompanying basic financial statements should be read in conjunction with the State's CAFR. The most recent State of Georgia CAFR can be obtained through the State Accounting Office, 200 Piedmont Avenue, Suite 1604 (West Tower), Atlanta, Georgia 30334 or online at sao.georgia.gov/comprehensive-annual-financial-reports.
Discretely Presented Component Units The below organizations are legally separate, tax-exempt component units of the State. Although the State (primary government) is not fiscally accountable for these entities, it has been determined that the nature and significance of the relationship between the primary government and the below organizations is such that exclusion from these departmental financial statements would render them misleading. The below organizations met the requirements for discrete presentation as defined by GASB Codification Sections 2100 and 2600. Each of the below organization's fiscal year ends on June 30 each year, except for VSU Auxiliary Services Real Estate Foundation, Inc. VSU Auxiliary Services Real Estate Foundation, Inc.'s fiscal year ends December 31 each year. Separately issued financial statements are available from the following addresses.
66 University System of Georgia

Augusta University Foundation, Inc. and Subsidiaries, 1120 15th Street, FI-1049, Augusta, GA, 30912
Augusta University Research Institute, Inc., 1120 15th Street, AA 311, Richmond, Augusta, GA, 30912
AU Health Systems, Inc. d/b/a AU Health System, 1120 15th Street. FY139, Augusta, GA 30912
Georgia Advanced Technology Ventures, Inc. and Subsidiaries, 221 Uncle Heinie Way, Lyman Hall Suite 325, Atlanta, GA, 30332-0257 or found at gatv.gatech.edu/financial-statements
Georgia College & State University Foundation, Inc. and Subsidiaries, 231 W Hancock St., CBX 96, Milledgeville, GA, 30161
Georgia Gwinnett College Foundation, Inc., 1000 University Center Lane, Lawrenceville, GA, 30043 Georgia Health Sciences Foundation, Inc., 1120 15th Street, FI-1047, Augusta, GA 30912
Georgia Southern University Housing Foundation, Inc. and Subsidiaries, P.O. Box 8020, Statesboro, GA 30460
Georgia State University Athletic Association, Inc., 125 Decatur Street, Atlanta, Georgia, 30303
Georgia State University Foundation, Inc., Attn: Dale Palmer, GSU Foundation, 533 One Park Place, Atlanta, GA 30301-2668
Georgia State University Research Foundation, Inc., 100 Auburn Avenue, Suite 315, Fulton, Atlanta, GA, 30303
Georgia Tech Athletic Association, 150 Bobby Dodd Way, NW, Atlanta, GA 30332-0455 or found at finservices.gatech.edu/affiliated-organization-financial-statements
Georgia Tech Facilities, Inc., 221 Uncle Heinie Way, NW, Lyman Hall Suite 325, Atlanta GA 30332-0257 or found at gtfi.gatech.edu/financial-statements
Georgia Tech Foundation, Inc., 760 Spring Street, NW, Suite 400, Atlanta, GA 30308 or found at gtf.gatech.edu/ financial-statements
Georgia Tech Research Corporation, 505 10th Street, Atlanta, GA 30332-0415 or found at gtrc.gatech.edu/ gtrc/documents/financial-information
Kennesaw State University Foundation, Inc., 3391 Town Point Drive, Suite 4530/Mail drop 9101, Kennesaw, GA 30144
Medical College of Georgia Foundation, Inc., 545 15th Street, Augusta, GA 30901
Middle Georgia State University Real Estate Foundation, Inc. and Subsidiaries, 100 University Pkwy, Macon, GA 31206
University of Georgia Athletic Association, Inc., 456 E. Broad Street, Athens, GA 30602
The University of Georgia Foundation, 394 S. Milledge Ave, Suite 100, Athens, GA 30602
University of Georgia Research Foundation, Inc. and Subsidiaries, 324 Business Services Building, 456 E. Broad Street, Athens, GA 30602
University of North Georgia Real Estate Foundation, Inc. and Subsidiaries, 110 South Chestatee Street, Suite 320, Dahlonega, GA 30597
University System of Georgia Foundation, Inc. and Affiliates, 270 Washington Street, SW Suite 7007, Atlanta, Ga 30334
UWG Real Estate Foundation, Inc., 1601 Maple St, Carrollton, GA 30118
VSU Auxiliary Services Real Estate Foundation, Inc., 1500 N. Patterson St, Valdosta, GA 31698
See Component Unit Note for additional information related to discretely presented component units.
2018 Annual Financial Report 67

Basis of Accounting and Financial Statement Presentation The financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) as prescribed by the GASB and are presented as required by these standards to provide a comprehensive, entity-wide perspective of the USG's assets, deferred outflows, liabilities, deferred inflows, net position, revenues, expenses, changes in net position and cash flows.
The USG's business-type activities and fiduciary fund financial statements have been presented using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis, revenues are recognized when earned, and expenses are recorded when an obligation has been incurred. Grants and similar items are recognized as revenues in the fiscal year in which eligibility requirements imposed by the provider have been met. All significant intra-fund transactions have been eliminated.
The USG reports the following Fiduciary Funds:
Pension and Other Post Employment Benefit Trust Funds - Accounts for the activities of the Early Retirement Plan, the Board of Regents Retiree Health Benefit Fund and the Deferred Compensation Fund.
New Accounting Pronouncements For fiscal year 2018, the USG adopted GASB Statement No. 86, Certain Debt Extinguishment Issues. This Statement addresses accounting and financial reporting issues regarding in-substance defeasance of debt. The adoption of this Statement does not have a significant impact on the USG's financial statements.
For fiscal year 2018, the USG adopted GASB Statement No. 85, Omnibus 2017. This Statement addresses practice issues identified during implementation and application of certain other GASB Statements. This Statement addresses a variety of topics including issues related to blending component units, goodwill, fair value measurement and application, and post employment benefits. The adoption of this Statement does not have a significant impact on the USG's financial statements.
For fiscal year 2018, the USG adopted GASB Statement No. 81, Irrevocable Split-Interest Agreements. The objective of this Statement is to improve accounting and financial reporting for irrevocable split-interest agreements by providing recognition and measurement guidance for situations in which a government is a beneficiary of the agreement. The adoption of this Statement does not have a significant impact on the USG's financial statements.
For fiscal year 2018, the USG adopted GASB Statement No. 75, Accounting and Financial Reporting for Post Employment Benefit Plans Other Than Pension Plans. This Statement replaces GASB Statements No. 45, Accounting and Financial Reporting for Post Employment Benefit Plans Other Than Pension Plans, as amended, and No. 57, OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans. The objective of this Statement is to improve the usefulness of information about post-employment benefits other than pensions. The adoption of this Statement resulted in the accrual of the net other post-employment benefit (OPEB) liability for the Board of Regents Retiree Health Benefit Plan, changes to the related OPEB note disclosures, additional OPEB required supplemental information, and the restatement of the July 1, 2017 net position balance for business-type activities.
Cash and Cash Equivalents Cash and cash equivalents consist of petty cash, demand deposits and time deposits in authorized financial institutions, and cash management pools that have the general characteristics of demand deposit accounts. This includes the State Investment Pool (Georgia Fund 1) and the Board of Regents Short-Term Investment Pool. Cash and Cash Equivalents that cannot be used to pay current liabilities are classified as non-current assets in the Statement of Net Position. Cash and Cash Equivalents restricted as to use by a third party are reported as externally restricted.
Short-Term Investments Short-Term Investments consist of investments of 90 days - 13 months. These include certificates of deposits or other time-restricted investments with original maturities of six months or more when purchased. Funds are not readily available and there is a penalty for early withdrawal. Short-term investments that cannot be used to pay current liabilities are classified as non-current assets in the Statement of Net Position. Short-term investments restricted as to use by a third party are reported as externally restricted.
Investments Investments include financial instruments with terms in excess of 13 months, certain other securities for the production of revenue, land, and other real estate held as investments by endowments. The USG accounts for its investments at
68 University System of Georgia

fair value. Changes in the fair value of investments are reported as a component of investment income in the Statement of Revenues, Expenses, and Changes in Net Position. The Board of Regents Legal Fund, the Board of Regents Balanced Income Fund, the Board of Regents Total Return Fund, the Board of Regents Diversified Fund, and the Board of Regents Diversified Fund for Foundations are included as investments. Investments that cannot be used to pay current liabilities are classified as non-current assets in the Statement of Net Position. Investments restricted as to use by a third party are reported as externally restricted.
Accounts Receivable Accounts receivable consists of tuition and fees charged to students and auxiliary enterprise services provided to students, faculty and staff, the majority of whom reside in the State of Georgia. Accounts receivable also includes amounts due from federal, state and local governments, or private sources, in connection with reimbursement of allowable expenditures made pursuant to the USG's grants and contracts. Accounts receivable are recorded net of estimated uncollectible amounts.
Inventories Consumable supplies are carried at the lower of cost or market on the first-in, first-out ("FIFO") basis. Resale inventories are valued at cost using the average-cost basis.
Prepaid Items Payments made to vendors and state and local government organizations for services that will benefit periods beyond June 30, 2018 are recorded as prepaid items.
Capital Assets Capital assets are recorded at cost at the date of acquisition, or fair market value at the date of donation in the case of gifts. For equipment, the USG's capitalization policy includes all items with a unit cost of $5,000 or more, and an estimated useful life of greater than one year. Renovations to buildings, infrastructure, and land improvements that exceed $100,000 and/or significantly increase the value or extend the useful life of the structure are capitalized. Routine repairs and maintenance are charged to operating expense in the year in which the expense was incurred.
Depreciation, which also includes amortization of intangible assets such as water, timber, and mineral rights, easements, patents, trademarks, and copyrights, as well as software, is computed using the straight-line method over the estimated useful lives of the assets, generally 40 to 60 years for buildings, 20 to 25 years for infrastructure and land improvements, 10 years for library books, and 3 to 20 years for equipment. Residual values will generally be 10% of historical costs for infrastructure, buildings and building improvements, and facilities and other improvements.
To fully understand plant additions in the USG, it is necessary to look at the activities of the Georgia State Financing and Investment Commission (GSFIC) - an organization that is external to the USG. GSFIC issues bonds for and on behalf of the State of Georgia, pursuant to powers granted to it in the Constitution of the State of Georgia and the Act creating the GSFIC. The bonds so issued constitute direct and general obligations of the State of Georgia, to the payment of which the full faith, credit and taxing power of the State are pledged.
For projects managed by GSFIC, GSFIC retains construction in progress in its accounting records throughout the construction period and transfers the entire project to the institutional unit of the University System when complete. For projects managed by institutions of the USG, the institutions retain construction in progress on their books and are reimbursed by GSFIC.
Capital Liability Reserve Fund The Capital Liability Reserve Fund (Fund) was established by the Board of Regents to protect the fiscal integrity of the USG to maintain the strongest possible credit ratings associated with Public Private Venture (PPV) projects and to ensure that the Board of Regents can effectively support its long-term capital lease obligations. All USG institutions participating in the PPV program finance the Fund. The Fund serves as a pooled reserve that is managed by the Board of Regents. The Fund shall only be used to address significant shortfalls and only insofar as a requesting USG institution is unable to make the required PPV capital lease payment to the designated affiliated organization. The Fund will continue as long as the Board of Regents has rental obligations under the PPV program and at the conclusion of the program, funds will be returned to each institution. See Note 10 for additional information.
Deferred Outflows of Resources Deferred outflows of resources consist of the consumption of net position that is applicable to a future reporting period.
2018 Annual Financial Report 69

Deposits Deposits represent good faith deposits from students to reserve housing assignments, meal plans or other auxiliary services.
Advances Advances include amounts received for tuition and fees and certain auxiliary activities prior to the end of the fiscal year but related to the subsequent accounting period. Advances also include amounts received from grant and contract sponsors that have not yet been earned.
Deposits Held for Other Organizations Deposits held for other organizations result primarily from the USG acting as an agent or fiduciary for another entity. Deposits held for others include scholarships, fellowships, study abroad deposits and other funds held for various governments, companies, clubs or individuals.
Claims and Judgments An estimated loss from claims and judgments is recognized when information available prior to issuance of the financial statements indicates it is probable that an asset has been impaired or a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated.
Pollution Remediation Obligations Pollution remediation obligations are recorded when the USG knows that a site is polluted and one or more obligating events have occurred. The amount recorded is an estimate of the current value of potential outlays for cleanup, calculated using the "expected cash flows" measurement technique.
Compensated Absences Employee vacation pay is accrued at the end of the fiscal year for financial statement purposes. The liability and expense incurred are recorded at the end of the fiscal year as compensated absences in the Statement of Net Position, and as a component of compensation and benefit expense in the Statements of Revenues, Expenses, and Changes in Net Position.
Non-current Liabilities Non-current liabilities include: (1) liabilities that will not be paid within the next fiscal year; (2) capital lease obligations with contractual maturities greater than one year; and (3) other liabilities that, although payable within one year, are to be paid from funds that are classified as non-current assets.
Deferred Inflows of Resources Deferred inflows of resources consist of the acquisition of net position that is applicable to a future reporting period.
Other Post-Employment Benefit (OPEB) For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by the Board of Regents Retiree Health Benefit Plan and the State Employees' Assurance Department Retired and Vested Inactive Members Trust Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Pensions and Net Pension Liability The net pension liability represents the USG's proportionate share of the difference between the total pension liability as a result of the exchange for employee services for compensation and the fiduciary net position or the fair value of the plan assets as of a given measurement date.
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plans' fiduciary net position, additions to/ deductions from the plans fiduciary net position have been determined on the same basis as they are reported by Teachers Retirement System of Georgia, Employees' Retirement System of Georgia, and Augusta University Early Retirement Pension Plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
70 University System of Georgia

Service Concession Arrangements Service concession agreements are arrangements between a government (transferor, one of our institutions) and a third party (operator) in which all of the following criteria are met:
a) The institution conveys to the operator the right and obligation to provide public services through the use and operation of a capital asset in exchange for significant consideration. Significant consideration could be in the form of up front payments, installment payments, a new facility or improvements to existing facility.
b) The operator collects and is compensated by fees from third parties. c) The institution has the ability to modify or approve what services the operator is required to provide, to whom
services are provided, and prices or rates that can be charged for those services. d) The institution is entitled to significant residual interest in the service utility of the asset at the end of the
arrangement.
Net Position The USG's net position is classified as follows:
Net Investment in capital assets represents the USG's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. The term "debt obligations" as used in this definition does not include debt of the GSFIC as discussed previously in Note 1 - Capital Assets section.
Restricted - nonexpendable net position includes endowments and similar type funds in which donors or other outside sources have stipulated, as a condition of the gift instrument, that the principal is to be maintained inviolate and in perpetuity, and invested for the purpose of producing present and future income, which may either be expended or added to principal. For institution-controlled, donor-restricted endowments, the by-laws of the Board of Regents of the University System of Georgia permits each individual institution to use prudent judgment in the spending of current realized and unrealized endowment appreciation. Donor-restricted endowment appreciation is periodically transferred to restricted - expendable accounts for expenditure as specified by the purpose of the endowment. Each institution maintains pertinent information related to each endowment fund including donor; amount and date of donation; restrictions by the source of limitations; limitations on investments, etc.
Restricted - expendable net position includes resources in which the USG is legally or contractually obligated to spend resources in accordance with restrictions by external third parties.
Unrestricted net position represents resources derived from student tuition and fees, state appropriations, and sales and services of educational departments and auxiliary enterprises. These resources are used for transactions relating to the educational and general operations of the USG, and may be used at the discretion of the governing board or management to meet current expenses for those purposes, except for unexpended state appropriations (surplus). Unexpended state appropriations must be refunded to the Office of the State Treasurer. These resources also include auxiliary enterprises, which are substantially self-supporting activities that provide services for students, faculty and staff.
When an expense is incurred that can be paid using either restricted or unrestricted resources, the USG's policy is to first apply the expense towards unrestricted resources, and then towards restricted resources.
Income Taxes The USG, as a political subdivision of the State of Georgia, is excluded from Federal income taxes under Section 115(1) of the Internal Revenue Code, as amended.
Classification of Revenues and Expenses The Statement of Revenues, Expenses and Changes in Net Position classifies fiscal year activity as operating and nonoperating according to the following criteria:
Operating revenue includes activities that have the characteristics of exchange transactions, such as (1) student tuition and fees, net of scholarship allowances, (2) certain federal, state and local grants and contracts, and (3) sales and services.
Nonoperating revenue includes activities that have the characteristics of non-exchange transactions, such as gifts and contributions, and other revenue sources that are defined as non-operating revenue by GASB
2018 Annual Financial Report 71

Statements No. 9, Reporting Cash Flows of Proprietary and Non-expendable Trust Funds and Governmental Entities That Use Proprietary Fund Accounting, and No. 34, Basic Financial Statements--and Management's Discussion and Analysis--for State and Local Governments, such as state appropriations and investment income.
Operating expense includes activities that have the characteristics of exchange transactions.
Nonoperating expense includes activities that have the characteristics of non-exchange transactions, such as capital financing costs and costs related to investment activity.
Scholarship Allowances Scholarship allowances are the difference between the stated charge for goods and services provided by the USG, and the amount that is paid by students and/or third parties making payments on the students' behalf. Certain governmental grants, such as Pell grants, and other Federal, state or nongovernmental programs are recorded as either operating or non-operating revenues in the USG's financial statements. To the extent that revenues from such programs are used to satisfy tuition and fees and other student charges, the USG has recorded contra revenue for scholarship allowances.
Restatement of Prior Year Net Position The USG made the following restatements:

Net position, beginning of year, as originally reported

Business-type Activities

Discretely Presented Component Units

$ 3,092,594,112 $ 4,230,860,131

Changes in financial reporting entity Changes in accounting principles
Adoption of GASB Statement No. 75 Removal of capital assets also reported by University of Georgia Athletic Association, Inc. Correction of prior year errors
Lease purchase obligations Allowance for doubtful accounts receivable Accrued interest

(1,485,461,759) (226,242,587)
6,659,425 (2,925,432)

(2,680,943) (33,171,000)
382,569

Net position, beginning of year, restated

$ 1,384,623,759 $ 4,195,390,757

Changes in Financial Reporting Entity The determination was made that Georgia State University Athletic Association, Inc. met the requirements for inclusion as a discretely presented component unit. The effect of this determination was an increase to discretely presented component unit beginning net position in the amount of $1,460,669.
The determination was made that Kennesaw State University Athletic Association, Inc. no longer met requirements for inclusion as a discretely presented component unit. The effect of this determination was a decrease to discretely presented component unit beginning net position in the amount of $3,699,504.
AU Health System, a discretely presented component unit, completed a series of corporate and governance changes during the fiscal year. As part of this reorganization, AU Medical Associates, Inc. became a blended component unit of AU Health System and MCGH/PPG Repoductive Lab, LLC was merged into AU Health Systems. The Health System has restated its financial statements for this change in reporting entity. The result is a decrease to discretely presented component unit beginning net position in the amount of $442,108. See Note 20 - Component Units for additional information.

72 University System of Georgia

Changes in accounting principles The USG made prior period adjustments due to the adoption of GASB Statement No. 75, which required the restatement of the June 30, 2017, net position. The result is a decrease in Net Position at July 1, 2017 of $1,485,461,759 of which $1,586,387,908 is represented in net OPEB liability, $1,342,206 is represented in other assets (net OPEB asset) and $99,583,943 is represented in deferred outflow. This change is in accordance with generally accepted accounting principles.
AU Health Systems, a discretely presented component unit, made prior period adjustments due to the adoption of GASB Statement No. 75, which required the restatement of the June 30, 2017, net position. The result is a decrease in Net Position at July 1, 2017 of $33,171,000. This change is in accordance with generally accepted accounting principles.
Removal of capital assets also reported by University of Georgia Athletic Association, Inc. The University of Georgia Athletic Association, Inc. (the Athletic Association) has an agreement with the USG whereby expenses for additions and improvements to University of Georgia owned buildings, stadium, and athletic fields used by the Athletic Association become the property of the University of Georgia upon installation or acquisition. The Athletic Association leases these athletic facilities from the USG for $1 million per year under the current operating lease agreement, which expires June 30, 2022. The Athletic Association has capitalized expenses for additions and improvements to the buildings, stadium, and athletic fields owned by the University of Georgia and used by the Athletic Association. For fiscal year 2018, the USG made a prior period adjustment to remove capital assets owned by the University of Georgia that are also reported by the University of Georgia Athletic Association, Inc. for presentation purposes.
Special Items Significant transactions or other events within the control of management that are either unusual in nature or infrequent in occurrence are considered special items.
Georgia Institute of Technology changed their capital asset capitalization threshold, which resulted in a net reduction in capital assets of $21,437,060.
On April 30, 2018, the Georgia Southern University Housing Foundation, Inc. defeased the debt associated with the ASU Student Recreation Center, LLC Series 2015 bond. The related capital leases between the Georgia Southern Housing Foundation, Inc. and the University were terminated resulting in a special item of $1,425,076 reported on the Statement of Revenues, Expenses and Changes in Net Position.
On January 11, 2018, the Board of Regents accepted a gift of approximately 5.669 acres of real property, located at 445 Capitol Ave, Atlanta, GA 30315, from the Georgia Building Authority for the use and benefit of Georgia State University. The land and improvements, formerly known as the Department of Juvenile Justice Parking Lot, are valued at $2,129,900 and $13,760 respectively.
Middle Georgia State University transferred property to Central Georgia Technical College in fiscal year 2018 consisting of land, buildings, and equipment with a net book value of $12,533,158.
The remaining special item of $116,656 related to the transfer of equipment outside of the State's reporting entity.
2018 Annual Financial Report 73

Note 2 Deposits and Investments
Cash and cash equivalents and investments as of June 30, 2018 are classified in the accompanying statement of net position and statement of fiduciary net position as follows:

Statement of Net Position Current Cash and Cash Equivalents Cash and Cash Equivalents (Externally Restricted) Short-term Investments Short-term Investments (Externally Restricted) Noncurrent Investments Non-current Cash (Externally Restricted) Short-term Investments (Externally Restricted) Investments (Externally Restricted)
Statement of Fiduciary Net Position Cash and Cash Equivalents Investments

$

1,345,123,209

213,067,505

66,457,356

537,765

197,905,258 11,970,725 38,726
243,981,033

26,135,941

163,058,622

$

2,268,276,140

Cash on hand, deposits and investments as of June 30, 2018 consist of the following:

Cash on Hand Deposits with Financial Institutions Investments Pooled Assets Held on Behalf of Component Units

$

2,562,705

709,126,349

1,671,691,317

(115,104,231)

$

2,268,276,140

A. Deposits with Financial Institutions Deposits include certificates of deposits and demand deposit accounts, including certain interest bearing demand deposit accounts. The custodial credit risk for deposits is the risk that in the event of a bank failure, the USG's deposits may not be recovered. Funds belonging to the State of Georgia (and thus the USG) 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 of the following securities as enumerated in the Official Code of Georgia Annotated (O.C.G.A.) 50-17-59:
1. Bonds, bills, notes, certificates of indebtedness, or other direct obligations of the United States or of the State of Georgia.
2. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia.
3. Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose.
4. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia.

74 University System 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. Letters of credit issued by a Federal Home Loan Bank.
7. Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation.
The USG participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered Deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased to amount of up to 125% if economic or financial conditions warrants. The program lists the type of eligible collateral. The OST approves authorized custodians.
In accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository's collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized.
At June 30, 2018, the bank balances of the USG's deposits totaled $760,923,047. This balance includes deposits in Fiduciary funds as these balances are not separable from the holdings of the USG. Of these deposits, $20,108,387 were exposed to custodial credit risk as follows:

Uninsured and uncollaterized

$

Uninsured and collateralized with securities held by the pledging financial institution

Uninsured and collateralized with securities held by the pledging financial institution's trust departments or agents, but not in the Institution's name

350,449 --
19,757,938

Total deposits exposed to custodial credit risk

$

20,108,387

Foreign Currency Risk Foreign currency risk is the risk that changes in exchange rates will adversely affect the fair value of an investment or a deposit. The USG has a formal policy for managing exposure to foreign currency credit risk by requiring a maximum balance in a single foreign account of $100,000 U.S. currency. The USG's exposure to foreign currency risk derives from deposits in foreign banks for operations of studies abroad programs. The deposits are uninsured and uncollateralized in the amount of $143,436 as follows:

Program UGA - Oxford Program UGA Cortona Art Program

Institution Barclay's Banca CR Firenze

Currency British Pound European Euro

U.S. Value

$

77,565

65,871

$

143,436

B. Investments The USG maintains an investment policy which fosters sound and prudent judgment in the management of assets to ensure safety of capital consistent with the fiduciary responsibility it has to the citizens of Georgia and which conforms to Board of Regents investment policy. All investments are consistent with donor intent, Board of Regents policy and applicable federal and state laws.

2018 Annual Financial Report 75

GASB Statement No. 72, Fair Value Measurements and Application, which requires fair value measurement be classified and disclosed in one of the following three categories ("Fair Value Hierarchy"):
Level 1 - Quoted prices are available in active markets for identical investments as of the reporting date.
Level 2 - Pricing inputs are observable for the investments, either directly or indirectly, as of the reporting date, but are not the same as those used in Level 1; inputs include comparable market transactions, pricing of similar instruments, values reported by the administrator, and pricing expectations based on internal modeling. Fair value is determined through the use of models or other valuation methodologies.
Level 3 - Pricing inputs are unobservable for the investment and include situations where there is little, if any, market activity for the investments.
The following table summarizes the valuation of the USG's investments measured at fair value on a recurring basis as of June 30, 2018.

Fair Value

Level 1

Fair Value Hierarchy Level 2

Level 3

Investment type: Debt Securities U.S. Treasuries U.S. Agencies Explicitly Guaranteed Implicitly Guaranteed Corporate Debt Guaranteed Investment Contracts Money Market Mutual Funds Municipal Obligations Mutual Bond Funds Other Investments Equity Mutual Funds - Domestic Equity Mutual Funds - International Equity Securities - Domestic Equity Securities - International Real Estate Held for Investment Purposes Real Estate Investment Trusts Other
Investment Pools Office of the State Treasurer Georgia Fund 1
Total Investments

$ 64,458,715 $ 64,458,715 $

--$

183,678,003 346,924,734 181,302,954
1,061,901 13,163,309
1,004,000 140,280,260

234,334 52,074,903
11,383 --
13,163,309 1,004,000
140,280,260

183,443,669 294,849,831 181,291,571
-- -- -- --

130,447,101 57,654,114
144,553,511 351,442
6,312,978 1,077,732
646,316

130,447,101 57,654,114
144,553,505 117,147 --
1,077,732 646,316

-- -- -- 234,295 -- -- --

1,272,917,070 $ 605,722,819 $ 659,819,366 $

--
-- -- -- 1,061,901 -- -- --
-- -- 6 -- 6,312,978 -- --
7,374,885

398,774,247 $ 1,671,691,317

Investments classified in Level 1 are valued using prices quoted in active markets for those securities.
Investments classified in Level 2 are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities' relationship to benchmark quoted prices.
Investments classified in Level 3 includes real estate funds that invest primarily in U.S. commercial real estate and guaranteed investment contracts. The fair values of real estate investments in this category have been estimated using the net asset value of the USG's ownership interest in partners' capital. Real estate investments are less liquid and,
76 University System of Georgia

generally, cannot be redeemed with the funds through normal redemption procedures. Distributions from real estate investment funds will be received as the underlying investments of a fund are liquidated. Guaranteed investment contracts are valued by discounting the related cash flows based on current yields of similar instruments with comparable durations considering the credit worthiness of the issuer.
The USG holds positions in the Georgia Fund 1 investment pool managed by the Georgia Office of the State Treasurer. The unit of account is each share held, and the value of the position would be the fair value of the pool's share price multiplied by the number of shares held. The USG does not "look through" the pool to report a pro rata share of the pool's investments, receivables, and payables.
Board of Regents Pooled Investment Program The USG serves as fiscal agent for various units of the University System of Georgia and affiliated organizations. The USG pools the monies of these organizations with the USG's monies for investment purposes. The investment pool is not registered with the SEC as an investment company. The fair value of the investments is determined daily. The pool does not issue shares. Each participant is allocated a pro rata share of each pooled investment fund balance at fair value along with a pro rata share of the pooled fund's investment returns.
The USG maintains investment policy guidelines for each pooled investment fund that is offered to qualified University System participants. These policies are intended to foster the sound and prudent responsibility each institution has to the citizens of Georgia and which conforms to the Board of Regents investment policy. All investments must be consistent with donor intent, Board of Regents policy, and applicable Federal and state laws. Units of the University System of Georgia and their affiliated organizations may participate in the pooled investment fund program. The overall character of the pooled fund portfolio should be one of above average quality, possessing at most an average degree of investment risk.
The Board of Regents' pooled investment fund options are described below.
1. Short-Term Fund The Short-Term Fund is available to both University System of Georgia institutions and their affiliated organizations. The Fund provides a current return and stability of principal while affording a means of overnight liquidity for projected cash needs. Investments are in securities allowed under O.C.G.A. 50-17-59 and 50-17-63. The average maturities of investments in this fund will typically range between daily and three years, and the fund will typically have an overall average duration of - 1 year. The overall character of the portfolio is of Agency quality, possessing a minimal degree of financial risk. The market value of the Short-Term Fund at June 30, 2018 was $553,297,754.
2. Legal Fund The Legal Fund is available to both University System of Georgia institutions and their affiliated organizations. The Fund provides an opportunity for greater return and modest principal growth to the extent possible with the securities allowed under O.C.G.A. 50-17-59 and 50-17-63. The average maturities of investments in this fund will typically range between three and five years, with a maximum of thirty years for any individual investment. The overall character of the portfolio is Agency quality, possessing a minimal degree of financial risk. The market value of the Legal Fund at June 30, 2018 was $11,418,702.
3. Balanced Income Fund The Balanced Income Fund is available to both University System of Georgia institutions and their affiliated organizations. The Fund is designed to be a vehicle to invest funds that are not subject to the state regulations concerning investing in equities. This pool is appropriate for investing longer term funds that require a more conservative investment strategy. Permitted investments in the fund are domestic US equities, domestic investment grade fixed income, and cash equivalents.
The equity allocation shall range between 20% and 40%, with a target of 30% of the total portfolio. The fixed income (bond) portion of the portfolio shall range between 60% and 80%, with a target of 70% of the total portfolio. Cash reserves and excess income are invested at all times in the highest quality par stable (A1, P1) institutional money market mutual funds, or other high quality short term instruments. The market value of the Balanced Income Fund at June 30, 2018 was $86,911,293.
2018 Annual Financial Report 77

4. Total Return Fund The Total Return Fund is available to both University System of Georgia institutions and their affiliated organizations. The Fund is another pool designed to be a vehicle to invest funds that are not subject to state regulations concerning investing in equities. This pool offers greater overall equity exposure and is appropriate for investing longer term funds such as endowments. Permitted investments in the fund are domestic US equities, domestic investment grade fixed income, and cash equivalents.
The equity allocation shall range between 60% and 80%, with a target of 70% of the total portfolio. The fixed income (bond) portion of the portfolio shall range between 20% and 40%, with a target of 30% of the total portfolio. Cash reserves and excess income are invested at all times in the highest quality par stable (A1, P1) institutional money market mutual funds, or other high quality short term instruments. The market value of the Total Return Fund at June 30, 2018 was $13,527,182.
5. Diversified Fund The Diversified Fund is available to both University System of Georgia institutions and their affiliated organizations. The Fund is designed to provide improved return characteristics with reduced volatility through greater diversification. This pool is appropriate for investing longer term funds such as endowments. Permitted investments in the fund may include domestic, international and emerging market equities, domestic fixed income and global fixed income.
The equity allocation shall range between 60% and 80% of the portfolio, with a target of 70% of the total portfolio. The fixed income (bond) portion of the portfolio shall range between 20% and 40%, with a target of 30% of the total portfolio. Cash reserves and excess income are invested at all times in the highest quality par stable (A1, P1) institutional money market mutual funds, or other high quality short term instruments. The market value of the Diversified Fund at June 30, 2018 was $200,632,132.
6. Diversified Fund for Foundations The Diversified Fund for Foundations is available only to University System of Georgia affiliated organizations. Like the Diversified Fund, the fund is designed to provide improved return characteristics with reduced volatility through greater diversification and is appropriate for investing longer term funds such as endowments. Investments in the fund may include domestic, international and emerging market equities, domestic and global investment grade and non-investment grade fixed income and liquid alternative investments.
The equity allocation shall range between 40% and 75% of the portfolio, with a target of 65% of the total portfolio. The fixed income (bond) portion of the portfolio shall range between 10% and 40% of the portfolio, with a target of 20% of the total portfolio. The alternatives portion of the portfolio shall range between 0% and 30% of the portfolio, with a target of 15% of the total portfolio. Cash reserves and invested income are invested at all times in the highest quality par stable (A1, P1) institutional money market funds, or other high quality short term instruments. The market value of the Diversified Fund for Foundations at June 30, 2018 was $60,992,842.
78 University System of Georgia

Condensed financial information for the Board of Regents Pooled Investment Program is as follows:

Statement of Net Position - June 30, 2018

Assets

Pooled Investments*

$

Receivables

$

Distribution of Net Position

USG Account Balance

$

Component Units and Affiliated Organizations

$

925,082,039 1,697,866
926,779,905
755,264,370 171,515,535 926,779,905

* Pooled investments in the short-term fund are reported as cash and cash equivalents on the statements of net position and statement of fiduciary net position, except for $12,330,950 and $3,133,983 for discretely presented component units reported as short-term investments and investments, respectively.

Statement of Changes in Net Position - June 30, 2018

Market Value Plus Accrued Income on July 1, 2017 $

Receipts

Disbursements

Administrative Expenses

Distributions

Investment Results

Income Collected and Accrued

Realized Gain/Loss on Assets Sold

Change in Unrealized Gain/Loss

Amortization (Short-Term Fund)

Market Value Plus Accrued Income on June 30, 2018

$

784,441,210 200,045,521
(876,828) (86,300,256)
17,498,020 15,396,537 (2,550,184)
(874,115) 926,779,905

Office of the State Treasurer Investment Pool The Georgia Fund 1 Investment Pool, managed by the Office of the State Treasurer, is not registered with the Securities and Exchange Commission as an investment company, and the State does not consider Georgia Fund 1 to be a 2a7like pool. This investment is valued at the pool's share price, $1 per share. The Georgia Fund 1 Investment Pool is an AAAf rated investment pool by Standard and Poor's. The Weighted Average Maturity of the Fund is 10 days.

2018 Annual Financial Report 79

Interest Rate Risk Interest rate risk is the risk that changes in interest rates of debt investments will adversely affect the fair value of an investment. The USG's policy for managing interest rate risk attempts to match investments with expected cash requirements.

Fair Value

Less Than 3 Months

4-12 Months

1-5 Years

6-10 Years

More Than 10 Years

Investment type: Debt Securities U.S. Treasuries U.S. Agencies Explicitly Guaranteed Implicitly Guaranteed Corporate Debt Guaranteed Investment Contracts Money Market Mutual Funds Municipal Obligations Mutual Bond Funds

$ 64,458,715 $ 35,150,288 $

652,752 $ 26,005,208 $ 2,650,467 $

--

183,678,003 346,924,734 181,302,954
1,061,901 13,163,309
1,004,000 140,280,260

127,793,443 209,769,946
9,688,079 --
13,163,309 5,000
41,110

11,833,506 24,880,743 59,350,858
-- -- -- --

14,762,405 65,207,308 112,065,644
-- -- 436,869 11,358,056

62,813 14,892,352
198,373 -- --
287,402 54,074,954

29,225,836 32,174,385
-- 1,061,901
-- 274,729 74,806,140

931,873,876 $ 395,611,175 $ 96,717,859 $ 229,835,490 $ 72,166,361 $ 137,542,991

Other Investments Equity Mutual Funds - Domestic Equity Mutual Funds - International Equity Securities - Domestic Equity Securities - International Real Estate Held for Investment Purposes Real Estate Investment Trusts Other

130,447,101 57,654,114
144,553,511 351,442
6,312,978 1,077,732
646,316

Investment Pools Office of the State Treasurer Georgia Fund 1

398,774,247

Total Investments

$ 1,671,691,317

Custodial Credit Risk Custodial credit risk for investments is the risk that, in the event of a failure of the counterparty to a transaction, the USG will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. The USG's policy for managing custodial credit risk is:

1. The USG has appointed a federally regulated banking institution as custodian. The custodian performs its duties to the standards of professional custodian and is liable to the USG for claims, losses, liabilities and expenses arising from its failure to exercise ordinary care, its willful misconduct, or its failure to otherwise act in accordance with the contract.

2. All securities transactions are to be settled on a delivery vs. payment basis through an approved depository institution such as the Depository Trust Company or the Federal Reserve.

3. Repurchase agreements are to be collateralized by United States Treasury securities at 102% of the market value of the investment at all times.

At June 30, 2018, $17,744,096 was uninsured and held by the investment's counterparty's trust department or agent, but not in the USG's name. Of this balance, $5,861,950 is related to the Deferred Compensation Fiduciary Fund.

80 University System of Georgia

Credit Quality Risk Credit quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The USG's policy for managing credit quality risk is contained in the investment policy guidelines for the various pooled investment funds, colleges, universities, and foundations:

1. In the Short-Term Fund and Legal Fund, all debt issues must be eligible investments under O.C.G.A 50-17-59 and 50-17-63. Other investment portfolios of debt securities funds also must meet the eligible investment criteria under the same code section.

2. In the Balanced Income Fund, Total Return Fund, and Diversified Fund, total fixed income portfolios should have an average credit quality rating of at least A. Overnight investments shall be limited to high quality institutional money market mutual funds rated A1, P1 or other high quality short-term debt instruments rated at least AA+.

3. In the Diversified Fund for Foundations, fixed income investments include investment grade and high yield domestic bonds, dollar-and non-dollar denominated global bonds, and emerging market bonds. Overnight investments shall be limited to high quality institutional money market mutual funds rated A1, P1 or other high quality short-term debt instruments rated at least AA+.

The investments subject to credit quality risk are reflected below:

Fair Value

AAA

AA

A

BBB

BB

Unrated

Related Debt Investments U. S. Agency Securities Corporate Debt Guaranteed Investment Contracts
Money Market Mutual Fund Municipal Obligation Mutual Bond Fund

$ 346,924,734 $ 345,519,348 $

181,302,954

--

1,061,901
13,163,309 1,004,000
140,280,260

--
427,672 320,804 222,252

1,405,386 $

--$

149,567

180,967,741

--
-- 352,030
34,796

--
-- 306,128
31,752

--$ 174,263
-- -- -- --

--$ --

-- 11,383

--
-- 25,038
8,363

1,061,901
12,735,637 --
139,983,097

$ 683,737,158 $ 346,490,076 $ 1,941,779 $ 181,305,621 $

174,263 $

33,401 $ 153,792,018

The Early Retirement Plan Fiduciary Fund has $13,079,318 in mutual bond funds and $3,045,577 in money market mutual funds (cash and cash equivalents on the statement of fiduciary net position). These investments are not rated.
The Deferred Compensation Fiduciary Fund has $1,130,861 in mutual bond funds, $1,061,901 in guaranteed investment contracts, and $4,731,089 in money market mutual funds (cash and cash equivalents on the statement of fiduciary net position). These investments are not rated.
The Retiree Health Benefit Fiduciary Fund has $42,983,473 in mutual bond funds and $779,780 in money market mutual funds. These investments are reported as pooled investments on the statement of fiduciary net position and are not rated.
Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The USG's policy requires diversification of investments to reduce overall portfolio risk while maintaining market rates of return.
At June 30, 2018, approximately 9.61%, 10.58%, 7.06% and 5.53% of business-type activity and fiduciary fund investments were investments in Government National Mortgage Assn. notes and pools, Federal National Mortgage Assoc. notes and pools, Federal Home Loan Mortgage Corp. notes and pools, and Vanguard Institutional Index Fund, respectively.
Specifically for the Deferred Compensation Fiduciary Fund, approximately 47.45%, 11.18%, 9.37%, 6.81% and 5.24% of the were invested in Federated Treasury Obligations Money Market Fund, TIAA traditional annuity, Fidelity Contrafund Fund, TIAA Real Estate Fund, Fidelity Strategic Income Fund, respectively.
2018 Annual Financial Report 81

See Note 14 - Retirement Plans for concentration of credit risk for the Early Retirement Plan. See Note 17 - PostEmployment Benefits Other Than Pension Benefits for concentration of credit risk for the Retiree Health Benefit Fund.

Note 3 Accounts Receivable

Accounts receivable consisted of the following at June 30, 2018:

Business Type Activities

Student Tuition and Fees Auxiliary Enterprises and Other Operating Activities Federal Financial Assistance Georgia Student Finance Commission Georgia State Financing and Investment Commission Due from Affiliated Organizations Due from Component Units Other
Less: Allowance for Doubtful Accounts
Net Accounts Receivable

$

70,685,795

82,496,446

70,473,727

18,241,520

16,815,253

16,242,849

219,507,624

127,375,328

621,838,542

44,220,046

$

577,618,496

Note 4 Inventories
Inventories consisted of the following at June 30, 2018: Consumable Supplies Merchandise for Resale

$

4,907,529

18,083,576

Total

$

22,991,105

Note 5 Notes and Loans Receivable
The Federal Perkins Loan Program (the Program) comprises substantially all of the loans receivable at June 30, 2018. The Program provides for cancellation of a loan at rates of 10% to 30% per year up to a maximum of 100% if the participant complies with certain provisions. The Federal government reimburses the USG for amounts canceled under these provisions. As the USG determines that loans are uncollectible and not eligible for reimbursement by the federal government, the loans are written off and assigned to the U.S. Department of Education. The USG has provided an allowance for uncollectible loans, which, in management's opinion, is sufficient to absorb loans that will ultimately be written off. At June 30, 2018, the allowance for uncollectible loans was $2,253,035.

82 University System of Georgia

Note 6 Capital Assets

Changes in capital assets for the year ended June 30, 2018 are shown below:

Capital Assets, Not Being Depreciated: Land Capitalized Collections Construction Work-in-Progress Software Development-in-Progress
Total Capital Assets Not Being Depreciated

(Restated) Balance
July 1, 2017

Special Item and Other Transfers

Additions

Reductions

Balance June 30, 2018

$ 405,224,031 $ 51,448,435
222,618,967 9,521,221
688,812,654

848,800 $ -- -- --
848,800

3,788,920 $ 476,490
193,540,677 9,931,038
207,737,125

--$ -- 184,553,097 7,185,832 191,738,929

409,861,751 51,924,925
231,606,547 12,266,427
705,659,650

Capital Assets, Being Depreciated/Amortized: Infrastructure Building and Building Improvements Facilities and Other Improvements Equipment Library Collections Capitalized Collections Software
Total Capital Assets Being Depreciated/Amortized

383,828,510 11,790,982,565
290,051,644 1,656,806,410
922,512,619 6,781,019
66,188,814 15,117,151,581

-- (11,500,000)
13,760 (35,308)
-- -- -- (11,521,548)

22,638,578 436,908,474
16,562,326 143,520,825
33,092,657 --
26,589,605 679,312,465

50,346,507 12,040,353 16,984,252 77,365,745
6,633,399 -- --
163,370,256

356,120,581 12,204,350,686
289,643,478 1,722,926,182
948,971,877 6,781,019
92,778,419 15,621,572,242

Less: Accumulated Depreciation/Amortization Infrastructure Building and Building Improvements Facilities and Other Improvements Equipment Library Collections Capitalized Collections Software
Total Accumulated Depreciation/Amortization

152,175,861 3,809,201,986
128,050,979 1,206,149,624
747,594,824 1,510,830
24,614,656 6,069,298,760

-- (274,809)
-- (125,097)
-- -- -- (399,906)

12,584,409 309,311,829
11,349,417 120,460,238
32,437,372 207,586
5,866,874 492,217,725

25,252,409 8,487,454
10,068,917 61,846,115
6,633,698 -- --
112,288,593

139,507,861 4,109,751,552
129,331,479 1,264,638,650
773,398,498 1,718,416
30,481,530 6,448,827,986

Total Capital Assets, Being Depreciated/Amortized, Net

9,047,852,821

(11,121,642)

187,094,740

51,081,663

9,172,744,256

Capital Assets, net

$ 9,736,665,475 $ (10,272,842) $ 394,831,865 $ 242,820,592 $ 9,878,403,906

The July 1, 2017 equipment and equipment accumulated depreciation balances have been increased $32,150 related to prior year errors. The net effect of this restatement on the July 1, 2017 capital asset balance is $0.
The USG has received and transferred capital assets to various other entities within the State's reporting entity. The USG has reported these transactions as special items on the Statement of Revenues, Expenses and Changes in Net Position. See Note 1 - Special Items for additional information related to these transactions.
For projects managed by GSFIC, GSFIC retains construction-in-progress on its books throughout the construction period and transfers the entire project to the USG when complete. For projects managed by the USG, the USG retains construction-in-progress on its books and is reimbursed by GSFIC. For the year ended June 30, 2018, GSFIC transferred capital additions from GSFIC managed projects valued at $197,105,351 to the USG. In addition, at June 30, 2018, GSFIC had construction in progress of approximately $190,189,072 for incomplete GSFIC managed projects for the USG.
The University of Georgia Athletic Association, Inc. (the Athletic Association) has an agreement with the USG whereby expenses for additions and improvements to University of Georgia owned buildings, stadium, and athletic fields used by the Athletic Association become the property of the University of Georgia upon installation or acquisition. The Athletic Association leases these athletic facilities from the USG for $1 million per year under the current operating lease agreement, which expires June 30, 2022. The Athletic Association capitalizes expenses for additions and improvements to the buildings, stadium, and athletic fields owned by the University of Georgia and used by the Athletic Association. Therefore, these improvements to University of Georgia owned property are not reported as capital assets within the
2018 Annual Financial Report 83

University of Georgia's financial statements. The cost associated with these assets is $358,246,114 and associated accumulated depreciation is $103,869,307.
Note 7 Advances (Including Tuition and Fees)
Advances, including tuition and fees, consisted of the following at June 30, 2018:

Prepaid Tuition and Fees Research Other - Advances
Totals

Current Liabilities

$

132,923,991

55,060,151

50,376,617

$

238,360,759

Note 8 Long-Term Liabilities

Changes in long-term liability for the year ended June 30, 2018 was as follows:

(Restated) Balance
July 1, 2017

Additions

Reductions

Balance June 30, 2018

Current Portion

Lease Purchase Obligations

$ 3,036,259,633 $ 61,327,143 $ 183,956,082 $ 2,913,630,694 $ 103,011,206

Other Liabilities
Compensated Absences Net Pension Liability Notes and Loans Payable Claims and Judgments Net Other Post Employment Benefits Liability Pollution Remediation Total

220,236,041 3,147,202,798
9,504,296 2,690,393
4,202,453,802 1,228,430
7,583,315,760

173,130,137 1,929,853 -- --
40,537,906 476,325
216,074,221

164,345,709 283,698,927
1,409,028 884,481
23,265,836 618,915
474,222,896

229,020,469 2,865,433,724
8,095,268 1,805,912
4,219,725,872 1,085,840
7,325,167,085

149,723,938 --
1,437,861 800,662
-- 441,540 152,404,001

Total Long-Term Liabilities

$ 10,619,575,393 $ 277,401,364 $ 658,178,978 $ 10,238,797,779 $ 255,415,207

The July 1, 2017 balance was restated $1,586,387,908 related to net OPEB liability and ($6,659,425) related to lease purchase obligations. See Note 1 - Restatement of Prior Year Net Position for additional information related to these transactions.

84 University System of Georgia

Notes and Loans Payable The USG entered into a notes payable to secure Energy Performance Contracts. The interest rate for the notes vary between 2.003% to 2.04% and matures during fiscal year 2024. Below is the annual debt service related to the outstanding notes payable at June 30, 2018.

Year Ending June 30: 2019 2020 2021 2022 2023 2024 through 2028

Principal

Interest

$

1,437,861 $

1,467,286

1,497,313

1,527,954

1,559,223

605,631

$

8,095,268 $

156,349 126,923
96,897 66,256 34,987
4,633
486,045

Pollution Remediation Pollution remediation obligations reflect estimates that have the potential to change due to such items as price increases or reductions, new technology, or changes in applicable laws or regulations.
The University of Georgia is responsible for pollution remediation at the Milledge Avenue landfill site. USG has recorded a liability related to this pollution remediation in the amount of $822,800. The liability was determined using a fiveyear budget estimated provided by Brown and Caldwell. The University of Georgia does not anticipate any changes to the expected remediation outlay. There are no expected recoveries that have reduced this liability.
Georgia Institute of Technology is responsible for pollution remediation at all Institute sites including, but not limited to ground contamination, storage/treatment/disposal of hazardous materials, and asbestos abatement. Pollution remediation obligations reflect estimates that have the potential to change due to such items as price increases or reductions, new technology, or changes in applicable laws or regulations. USG has recorded a liability related to this pollution remediation in the amount of $263,040. There are no expected recoveries that have reduced this liability.
Note 9 Deferred Outflows and Inflows of Resources
Deferred outflows and inflows of resources reported on the Statement of Net Position as of June 30, 2018, consisted of the following:

Deferred Outflows of Resources Deferred Loss on Debt Refunding Deferred Loss on Defined Benefit Pension Plans (See Note 14) Deferred Loss on OPEB Plan (See Note 17)
Total Deferred Outflows of Resources

$

38,323,970

574,541,276

260,989,734

$

873,854,980

Deferred Inflows of Resources Deferred Gain on Debt Refunding Unavailable Revenues Deferred Service Concession Arrangements Deferred Gain on Defined Benefit Pension Plans (See Note 14) Deferred Gain on OPEB Plan (See Note 17)
Total Deferred Inflows of Resources

$

60,355,063

37,834,403

579,577,921

71,745,559

289,436,186

$ 1,038,949,132

2018 Annual Financial Report 85

Deferred Loss/Gain on Debt Refunding The unamortized deferred gain or loss on debt refunding related to changes in the provisions of various leases that resulted from a refunding by the lessor of tax-exempt debt in which the a portion of the perceived economic advantages of the refunding where passed through to various units of the USG.
Unavailable Revenues Resources from certain non-exchange transactions received before time requirements are met, but after all other eligibility requirements have been met, are reported as a deferred inflow of resources.
Service Concessions Arrangements Kennesaw State University (KSU) At June 30, 2018, Kennesaw State University (KSU) was a participant in four Service Concession Arrangements.
In August 2001, KSU entered into an agreement with KSUF whereby Kennesaw State University Foundation, Inc. (KSUF) will operate and collect revenues for housing operations from students. KSUF is required to operate the residence hall ("University Place") in accordance with a contractual agreement between the two parties. Under the terms of the agreement, the Institution received no funds upfront from KSUF, but will take full ownership of the residence hall at the end of the operating agreement in June, 2031.
In August 2003, KSU entered into an agreement with KSUF whereby KSUF will operate and collect revenues for housing operations from students. KSUF is required to operate the housing ("University Village") in accordance with a contractual agreement between the parties. Under the terms of the agreement, the Institution received no funds upfront from KSUF, but will take full ownership of the housing at the end of the operating agreement in June 2034.
In August 2007, KSU entered into an agreement with KSUF whereby KSUF will operate and collect revenues for housing operations from students. KSUF is required to operate the housing ("University Suites") in accordance with a contractual agreement between the parties. Under the terms of the agreement, the Institution received no funds upfront from KSUF, but will take full ownership of the housing at the end of the operating agreement in June 2037.
In July 2017, KSU entered in to a lease agreement with a food service provider whereby the vendor will operate a restaurant in accordance with a contractual agreement between the two parties. Under the terms of the agreement, the Institution received no funds upfront, but will take full ownership of the equipment and lease improvements at the end of the operating agreement in June, 2027.
At June 30, 2018, the University reports the three housing residences and one retail space as capital assets with a net carrying value of $60,611,645. For fiscal year 2018, the University reported a remaining deferred inflow of resources of $60,611,645 and amortized revenue of $3,641,327.
Georgia Gwinnett College (GGC) On May 13, 2014, GGC entered into an agreement with Aramark Education Services, LLC (Aramark), whereby Aramark will operate food services operations from service participants. The agreement is renewable for each year for ten years.
Aramark is required to operate the food service facilities in accordance with the contractual agreement. The contract includes a period fixed fee ("Annual Fixed Fee") payable to Aramark in the amount of $5.3 million per operating year. In the event that the amount paid to or retained by Aramark is less that the Annual Fixed Fee of $5.3 million, then GGC shall remit the amount equivalent to the difference of the Annual Fixed Fee minus Actual Operating Retainage. In the event that the actual operation year retainage is greater than 199.9% (upper threshold amount) of the Annual Fixed Fee, then Aramark shall remit the difference of the Annual Fixed Fee minus the upper threshold amount to GGC. If the actual operation year retainage is more than the Annual Fixed Fee but less than the 199.9% of the Annual Fixed Fee, then neither party shall owe anything to the other. GGC and Aramark will review the annual Fixed Fee prior to the commencement of each Operating Year and a revised Annual Fixed Fee shall be set forth in a written supplemental contract.
Under the terms of the contract Aramark committed a lump sum upfront payment of $360,000. The amortized revenue recorded related to the lump sum payment in fiscal year 2018 was $36,000 and the remaining deferred inflow was $216,000.
Under terms of the original agreement Aramark also committed $5,250,000 in dining facility renovations. In fiscal year 2017, the contract amendment called for a return of outstanding unamortized amounts of $1,615,483 and for a reduction
86 University System of Georgia

of $704,805 to deferred inflows for uncollected funds. The amortized revenue recorded in fiscal year 2018 for the remaining construction commitment was $326,438 leaving deferred inflow balance of $1,958,629.
For Fiscal Year 2018, GGC reported a total remaining Deferred Inflow of Resources of $2,174,629 related to the service concession arrangement.
University System Office (USO) During fiscal year ended June 30, 2015, the Board of Regents of the University System of Georgia (BOR) entered into a Service Concession Arrangement (SCA) with Corvias Campus Living-USG,LLC, whereby Corvias Campus LivingUSG,LLC, manages, maintains and operates certain existing student housing resources on the campuses of nine institutions: Abraham Baldwin Agricultural College; Armstrong State University; Augusta University; College of Coastal Georgia; Columbus State University; Dalton State College; East Georgia State College; Georgia State University; and the University of North Georgia.
Pursuant to the contractual stipulations of this SCA, whereby the BOR and Corvias Campus Living- USG, LLC, are the "parties" participating in this agreement, as of May 14, 2015, the institutions noted above transferred the housing resources covered by this SCA, along with associated capital lease obligations to the University System Office in fiscal year 2015 through Special Item Transfer. In accordance with the SCA, in May 2015, Corvias Campus Living-USG, LLC, provided $311,561,781 which the BOR used to retire the capital lease obligations transferred to the University System Office.
On February 23, 2018, the SCA contractual agreement with Corvias Campus Living-USG, LLC, was amended. While performance measures and the operating agreement remain intact, the term of the agreement has changed. The SCA, which was originally for 65 years (780 months) to end in June 2080, will now end on June 30, 2055. This contract modification accelerates the amortization of the Deferred Inflows.
For the $311,561,781 that was originally received from Corvias Campus Living-USG, LLC, in fiscal year 2015, $5,859,615 was amortized at June 30, 2018, leaving a remaining Deferred Inflow of Resources balance of $295,716,211 at year end.
In addition to the existing student housing arrangement, Corvias Campus Living-USG, LLC designs and constructs authorized new housing projects that, once constructed, are similarly managed, maintained and operated on seven of the nine campuses with existing student housing resources. Two of these projects were completed in fiscal year 2016 and their fair market values were capitalized increasing Capital Assets by $23,110,655. In fiscal year 2017, five additional housing projects were completed and their fair market values were capitalized increasing Capital Assets by $154,415,645. A Deferred Inflow of Resources was recorded as the offset to the Capital Asset additions. The Deferred Inflows associated with these projects are being amortized over the remaining life of the SCA in accordance with the term revision noted above. At June 30, 2018, the University System Office amortized $3,398,953 of Deferred Inflows related to these seven projects, leaving a remaining Deferred Inflow of Resources balance of $171,534,376 at year end.
Also, as part of this SCA, and beginning in fiscal year 2016, the University System Office receives $8,000,000 in Ground Rent and $500,000 in Supplemental Capital Repair and Replacement funds each year for the next ten years, with each amount escalating by 3% annually. The University System Office recorded Accounts Receivable and Deferred Inflow of Resources in the amount of $73,232,489 representing the present value of this revenue stream based on the agreement terms and will amortize the Deferred Inflows over a ten-year period. For the year ended June 30, 2018, the University System Office amortized $7,723,395 and recognized $1,294,255 in associated interest income, leaving a Deferred Inflow balance of $49,541,060 as of June 30, 2018.
The University System Office also receives retained services funds each year as a percentage of gross revenues for that year.
The University System Office has no reportable future obligation for these services.
2018 Annual Financial Report 87

Note 10 Net Position

The breakdown of business type activity net position for the USG fund at June 30, 2018 is as follows:

NET POSITION Net Investment in Capital Assets

$ 6,666,852,110

Restricted for Nonexpendable Permanent Endowment

204,781,419

Expendable Sponsored and Other Organized Activities Federal Loans Institutional Loans Term Endowments Quasi-Endowments Capital Projects
Sub-Total

123,562,652 36,303,187 26,204,356 205,999 20,261,122 11,658,263
218,195,579

Unrestricted Auxiliary Enterprises Operations Auxiliary Enterprises Renewals and Replacement Reserve Reserve for Encumbrances Reserve for Inventory Capital Liability Reserve Fund Health Insurance Reserve Other Unrestricted
Sub-Total
Total Net Position

(91,764,124) 223,160,647 436,898,086
3,801,901 20,216,561 161,356,465 (6,236,985,185) (5,483,315,649)
$ 1,606,513,459

Other unrestricted net position is reduced by $4,248,172,324 related to the recording of net OPEB liability, deferred gain on OPEB plan, and deferred loss on OPEB plan. Other unrestricted net position is also reduced by $2,362,638,007 related to the recording of net pension liability, deferred gain on defined benefit pension plans, and deferred loss on defined benefit pension plans. These OPEB and pension balances are mostly funded through state appropriation, student tuition, and fees that are subject to State surplus rules which prevents the accumulation of budgetary fund balance. Therefore, the USG is statutorily unable to maintain accumulated net position to offset these OPEB and pension balances.
Note 11 Endowments
Donor Restricted Endowments Investments of the USG's endowment funds are pooled, unless required to be separately invested by the donor. For USG controlled, donor-restricted endowments, where the donor has not provided specific instructions, the Board of Regents permits Institutions to develop policies for authorizing and spending realized and unrealized endowment income and appreciation as they determined to be prudent. Realized and unrealized appreciation in excess of the amount budgeted for current spending is retained by the endowments. Current year net appreciation for the endowment accounts was $15,127,940 and is reflected as expendable restricted net position.
For endowment funds where the donor has not provided specific instructions, investment return of the USG's endowment funds is predicated on the total return concept. Annual payouts from the USG's endowment funds are based on a
88 University System of Georgia

spending policy which limits spending between 3.0% and 6.0% of endowment principal market value. To the extent that the total return for the current year exceeds the payout, the excess is added to principal. If current year earnings do not meet the payout requirements, the USG uses accumulated income and appreciation from restricted expendable net asset endowment balances to make up the difference.

For endowment funds where the donor has not provided specific instructions, investment return of the USG's endowment funds is predicated under classical trust doctrines. Unless the donor has stipulated otherwise, capital gains and losses are accounted for as part of the endowment principal and are not available for expenditure.

For the current year, the USG did not incur investment losses that exceeded the related endowment's available accumulated income and net appreciation.

Note 12 Significant Commitments

See the Net Position note for amounts reserved for outstanding encumbrances at June 30, 2018. In addition to these encumbrances, the USG had other significant unearned outstanding construction or renovation contracts in the amount of $50,944,341 executed as of June 30, 2018. This amount is not reflected in the accompanying basic financial statements.

Note 13 Leases

Lease Obligations The USG is obligated under various capital and operating lease agreements for the acquisition or use of real property
and equipment.

Capital Leases The USG acquires certain real property and equipment through multi-year capital leases with varying terms and options. In accordance with O.C.G.A. 50-5-64, these agreements shall terminate absolutely and without further obligation at the close of the fiscal year in which it was executed and at the close of each succeeding fiscal year for which it may be renewed. These agreements may be renewed only by a positive action taken by the USG. In addition, these agreements shall terminate if the State does not provide adequate funding, but that is considered a remote possibility. The USG's principal and interest payments related to capital leases for fiscal year 2018 were $121,967,015 and $148,709,256, respectively.

The USG has $2,379,885,386 in outstanding lease obligations due to component units. The USG has $413,931,031 in outstanding lease obligations due to affiliated organizations and other related party organizations.

The following is a summary of the carrying values of assets held under capital lease at June 30, 2018:

Description
Leased Land and Land Improvements Leased Infrastructure Leased Equipment Leased Buildings and Building Improvements Leased Facilities and Other Improvements Leased Intangibles Total Assets Held Under Capital Lease

Gross Amount

Less: Accumulated Depreciation

Net, Assets Held Under Capital Lease at June 30, 2018

Outstanding Balances per Lease
Schedules at June 30, 2018

( + )

( - )

( = )

$

49,550,118 $

--$

49,550,118 $

43,077,196

39,705,000

15,008,490

24,696,510

34,115,891

27,034,613

13,758,482

13,276,131

13,809,658

3,425,337,863

990,631,338

2,434,706,525

2,812,027,080

6,457,991

2,763,564

3,694,427

4,943,730

2,120,088

106,004

2,014,084

1,380,832

$ 3,550,205,673 $ 1,022,267,878 $ 2,527,937,795 $ 2,909,354,387

Certain capital leases provide for renewal and/or purchase options. Generally purchase options at bargain prices of one dollar are exercisable at the expiration of the lease terms.
2018 Annual Financial Report 89

Operating Leases The USG leases land, facilities, office and computer equipment, and other assets. Some of these leases are considered for accounting purposes to be operating leases. Although lease terms vary, many leases are subject to appropriation from the General Assembly to continue the obligation. Other leases generally contain provisions that, at the expiration date of the original term of the lease, the USG has the option of renewing the lease on a year-to-year basis. Leases renewed yearly for a specified time period, i.e. lease expires at 12 months and must be renewed for the next year, may not meet the qualification as an operating lease. The USG's operating lease expense for fiscal year 2018 was $48,624,138 which includes payments to related parties of $23,964,864. The USG is obligated to pay these related parties a total of $24,056,324 in the next fiscal year.

Future commitments for capital leases and for non-cancellable operating leases having remaining terms in excess of one year as of June 30, 2018, are as follows:

Year Ending June 30: 2019 2020 2021 2022 2023 2024 through 2028 2029 through 2033 2034 through 2038 2039 through 2043 2044 through 2048 2049 through 2053

Real Property and Equipment Capital Leases Operating Leases

$ 262,004,407 $ 261,883,913 262,368,928 262,901,416 260,878,813
1,306,386,564 1,203,246,520
840,895,527 269,279,570
10,515,335 3,095,406

56,640,426 52,339,716 48,140,794 42,554,429 41,355,474 149,978,489 104,762,965
5,474,755 717,397 663,580 530,864

Total minimum lease payments Less: Interest Less: Executory costs
Principal Outstanding

4,943,456,399 $ 1,669,830,568
359,995,137 $ 2,913,630,694

503,158,889 .

Note 14 Retirement Plans

The USG participates in various retirement plans administered by the State of Georgia under two major retirement systems: Teachers Retirement System of Georgia (TRS) and Employees' Retirement System of Georgia (ERS). These two systems issue separate publicly available financial reports that include the applicable financial statements and required supplementary information. The reports may be obtained from the respective administrative offices.

The USG also provides two other retirement plans - the Augusta University Early Retirement Pension Plan and the Regents Retirement Plan.

The significant retirement plans that the USG participates in are described below. More detailed information can be found in the plan agreements and related legislation. Each plan, including benefit and contribution provisions, was established and can be amended by State law.

90 University System of Georgia

A. Teachers Retirement System of Georgia and Employees' Retirement System of Georgia
General Information about the Teachers Retirement System Plan description All teachers of the USG as defined in O.C.G.A. 47-3-60 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. TRS issues a publicly available financial report that can be obtained at trsga.com/ publications.
Benefits Provided TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death.
Contributions Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6% of their annual pay during fiscal year 2018. USG's contractually required contribution rate for the year ended June 30, 2018 was 16.81% of annual the USG payroll. The USG's contributions to TRS totaled $303,975,717 for the year ended June 30, 2018.
General Information about the Employees' Retirement System Plan description ERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at ers.ga.gov/financials.
Benefits provided The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS.
Under the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60.
Retirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS.
2018 Annual Financial Report 91

Contributions Member contributions under the old plan are 4% of annual compensation, up to $4,200, plus 6% of annual compensation in excess of $4,200. Under the old plan, the State pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these State contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The required contribution rate for the year ended June 30, 2018 was 24.81% of annual covered payroll for old and new plan members and 21.81% for GSEPS members. The rates include the annual actuarially determined employer contributions rate of 24.69% of annual covered payroll for old and new plan members and 21.69% for GSEPS members, plus a 0.12% adjustment for the HB 751 one time benefit adjustment of 3% to retired state employees. USG's contributions to ERS totaled $3,201,803 for the year ended June 30, 2018. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability.

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2018, the USG reported a liability for its proportionate share of the net pension liability for TRS and ERS. The net pension liability was measured as of June 30, 2017. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2016. An expected total pension liability as of June 30, 2017 was determined using standard roll-forward techniques. The USG's proportion of the net pension liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2017. At June 30, 2017, the USG's TRS proportion was 15.047800%, which was an increase of 0.179111% from its proportion measured as of June 30, 2016. At June 30, 2017, the USG's ERS proportion was 0.465664%, which was a increase of 0.024233% from its proportion measured as of June 30, 2016.

For the year ended June 30, 2018, the USG recognized pension expense of $328,346,757 for TRS and $3,276,218 for ERS. At June 30, 2018, the USG reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

TRS

Deferred Outflows of Resources

Deferred Inflows of Resources

ERS

Deferred Outflows of Resources

Deferred Inflows of Resources

Differences between expected and actual experience $ 104,613,059 $ 10,554,375 $

207,231 $

151

Changes of assumptions

61,306,694

43,056

Net difference between projected and actual earnings on pension plan investments

--

19,245,835

--

47,092

Changes in proportion and differences between contributions and proportionate share of contributions

96,962,995

35,961,415

1,981,712

1,120,302

Contributions subsequent to the measurement date

303,975,717

--

3,201,803

--

Total

$ 566,858,465 $ 65,761,625 $ 5,433,802 $ 1,167,545

92 University System of Georgia

The USG's contributions subsequent to the measurement date are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2018. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year Ended June 30:

TRS

ERS

2019 2020 2021 2022 2023

$

4,750,049 $

$

167,257,176 $

$

87,379,742 $

$

(64,564,573) $

$

2,298,729

403,399 984,980 212,305 (536,230)

Actuarial assumptions The total pension liability as of June 30, 2017 was determined by an actuarial valuation as of June 30, 2016 using the following actuarial assumptions, applied to all periods included in the measurement:

Teachers Retirement System Inflation Salary increases Investment rate of return

2.75% 3.25% - 9.00%, average, including inflation 7.50%, net of pension plan investment expense, including inflation

Postretirement mortality rates were based on the RP2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males) for service retirements and dependent beneficiaries. The RP2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB (set forward two years for males and four years for females) was used for death after disability retirement. Rates of mortality in active service were based on the RP2000 Employee Mortality Table projected to 2025 with projection scale BB.

The actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009 June 30, 2014.

Employees' Retirement System

Inflation

2.75%

Salary increases

3.25 7.00%, including inflation

Investment rate of return

7.50%, net of pension plan investment expense, including inflation

Postretirement mortality rates were based on the RP2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward 2 years for both males and females for service retirements and dependent beneficiaries. The RP2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB and set back 7 years for males and set forward 3 years for females was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 912% less than the actual number of deaths that occurred during the study period for service retirements and beneficiaries and for disability retirements. Rates of mortality in active service were based on the RP2000 Employee Mortality Table projected to 2025 with projection scale BB.

The actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009 June 30, 2014.

2018 Annual Financial Report 93

The long-term expected rate of return on TRS and ERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of pension plan investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset class Fixed income Domestic large equities Domestic mid equities Domestic small equities International developed market equities International emerging market equities Alternatives
Total

TRS target allocation 30.00% 39.80% 3.70% 1.50% 19.40% 5.60% --% 100.00 %

ERS target allocation 30.00% 37.20% 3.40% 1.40% 17.80% 5.20% 5.00% 100.00 %

Long-term expected real rate of return*
(0.50)% 9.00 % 12.00 % 13.50 % 8.00 % 12.00 % 10.50 %

* Rates shown are net of the 2.75% assumed rate of inflation

Discount rate The discount rate used to measure the total TRS and ERS pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and State of Georgia contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS and ERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Sensitivity of the Institute's proportionate share of the net pension liability to changes in the discount rate: The following presents the USG's proportionate share of the net pension liability calculated using the discount rate of 7.50%, as well as what the USG's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate:

Teachers Retirement System: Proportionate share of the net pension liability

1%

Current

1%

Decrease

discount rate

Increase

6.50%

7.50%

8.50%

$ 4,589,679,973 $ 2,796,679,979 $ 1,319,650,977

Employees' Retirement System: Proportionate share of the net pension liability

1%

Current

Decrease

discount rate

6.50%

7.50%

$ 26,693,594 $ 18,912,176 $

1% Increase
8.50% 12,274,387

Pension plan fiduciary net position Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS and ERS financial reports which are publically available at trsga.com/publications and ers.ga.gov/financials, respectively.

94 University System of Georgia

B. Early Retirement Pension Plan

Plan Description Augusta University Early Retirement Pension Plan (ERP) is a single-employer defined benefit pension plan administered by Findley, Inc., formerly Findley Davies/Bryan, Pendleton, Swats, and McAlister (BPS&M). The plan was derived by Augusta University as a means of workforce reduction and was approved by the Board of Regents of the University System of Georgia (BOR) effective January 1, 2000.

The plan was designed to provide eligible participants additional benefits above the amounts payable through Teachers Retirement System of Georgia (TRS). The plan was designed to allow vested employees aged 55 or employees of any age with 25 years of creditable service to retire without penalties as applied by the TRS for early retirement.

The plan would allow for all participants to retire as if they were vested and aged 60 or had attained 30 years of creditable service. Any member who opted into the Optional Retirement Plan aged 55 with 10 years of service by June 30, 2000 was also eligible to participate in the plan.

The plan is closed to new entrants. There were no active plan participants. As of January 1, 2018, plan participants consisted of the following:

Inactive Plan Participants:

Retirees and Beneficiaries Currently Receiving Benefits

618

Terminated Employees Entitled to Deferred Benefits

0

Disabled Employees Entitled to Deferred Benefits

0

Total

618

Benefits Provided TRS provides a benefit equal to 2.0% of the participant's average annual compensation during the two consecutive years of creditable service which produce the highest such average, multiplied by the number of years of creditable service, limited to 40 years. If the participant has less than 30 years of creditable service and has not attained age 60 at the time of retirement, the benefit will be reduced by the lesser of 1/12 of 7% for each month that retirement precedes age 60 or 7% for each year or fraction of a year by which the participant has less than 30 years of creditable service at the time of retirement. In addition, a one-time 3% increase is applied to the first $37,500 of the participant's benefit at retirement.
The ERP provides the additional benefits that would have been payable under TRS based on the following adjustments:
Age of the participant was increased five years Participant's creditable service was increased five years Participant's annual rate of earnings as of August 1, 1999 was projected five years into the future with 3%
increases each year
ERP benefits will be increased 3% a year as a cost-of-living adjustment (COLA): 1.5% on each January 1 and July 1. The ERP provided COLA's for both the ERP and TRS benefits until actual eligibility for a COLA through TRS occurred. Since that time, the ERP has provided COLA's only on the portion of the benefit paid by the ERP, and TRS has provided COLA's under the terms of the TRS plan.
The ERP does not issue a standalone report.
Funding Policy The fund sources that provided for an employee's salary, as of December 31, 1999, would be responsible for funding the annuity to provide for retiree benefits. There is no additional cost to the employee/retiree, USG, or State of Georgia for this plan. Contributions are made by Augusta University based on the actuarial valuation of the plan. For fiscal year 2018, affiliated organizations contributed $5,886,802 to the plan on-behalf of the University.
Since this plan was not pre-funded, Augusta University's approach is to collect and deposit as much into the ERP fund in the earlier years as is possible, thereby, realizing a greater return on investment. Effective January 1, 2016, the period to amortize the unfunded accrued liability was extended 2 years. With this change, the plan should be fully
2018 Annual Financial Report 95

funded by June 30, 2025. The funding policy is reasonable and in compliance with minimum funding requirements set forth in Code Section 47-20-10 of the Public Retirement Systems Standards Law.

Investments Augusta University maintains an investment policy which fosters sound and prudent judgment in the management of assets to ensure safety of capital consistent with the fiduciary responsibility of the institution to the citizens of Georgia and which conforms to the USG investment policy. All investments are consistent with USG policy and applicable Federal and state laws.

Investments are reported at fair value. Securities traded on a national or international exchange are valued at the last reported sales price. The Augusta University's Investment Policy and Guidelines for managing concentration of credit risk requires that stocks and debt issues be diversified. Augusta University also relies upon the concentration of credit risk policy of the individual investment vehicles related to plan assets. More than 5% of the Pension Plan's Investments are in Western Asset Core Plus Bond Fund, Vanguard Institutional Index Fund, iShares Russell 1000 Value Exchangetraded Fund (ETF), and iShares Russell 1000 Growth ETF. These investments are 5.52%, 40.48%, 7.69%, and 8.73% respectively of the Plan's total investments.

For the fiscal year ended June 30, 2018, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was 10.42%.

Net Pension Liability (NPL) The components of the net pension liability at June 30, 2018 were as follows:

Total pension liability Plan fiduciary net position

$ 148,863,688 99,022,119

Net pension liability

$ 49,841,569

Plan Fiduciary Net Position as a percentage of total pension liability is 66.52%.
Actuarial Assumptions The total pension liability was determined by an actuarial valuation as of January 1, 2018 with the results rolled forward to the June 30, 2018 measurement date using the following actuarial assumptions, applied to all periods included in the measurement: (a) rate of return of 7.50% per annum, compounded annually (b) inflation of 3 percent, and (c) cost of living increases of 3 percent per annum.
To better recognize current and future mortality improvements, effective June 30, 2018 mortality rates were based on the RP-2014 White Collar Mortality Table, adjusted to 2006, with generational mortality improvement projected after year 2006 using Scale MP-2017 rather than the previously used RP-2014 Mortality Table, adjusted to 2006, with generational mortality improvement projected after year 2006 using Scale MP-2015.
The projection of cash flows used to determine the discount rate of 7.5% per annum, compounded annually assumes that employer contributions will be made at rates equal to the actuarially determined contribution rates. Based on that assumption, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members.Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
The long-term expected rate of return on pension plan investments was determined using a building- block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the longterm expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.

96 University System of Georgia

Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation are summarized in the following table:

Asset Class
Domestic equity International equity Fixed income Real estate Cash

Target Allocation
81.88% --%
13.21% --% 4.91%

Long-Term Expected Real Rate of Return
6.50% 7.25% 1.25% 5.75% 0.50%

Sensitivity of Net Pension Liability to Changes in the Discount Rate The following represents the net pension liability calculated using the stated discount rate, as well as what the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentagepoint higher than the current rate:

Net pension liability

1%

Current

Decrease

discount rate

6.50%

7.50%

$ 61,955,353 $ 49,841,569 $

1% Increase 8.50%
39,266,044

Schedule of Changes in Net Pension Liability For the year ended June 30, 2018, the University recognized net pension liability of $49,841,569 calculated as follows:

Total Pension Liability (a)

Plan Fiduciary Net Position (b)

Net Pension Liability (a) - (b)

Balance, June 30, 2017

$

149,152,995 $

90,408,065 $

58,744,930

Interest Experience losses (gains) Changes of assumptions Contributions - employer Net investment income Benefit payments

10,669,543 664,493
2,161,493 -- --
(13,784,836)

-- -- -- 13,084,672 9,314,218 (13,784,836)

10,669,543 664,493
2,161,493 (13,084,672)
(9,314,218) --

Net Change

(289,307)

8,614,054

(8,903,361)

Balance, June 30, 2018

$

148,863,688 $

99,022,119 $

49,841,569

Affiliated organizations contributed $5,886,802 to the plan on behalf of the University.

2018 Annual Financial Report 97

Schedule of Changes in Pension Expense For the year ended June 30, 2018, the University recognized pension expense of $6,689,185 from the following sources:

Interest Projected investment income Recognition of experience (gain)/loss Recognition of changes in assumptions Investment losses (gains) Pension expense June 30, 2018

Pension Expense $ 10,669,543
(6,754,349) 664,493
2,161,493 (51,995)
$ 6,689,185

Deferred Outflows/Inflows of Resources At June 30, 2018, the University reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Net difference between projected and actual earnings on pension plan investments

Deferred Outflows of Resources

Deferred Inflows of Resources

$

2,249,009 $

4,816,389

Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year Ending June 30:

2019

$

2020

$

2021

$

2022

$

(51,997) (568,604) (1,434,806) (511,973)

C. Defined Contribution Plan:
Regents Retirement Plan Plan Description The Regents Retirement Plan, a single-employer defined contribution plan, is an optional retirement plan that was created/established by the Georgia General Assembly in O.C.G.A. 47-21-1 et.seq. and administered by the Board of Regents of the University System of Georgia (Board). O.C.G.A. 47-3-68(a) defines who may participate in the Regents Retirement Plan. An "eligible university system employee" is a faculty member or all exempt full and partial benefit eligible employees, as designated by the regulations of the Board. Under the Regents Retirement Plan, a plan participant may purchase annuity contracts from three approved vendors (VALIC, Fidelity, and TIAA-CREF) for the purpose of receiving retirement and death benefits. Benefits depend solely on amounts contributed to the plan plus investment earnings. Benefits are payable to participating employees or their beneficiaries in accordance with the terms of the annuity contracts.
Funding Policy The institutions of the USG make monthly employer contributions to the Regents Retirement Plan on behalf of participants at rates determined by the Board. The Board reviews the contribution amount every three (3) years. For fiscal year 2018, the employer contribution was 9.24% for the participating employee's earnable compensation. Employees contribute 6.00% of their earnable compensation. Amounts attributable to all plan contributions are fully vested and non-forfeitable at all times.
The USG and the covered employees made the required contributions of $128,965,650 (9.24%) and $83,774,712 (6.00%), respectively.
VALIC, Fidelity, and TIAA-CREF have separately issued financial reports which may be obtained through their respective corporate offices.

98 University System of Georgia

Note 15 Risk Management

The USG offers its employees and retirees under the age of 65 access to three self insured healthcare plan options and one fully insured plan option. For the USG's Plan Year 2018, the following self-insured health care options were available: Blue Choice HMO plan, (Blue Cross and Blue Shield of Georgia) Consumer Choice HSA plan, and the (Blue Cross and Blue Shield of Georgia) Comprehensive Care plan.

The USG's participating employees and eligible retirees pay premiums into the plan fund to access benefits coverage. All units of the USG share the risk of loss for claims associated with these plans. The plan fund is considered to be a self-sustaining risk fund. The USG has contracted with Blue Cross and Blue Shield of Georgia, a wholly owned subsidiary of Anthem, Inc., to serve as the claims administrator for the self-insured healthcare plan options. In addition to the self-insured healthcare plan options offered to the employees and eligible retirees of the USG, a fully insured HMO healthcare plan option also is offered through Kaiser Permanente. The Comprehensive Care plan has a carved-out prescription drug plan administered through CVS Caremark. Pharmacy drug claims are processed in accordance with guidelines established for the Board of Regents' Prescription Drug Benefit Program. Generally, claims are submitted by participating pharmacies directly to CVS Caremark for verification, processing and payment. CVS Caremark maintains an eligibility file based on information furnished by Blue Cross and Blue Shield of Georgia on behalf of the various organizational units of the University System of Georgia. The self-insured dental plan is administered through Delta Dental.

Retirees age 65 and older participate in a secondary healthcare coverage for Medicare-eligible retirees and dependents provided through a retiree health care exchange option. The USG makes contributions to a health reimbursement account, which can be used by the retiree to pay premiums and out-of-pocket healthcare-related expenses.

A reconciliation of total estimated claims liabilities for employees and retirees for the fiscal years ended June 30, 2018, and June 30, 2017 is shown below:

Active Employees: Unpaid Claims and Claim Adjustments

June 30, 2018 $ 51,688,179

June 30, 2017 $ 50,977,835

Incurred Claims and Claim Adjustments Expenses Provisions for Insured Events of the Current Year

406,315,366

383,406,114

Payments - Claims and Claim Adjustments Attributable To Insured Events of the Current Year and Prior Years

424,536,366

382,695,770

Unpaid Claims and Claim Adjustments

$ 33,467,179

$ 51,688,179

Retirees: Unpaid Claims and Claim Adjustments

$

7,497,596

$

8,811,415

Incurred Claims and Claim Adjustments Expenses Provisions for Insured Events of the Current Year

86,808,731

86,008,435

Payments - Claims and Claim Adjustments Attributable To Insured Events of the Current Year and Prior Years

89,674,896

87,322,254

Unpaid Claims and Claim Adjustments

$

4,631,431

$

7,497,596

The Department of Administrative 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 processes 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.
2018 Annual Financial Report 99

Limited amounts of commercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks.
The USG 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 of Regents of the University System of Georgia under powers authorized by the O.C.G.A 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 of the performance of their duties or in any way connected therewith. The program is administered by DOAS as a Self-Insurance Fund.
Note 16 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 expenditure disallowed under grant terms. The amount of expenditures which may be disallowed by the grantor cannot be determined at this time although the Institution expects such amounts, if any, to be immaterial to its overall financial position.
Litigation, claims and assessments filed against the USG, if any, are generally considered to be actions against the State of Georgia. 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, 2018.
Note 17 Post-Employment Benefits Other Than Pension Benefits
The USG provides two other post-employment benefit plans - the Board of Regents Retiree Health Benefit Plan and the State Employees' Assurance Department Retired and Vested Inactive Members Plan.
Board of Regents Retiree Health Benefit Plan
A. Plan Description and Funding Policy The Board of Regents Retiree Health Benefit Plan (Plan) is a single-employer, defined-benefit, healthcare plan administered by the University System Office, an organizational unit of the USG. The Plan's board is the Board of Regents of the University System of Georgia (Board) that is comprised of nineteen members, all appointed by the Governor (five from state-at-large and one from each of the state's fourteen congressional districts). The Plan was authorized pursuant to OCGA 47-21-21 for the purpose of accumulating funds necessary to meet employer costs of retiree post-employment health insurance benefits.
Pursuant to the general powers conferred by the OCGA 20-3-31, the USG has established group health and life insurance programs for regular employees of the USG. It is the policy of the USG to permit employees of the USG eligible for retirement or who become permanently and totally disabled to continue as members of the group health and life insurance programs. The USG offers its employees and retirees under the age of 65 access to three selfinsured healthcare plan options and one fully insured plan option. For the USG's Plan Year 2018, the following selfinsured health care options were available: Blue Choice HMO plan, (Blue Cross and Blue Shield of Georgia) Consumer Choice HSA plan, and the (Blue Cross and Blue Shield of Georgia) Comprehensive Care plan. The USG offers a selfinsured dental plan administered by Delta Dental.
Retirees age 65 and older participate in a secondary healthcare coverage for Medicare-eligible retirees and dependents provided through a retiree health care exchange option. The USG makes contributions to the retirees' health reimbursement account, which can be used by the retiree to pay premiums and out-of-pocket healthcare related expenses.
100 University System of Georgia

Membership of the Plan consisted of the following:

Active Employees Retirees or Beneficiaries Receiving Benefits Retirees or Beneficiaries Eligible But Not Receiving Benefits
Total

June 30, 2018 48,244 19,161 --

June 30, 2017 49,820 20,591 --

67,405

70,411

The contribution requirements of plan members and the employer are established and may be amended by the Board. The Plan is substantially funded on a "pay-as-you-go" basis; however, amounts above the pay-as-you-go basis may be contributed annually, either by specific appropriation or by Board designation.

Organizational units of the University System of Georgia pay the employer portion for group insurance for eligible retirees. The employer portion of health insurance for its eligible retirees is based on rates that are established annually by the Board for the upcoming plan year. For the 2018 plan year, the employer rate was approximately 90% of the total contributions available to cover health insurance cost for eligible retirees and the retiree rate was approximately 10%. With regard to life insurance, the employer covers the total premium cost for $25,000 of basic life insurance. If an individual elects to have supplemental, and/or, dependent life insurance coverage, such costs are borne entirely by the retiree.

For fiscal year 2018, the University System of Georgia contributed $158,419,937 to the plan for current premiums or claims.

B. Plan Investments The Plan's investments are segregated for OPEB in the Board of Regents' Balanced Income pooled investment fund.

The Balanced Income Fund is designed to be a vehicle to invest funds that are not subject to the state regulations concerning investing in equities. This pool is appropriate for investing longer term funds that require a more conservative investment strategy. Permitted investments in the fund are domestic US equities, domestic investment grade fixed income, and cash equivalents. The equity allocation shall range between 20% and 40%, with a target of 30% of the total portfolio. The fixed income (bond) portion of the portfolio shall range between 60% and 80%, with a target of 70% of the total portfolio. Cash reserves and excess income are invested at all times in the highest quality par stable (A1, P1) institutional money market mutual funds, or other high quality short term instruments. The market value of the Plan's net asset value in the Balanced Income Fund at June 30, 2018 was $64,136,763. This balance is reported as pooled investments on the Statement of Fiduciary Net Position.

The following table summarizes the adopted asset allocation policy as of June 30, 2018:

Asset Class Fixed Income Equity Allocation

Target Allocation 70% 30%

At June 30, 2018, approximately 36.85%, 20.13%, 10.65%, 10.03%, 5.80%, 5.37% and 5.15% of the Plan's investments were investments in Western Asset Core Bond Portfolio, iShares Core Total U.S. Aggregate Bond ETF, Vanguard Institutional Index Fund, DFA Short-Term Extended Quality, iShares Russell 1000 Growth ETF, iShares Core S&P Small-cap ETF, and iShares Core S&P Mid-cap ETF, respectively. These investments represents 31.08%, 16.98%, 8.98%, 8.46%, 4.89%, 4.53%, and 4.34%, respectively, of the Plan's fiduciary net position.
For the year ended June 30, 2018, the annual money-weighted rate of return on investments, net of investment expense, was 2.85%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested.

2018 Annual Financial Report 101

C. Plan Net OBEB Liability under GASB 74 For defined benefit OPEB plans that are administered through trusts that meet the specified criteria, GASB 74 requires the net OPEB liability to be measured as the total OPEB liability, less the amount of the OPEB plan's fiduciary net position. The total OPEB liability is actuarially determined.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trends. Actuarially determined amounts are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress with multi-year trend information is presented as required supplementary information following the notes to the financial statements.
The multi-year trend schedules indicate whether the actuarial values of plan assets are increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.
The components of the net OPEB liability at June 30, 2018, were as follows:

Total OPEB Liability Plan Fiduciary Net Position Net OPEB Liability

2018 $ 4,486,796,090
76,044,991 $ 4,410,751,099

Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability

1.69%

Discount Rate The last year in which projected benefit payments are due from the Plan is 2117.
The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of geometric real rates of return for each major asset class included in the target asset allocation as of June 30, 2017 are summarized in the following table:

Asset Class Fixed Income Equity Allocation

Long-term Expected Real Rate of Return
1.1%
3.98%

* Rates shown are net of the 2.50% assumed rate inflation.

The Plan's projected fiduciary net position at the end of 2022 is $0, based on the valuation completed for the fiscal year ending June 30, 2018. As such, the Plan's fiduciary net position was not projected to be available to make all projected future benefit payments for current Plan members. The projected "depletion date" when projected benefits are not covered by projected assets is 2022. Therefore, the long-term expected rate of return on Plan investments of 4.50% per annum was not applied to all periods of projected benefit payments to determine the total OPEB liability as of June 30, 2018, pursuant to paragraph 48 of GASB Statement No. 74. Instead, a yield or index rate for a 20 year, tax-exempt general obligation municipal bond with an average rating of AA or higher was used. This rate was determined to be 3.87% from the Bond Buyers Index.

102 University System of Georgia

In projecting the Plan's fiduciary net position, the following assumptions were made:
1. Projected total contributions are simply the pay as you go costs of the plan. Because the current contribution policy is not designed to pre-fund the plan, the unfunded liability is not expected to be paid off at any point in the future.
2. Assumed contributions are based on the contribution policy.
3. Projected benefit payments have been determined in accordance with Paragraphs 30-35 of GASB Statement No. 74, and are based on the closed group of active, retired members and beneficiaries as of June 30, 2018. Benefit payments are assumed to be paid mid-year.
4. Administrative expenses are $0.5 million for 2019 and are assumed to increase annually with inflation. Expenses are assumed to be paid mid-year.
5. Projected investment earnings are based on the assumed investment rate of return of 4.50% per annum.
Sensitivity of the net OPEB liability to changes in the discount rate The following presents the net OPEB liability , as well as what the net OPEB liability would be if it were calculated using a discount rate that is 1% lower (2.87%) or 1% higher (4.87%) than the current discount rate (3.87%):

Net OPEB Liability

1% Decrease

2.87%

$

5,262,300,218 $

Current Rate 3.87% 4,410,751,099 $

1% Increase 4.87% 3,744,760,263

Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates The following presents the net OPEB liability, as well as what the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1% lower or 1% higher than the current healthcare cost trend rates:

Net OPEB Liability

1% Decrease

$

3,719,384,943 $

Current Rate 4,410,751,099 $

1% Increase 5,320,398,518

Pre-Medicare Eligible Medicare Eligible

6.1% decreasing to 3.5% 7.1% decreasing to 4.5% 8.1% decreasing to 5.5%

3.5%

4.5%

5.5%

Actuarial Methods and Assumptions The impact of the Affordable Care Act (ACA) was addressed in the valuations for the Regents Plan. While the impact of certain provisions [such as the excise tax on high-value health insurance plans beginning in 2020 (if applicable), mandated benefits and participation changes due to the individual mandate] should be recognized in the determination of liabilities, overall future plan costs and the resulting liabilities are driven by amounts employers and retirees can afford (i.e., trend). The trend assumption forecasts the anticipated increase to initial per capita costs, taking into account health care cost inflation, increases in benefit utilization, plan changes, government-mandated benefits, and technological advances. Given the uncertainty regarding the ACA's implementation (e.g., the impact of excise tax on high-value health insurance plans, changes in participation resulting from the implementation of state based health insurance exchanges), continued monitoring of the ACA's impact on the Plan's liability will be required.
Projections of benefits for financial reporting purposes are based on the substantive plan (plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and Plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.

2018 Annual Financial Report 103

Additional information as of the latest actuarial valuation is as follows:

Valuation Date Cost Method Amortization Method
Asset Method Interest Discounting and Salary Growth
Mortality Rates
Healthcare Cost Trend Pre-Medicare Eligible Medicare Eligible
Ultimate Trend Rate Pre-Medicare Eligible Medicare Eligible
Year Ultimate Trend is Reached Experience Study

May 1, 2018. Update procedures were used to roll forward the total OPEB liability to June 30, 2018. Entry Age Normal Closed amortization period for initial unfunded and subsequent actuarial gains/ losses.
Fair Value Interest Rate as of 6/30/2018 3.87% from Bond Buyers Index Interest Rate as of 6/30/2017 3.58% from Bond Buyers Index Long-term Rate of Return 4.50% General Inflation 2.50% Salary Increase 4.00% Healthy: RP-2014 White Collar Mortality Table with Generational Improvements by Scale MP-2014
Disabled: RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward two years for males and four years for females)
7.1% 4.5%
4.5% 4.5% 2030 for Pre-Medicare Eligible, 2019 for Medicare Eligible Based on the experience of the Teachers Retirement System of Georgia1

1 The actuarial assumptions used in the valuation are based on the results of the most recent actuarial experience studies, which covered the five-year period ending June 30, 2014. The remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan participation, rates of plan election, etc.) used in the June 30, 2016 valuation for the Plan were based on a review of recent plan experience done concurrently with the June 30, 2016 valuation.

Changes in Assumptions Since Prior Valuation Expected claims costs were updated to reflect actual claims experience. Trend was reset based on current conditions. Disability, Termination, Retirement, and Disabled Mortality were updated to reflect the current Teachers Retirement System of Georgia.
D. USG's Net OBEB Liability, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB under GASB 75 The USG's net OPEB liability was measured as of June 30, 2017. The total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of July 1, 2016 with roll-forward procedures performed to update the total liability to June 30, 2017. The USG's net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2017. At June 30, 2017, the USG's net OPEB liability related to the Plan was $4,219,725,872, which was an increase of $17,272,070 from the liability measured as of June 30, 2016.

104 University System of Georgia

For the year ended June 30, 2018, the USG recognized OPEB expense of $303,276,109. At June 30, 2018, the USG reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Differences between expected and actual experience

Deferred Outflows of Resources

Deferred Inflows of Resources

$ 102,402,846 $

--

Changes of assumptions

-- 288,955,936

Net difference between projected and actual earnings on OPEB plan investments

132,954

--

Contributions subsequent to the measurement date

158,419,937

--

Total

$ 260,955,737 $ 288,955,936

The USG's contributions subsequent to the measurement date are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Year Ended June 30:

2019 2020 2021 2022 2023 Thereafter

$

(37,654,255)

$

(37,654,255)

$

(37,654,255)

$

(37,654,255)

$

(35,803,116)

$

--

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trends. Actuarially determined amounts are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress with multi-year trend information is presented as required supplementary information following the notes to the financial statements.
The multi-year trend schedules indicate whether the actuarial values of plan assets are increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.
The components of the net OPEB liability at June 30, 2017, were as follows:

Total OPEB Liability Plan Fiduciary Net Position Net OPEB Liability
Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability

$ 4,227,583,095 (7,857,223)
$ 4,219,725,872
0.19%

2018 Annual Financial Report 105

The changes in net OPEB liability at June 30, 2017, were as follows:
Total OPEB Liability Service Cost Interest Differences Between Expected and Actual Experience Changes of Assumptions Benefit Payments/Refunds
Net Change in Total OPEB Liability Total OPEB Liability - Beginning
Total OPEB Liability - Ending (a)
Plan Fiduciary Net Position Contributions - Employer Net Investment Income Administrative Expense Benefit Payments/Refunds
Net Change in Plan Fiduciary Net Position Plan Fiduciary Net Position - Beginning
Plan Fiduciary Net Position - Ending (b)
Net OPEB Liability Ending (a - b)

$

211,512,614

124,612,066

123,090,290

(347,330,873)

(89,653,306)

22,230,791 4,205,352,304

$

4,227,583,095

$

99,583,903

72,961

(5,044,837)

(89,653,306)

4,958,721 2,898,502

$

7,857,223

$

4,219,725,872

Discount Rate The last year in which projected benefit payments are due from the Plan is 2115.
The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the target asset allocation as of June 30, 2017 are summarized in the following table:

Asset Class Cash Equivalents Fixed Income
Domestic Fixed Income (Corporate Long Term) Domestic Fixed Income (Corporate Short Term) International Fixed Income Equity Allocation Domestic Equity (Large Cap) International Equity

Target Allocation Less than 5% 60% to 70%
30% to 40%

Long-term Expected Real Rate of Return
2.6%
4.2% 3.5% 4.9%
6.5% 7.3%

The Plan's projected fiduciary net position at the end of 2018 is $0, based on the valuation completed for the fiscal year ending June 30, 2017. As such, the Plan's fiduciary net position was not projected to be available to make all projected future benefit payments for current Plan members. The projected "depletion date" when projected benefits are not covered by projected assets is 2018. Therefore, the long-term expected rate of return on Plan investments of 4.50% per annum was not applied to all periods of projected benefit payments to determine the total OPEB liability as of June 30, 2017, pursuant to paragraph 48 of GASB Statement No. 74. Instead, a yield or index rate for a 20 year,
106 University System of Georgia

tax-exempt general obligation municipal bond with an average rating of AA or higher was used. This rate was determined to be 3.58% from the Bond Buyer.
In projecting the Plan's fiduciary net position, the following assumptions were made:
1. Projected total contributions are simply the pay as you go costs of the plan. Because the current contribution policy is not designed to pre-fund the plan, the unfunded liability is not expected to be paid off at any point in the future.
2. Assumed contributions are based on the contribution policy.
3. Projected benefit payments have been determined in accordance with Paragraphs 30-35 of GASB Statement No. 75, and are based on the closed group of active, retired members and beneficiaries as of June 30, 2017. Benefit payments are assumed to be paid mid-year.
4. Administrative expenses are $0.0 million for 2017. Expenses are assumed to be paid mid-year.
5. Projected investment earnings are based on the assumed investment rate of return of 4.50% per annum. The first year's earnings have been adjusted to account for the actual return through June 30, 2017.
Sensitivity of the net OPEB liability to changes in the discount rate The following presents the net OPEB liability , as well as what the net OPEB liability would be if it were calculated using a discount rate that is 1% lower (2.58%) or 1% higher (4.58%) than the current discount rate (3.58%):

Net OPEB Liability

1% Decrease

2.58%

$

5,040,938,351 $

Current Rate 3.58% 4,219,725,872 $

1% Increase 4.58% 3,579,534,581

Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates The following presents the net OPEB liability, as well as what the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1% lower or 1% higher than the current healthcare cost trend rates:

Net OPEB Liability

1% Decrease

$

3,559,505,220 $

Current Rate 4,219,725,872 $

1% Increase 5,091,997,068

Pre-Medicare Eligible Medicare Eligible

6.3% decreasing to 3.5% 7.3% decreasing to 4.5% 8.3% decreasing to 5.5% 6.3% decreasing to 3.7% 7.3% decreasing to 4.7% 8.3% decreasing to 5.7%

Actuarial Methods and Assumptions The impact of the Affordable Care Act (ACA) was addressed in the valuations for the Regents Plan. While the impact of certain provisions [such as the excise tax on high-value health insurance plans beginning in 2020 (if applicable), mandated benefits and participation changes due to the individual mandate] should be recognized in the determination of liabilities, overall future plan costs and the resulting liabilities are driven by amounts employers and retirees can afford (i.e., trend). The trend assumption forecasts the anticipated increase to initial per capita costs, taking into account health care cost inflation, increases in benefit utilization, plan changes, government-mandated benefits, and technological advances. Given the uncertainty regarding the ACA's implementation (e.g., the impact of excise tax on high-value health insurance plans, changes in participation resulting from the implementation of state based health insurance exchanges), continued monitoring of the ACA's impact on the Plan's liability will be required.
Projections of benefits for financial reporting purposes are based on the substantive plan (plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and Plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in

2018 Annual Financial Report 107

actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.

Additional information as of the latest actuarial valuation is as follows:

Valuation Date
Cost Method Amortization Method

July 1, 2016. Update procedures were used to rolled forward the total OPEB liability to June 30, 2017.
Entry Age Normal
Closed amortization period for initial unfunded and subsequent actuarial gains/ losses.

Asset Method Interest Discounting and Salary Growth
Mortality Rates
Initial Healthcare Cost Trend Pre-Medicare Eligible Medicare Eligible
Ultimate Trend Rate Pre-Medicare Eligible Medicare Eligible
Year Ultimate Trend is Reached Experience Study

Fair Value Interest Rate as of 6/30/2016 2.85% from Bond Buyer Interest Rate as of 6/30/2017 3.58% from Bond Buyer Long-term Rate of Return 4.50% General Inflation 2.50% Salary Growth 3.00% Salary Scale 4.00% Healthy: RP-2014 Mortality Table with Generational Improvements by Scale MP-2014
Disabled: RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward two years for males and four years for females)
7.3% 7.3%
4.5% 4.7% 2031 for Pre-Medicare Eligible, 2072 for Medicare Eligible Based on the experience of the Teachers Retirement System of Georgia: July 1, 2009 - June 30, 2014

Changes in Assumptions Since Prior Valuation
Expected claims costs were updated to reflect actual claims experience. Trend was reset based on current conditions. Disability, Termination, Retirement, and Disabled Mortality were updated to reflect the current Teachers Retirement System of Georgia.

State Employees' Assurance Department Retired and Vested Inactive Members Plan
A. Plan Description and Funding Policy State Employees' Assurance Department Retired and Vested Inactive Members Plan (SEAD-OPEB) was created in 2007 by the Georgia General Assembly to amend Title 47 of the O.C.G.A., relating to retirement, so as to establish a fund for the provision of term life insurance to retired and vested inactive members of the Employees' Retirement System of Georgia (ERS), the Legislative Retirement System (LRS), and the Georgia Judicial Retirement System (GJRS). The plan is a cost-sharing multiple-employer defined benefit other postemployment benefit plan as defined in GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans other than OPEB Plans. The SEAD-OPEB trust fund accumulates the premiums received from the aforementioned retirement plans, including interest earned on deposits and investments of such payments.
Benefits provided: The amount of insurance for a retiree with creditable service prior to April 1, 1964 is the full amount of insurance in effect on the date of retirement. The amount of insurance for a service retiree with no creditable service prior to April 1, 1964 is 70% of the amount of insurance in effect at age 60 or at termination, if earlier. Life insurance proceeds are paid in a lump sum to the beneficiary upon death of the retiree.

108 University System of Georgia

Contributions: Georgia law provides that employee contributions to the plan shall be in an amount established by the Board of Trustees not to exceed one-half of 1% of the member's earnable compensation. There were no employer contributions required for the fiscal year ended June 30, 2018.
B. OPEB Asset, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB under GASB 75
At June 30, 2018, the USG reported an asset of $2,044,332 for its proportionate share of the net OPEB asset, which is reported as other assets on the Statement of Net Position. The net OPEB asset was measured as of June 30, 2017. The total OPEB asset used to calculate the net OPEB asset was based on an actuarial valuation as of June 30, 2016. An expected total OPEB asset as of June 30, 2017 was determined using standard roll-forward techniques. The USG's proportion of the net OPEB asset was based on actual member salaries reported to the SEAD-OPEB plan during the fiscal year ended June 30, 2017. At June 30 2017, the USG's proportion was .786570%, which was an increase of .102371% from its proportion measured as of June 30, 2016.
For the year ended June 30, 2018, the USG recognized OPEB expense of ($255,873). At June 30, 2018, the USG reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Differences between expected and actual experience

Deferred Outflows of Resources

$

--

Deferred Inflows of Resources

$

--

Changes of assumptions

--

--

Net difference between projected and actual earnings on OPEB plan investments

--

314,467

Changes in proportion and differences between contributions and proportionate share of contributions
Contributions subsequent to the measurement date

33,997 --

165,783 --

Total

$

33,997 $ 480,250

Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Year Ended June 30:

2019

$

2020

$

2021

$

2022

$

(145,031) (145,032)
(78,090) (78,100)

2018 Annual Financial Report 109

Actuarial assumptions: The total OPEB asset as of June 30, 2017 was determined by an actuarial valuation as of June 30, 2016 using the following actuarial assumptions, applied to all periods included in the measurement:

Inflation Salary increases Investment rate of return Healthcare cost trend rate

2.75% 3.25 7.00%, including inflation 7.50%, net of OPEB plan investment expense, including inflation N/A

Postretirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward 2 years for both males and females for service retirements and dependent beneficiaries. There is a margin for future mortality improvement in the tables used by the plan.
The actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009 - June 30, 2014.
The long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of plan investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset class Fixed income Domestic large equities Domestic mid equities Domestic small equities International developed market equities International emerging market equities Alternatives
Total

Target allocation 30.00% 37.20% 3.40% 1.40% 17.80% 5.20% 5.00% 100.00 %

Long-term expected real rate of return*
(0.50)% 9.00 % 12.00 % 13.50 % 8.00 % 12.00 % 10.50 %

* Rates shown are net of the 2.75% assumed rate of inflation

Discount rate: The discount rate used to measure the total OPEB asset was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and State of Georgia contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB asset.
Sensitivity of the Employer's proportionate share of the net OPEB asset to changes in the discount rate: The following presents the USG's proportionate share of the net OPEB asset calculated using the discount rate of 7.50%, as well as what the USG's proportionate share of the net OPEB asset would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate:

Net OPEB Asset
110 University System of Georgia

1% Decrease

6.5%

$

1,118,951 $

Current Rate 7.5% 2,044,332 $

1% Increase 8.5% 2,802,722

OPEB plan fiduciary net position: Detailed information about the OPEB plan's fiduciary net position is available in the separately issued ERS comprehensive annual financial report which is publically available at ers.ga.gov/financials.

Note 18 Operating Expenses with Functional Classifications

Business-type activity operating expenses by functional classification for fiscal year 2018 are shown below:

Functional Classification
Instruction Research Public Service Academic Support Student Services Institutional Support Plant Operations and Maintenance Scholarships and Fellowships Auxiliary Enterprises Patient Care

Faculty Salaries

Staff Salaries

Natural Classification
Employee Benefits

Personal Services

$ 1,008,756,639 $ 458,717,427 41,850,587 63,799,385 3,253,302 10,166,527 258,741 250 635,928 85,851,306

341,311,670 $ 314,615,773 148,438,928 267,642,221 184,843,015 338,987,488 204,566,735
78,645 222,418,613 118,995,878

366,397,312 $ 154,897,885
56,038,672 86,597,701 53,965,056 167,774,112 61,597,084
165,104 53,204,166 39,472,055

2,304,542 $ 267,963 602,834 330,507 330,161
7,669,044 49,771
876,099 2,733,585
2,774

Travel
20,921,095 32,685,653
7,096,044 6,697,786 4,473,239 7,008,622
795,906 118
3,451,124 485,303

Total Operating Expenses

$ 1,673,290,092 $ 2,141,898,966 $ 1,040,109,147 $ 15,167,280 $ 83,614,890

Functional Classification
Instruction Research Public Service Academic Support Student Services Institutional Support Plant Operations and Maintenance Scholarships and Fellowships Auxiliary Enterprises Patient Care
Total Operating Expenses

Scholarships and Fellowships

Utilities

Natural Classification
Supplies and Other Services

Depreciation/ Amortization

Total Operating Expenses

$ 12,607,550 $

5,355,211 $ 173,365,079 $ 71,994,000 $ 2,003,013,098

5,670,173

4,722,929

341,551,962

86,384,532

1,399,514,297

1,562,566

3,231,057

165,792,812

8,662,760

433,276,260

560,087

3,712,829

143,578,480

54,504,740

627,423,736

4,236,758

3,320,914

81,362,773

22,577,589

358,362,807

2,462,091

8,181,677

649,093,731

41,130,939

1,232,474,231

--

119,008,050

225,991,964

89,235,609

701,503,860

273,224,278

198

1,057,854

2,564

275,405,110

29,268,806

37,707,366

364,366,166

117,724,992

831,510,746

--

257,964

130,374,609

--

375,439,889

$ 329,592,309 $ 185,498,195 $ 2,276,535,430 $ 492,217,725 $ 8,237,924,034

Note 19 Subsequent Event

In fiscal year 2019, the Board, by and on behalf of Abraham Baldwin Agricultural College, transferred all real property, buildings and the majority of all equipment of the Bainbridge and Blakely campuses with a cost of $62,837,355 and accumulated deprecation of $18,012,947 to the Southern Regional Technical College, an organizational unit of the Technical College System of Georgia. In addition, the University System of Georgia Foundation extinguished Abraham Baldwin Agricultural College's lease agreement related to the Bainbridge Student Wellness Center located on the Bainbridge campus. At June 30, 2018, the outstanding liability related to this lease is $17,788,041.

2018 Annual Financial Report 111

In December 2017, the Board , by and on behalf of Georgia Institute of Technology, entered into a lease agreement with Georgia Tech Cobb Research Campus, LLC, a wholly-owned subsidiary of Georgia Advanced Technology Ventures (GATV), a component unit, for the Georgia Tech Cobb Research Campus. This facility will be used by Georgia Institute of Technology for ongoing research activities. The lease term is for thirty-one and one half years. Pre-payments for rent during the construction period began December 2017, however, rental payments for the lease period will not begin until June 1, 2019. Total estimated rental payments will be $127,863,834 over the lease period. Monthly rental payments will include base rent and a repair and replacement contribution. The capital lease liability and capital asset will be recorded on Georgia Institute of Technology's books in fiscal year 2019 once construction is completed and the certificate of occupancy has been issued in May 2019.
In March 2018, the Board, by and on behalf of the Georgia Institute of Technology, entered into a lease agreement with Georgia Tech Facilities, Inc, a component unit, for the Dalney Building. This facility will be used by Georgia Institute of Technology for office space and an attached parking facility. The lease term is for thirty-one years and five months. Pre-payments for rent during the construction period began March 2018, however, rental payments for the lease period will not begin until September 1, 2019. Total estimated rental payments will be $71,064,952 over the lease period. Monthly rental payments will include base rent and a repair and replacement contribution. Total rental payments for fiscal year 2019 are expected to equal $1,584,948. The capital lease liability and capital asset will be recorded on Georgia Institute of Technology's books in fiscal year 2020 once construction is complete and the certificate of occupancy is issued in October 2019.
Note 20 Component Units
Related organizations promote, support, and assist the USG in its role in accordance with stated system needs and goals. Together, they add significantly to the USG assets and revenues for programs and services, and ultimately enhance the USG's performance of its mission. The USG has twenty-five related organizations that are considered component units of the State of Georgia and, thus, are required to be reported in the USG's financial statements. Although the USG is not fiscally accountable for these entities, it has been determined that the nature and significance of the relationship between the USG and these organizations is such that exclusion from the USG's financial statements would render them misleading. An annual audit of each component unit's financial statements is conducted by independent accounting firms. The twenty-five organizations included in this presentation are described below:
AU Health Systems, Inc. AU Health System, Inc. (AUHS) located in Augusta, Georgia, was incorporated under the laws of the State of Georgia as a nonprofit corporation on June 1, 2010. AUHS qualifies as a tax-exempt corporation under Section 501(c)(3) of the Internal Revenue Service Code. The purpose of the AUHS is to further the health sciences education missions and other tax-exempt functions and purposes of Augusta University (AU), AU Medical Associates, Inc. (AUMA), AU Medical Center, Inc. (AUMC), Roosevelt Warm Springs Rehabilitation & Specialty Hospitals, Inc. (RWSH) and other cooperating organizations and entities with AU.
During the year ended June 30, 2018, AUHS, AUMC, RWSH, and AUMA completed a series of corporate and governance changes (the Reorganization) to better align the entities within AUHS and allow for efficient and integrated funds flow and accounting. As a result of the Reorganization, AUMA became a blended component unit of AUHS. Prior to the Reorganization, AUMA was a component unit of AU and AUMA's financial position and operating results were not included in AUHS's financial statements. In addition, as a result of the Reorganization, AUMC and RWSH became blended component units of AUHS. Prior to the Reorganization, AUMC and RWSH were discretely presented component units within AUHS's financial statements. As part of the Reorganization, MCGH/PPG Reproductive Lab, LLC became a part of the integrated health system. This was not included in the prior year as it was a joint venture between AUMC and AUMA and had its own set of financial statements. AUHS has retrospectively restated its financial statements for the change in reporting entity as if it had occurred as of the start of the year ended June 30, 2017.
Augusta University Foundation, Inc. The Augusta University Foundation (AUF) is a private nonprofit organization that reports under FASB standards. As such, certain revenue recognition criteria and presentation features are different from GASB revenue recognition criteria and presentation features. The FASB reports were reclassified to the GASB presentation for external financial reporting purposes in these financial statements.
The AUF acts primarily as a fund-raising organization to supplement the resources that are available to Augusta University in support of its programs. During the year ended June 30, 2018, the AUF distributed approximately $1,107,378 to Augusta University in support of capital outlay projects, scholarships, and other supporting activities.
112 University System of Georgia

Augusta University Research Institute, Inc. Augusta University Research Institute (AURI) is a legally separate, tax-exempt component unit of the State of Georgia reporting entity. The AURI serves to enhance the research mission of Augusta University by securing sponsored research funding and by providing funding of special research initiatives. During the year ended June 30, 2018, the AURI distributed approximately $60,279,814 to Augusta University in support of capital outlay projects, scholarships, and other supporting activities.
Georgia Advanced Technology Ventures, Inc. The Georgia Advanced Technology Ventures (GATV) is a legally separate, not-for-profit corporation under the laws of the state of Georgia. GATV is a supporting organization of the Institute focused on technology, commercialization, economic development and relevant real estate development. GATV provides support for technology transfer and economic development activities, including the Institute's Advanced Technology Development Center (ATDC) incubator facilities and services to ATDC-affiliated companies.
GATV reports under FASB standards. As such, certain revenue recognition criteria and presentation features are different from GASB revenue recognition criteria and presentation features. The FASB audited financial statements were reclassified to the GASB presentation for these financial statements.
Georgia College & State University Foundation, Inc. The Georgia College & State University Foundation (GC&SUF) is a private nonprofit organization that reports under FASB standards. As such, certain revenue recognition criteria and presentation features are different from GASB revenue recognition criteria and presentation features. The FASB reports were reclassified to the GASB presentation for external financial reporting purposes in these financial statements.
The GC&SUF acts primarily as a fund raising organization to supplement the resources that are available to Georgia College & State University in support of its programs. During the year ended June 30, 2018, the GC&SUF distributed approximately $822,000 to Georgia College & State University in support of scholarships and other supporting activities.
Georgia Gwinnett College Foundation, Inc. Georgia Gwinnett College Foundation, Inc. (GGCF) was established on May 8, 2006 to serve as an advocate for Georgia Gwinnett College, a unit of the University System of Georgia.
GGCF's primary object is to receive, invest, account for, and allocate private gifts and contributions in support of the College.
Georgia Health Sciences Foundation, Inc. The Georgia Health Sciences Foundation (GHSF) is a private nonprofit organization that reports under FASB standards. As such, certain revenue recognition criteria and presentation features are different from GASB revenue recognition criteria and presentation features. The FASB reports were reclassified to the GASB presentation for external financial reporting purposes in these financial statements.
The GHSF acts primarily as a fund-raising organization to supplement the resources that are available to Augusta University in support of its programs. During the year ended June 30, 2018, the GHSF distributed approximately $5,690,616 to Augusta University in support of capital outlay projects, scholarships, and other supporting activities.
Georgia Southern University Housing Foundation, Inc. The Georgia Southern University Housing Foundation, Inc. (GSUHF) is a private nonprofit organization that reports under FASB standards. As such, certain revenue recognition criteria and presentation features are different from GASB revenue recognition criteria and presentation features. The FASB reports were reclassified to the GASB presentation for external financial reporting purposes in these financial statements.
The GSUHF is a legally separate, tax-exempt affiliated organization which supports Georgia Southern University (GSU). GSUHF acts primarily as an organization to issue bonds which are utilized to acquire and/or construct student housing and other student facilities that are available to GSU in support of its programs. The board of the GSUHF is selfperpetuating and consists of employees and friends of GSU. Because the organization's purpose is for the benefit of GSU, the GSUHF is considered a component unit of the State of Georgia reporting entity and is discretely presented in these financial statements.
2018 Annual Financial Report 113

Georgia State University Athletic Assocation, Inc. The Georgia State University Athletic Association, Inc. (GSUAA) administers Georgia State University's intercollegiate athletics program, including fund-raising to support scholarships. During the year ended June 30, 2018, the GSUAA distributed approximately $11 million to the Georgia State University for athletic scholarship support and other payments that were either expense reimbursements or support for Georgia State University's intercollegiate athletics program.
Georgia State University Foundation, Inc. The Georgia State University Foundation, Inc. and Subsidiaries (GSUF) is a private nonprofit organization that reports under FASB standards. As such, certain revenue recognition criteria and presentation features are different from GASB revenue recognition criteria and presentation features. The FASB reports were reclassified to the GASB presentation for external financial reporting purposes in these financial statements.
The GSUF acts primarily as a fund-raising organization to supplement the resources that are available to the Georgia State University in support of its programs. During the year ended June 30, 2018, the GSUF distributed approximately $19,013,313 to Georgia State University in support of capital outlay projects, scholarships and other supporting activities.
Georgia State University Research Foundation Inc. Georgia State University Research Foundation (GSURF) is a legally separate, tax-exempt component unit of Georgia State University (GSU) and was established to contribute to the scientific, literary, educational, and charitable functions of GSU in securing gifts, contributions, and grants from individuals, private organizations, and public agencies, and in obtaining contracts with such individuals or entities for the performance of sponsored research, development, or other programs by the various colleges, schools, departments or other units of GSU. Most of the research grants awarded to GSURF are subcontracted to GSU, which is responsible for the fiscal administration of the grants. The ten member board of GSURF is self-perpetuating and consists of faculty and administrators of GSU. Because the resources held by GSURF can only be used by or for the benefit of GSU, GSURF is considered a component unit of the State of Georgia and is discretely presented in University System of Georgia's financial statements.
GSURF is considered a special-purpose government entity engaged only in business-type activities and is required to follow all applicable GASB pronouncements. GSURF's fiscal year is July 1 through June 30.
Georgia Tech Athletic Association The Georgia Tech Athletic Association (GTAA) is a legally separate not-for-profit corporation under the laws of the state of Georgia. The primary purpose of the GTAA is to promote the educational programs of the Georgia Institute of Technology through student body participation in healthful exercises, recreations, athletic games and contests. The GTAA's mission is to inspire and empower student-athletes to be champions of academics, competition and life while emphasizing the four core values of excellence, innovation, teamwork and character. The GTAA reports under GASB standards.
For the year ended June 30, 2018, the GTAA distributed $41 million to the Georgia Institute of Technology for athletic scholarships and other supporting activities.
Georgia Tech Facilities, Inc. The Georgia Tech Facilities, Inc. (GTFI) is a legally separate, not-for-profit corporation under the laws of the state of Georgia. The purpose of GTFI is to construct buildings and other facilities as may be appropriate to meet the needs and goals of the Georgia Institute of Technology. Funding for construction is obtained by the Organization from contributions or from financing with debt service funded by support from various sources.
Additionally, the FASB reported Investment in Direct Financing Leases and Net Position was increased $51,965,155 for external financial reporting purposes in these financial statements. This adjustment was necessary as GTFI amortizes Investment in Direct Financing Leases on a straight-line method.
GTFI reports under FASB standards. As such, certain revenue recognition criteria and presentation features are different from GASB revenue recognition criteria and presentation features. The FASB audited financial statements were reclassified to the GASB presentation for these financial statements.
114 University System of Georgia

Georgia Tech Foundation, Inc. The Georgia Tech Foundation (GTF) is a legally separate, not-for-profit corporation under the laws of the state of Georgia. The purposes of the Foundation are to promote higher education in the state of Georgia, to raise and receive funds for the support and enhancement of the Georgia Institute of Technology (GT), and to aid GT in its development as a leading educational institution.
The Foundation reports under FASB standards. As such, certain revenue recognition criteria and presentation features are different from GASB revenue recognition criteria and presentation features. The FASB audited financial statements were reclassified to the GASB presentation for these financial statements.
The FASB reported amounts for Investment in Direct Financing Leases and Net Position were adjusted for the GTF by $19,012,839 for external financial reporting purposes in these financial statements. Both GT and GTF use the effective interest rate method to amortize leases. However, GT uses the Sources and Uses of Funds and the average coupon rate which is a higher interest rate than the interest rate in the actual bond documents used by GTF. Thus, an adjustment was necessary for financial statement presentation.
Georgia Tech Research Corporation The Georgia Tech Research Corporation (GTRC) is a legally separate, not-for-profit corporation under the laws of the state of Georgia. The GTRC is organized and operated primarily for the purpose of soliciting grants and contracts, accepting grants or entering into contracts for research or services to be performed by or in conjunction with the Georgia Institute of Technology (GT) or to be performed using GT's facilities, and for related objectives. The GTRC reports under GASB standards.
For year ended June 30, 2018, the GTRC distributed $755 million to GT for research contracts sub-awarded to GT. GT is obligated under various operating lease agreements with the GTRC, a related party. This information is disclosed in Note 13, Leases.
Kennesaw State University Foundation, Inc. The Kennesaw State University Foundation (KSUF) is a private nonprofit organization that reports under FASB standards. As such, certain revenue recognition criteria and presentation features are different from GASB revenue recognition criteria and presentation features. The FASB reports were reclassified to the GASB presentation for external financial reporting purposes in these financial statements.
The KSUF acts primarily as a fund-raising organization to supplement the resources that are available to the Kennesaw State University (KSU) in support of its programs. During the year ended June 30, 2018, the KSUF distributed approximately $5,358,464 to KSU in support of capital outlay projects, scholarships and other supporting activities.
Medical College of Georgia Foundation Medical College of Georgia Foundation, Inc. (MCGF) is a nonprofit corporation incorporated under the laws of the State of Georgia in 1954. The MCGF serves the needs and interests of the Medical College of Georgia, the Augusta University Health Sciences campus, and the Augusta University Health System. The MCGF presents its financial statements in accordance with Financial Accounting Standards Board (FASB) ASC, Financial Statements of Not-forProfit Organizations. As such, certain revenue recognition criteria and presentation features are different from GASB revenue recognition criteria and presentation features. The FASB reports were reclassified to the GASB presentation for external financial reporting purposes in these financial statements.
The MCGF receives and administers funds for the support of the Medical College of Georgia, the Augusta University Health Sciences campus, and the Augusta University Health System, and manages investments and distributed funds in accordance with donor instructions and board of director's intentions for gifts. The MCGF provides support for faculty chairs, research, scholarships, and other institutional programs. During the year ended June 30, 2018, the MCGF paid approximately $5,858,829 to Augusta University and its affiliates in support of students and University programs. The MCGF paid approximately $599,529 to non-affiliated organizations on behalf of Augusta University.
Middle Georgia State University Real Estate Foundation, Inc. The Middle Georgia State University Real Estate Foundation (MGAREF) is a private nonprofit organization that reports under FASB standards. As such, certain revenue recognition criteria and presentation features are different from GASB revenue recognition criteria and presentation features. The FASB reports were reclassified to the GASB presentation for external financial reporting purposes in these financial statements.
2018 Annual Financial Report 115

MGAREF is a nonprofit corporation originally incorporated on August 31, 1973 for the purpose of promoting, in various ways, the cause for higher education, expanding educational opportunities, supporting athletic programs, and acquiring and administering funds to be used to award scholarships and create endowments for the benefit of students and faculty of Middle Georgia State University (MGSU). MGAREF was restructured on February 25, 2013 to acquire, construct, supervise, administer and manage assets and properties, real and personal that are held and used exclusively for the benefit of MGSU.
University of Georgia Athletic Association, Inc. The University of Georgia Athletic Association, Inc. (UGAAA) is a legally separate, tax-exempt component unit of the State of Georgia. The UGAAA was organized in 1928 as a not-for-profit corporation to promote intercollegiate athletic sports representing the University of Georgia (UGA). Although UGA is not fiscally accountable for the UGAAA, the nature and significance of the relationship between UGA and the UGAAA is such that exclusion from these financial statements would render them misleading.
During the year ended June 30, 2018, the UGAAA made payments to UGA for services such as food services, parking services, health services, tuition, gas, electricity, security, and golf course maintenance. These payments totaled $54 million.
University of Georgia Foundation The University of Georgia Foundation (UGAF) is a not for profit foundation that was chartered in 1937 to receive and administer contributions for the support of the academic programs of the University of Georgia (UGA). UGAF reports under FASB standards. As such, certain revenue recognition criteria and presentation features are different from GASB revenue recognition criteria and presentation features. The FASB reports were reclassified to the GASB presentation for external financial reporting purposes in these financial statements.
During the year ended June 30, 2018, UGAF distributed $58.5 million to UGA for both restricted and unrestricted purposes.
University of Georgia Research Foundation, Inc. The University of Georgia Research Foundation (UGARF) is a legally separate, tax-exempt affiliated organization of the University of Georgia (UGA). The UGARF serves to enhance the research mission of UGA by securing sponsored research funding and by providing funding of special research initiatives. All UGA intellectual property developed through these research programs is managed by the UGARF. The seventeen-member board of the UGARF consists of designated UGA personnel, appointees of several UGA constituent groups, and individuals selected by the UGARF itself. All sponsored research awards are subcontracted to UGA and other resources and related income are used to benefit the teaching, research, and outreach missions of UGA.
The UGARF is considered a special-purpose government entity engaged only in business-type activities and is required to follow all applicable GASB pronouncements. The UGARF's fiscal year is July 1 through June 30.
The UGARF includes one component unit; the UGA Real Estate Foundation, Inc. (UGAREF). The UGARF is the sole corporate member of the UGAREF and its activities are included in the financial statements using a blended presentation. The UGAREF manages and improves various real estate assets for the benefit of UGA. The UGAREF may also provide support to the Board of Regents of the University System of Georgia and its affiliated institutions.
University of North Georgia Real Estate Foundation, Inc. The University of North Georgia Real Estate Foundation, Inc. and Subsidiaries (UNGREF), is a nonprofit foundation exempt from federal and state income taxes under Internal Revenue Code Section 501(c)(3). The UNGREF was formed and incorporated under the laws of the state of Georgia in July 2009. The purpose of the UNGREF is to serve the needs and interest of the University of North Georgia (UNG) and to benefit and promote the well-being of its administration, faculty, staff, student body, and the people and communities served by UNG; and to acquire, lease, receive, accept, develop, manage, encumber, assign, sell, transfer and convey real property to be administered exclusively for charitable purposes for the benefit of UNG.
UWG Real Estate Foundation, Inc. UWG Real Estate Foundation, Inc. (UWGREF) is a legally separate, tax-exempt component unit of the University of West Georgia (UWG). The UWGREF constructs research and auxiliary buildings and facilities for use by UWG and then leases the completed buildings to UWG. The nine-member board of the UWGREF is self-perpetuating and consists of graduates and friends of UWG. Although UWG does not control the timing or amount of receipts from the UWGREF,
116 University System of Georgia

the majority of resources or income thereon that the UWGREF holds and invests is restricted to real estate activities of UWG. Because these restricted resources held by the UWGREF can only be used by or for the benefit of UWG, the UWGREF is considered a component unit of the State of Georgia and is discretely presented in these financial statements.

The UWGREF acts primarily as a fund-raising organization to supplement the resources that are available to UWG in support of its programs. During the year ended June 30, 2018, the UWGREF distributed approximately $62,659 to UWG in support of capital outlay projects, scholarships and other supporting activities.

University System of Georgia Foundation, Inc. The University System of Georgia Foundation, Inc. (USGF) is a nonprofit foundation exempt from federal and state income taxes under Internal Revenue Code Section 501(c)(3), and was formed on August 10, 1995. The USGF was organized and operates under the laws of the State of Georgia to serve the needs and interests of the University System of Georgia (USG).

The USGF is a cooperative organization of the USG. Its mission is to advance the USG, as a whole, consistent with the priorities determined by the USGF Board of Trustees. The USGF's support comes primarily from contributions and grants from individuals and corporations, and from leasing activities within the USG. The USGF has four primary goals, which are: to cultivate private support for scholarships for students to attend USG institutions, to serve as the administrative center for private grants awarded to USG office staff in "Research and Development (R&D) Centers" that feature the strategic priorities of the Board of Regents and that involve multiple USG institutions, to provide support to the Office of the Chancellor of the USG, to facilitate financing of capital improvement projects at USG institutions. During fiscal year 2018, the USGF awarded $1.5 million in scholarships in support of various institutions within the USG.

VSU Auxiliary Services Real Estate Foundation, Inc. The VSU Auxiliary Services Real Estate Foundation, Inc (VSUREF) is a private nonprofit organization that reports under FASB standards, including FASB Statement No. 17, Financial Reporting for Not-for-Profit Organizations. As such, certain revenue recognition criteria and presentation features are different from GASB revenue recognition criteria and presentation features. The FASB reports were reclassified to the GASB presentation for external financial reporting purposes in these financial statements. The VSUREF's fiscal year is January 1 through December 31.

The VSUREF was organized to support Valdosta State University (VSU) in its mission to provide excellent higher education to its constituencies, and to provide broad advice, consultation and support to the President of VSU. The VSUREF's primary efforts are directed toward developing VSU's facilities and infrastructure as identified in the strategic planning process and the master plan of VSU. In addition, the VSUREF may provide such services as administration of assets, advice, consultation and support to the Board of Regents and the colleges and universities of the University System of Georgia and their affiliated support organizations. The VSUREF's primary source of revenue are lease payments, and repairs and maintenance and other fees received from the Board of Regents.

Combined component unit's endowments are comprised of the following amounts at June 30, 2018:

Beginning Contributions Net realized and unrealized gains Appropriation of endowment assets for expenditure Transfers to comply with donor intent Other
Ending

Unrestricted/ Quasi
Endowment

Temporarily

Permanently

Restricted/

Restricted/

Term Endowment True Endowment

$ 392,971,015 $ 971,202,077 $ 1,472,617,409 $

8,791,582

14,652,183

90,775,285

38,893,185

185,986,476

5,909,402

(23,238,986)

(96,053,757)

(5,045,656)

176,195

(897,563)

(1,114,579)

6,314,616

24,907,091

328,000

$ 423,907,607 $ 1,099,796,507 $ 1,563,469,861 $

Total 2,836,790,501
114,219,050 230,789,063 (124,338,399)
(1,835,947) 31,549,707 3,087,173,975

2018 Annual Financial Report 117

Combined component unit's investments are comprised of the following amounts at June 30, 2018:

Investment type Debt Securities U.S. Treasuries U.S. Agencies Explicitly Guaranteed Implicitly Guaranteed Bond Securities
Corporate Debt Money Market Mutual Funds Municipal Obligations Mutual Bond Funds Certificates of Deposits
Repurchase Agreements
Other Investments Equity Mutual Funds - Domestic Equity Mutual Funds - International Equity Securities - Domestic Equity Securities - International Real Estate Held for Investment Purposes Real Estate Investment Trusts Other

Fair Value

$

139,279,830 $

863,251 17,658,902 239,362,153
91,394,418 135,839,857
7,572,369 82,651,835
750,000
54,466,742

109,284,362 261,174,913 641,563,452 461,468,084
57,360,674 68,309,337 1,484,172,461

Level 1
113,535,013 $
-- 12,095,905 181,636,839 13,920,429 134,680,959
-- 17,812,129
750,000 6,142,188
109,284,362 261,174,913 640,811,633 422,636,084
-- 33,780,819 114,110,461

Fair Value Hierarchy

Level 2

Level 3

25,744,817 $
863,251 5,562,997
191,314 77,473,989
1,158,898 7,572,369 64,839,706
-- 48,324,554
-- -- 382,819 -- -- -- 8,283,563

--$
-- -- -- -- -- -- -- -- --
-- -- -- -- 57,360,674 508,518 148,499,033

NAV
--
-- -- 57,534,000 -- -- -- -- -- --
-- -- 369,000 38,832,000 -- 34,020,000 1,213,279,404

Investment Pools Board of Regents Short-Term Fund Legal Fund Balanced Income Fund Total Return Fund Diversified Fund Diversified Fund for Foundations Office of the State Treasurer Georgia Fund 1
Total Investments

3,853,172,640 $

2,062,371,734 $

240,398,277 $

206,368,225 $

1,344,034,404

83,414,889 551,194
10,959,592 441,548
4,738,572 14,998,436

279,127

$

3,968,555,998

Component unit investments of $122,041,825 are reported as cash and cash equivalents on the Statement of Net Position.

118 University System of Georgia

Combined component unit's capital assets are comprised of the following amounts at June 30, 2018:

Capital Assets, Not Being Depreciated: Land Capitalized Collections Construction Work-in-Progress Software Development-in-Progress
Total Capital Assets Not Being Depreciated
Capital Assets, Being Depreciated/Amortized: Infrastructure Building and Building Improvements Facilities and Other Improvements Equipment Capital Leases Software
Total Capital Assets being Depreciated/Amortized
Less Total Accumulated Depreciation/Amortization
Total Capital Assets being Depreciated/Amortized, Net
Capital Assets, Net

Total

$

147,897,722

3,117,193

79,648,830

16,044,727

246,708,472

4,190,671 907,136,484 237,946,905 306,748,088
66,936,210 36,063,933 1,559,022,291

645,527,946

913,494,345

$

1,160,202,817

Combined amounts due to component units related to direct financing lease activity as of June 30, 2018 is as follows:

Year Ending June 30: 2019 2020 2021 2022 2023 2024 through 2028 2029 through 2033 2034 through 2038 2039 through 2043 2044 through 2048 Total minimum lease payments to be received Unearned Income
Net Investment in Direct Financing Lease

Year:

1

$

2

3

4

5

6-10

11-15

16-20

21-25

26-30

$

Total
196,578,730 199,557,987 201,379,506 201,835,068 201,029,210 1,001,692,972 908,727,208 665,843,968 200,323,826
2,589,544 3,779,558,019 (1,395,278,023) 2,384,279,996

2018 Annual Financial Report 119

Combined component unit's long-term liabilities are comprised of the following amounts at June 30, 2018:

Beginning Balance

Additions

Reductions

Amounts due Ending Balance within One Year

Claims and Judgments Compensated Absences Lease Purchase Obligation (Capital Lease) Liabilities under Split Interest Agreement Notes and Loans Payable Note (Discount)/Cost of Issuance Interest Rate Swap Net Other Post Employment Benefits Liability Pollution Remediation Revenue/Mortgage Bonds Payable Bond - Premium Bond - (Discount)/Cost of Issuance

$ 2,226,304 $ 19,192,484 92,201,115 29,120,130
201,905,212 (977,012)
57,857,348
11,531,792 601,341
3,032,153,792 131,095,057 (64,877,568)

--$ 4,774,759 2,680,297
719,773 84,640,488 (1,122,118)
5,823,186
6,957,347 --
572,298,047 61,545,093 (4,033,095)

180,688 $ 4,165,870 11,954,669 1,784,788 17,991,831
(405,156) 33,504,458

2,045,616 $ 19,801,373 82,926,743 28,055,115 268,553,869 (1,693,974) 30,176,076

12,323,460 39,412
485,799,310 11,115,301 (10,385,557)

6,165,679 561,929
3,118,652,529 181,524,849 (58,525,106)

1,279,688 19,801,373
8,267,512 2,369,700 80,813,416
-- --
-- 561,929 92,182,022
-- --

Total Long Term Liabilities

$ 3,512,029,995 $ 734,283,777 $ 568,069,074 $ 3,678,244,698 $ 205,275,640

Combined component unit's capital lease obligations are comprised of the following amounts at June 30, 2018:

Year ending June 30: 2019 2020 2021 2022 2023 2024 through 2028 2029 through 2033 2034 through 2038
Total minimum lease payments Less: Interest
Principal Outstanding

1

$

2

3

4

5

6-10

11-15

16-20

$

12,590,551 11,478,069 10,084,477
9,318,186 8,073,340 30,046,406 28,422,919 4,540,308 114,554,256 31,627,513 82,926,743

Combined component unit's notes and loans are comprised of the following amounts at June 30, 2018:

Year ending June 30: 2019 2020 2021 2022 2023 2024 through 2028 2029 through 2033 2034 through 2038 2039 through 2043
Note (Discount)/Cost of Issuance Total

Principal

1

$

2

3

4

5

6-10

11-15

16-20

21-25

$

80,813,416 $ 115,192,082
3,279,095 3,396,839 3,111,005 49,476,895 8,874,138 3,685,399
725,000 268,553,869
(1,693,974) 266,859,895 $

Interest
5,191,946 $ 4,119,657 3,422,924 3,307,656 3,239,190 5,492,127 2,151,265
431,387 16,218
27,372,370 --
27,372,370 $

Total
86,005,362 119,311,739
6,702,019 6,704,495 6,350,195 54,969,022 11,025,403 4,116,786
741,218 295,926,239
(1,693,974) 294,232,265

120 University System of Georgia

Combined component unit's bonds payable are comprised of the following amounts at June 30, 2018:

Year ending June 30: 2019 2020 2021 2022 2023 2024 through 2028 2029 through 2033 2034 through 2038 2039 through 2043 2044 through 2048 2049 through 2053
Bond Premium Bond (Discount)/Cost of Issuance Total

Principal

1

$

2

3

4

5

6-10

11-15

16-20

21-25

26-30

31-35

$

92,182,022 $ 134,068,552 110,563,881 117,406,038 150,381,052 694,414,828 773,431,156 673,425,000 319,860,000
48,990,000 3,930,000
3,118,652,529 181,524,849 (58,525,106)
3,241,652,272 $

Interest
139,464,046 $ 135,667,264 130,269,915 125,231,850 119,032,393 498,373,923 327,415,745 164,244,944
41,801,730 7,257,338 413,450
1,689,172,598 -- --
1,689,172,598 $

Total
231,646,068 269,735,816 240,833,796 242,637,888 269,413,445 1,192,788,751 1,100,846,901 837,669,944 361,661,730
56,247,338 4,343,450
4,807,825,127 181,524,849 (58,525,106)
4,930,824,870

2018 Annual Financial Report 121

122 University System of Georgia

Required Supplementary Information

224 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS DEFINED BENEFIT PENSION PLANS FOR THE LAST TEN YEARS

Early Retirement Plan

Year Ended 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 6/30/2011 6/30/2010 6/30/2009

Actuarially Determined Contribution
(a)
$ 11,767,714 $ 12,107,903 $ 12,760,669 $ 12,996,582 $ 13,045,051 $ 13,055,907 $ 12,861,601 $ 12,973,559 $ 13,050,409 $ 13,225,850

Contributions in Relation to the
Actuarially Determined Contribution
(b)
$ 13,084,672
$ 13,084,672
$ 13,084,672
$ 13,084,672
$ 13,084,672
$ 13,225,850
$ 13,225,850
$ 13,225,850
$ 13,225,850
$ 13,225,850

Contribution Deficiency (Excess)
(a-b)

$ (1,316,958)

$

(976,769)

$

(324,003)

$

(88,090)

$

(39,621)

$

(169,943)

$

(364,249)

$

(252,291)

$

(175,441)

$

--

Covered Payroll (c)
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Contributions as a Percentage of Covered Payroll (b/c)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

Employees' Retirement System

6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 6/30/2011 6/30/2010 6/30/2009

$ 3,201,803 $ 3,201,803 $

$ 2,963,115 $ 2,963,115 $

$ 2,674,110 $ 2,674,110 $

$ 2,094,605 $ 2,094,605 $

$ 1,631,633 $ 1,631,633 $

$ 1,238,577 $ 1,238,577 $

$

896,604 $

896,604 $

$

709,947 $

709,947 $

$

665,448 $

665,448 $

$

687,652 $

687,652 $

--$ --$ --$ --$ --$ --$ --$ --$ --$ --$

12,768,728 11,464,596 10,285,916
9,219,622 8,690,850 8,312,597 7,701,668 6,819,856 6,392,392 6,568,751

25.08% 25.85% 26.00% 22.72% 18.77% 14.90% 11.64% 10.41% 10.41% 10.47%

Teachers Retirement System

6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 6/30/2011 6/30/2010 6/30/2009

$ 303,975,717 $ 303,975,717 $ $ 246,086,468 $ 246,086,468 $ $ 232,397,988 $ 232,397,988 $ $ 203,874,344 $ 203,874,344 $ $ 181,383,954 $ 181,383,954 $ $ 164,293,969 $ 164,293,969 $ $ 148,193,749 $ 148,193,749 $ $ 143,479,549 $ 143,479,549 $ $ 135,361,497 $ 135,361,497 $ $ 128,072,380 $ 128,072,380 $

-- $ 1,806,029,773 -- $ 1,724,389,667 -- $ 1,626,552,148 -- $ 1,542,770,677 -- $ 1,477,068,029 -- $ 1,439,912,086 -- $ 1,441,573,434 -- $ 1,395,715,457 -- $ 1,389,748,429 -- $ 1,380,090,302

16.83% 14.27% 14.29% 13.21% 12.28% 11.41% 10.28% 10.28% 9.74% 9.28%

2018 Annual Financial Report 125

UNIVERSITY SYSTEM OF GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY MULTIPLE EMPLOYER DEFINED BENEFIT PENSION PLANS FOR THE LAST FOUR FISCAL YEARS*

Employees' Retirement System

Year Ended 6/30/2018 6/30/2017 6/30/2016 6/30/2015

Teachers Retirement System

6/30/2018 6/30/2017 6/30/2016 6/30/2015

Proportion of the Net Pension Liability

Proportionate Share of
the Net Pension Liability

0.47% $

18,912,176 $

0.44% $

20,881,541 $

0.40% $

16,237,112 $

0.39% $

14,722,566 $

Covered Payroll
11,464,596 10,285,916
9,219,622 8,690,850

Proportionate Share
of the Net Pension Liability as a Percentage of
Covered Payroll

Plan Fiduciary Net Position as a
Percentage of the Total Pension Liability

164.96%

76.33%

203.01%

72.34%

176.11%

76.20%

169.40%

77.99%

15.05% $ 14.87% $ 14.74% $ 14.52% $

2,796,679,979 $ 1,724,389,667 3,067,576,327 $ 1,626,552,148 2,243,998,382 $ 1,542,770,677 1,835,025,616 $ 1,477,068,029

162.18% 188.59% 145.45% 124.23%

79.33% 76.06% 81.44% 84.03%

*This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

126 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYERS' AND NONEMPLOYERS' NET PENSION LIABILITY EARLY RETIREMENT PLAN - AUGUSTA UNIVERSITY SINGLE EMPLOYER DEFINED BENEFIT PENSION PLAN FOR THE LAST FIVE FISCAL YEARS* (Dollar amounts in millions)

Total Pension Liability Plan Fiduciary Net Position

2018

2017

2016

2015

2014

$ 148.9 $ 149.2 $ 151.8 $ 143.8 $ 145.4

99.0

90.4

80.3

79.1

76.2

Net Pension Liability

$ 49.9 $ 58.8 $ 71.5 $ 64.7 $ 69.2

Plan Fiduciary Net Position as a Percentage of the Total Pension Liability

66.5%

60.6%

52.9%

55.0%

52.4%

Covered Payroll

N/A N/A

N/A

N/A

N/A

Employers' and Nonemployers' Net Pension Liability as a Percentage of Covered Payroll

N/A

N/A

N/A

N/A

N/A

* This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

2018 Annual Financial Report 127

UNIVERSITY SYSTEM OF GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET PENSION LIABILITY EARLY RETIREMENT PLAN - AUGUSTA UNIVERSITY SINGLE EMPLOYER DEFINED BENEFIT PENSION PLAN FOR THE LAST FIVE FISCAL YEARS* (Dollar amounts in millions)

Total Pension Liability Interest Differences Between Expected and Actual Experience Changes of Assumptions Benefit Payments/Refunds
Net Change in Total Pension Liability Total Pension Liability - Beginning
Total Pension Liability - Ending (a)
Plan Fiduciary Net Position Contributions - Employer Net Investment Income Benefit Payments/Refunds
Net Change in Plan Fiduciary Net Position Plan Fiduciary Net Position - Beginning
Plan Fiduciary Net Position - Ending (b)
Net Pension Liability Ending (a - b)

2018

2017

2016

2015

2014

$ 10.7 $ 10.9 $ 10.3 $ 10.4 $ 10.6

0.6

0.1

1.3

1.3

(0.1)

2.2

--

9.9

--

--

(13.8)

(13.6)

(13.5)

(13.3)

(13.1)

(0.3) 149.2

(2.6) 151.8

8 143.8

(1.6) 145.4

(2.6) 148

$ 148.9 $ 149.2 $ 151.8 $ 143.8 $ 145.4

$ 13.1 $ 13.1 $ 13.1 $ 13.1 $ 13.1

9.3

10.6

1.6

3.1

11.8

(13.8)

(13.6)

(13.5)

(13.3)

(13.1)

8.6

10.1

1.2

2.9

11.8

90.4

80.3

79.1

76.2

64.4

$ 99.0 $ 90.4 $ 80.3 $ 79.1 $ 76.2

$ 49.9 $ 58.8 $ 71.5 $ 64.7 $ 69.2

* This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

128 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF INVESTMENT RETURNS EARLY RETIREMENT PLAN - AUGUSTA UNIVERSITY SINGLE EMPLOYER DEFINED BENEFIT PENSION PLAN FOR THE LAST FIVE FISCAL YEARS*

Annual Money-Weighted Rate of Return, Net of Investment Expense

2018

2017

2016

2015

2014

10.42% 13.39%

2.02%

4.13% 18.35%

* This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

2018 Annual Financial Report 129

UNIVERSITY SYSTEM OF GEORGIA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION DEFINED BENEFIT PENSION PLANS METHODS AND ASSUMPTIONS FOR FISCAL YEAR ENDED JUNE 30, 2018
Changes of assumptions Early Retirement Plan: The expectation of retired life mortality was changed effective June 30, 2018 to the RP-2014 White Collar Mortality Table rather than the RP-2014 Mortality Table used previously. Mortality rates were adjusted to better recognize current and future mortality improvements. Employees' Retirement System: On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. Teachers Retirement System: In 2010 and later, the expectation of retired life mortality was changed to the RP2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience. On November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males).
130 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS DEFINED BENEFIT OPEB PLANS FOR THE LAST TEN YEARS* (Dollars in thousands)

Board of Regents Retiree Health Benefit Plan

Year Ended

Actuarially Determined Contribution
(a)

Contributions in Relation to the
Actuarially Determined Contribution
(b)

Contribution Deficiency (Excess)
(a-b)

Covered Employee Payroll (c)

Contributions as a Percentage of
Covered Employee Payroll (b/c)

6/30/2018

$

467,338 $

158,420 $

308,918 $

3,218,771 $

--

6/30/2017 **

$

349,859 $

99,584 $

250,275 $

3,122,694 $

--

6/30/2016

$

295,192 $

111,814 $

183,378 $

3,087,013 $

--

6/30/2015

$

442,359 $

129,823 $

312,536 $

2,608,757 $

--

6/30/2014

$

403,314 $

120,926 $

282,388 $

2,594,800 $

--

6/30/2013

$

362,426 $

83,414 $

279,012 $

2,466,314 $

--

6/30/2012

$

345,298 $

88,836 $

256,462 $

2,526,212 $

--

6/30/2011

$

411,516 $

80,262 $

331,254 $

2,432,367 $

--

6/30/2010

$

381,700 $

69,900 $

311,800 $

2,399,532 $

--

6/30/2009

$

349,500 $

68,100 $

281,400 $

2,372,385 $

--

Notes to Schedule

Valuation Date

May 1, 2018. Update procedures were used to roll forward the total OPEB liability to June 30, 2018.

Cost Method

Entry Age Normal

Amortization Method

Closed amortization period for initial unfunded and subsequent actuarial gains/losses.

Asset Method

Fair Value

Investment Rate of Return 4.5%, net of OPEB plan investment expense, including inflation of 2.5%

Salary Increases

4.0%

Mortality Rates

Healthy: RP-2014 White Collar Mortality Table with Generational Improvements by Scale MP-2014

Healthcare Cost Trend Pre-Medicare Eligible

Disabled: RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward two years for males and four years for females)
7.1%

Medicare Eligible Ultimate Trend Rate
Pre-Medicare Eligible

4.5% 4.5% reached 2030

Medicare Eligible

4.5% reached 2019

Experience Study

Based on the experience of the Teachers Retirement System of Georgia. The actuarial assumptions used in the valuation are based on the results of the most recent actuarial experience studies, which covered the five-year period ending June 30, 2014. The remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan participation, rates of plan election, etc.) used in the June 30, 2016 valuation for the Plan were based on a review of recent plan experience done concurrently with the June 30, 2016 valuation.

Changes in Assumptions Since Prior Valuation:
Expected claims costs were updated to reflect actual claims experience. Trend was reset based on current conditions. Disability, Termination, Retirement, and Disabled Mortality were updated to reflect the current Teachers Retirement System of Georgia.

State Employees' Assurance Department Retired and Vested Inactive Members Plan

Year Ended

Contractually Required
Contribution (a)

Contributions in Relation to the Contractually
Required Contribution
(b)

Contribution Deficiency (Excess)
(a-b)

Covered Payroll (c)

6/30/2018

$

--$

--$

--$

12,769

Contributions as a Percentage of Covered Payroll (b/c)
--%

* This schedule is intended to show information for 10 years. Additional years will be displayed as they become available. ** June 30, 2017 covered employee payroll for the Board of Regents Retiree Health Benefit Plan was restated.

2018 Annual Financial Report 131

UNIVERSITY SYSTEM OF GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB ASSET COST SHARING MULTIPLE EMPLOYER DEFINED BENEFIT OPEN PLAN FOR FISCAL YEAR ENDED JUNE 30, 2018*

State Employees' Assurance Department Retired and Vested Inactive Members Plan

Year Ended 6/30/2018

Proportion of the Net OPEB Asset

Proportionate Share of
the Net OPEB Asset

0.79% $

2,044,332 $

Covered Payroll
11,454,514

Proportionate Share
of the Net OPEB Asset as a
Percentage of Covered Payroll

Plan Fiduciary Net Position as a
Percentage of the Total OPEB
Asset

17.85%

130.17%

*This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

132 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET OPEB LIABILITY BOARD OF REGENTS RETIREE HEALTH BENEFIT PLAN SINGLE EMPLOYER DEFINED BENEFIT OPEB PLAN FOR THE LAST TWO FISCAL YEARS*

Total OPEB Liability Service Cost Interest Differences Between Expected and Actual Experience Changes of Assumptions Benefit Payments/Refunds
Net Change in Total OPEB Liability Total OPEB Liability - Beginning
Total OPEB Liability - Ending (a)
Plan Fiduciary Net Position Contributions - Employer Net Investment Income Administrative Expense Benefit Payments/Refunds
Net Change in Plan Fiduciary Net Position Plan Fiduciary Net Position - Beginning
Plan Fiduciary Net Position - Ending (b)
Net OPEB Liability Ending (a - b)

2018

2017

$

236,916,639 $

211,512,614

158,222,522

124,612,066

264,729,331

123,090,290

(310,106,837)

(347,330,873)

(90,548,660)

(89,653,306)

259,212,995 4,227,583,095

22,230,791 4,205,352,304

$

4,486,796,090 $

4,227,583,095

$

158,419,937 $

801,316

(484,825)

(90,548,660)

99,583,903 72,961
(5,044,837) (89,653,306)

68,187,768 7,857,223

4,958,721 2,898,502

$

76,044,991 $

7,857,223

$

4,410,751,099 $

4,219,725,872

* This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

2018 Annual Financial Report 133

UNIVERSITY SYSTEM OF GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF NET OPEB LIABILITY BOARD OF REGENTS RETIREE HEALTH BENEFIT PLAN SINGLE EMPLOYER DEFINED BENEFIT OPEB PLAN FOR THE LAST TWO FISCAL YEARS*

Total OBEB Liability Plan Fiduciary Net Position
Net OPEB Liability Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability Covered Employee Payroll
Net OPEB Liability as a Percentage of Covered Employee Payroll

2018

2017

$ 4,486,796,090 $ 4,227,583,095

76,044,991

7,857,223

$ 4,410,751,099 $ 4,219,725,872

1.69%

0.19%

$ 3,218,771,744 $ 3,122,694,102

137.03%

135.13%

* This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

134 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF INVESTMENT RETURNS BOARD OF REGENTS RETIREE HEALTH BENEFIT PLAN SINGLE EMPLOYER DEFINED BENEFIT OPEB PLAN FOR THE LAST TWO FISCAL YEARS*

Annual Money-Weighted Rate of Return, Net of Investment Expense

2018 2.85%

2017 0.99%

* This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

2018 Annual Financial Report 135

UNIVERSITY SYSTEM OF GEORGIA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION DEFINED BENEFIT OPEB PLANS METHODS AND ASSUMPTIONS FOR FISCAL YEAR ENDED JUNE 30, 2018 Board of Regents Retiree Health Benefit Plan Changes in Assumptions Since Prior Valuation Expected claim costs were updated to reflect actual claims experience. Trend was reset based on current conditions. Disability, termination, retirement, and disabled mortality tables were updated to reflect the current Teachers Retirement System of Georgia methodology. The discount rate was updated from 3.58% as of June 30, 2017 to 3.87% as of June 30, 2018. State Employees' Assurance Department Retired and Vested Inactive Members Plan Changes in Assumptions Since Prior Valuation On December 17, 2015, the SEAD Board adopted recommended changes to the economic and demographic assumptions utilized by the SEAD-OPEB plan. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases.
136 University System of Georgia

Supplementary Information

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2018

Abraham Baldwin Agricultural College

Albany State University

Atlanta Metropolitan State College

Augusta University

ASSETS

Current Assets

Cash and Cash Equivalents

$

Cash and Cash Equivalents (Externally Restricted)

Short-term Investments

Short-term Investments (Externally Restricted)

Accounts Receivable, net

Federal Financial Assistance

State General Appropriations

Margin Allocation Funds

Affiliated Organizations

Component Units

Primary Government

Pledges and Contributions

Other

Notes Receivable, net

Due From Other Funds

Investment in Capital Leases - Primary Government

Investment in Capital Leases - Other

Inventories

Prepaid Items

Other Assets

Total Current Assets

Non-Current Assets Accounts Receivable, net Affiliated Organizations Component Units Primary Government Due From USO - Capital Liability Reserve Fund Due From Institution - Capital Liability Reserve Fund Pledges and Contributions Other Investments Notes Receivable, net Due From Other Funds Investment in Capital Leases - Primary Government Investment in Capital Leases - Other Other Assets Non-current Cash (Externally Restricted) Short-term Investments (Externally Restricted) Investments (Externally Restricted) Capital Assets, net
Total Non-Current Assets TOTAL ASSETS

DEFERRED OUTFLOWS OF RESOURCES

$

9,893,081 $
292,267 118,948
--
809,610 -- --
568,305 -- -- --
1,710,739 -- --
-- -- 306,582 24,122 -- 13,723,654
-- -- --
--
-- -- -- -- 229,082 --
-- -- -- 1,588 -- 1,924,929 105,388,239 107,543,838 121,267,492
7,044,089 $

10,105,105 $
3,328,066 -- --
1,928,808 -- -- -- -- -- --
3,765,507 -- --
-- -- -- 40,614 -- 19,168,100
-- -- --
801,382
-- -- -- -- 56,245 --
-- -- -- -- -- -- 218,967,160 219,824,787 238,992,887
11,611,625 $

873,411 $
46,654 -- --
1,847,459 -- -- -- -- -- --
566,313 -- --
-- -- -- 58,868 -- 3,392,705

16,212,975
24,898,021 -- --
7,418,397 -- --
679,661 40,475,906
-- -- 24,991,740 -- --
-- -- 723,742 17,028,036 -- 132,428,478

-- -- --
69,628
-- -- -- -- -- --
-- -- -- -- -- -- 42,848,997 42,918,625 46,311,330
4,100,406 $

-- -- --
197,730
-- -- -- 76,949,626 2,273,398 --
-- -- -- -- -- 12,937,349 537,217,308 629,575,411 762,003,889
92,008,272

138 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2018

LIABILITIES Current Liabilities Accounts Payable Salaries Payable Benefits Payable Contracts Payable Retainage Payable Interest Payable (Added for SAO) Due to Affiliated Organizations Due to Component Units Due to Primary Government Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Deposits Deposits Held for Other Organizations Other Liabilities Notes and Loans Payable Lease Purchase Obligations - External Lease Purchase Obligations - Component Units Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities

Abraham Baldwin Agricultural College

Albany State University

Atlanta Metropolitan State College

Augusta University

$

952,025 $

1,268,362 $

1,445,196 $

11,398,329

347,451

365,541

120,749

3,137,247

109,632

134,269

42,714

6,681,522

--

30,582

--

1,122,718

--

51,400

--

379,363

--

--

--

--

--

--

--

1,620,181

--

--

--

4,628,432

--

--

--

--

--

--

--

--

--

--

--

--

1,048,697

4,718,434

676,651

45,287,085

155,500

312,749

2,917

--

974,162

1,692,732

449,937

2,681,016

--

--

--

--

--

--

--

--

379,733

2,614,850

196,268

1,471,790

--

--

--

2,306,377

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

358,754

--

750,340

1,477,486

492,910

21,701,052

4,717,540

12,666,405

3,786,096

102,415,112

Non-Current Liabilities Due to Affiliated Organizations Due to Component Units Due to Primary Government Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Other Liabilities Notes and Loans Payable Lease Purchase Obligations - External Lease Purchase Obligations - Component Units Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Net Other Post Employment Benefits Liability Net Pension Liability
Total Non-Current Liabilities TOTAL LIABILITIES

-- -- -- -- -- -- -- -- 17,458,716 -- -- -- -- -- -- 447,050 42,402,042 25,507,132 85,814,940 90,532,480

-- -- -- -- -- -- -- -- 101,227,181 -- -- -- -- -- -- 1,075,049 67,230,614 45,914,491 215,447,335 228,113,740

-- -- -- -- -- -- -- -- 9,476,242 -- -- -- -- -- 1,005,250 270,288 17,354,129 15,788,405 43,894,314 47,680,410

-- -- -- -- -- -- -- -- 1,947,885 46,495,025 -- -- -- -- -- 17,496,656 500,127,185 364,460,016 930,526,767 1,032,941,879

DEFERRED INFLOWS OF RESOURCES

$

6,645,834 $

19,128,900 $

1,507,792 $

54,136,573

2018 Annual Financial Report 139

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2018

NET POSITION Net Investment in Capital Assets Restricted for: Nonexpendable Expendable Capital Projects Higher Education Endowment Unrestricted (Deficit)
TOTAL NET POSITION

Abraham Baldwin Agricultural College

Albany State University

Atlanta Metropolitan State College

Augusta University

$

87,549,790 $

114,020,393 $

33,176,487 $

485,453,028

1,851,787 862,837 -- -- --
(59,131,147)

-- 208,527
-- -- -- (110,867,048)

-- 46,654
-- -- -- (31,999,607)

2,558,310 33,662,268
-- -- -- (754,739,897)

$

31,133,267 $

3,361,872 $

1,223,534 $

(233,066,291)

140 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2018

Clayton State University

College of Coastal Georgia

Columbus State University

Dalton State College

ASSETS

Current Assets

Cash and Cash Equivalents

$

Cash and Cash Equivalents (Externally Restricted)

Short-term Investments

Short-term Investments (Externally Restricted)

Accounts Receivable, net

Federal Financial Assistance

State General Appropriations

Margin Allocation Funds

Affiliated Organizations

Component Units

Primary Government

Pledges and Contributions

Other

Notes Receivable, net

Due From Other Funds

Investment in Capital Leases - Primary Government

Investment in Capital Leases - Other

Inventories

Prepaid Items

Other Assets

Total Current Assets

Non-Current Assets Accounts Receivable, net Affiliated Organizations Component Units Primary Government Due From USO - Capital Liability Reserve Fund Due From Institution - Capital Liability Reserve Fund Pledges and Contributions Other Investments Notes Receivable, net Due From Other Funds Investment in Capital Leases - Primary Government Investment in Capital Leases - Other Other Assets Non-current Cash (Externally Restricted) Short-term Investments (Externally Restricted) Investments (Externally Restricted) Capital Assets, net
Total Non-Current Assets TOTAL ASSETS

DEFERRED OUTFLOWS OF RESOURCES

$

6,339,439 $
1,753,281 -- --
2,907,533 -- --
320,643 -- -- --
3,052,450 -- --
-- -- 1,171,102 127,626 -- 15,672,074
1,757,840 -- --
578,205
-- -- -- -- 6,188 --
-- -- -- -- -- -- 126,937,785 129,280,018 144,952,092
8,447,953 $

4,609,032 $
12,701 -- --
230,072 -- --
352,096 -- -- --
1,011,240 -- --
-- -- 29,737 99,049 -- 6,343,927

19,295,085 $
1,338,149 -- --
2,073,596 -- --
355,752 -- -- --
8,878,995 -- --
-- -- -- 511,537 -- 32,453,114

-- -- --
77,550
-- -- -- -- -- --
-- -- -- -- -- 162,429 65,988,107 66,228,086 72,572,013
3,533,730 $

-- -- --
259,144
-- -- -- 2,184,189 714,181 --
-- -- -- -- -- 3,046,817 107,581,927 113,786,258 146,239,372
12,756,283 $

9,544,104
126,951 -- --
917,716 -- --
71,861 -- -- --
1,192,332 -- --
-- -- 13,151 111,700 -- 11,977,815
-- -- --
46,314
-- -- -- -- -- --
-- -- -- -- -- -- 47,779,597 47,825,911 59,803,726
5,167,394

2018 Annual Financial Report 141

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2018

LIABILITIES Current Liabilities Accounts Payable Salaries Payable Benefits Payable Contracts Payable Retainage Payable Interest Payable (Added for SAO) Due to Affiliated Organizations Due to Component Units Due to Primary Government Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Deposits Deposits Held for Other Organizations Other Liabilities Notes and Loans Payable Lease Purchase Obligations - External Lease Purchase Obligations - Component Units Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities

Clayton State University

College of Coastal Georgia

Columbus State University

Dalton State College

$

1,907,528 $

956,890 $

2,704,764 $

1,063,932

284,048

221,085

437,508

152,051

84,805

61,541

185,106

279,910

--

--

--

--

145,870

--

18,125

39,235

--

--

--

--

--

291

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

2,261,944

848,340

7,115,259

939,061

59,104

15,995

200

19,075

540,181

265,919

5,354,267

375,255

22,920

--

--

--

--

--

--

--

--

273,155

192,303

--

1,662,253

--

1,417,892

132,385

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

1,533,709

446,449

1,783,017

522,367

8,502,362

3,089,665

19,208,441

3,523,271

Non-Current Liabilities Due to Affiliated Organizations Due to Component Units Due to Primary Government Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Other Liabilities Notes and Loans Payable Lease Purchase Obligations - External Lease Purchase Obligations - Component Units Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Net Other Post Employment Benefits Liability Net Pension Liability
Total Non-Current Liabilities TOTAL LIABILITIES

-- -- -- -- -- -- -- -- -- 65,776,816 -- -- -- -- -- 592,625 53,045,161 30,853,488 150,268,090 158,770,452

-- -- -- -- -- -- -- -- 11,028,493 -- -- -- -- -- -- 222,409 21,070,357 11,148,212 43,469,471 46,559,136

-- -- -- -- -- -- -- -- 402,833 40,487,830 -- -- -- -- -- 1,197,497 71,374,427 43,439,869 156,902,456 176,110,897

-- -- -- -- -- -- -- -- -- 5,836,432 -- -- -- -- -- 200,683 32,086,331 17,054,622 55,178,068 58,701,339

DEFERRED INFLOWS OF RESOURCES

$

15,573,111 $

1,823,669 $

6,475,407 $

3,994,930

142 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2018

NET POSITION Net Investment in Capital Assets Restricted for: Nonexpendable Expendable Capital Projects Higher Education Endowment Unrestricted (Deficit)
TOTAL NET POSITION

Clayton State University

College of Coastal Georgia

Columbus State University

Dalton State College

$

49,610,011 $

54,686,459 $

65,062,944 $

41,239,007

1,750,693 8,776 -- -- --
(72,312,998)

68,879 106,251
-- -- -- (27,138,651)

2,057,501 2,253,693
-- -- -- (92,964,787)

-- 1,961
-- -- -- (38,966,117)

$

(20,943,518) $

27,722,938 $

(23,590,649) $

2,274,851

2018 Annual Financial Report 143

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2018

East Georgia State College

Fort Valley State University

Georgia College & State University

Georgia Gwinnett College

ASSETS

Current Assets

Cash and Cash Equivalents

$

Cash and Cash Equivalents (Externally Restricted)

Short-term Investments

Short-term Investments (Externally Restricted)

Accounts Receivable, net

Federal Financial Assistance

State General Appropriations

Margin Allocation Funds

Affiliated Organizations

Component Units

Primary Government

Pledges and Contributions

Other

Notes Receivable, net

Due From Other Funds

Investment in Capital Leases - Primary Government

Investment in Capital Leases - Other

Inventories

Prepaid Items

Other Assets

Total Current Assets

Non-Current Assets Accounts Receivable, net Affiliated Organizations Component Units Primary Government Due From USO - Capital Liability Reserve Fund Due From Institution - Capital Liability Reserve Fund Pledges and Contributions Other Investments Notes Receivable, net Due From Other Funds Investment in Capital Leases - Primary Government Investment in Capital Leases - Other Other Assets Non-current Cash (Externally Restricted) Short-term Investments (Externally Restricted) Investments (Externally Restricted) Capital Assets, net
Total Non-Current Assets TOTAL ASSETS

DEFERRED OUTFLOWS OF RESOURCES

$

2,852,859 $
77,464 -- --
1,289,821 -- --
5,597 -- -- --
763,493 -- --
-- -- 12,460 662 -- 5,002,356

6,295,826 $
2,122,283 -- --
3,272,657 -- --
760,860 -- -- --
1,915,911 -- --
-- -- -- 126,939 -- 14,494,476

23,311,418 $
880,554 -- --
303,609 -- --
167,989 34,041 -- --
3,570,146 -- --
-- -- 292,019 1,340,309 -- 29,900,085

37,237,072
518,191 -- --
104,150 -- -- --
52,624 -- --
1,001,483 -- --
-- -- -- 752,033 -- 39,665,553

-- -- --
--
-- -- -- 4,800 -- --
-- -- -- -- -- 44,424 26,105,766 26,154,990 31,157,346
3,875,710 $

-- -- --
650,273
-- -- -- 73,886 992,405 --
-- -- -- -- -- -- 142,171,873 143,888,437 158,382,913
8,071,027 $

1,803,415 -- --
1,081,968
-- -- -- 3,200,363 106,890 --
-- -- -- 118,051 -- 4,983,305 181,994,686 193,288,678 223,188,763
17,703,204 $

-- -- --
1,507,117
-- -- -- -- -- --
-- -- -- -- -- -- 232,851,234 234,358,351 274,023,904
41,815,769

144 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2018

LIABILITIES Current Liabilities Accounts Payable Salaries Payable Benefits Payable Contracts Payable Retainage Payable Interest Payable (Added for SAO) Due to Affiliated Organizations Due to Component Units Due to Primary Government Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Deposits Deposits Held for Other Organizations Other Liabilities Notes and Loans Payable Lease Purchase Obligations - External Lease Purchase Obligations - Component Units Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities

East Georgia State College

Fort Valley State University

Georgia College & State University

Georgia Gwinnett College

$

456,198 $

2,717,740 $

3,527,527 $

2,208,943

128,588

181,111

433,227

526,421

51,872

67,091

197,088

635,247

--

45,080

1,898,383

--

11,370

147,899

328,196

--

--

--

--

--

--

--

--

--

--

--

--

4,548

--

--

--

--

--

--

--

--

--

321,895

--

--

444,884

1,603,821

1,941,653

2,519,849

1,895

--

345,975

844,249

67,423

361,622

923,618

255,539

474

--

807,492

178,909

--

--

--

--

1,655

1,485,920

751,173

1,149,162

--

--

2,449,186

4,484,066

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

251,527

--

--

361,101

1,414,915

2,478,011

1,395,014

1,525,460

8,598,621

16,081,529

14,201,947

Non-Current Liabilities Due to Affiliated Organizations Due to Component Units Due to Primary Government Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Other Liabilities Notes and Loans Payable Lease Purchase Obligations - External Lease Purchase Obligations - Component Units Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Net Other Post Employment Benefits Liability Net Pension Liability
Total Non-Current Liabilities TOTAL LIABILITIES

-- -- -- -- -- -- -- -- 1,173 -- -- -- -- -- -- 239,276 17,993,671 10,956,411 29,190,531 30,715,991

-- -- -- -- -- -- -- -- -- 74,794,485 -- -- -- -- -- 701,968 41,795,878 29,171,314 146,463,645 155,062,266

-- -- -- -- -- -- -- -- 33,479,849 82,330,653 -- -- -- -- -- 756,936 82,897,148 53,932,163 253,396,749 269,478,278

-- -- -- -- -- -- -- -- 4,530,668 161,177,249 -- -- -- -- -- 660,719 61,932,874 43,719,375 272,020,885 286,222,832

DEFERRED INFLOWS OF RESOURCES

$

1,523,348 $

11,188,860 $

10,571,081 $

6,897,966

2018 Annual Financial Report 145

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2018

NET POSITION Net Investment in Capital Assets Restricted for: Nonexpendable Expendable Capital Projects Higher Education Endowment Unrestricted (Deficit)
TOTAL NET POSITION

East Georgia State College

Fort Valley State University

Georgia College & State University

Georgia Gwinnett College

$

26,102,938 $

62,458,039 $

63,216,913 $

81,350,698

37,100 168,882
-- -- -- (23,515,203)

-- 2,911,384
-- -- -- (65,166,609)

4,200,208 2,048,983
-- -- -- (108,623,496)

-- 518,191
-- -- -- (59,150,014)

$

2,793,717 $

202,814 $

(39,157,392) $

22,718,875

146 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2018

Georgia Highlands College

Georgia Institute of Technology

Georgia Southern University

Georgia Southwestern University

ASSETS

Current Assets

Cash and Cash Equivalents

$

Cash and Cash Equivalents (Externally Restricted)

Short-term Investments

Short-term Investments (Externally Restricted)

Accounts Receivable, net

Federal Financial Assistance

State General Appropriations

Margin Allocation Funds

Affiliated Organizations

Component Units

Primary Government

Pledges and Contributions

Other

Notes Receivable, net

Due From Other Funds

Investment in Capital Leases - Primary Government

Investment in Capital Leases - Other

Inventories

Prepaid Items

Other Assets

Total Current Assets

Non-Current Assets Accounts Receivable, net Affiliated Organizations Component Units Primary Government Due From USO - Capital Liability Reserve Fund Due From Institution - Capital Liability Reserve Fund Pledges and Contributions Other Investments Notes Receivable, net Due From Other Funds Investment in Capital Leases - Primary Government Investment in Capital Leases - Other Other Assets Non-current Cash (Externally Restricted) Short-term Investments (Externally Restricted) Investments (Externally Restricted) Capital Assets, net
Total Non-Current Assets TOTAL ASSETS

DEFERRED OUTFLOWS OF RESOURCES

$

5,268,479 $
-- -- --
2,148,092 -- --
1,956 -- -- --
6,915,789 -- --
-- -- -- 53,891 -- 14,388,207

205,580,549 $
91,624,306 -- --
12,032,839 -- -- --
106,175,231 -- --
23,263,434 -- --
-- -- 1,006,490 25,194,259 -- 464,877,108

64,648,055 $
938,014 -- --
6,743,863 -- --
2,531,387 -- -- --
11,738,397 -- --
-- -- 4,452,338 2,800,395 -- 93,852,449

-- -- --
115,505
-- -- -- -- -- --
-- -- -- -- -- 40,226 49,172,382 49,328,113 63,716,320
4,979,273 $

-- -- --
2,275,907
-- -- -- -- 12,727,073 --
-- -- -- 42,150 -- 83,394,723 1,917,030,340 2,015,470,193 2,480,347,301
140,174,893 $

-- 2,596,400
--
1,999,583
-- -- -- 4,176,858 1,956,907 --
-- -- -- -- -- 5,830,035 637,755,112 654,314,895 748,167,344
45,610,618 $

5,926,465
3,060,116 --
486,617
10,650 -- --
35,219 -- -- --
1,150,055 -- --
-- -- 647,295 285,319 -- 11,601,736
-- -- --
267,598
-- -- -- 335,628 118,999 --
-- -- -- -- -- -- 81,471,833 82,194,058 93,795,794
4,632,840

2018 Annual Financial Report 147

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2018

LIABILITIES Current Liabilities Accounts Payable Salaries Payable Benefits Payable Contracts Payable Retainage Payable Interest Payable (Added for SAO) Due to Affiliated Organizations Due to Component Units Due to Primary Government Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Deposits Deposits Held for Other Organizations Other Liabilities Notes and Loans Payable Lease Purchase Obligations - External Lease Purchase Obligations - Component Units Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities

Georgia Highlands College

Georgia Institute of Technology

Georgia Southern University

Georgia Southwestern University

$

797,572 $

79,422,180 $

6,846,803 $

915,145

137,470

2,563,071

2,176,346

322,641

80,312

640,267

724,968

73,270

--

9,976,327

2,007,432

--

--

3,319,158

526,564

--

--

--

--

--

--

232,776

288,774

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

7,369,708

22,435,153

9,169,939

3,777,596

2,637

9,042,094

327,050

22,415

436,532

15,127,326

2,040,372

89,134

52,172

229,262

118,075

--

--

1,099,763

146,285

--

--

4,357,656

792,294

1,262,933

--

16,485,968

8,847,509

--

--

--

--

--

--

--

--

--

--

--

--

--

--

263,040

--

--

--

--

--

--

728,676

38,386,669

6,869,574

591,564

9,605,079

203,580,710

40,881,985

7,054,698

Non-Current Liabilities Due to Affiliated Organizations Due to Component Units Due to Primary Government Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Other Liabilities Notes and Loans Payable Lease Purchase Obligations - External Lease Purchase Obligations - Component Units Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Net Other Post Employment Benefits Liability Net Pension Liability
Total Non-Current Liabilities TOTAL LIABILITIES

-- -- -- -- -- -- -- -- 15,733,671 -- -- -- -- -- -- 235,610 28,172,493 18,770,638 62,912,412 72,517,491

-- -- -- -- -- -- -- 5,235,273 78,794,002 326,202,403 -- -- -- -- -- 14,668,361 627,617,932 439,151,881 1,491,669,852 1,695,250,562

-- -- -- -- -- -- -- 963,164 20,333,595 213,117,609 -- -- -- -- -- 2,478,178 272,905,117 146,782,411 656,580,074 697,462,059

-- -- -- -- -- -- -- -- 33,524,503 -- -- -- -- -- -- 341,544 29,610,660 13,125,110 76,601,817 83,656,515

DEFERRED INFLOWS OF RESOURCES

$

4,403,777 $

59,496,438 $

30,490,378 $

4,171,145

148 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2018

NET POSITION Net Investment in Capital Assets Restricted for: Nonexpendable Expendable Capital Projects Higher Education Endowment Unrestricted (Deficit)
TOTAL NET POSITION

Georgia Highlands College

Georgia Institute of Technology

Georgia Southern University

Georgia Southwestern University

$

33,438,711 $

1,466,887,074 $

383,654,850 $

45,489,593

40,227 38,879
-- -- -- (41,743,492)

69,971,535 29,848,244
-- -- -- (700,931,659)

6,222,432 4,449,727
-- -- -- (328,501,484)

486,617 504,216
-- -- -- (35,879,452)

$

(8,225,675) $

865,775,194 $

65,825,525 $

10,600,974

2018 Annual Financial Report 149

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2018

Georgia State University Gordon State College

Kennesaw State University

Middle Georgia State University

ASSETS

Current Assets

Cash and Cash Equivalents

$

Cash and Cash Equivalents (Externally Restricted)

Short-term Investments

Short-term Investments (Externally Restricted)

Accounts Receivable, net

Federal Financial Assistance

State General Appropriations

Margin Allocation Funds

Affiliated Organizations

Component Units

Primary Government

Pledges and Contributions

Other

Notes Receivable, net

Due From Other Funds

Investment in Capital Leases - Primary Government

Investment in Capital Leases - Other

Inventories

Prepaid Items

Other Assets

Total Current Assets

Non-Current Assets Accounts Receivable, net Affiliated Organizations Component Units Primary Government Due From USO - Capital Liability Reserve Fund Due From Institution - Capital Liability Reserve Fund Pledges and Contributions Other Investments Notes Receivable, net Due From Other Funds Investment in Capital Leases - Primary Government Investment in Capital Leases - Other Other Assets Non-current Cash (Externally Restricted) Short-term Investments (Externally Restricted) Investments (Externally Restricted) Capital Assets, net
Total Non-Current Assets TOTAL ASSETS

DEFERRED OUTFLOWS OF RESOURCES

$

189,291,914 $
5,987,433 -- --
289,096 -- --
84,121 22,633,382
-- -- 35,108,884 -- --
-- -- 207,389 5,687,658 -- 259,289,877
-- -- --
1,414,211
-- -- -- -- 4,392,487 --
-- -- -- 515,788 -- 124,502 982,230,035 988,677,023 1,247,966,900
81,221,944 $

10,855,016 $
149,953 -- --
540,771 -- -- -- -- -- --
728,827 -- --
-- -- 516,400 182,220 -- 12,973,187

109,183,734 $
173,008 -- --
4,194,303 -- --
5,219,697 1,599,219
-- -- 11,562,554 -- --
-- -- 3,622,861 5,870,678 -- 141,426,054

8,722,683
-- -- --
38,186 -- --
159,557 -- -- --
3,031,889 -- --
-- -- 975,207 110,083 -- 13,037,605

-- -- --
355,150
-- -- -- -- -- --
-- -- -- -- -- -- 80,618,889 80,974,039 93,947,226
4,193,837 $

-- -- --
2,098,531
-- -- -- 204,358 561,540 --
-- -- -- -- -- 4,707,634 639,647,001 647,219,064 788,645,118
59,268,214 $

-- -- --
715,528
-- -- -- 1,911,022 -- --
-- -- -- -- -- 72,628 216,056,826 218,756,004 231,793,609
10,670,240

150 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2018

LIABILITIES Current Liabilities Accounts Payable Salaries Payable Benefits Payable Contracts Payable Retainage Payable Interest Payable (Added for SAO) Due to Affiliated Organizations Due to Component Units Due to Primary Government Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Deposits Deposits Held for Other Organizations Other Liabilities Notes and Loans Payable Lease Purchase Obligations - External Lease Purchase Obligations - Component Units Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities

Georgia State University Gordon State College

Kennesaw State University

Middle Georgia State University

$

23,243,376 $

3,548,887

6,911,798

--

3,262,911

--

--

2,546,660

--

--

--

28,780,646

33,335

2,582,248

296,741

--

1,936,730

7,127,637

--

--

--

--

--

12,544,604

92,815,573

525,832 $ 168,104
75,409 -- -- -- -- -- -- -- --
674,621 95,375
228,564 -- -- --
1,440,693 -- -- -- -- --
588,104 3,796,702

11,670,658 $ 2,135,664 671,312 99,181 440,221 -- 211,095 346,542 -- -- --
19,504,017 1,061,228 1,892,273 282,807 -- 1,218,216 9,234,713 -- -- -- -- -- 8,736,251
57,504,178

350,549 383,021 109,222
34,206 -- -- -- -- -- -- --
2,613,639 1,398,768
825,010 -- -- --
2,458,677 -- -- -- -- --
1,514,903 9,687,995

Non-Current Liabilities Due to Affiliated Organizations Due to Component Units Due to Primary Government Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Other Liabilities Notes and Loans Payable Lease Purchase Obligations - External Lease Purchase Obligations - Component Units Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Net Other Post Employment Benefits Liability Net Pension Liability
Total Non-Current Liabilities TOTAL LIABILITIES

-- -- -- -- -- -- -- -- 32,082,827 187,102,773 -- -- -- -- -- 8,319,032 432,921,805 305,027,775 965,454,212 1,058,269,785

-- -- -- -- -- -- -- -- -- 37,379,413 -- -- -- -- -- 186,537 21,644,451 17,062,758 76,273,159 80,069,861

-- -- -- -- -- -- -- -- 52,813,244 219,778,178 -- -- -- -- -- 2,822,257 246,184,631 167,382,940 688,981,250 746,485,428

-- -- -- -- -- -- -- -- -- 84,181,447 -- -- -- -- -- 759,169 59,915,466 39,942,663 184,798,745 194,486,740

DEFERRED INFLOWS OF RESOURCES

$

72,367,249 $

4,977,385 $

79,518,373 $

12,675,722

2018 Annual Financial Report 151

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2018

NET POSITION Net Investment in Capital Assets Restricted for: Nonexpendable Expendable Capital Projects Higher Education Endowment Unrestricted (Deficit)
TOTAL NET POSITION

Georgia State University Gordon State College

Kennesaw State University

Middle Georgia State University

$

735,167,675 $

39,915,697 $

296,117,362 $

123,740,995

112,042 22,642,917
-- -- -- (559,370,824)

-- 7,349
-- -- -- (26,829,229)

4,627,307 1,497,759
-- -- -- (280,332,897)

25,489 43,198
-- -- -- (88,508,295)

$

198,551,810 $

13,093,817 $

21,909,531 $

35,301,387

152 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2018

Savannah State University

South Georgia State College

University of Georgia

University of North Georgia

ASSETS

Current Assets

Cash and Cash Equivalents

$

Cash and Cash Equivalents (Externally Restricted)

Short-term Investments

Short-term Investments (Externally Restricted)

Accounts Receivable, net

Federal Financial Assistance

State General Appropriations

Margin Allocation Funds

Affiliated Organizations

Component Units

Primary Government

Pledges and Contributions

Other

Notes Receivable, net

Due From Other Funds

Investment in Capital Leases - Primary Government

Investment in Capital Leases - Other

Inventories

Prepaid Items

Other Assets

Total Current Assets

Non-Current Assets Accounts Receivable, net Affiliated Organizations Component Units Primary Government Due From USO - Capital Liability Reserve Fund Due From Institution - Capital Liability Reserve Fund Pledges and Contributions Other Investments Notes Receivable, net Due From Other Funds Investment in Capital Leases - Primary Government Investment in Capital Leases - Other Other Assets Non-current Cash (Externally Restricted) Short-term Investments (Externally Restricted) Investments (Externally Restricted) Capital Assets, net
Total Non-Current Assets TOTAL ASSETS

DEFERRED OUTFLOWS OF RESOURCES

$

1,666,314 $
1,140,885 408,276 --
2,555,237 -- --
681,264 -- -- --
2,622,973 -- --
-- -- 66,572 89,109 -- 9,230,630
-- -- --
844,039
-- -- -- -- 732,966 --
-- -- -- 127,395 38,726 7,872,002 153,620,222 163,235,350 172,465,980
10,276,091 $

4,325,485 $
24,429 -- --
901,437 -- --
191,404 -- -- --
787,283 -- --
-- -- 257,709 520,040 -- 7,007,787

235,230,548 $
67,426,251 11,801,107
51,148
4,743,123 -- -- --
45,940,821 -- --
35,964,311 -- --
-- -- 5,532,395 5,024,625 -- 411,714,329

33,358,763
994,220 1,971,785
--
3,374,109 -- --
111,826 -- -- --
3,723,679 -- --
-- -- 1,403,721 123,001 -- 45,061,104

-- -- --
266,644
-- -- -- 78,563 49,272 --
-- -- 468,544 -- -- 431,446 48,759,364 50,053,833 57,061,620
4,041,305 $

-- -- --
1,552,532
-- -- -- 103,732,158 8,834,072 --
-- -- -- 9,184,107 -- 97,685,316 1,864,340,933 2,085,329,118 2,497,043,447
197,297,459 $

-- -- --
983,809
-- -- -- 5,053,807 1,205,707 --
-- -- -- 1,070,892 -- 1,465,472 286,116,745 295,896,432 340,957,536
46,072,421

2018 Annual Financial Report 153

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2018

LIABILITIES Current Liabilities Accounts Payable Salaries Payable Benefits Payable Contracts Payable Retainage Payable Interest Payable (Added for SAO) Due to Affiliated Organizations Due to Component Units Due to Primary Government Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Deposits Deposits Held for Other Organizations Other Liabilities Notes and Loans Payable Lease Purchase Obligations - External Lease Purchase Obligations - Component Units Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities

Savannah State University

South Georgia State College

University of Georgia

University of North Georgia

$

1,425,266 $

318,087

85,386

--

--

--

--

--

--

--

--

3,402,933

--

2,806,892

2,066

--

--

2,562,402

--

--

--

--

190,381

954,816

11,748,229

198,924 $ 115,679
28,472 -- -- -- -- -- -- -- --
543,018 17,730
284,793 328,735
-- -- -- -- -- -- -- -- 440,679 1,958,030

25,718,346 $ 13,705,101
-- 7,273,478 2,763,866
-- -- 692,665 -- -- -- 52,035,063 1,317,165 3,903,943 799,601 338,098 54,708 8,121,305 -- -- -- 178,500 -- 32,549,037 149,450,876

1,849,190 704,210 429,274 140,636 57,887 -- 304 -- -- -- --
6,915,703 995,566
1,140,789 36,737 -- --
4,021,729 -- -- -- -- --
2,973,928 19,265,953

Non-Current Liabilities Due to Affiliated Organizations Due to Component Units Due to Primary Government Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Other Liabilities Notes and Loans Payable Lease Purchase Obligations - External Lease Purchase Obligations - Component Units Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Net Other Post Employment Benefits Liability Net Pension Liability
Total Non-Current Liabilities TOTAL LIABILITIES

-- -- -- -- -- -- -- -- -- 92,563,057 -- -- -- -- -- 1,094,592 48,901,517 34,967,142 177,526,308 189,274,537

-- -- -- -- -- -- -- -- 34,291,483 -- -- -- -- -- -- 127,150 18,246,179 10,169,344 62,834,156 64,792,186

-- -- -- -- -- -- -- 1,422,134 26,334 231,616,246 -- -- -- 644,300 -- 16,979,735 1,016,303,379 699,803,870 1,966,795,998 2,116,246,874

-- -- -- -- -- -- -- -- -- 132,093,853 -- -- -- -- -- 2,339,906 130,614,399 92,422,208 357,470,366 376,736,319

DEFERRED INFLOWS OF RESOURCES

$

8,154,098 $

2,768,707 $

78,649,841 $

12,204,517

154 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2018

NET POSITION Net Investment in Capital Assets Restricted for: Nonexpendable Expendable Capital Projects Higher Education Endowment Unrestricted (Deficit)
TOTAL NET POSITION

Savannah State University

South Georgia State College

University of Georgia

University of North Georgia

$

54,563,192 $

15,698,147 $

1,614,484,996 $

154,308,600

7,832,124 1,075,503
-- -- -- (78,157,383)

311,490 193,657
-- -- -- (22,661,262)

91,810,334 91,368,953
-- -- -- (1,298,220,092)

2,669,514 2,409,431
-- -- -- (161,298,424)

$

(14,686,564) $

(6,457,968) $

499,444,191 $

(1,910,879)

2018 Annual Financial Report 155

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2018

ASSETS Current Assets Cash and Cash Equivalents Cash and Cash Equivalents (Externally Restricted) Short-term Investments Short-term Investments (Externally Restricted) Accounts Receivable, net Federal Financial Assistance State General Appropriations Margin Allocation Funds Affiliated Organizations Component Units Primary Government Pledges and Contributions Other Notes Receivable, net Due From Other Funds Investment in Capital Leases - Primary Government Investment in Capital Leases - Other Inventories Prepaid Items Other Assets Total Current Assets
Non-Current Assets Accounts Receivable, net Affiliated Organizations Component Units Primary Government Due From USO - Capital Liability Reserve Fund Due From Institution - Capital Liability Reserve Fund Pledges and Contributions Other Investments Notes Receivable, net Due From Other Funds Investment in Capital Leases - Primary Government Investment in Capital Leases - Other Other Assets Non-current Cash (Externally Restricted) Short-term Investments (Externally Restricted) Investments (Externally Restricted) Capital Assets, net
Total Non-Current Assets TOTAL ASSETS
DEFERRED OUTFLOWS OF RESOURCES

University of West Georgia

Valdosta State University

University System Office

$

52,821,835 $

35,088,948 $

713,226,001

1,875,294

295,101

3,983,913

--

--

298,838,266

--

--

--

952,614 -- --
87,620 -- -- --
4,826,229 -- -- -- --
1,219,632 1,889,354
-- 63,672,578

7,935,388 -- --
262,757 -- -- --
1,830,867 -- -- -- --
15,995 141,312
-- 45,570,368

910,591 -- --
32,022 -- -- --
121,133,455 146,285 -- -- -- 518,308 572,823
2,389,105 1,141,750,769

-- -- -- 1,357,248 -- -- -- -- 3,013,926 -- -- -- -- 877,965 -- -- 289,700,566 294,949,705 358,622,283

-- -- -- 1,252,123 -- -- -- -- 36,959 -- -- -- -- 32,789 -- 8,750,674 298,941,789 309,014,334 354,584,702

-- -- -- -- -- -- -- -- 963,164 -- -- -- -- -- -- 10,507,122 497,109,190 508,579,476 1,650,330,245

$

39,030,585 $

19,380,986 $

17,433,101

156 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2018

LIABILITIES Current Liabilities Accounts Payable Salaries Payable Benefits Payable Contracts Payable Retainage Payable Interest Payable (Added for SAO) Due to Affiliated Organizations Due to Component Units Due to Primary Government Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Deposits Deposits Held for Other Organizations Other Liabilities Notes and Loans Payable Lease Purchase Obligations - External Lease Purchase Obligations - Component Units Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities
Non-Current Liabilities Due to Affiliated Organizations Due to Component Units Due to Primary Government Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Other Liabilities Notes and Loans Payable Lease Purchase Obligations - External Lease Purchase Obligations - Component Units Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Net Other Post Employment Benefits Liability Net Pension Liability
Total Non-Current Liabilities TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES

University of West Georgia

Valdosta State University

University System Office

$

5,996,302 $

2,877,465 $

14,280,247

803,058

611,549

207,009

1,252,429

906,850

33,467,179

500,407

--

--

143,261

104,498

35,973

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

5,524,645

4,885,344

1,323,056

--

579,784

--

648,257

1,919,602

802,026,583

62,672

877

--

--

--

--

1,417,033

503,095

2,452,526

2,778,376

4,968,838

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

3,106,287

2,351,482

3,030,993

22,232,727

19,709,384

856,823,566

-- -- -- -- -- -- -- -- 40,357,005 119,217,342 -- -- -- -- -- 1,721,638 127,192,454 79,587,691 368,076,130 390,308,857

-- -- -- -- -- -- -- -- 4,021,750 161,987,845 -- -- -- -- -- 1,503,332 105,742,575 56,823,427 330,078,929 349,788,313

-- -- -- -- -- -- -- -- 36,949,378 -- -- -- -- -- -- 1,858,334 44,442,997 52,468,368 135,719,077 992,542,643

$

9,554,982 $

23,056,037 $

523,111,051

2018 Annual Financial Report 157

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2018

NET POSITION Net Investment in Capital Assets Restricted for: Nonexpendable Expendable Capital Projects Higher Education Endowment Unrestricted (Deficit)
TOTAL NET POSITION

University of West Georgia

Valdosta State University

University System Office

$

127,097,271 $

126,202,268 $

286,158,972

-- 5,026,493
-- -- -- (134,334,735)

4,535,787 4,558,323
-- -- -- (134,175,040)

3,612,043 11,732,523
-- -- -- (149,393,886)

$

(2,210,971) $

1,121,338 $

152,109,652

158 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2018

ASSETS Current Assets Cash and Cash Equivalents Cash and Cash Equivalents (Externally Restricted) Short-term Investments Short-term Investments (Externally Restricted) Accounts Receivable, net Federal Financial Assistance State General Appropriations Margin Allocation Funds Affiliated Organizations Component Units Primary Government Pledges and Contributions Other Notes Receivable, net Due From Other Funds Investment in Capital Leases - Primary Government Investment in Capital Leases - Other Inventories Prepaid Items Other Assets Total Current Assets
Non-Current Assets Accounts Receivable, net Affiliated Organizations Component Units Primary Government Due From USO - Capital Liability Reserve Fund Due From Institution - Capital Liability Reserve Fund Pledges and Contributions Other Investments Notes Receivable, net Due From Other Funds Investment in Capital Leases - Primary Government Investment in Capital Leases - Other Other Assets Non-current Cash (Externally Restricted) Short-term Investments (Externally Restricted) Investments (Externally Restricted) Capital Assets, net
Total Non-Current Assets TOTAL ASSETS
DEFERRED OUTFLOWS OF RESOURCES

Preliminary Total

Elimination/ Consolidation Entries

Consolidated Total

$

1,821,764,196 $

213,067,505

313,138,382

537,765

70,473,727 -- --
12,681,594 216,911,224
-- -- 316,808,975 146,285 -- -- -- 22,991,105 68,766,262 2,389,105 3,059,676,125

(476,640,987) $ --
(246,681,026) --
-- -- -- -- -- -- -- (45,414,679) (146,285) -- -- -- -- -- 2,044,332 (766,838,645)

1,345,123,209 213,067,505 66,457,356 537,765
70,473,727 -- --
12,681,594 216,911,224
-- -- 271,394,296 -- -- -- -- 22,991,105 68,766,262 4,433,437 2,292,837,480

3,561,255 2,596,400
-- 20,767,719
-- -- -- 197,905,258 38,971,461 -- -- -- 468,544 11,970,725 38,726 243,981,033 9,878,403,906 10,398,665,027 13,458,341,152

$

900,419,269 $

-- -- -- (20,767,719) -- -- -- -- (963,164) -- -- -- (3) -- -- -- -- (21,730,886) (788,569,531)
(26,564,289) $

3,561,255 2,596,400
-- -- -- -- -- 197,905,258 38,008,297 -- -- -- 468,541 11,970,725 38,726 243,981,033 9,878,403,906 10,376,934,141 12,669,771,621
873,854,980

2018 Annual Financial Report 159

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2018

LIABILITIES Current Liabilities Accounts Payable Salaries Payable Benefits Payable Contracts Payable Retainage Payable Interest Payable (Added for SAO) Due to Affiliated Organizations Due to Component Units Due to Primary Government Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Deposits Deposits Held for Other Organizations Other Liabilities Notes and Loans Payable Lease Purchase Obligations - External Lease Purchase Obligations - Component Units Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities
Non-Current Liabilities Due to Affiliated Organizations Due to Component Units Due to Primary Government Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Other Liabilities Notes and Loans Payable Lease Purchase Obligations - External Lease Purchase Obligations - Component Units Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Net Other Post Employment Benefits Liability Net Pension Liability
Total Non-Current Liabilities TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES
160 University System of Georgia

Preliminary Total

Elimination/ Consolidation Entries

Consolidated Total

$

206,725,289 $

34,234,924

53,986,945

23,128,430

11,775,797

--

2,353,421

8,218,847

--

--

321,895

238,360,759

16,650,806

849,893,989

3,219,540

1,584,146

22,511,200

80,500,006

--

--

--

441,540

800,662

149,723,938

1,704,432,134

(45,578,682) $ -- -- -- --
656,599 -- -- -- --
(321,895) -- --
(744,060,451) (199,982) (146,285)
2,196,126 (2,196,126)
-- -- -- -- -- -- (789,650,696)

161,146,607 34,234,924 53,986,945 23,128,430 11,775,797 656,599 2,353,421 8,218,847 -- -- --
238,360,759 16,650,806
105,833,538 3,019,558 1,437,861
24,707,326 78,303,880
-- -- -- 441,540 800,662 149,723,938 914,781,438

-- -- -- -- -- -- -- 7,620,571 528,480,832 2,282,138,656 -- -- -- 644,300 1,005,250 79,296,531 4,219,725,872 2,865,433,724 9,984,345,736 11,688,777,870

$

1,065,067,171 $

-- -- -- -- -- -- -- (963,164) (19,442,850) 19,442,850 -- -- -- -- -- -- -- -- (963,164) (790,613,860)
(26,118,039) $

-- -- -- -- -- -- -- 6,657,407 509,037,982 2,301,581,506 -- -- -- 644,300 1,005,250 79,296,531 4,219,725,872 2,865,433,724 9,983,382,572 10,898,164,010
1,038,949,132

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2018

NET POSITION Net Investment in Capital Assets Restricted for: Nonexpendable Expendable Capital Projects Higher Education Endowment Unrestricted (Deficit)
TOTAL NET POSITION

Preliminary Total

Elimination/ Consolidation Entries

Consolidated Total

$

6,666,852,110 $

--$

6,666,852,110

204,781,419 218,195,579
-- -- -- (5,484,913,728)

-- (218,195,579)
11,658,263 186,070,195
20,467,121 1,598,079

204,781,419 --
11,658,263 186,070,195
20,467,121 (5,483,315,649)

$

1,604,915,380 $

1,598,079 $

1,606,513,459

2018 Annual Financial Report 161

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY INSTITUTION FOR FISCAL YEAR ENDED JUNE 30, 2018 (Unaudited)

OPERATING REVENUES Student Tuition and Fees (net) Federal Appropriations Grants and Contracts Federal State Other Sales and Services Rents and Royalties Auxiliary Enterprises Residence Halls Bookstore Food Services Parking/Transportation Health Services Intercollegiate Athletics Other Organizations Gifts and Contributions Endowment Income Other Operating Revenues
Total Operating Revenues
OPERATING EXPENSES Faculty Salaries Staff Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses
Operating Income (Loss)

Abraham Baldwin Agricultural College

Albany State University

Atlanta Metropolitan State College

Augusta University

$

12,856,650 $

18,500,136 $

--

--

5,036,451 $ --

93,857,633 --

286,078 1,231,481
70,469 154,021 135,694

8,727,846 1,174,740 1,912,960
265,660 7,768

2,470,715 97,899 37,823 6,552
148,756

56,886,393 249,251,459 194,971,205
9,949,193 351,580

2,229,539 2,476,983 2,955,698
259,647 425,159 550,257 332,192
-- -- 1,029,675

11,927,280 240,597
6,177,962 347,387 348,538
1,790,468 570,118 -- -- 509,580

-- 68,831 42,314
-- -- 301,135 11,261 -- -- 276,436

3,885,170 1,571,511 1,747,076 3,224,433 2,624,941 3,152,835 4,321,021
-- -- 255,719

24,993,543

52,501,040

8,498,173

626,050,169

10,899,773 12,998,086 10,187,148
261,874 485,341 7,696,465 1,638,881 15,133,271 4,710,143

17,815,097 25,447,447 16,154,344
515,114 589,977 8,626,863 4,020,162 24,333,115 9,851,395

4,118,378 8,806,730 4,907,060
126,794 114,694 3,003,377 938,653 3,291,597 1,029,845

185,168,284 259,122,629 159,263,285
529,034 4,289,898 9,498,208 11,999,032 227,836,534 28,110,779

64,010,982

107,353,514

26,337,128

885,817,683

$

(39,017,439) $

(54,852,474) $

(17,838,955) $

(259,767,514)

162 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY INSTITUTION FOR FISCAL YEAR ENDED JUNE 30, 2018 (Unaudited)

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)

Abraham Baldwin Agricultural College

Albany State University

Atlanta Metropolitan State College

Augusta University

$

24,770,790 $

35,730,522 $

10,649,511 $

225,140,575

12,868,081 45,623
581,040 665,093
97,284 (1,125,978)
(390,770)

18,752,235 --
2,586 2,134,666
79,986 (6,099,497)
(121,776)

5,163,679 -- --
860,148 --
(524,287) (52,566)

10,160,620 --
10,138,215 14,605,305
1,973,790 (2,015,506) (3,049,805)

Net Nonoperating Revenues

37,511,163

50,478,722

16,096,485

256,953,194

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

(1,506,276)

(4,373,752)

(1,742,470)

(2,814,320)

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item

-- 1,120,732
-- -- --

-- 25,080,847
100,000 -- --

-- 8,040,995
-- -- --

-- 31,495,205
20,000 -- --

Total Other Revenues, Expenses, Gains or Losses

1,120,732

25,180,847

8,040,995

31,515,205

Change in Net Position Net Position, Beginning of Year, Restated

(385,544) 31,518,811

20,807,095 (17,445,223)

6,298,525 (5,074,991)

28,700,885 (261,767,176)

Net Position, End of Year

$

31,133,267 $

3,361,872 $

1,223,534 $

(233,066,291)

2018 Annual Financial Report 163

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY INSTITUTION FOR FISCAL YEAR ENDED JUNE 30, 2018 (Unaudited)

OPERATING REVENUES Student Tuition and Fees (net) Federal Appropriations Grants and Contracts Federal State Other Sales and Services Rents and Royalties Auxiliary Enterprises Residence Halls Bookstore Food Services Parking/Transportation Health Services Intercollegiate Athletics Other Organizations Gifts and Contributions Endowment Income Other Operating Revenues
Total Operating Revenues
OPERATING EXPENSES Faculty Salaries Staff Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses
Operating Income (Loss)

Clayton State University

College of Coastal Georgia

Columbus State University

Dalton State College

$

26,147,493 $

--

7,452,994 $ --

45,974,126 $ --

9,812,800 --

1,497,242 30,584
239,267 1,732,926
25,591

20,002 -- --
27,247 3,032

1,897,036 56,147
224,006 3,775,475
42,637

-- 121,908 1,330,633
18,525 --

7,322,511 2,766,162
398,368 509,018 680,227 2,332,636 376,513
-- -- 597,344

963,272 310,618 1,992,701
-- -- 1,172,482 1,028,517 -- -- 185,471

4,082,306 440,101 504,408
1,474,066 672,674
2,732,421 329,370 -- -- 691,398

420,932 304,416 736,994 619,371 287,447 997,369 475,389
-- -- 315,498

44,655,882

13,156,336

62,896,171

15,441,282

20,215,035 21,569,019 15,177,078
238,087 398,652 9,127,747 2,711,990 14,440,662 6,095,009

8,831,185 9,209,651 6,291,418
73,533 267,470 3,134,357 910,831 7,279,633 2,982,013

26,740,885 30,975,041 21,695,991
359,647 797,813 11,211,320 3,910,658 23,525,912 5,325,860

11,323,810 8,759,856 8,568,247 157,673 281,360 5,622,650 840,446 6,923,871 2,004,163

89,973,279

38,980,091

124,543,127

44,482,076

$

(45,317,397) $

(25,823,755) $

(61,646,956) $

(29,040,794)

164 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY INSTITUTION FOR FISCAL YEAR ENDED JUNE 30, 2018 (Unaudited)

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)

Clayton State University

College of Coastal Georgia

Columbus State University

Dalton State College

$

25,534,925 $

15,280,604 $

41,002,242 $

16,867,093

18,345,513 --
511,042 786,881 111,433 (2,948,408) 124,246

7,093,774 54,594
1,095,722 352,593 22,123 (601,289) 18,968

15,508,384 --
3,645,095 137,138 379,790
(2,375,307) (11,164)

11,543,786 -- --
1,064,216 6,767
(315,780) (33,266)

Net Nonoperating Revenues

42,465,632

23,317,089

58,286,178

29,132,816

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

(2,851,765)

(2,506,666)

(3,360,778)

92,022

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item

-- 1,613,973
-- -- --

-- 103,909
-- -- --

-- 1,121,279
28,500 -- --

-- 19,801 509,042
-- --

Total Other Revenues, Expenses, Gains or Losses

1,613,973

103,909

1,149,779

528,843

Change in Net Position Net Position, Beginning of Year, Restated

(1,237,792) (19,705,726)

(2,402,757) 30,125,695

(2,210,999) (21,379,650)

620,865 1,653,986

Net Position, End of Year

$

(20,943,518) $

27,722,938 $

(23,590,649) $

2,274,851

2018 Annual Financial Report 165

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY INSTITUTION FOR FISCAL YEAR ENDED JUNE 30, 2018 (Unaudited)

OPERATING REVENUES Student Tuition and Fees (net) Federal Appropriations Grants and Contracts Federal State Other Sales and Services Rents and Royalties Auxiliary Enterprises Residence Halls Bookstore Food Services Parking/Transportation Health Services Intercollegiate Athletics Other Organizations Gifts and Contributions Endowment Income Other Operating Revenues
Total Operating Revenues
OPERATING EXPENSES Faculty Salaries Staff Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses
Operating Income (Loss)

East Georgia State College

Fort Valley State Univesity

Georgia College & State University

Georgia Gwinnett College

$

4,096,626 $

8,058,541 $

58,669,401 $

34,913,213

--

5,624,558

--

--

90,755 221,735
5,250 1,470 1,489

550,360 50,049 33,043
309,919 270,271

436,349 60,317 51,745
2,665,498 85,012

355,489 212,384 550,042 198,920
20,483

557,094 99,378
1,163,029 215,090 66,548 609,480 4,166 -- -- 94,132

7,524,903 43,999
4,594,507 202,218 377,842
1,542,870 1,073,645
-- -- 562,435

14,575,794 1,179,702 7,617,953 1,613,729 -- 2,418,077 324,100 -- -- 405,788

7,820,239 771,778 841,177
2,579,790 666,644
4,060,136 229,622 -- -- 323,790

7,226,242

30,819,160

90,103,465

53,543,707

5,156,419 5,854,580 5,056,032
83,103 132,915 4,472,211 576,869 3,941,171 856,496

9,286,875 20,228,591 10,934,740
595,598 973,805 4,891,264 4,338,801 20,940,389 6,357,597

29,450,286 34,192,834 26,434,560
312,520 1,341,618 3,058,703 3,383,616 36,378,887 9,258,870

39,689,450 25,678,286 23,877,426
400,211 689,376 12,136,878 2,594,106 19,344,514 8,637,290

26,129,796

78,547,660

143,811,894

133,047,537

$

(18,903,554) $

(47,728,500) $

(53,708,429) $

(79,503,830)

166 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY INSTITUTION FOR FISCAL YEAR ENDED JUNE 30, 2018 (Unaudited)

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)

East Georgia State College

Fort Valley State Univesity

Georgia College & State University

Georgia Gwinnett College

$

9,237,733 $

23,075,207 $

40,028,859 $

56,374,528

8,323,618 53,017
321,871 555,246
11,972 (146)
(4,774)

24,893,326 550
821,515 551,929
6,442 (2,976,721)
184,020

7,126,821 202,047
1,750,141 820,408 806,881
(6,142,237) (36,727)

32,794,988 -- --
160,541 154,063 (8,159,184)
28,764

Net Nonoperating Revenues

18,498,537

46,556,268

44,556,193

81,353,700

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

(405,017)

(1,172,232)

(9,152,236)

1,849,870

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item

-- 808,696
-- -- --

155,488 3,011,134
-- -- --

-- 10,670,162
959,013 6,395 --

-- 251,701 697,702
-- 116,656

Total Other Revenues, Expenses, Gains or Losses

808,696

3,166,622

11,635,570

1,066,059

Change in Net Position Net Position, Beginning of Year, Restated

403,679 2,390,038

1,994,390 (1,791,576)

2,483,334 (41,640,726)

2,915,929 19,802,946

Net Position, End of Year

$

2,793,717 $

202,814 $

(39,157,392) $

22,718,875

2018 Annual Financial Report 167

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY INSTITUTION FOR FISCAL YEAR ENDED JUNE 30, 2018 (Unaudited)

OPERATING REVENUES Student Tuition and Fees (net) Federal Appropriations Grants and Contracts Federal State Other Sales and Services Rents and Royalties Auxiliary Enterprises Residence Halls Bookstore Food Services Parking/Transportation Health Services Intercollegiate Athletics Other Organizations Gifts and Contributions Endowment Income Other Operating Revenues
Total Operating Revenues
OPERATING EXPENSES Faculty Salaries Staff Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses
Operating Income (Loss)

Georgia Highlands College

Georgia Institute of Technology

Georgia Southern University

Georgia Southwestern University

$

12,721,877 $

369,856,163 $

150,017,841 $

12,923,287

--

--

--

--

403,276 313,013 382,790 330,089 127,133

613,088,605 8,128,923
247,095,986 41,222,226 320,481

6,833,485 483,077
12,053,469 3,951,309 249,830

347,481 215,144 2,096,830
59,067 27,644

-- 208,597
350 121,034
-- 1,205,387
247,609 -- --
299,426

78,416,871 2,123,508 3,691,759
19,481,289 11,377,704
-- 1,998,981
-- -- 9,727,043

34,402,927 9,984,063
24,329,302 4,448,758 4,547,552
19,715,292 2,603,889 -- -- 3,611,792

4,366,509 1,087,405 2,795,753
72,276 348,650 1,002,281 375,632
-- -- 225,521

16,360,581

1,406,529,539

277,232,586

25,943,480

9,750,784 10,001,083
7,080,906 128,219 292,319
6,745,109 1,415,827 8,759,108 1,848,449

443,337,865 382,938,825 240,952,557
677,900 28,814,018 17,994,648 31,242,530 415,752,971 99,006,038

90,881,499 116,691,529
80,749,051 1,176,413 4,115,812
27,502,162 14,394,136 107,249,462 34,279,322

9,790,494 9,348,400 8,001,535
183,750 318,914 2,890,535 1,870,706 11,179,567 3,484,246

46,021,804

1,660,717,352

477,039,386

47,068,147

$

(29,661,223) $

(254,187,813) $

(199,806,800) $

(21,124,667)

168 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY INSTITUTION FOR FISCAL YEAR ENDED JUNE 30, 2018 (Unaudited)

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)

Georgia Highlands College

Georgia Institute of Technology

Georgia Southern University

Georgia Southwestern University

$

17,528,243 $

291,283,120 $

133,567,038 $

12,879,048

11,867,161 -- --
270,068 2,551
(898,615) --

12,545,724 -- --
1,498,581 20,468,916 (24,133,749)
6,900,438

45,445,425 -- --
7,282,379 1,008,057 (10,783,644) (406,583)

5,244,613 -- --
1,088,612 114,998
(1,667,764) --

Net Nonoperating Revenues

28,769,408

308,563,030

176,112,672

17,659,507

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

(891,815)

54,375,217

(23,694,128)

(3,465,160)

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item

-- 412,621
-- -- --

-- 8,360,630
140,907 322,447 (21,437,060)

-- 8,790,657
268,768 --
1,425,076

-- 236,190
-- -- --

Total Other Revenues, Expenses, Gains or Losses

412,621

(12,613,076)

10,484,501

236,190

Change in Net Position Net Position, Beginning of Year, Restated

(479,194) (7,746,481)

41,762,141 824,013,053

(13,209,627) 79,035,152

(3,228,970) 13,829,944

Net Position, End of Year

$

(8,225,675) $

865,775,194 $

65,825,525 $

10,600,974

2018 Annual Financial Report 169

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY INSTITUTION FOR FISCAL YEAR ENDED JUNE 30, 2018 (Unaudited)

OPERATING REVENUES Student Tuition and Fees (net) Federal Appropriations Grants and Contracts Federal State Other Sales and Services Rents and Royalties Auxiliary Enterprises Residence Halls Bookstore Food Services Parking/Transportation Health Services Intercollegiate Athletics Other Organizations Gifts and Contributions Endowment Income Other Operating Revenues
Total Operating Revenues
OPERATING EXPENSES Faculty Salaries Staff Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses
Operating Income (Loss)

Georgia State University Gordon State College

Kennesaw State University

Middle Georgia State University

$

296,775,566 $

--

6,233,502 $ --

199,435,290 $ --

22,728,077 --

82,873,514 10,882,423 55,971,389 24,016,699
177,701

107,906 136,766
4,291 118,415 111,735

1,740,727 564,928 374,293
14,560,244 1,543,310

12,678 11,575
281 982,238 193,777

18,081,307 1,684,311
17,455,763 8,786,936 3,525,000
19,338,612 6,928,142 -- -- 1,757,986

5,308,136 2,105,028 2,609,748
91,287 115,924 673,223
67,971 -- --
140,643

16,623,733 13,110,592 23,163,050 10,782,630
3,505,173 15,522,822
6,327,609 -- --
431,777

7,595,067 2,880,292 3,241,867
196,262 251,694 1,622,836 557,078
-- -- 888,410

548,255,349

17,824,575

307,686,178

41,162,132

203,276,295 249,038,686 144,876,807
2,259,937 7,016,091 60,154,443 20,863,659 189,638,364 54,179,977

931,304,259

$

(383,048,910) $

9,108,403 7,459,458 6,283,205
79,196 267,914 3,217,195 1,622,696 9,726,747 3,208,039
40,972,853
(23,148,278) $

115,043,096 127,159,301
84,830,407 1,840,126 3,814,479
30,119,620 10,250,657 99,626,043 32,138,956
504,822,685
(197,136,507) $

22,724,560 19,532,955 16,547,812
227,350 615,716 8,057,478 3,180,913 22,664,518 7,692,671
101,243,973
(60,081,841)

170 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY INSTITUTION FOR FISCAL YEAR ENDED JUNE 30, 2018 (Unaudited)

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)

Georgia State University Gordon State College

Kennesaw State University

Middle Georgia State University

$

267,904,773 $

13,278,209 $

138,475,446 $

33,362,424

104,969,524 --
4,441,703 1,449,864 2,669,139 (12,107,964)
291,197

9,645,054 -- --
332,541 104,324 (1,970,035)
(23)

63,675,135 400,139
3,804,348 4,456,119
915,610 (15,222,081)
(25,044)

15,945,154 1,067,371 558,722 4,581,278 185,320 (4,619,236) 276,137

Net Nonoperating Revenues

369,618,236

21,390,070

196,479,672

51,357,170

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

(13,430,674)

(1,758,208)

(656,835)

(8,724,671)

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item

-- 15,915,107
7,383,324 --
2,143,660

-- 130,282 150,000
-- --

-- 22,073,032
4,701,096 -- --

-- 4,551,792
12,650 --
(12,533,158)

Total Other Revenues, Expenses, Gains or Losses

25,442,091

280,282

26,774,128

(7,968,716)

Change in Net Position Net Position, Beginning of Year, Restated

12,011,417 186,540,393

(1,477,926) 14,571,743

26,117,293 (4,207,762)

(16,693,387) 51,994,774

Net Position, End of Year

$

198,551,810 $

13,093,817 $

21,909,531 $

35,301,387

2018 Annual Financial Report 171

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY INSTITUTION FOR FISCAL YEAR ENDED JUNE 30, 2018 (Unaudited)

OPERATING REVENUES Student Tuition and Fees (net) Federal Appropriations Grants and Contracts Federal State Other Sales and Services Rents and Royalties Auxiliary Enterprises Residence Halls Bookstore Food Services Parking/Transportation Health Services Intercollegiate Athletics Other Organizations Gifts and Contributions Endowment Income Other Operating Revenues
Total Operating Revenues
OPERATING EXPENSES Faculty Salaries Staff Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses
Operating Income (Loss)

Savannah State University

South Georgia State College

University of Georgia

University of North Georgia

$

11,973,674 $

--

3,399,790 $ --

464,530,471 $ 14,921,506

75,232,843 --

9,469,336 104,591 516,288 841,524 48,320

15,319 5,400 --
20,721 8,632

125,577,562 29,171,147 77,970,277 85,654,546 526,836

-- -- -- 2,810,244 141,632

15,207,654 205,605
8,847,869 1,140,336
578,304 4,095,075
97,627 -- --
536,350

1,141,084 1,075,680
769,170 6,538 --
450,799 79,109 -- --
147,788

56,341,916 5,612,221
52,926,223 23,328,666 23,639,184 35,470,488
677,008 -- --
1,519,009

9,831,394 6,033,060 9,033,440 5,320,481
949,755 3,307,966
60,278 -- --
1,464,360

53,662,553

7,120,030

997,867,060

114,185,453

15,672,083 20,767,559 15,113,201
478,017 909,428 6,941,560 3,922,108 26,839,954 7,495,697

4,744,566 5,093,269 3,586,005
335,774 282,857 3,300,558 1,331,381 5,625,497 2,351,605

246,654,366 544,052,732 302,667,640
764,045 20,393,325 39,584,193 36,183,284 281,319,752 91,090,428

50,627,097 52,580,763 44,326,589
597,916 2,069,795 14,462,449 4,801,397 42,354,114 15,461,539

98,139,607

26,651,512

1,562,709,765

227,281,659

$

(44,477,054) $

(19,531,482) $

(564,842,705) $

(113,096,206)

172 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY INSTITUTION FOR FISCAL YEAR ENDED JUNE 30, 2018 (Unaudited)

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)

Savannah State University

South Georgia State College

University of Georgia

University of North Georgia

$

24,139,345 $

11,706,494 $

479,489,175 $

71,657,564

17,429,633 -- --
2,201,771 473,395
(4,778,323) (426,697)

6,945,512 --
77,612 562,824
25,845 (1,359,356)
258

32,373,460 11,460,394 44,517,904 33,007,317
9,850,979 (13,213,724) 12,792,764

29,976,705 266,947
3,341,633 1,811,373
158,661 (5,817,117)
(66,080)

Net Nonoperating Revenues

39,039,124

17,959,189

610,278,269

101,329,686

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

(5,437,930)

(1,572,293)

45,435,564

(11,766,520)

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item

-- 17,727,632
138,973 -- --

-- 461,873
54,900 10,000
--

-- 63,762,860
2,461,303 -- --

-- 34,414,075
-- -- --

Total Other Revenues, Expenses, Gains or Losses

17,866,605

526,773

66,224,163

34,414,075

Change in Net Position Net Position, Beginning of Year, Restated

12,428,675 (27,115,239)

(1,045,520) (5,412,448)

111,659,727 387,784,464

22,647,555 (24,558,434)

Net Position, End of Year

$

(14,686,564) $

(6,457,968) $

499,444,191 $

(1,910,879)

2018 Annual Financial Report 173

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY INSTITUTION FOR FISCAL YEAR ENDED JUNE 30, 2018 (Unaudited)

OPERATING REVENUES Student Tuition and Fees (net) Federal Appropriations Grants and Contracts Federal State Other Sales and Services Rents and Royalties Auxiliary Enterprises Residence Halls Bookstore Food Services Parking/Transportation Health Services Intercollegiate Athletics Other Organizations Gifts and Contributions Endowment Income Other Operating Revenues
Total Operating Revenues
OPERATING EXPENSES Faculty Salaries Staff Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses
Operating Income (Loss)

University of West Georgia

Valdosta State University

University System Office

$

78,473,230 $

60,277,840 $

--

--

137,100 --

1,378,916 500,619
1,508,630 610,857 122,218

1,718,227 42,985
1,342,273 901,723 934,656

187,231 --
103,045 53,524,244
86,899

19,135,160 2,689,974
11,747,964 1,813,189 2,194,379 6,920,703 540,493 -- -- 2,929,548

13,177,060 1,131,572 9,668,150 4,062,798 2,885,888 3,105,816 462,459 -- -- 496,574

9,983,778 -- -- -- -- -- -- -- --
460,357,457

130,565,880

100,208,021

524,379,754

45,868,115 55,652,471 43,577,350
670,641 1,716,666 10,752,246 4,083,500 47,013,498 14,690,562

37,115,392 35,402,207 27,254,293
2,094,196 1,313,642 15,069,692 6,059,710 33,692,458 17,034,365

-- 43,336,978 17,811,690
612 1,310,995
320,378 6,411,646 648,340,911 23,036,371

224,025,049

175,035,955

740,569,581

$

(93,459,169) $

(74,827,934) $

(216,189,827)

174 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY INSTITUTION FOR FISCAL YEAR ENDED JUNE 30, 2018 (Unaudited)

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

University of West Georgia

Valdosta State University

University System Office

$

59,326,040 $

49,104,734 $

187,097,423

26,200,897 -- --
2,027,218 860,050
(8,862,188) (165,289)

22,931,388 177,778 135,063
1,026,448 939,128
(4,400,624) (33,043)

7,384,395 44,629
15,867,159 1,694,749 3,757,285 (1,643,684)
(15,199,554)

79,386,728

69,880,872

199,002,402

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses
Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses
Change in Net Position Net Position, Beginning of Year, Restated
Net Position, End of Year

(14,072,441)

-- 482,912 194,566
-- --

677,478

(13,394,963) 11,183,992

$

(2,210,971) $

(4,947,062)
-- 3,850,565
126,009 4,773 --
3,981,347
(965,715) 2,087,053
1,121,338 $

(17,187,425)
-- 1,303,183 3,398,953
-- --
4,702,136
(12,485,289) 164,594,941
152,109,652

2018 Annual Financial Report 175

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY INSTITUTION FOR FISCAL YEAR ENDED JUNE 30, 2018 (Unaudited)

OPERATING REVENUES Student Tuition and Fees (net) Scholarship Allowance Federal Appropriations Grants and Contracts Federal State Other Sales and Services Rents and Royalties Auxiliary Enterprises Residence Halls Bookstore Food Services Parking/Transportation Health Services Intercollegiate Athletics Other Organizations Gifts and Contributions Endowment Income Other Operating Revenues
Total Operating Revenues
OPERATING EXPENSES Faculty Salaries Staff Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses
Operating Income (Loss)

Preliminary Total

Elimination/ Consolidation Entries

Consolidated Total

$

2,090,092,615 $

--

20,546,064

636,171,446 $ (636,171,446)
--

2,726,264,061 (636,171,446)
20,546,064

916,972,528 303,069,294 598,846,285 248,709,552
5,713,117

(7,193,187) (2,094,097)
(416,879) (41,976,388)
--

909,779,341 300,975,197 598,429,406 206,733,164
5,713,117

350,921,636 60,205,984
199,052,595 90,697,229 60,069,227
134,091,466 30,099,799 -- --
489,780,950

(15,745,680) -- -- -- -- -- -- -- --
(321,032,216)

335,175,956 60,205,984
199,052,595 90,697,229 60,069,227
134,091,466 30,099,799 -- --
168,748,734

5,598,868,341

(388,458,447)

5,210,409,894

1,673,290,092 2,141,898,966 1,352,206,377
15,167,280 83,614,890 329,592,309 185,498,195 2,353,152,520 492,217,725

8,626,638,354

$

(3,027,770,013) $

-- -- (312,097,230) -- -- -- -- (76,617,090) --
(388,714,320)
255,873 $

1,673,290,092 2,141,898,966 1,040,109,147
15,167,280 83,614,890 329,592,309 185,498,195 2,276,535,430 492,217,725
8,237,924,034
(3,027,514,140)

176 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY INSTITUTION FOR FISCAL YEAR ENDED JUNE 30, 2018 (Unaudited)

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

Preliminary Total

Elimination/ Consolidation Entries

Consolidated Total

$

2,314,491,665 $

2$

2,314,491,667

585,154,605 13,773,089 91,611,371 85,985,306 45,184,789
(144,762,444) 593,631

-- -- -- -- (66,761) 66,761 (2)

585,154,605 13,773,089 91,611,371 85,985,306 45,118,028
(144,695,683) 593,629

2,992,032,012

--

2,992,032,012

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses
Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses
Change in Net Position Net Position, Beginning of Year, Restated
Net Position, End of Year

(35,738,001)

155,488 265,811,845
21,345,706 343,615
(30,284,826)

257,371,828

221,633,827 1,383,281,553

$

1,604,915,380 $

255,873

(35,482,128)

-- -- -- -- --
--
255,873 1,342,206
1,598,079 $

155,488 265,811,845
21,345,706 343,615
(30,284,826)
257,371,828
221,889,700 1,384,623,759
1,606,513,459

2018 Annual Financial Report 177

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2018

ASSETS Current Assets Cash and Cash Equivalents Cash and Cash Equivalents (Externally Restricted) Short-term Investments Short-term Investments (Externally Restricted) Accounts Receivable, net Federal Financial Assistance State General Appropriations Margin Allocation Funds Related Parties Pledges and Contributions Other Notes Receivable, net Due From Other Funds Investment in Capital Leases Inventories Prepaid Items Other Assets Total Current Assets

Abraham Baldwin Agricultural College Foundation, Inc. &
Subsidiaries

Albany State University Foundation, Inc.

Armstrong State University Educational Properties Foundation,
Inc. & Subsidiaries

Armstrong State University Foundation,
Inc.

Atlanta Metropolitan State College Projects
Foundation, Inc.

Atlanta Metropolitan State College
Foundation, Inc.

$

3,123,832 $

1,726,150 $

1,696,490 $

3,301,802 $

--

2,491,242

--

--

--

--

511,772

--

--

--

--

--

-- -- -- -- -- 60,748 -- -- -- -- -- -- 3,184,580

-- -- -- -- 7,636 -- -- -- 1,727,985 -- -- -- 5,953,013

-- -- -- -- -- -- -- -- 1,271,270 -- -- -- 3,479,532

-- -- -- -- 443,510 -- -- -- -- -- -- -- 3,745,312

277,687 $ 364,263
-- --
-- -- -- -- -- -- -- -- -- -- -- -- 641,950

275,186 -- -- --
-- -- -- -- -- -- -- -- -- -- -- -- 275,186

Non-Current Assets Accounts Receivable, net Related Parties Due From USO - Capital Liability Reserve Fund Due From Institution - Capital Liability Reserve Fund Pledges and Contributions Other Investments Notes Receivable, net Due From Other Funds Investment in Capital Leases Other Assets Non-current Cash (Externally Restricted) Short-term Investments (Externally Restricted) Investments (Externally Restricted) Capital Assets, net Total Non-Current Assets
TOTAL ASSETS

-- -- -- -- -- 22,109,715 -- -- -- 237,925 -- -- -- 7,605,033 29,952,673 33,137,253

-- -- -- -- -- 2,729,381 -- -- 60,722,606 -- 10,871,129 -- -- 596 74,323,712 80,276,725

-- -- -- -- -- -- -- -- 36,773,381 -- 3,228,942 -- -- 2,784,948 42,787,271 46,266,803

-- -- -- 799,648 -- 10,337,990 -- -- -- -- -- -- -- -- 11,137,638 14,882,950

-- -- -- -- -- -- -- -- -- -- -- -- -- 8,745,684 8,745,684 9,387,634

-- -- -- -- -- 199,455 -- -- -- -- -- -- -- -- 199,455 474,641

DEFERRED OUTFLOWS OF RESOURCES

$

--$

--$

2,196,779 $

--$

--$

--

178 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2018

LIABILITIES Current Liabilities Accounts Payable Salaries Payable Benefits Payable Contracts Payable Retainage Payable Due to Related Parties Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Deposits Deposits Held for Other Organizations Other Liabilities Notes and Loans Payable Lease Purchase Obligations Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities

Abraham Baldwin Agricultural College Foundation, Inc. &
Subsidiaries

Albany State University Foundation, Inc.

Armstrong State University Educational Properties Foundation,
Inc. & Subsidiaries

Armstrong State University Foundation,
Inc.

Atlanta Metropolitan State College Projects
Foundation, Inc.

Atlanta Metropolitan State College
Foundation, Inc.

$

22,179 $

1,674,670 $

67,449 $

--$

--$

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

8,231,450

62,916

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

568,656

--

--

--

--

--

10,558

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

285,000

--

--

--

--

--

--

--

--

1,955,000

1,135,000

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

22,179

3,629,670

10,013,113

62,916

285,000

--

Non-Current Liabilities Due to Related Parties Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Other Liabilities Notes and Loans Payable Lease Purchase Obligations Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Net Other Post Employment Benefits Liability Net Pension Liability Total Non-Current Liabilities
TOTAL LIABILITIES

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

3,000,000

--

--

--

9,910,160

--

--

--

--

--

--

--

--

66,080,354

38,417,901

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

3,000,000

66,080,354

38,417,901

--

9,910,160

--

3,022,179

69,710,024

48,431,014

62,916

10,195,160

--

DEFERRED INFLOWS OF RESOURCES

--

--

32,568

--

--

--

NET POSITION Net Investment in Capital Assets Restricted for: Nonexpendable Expendable Unrestricted
TOTAL NET POSITION

4,605,033

596

9,559,578

1,846,644

6,183,450

1,031,007

9,767,013

7,688,454

$

30,115,074 $

10,566,701 $

--
-- -- -- --$

--
5,920,281 8,352,299
547,454 14,820,034 $

--
-- -- (807,526) (807,526) $

--
-- 142,661 331,980 474,641

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2018 Annual Financial Report 179

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2018

ASSETS Current Assets Cash and Cash Equivalents Cash and Cash Equivalents (Externally Restricted) Short-term Investments Short-term Investments (Externally Restricted) Accounts Receivable, net Federal Financial Assistance State General Appropriations Margin Allocation Funds Related Parties Pledges and Contributions Other Notes Receivable, net Due From Other Funds Investment in Capital Leases Inventories Prepaid Items Other Assets Total Current Assets

AU Health System Inc

Augusta University Foundation, Inc.

Augusta University Research Institute, Inc.

Augusta University College of Dental Medicine Faculty Practice Group d/b/a AU Dental Faculty Practice Group

Bainbridge State College Foundation

Clayton State University Foundation,
Inc.

$

62,015,768 $

4,196,045

37,961,738

3,671,699

-- -- -- 4,759,717 -- 149,885,409 -- -- 1,186,728 19,105,346 17,410,195 -- 300,192,645

3,599,289 $ 3,253,919 1,482,318
--
-- -- -- 443,489 156,166 52,991 -- -- 1,119,649 -- -- -- 10,107,821

4,381,937 $ -- -- --
4,154,994 -- --
7,500 -- -- -- -- -- -- -- --
8,544,431

1,356,247 $ -- -- --
-- -- -- 1,620,181 -- 55,421 -- -- -- -- 95,544 -- 3,127,393

21,522 $ -- -- --
-- -- -- -- -- -- -- -- -- -- -- -- 21,522

2,843,703 5,078,325
-- 456,391
-- -- -- -- 503,361 66,310 -- -- -- -- 10,226 -- 8,958,316

Non-Current Assets Accounts Receivable, net Related Parties Due From USO - Capital Liability Reserve Fund Due From Institution - Capital Liability Reserve Fund Pledges and Contributions Other Investments Notes Receivable, net Due From Other Funds Investment in Capital Leases Other Assets Non-current Cash (Externally Restricted) Short-term Investments (Externally Restricted) Investments (Externally Restricted) Capital Assets, net Total Non-Current Assets
TOTAL ASSETS

-- --
-- -- 14,966,249 108,259,000 -- -- 22,519,524 5,518,129 -- -- -- 256,138,375 407,401,277 707,593,922

-- --
-- 166,876
-- 8,065,133
-- -- 23,975,501 749,766 -- -- 20,046,067 -- 53,003,343 63,111,164

-- --
-- -- -- 4,198,751 -- -- -- -- -- -- -- -- 4,198,751 12,743,182

-- --
-- -- -- 15,142,808 -- -- -- -- -- -- -- -- 15,142,808 18,270,201

-- --
-- -- -- 2,369,878 -- -- -- -- -- -- -- -- 2,369,878 2,391,400

-- --
-- 323,106
-- 8,600,551
-- -- 56,435,768 -- -- -- 1,659,940 7,643,429 74,662,794 83,621,110

DEFERRED OUTFLOWS OF RESOURCES

$

--$

--$

--$

--$

--$

--

180 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2018

LIABILITIES Current Liabilities Accounts Payable Salaries Payable Benefits Payable Contracts Payable Retainage Payable Due to Related Parties Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Deposits Deposits Held for Other Organizations Other Liabilities Notes and Loans Payable Lease Purchase Obligations Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities

AU Health System Inc

Augusta University Foundation, Inc.

Augusta University Research Institute, Inc.

Augusta University College of Dental Medicine Faculty Practice Group d/b/a AU Dental Faculty Practice Group

Bainbridge State College Foundation

Clayton State University Foundation,
Inc.

$

42,051,559 $

11,655,786

--

--

--

35,855,763

--

--

--

--

--

7,850,066

3,254,167

5,469,281

2,945,000

--

--

--

--

19,392,373

128,473,995

467,473 $ -- -- -- --
606,865 -- --
49,561 -- -- -- -- --
960,000 -- -- -- -- --
2,083,899

37,255 $ -- -- -- --
4,161,470 -- -- -- -- --
18,536 -- -- -- -- -- -- -- --
4,217,261

15,037,312 $ -- -- -- --
679,661 -- -- -- -- -- -- -- -- -- -- -- -- -- --
15,716,973

--$ -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --

1,717,090 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
1,717,090

Non-Current Liabilities Due to Related Parties Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Other Liabilities Notes and Loans Payable Lease Purchase Obligations Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Net Other Post Employment Benefits Liability Net Pension Liability Total Non-Current Liabilities
TOTAL LIABILITIES

-- -- -- -- 16,348,297 60,595,833 17,777,061 129,102,958 -- 14,818,596 -- -- -- 6,165,679 -- 244,808,424 373,282,419

-- -- -- -- -- -- -- 23,118,925 -- -- -- -- -- -- -- 23,118,925 25,202,824

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 4,217,261

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 15,716,973

--

1,659,940

--

--

--

--

--

--

--

--

--

4,140,902

--

64,805,725

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

70,606,567

--

72,323,657

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

--

--

NET POSITION Net Investment in Capital Assets Restricted for: Nonexpendable Expendable Unrestricted
TOTAL NET POSITION

87,762,033

--

--

246,549,470

$

334,311,503 $

--
19,392,067 15,515,865
3,000,408 37,908,340 $

--
-- 69,973 8,455,948 8,525,921 $

--
-- -- 2,553,228 2,553,228 $

--
-- 2,391,400
-- 2,391,400 $

7,643,429
3,682,416 6,468,608 (6,497,000) 11,297,453

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2018 Annual Financial Report 181

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2018

ASSETS Current Assets Cash and Cash Equivalents Cash and Cash Equivalents (Externally Restricted) Short-term Investments Short-term Investments (Externally Restricted) Accounts Receivable, net Federal Financial Assistance State General Appropriations Margin Allocation Funds Related Parties Pledges and Contributions Other Notes Receivable, net Due From Other Funds Investment in Capital Leases Inventories Prepaid Items Other Assets Total Current Assets

College of Coastal Georgia Foundation,
Inc.

Columbus State University Alumni Association, Inc.

Columbus State University Athletic
Fund, Inc.

Columbus State University Foundation,
Inc.

Columbus State University Research &
Service Foundation

Dalton State College Athletic Club

$

1,090,643 $

--

--

--

-- -- -- -- 64,074 -- -- -- -- -- 1,023 -- 1,155,740

84,921 $ 6,914
50,312 --
-- -- -- -- -- 2,887 -- -- -- 4,345 9,125 -- 158,504

--$ 180,821
-- --
-- -- -- -- 16,321 -- -- -- -- -- -- 4,225 201,367

2,952,114 $ 6,034,569
-- --
-- -- -- 85,093 8,949,718 7,495 -- -- -- -- 397,610 22,073,651 40,500,250

25,507 $ -- -- --
-- -- -- -- -- -- -- -- -- -- -- -- 25,507

3,773 -- -- --
-- -- -- -- -- -- -- -- -- -- -- -- 3,773

Non-Current Assets Accounts Receivable, net Related Parties Due From USO - Capital Liability Reserve Fund Due From Institution - Capital Liability Reserve Fund Pledges and Contributions Other Investments Notes Receivable, net Due From Other Funds Investment in Capital Leases Other Assets Non-current Cash (Externally Restricted) Short-term Investments (Externally Restricted) Investments (Externally Restricted) Capital Assets, net Total Non-Current Assets
TOTAL ASSETS

-- -- -- 96,117 -- 14,969,434 -- -- -- 255,085 -- -- -- 1,484,853 16,805,489 17,961,229

-- -- -- -- -- -- -- -- -- -- -- -- 237,871 -- 237,871 396,375

-- -- -- -- -- 2,321,212 -- -- -- -- -- -- -- -- 2,321,212 2,522,579

-- -- -- 19,289,923 -- 62,039,588 -- -- -- -- -- -- -- 890,897 82,220,408 122,720,658

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 25,507

-- -- -- -- -- -- -- -- -- -- -- -- -- 1,225,269 1,225,269 1,229,042

DEFERRED OUTFLOWS OF RESOURCES

$

--$

--$

--$

--$

--$

--

182 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2018

LIABILITIES Current Liabilities Accounts Payable Salaries Payable Benefits Payable Contracts Payable Retainage Payable Due to Related Parties Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Deposits Deposits Held for Other Organizations Other Liabilities Notes and Loans Payable Lease Purchase Obligations Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities
Non-Current Liabilities Due to Related Parties Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Other Liabilities Notes and Loans Payable Lease Purchase Obligations Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Net Other Post Employment Benefits Liability Net Pension Liability Total Non-Current Liabilities
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES
NET POSITION Net Investment in Capital Assets Restricted for: Nonexpendable Expendable Unrestricted
TOTAL NET POSITION

College of Coastal Georgia Foundation,
Inc.

Columbus State University Alumni Association, Inc.

Columbus State University Athletic
Fund, Inc.

Columbus State University Foundation,
Inc.

Columbus State University Research &
Service Foundation

Dalton State College Athletic Club

$

--$

7,605 $

25,365 $

735,854 $

--$

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

681,558

14

85,093

8,426,711

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

12,500

--

--

--

--

--

--

--

--

--

--

--

--

22,957

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

2,457

--

--

102,301

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

684,015

7,619

110,458

9,277,366

22,957

--

--

--

--

13,549,790

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

13,946

--

--

960,932

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

13,946

--

--

14,510,722

--

--

697,961

7,619

110,458

23,788,088

22,957

--

--

--

--

--

--

--

1,484,853

7,031,767

6,465,914

2,280,734

$

17,263,268 $

--
106,517 --
282,239 388,756 $

--
1,363,583 1,128,357
(79,819) 2,412,121 $

890,897
47,768,469 50,699,220
(426,016) 98,932,570 $

--
-- -- 2,550 2,550 $

1,225,269
-- -- 3,773 1,229,042

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2018 Annual Financial Report 183

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2018

ASSETS Current Assets Cash and Cash Equivalents Cash and Cash Equivalents (Externally Restricted) Short-term Investments Short-term Investments (Externally Restricted) Accounts Receivable, net Federal Financial Assistance State General Appropriations Margin Allocation Funds Related Parties Pledges and Contributions Other Notes Receivable, net Due From Other Funds Investment in Capital Leases Inventories Prepaid Items Other Assets Total Current Assets

Dalton State College Foundation, Inc.

Darton Boosters, Inc.

Darton State College Foundation, Inc.

East Georgia State College Foundation,
Inc.

Fort Valley State University Foundation,
Inc.

Foundation Properties, Inc.

$

671,875 $

--

--

--

-- -- -- -- 1,334,395 50,000 -- -- -- -- 27,429 -- 2,083,699

23,517 $ -- -- --
-- -- -- -- -- -- -- -- 451,978 -- -- -- 475,495

425,212 $ -- -- --
-- -- -- -- -- -- -- -- -- -- -- -- 425,212

306,881 $ -- -- --
-- -- -- -- 213,638 -- -- -- -- -- -- -- 520,519

2,285,819 $ --
923,947 --
-- -- -- -- -- 23,369 -- -- 845,579 -- -- -- 4,078,714

6,868,104 -- -- --
-- -- -- 2,628,021 -- 140,948 -- -- -- -- 18,858 2,119 9,658,050

Non-Current Assets Accounts Receivable, net Related Parties Due From USO - Capital Liability Reserve Fund Due From Institution - Capital Liability Reserve Fund Pledges and Contributions Other Investments Notes Receivable, net Due From Other Funds Investment in Capital Leases Other Assets Non-current Cash (Externally Restricted) Short-term Investments (Externally Restricted) Investments (Externally Restricted) Capital Assets, net Total Non-Current Assets
TOTAL ASSETS

-- -- -- 3,205,333 77,401 26,142,515 -- -- -- -- -- -- -- 5,689,784 35,115,033 37,198,732

-- -- -- -- -- -- -- -- 21,305,240 349,107 1,637,580 -- -- -- 23,291,927 23,767,422

-- -- -- 18,707 -- 4,191,949 -- -- -- -- -- -- -- 389,919 4,600,575 5,025,787

-- -- -- 544,650 -- 800,620 -- -- -- -- -- -- 176,810 706,146 2,228,226 2,748,745

-- -- -- -- 23,904 -- -- -- 55,894,526 42,264 7,022,670 5,968,279 -- 1,120,788 70,072,431 74,151,145

1,614,653 -- -- -- --
2,123,818 -- -- --
588,688 775,631
-- -- 100,977,288 106,080,078 115,738,128

DEFERRED OUTFLOWS OF RESOURCES

$

--$

--$

--$

--$

--$

--

184 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2018

LIABILITIES Current Liabilities Accounts Payable Salaries Payable Benefits Payable Contracts Payable Retainage Payable Due to Related Parties Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Deposits Deposits Held for Other Organizations Other Liabilities Notes and Loans Payable Lease Purchase Obligations Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities
Non-Current Liabilities Due to Related Parties Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Other Liabilities Notes and Loans Payable Lease Purchase Obligations Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Net Other Post Employment Benefits Liability Net Pension Liability Total Non-Current Liabilities
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES
NET POSITION Net Investment in Capital Assets Restricted for: Nonexpendable Expendable Unrestricted
TOTAL NET POSITION

Dalton State College Foundation, Inc.

Darton Boosters, Inc.

Darton State College Foundation, Inc.

East Georgia State College Foundation,
Inc.

Fort Valley State University Foundation,
Inc.

Foundation Properties, Inc.

$

614,115 $

--

--

--

--

--

--

--

--

--

--

--

2,916,670

--

--

--

--

--

--

--

3,530,785

--$ -- -- -- -- -- -- -- -- -- -- -- -- -- 515,000 -- -- -- -- -- 515,000

--$ -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --

926 $ -- -- -- --
5,597 -- -- -- -- -- -- -- -- -- -- -- -- -- --
6,523

2,457,901 $ -- -- -- -- -- -- -- -- -- -- --
292,136 --
885,000 -- -- -- -- --
3,635,037

431,130 -- -- -- --
31,431,045 1,000,000 -- 16,430 -- -- 192,981 -- -- 1,946,555 -- -- -- -- --
35,018,141

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 3,530,785
--

-- -- -- -- -- -- -- 20,396,223 -- -- -- -- -- -- -- 20,396,223 20,911,223
--

5,689,784

11,595,908

6,423,388

9,958,867

$

33,667,947 $

--
-- -- 2,856,199 2,856,199 $

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
--
389,919
1,359,176 602,392
2,674,300 5,025,787 $

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 6,523
--
706,146
176,810 1,853,162
6,104 2,742,222 $

-- -- -- -- -- 252,842 -- 60,045,940 -- -- -- -- -- -- -- 60,298,782 63,933,819
--

-- -- -- -- -- 13,860,075 -- 42,855,445 -- -- -- -- -- -- -- 56,715,520 91,733,661
--

1,907,503
3,957,224 5,039,904 (687,305) 10,217,326 $

41,903,901
1,804,840 --
(19,704,274) 24,004,467

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2018 Annual Financial Report 185

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2018

ASSETS Current Assets Cash and Cash Equivalents Cash and Cash Equivalents (Externally Restricted) Short-term Investments Short-term Investments (Externally Restricted) Accounts Receivable, net Federal Financial Assistance State General Appropriations Margin Allocation Funds Related Parties Pledges and Contributions Other Notes Receivable, net Due From Other Funds Investment in Capital Leases Inventories Prepaid Items Other Assets Total Current Assets

Georgia Advanced Technology Ventures,
Inc.

Georgia College & State University Alumni
Association, Inc.

Georgia College & State University Foundation

Georgia Gwinnett College Foundation,
Inc.

Georgia Health Sciences Foundation,
Inc.

Georgia Highlands College Foundation,
Inc.

$

5,422,533 $

92,960

--

--

-- -- -- -- 156,785 98,896 15,668 -- -- -- 27,948 227,214 6,042,004

233,291 $ -- -- --
-- -- -- -- 301,212 -- -- -- -- 8,111 -- -- 542,614

3,257,017 $ -- -- --
-- -- -- -- 304,457 1,295 -- -- -- -- 30,002 -- 3,592,771

613,210 $ -- -- --
-- -- -- 4,548 143,021 59,381 -- -- 4,495,046 -- -- -- 5,315,206

323,160 $ --
10,848,632 --
-- -- -- 163,152 3,358,852 65,793 -- -- -- -- 42,103 -- 14,801,692

1,212,687 356,137 -- --
-- -- -- -- 4,000 -- -- -- 323,339 -- 8,268 -- 1,904,431

Non-Current Assets Accounts Receivable, net Related Parties Due From USO - Capital Liability Reserve Fund Due From Institution - Capital Liability Reserve Fund Pledges and Contributions Other Investments Notes Receivable, net Due From Other Funds Investment in Capital Leases Other Assets Non-current Cash (Externally Restricted) Short-term Investments (Externally Restricted) Investments (Externally Restricted) Capital Assets, net Total Non-Current Assets
TOTAL ASSETS

-- -- -- 598,428 -- 15,000 -- -- -- -- 38,304,169 -- -- 115,225,475 154,143,072 160,185,076

-- -- -- 6,832 -- 8,691,582 -- -- -- 4,500 -- -- -- -- 8,702,914 9,245,528

-- -- -- 361,972 -- 37,828,406 -- -- 84,779,839 945,869 -- -- 13,159,200 1,216,075 138,291,361 141,884,132

-- -- -- 208,920 -- 5,814,352 -- -- 161,166,269 10,857 11,730,393 -- -- 8,262,388 187,193,179 192,508,385

-- -- -- 137,670 -- 2,491,483 -- -- -- -- -- -- 2,513,812 2,330,775 7,473,740 22,275,432

-- -- -- -- -- 2,214,021 -- -- 15,696,134 -- 616,944 -- -- 890 18,527,989 20,432,420

DEFERRED OUTFLOWS OF RESOURCES

$

--$

--$

--$

--$

--$

--

186 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2018

LIABILITIES Current Liabilities Accounts Payable Salaries Payable Benefits Payable Contracts Payable Retainage Payable Due to Related Parties Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Deposits Deposits Held for Other Organizations Other Liabilities Notes and Loans Payable Lease Purchase Obligations Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities

Georgia Advanced Technology Ventures,
Inc.

Georgia College & State University
Alumni Association, Inc.

Georgia College & State University Foundation

Georgia Gwinnett College Foundation,
Inc.

Georgia Health Sciences Foundation,
Inc.

Georgia Highlands College Foundation,
Inc.

$

1,024,191 $

--

--

--

--

1,343,786

--

--

2,270,401

175,193

--

134,360

221,023

1,708,100

--

--

--

561,929

--

--

7,438,983

1,061 $ -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
1,061

1,021,259 $ -- -- -- --
2,000,946 -- -- -- --
3,404,151 -- -- --
2,655,000 -- -- -- -- --
9,081,356

3,404,499 $ -- -- -- --
52,624 -- --
618,526 -- -- --
117,646 --
3,575,000 -- -- -- -- --
7,768,295

72,180 $ -- -- -- --
356,640 -- --
526,887 -- -- -- -- -- --
90,485 -- -- -- --
1,046,192

30,561 -- -- -- -- -- -- -- -- -- -- -- -- --
445,000 -- -- -- -- --
475,561

Non-Current Liabilities Due to Related Parties Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Other Liabilities Notes and Loans Payable Lease Purchase Obligations Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Net Other Post Employment Benefits Liability Net Pension Liability Total Non-Current Liabilities
TOTAL LIABILITIES

587,877 -- --
1,876,072 --
6,571,364 52,804,919 61,658,199
-- -- -- -- -- -- -- 123,498,431 130,937,414

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 1,061

-- -- -- -- -- -- -- 92,186,880 808,641 5,479,942 -- -- -- -- -- 98,475,463 107,556,819

-- -- -- -- -- 2,151,394 -- 168,713,233 -- -- -- -- -- -- -- 170,864,627 178,632,922

-- -- -- -- -- -- -- -- 187,097 -- -- -- -- -- -- 187,097 1,233,289

-- -- -- -- -- -- -- 15,776,514 -- -- -- -- -- -- -- 15,776,514 16,252,075

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

--

--

NET POSITION Net Investment in Capital Assets Restricted for: Nonexpendable Expendable Unrestricted
TOTAL NET POSITION

29,412,127

--

7,128,464

(7,292,929)

$

29,247,662 $

--
5,851,319 2,776,244
616,904 9,244,467 $

1,216,075
19,572,735 9,193,328 4,345,175
34,327,313 $

8,262,388
1,468,963 1,302,018 2,842,094 13,875,463 $

2,330,775
2,582,665 13,909,247
2,219,456 21,042,143 $

890
938,301 1,740,066 1,501,088 4,180,345

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2018 Annual Financial Report 187

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2018

ASSETS Current Assets Cash and Cash Equivalents Cash and Cash Equivalents (Externally Restricted) Short-term Investments Short-term Investments (Externally Restricted) Accounts Receivable, net Federal Financial Assistance State General Appropriations Margin Allocation Funds Related Parties Pledges and Contributions Other Notes Receivable, net Due From Other Funds Investment in Capital Leases Inventories Prepaid Items Other Assets Total Current Assets

Georgia Southern University Athletic Foundation, Inc.

Georgia Southern University Foundation,
Inc.

Georgia Southern Housing Foundation,
Inc.

Georgia Southern University Research & Service Foundation,
Inc.

Georgia Southwestern State University Foundation, Inc.

Georgia State University Alumni Association, Inc.

$

6,383,503 $

1,751,975

--

--

-- -- -- 286,274 4,199,618 -- -- -- -- -- 5,916 -- 12,627,286

398,389 $ -- -- --
-- -- -- -- 1,048,067 37,405 -- -- -- -- -- -- 1,483,861

2,288,634 $ --
5,997,280 --
-- -- -- -- -- 32,504 -- -- 8,847,508 -- 73,197 -- 17,239,123

3,503,804 $ -- -- --
1,173,646 88,487 -- 2,500 --
2,207,635 -- -- --
8,546 37,500
-- 7,022,118

20,426 $ 4,478,353
-- --
-- -- -- -- 1,412,975 -- -- -- -- -- 4,903 -- 5,916,657

328,269 -- -- --
-- -- -- -- -- 53,065 -- -- -- -- 31,257 -- 412,591

Non-Current Assets Accounts Receivable, net Related Parties Due From USO - Capital Liability Reserve Fund Due From Institution - Capital Liability Reserve Fund Pledges and Contributions Other Investments Notes Receivable, net Due From Other Funds Investment in Capital Leases Other Assets Non-current Cash (Externally Restricted) Short-term Investments (Externally Restricted) Investments (Externally Restricted) Capital Assets, net Total Non-Current Assets
TOTAL ASSETS

DEFERRED OUTFLOWS OF RESOURCES

$

-- -- -- -- -- 1,748,000 -- -- 20,305,871 17,333 -- -- -- 2,843,160 24,914,364 37,541,650
--$

-- -- -- 558,061 -- 62,531,868 -- -- -- 2,222,435 -- -- -- 1,554,682 66,867,046 68,350,907
--$

-- -- -- -- -- -- -- -- 213,117,609 -- 31,879,724 -- -- 1,620,000 246,617,333 263,856,456
--$

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 7,022,118
--$

-- -- -- -- -- 31,312,707 -- -- -- 14,879 -- -- -- 161,505 31,489,091 37,405,748
--$

-- -- -- -- -- 1,541,785 -- -- -- 24,246 -- -- -- 14,253 1,580,284 1,992,875
--

188 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2018

LIABILITIES Current Liabilities Accounts Payable Salaries Payable Benefits Payable Contracts Payable Retainage Payable Due to Related Parties Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Deposits Deposits Held for Other Organizations Other Liabilities Notes and Loans Payable Lease Purchase Obligations Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities

Georgia Southern University Athletic Foundation, Inc.

Georgia Southern University Foundation,
Inc.

Georgia Southern Housing Foundation,
Inc.

Georgia Southern University Research & Service Foundation,
Inc.

Georgia Southwestern State University Foundation, Inc.

Georgia State University Alumni Association, Inc.

$

445,154 $

--

--

--

--

287,350

--

--

488,974

--

--

--

--

--

--

--

--

--

--

--

1,221,478

226,298 $ -- -- -- --
58,187 -- -- -- -- -- -- -- -- --
14,021 -- -- -- --
298,506

3,921,771 $ -- -- -- -- -- -- --
566,562 -- -- -- -- --
7,985,000 -- -- -- -- --
12,473,333

142,670 $ -- -- -- --
2,122,934 -- -- -- --
836,946 -- -- -- -- -- -- -- -- --
3,102,550

78,042 $ -- -- -- --
5,377 -- -- -- -- -- -- -- -- -- -- -- -- -- --
83,419

32,407 -- -- -- --
27,215 -- --
20,086 -- -- -- -- -- -- -- -- -- -- --
79,708

Non-Current Liabilities Due to Related Parties Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Other Liabilities Notes and Loans Payable Lease Purchase Obligations Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Net Other Post Employment Benefits Liability Net Pension Liability Total Non-Current Liabilities
TOTAL LIABILITIES

-- -- -- -- 512,322 98,958 -- 21,176,036 -- -- -- -- -- -- -- 21,787,316 23,008,794

-- -- -- -- -- -- -- -- 79,515 -- -- -- -- -- -- 79,515 378,021

2,596,400 -- -- --
10,558 -- --
218,090,508 -- -- -- -- -- -- --
220,697,466 233,170,799

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 3,102,550

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 83,419

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 79,708

DEFERRED INFLOWS OF RESOURCES

--

--

75,231

757,394

--

--

NET POSITION Net Investment in Capital Assets Restricted for: Nonexpendable Expendable Unrestricted
TOTAL NET POSITION

1,874,037

1,554,682

1,620,000

1,346,898

37,090,457

--

8,277,993

29,327,747

31,879,724

3,033,928

--

(2,889,298)

$

14,532,856 $

67,972,886 $

30,610,426 $

--
-- -- 3,162,174 3,162,174 $

161,505
12,780,422 14,721,033
9,659,369 37,322,329 $

14,253
-- 44,587 1,854,327 1,913,167

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2018 Annual Financial Report 189

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2018

ASSETS Current Assets Cash and Cash Equivalents Cash and Cash Equivalents (Externally Restricted) Short-term Investments Short-term Investments (Externally Restricted) Accounts Receivable, net Federal Financial Assistance State General Appropriations Margin Allocation Funds Related Parties Pledges and Contributions Other Notes Receivable, net Due From Other Funds Investment in Capital Leases Inventories Prepaid Items Other Assets Total Current Assets

Georgia State University Athletic Association, Inc.

Georgia State University Foundation,
Inc.

Georgia State University Research Foundation Inc. and
Affiliates

Georgia Tech Alumni Association

Georgia Tech Athletic Association

Georgia Tech Facilities, Inc.

$

3,302,696 $

5,866,847 $

11,607,729 $

--

22,354,408

2,842,889

--

--

--

--

--

--

-- -- -- -- 12,921,741 488,536 -- -- -- -- 263,403 -- 16,976,376

-- -- -- -- 5,798,990 509,290 -- -- 4,817,806 -- -- -- 39,347,341

-- -- -- 2,600,840 -- 16,858,655 -- -- 2,309,831 -- 13,873,078 -- 50,093,022

509,690 $ -- -- --
-- -- -- -- -- 126,473 -- -- -- 9,032 71,321 -- 716,516

7,935,052 $ -- -- --
-- -- -- 1,034,347 3,327,816 3,871,523 -- -- -- -- 1,203,090 -- 17,371,828

7,332,379 28,177,571
-- --
-- -- -- 2,191,980 -- -- -- -- 9,498,087 -- 256,189 -- 47,456,206

Non-Current Assets Accounts Receivable, net Related Parties Due From USO - Capital Liability Reserve Fund Due From Institution - Capital Liability Reserve Fund Pledges and Contributions Other Investments Notes Receivable, net Due From Other Funds Investment in Capital Leases Other Assets Non-current Cash (Externally Restricted) Short-term Investments (Externally Restricted) Investments (Externally Restricted) Capital Assets, net Total Non-Current Assets
TOTAL ASSETS

-- -- -- -- -- -- -- -- -- -- -- -- -- 254,088 254,088 17,230,464

-- -- -- 8,342,840 -- 238,909,631 -- -- 117,046,402 3,864,055 -- -- -- 15,324,667 383,487,595 422,834,936

-- -- -- -- -- 8,954,655 -- -- 70,056,371 -- -- -- -- 8,555,539 87,566,565 137,659,587

-- -- -- -- -- 277,773 -- -- -- -- -- -- -- 309,077 586,850 1,303,366

-- -- -- 4,529,908 -- 109,095,500 -- -- -- 723,496 -- -- -- 164,171,096 278,520,000 295,891,828

6,721,098 -- -- -- -- --
3,643 --
215,972,123 3,487,500
32,883,455 -- --
13,820,576 272,888,395 320,344,601

DEFERRED OUTFLOWS OF RESOURCES

$

--$

--$

8,355,807 $

--$

16,859,114 $

--

190 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2018

LIABILITIES Current Liabilities Accounts Payable Salaries Payable Benefits Payable Contracts Payable Retainage Payable Due to Related Parties Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Deposits Deposits Held for Other Organizations Other Liabilities Notes and Loans Payable Lease Purchase Obligations Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities

Georgia State University Athletic Association, Inc.

Georgia State University Foundation,
Inc.

Georgia State University Research Foundation Inc. and
Affiliates

Georgia Tech Alumni Association

Georgia Tech Athletic Association

Georgia Tech Facilities, Inc.

$

610,494 $

3,908,976 $

1,955,440 $

17,750

--

--

5,858

--

--

--

--

--

--

--

--

--

--

22,687,562

--

--

--

--

--

--

1,431,256

1,250,000

--

--

--

--

--

2,339,862

--

3,296

912,043

--

--

--

--

18,829

617,900

--

--

5,145,000

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

2,087,483

14,173,781

24,643,002

84,054 $ -- -- -- --
16,354 -- --
209,242 -- -- -- -- -- -- -- -- -- --
350,071 659,721

4,733,678 $ -- -- -- --
1,808,231 -- --
354,537 10,471,740
-- -- 945,963 69,087 1,145,000 -- -- -- 1,279,688 -- 20,807,924

5,735,907 -- -- --
1,255,140 1,034,347
-- -- 1,235,883 -- -- -- -- -- 11,403,267 -- -- -- -- -- 20,664,544

Non-Current Liabilities Due to Related Parties Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Other Liabilities Notes and Loans Payable Lease Purchase Obligations Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Net Other Post Employment Benefits Liability Net Pension Liability Total Non-Current Liabilities
TOTAL LIABILITIES

-- -- -- -- -- -- 15,141 -- -- -- -- -- -- -- -- 15,141 2,102,624

-- -- -- -- 5,434,496 -- -- 131,052,210 1,714,796 -- -- -- -- -- -- 138,201,502 152,375,283

-- -- -- -- -- -- -- 81,081,458 -- -- -- -- -- -- -- 81,081,458 105,724,460

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 659,721

-- -- -- -- -- 4,136,573 51,815 214,850,250 -- -- -- 765,928 -- -- -- 219,804,566 240,612,490

-- -- -- 1,587,448 -- -- -- 252,845,825 -- -- -- -- -- -- -- 254,433,273 275,097,817

DEFERRED INFLOWS OF RESOURCES

--

--

13,865,500

--

--

--

NET POSITION Net Investment in Capital Assets Restricted for: Nonexpendable Expendable Unrestricted
TOTAL NET POSITION

220,118

15,324,667

--

164,209,327

2,650,111

64,799,156

12,257,611

26,126,503

$

15,127,840 $

270,459,653 $

8,555,539
-- 11,646,077
6,223,818 26,425,434 $

309,077
-- -- 334,568 643,645 $

(40,473,605)
37,154,723 71,476,970
3,980,364 72,138,452 $

11,625,686
-- 27,581,430
6,039,668 45,246,784

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2018 Annual Financial Report 191

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2018

ASSETS Current Assets Cash and Cash Equivalents Cash and Cash Equivalents (Externally Restricted) Short-term Investments Short-term Investments (Externally Restricted) Accounts Receivable, net Federal Financial Assistance State General Appropriations Margin Allocation Funds Related Parties Pledges and Contributions Other Notes Receivable, net Due From Other Funds Investment in Capital Leases Inventories Prepaid Items Other Assets Total Current Assets

Georgia Tech Foundation, Inc.

Georgia Tech Global, Inc.

Georgia Tech Research Corporation

Global Center for Medical Innovation

Gordon State College Foundation, Inc. & Subsidiaries

IgniteHQ

$

9,910,000 $

11,757,000

--

--

-- -- -- -- 22,493,000 24,041,000 -- -- 6,987,880 -- -- -- 75,188,880

181,757 $ -- -- --
-- -- -- -- 10,000 -- -- -- -- -- -- -- 191,757

76,115,265 $ -- -- --
-- -- -- -- -- 170,816,370 -- -- 346,304 -- 503,747 -- 247,781,686

822,853 $ -- -- --
48,554 -- --
71,639 --
2,007,381 -- -- -- --
70,432 --
3,020,859

497,053 $ -- -- --
-- -- -- -- -- 6,407 -- -- 42,206,003 -- -- -- 42,709,463

821,744 -- -- --
-- -- -- -- -- -- -- -- -- -- -- -- 821,744

Non-Current Assets Accounts Receivable, net Related Parties Due From USO - Capital Liability Reserve Fund Due From Institution - Capital Liability Reserve Fund Pledges and Contributions Other Investments Notes Receivable, net Due From Other Funds Investment in Capital Leases Other Assets Non-current Cash (Externally Restricted) Short-term Investments (Externally Restricted) Investments (Externally Restricted) Capital Assets, net Total Non-Current Assets
TOTAL ASSETS

-- -- -- 82,142,000 -- 1,095,524,000 -- -- 110,230,281 24,783,000 -- -- 554,025,000 111,683,000 1,978,387,281 2,053,576,161

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 191,757

-- -- -- -- -- 63 -- -- 4,048,306 -- -- -- -- 934,597 4,982,966 252,764,652

-- -- -- -- -- -- -- -- -- 37,161 -- -- -- 10,797,347 10,834,508 13,855,367

-- -- -- -- -- 9,130,836 -- -- -- 5,442,681 -- -- -- -- 14,573,517 57,282,980

-- -- -- -- -- -- -- -- -- -- -- -- -- 604,617 604,617 1,426,361

DEFERRED OUTFLOWS OF RESOURCES

$

--$

--$

--$

--$

--$

--

192 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2018

LIABILITIES Current Liabilities Accounts Payable Salaries Payable Benefits Payable Contracts Payable Retainage Payable Due to Related Parties Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Deposits Deposits Held for Other Organizations Other Liabilities Notes and Loans Payable Lease Purchase Obligations Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities

Georgia Tech Foundation, Inc.

Georgia Tech Global, Inc.

Georgia Tech Research Corporation

Global Center for Medical Innovation

Gordon State College Foundation, Inc. & Subsidiaries

IgniteHQ

$

3,077,000 $

--

--

--

--

7,249,000

--

--

21,756,000

191,000

--

--

20,733,000

--

11,425,000

1,465,000

--

--

--

409,000

66,305,000

11,097 $ -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
11,097

296 $ -- -- -- --
97,118,000 -- --
53,742,326 --
28,158,408 5,071,544 -- 384,315 -- -- -- -- -- --
184,474,889

342,643 $ -- -- -- --
1,714,675 -- --
202,075 -- -- --
50,000 -- -- -- -- -- -- --
2,309,393

6,457 $ -- -- -- -- -- -- -- -- -- -- -- -- --
1,031,900 -- -- -- -- --
1,038,357

-- -- -- -- -- -- -- -- -- -- -- 76,949 -- -- -- -- -- -- -- -- 76,949

Non-Current Liabilities Due to Related Parties Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Other Liabilities Notes and Loans Payable Lease Purchase Obligations Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Net Other Post Employment Benefits Liability Net Pension Liability Total Non-Current Liabilities
TOTAL LIABILITIES

6,615,000 -- -- --
8,842,000 46,442,000
-- 236,889,000
14,062,000 -- -- -- -- -- --
312,850,000 379,155,000

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 11,097

-- -- -- -- -- -- 4,010,295 -- -- -- -- -- -- -- -- 4,010,295 188,485,184

-- -- -- -- 240,080 365,000 -- -- -- -- -- -- -- -- -- 605,080 2,914,473

-- -- -- -- 1,965,087 -- -- 40,273,560 -- -- -- -- -- -- -- 42,238,647 43,277,004

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 76,949

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

--

--

NET POSITION Net Investment in Capital Assets Restricted for: Nonexpendable Expendable Unrestricted
TOTAL NET POSITION

48,844,000

734,346,000

786,558,000

104,673,161

$

1,674,421,161 $

--
-- 46,104 134,556 180,660 $

934,597
-- -- 63,344,871 64,279,468 $

10,797,347
-- -- 143,547 10,940,894 $

--
3,038,314 730,409
10,237,253 14,005,976 $

604,617
-- -- 744,795 1,349,412

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2018 Annual Financial Report 193

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2018

ASSETS Current Assets Cash and Cash Equivalents Cash and Cash Equivalents (Externally Restricted) Short-term Investments Short-term Investments (Externally Restricted) Accounts Receivable, net Federal Financial Assistance State General Appropriations Margin Allocation Funds Related Parties Pledges and Contributions Other Notes Receivable, net Due From Other Funds Investment in Capital Leases Inventories Prepaid Items Other Assets Total Current Assets

James M. Dye Foundation, Inc.

Kennesaw State University Alumni Association, Inc.

Kennesaw State University Athletic Association, Inc.

Kennesaw State University Foundation,
Inc.

Kennesaw State University Research & Service Foundation,
Inc.

Medical College of Georgia Foundation

$

178,154 $

414,739 $

3,891,355 $

17,918,782 $

3,755,477 $

1,425,386

--

--

--

--

--

--

--

--

--

12,349,804

1,717,998

--

--

--

--

--

--

--

-- -- -- -- 30 7,919 -- -- -- -- 608 -- 186,711

-- -- -- -- -- 751 -- -- -- -- -- -- 415,490

-- -- -- 236,303 500,000 447,911 -- -- -- 379,887 43,069 10,403 5,508,928

-- -- -- 346,542 3,493,880 300,459 -- -- 9,234,713 -- 226,338 -- 43,870,518

-- -- -- 10,065 1,875,658 -- -- -- -- -- 3,000 -- 7,362,198

-- -- -- -- 597,409 -- -- -- -- -- -- -- 2,022,795

Non-Current Assets Accounts Receivable, net Related Parties Due From USO - Capital Liability Reserve Fund Due From Institution - Capital Liability Reserve Fund Pledges and Contributions Other Investments Notes Receivable, net Due From Other Funds Investment in Capital Leases Other Assets Non-current Cash (Externally Restricted) Short-term Investments (Externally Restricted) Investments (Externally Restricted) Capital Assets, net Total Non-Current Assets
TOTAL ASSETS

-- --
-- -- -- 2,381,823 -- -- -- -- -- -- -- -- 2,381,823 2,568,534

-- --
-- -- -- -- -- -- -- -- -- -- -- -- -- 415,490

-- --
-- 218,287
-- -- -- -- -- -- -- -- -- 1,892,994 2,111,281 7,620,209

-- --
-- 5,900,843
-- 15,095,722
-- -- 219,778,178 -- 53,669,323 -- 35,739,920 87,213,893 417,397,879 461,268,397

-- --
-- -- -- -- -- -- -- -- -- -- -- -- -- 7,362,198

-- --
-- 932,102
16,588 120,894,345
-- -- -- 264,596 -- -- 129,629,157 9,934,459 261,671,247 263,694,042

DEFERRED OUTFLOWS OF RESOURCES

$

--$

--$

--$

--$

--$

--

194 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2018

LIABILITIES Current Liabilities Accounts Payable Salaries Payable Benefits Payable Contracts Payable Retainage Payable Due to Related Parties Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Deposits Deposits Held for Other Organizations Other Liabilities Notes and Loans Payable Lease Purchase Obligations Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities

James M. Dye Foundation, Inc.

Kennesaw State University Alumni Association, Inc.

Kennesaw State University Athletic Association, Inc.

Kennesaw State University Foundation,
Inc.

Kennesaw State University Research & Service Foundation,
Inc.

Medical College of Georgia Foundation

$

89,801 $

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

89,801

5,019 $ -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
5,019

77,622 $ -- -- -- -- -- -- --
747,320 -- -- --
392,549 -- -- -- -- -- -- --
1,217,491

9,473,772 $ -- -- -- --
1,599,219 -- --
1,068,340 29,678 -- -- -- --
12,715,000 35,782 -- -- -- --
24,921,791

40,998 $ -- -- -- --
4,145,724 -- --
983,324 -- -- -- -- -- -- -- -- -- -- --
5,170,046

-- -- -- -- -- 104,503 -- -- -- -- -- 66,440 5,000,000 -- -- -- -- -- -- -- 5,170,943

Non-Current Liabilities Due to Related Parties Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Other Liabilities Notes and Loans Payable Lease Purchase Obligations Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Net Other Post Employment Benefits Liability Net Pension Liability Total Non-Current Liabilities
TOTAL LIABILITIES

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 89,801

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 5,019

-- -- -- 625,001 -- 400,000 -- -- -- -- -- -- -- -- -- 1,025,001 2,242,492

-- -- -- -- -- -- -- 362,381,063 55,941 -- -- -- -- -- -- 362,437,004 387,358,795

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 5,170,046

-- -- -- -- -- -- -- -- 869,766 -- -- -- -- -- -- 869,766 6,040,709

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

--

--

NET POSITION Net Investment in Capital Assets Restricted for: Nonexpendable Expendable Unrestricted
TOTAL NET POSITION

--

2,190,554

148,163

140,016

$

2,478,733 $

--
54,802 20,000 335,669 410,471 $

1,100,445
-- 1,711,616 2,565,656 5,377,717 $

(34,972,296)
39,189,061 23,557,184 46,135,653 73,909,602 $

--
-- 527,986 1,664,166 2,192,152 $

4,934,459
129,629,157 87,382,351 35,707,366
257,653,333

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2018 Annual Financial Report 195

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2018

ASSETS Current Assets Cash and Cash Equivalents Cash and Cash Equivalents (Externally Restricted) Short-term Investments Short-term Investments (Externally Restricted) Accounts Receivable, net Federal Financial Assistance State General Appropriations Margin Allocation Funds Related Parties Pledges and Contributions Other Notes Receivable, net Due From Other Funds Investment in Capital Leases Inventories Prepaid Items Other Assets Total Current Assets

Middle Georgia State University Foundation,
Inc. & Subsidiaries

Middle Georgia State University Real Estate
Foundation, Inc.

Savannah State University Foundation,
Inc. & Subsidiaries

South Georgia State College Foundation, Inc. & Subsidiaries

Southern Polytechnic Applied Research Corporation

University of Georgia Athletic Association,
Inc.

$

185,108 $

2,185,769 $

696,120 $

1,001,737 $

717,119 $

56,249,118

394,462

--

--

--

--

--

--

--

214,602

--

--

--

--

--

--

--

--

--

-- -- -- -- 324,840 -- -- -- -- -- 20,141 -- 924,551

-- -- -- -- -- 61,394,127 -- -- 747,495 -- 7,275 -- 64,334,666

-- -- -- -- -- 243,273 -- -- 2,175,856 -- 6,046 -- 3,335,897

-- -- -- -- -- -- -- -- -- -- -- -- 1,001,737

-- -- -- -- -- -- -- -- -- -- 500 -- 717,619

-- -- -- 69,857 -- 3,152,970 -- -- -- -- 616,863 -- 60,088,808

Non-Current Assets Accounts Receivable, net Related Parties Due From USO - Capital Liability Reserve Fund Due From Institution - Capital Liability Reserve Fund Pledges and Contributions Other Investments Notes Receivable, net Due From Other Funds Investment in Capital Leases Other Assets Non-current Cash (Externally Restricted) Short-term Investments (Externally Restricted) Investments (Externally Restricted) Capital Assets, net Total Non-Current Assets
TOTAL ASSETS

-- -- -- 293,396 -- 12,154,909 -- -- -- 73,260 -- -- -- 228,542 12,750,107 13,674,658

-- -- -- -- -- -- -- -- 32,462,372 -- -- 3,434,162 -- 789,332 36,685,866 101,020,532

-- -- -- -- -- -- -- -- 77,394,858 -- 5,405,866 -- -- 150,000 82,950,724 86,286,621

-- -- -- -- -- 4,451,409 -- -- -- -- -- -- -- 330,395 4,781,804 5,783,541

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 717,619

-- -- -- -- -- 53,473,069 -- -- -- 383,531 -- -- -- 316,714,200 370,570,800 430,659,608

DEFERRED OUTFLOWS OF RESOURCES

$

--$

--$

--$

--$

--$

13,353,531

196 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2018

LIABILITIES Current Liabilities Accounts Payable Salaries Payable Benefits Payable Contracts Payable Retainage Payable Due to Related Parties Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Deposits Deposits Held for Other Organizations Other Liabilities Notes and Loans Payable Lease Purchase Obligations Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities

Middle Georgia State University Foundation,
Inc. & Subsidiaries

Middle Georgia State University Real Estate
Foundation, Inc.

Savannah State University Foundation,
Inc. & Subsidiaries

South Georgia State College Foundation, Inc. & Subsidiaries

Southern Polytechnic Applied Research Corporation

University of Georgia Athletic Association,
Inc.

$

200,812 $

2,258,105 $

328,141 $

107,198 $

312,578 $

5,663,152

--

--

--

--

--

6,953,376

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

317,555

6,936,673

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

34,667,957

--

--

--

--

--

--

270,448

--

--

--

--

--

--

--

6,991,675

--

1,815

--

--

773,000

200,705

--

--

--

--

--

--

--

--

--

--

1,710,000

2,160,000

--

--

5,495,000

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

471,260

4,741,105

9,680,521

107,198

631,948

59,716,158

Non-Current Liabilities Due to Related Parties Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Other Liabilities Notes and Loans Payable Lease Purchase Obligations Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Net Other Post Employment Benefits Liability Net Pension Liability Total Non-Current Liabilities
TOTAL LIABILITIES

-- -- -- -- 15,000 -- -- -- -- -- -- -- -- -- -- 15,000 486,260

-- -- -- -- -- -- -- 89,584,844 -- -- -- -- -- -- -- 89,584,844 94,325,949

-- -- -- -- -- 1,345,408 -- 71,030,767 -- -- -- -- -- -- -- 72,376,175 82,056,696

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 107,198

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 631,948

-- -- -- -- 379,923 15,836,592 -- 95,207,340 -- 2,784,451 -- -- -- -- -- 114,208,306 173,924,464

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

--

--

NET POSITION Net Investment in Capital Assets Restricted for: Nonexpendable Expendable Unrestricted
TOTAL NET POSITION

228,542

9,497,912

3,461,944

--

$

13,188,398 $

789,332
-- 6,334,271 (429,020) 6,694,583 $

10,614,342
110,000 164,752 (6,659,169) 4,229,925 $

330,395
2,859,773 309,591
2,176,584 5,676,343 $

--
-- -- 85,671 85,671 $

210,744,348
-- -- 59,344,327 270,088,675

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2018 Annual Financial Report 197

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2018

ASSETS Current Assets Cash and Cash Equivalents Cash and Cash Equivalents (Externally Restricted) Short-term Investments Short-term Investments (Externally Restricted) Accounts Receivable, net Federal Financial Assistance State General Appropriations Margin Allocation Funds Related Parties Pledges and Contributions Other Notes Receivable, net Due From Other Funds Investment in Capital Leases Inventories Prepaid Items Other Assets Total Current Assets

University of Georgia Foundation

University of Georgia Research Foundation,
Inc.

University of North Georgia Foundation -
Dahlonega, Inc.

University of North Georgia Real Estate
Foundation, Inc.

University of West Georgia Athletic Foundation, Inc.

University of West Georgia Foundation,
Inc.

$

2,018,815 $

15,430,636

14,066,020

107,512,399

-- -- -- -- 23,975,890 2,184,582 -- -- -- -- 372,179 -- 165,560,521

33,654,301 $ -- -- --
-- -- -- 692,665 -- 30,723,081 -- -- 8,121,304 -- 218,013 19,836,301 93,245,665

(786,199) $ 930,650
-- --
-- -- -- -- 3,262,662 304 -- -- -- -- -- -- 3,407,417

2,463,567 $ 3,972,107
-- --
-- -- -- -- -- -- -- -- 3,929,655 -- 132,313 -- 10,497,642

206,326 $ 248,127
-- --
-- -- -- 56,702 106,954 -- -- -- -- -- -- -- 618,109

1,560,055 4,379,399
-- --
-- -- -- -- 2,743,205 41,659 -- -- 1,417,033 -- 2,818 -- 10,144,169

Non-Current Assets Accounts Receivable, net Related Parties Due From USO - Capital Liability Reserve Fund Due From Institution - Capital Liability Reserve Fund Pledges and Contributions Other Investments Notes Receivable, net Due From Other Funds Investment in Capital Leases Other Assets Non-current Cash (Externally Restricted) Short-term Investments (Externally Restricted) Investments (Externally Restricted) Capital Assets, net Total Non-Current Assets
TOTAL ASSETS

-- --
-- 45,461,172
-- 116,124,963
-- -- -- 14,930,888 -- -- 902,418,572 23,642,386 1,102,577,981 1,268,138,502

-- --
-- -- -- 49,419,215 -- -- 231,616,248 824,360 8,192,909 -- -- 19,406,427 309,459,159 402,704,824

-- --
-- 250,654
-- 66,656,588
-- -- -- 63,467 -- -- -- 94,290 67,064,999 70,472,416

-- --
-- -- -- -- -- -- 127,710,333 -- 3,969,228 -- -- 2,738,131 134,417,692 144,915,334

-- --
-- 148,110
-- 750,850
-- -- -- 94 -- -- -- -- 899,054 1,517,163

-- --
-- 5,498,174
-- 31,854,878
-- -- 40,357,004 881,308 10,987,353 -- -- 329,190 89,907,907 100,052,076

DEFERRED OUTFLOWS OF RESOURCES

$

--$

15,086,273 $

--$

--$

--$

--

198 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2018

LIABILITIES Current Liabilities Accounts Payable Salaries Payable Benefits Payable Contracts Payable Retainage Payable Due to Related Parties Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Deposits Deposits Held for Other Organizations Other Liabilities Notes and Loans Payable Lease Purchase Obligations Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities

University of Georgia Foundation

University of Georgia Research Foundation,
Inc.

University of North Georgia Foundation -
Dahlonega, Inc.

University of North Georgia Real Estate
Foundation, Inc.

University of West Georgia Athletic Foundation, Inc.

University of West Georgia Foundation,
Inc.

$

1,713,310 $

1,835,871 $

5,885 $

2,692,247 $

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

2,539,952

36,473,691

104,242

--

--

--

--

--

--

--

--

--

1,753,250

2,066,732

--

414,217

--

19,836,301

--

--

--

--

--

--

--

--

--

--

497,395

8,516,222

2,015,319

405,000

--

--

--

--

--

9,145,000

--

1,338,755

778,433

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

7,282,340

77,873,817

2,125,446

4,850,219

20,134 $ -- -- -- -- -- -- --
88,725 -- -- -- -- -- -- -- -- -- -- --
108,859

1,949,805 -- -- -- --
56,702 -- -- -- --
750,850 -- -- --
1,610,000 -- -- -- -- --
4,367,357

Non-Current Liabilities Due to Related Parties Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Other Liabilities Notes and Loans Payable Lease Purchase Obligations Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Net Other Post Employment Benefits Liability Net Pension Liability Total Non-Current Liabilities
TOTAL LIABILITIES

-- 649,103
-- -- -- 15,011,522 -- -- 7,987,174 1,269,901 -- -- -- -- -- 24,917,700 32,200,040

-- -- -- 1,803,676 -- -- -- 245,099,853 -- -- -- -- -- -- -- 246,903,529 324,777,346

-- -- -- -- -- -- -- -- 8,381 -- -- -- -- -- -- 8,381 2,133,827

-- -- -- -- -- 1,215,000 -- 130,793,255 -- -- -- -- -- -- -- 132,008,255 136,858,474

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 108,859

-- -- -- -- -- -- 329,190 43,707,305 85,931 -- -- -- -- -- -- 44,122,426 48,489,783

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

--

--

NET POSITION Net Investment in Capital Assets Restricted for: Nonexpendable Expendable Unrestricted
TOTAL NET POSITION

8,133,469

596,270,687

505,135,826

126,398,480

$

1,235,938,462 $

10,890,205
-- 2,427,821 79,695,725 93,013,751 $

94,290
28,529,662 34,964,854
4,749,783 68,338,589 $

2,738,131
-- -- 5,318,729 8,056,860 $

--
-- 1,271,794
136,510 1,408,304 $

--
21,004,125 19,472,285 11,085,883 51,562,293

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2018 Annual Financial Report 199

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2018

ASSETS Current Assets Cash and Cash Equivalents Cash and Cash Equivalents (Externally Restricted) Short-term Investments Short-term Investments (Externally Restricted) Accounts Receivable, net Federal Financial Assistance State General Appropriations Margin Allocation Funds Related Parties Pledges and Contributions Other Notes Receivable, net Due From Other Funds Investment in Capital Leases Inventories Prepaid Items Other Assets Total Current Assets

University of West Georgia Real Estate
Foundation, Inc.

University System of Georgia Foundation,
Inc. & Affiliates

Valdosta State University Auxiliary Services Real Estate
Foundation

Valdosta State University Foundation,
Inc.

Walter & Emilie Spivey Foundation

Total All CU's & Affiliated Organizations

$

882,631 $

692,107 $

2,463,913 $

6,118,009 $

4,855,656

13,224,835

--

--

740,517

--

--

--

--

--

--

1,612

-- -- -- -- -- -- -- -- 2,659,246 -- -- -- 9,138,050

-- -- -- 1,964,907 45,276 -- -- -- 9,533,603 -- -- -- 25,460,728

-- -- -- -- -- 301,738 -- -- 4,815,329 -- 13,976 -- 7,594,956

-- -- -- -- 1,459,344 -- -- -- -- -- 17,977 -- 7,596,942

12,691 $ -- -- --
-- -- -- -- -- -- -- -- -- -- -- -- 12,691

386,151,047 136,853,263
86,864,940 111,642,101
5,377,194 88,487 --
19,276,322 105,554,501 470,425,961
15,668 --
129,069,227 19,515,267 36,153,480 42,153,913
1,549,141,371

Non-Current Assets Accounts Receivable, net Related Parties Due From USO - Capital Liability Reserve Fund Due From Institution - Capital Liability Reserve Fund Pledges and Contributions Other Investments Notes Receivable, net Due From Other Funds Investment in Capital Leases Other Assets Non-current Cash (Externally Restricted) Short-term Investments (Externally Restricted) Investments (Externally Restricted) Capital Assets, net Total Non-Current Assets
TOTAL ASSETS

-- --
-- -- -- 248,305 -- -- 114,180,350 -- 3,572,705 -- -- -- 118,001,360 127,139,410

-- --
-- -- -- 5,458,580 -- -- 393,272,230 1,865 9,520,925 -- -- -- 408,253,600 433,714,328

-- --
-- -- -- -- -- -- 163,697,876 -- -- -- 11,047,703 227,338 174,972,917 182,567,873

-- --
-- 831,170
-- 39,521,700
-- -- -- 1,058,337 -- -- -- 7,111,623 48,522,830 56,119,772

-- --
-- -- -- 6,697,755 -- -- -- -- -- -- -- 269,567 6,967,322 6,980,013

8,335,751 --
-- 180,864,899
15,084,142 2,435,867,571
3,643 --
2,690,515,200 67,800,682
234,268,946 9,402,441
1,670,654,052 1,326,159,583 8,638,956,910 10,188,098,281

DEFERRED OUTFLOWS OF RESOURCES

$

--$

--$

--$

--$

--$

55,851,504

200 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2018

LIABILITIES Current Liabilities Accounts Payable Salaries Payable Benefits Payable Contracts Payable Retainage Payable Due to Related Parties Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Deposits Deposits Held for Other Organizations Other Liabilities Notes and Loans Payable Lease Purchase Obligations Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities

University of West Georgia Real Estate
Foundation, Inc.

University System of Georgia Foundation,
Inc. & Affiliates

Valdosta State University Auxiliary Services Real Estate
Foundation

Valdosta State University Foundation,
Inc.

Walter & Emilie Spivey Foundation

Total All CU's & Affiliated Organizations

$

1,069,570 $

906,895 $

2,466,275 $

149,097 $

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

254,333

--

--

--

--

--

1,865

--

115,913

--

--

--

397,764

--

40,350,000

--

67,723

--

--

--

--

3,015,000

7,545,000

3,980,000

289,373

--

--

--

44,518

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

4,084,570

48,803,760

6,446,275

1,318,721

5,650 $ -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
5,650

127,585,955 18,626,912 5,858 -- 1,255,140
280,389,632 1,000,000 --
127,364,100 30,714,470 35,901,400 21,717,469 87,033,518 8,267,512
104,154,850 2,532,997 -- 561,929 1,279,688
20,151,444 868,542,874

Non-Current Liabilities Due to Related Parties Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Other Liabilities Notes and Loans Payable Lease Purchase Obligations Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Net Other Post Employment Benefits Liability Net Pension Liability Total Non-Current Liabilities
TOTAL LIABILITIES

-- -- -- -- -- -- -- 118,309,422 -- -- -- -- -- -- -- 118,309,422 122,393,992

-- -- -- -- -- 34,086,201 -- 335,630,633 -- -- -- -- -- -- -- 369,716,834 418,520,594

-- -- -- -- -- -- -- 162,874,394 -- 5,823,186 -- -- -- -- -- 168,697,580 175,143,855

-- -- -- -- -- 1,061,628 -- 3,353,222 161,017 -- -- -- -- -- -- 4,575,867 5,894,588

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 5,650

25,009,007 649,103 --
5,892,197 33,747,763 220,481,452 139,794,146 3,572,583,517 26,995,137 30,176,076
-- 765,928
-- 6,165,679
-- 4,062,260,005 4,930,802,879

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

--

14,730,693

NET POSITION Net Investment in Capital Assets Restricted for: Nonexpendable Expendable Unrestricted
TOTAL NET POSITION

--

--

227,338

2,339,677

269,567

475,860,382

--

418,998

--

37,789,063

--

2,003,489,198

--

259,060

--

10,147,710

--

1,895,453,516

4,745,418

14,515,676

7,196,680

(51,266)

6,704,796

923,613,117

$

4,745,418 $

15,193,734 $

7,424,018 $

50,225,184 $

6,974,363 $

5,298,416,213

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2018 Annual Financial Report 201

202 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) FOR FISCAL YEAR ENDED JUNE 30, 2018

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Rents and Royalties Auxiliary Enterprises Food Services Health Services Intercollegiate Athletics Gifts and Contributions Endowment Income Other Operating Revenues
Total Operating Revenues

Abraham Baldwin Agricultural College Foundation, Inc. &
Subsidiaries

Albany State University
Foundation, Inc.

Armstrong State University Educational Properties
Foundation, Inc. & Subsidiaries

Armstrong State University
Foundation, Inc.

Atlanta Metropolitan State College
Projects Foundation, Inc.

Atlanta Metropolitan State College
Foundation, Inc.

$

--$

--$

--$

--

--

--

--

--

--

268,466

--

--

247,820

4,106,867

1,203,146

-- -- -- 1,534,787 784,733 59,614
2,895,420

-- -- -- 645,037 80,376 61,540
4,893,820

-- -- -- -- -- 1,570,370
2,773,516

--$ -- -- -- --
-- -- -- 984,735 -- --
984,735

--$ -- -- -- --
-- -- -- 801,024 -- --
801,024

-- -- -- -- --
-- -- -- 315,715 -- --
315,715

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

336,124 29,754
354,837 79,036
680,932 17,611
1,038,872 81,286
2,618,452

260,471 -- --
2,733 134,299
-- 1,951,645
7,932
2,357,080

10,685 --
38,307 -- --
10,241 2,258,973
--
2,318,206

-- -- 46,498 -- 809,382 -- 1,008,655 --
1,864,535

-- -- -- -- -- -- 28,031 432,176
460,207

-- -- -- -- 203,206 -- 118,777 --
321,983

Operating Income (Loss)

276,968

2,536,740

455,310

(879,800)

340,817

(6,268)

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

--
-- -- -- -- 838,178 -- 60,750
898,928

--
-- -- -- -- 332,296 (3,344,499) (63,520)
(3,075,723)

--
-- -- -- -- 95,998 (1,416,122) --
(1,320,124)

--
-- -- -- -- 1,042,366 -- --
1,042,366

--
-- -- -- -- -- (443,691) --
(443,691)

--
-- -- -- -- (193) -- --
(193)

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

1,175,896

(538,983)

(864,814)

162,566

(102,874)

(6,461)

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses

-- -- -- 440,529 --
440,529

-- -- -- 43,072 --
43,072

-- -- -- -- (8,488,797)
(8,488,797)

-- -- -- 189,573 --
189,573

--

--

--

--

--

--

--

50,300

--

--

--

50,300

Change in Net Position

1,616,425

(495,911)

(9,353,611)

352,139

(102,874)

43,839

Net Position, Beginning of Year, Restated

28,498,649

11,062,612

9,353,611

14,467,895

(704,652)

430,802

Net Position-End of Year

$

30,115,074 $

10,566,701 $

--$

14,820,034 $

(807,526) $

474,641

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2018 Annual Financial Report 203

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) FOR FISCAL YEAR ENDED JUNE 30, 2018

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Rents and Royalties Auxiliary Enterprises Food Services Health Services Intercollegiate Athletics Gifts and Contributions Endowment Income Other Operating Revenues
Total Operating Revenues

AU Health System Inc

Augusta University Foundation, Inc.

Augusta University Research Institute,
Inc.

Augusta University College of Dental Medicine Faculty Practice Group d/b/a AU Dental Faculty Practice Group

Bainbridge State College Foundation

Clayton State University
Foundation, Inc.

$

4,659,630 $

--

--

817,829,308

986,098

2,051,622

-- -- -- --
825,526,658

--$ -- 43,920 789,046 174,859
-- -- -- 1,375,772 912,577 212,272
3,508,446

50,592,029 $ --
10,156,955 --
351,258
-- -- -- -- -- --
61,100,242

--$ -- -- 12,347,101 --
-- -- -- --$ -- --
12,347,101

--$ -- -- -- --
-- -- -- 253,828 -- --
253,828

-- -- -- -- 753,713
-- -- -- 4,338,478 -- 84,190
5,176,381

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

278,131,467 34,129,281
142,150,598 2,775,744 1,378,740 4,399,194
309,801,866 36,175,226
808,942,116

-- -- -- -- 656,961 -- 1,864,933 6,240
2,528,134

-- -- -- -- -- -- 61,088,356 --
61,088,356

-- -- -- -- -- -- 12,705,660 --
12,705,660

-- -- -- -- -- -- 154,068 --
154,068

78,800 -- --
454,479 668,431
-- 1,895,219
233,529
3,330,458

Operating Income (Loss)

16,584,542

980,312

11,886

(358,559)

99,760

1,845,923

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

29,932,138
3,083,581 3,227,028
-- -- 11,067,969 (8,513,680) (7,033,260)
31,763,776

--
-- -- -- -- 1,758,828 (879,114) (353,408)
526,306

--
-- -- -- -- 68,514 -- (18,092)
50,422

--
-- -- -- -- 728,972 -- --
728,972

--
-- -- -- -- -- 28,291 --
28,291

--
-- -- -- -- 3,484,359 (3,222,826) --
261,533

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

48,348,318

1,506,618

62,308

370,413

128,051

2,107,456

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses

--

--

--

--

--

--

--

--

--

--

--

--

(185,163)

--

--

--

--

--

--

587,066

--

--

--

144,006

--

--

--

--

--

--

(185,163)

587,066

--

--

--

144,006

Change in Net Position

48,163,155

2,093,684

62,308

370,413

128,051

2,251,462

Net Position, Beginning of Year, Restated

286,148,348

35,814,656

8,463,613

2,182,815

2,263,349

9,045,991

Net Position-End of Year

$

334,311,503 $

37,908,340 $

8,525,921 $

2,553,228 $

2,391,400 $

11,297,453

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

204 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) FOR FISCAL YEAR ENDED JUNE 30, 2018

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Rents and Royalties Auxiliary Enterprises Food Services Health Services Intercollegiate Athletics Gifts and Contributions Endowment Income Other Operating Revenues
Total Operating Revenues

College of Coastal Georgia Foundation,
Inc.

Columbus State University Alumni Association, Inc.

Columbus State University Athletic
Fund, Inc.

Columbus State University
Foundation, Inc.

Columbus State University Research
& Service Foundation

Dalton State College Athletic Club

$

--$

--

--

--

116,394

-- -- -- 840,165 305,062 --
1,261,621

--$ -- -- 21,187 --
-- -- -- 49,810 -- 7,002
77,999

--$ -- -- 29,000 --
-- -- -- 58,543 -- 1,500
89,043

--$ -- -- 1,390,950 81,934
-- -- -- 13,080,767 5,664,074 39,272
20,256,997

--$ -- -- -- 331
-- -- -- 280 -- --
611

-- -- -- -- --
-- -- -- 4,743 -- --
4,743

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

149,660 8,802 6,813
19,162 667,243
-- 342,714
43,022
1,237,416

2,500 -- -- --
5,300 --
80,769 --
88,569

-- -- -- 605 91,004 -- 94,218 7,224
193,051

1,693,773 146,057 -- 333,190 208,349 --
10,324,575 14,840
12,720,784

--

--

--

--

--

--

--

--

--

193,435

--

--

883

214,875

--

84,267

883

492,577

Operating Income (Loss)

24,205

(10,570)

(104,008)

7,536,213

(272)

(487,834)

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

1,207,785

20,586

384,913

111,947

--

12

--

--

--

--

--

--

--

--

--

--

--

--

1,207,785

20,586

384,913

111,947

--

12

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

1,231,990

10,016

280,905

7,648,160

(272)

(487,822)

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

160,937

--

1,250

2,898,600

--

--

--

--

--

--

--

--

160,937

--

1,250

2,898,600

--

--

Change in Net Position

1,392,927

10,016

282,155

10,546,760

(272)

(487,822)

Net Position, Beginning of Year, Restated

15,870,341

378,740

2,129,966

88,385,810

2,822

1,716,864

Net Position-End of Year

$

17,263,268 $

388,756 $

2,412,121 $

98,932,570 $

2,550 $

1,229,042

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2018 Annual Financial Report 205

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) FOR FISCAL YEAR ENDED JUNE 30, 2018

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Rents and Royalties Auxiliary Enterprises Food Services Health Services Intercollegiate Athletics Gifts and Contributions Endowment Income Other Operating Revenues
Total Operating Revenues

Dalton State College Foundation, Inc.

Darton Boosters, Inc.

Darton State College Foundation, Inc.

East Georgia State College Foundation,
Inc.

Fort Valley State University
Foundation, Inc.

Foundation Properties, Inc.

$

--$

--$

--

--

--

--

--

1,300

--

1,806,541

-- -- -- 1,746,996 -- 33,175
1,780,171

-- -- -- -- -- --
1,807,841

--$ -- -- -- 24,000
-- -- -- 101,935 -- --
125,935

--$ -- -- -- --
-- -- -- 788,641 -- 7,900
796,541

--$ -- -- -- 3,418,528
-- -- -- 1,086,728 -- --
4,505,256

-- -- -- (365,000) 5,763,296
-- -- -- 35,871 -- 2,170
5,436,337

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

437,146 -- -- --
497,955 --
6,507,048 5,214
7,447,363

-- -- -- -- -- -- 139,981 --
139,981

-- -- -- -- 61,893 -- 87,738 3,750
153,381

-- -- -- 2,126 320,117 -- 179,883 7,992
510,118

-- -- -- -- -- -- 2,111,433 47,728
2,159,161

244,114 31,133 -- -- -- 33,797
931,635 2,263,692
3,504,371

Operating Income (Loss)

(5,667,192)

1,667,860

(27,446)

286,423

2,346,095

1,931,966

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

--
-- -- -- -- 3,061,691 (20,670) --
3,041,021

--
-- -- -- -- 16,564 (1,616,187) --
(1,599,623)

--
-- -- -- -- 291,501 -- --
291,501

--
-- -- -- -- 83,978 -- --
83,978

--
-- -- -- -- 923 (2,685,167) --
(2,684,244)

--
-- -- -- -- 256,088 (1,827,547) --
(1,571,459)

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

(2,626,171)

68,237

264,055

370,401

(338,149)

360,507

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

1,441,969

--

--

475

39,438

--

--

--

--

--

--

--

1,441,969

--

--

475

39,438

--

Change in Net Position

(1,184,202)

68,237

264,055

370,876

(298,711)

360,507

Net Position, Beginning of Year, Restated

34,852,149

2,787,962

4,761,732

2,371,346

10,516,037

23,643,960

Net Position-End of Year

$

33,667,947 $

2,856,199 $

5,025,787 $

2,742,222 $

10,217,326 $

24,004,467

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

206 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) FOR FISCAL YEAR ENDED JUNE 30, 2018

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Rents and Royalties Auxiliary Enterprises Food Services Health Services Intercollegiate Athletics Gifts and Contributions Endowment Income Other Operating Revenues
Total Operating Revenues

Georgia Advanced Technology
Ventures, Inc.

Georgia College & State University
Alumni Association, Inc.

Georgia College & State University Foundation

Georgia Gwinnett College Foundation,
Inc.

Georgia Health Sciences
Foundation, Inc.

Georgia Highlands College Foundation,
Inc.

$

--$

--

28,609

364,193

12,927,160

-- -- -- 267,720 $ -- 256,876
13,844,558

--$ -- -- -- --
-- -- -- 139,121 -- 102,700
241,821

--$ -- -- -- 5,150,235
-- -- -- 4,386,738 2,443,949 151,110
12,132,032

--$ -- -- 82,677 9,233,008
-- -- -- 1,589,988 -- --
10,905,673

--$ -- 1,778,010 353,928 12,300
-- -- -- 3,260,426 -- 3,195,286
8,599,950

-- -- -- 14,944 1,041,433
-- -- -- 409,696 214,472 20
1,680,565

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

288,973 -- -- -- --
34,476 6,773,651 2,920,645
10,017,745

138,503 -- --
238 250,468
-- 136,904
401
526,514

196,359 -- --
90,380 820,559
60,652 4,902,767
55,157
6,125,874

-- -- -- -- 249,979 -- 1,697,582 457
1,948,018

-- -- 2,862,971 189,071 1,007,122 -- 5,988,505 --
10,047,669

78,511 -- -- --
152,574 --
343,306 155
574,546

Operating Income (Loss)

3,826,813

(284,693)

6,006,158

8,957,655

(1,447,719)

1,106,019

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

--
-- -- -- -- 48,742 (3,230,936) --
(3,182,194)

--
-- -- -- -- 679,261 -- (22,373)
656,888

--
-- -- -- -- 4,789,364 (4,192,793) (1,979,146)
(1,382,575)

--
-- -- -- -- 330,169 (5,261,844) 2,946,555
(1,985,120)

--
-- -- -- -- 521,623 (8,769) --
512,854

--
-- -- -- -- (24,109) (841,810) --
(865,919)

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

644,619

372,195

4,623,583

6,972,535

(934,865)

240,100

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

581,099

1,185,205

162,420

158,623

--

--

--

--

--

--

581,099

1,185,205

162,420

158,623

-- -- -- 10,621 --
10,621

Change in Net Position

644,619

953,294

5,808,788

7,134,955

(776,242)

250,721

Net Position, Beginning of Year, Restated

28,603,043

8,291,173

28,518,525

6,740,508

21,818,385

3,929,624

Net Position-End of Year

$

29,247,662 $

9,244,467 $

34,327,313 $

13,875,463 $

21,042,143 $

4,180,345

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2018 Annual Financial Report 207

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) FOR FISCAL YEAR ENDED JUNE 30, 2018

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Rents and Royalties Auxiliary Enterprises Food Services Health Services Intercollegiate Athletics Gifts and Contributions Endowment Income Other Operating Revenues
Total Operating Revenues

Georgia Southern University Athletic Foundation, Inc.

Georgia Southern University
Foundation, Inc.

Georgia Southern Housing Foundation,
Inc.

Georgia Southern University Research
& Service Foundation, Inc.

Georgia Southwestern State
University Foundation, Inc.

Georgia State University Alumni Association, Inc.

$

--$

--

--

--

1,336,675

--$ -- -- -- --

--$ -- -- -- 9,899,969

4,395,877 $ 338,235
10,485,993 -- --

--$ -- -- -- 2,459,037

-- -- -- 4,165,229 123,937 4,051
5,629,892

-- -- -- 5,279,054 2,726,726 569,396
8,575,176

-- -- -- -- -- 7,637,541
17,537,510

-- -- -- -- -- 2,449
15,222,554

-- -- -- 2,462,512 -- 543,455
5,465,004

-- -- -- 490,583 --
-- -- -- 96,939 -- 85,703
673,225

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

1,561,942 20,273 33,882 --
950,150 --
912,706 321,992
3,800,945

4,173,306 -- --
138,273 1,992,915
-- 1,160,291
17,714
7,482,499

-- -- 329,635 -- -- -- 4,199,053 --
4,528,688

-- -- 88,624 4,492 -- -- 15,088,268 --
15,181,384

118,468 20,773 -- 16,319
1,183,432 --
8,422,887 --
9,761,879

-- -- -- -- 48,361 -- 669,355 --
717,716

Operating Income (Loss)

1,828,947

1,092,677

13,008,822

41,170

(4,296,875)

(44,491)

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

--
-- -- -- -- 21,741 (868,205) --
(846,464)

--
-- -- -- -- 861,883 (5,645) --
856,238

--
-- -- -- -- 587,495 (8,262,293) --
(7,674,798)

--
-- -- -- -- 3,624 -- --
3,624

--
-- -- -- -- 2,372,800 -- 3,849,500
6,222,300

--
-- -- -- -- 69,642 -- --
69,642

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

982,483

1,948,915

5,334,024

44,794

1,925,425

25,151

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

238,979

600,277

--

--

215,316

--

--

--

--

--

--

--

238,979

600,277

--

--

215,316

--

Change in Net Position

1,221,462

2,549,192

5,334,024

44,794

2,140,741

25,151

Net Position, Beginning of Year, Restated

13,311,394

65,423,694

25,276,402

3,117,380

35,181,588

1,888,016

Net Position-End of Year

$

14,532,856 $

67,972,886 $

30,610,426 $

3,162,174 $

37,322,329 $

1,913,167

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

208 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) FOR FISCAL YEAR ENDED JUNE 30, 2018

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Rents and Royalties Auxiliary Enterprises Food Services Health Services Intercollegiate Athletics Gifts and Contributions Endowment Income Other Operating Revenues
Total Operating Revenues

Georgia State University Athletic Association, Inc.

Georgia State University
Foundation, Inc.

Georgia State University Research Foundation Inc. and
Affiliates

Georgia Tech Alumni Association

Georgia Tech Athletic Association

Georgia Tech Facilities, Inc.

$

--$

--$

74,603,709 $

--

--

1,537,339

--

--

18,467,719

3,000,241

--

--

640,717

17,375,554

93,996

-- -- -- 36,074,116 -- 4,052,973
43,768,047

-- -- -- 22,247,918 6,371,836 1,544,394
47,539,702

-- -- -- -- -- 3,032,914
97,735,677

--$ -- -- 1,559,536 201,564
-- -- -- 5,385,294 -- 11,223
7,157,617

--$ -- -- 64,095,182 9,442,347
-- -- -- 2,745,332 -- --
76,282,861

-- -- 23,146,940 128,535 14,125,565
-- -- -- -- -- 29,205
37,430,245

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

10,553,507 279,987 -- 379,662
7,459,242 141,190
13,722,507 70,338
32,606,433

2,251,315 -- --
1,076,496 7,395,350
-- 28,398,259
591,008
39,712,428

-- -- -- 97,771 -- 7,720 93,899,206 708,822
94,713,519

3,533,056 935,695 -- 259,220 21,100 --
1,951,648 73,687
6,774,406

-- -- -- 4,450,024 11,472,295 -- 53,116,718 7,496,855
76,535,892

-- -- -- -- -- 193,750 904,578 60,000
1,158,328

Operating Income (Loss)

11,161,614

7,827,274

3,022,158

383,211

(253,031)

36,271,917

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

--

--

--

--

--

--

--

--

--

--

--

--

--

--

(281,669)

--

8,147,416

741,809

--

(1,381,634)

(2,687,677)

--

--

663,433

--

6,765,782

(1,564,104)

--
-- -- -- -- 5,604 -- --
5,604

--
-- -- -- 813,928 9,868,946 (12,540,627) --
(1,857,753)

--
-- -- -- -- 216,576 (12,417,915) --
(12,201,339)

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

11,161,614

14,593,056

1,458,054

388,815

(2,110,784)

24,070,578

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

10,292,240

--

--

--

--

--

2,618,107

--

--

--

--

--

--

--

--

--

--

--

12,910,347

--

Change in Net Position

11,161,614

14,593,056

1,458,054

388,815

10,799,563

24,070,578

Net Position, Beginning of Year, Restated

3,966,226

255,866,597

24,967,380

254,830

61,338,889

21,176,206

Net Position-End of Year

$

15,127,840 $

270,459,653 $

26,425,434 $

643,645 $

72,138,452 $

45,246,784

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2018 Annual Financial Report 209

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) FOR FISCAL YEAR ENDED JUNE 30, 2018

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Rents and Royalties Auxiliary Enterprises Food Services Health Services Intercollegiate Athletics Gifts and Contributions Endowment Income Other Operating Revenues
Total Operating Revenues

Georgia Tech Foundation, Inc.

Georgia Tech Global, Inc.

Georgia Tech Research Corporation

Global Center for Medical Innovation

Gordon State College Foundation, Inc. & Subsidiaries

IgniteHQ

$

--$

--

--

19,000

29,637,000

-- -- -- 41,263,000 -- --
70,919,000

--$ -- -- -- --
-- -- -- 365,482 -- --
365,482

656,384,430 $ 7,887,371
90,935,250 --
13,505,198
-- -- -- -- -- --
768,712,249

100,900 $ -- --
3,435,858 --
-- -- -- 10,798,182 -- --
14,334,940

--$ -- -- -- 2,872,571
-- -- -- 256,469 -- 39,522
3,168,562

-- -- 754,033 -- --
-- -- -- 17,182 -- 98,490
869,705

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

4,410,000 897,000 603,000 123,000 -- 744,000
101,601,000 4,107,000
112,485,000

-- -- 60,664 -- -- -- 94,133 --
154,797

-- -- -- 117,632 -- -- 760,462,694 308,743
760,889,069

1,746,883 500,318 230,468 76,869 -- 99,098
1,415,049 491,043
4,559,728

-- -- -- -- 318,138 -- 149,848 --
467,986

351,151 -- -- -- -- --
405,573 --
756,724

Operating Income (Loss)

(41,566,000)

210,685

7,823,180

9,775,212

2,700,576

112,981

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

147,748,161

--

299,668

950

484,326

--

(12,244,000)

--

--

(2,110)

(1,941,393)

--

--

(145,435)

36,447

--

--

--

135,504,161

(145,435)

336,115

(1,160)

(1,457,067)

--

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

93,938,161

65,250

8,159,295

9,774,052

1,243,509

112,981

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

39,690,000

--

--

--

--

--

--

--

--

--

--

--

39,690,000

--

--

--

--

--

Change in Net Position

133,628,161

65,250

8,159,295

9,774,052

1,243,509

112,981

Net Position, Beginning of Year, Restated

1,540,793,000

115,410

56,120,173

1,166,842

12,762,467

1,236,431

Net Position-End of Year

$

1,674,421,161 $

180,660 $

64,279,468 $

10,940,894 $

14,005,976 $

1,349,412

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

210 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) FOR FISCAL YEAR ENDED JUNE 30, 2018

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Rents and Royalties Auxiliary Enterprises Food Services Health Services Intercollegiate Athletics Gifts and Contributions Endowment Income Other Operating Revenues
Total Operating Revenues

James M. Dye Foundation, Inc.

Kennesaw State University Alumni Association, Inc.

Kennesaw State University Athletic Association, Inc.

Kennesaw State University
Foundation, Inc.

Kennesaw State University Research
& Service Foundation, Inc.

Medical College of Georgia Foundation

$

--$

--$

--$

--$

4,893,310 $

--

--

--

--

--

--

--

--

--

805,805

--

1,788,344

--

--

--

--

518,047

823,882

--

--

--

--

44,537,667

48,974

54,287

-- -- -- 56,425 -- --$
56,425

-- -- -- -- -- 83,679
83,679

-- -- 2,781,783 6,343,089 -- 1,409,158
11,339,835

-- -- -- 8,189,839 1,458,003 --
54,703,556

-- -- -- 631,737 -- 64,750
8,250,997

-- -- -- 2,085,115 -- 1,208,708
3,348,110

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

-- -- -- -- 107,935 -- -- --
107,935

377,556 -- --
1,829 3,500
-- 91,680
--
474,565

543,343 -- --
536,531 1,032,632
-- 7,161,856
393,048
9,667,410

2,560,101 --
61,564 14,499 1,717,943 3,089,441 14,726,215 5,117,855
27,287,618

3,390,741 --
2,929,508 311,975 -- --
2,203,564 --
8,835,788

784,356 128,677
-- 33,306 1,804,722 28,486 6,916,596 57,305
9,753,448

Operating Income (Loss)

(51,510)

(390,886)

1,672,425

27,415,938

(584,791)

(6,405,338)

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

--
-- -- -- -- 130,634 -- --
130,634

--
-- -- -- 409,031 752 -- --
409,783

--
-- -- -- -- -- 5,788 --
5,788

--
-- -- -- -- 2,397,293 (14,203,670) --
(11,806,377)

--
-- -- -- -- 64,963 -- --
64,963

--
-- -- -- -- 19,808,102 -- --
19,808,102

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

79,124

18,897

1,678,213

15,609,561

(519,828)

13,402,764

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

43,677

--

--

2,479,301

--

1,864,565

--

--

--

(4,795,955)

--

--

Total Other Revenues, Expenses, Gains or Losses

43,677

--

--

(2,316,654)

--

1,864,565

Change in Net Position

122,801

18,897

1,678,213

13,292,907

(519,828)

15,267,329

Net Position, Beginning of Year, Restated

2,355,932

391,574

3,699,504

60,616,695

2,711,980

242,386,004

Net Position-End of Year

$

2,478,733 $

410,471 $

5,377,717 $

73,909,602 $

2,192,152 $

257,653,333

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2018 Annual Financial Report 211

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) FOR FISCAL YEAR ENDED JUNE 30, 2018

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Rents and Royalties Auxiliary Enterprises Food Services Health Services Intercollegiate Athletics Gifts and Contributions Endowment Income Other Operating Revenues
Total Operating Revenues

Middle Georgia State University
Foundation, Inc. & Subsidiaries

Middle Georgia State University Real
Estate Foundation, Inc.

Savannah State University
Foundation, Inc. & Subsidiaries

South Georgia State College Foundation, Inc. & Subsidiaries

Southern Polytechnic Applied
Research Corporation

University of Georgia Athletic Association,
Inc.

$

--$

--$

--$

--

--

--

--

--

--

--

--

--

--

4,987,537

4,946,602

-- -- -- 1,136,050 -- 125,804
1,261,854

-- -- -- -- -- 6,041
4,993,578

-- -- -- 320,221 -- --
5,266,823

--$ -- -- -- --
-- -- -- 159,432 -- --
159,432

61,749 $ 117,158
46,907 -- --
-- -- -- -- -- 32,150
257,964

-- -- -- -- --
-- -- 145,102,432 -- -- --
145,102,432

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

-- -- -- -- 367,543 -- 1,217,628 --
1,585,171

-- -- -- -- -- -- 8,592,512 --
8,592,512

-- -- -- -- 91,950 -- 1,036,616 --
1,128,566

-- -- -- -- 1,816,843 -- -- --
1,816,843

-- -- -- -- -- -- 637,272 --
637,272

17,379,558 495,620 --
10,934,918 -- --
100,965,659 10,278,367
140,054,122

Operating Income (Loss)

(323,317)

(3,598,934)

4,138,257

(1,657,411)

(379,308)

5,048,310

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

--
-- -- -- -- 1,374,924 -- --
1,374,924

--
-- -- -- -- 300,970 (4,475,087) --
(4,174,117)

--
-- -- -- -- 16,394 (1,576,576) --
(1,560,182)

--
-- -- -- -- 108,326 522,501 --
630,827

--
-- -- -- -- -- -- (254,238)
(254,238)

--
-- -- -- 27,020,882 3,357,675 (3,323,491) (18,690)
27,036,376

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

1,051,607

(7,773,051)

2,578,075

(1,026,584)

(633,546)

32,084,686

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

502,351

--

--

9,625

--

--

--

--

--

--

--

--

502,351

--

--

9,625

--

--

Change in Net Position

1,553,958

(7,773,051)

2,578,075

(1,016,959)

(633,546)

32,084,686

Net Position, Beginning of Year, Restated

11,634,440

14,467,634

1,651,850

6,693,302

719,217

238,003,989

Net Position-End of Year

$

13,188,398 $

6,694,583 $

4,229,925 $

5,676,343 $

85,671 $

270,088,675

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

212 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) FOR FISCAL YEAR ENDED JUNE 30, 2018

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Rents and Royalties Auxiliary Enterprises Food Services Health Services Intercollegiate Athletics Gifts and Contributions Endowment Income Other Operating Revenues
Total Operating Revenues

University of Georgia Foundation

University of Georgia Research
Foundation, Inc.

University of North Georgia Foundation
- Dahlonega, Inc.

University of North Georgia Real Estate
Foundation, Inc.

University of West Georgia Athletic Foundation, Inc.

University of West Georgia Foundation,
Inc.

$

--$

--$

--

--

--

180,061,965

9,664,456

--

1,161,698

27,740,812

-- -- -- 71,836,680 -- --
82,662,834

-- -- -- -- -- --
207,802,777

--$ -- -- -- 71,605
-- -- -- 5,646,522 2,305,423 --
8,023,550

--$ -- -- -- 8,438,432
-- -- -- 168,477 -- 636
8,607,545

--$ -- -- -- --
-- -- 349,928 764,688 -- 100,456
1,215,072

-- -- -- 100,000 3,277,649
-- -- -- 8,371,639 611,940 1,289
12,362,517

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

447,708 -- --
904,110 63,000 --
105,908,900 1,334,098
108,657,816

-- -- -- -- -- -- 198,862,595 114,739
198,977,334

-- -- -- -- 2,483,385 -- 1,738,189 41,340
4,262,914

-- -- -- -- -- -- 947,587 123,290
1,070,877

245,162 --
70,905 17,103 16,500
-- 1,036,531
--
1,386,201

1,630,601 -- --
85,463 1,331,486
-- 2,999,950
--
6,047,500

Operating Income (Loss)

(25,994,982)

8,825,443

3,760,636

7,536,668

(171,129)

6,315,017

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

--
-- -- -- -- 84,594,622 940,830 (2,373,000)
83,162,452

--
-- -- -- -- 846,993 (10,613,517) 955,000
(8,811,524)

--
-- -- -- -- 3,357,143 (90,364) --
3,266,779

--
-- -- -- -- 143,280 (5,629,528) --
(5,486,248)

--
-- -- -- -- 46,759 -- --
46,759

--
-- -- -- -- 1,969,985 (2,343,074) 26,232
(346,857)

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

57,167,470

13,919

7,027,415

2,050,420

(124,370)

5,968,160

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses

-- -- -- 55,915,213 --
55,915,213

-- -- -- -- (354,800)
(354,800)

-- -- -- 770,159 --
770,159

-- -- -- -- (2,734,622)
(2,734,622)

--

--

--

--

--

--

--

841,758

--

--

--

841,758

Change in Net Position

113,082,683

(340,881)

7,797,574

(684,202)

(124,370)

6,809,918

Net Position, Beginning of Year, Restated

1,122,855,779

93,354,632

60,541,015

8,741,062

1,532,674

44,752,375

Net Position-End of Year

$

1,235,938,462 $

93,013,751 $

68,338,589 $

8,056,860 $

1,408,304 $

51,562,293

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2018 Annual Financial Report 213

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) FOR FISCAL YEAR ENDED JUNE 30, 2018

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Rents and Royalties Auxiliary Enterprises Food Services Health Services Intercollegiate Athletics Gifts and Contributions Endowment Income Other Operating Revenues
Total Operating Revenues

University of West Georgia Real Estate
Foundation, Inc.

University System of of Georgia
Foundation, Inc. & Affiliates

Valdosta State University Auxiliary Services Real Estate
Foundation

Valdosta State University
Foundation, Inc.

Walter & Emilie Spivey Foundation

Total All CU's & Affiliated
Organizations

$

--$

--$

--$

--

--

--

--

6,197

--

--

662,521

--

5,853,649

16,195,671

6,525,396

--$ -- -- 430,219 508,929

-- -- -- -- -- 439,773
6,293,422

-- -- -- 1,140,827 523,103 7,905,032
26,433,351

-- -- -- 95,811 -- 997,894
7,619,101

-- -- -- 1,401,409 -- 23,555
2,364,112

--$ -- -- -- --

795,691,634 9,880,103
338,506,647 918,055,160 273,338,022

-- -- -- -- -- 129,685
129,685

2,051,622 --
148,234,143 277,602,214
24,526,211 35,964,923
2,823,850,679

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

-- -- -- -- -- -- 161,346 --
161,346

347,818 -- --
29,482 1,572,199
-- 1,305,463
--
3,254,962

-- -- -- -- -- -- 1,057,665 --
1,057,665

-- -- 34,675 105,332 1,081,099 -- 2,629,107 228,388
4,078,601

-- -- -- -- -- -- 255,292 --
255,292

338,453,658 37,623,370
149,902,949 23,661,070 53,389,669 8,859,656
1,981,799,518 74,326,565
2,668,016,455

Operating Income (Loss)

6,132,076

23,178,389

6,561,436

(1,714,489)

(125,607)

155,834,224

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

--
-- -- -- -- 145,203 (5,054,010) --
(4,908,807)

--
-- -- -- -- (33,889) (9,467,404) --
(9,501,293)

--
-- -- -- -- 117,980 (6,136,629) --
(6,018,649)

--
-- -- -- -- 4,419,605 102,932 --
4,522,537

--
-- -- -- -- 657,087 -- (81,598)
575,489

29,932,138
3,083,581 3,227,028
-- 27,962,172 326,453,767 (151,170,162) (3,804,843)
235,683,681

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

1,223,269

13,677,096

542,787

2,808,048

449,882

391,517,905

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses

--

--

--

--

--

--

--

61,450

--

--

--

61,450

--

--

--

--

--

--

--

4,144,769

--

--

--

4,144,769

--

--

--

--

--

10,107,077

--

118,090,730

--

(16,374,174)

--

111,823,633

Change in Net Position

1,223,269

13,738,546

542,787

6,952,817

449,882

503,341,538

Net Position, Beginning of Year, Restated

3,522,149

1,455,188

6,881,231

43,272,367

6,524,481

4,795,074,675

Net Position-End of Year

$

4,745,418 $

15,193,734 $

7,424,018 $

50,225,184 $

6,974,363 $

5,298,416,213

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

214 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA NOTES TO STATEMENT OF NET POSITION AND STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) FOR FISCAL YEAR ENDED JUNE 30, 2018
Fiscal Year End for a few of the affiliated organizations differ from the June 30, 2018 Year End. The following organizations have a Fiscal Year End of July 31, 2017: Columbus State University Alumni Association, Inc. Columbus State University Athletic Fund, Inc. Columbus State University Foundation, Inc. Columbus State University Research & Service Foundation, Inc. Foundation Properties, Inc. The following organizations have a Fiscal Year End of December 31, 2017: Armstrong State University Educational Properties Foundation, Inc & Subsidiaries College of Coastal Georgia Foundation, Inc. Dalton State College Foundation, Inc. Global Center for Medical Innovation Gordon State College Foundation, Inc. & Subsidiaries Middle Georgia State University Foundation, Inc. & Subsidiaries Valdosta State University Foundation, Inc. VSU Auxiliary Services Real Estate Foundation, Inc. Walter & Emilie Spivey Foundation The following organization has a Fiscal Year End of March 31, 2018: Dalton State College Athletic Club
As of the release of this report, financial statements were not available for the following organizations. Balances from a prior year are reported as indicated below.
Fort Valley State University Foundation, Inc. reported fiscal year 2017 balances. Gordon State College Foundation, Inc. & Subsidiaries reported fiscal year 2017 balances. Southern Polytechnic Applied Research Corporation reported fiscal year 2016 balances.
2018 Annual Financial Report 215

216 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA BALANCE SHEET (NON-GAAP BASIS) BUDGET FUNDS JUNE 30, 2018 (Unaudited)

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Federal Financial Assistance Other Prepaid Expenditures Inventories Other Assets

$

803,536,360.14

94,085,598.11

171,009,392.96 251,140,854.65
21,123,595.25 5,352,353.31
11,317,775.43

Total Assets

$

1,357,565,929.85

LIABILITIES AND FUND EQUITY Liabilities
Accounts Payable Encumbrances Payable Salaries Payable Deferred Revenue Other Liabilities

$

126,574,481.22

380,884,961.46

21,485,992.25

260,113,462.79

3,902,753.60

Total Liabilities

792,961,651.32

Fund Balances Reserved Capital Outlay Department Sales and Services Indirect Cost Recoveries Technology Fees Restricted/Sponsored Funds Uncollectible Accounts Receivable Inventories Tuition Carry - Forward Property Reserves Surplus

9,661,050.44 122,868,714.79 169,661,411.47
29,493,955.59 150,518,598.28
25,619,774.96 3,061,893.17
41,680,322.88 8,787,111.43 3,251,445.52

Total Fund Balances

564,604,278.53

Total Liabilities and Fund Balances

$

1,357,565,929.85

Actual amounts were prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a special purpose framework.

2018 Annual Financial Report 217

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE (Unaudited) BUDGET FUND FOR THE FISCAL YEAR ENDED JUNE 30. 2018

Regents, University System of Georgia Agricultural Experiment Station
State Appropriation State General Funds
Other Funds

Original Appropriation

Amended Appropriation

Final Budget

Funds Available Compared to Budget

Current Year Revenues

Prior Year Reserve Carry-Over

$ 45,107,031.00 $ 45,107,031.00 $ 45,107,031.00 $ 45,107,031.00 $

--

37,552,919.00

37,552,919.00

62,539,004.00

54,800,642.37

22,722,323.01

Total Agricultural Experiment Station

82,659,950.00

82,659,950.00

107,646,035.00

99,907,673.37

22,722,323.01

Athens and Tifton Vet Laboratories State Appropriation Other Funds

6,511,331.00

6,609,688.00

7,547,227.00

7,191,026.46

794,214.26

Cooperative Extension Service State Appropriation State General Funds Other Funds

39,842,725.00 31,333,929.00

39,907,321.00 31,333,929.00

39,907,321.00 43,608,198.00

39,907,321.00 37,536,989.22

-- 6,165,980.18

Total Cooperative Extension Service

71,176,654.00

71,241,250.00

83,515,519.00

77,444,310.22

6,165,980.18

Enterprise Innovation Institute State Appropriation State General Funds Other Funds

19,510,493.00 10,900,000.00

19,510,493.00 10,900,000.00

19,510,493.00 15,907,214.00

19,510,493.00 13,456,932.77

-- 74,226.36

Total Enterprise Innovation Institute

30,410,493.00

30,410,493.00

35,417,707.00

32,967,425.77

74,226.36

Forestry Cooperative Extension State Appropriation State General Funds Other Funds

983,248.00 575,988.00

983,248.00 575,988.00

983,248.00 766,153.00

983,248.00 584,497.54

-- 235,485.58

Total Forestry Cooperative Extension

1,559,236.00

1,559,236.00

1,749,401.00

1,567,745.54

235,485.58

Forestry Research State Appropriation State General Funds Other Funds

2,908,323.00 10,250,426.00

2,908,323.00 10,250,426.00

2,908,323.00 11,361,032.00

2,908,323.00 10,621,451.52

-- 2,444,319.31

Total Forestry Research

13,158,749.00

13,158,749.00

14,269,355.00

13,529,774.52

2,444,319.31

Georgia Archives State Appropriation State General Funds Other Funds

4,720,507.00 894,417.00

4,720,507.00 883,030.00

4,720,507.00 1,388,695.00

4,720,507.00 834,901.97

-- 1,161,082.52

Total Georgia Archives

5,614,924.00

5,603,537.00

6,109,202.00

5,555,408.97

1,161,082.52

Georgia Radiation Therapy Center Other Funds

$ 4,236,754.00 $

--$

--$

--$

--

Actual amounts were prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a special purpose framework.

218 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE (Unaudited) BUDGET FUND FOR THE FISCAL YEAR ENDED JUNE 30. 2018

Regents, University System of Georgia Agricultural Experiment Station
State Appropriation State General Funds
Other Funds

Funds Available Compared to Budget

Program Transfers or Adjustments

Total Funds Available

Variance Positive (Negative)

Expenditures Compared to Budget

Current Year Actual

Variance Positive (Negative)

Excess (Deficiency) of Funds Available
Over/(Under) Expenditures

$

-- $ 45,107,031.00 $

-- $ 45,107,031.00 $

--$

--

--

77,522,965.38

14,983,961.38

52,421,494.18

10,117,509.82

25,101,471.20

Total Agricultural Experiment Station

--

122,629,996.38

14,983,961.38

97,528,525.18

10,117,509.82

25,101,471.20

Athens and Tifton Veterinary Laboratories State Appropriation State General Funds Other Funds

--

--

--

7,985,240.72

-- 438,013.72

-- 6,998,242.69

-- 548,984.31

-- 986,998.03

Cooperative Extension Service State Appropriation State General Funds Other Funds

--

39,907,321.00

--

43,702,969.40

-- 94,771.40

39,907,321.00 37,040,395.47

-- 6,567,802.53

-- 6,662,573.93

Total Cooperative Extension Service

--

83,610,290.40

94,771.40

76,947,716.47

6,567,802.53

6,662,573.93

Enterprise Innovation Institute State Appropriation State General Funds Other Funds

--

19,510,493.00

--

13,531,159.13

-- (2,376,054.87)

19,510,492.72 13,300,664.49

0.28 2,606,549.51

0.28 230,494.64

Total Enterprise Innovation Institute

--

33,041,652.13

(2,376,054.87)

32,811,157.21

2,606,549.79

230,494.92

Forestry Cooperative Extension State Appropriation State General Funds Other Funds

--

983,248.00

--

819,983.12

-- 53,830.12

983,248.00 520,653.97

-- 245,499.03

-- 299,329.15

Total Forestry Cooperative Extension

--

1,803,231.12

53,830.12

1,503,901.97

245,499.03

299,329.15

Forestry Research State Appropriation State General Funds Other Funds

--

2,908,323.00

--

13,065,770.83

-- 1,704,738.83

2,908,323.00 10,519,857.39

-- 841,174.61

-- 2,545,913.44

Total Forestry Research

--

15,974,093.83

1,704,738.83

13,428,180.39

841,174.61

2,545,913.44

Georgia Archives State Appropriation State General Funds Other Funds

--

4,720,507.00

--

1,995,984.49

-- 607,289.49

4,720,507.00 1,281,507.18

-- 107,187.82

-- 714,477.31

Total Georgia Archives

--

6,716,491.49

607,289.49

6,002,014.18

107,187.82

714,477.31

Georgia Radiation Therapy Center

State Appropriation

Other Funds

$

--$

--$

--$

--$

--$

--

Actual amounts were prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a special purpose framework.

2018 Annual Financial Report 219

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE (Unaudited) BUDGET FUND FOR THE FISCAL YEAR ENDED JUNE 30. 2018

Regents, University System of Georgia Georgia Research Alliance
State General Funds

Original Appropriation

Amended Appropriation

Final Budget

Funds Available Compared to Budget

Current Year Revenues

Prior Year Reserve Carry-Over

$ 5,105,243.00 $ 5,105,243.00 $ 5,105,243.00 $ 5,105,243.00 $

--

Georgia Tech Research Institute State Appropriation State General Funds Other Funds

6,072,039.00 406,225,535.00

6,072,039.00 406,225,535.00

6,072,039.00 447,121,250.00

6,072,039.00 442,027,951.05

-- 2,897,850.88

Total Georgia Tech Research Institute

412,297,574.00

412,297,574.00

453,193,289.00

448,099,990.05

2,897,850.88

Marine Institute State Appropriation State General Funds Other Funds

993,619.00 486,281.00

993,619.00 486,281.00

993,619.00 645,445.00

993,619.00 430,656.06

-- 509,575.37

Total Marine Institute

1,479,900.00

1,479,900.00

1,639,064.00

1,424,275.06

509,575.37

Marine Resources Extension Center State Appropriation State General Funds Other Funds

1,522,189.00 1,345,529.00

1,522,189.00 1,345,529.00

1,522,189.00 1,770,529.00

1,522,189.00 1,317,637.94

-- 191,277.40

Total Marine Resources Extension Center

2,867,718.00

2,867,718.00

3,292,718.00

2,839,826.94

191,277.40

Medical College of Georgia Hospital and Clinics State Appropriation State General Funds

30,392,211.00

30,392,211.00

30,392,211.00

30,392,211.00

--

Public Libraries State Appropriation State General Funds Other Funds

37,205,936.00

37,205,936.00

37,205,936.00

37,205,936.00

--

4,638,252.00

4,287,961.00

4,776,586.00

4,435,813.22

--

Total Public Libraries

41,844,188.00

41,493,897.00

41,982,522.00

41,641,749.22

--

Public Service / Special Funding Initiatives State Appropriation State General Funds State Funds - Prior Year Carry-Over State General Funds - Prior Year Other Funds

24,997,015.00
-- --

35,072,015.00
-- --

35,072,015.00
3,700,782.00 --

35,072,015.00
-- --

--
3,700,782.22 --

Total Public Service / Special Funding Initiatives

24,997,015.00

35,072,015.00

38,772,797.00

35,072,015.00

3,700,782.22

Regents Central Office State Appropriation State General Funds Other Funds

12,250,625.00 --

12,270,277.00 --

12,270,277.00 410,000.00

12,270,277.00 783,318.41

-- 4,249,708.52

Total Regents Central Office

$ 12,250,625.00 $ 12,270,277.00 $ 12,680,277.00 $ 13,053,595.41 $ 4,249,708.52

Actual amounts were prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a special purpose framework.

220 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE (Unaudited) BUDGET FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2018

Regents, University System of Georgia Georgia Research Alliance
State General Funds

Funds Available Compared to Budget

Program Transfers or Adjustments

Total Funds Available

Variance Positive (Negative)

Expenditures Compared to Budget

Current Year Actual

Variance Positive (Negative)

Excess (Deficiency) of Funds Available
Over/(Under) Expenditures

$

-- $ 5,105,243.00 $

-- $ 5,105,243.00 $

--$

--

Georgia Tech Research Institute State Appropriation State General Funds Other Funds

--

6,072,039.00

--

444,925,801.93

-- (2,195,448.07)

6,072,039.00 442,630,335.15

-- 4,490,914.85

-- 2,295,466.78

Total Georgia Tech Research Institute

--

450,997,840.93

(2,195,448.07)

448,702,374.15

4,490,914.85

2,295,466.78

Marine Institute State Appropriation State General Funds Other Funds

--

993,619.00

--

993,619.00

--

--

--

940,231.43

294,786.43

200,037.02

445,407.98

740,194.41

Total Marine Institute

--

1,933,850.43

294,786.43

1,193,656.02

445,407.98

740,194.41

Marine Resources Extension Center State Appropriation State General Funds Other Funds

--

1,522,189.00

--

1,508,915.34

-- (261,613.66)

1,522,189.00 1,221,937.97

-- 548,591.03

-- 286,977.37

Total Marine Resources Extension Center

--

3,031,104.34

(261,613.66)

2,744,126.97

548,591.03

286,977.37

Medical College of Georgia Hospital and Clinics

State Appropriation

State General Funds

--

30,392,211.00

--

30,392,211.00

--

--

Public Libraries/Special Funding Initiatives State Appropriation State General Funds Other Funds

--

37,205,936.00

--

4,435,813.22

-- (340,772.78)

37,175,885.39 4,435,813.22

30,050.61 340,772.78

30,050.61 --

Total Public Libraries

--

41,641,749.22

(340,772.78)

41,611,698.61

370,823.39

30,050.61

Public Service / Special Funding Initiatives State Appropriation State General Funds State Funds - Prior Year Carry-Over State General Funds - Prior Year Other Funds

--

35,072,015.00

3,700,782.22

--

--

--

35,069,611.10

0.22

963,019.85

--

--

2,403.90
2,737,762.15 --

2,403.90
2,737,762.37 --

Total Public Service / Special Funding Initiatives

--

38,772,797.22

0.22

36,032,630.95

2,740,166.05

2,740,166.27

Regents Central Office State Appropriation State General Funds Other Funds

--

12,270,277.00

5,033,026.93

-- 4,623,026.93

12,255,864.40 320,378.44

14,412.60 89,621.56

14,412.60 4,712,648.49

Total Regents Central Office

$

-- $ 17,303,303.93 $ 4,623,026.93 $ 12,576,242.84 $

104,034.16 $ 4,727,061.09

Actual amounts were prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a special purpose framework.

2018 Annual Financial Report 221

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE (Unaudited) BUDGET FUND FOR THE FISCAL YEAR ENDED JUNE 30. 2018

Regents, University System of Georgia Skidaway Institute of Oceanography
State Appropriation State General Funds
Other Funds

Original Appropriation

Amended Appropriation

Final Budget

Funds Available Compared to Budget

Current Year Revenues

Prior Year Reserve Carry-Over

$ 1,388,024.00 $ 1,388,024.00 $ 1,388,024.00 $ 1,388,024.00 $

3,800,620.00

3,900,620.00

5,837,676.00

4,912,056.96

-- 800,508.69

Total Skidaway Institute of Oceanography

5,188,644.00

5,288,644.00

7,225,700.00

6,300,080.96

800,508.69

Teaching State Appropriation State General Funds Other Funds

2,047,001,762.00 4,689,257,707.00

2,049,128,886.00 4,857,951,814.00

2,049,128,886.00 5,472,694,420.00

2,049,128,886.00 4,888,920,085.41

-- 436,508,337.75

Total Teaching

6,736,259,469.00

6,907,080,700.00

7,521,823,306.00

6,938,048,971.41

436,508,337.75

Veterinary Medicine Experiment Station State Appropriation State General Funds

3,209,528.00

2,989,260.00

2,989,260.00

2,989,260.00

--

Veterinary Medicine Teaching Hospital State Appropriation State General Funds Other Funds

465,826.00 17,000,000.00

465,826.00 17,750,000.00

465,826.00 20,095,851.00

465,826.00 19,211,000.96

-- 2,345,851.19

Total Veterinary Medicine Teaching Hospital

17,465,826.00

18,215,826.00

20,561,677.00

19,676,826.96

2,345,851.19

Agencies Attached for Administrative Purposes

Payments to Georgia Military College State Appropriation State General Funds

6,162,608.00

6,176,766.00

6,176,766.00

6,176,766.00

--

Payments to Public Telecommunications Commission State Appropriation State General Funds

15,247,024.00

15,251,668.00

15,251,668.00

15,251,668.00

--

Total Operating Activity

$ 7,530,095,664.00 $ 7,707,224,602.00 $ 8,417,340,944.00 $ 7,804,235,843.86 $ 484,801,523.24

Actual amounts were prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a special purpose framework.

222 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE (Unaudited) BUDGET FUND FOR THE FISCAL YEAR ENDED JUNE 30. 2018

Regents, University System of Georgia Skidaway Institute of Oceanography
State Appropriation State General Funds
Other Funds

Funds Available Compared to Budget

Program Transfers or Adjustments

Total Funds Available

Variance Positive (Negative)

Expenditures Compared to Budget

Current Year Actual

Variance Positive (Negative)

Excess (Deficiency) of Funds Available
Over/(Under) Expenditures

$

-- $ 1,388,024.00 $

-- $ 1,388,024.00 $

--$

--

--

5,712,565.65

(125,110.35)

4,238,225.80

1,599,450.20

1,474,339.85

Total Skidaway Institute of Oceanography

--

7,100,589.65

(125,110.35)

5,626,249.80

1,599,450.20

1,474,339.85

Teaching State Appropriation State General Funds Other Funds

-- 5,789,972.99

2,049,128,886.00 5,331,218,396.15

-- (141,476,023.85)

2,049,057,484.83 4,847,725,215.33

71,401.17 624,969,204.67

71,401.17 483,493,180.82

Total Teaching

5,789,972.99

7,380,347,282.15

(141,476,023.85) 6,896,782,700.16

625,040,605.84

483,564,581.99

Veterinary Medicine Experiment Station State Appropriation State General Funds

--

2,989,260.00

--

2,989,260.00

--

--

Veterinary Medicine Teaching Hospital State Appropriation State General Funds Other Funds

--

465,826.00

--

21,556,852.15

-- 1,461,001.15

465,826.00 18,239,134.08

-- 1,856,716.92

-- 3,317,718.07

Total Veterinary Medicine Teaching Hospital

--

22,022,678.15

1,461,001.15

18,704,960.08

1,856,716.92

3,317,718.07

Agencies Attached for Administrative Purposes

Payments to Georgia Military College State Appropriation State General Funds

--

6,176,766.00

--

6,176,766.00

--

--

Payments to Public Telecommunications Commission

State Appropriation

State General Funds

--

15,251,668.00

--

15,251,668.00

--

--

Total Operating Activity

$ 5,789,972.99 $ 8,294,827,340.09 $ (122,513,603.91) $ 7,759,109,525.67 $ 658,231,418.33 $ 535,717,814.42

Actual amounts were prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a special purpose framework.

2018 Annual Financial Report 223

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE (Unaudited) BUDGET FUND FOR THE FISCAL YEAR ENDED JUNE 30. 2018
Regents, University System of Georgia Agricultural Experiment Station
State Appropriation State General Funds
Other Funds

Beginning Fund Balance/(Deficit)
July 1

Fund Balance Carried Over from
Prior Year as Funds Available

Return of Fiscal Year 2017
Surplus

Prior Year Adjustments

Other Adjustments

$

32,382.13 $

--$

22,722,323.01

(22,722,323.01)

(32,382.13) $ --

121,331.98 $ 23,955.70

-- 122.56

Total Agricultural Experiment Station

22,754,705.14

(22,722,323.01)

(32,382.13)

145,287.68

122.56

Athens and Tifton Vet Laboratories Other Funds

794,214.26

(794,214.26)

--

5,668.92

--

Cooperative Extension Service State Appropriation State General Funds Other Funds

21,442.08

--

(21,442.08)

67,183.09

--

6,165,980.18

(6,165,980.18)

--

35,488.56

--

Total Cooperative Extension Service

6,187,422.26

(6,165,980.18)

(21,442.08)

102,671.65

--

Enterprise Innovation Institute State Appropriation State General Funds Other Funds

--

--

--

74,226.36

(74,226.36)

--

--

--

--

2,956.84

Total Enterprise Innovation Institute

74,226.36

(74,226.36)

--

--

2,956.84

Forestry Cooperative Extension State Appropriation State General Funds Other Funds

516.24

--

(516.24)

503.78

--

235,485.58

(235,485.58)

--

342.67

--

Total Forestry Cooperative Extension

236,001.82

(235,485.58)

(516.24)

846.45

--

Forestry Research State Appropriation State General Funds Other Funds

2,488.79

--

(2,488.79)

11,157.04

--

2,444,319.31

(2,444,319.31)

--

18,558.15

--

Total Forestry Research

2,446,808.10

(2,444,319.31)

(2,488.79)

29,715.19

--

Georgia Archives State Appropriation State General Funds Other Funds

11.15 1,162,607.49

-- (1,161,082.52)

(11.15) (1,524.97)

5,653.71 1,399.74

-- 23,384.40

Total Georgia Archives

1,162,618.64

(1,161,082.52)

(1,536.12)

7,053.45

23,384.40

Georgia Radiation Therapy Center Other Funds

$

--$

--$

--$

--$

--

Actual amounts were prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a special purpose framework.

224 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE (Unaudited) BUDGET FUND FOR THE FISCAL YEAR ENDED JUNE 30. 2018

Regents, University System of Georgia Agricultural Experiment Station
State Appropriation State General Funds
Other Funds

Early Return of Fiscal Year 2018
Surplus

Excess (Deficiency) of Funds Available
Over/Under) Expenditures

Ending Fund Balance/(Deficit)
June 30

Analysis of Ending Fund Balance

Reserved

Surplus/(Deficit)

Total

$

--$

--$

121,331.98 $

--$

121,331.98 $

121,331.98

--

25,101,471.20

25,125,549.46

25,125,549.46

--

25,125,549.46

Total Agricultural Experiment Station

--

25,101,471.20

25,246,881.44

25,125,549.46

121,331.98

25,246,881.44

Athens and Tifton Vet Laboratories Other Funds

--

986,998.03

992,666.95

992,666.95

--

992,666.95

Cooperative Extension Service State Appropriation State General Funds Other Funds

--

--

67,183.09

--

--

6,662,573.93

6,698,062.49

6,698,062.49

67,183.09 --

67,183.09 6,698,062.49

Total Cooperative Extension Service

--

6,662,573.93

6,765,245.58

6,698,062.49

67,183.09

6,765,245.58

Enterprise Innovation Institute State Appropriation State General Funds Other Funds

--

0.28

0.28

--

--

230,494.64

233,451.48

233,451.48

0.28

0.28

--

233,451.48

Total Enterprise Innovation Institute

--

230,494.92

233,451.76

233,451.48

0.28

233,451.76

Forestry Cooperative Extension State Appropriation State General Funds Other Funds

--

--

503.78

--

--

299,329.15

299,671.82

299,671.82

503.78 --

503.78 299,671.82

Total Forestry Cooperative Extension

--

299,329.15

300,175.60

299,671.82

503.78

300,175.60

Forestry Research State Appropriation State General Funds Other Funds

--

--

11,157.04

--

--

2,545,913.44

2,564,471.59

2,564,471.59

11,157.04 --

11,157.04 2,564,471.59

Total Forestry Research

--

2,545,913.44

2,575,628.63

2,564,471.59

11,157.04

2,575,628.63

Georgia Archives State Appropriation State General Funds Other Funds

--

--

5,653.71

--

--

714,477.31

739,261.45

737,846.71

5,653.71 1,414.74

5,653.71 739,261.45

Total Georgia Archives

--

714,477.31

744,915.16

737,846.71

7,068.45

744,915.16

Georgia Radiation Therapy Center

Other Funds

$

--$

--$

--$

--$

--$

--

Actual amounts were prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a special purpose framework.

2018 Annual Financial Report 225

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE (Unaudited) BUDGET FUND FOR THE FISCAL YEAR ENDED JUNE 30. 2018
Regents, University System of Georgia Georgia Research Alliance
State General Funds

Beginning Fund Balance/(Deficit)
July 1

Fund Balance Carried Over from
Prior Year as Funds Available

Return of Fiscal Year 2017
Surplus

Prior Year Adjustments

Other Adjustments

$

--$

--$

--$

--$

--

Georgia Tech Research Institute State Appropriation State General Funds Other Funds

108.51

--

(108.51)

275.68

--

2,897,850.88

(2,897,850.88)

--

--

--

Total Georgia Tech Research Institute

2,897,959.39

(2,897,850.88)

(108.51)

275.68

--

Marine Institute State Appropriation State General Funds Other Funds

1,086.19

--

(1,086.19)

--

--

509,575.37

(509,575.37)

--

--

--

Total Marine Institute

510,661.56

(509,575.37)

(1,086.19)

--

--

Marine Resources Extension Center State Appropriation State General Funds Other Funds

554.45

--

(554.45)

5,255.66

--

191,277.40

(191,277.40)

--

1,226.50

--

Total Marine Resources Extension Center

191,831.85

(191,277.40)

(554.45)

6,482.16

--

Medical College of Georgia Hospital and Clinics State Appropriation State General Funds

--

--

--

29,016.00

--

Public Libraries State Appropriation State General Funds Other Funds

3,797.58

--

(3,797.58)

2,979.23

--

--

--

--

--

--

Total Public Libraries

3,797.58

--

(3,797.58)

2,979.23

--

Public Service / Special Funding Initiatives State Appropriation State General Funds State Funds - Prior Year Carry-over State General Funds - Prior Year Other Funds

55.74

--

(55.74)

24,169.85

--

3,769,770.18

(3,700,782.22)

(68,987.96)

16,847.11

--

--

--

--

--

--

Total Public Service / Special Funding Initiatives

3,769,825.92

(3,700,782.22)

(69,043.70)

41,016.96

--

Regents Central Office State Appropriation State General Funds Other Funds

34,609.23

--

(34,609.23)

62,415.53

--

4,249,708.52

(4,249,708.52)

--

--

--

Total Regents Central Office

$

4,284,317.75 $ (4,249,708.52) $

(34,609.23) $

62,415.53 $

--

Actual amounts were prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a special purpose framework.

226 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE (Unaudited) BUDGET FUND FOR THE FISCAL YEAR ENDED JUNE 30. 2018

Regents, University System of Georgia Georgia Research Alliance
State General Funds

Early Return of Fiscal Year 2018
Surplus

Excess (Deficiency) of Funds Available
Over/Under) Expenditures

Ending Fund Balance/(Deficit)
June 30

Analysis of Ending Fund Balance

Reserved

Surplus/(Deficit)

Total

$

--$

--$

--$

--$

--$

--

Georgia Tech Research Institute State Appropriation State General Funds Other Funds

--

--

275.68

--

--

2,295,466.78

2,295,466.78

2,295,466.78

275.68 --

275.68 2,295,466.78

Total Georgia Tech Research Institute

--

2,295,466.78

2,295,742.46

2,295,466.78

275.68

2,295,742.46

Marine Institute State Appropriation State General Funds Other Funds

--

--

--

--

--

740,194.41

740,194.41

740,194.41

--

--

--

740,194.41

Total Marine Institute

--

740,194.41

740,194.41

740,194.41

--

740,194.41

Marine Resources Extension Center State Appropriation State General Funds Other Funds

--

--

5,255.66

--

--

286,977.37

288,203.87

288,203.87

5,255.66 --

5,255.66 288,203.87

Total Marine Resources Extension Center

--

286,977.37

293,459.53

288,203.87

5,255.66

293,459.53

Medical College of Georgia Hospital and Clinics

State Appropriation

State General Funds

--

--

29,016.00

--

29,016.00

29,016.00

Public Libraries State Appropriation State General Funds Other Funds

--

30,050.61

33,029.84

--

--

--

--

33,029.84

33,029.84

--

--

--

Total Public Libraries

--

30,050.61

33,029.84

--

33,029.84

33,029.84

Public Service / Special Funding Initiatives State Appropriation State General Funds State Funds - Prior-Year Carry-over State General Funds - Prior Year Other Funds

--

2,403.90

26,573.75

--

26,573.75

26,573.75

--

2,737,762.37

2,754,609.48

1,737,762.15

1,016,847.33

2,754,609.48

--

--

--

--

--

--

Total Public Service / Special Funding Initiatives

--

2,740,166.27

2,781,183.23

1,737,762.15

1,043,421.08

2,781,183.23

Regents Central Office State Appropriation State General Funds Other Funds

--

14,412.60

76,828.13

--

--

4,712,648.49

4,712,648.49

4,712,648.49

76,828.13 --

76,828.13 4,712,648.49

Total Regents Central Office

$

-- $ 4,727,061.09 $ 4,789,476.62 $ 4,712,648.49 $

76,828.13 $ 4,789,476.62

Actual amounts were prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a special purpose framework.

2018 Annual Financial Report 227

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE (Unaudited) BUDGET FUND FOR THE FISCAL YEAR ENDED JUNE 30. 2018
Regents, University System of Georgia Skidaway Institute of Oceanography
State Appropriation State General Funds
Other Funds

Beginning Fund Balance/(Deficit)
July 1

Fund Balance Carried Over from
Prior Year as Funds Available

Return of Fiscal Year 2017
Surplus

Prior Year Adjustments

Other Adjustments

$

6,732.93 $

--$

(6,732.93) $

2,987.90 $

--

800,508.69

(800,508.69)

--

3,566.12

--

Total Skidaway Institute of Oceanography

807,241.62

(800,508.69)

(6,732.93)

6,554.02

--

Teaching State Appropriation State General Funds Other Funds

1,216,864.48 437,795,496.85

-- (436,508,337.75)

(1,216,864.48) (1,287,159.10)

1,379,047.64 (76,785.69)

(14,281.06) (1,448,500.74)

Total Teaching

439,012,361.33

(436,508,337.75)

(2,504,023.58)

1,302,261.95

(1,462,781.80)

Veterinary Medicine Experiment Station State Appropriation State General Funds

893.15

--

(893.15)

3,640.84

--

Veterinary Medicine Teaching Hospital State Appropriation State General Funds Other Funds

-- 2,345,851.19

-- (2,345,851.19)

--

--

--

--

46,892.04

(151,663.77)

Total Veterinary Medicine Teaching Hospital

2,345,851.19

(2,345,851.19)

--

46,892.04

(151,663.77)

Agencies Attached for Administrative Purposes

Payments to Georgia Military College State Appropriation State General Funds

--

--

--

--

--

Payments to Public Telecommunications Commission State Appropriation State General Funds

--

--

--

--

--

Total Operating Activity

487,480,738.92

(484,801,523.24)

(2,679,214.68)

1,792,777.75

(1,587,981.77)

Prior Year Reserves Not Available for Expenditure Inventories Uncollectible Accounts Receivable

3,351,370.34

--

--

--

(289,477.17)

23,742,316.02

--

--

--

1,877,458.94

Budget Unit Totals

$ 514,574,425.28 $ (484,801,523.24) $ (2,679,214.68) $

1,792,777.75 $

--

Actual amounts were prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a special purpose framework.

228 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE (Unaudited) BUDGET FUND FOR THE FISCAL YEAR ENDED JUNE 30. 2018

Regents, University System of Georgia Skidaway Institute of Oceanography
State Appropriation State General Funds
Other Funds

Early Return of Fiscal Year 2018
Surplus

Excess (Deficiency) of Funds Available
Over/Under) Expenditures

Ending Fund Balance/(Deficit)
June 30

Analysis of Ending Fund Balance

Reserved

Surplus/(Deficit)

Total

$

--$

--$

2,987.90 $

--$

2,987.90 $

2,987.90

--

1,474,339.85

1,477,905.97

1,477,905.97

--

1,477,905.97

Total Skidaway Institute of Oceanography

--

1,474,339.85

1,480,893.87

1,477,905.97

2,987.90

1,480,893.87

Teaching State Appropriation State General Funds Other Funds

--

71,401.17

1,436,167.75

--

--

483,493,180.82

481,967,894.39

481,554,316.37

1,436,167.75 413,578.02

1,436,167.75 481,967,894.39

Total Teaching

--

483,564,581.99

483,404,062.14

481,554,316.37

1,849,745.77

483,404,062.14

Veterinary Medicine Experiment Station State Appropriation State General Funds

--

--

3,640.84

--

3,640.84

3,640.84

Veterinary Medicine Teaching Hospital State Appropriation State General Funds Other Funds

--

--

--

--

--

3,317,718.07

3,212,946.34

3,212,946.34

--

--

--

3,212,946.34

Total Veterinary Medicine Teaching Hospital

--

3,317,718.07

3,212,946.34

3,212,946.34

--

3,212,946.34

Agencies Attached for Administrative Purposes

Payments to Georgia Military College State Appropriation State General Funds

--

--

--

--

--

--

Payments to Public Telecommunications Commission

State Appropriation

State General Funds

--

--

--

--

--

--

Total Operating Activity

--

535,717,814.42

535,922,610.40

532,671,164.88

3,251,445.52

535,922,610.40

Prior Year Reserve Not Available for Expenditure Inventories Uncollectible Accounts Receivable

--

--

3,061,893.17

3,061,893.17

--

3,061,893.17

--

--

25,619,774.96

25,619,774.96

--

25,619,774.96

Budget Unit Totals

$

-- $ 535,717,814.42 $ 564,604,278.53 $ 561,352,833.01 $ 3,251,445.52 $ 564,604,278.53

Summary of Ending Fund Balance Reserved
Inventories Other Reserves
Colleges and Universities Unreserved, Undesignated
Surplus

$ 3,061,893.17

$ 3,061,893.17

558,290,939.84

558,290,939.84

$ $ 561,352,833.01 $

3,251,445.52 3,251,445.52

3,251,445.52 $ 564,604,278.53

Actual amounts were prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a special purpose framework.

2018 Annual Financial Report 229

Acknowledgments
Published by University System of Georgia Strategy and Fiscal Affairs: Tracey Cook - Interim Executive Vice Chancellor For Strategy and Fiscal Affairs/Treasurer Claire Arnold Caleb Cox Brad Freeman Shree Hamm Theresa L. Jackson Ben M. Riden, Jr.
Special Appreciation to University System of Georgia Chief Business Officers: Paul Willis, Abraham Baldwin Agricultural College Shawn McGee, Albany State University Kwabena Boakye, Atlanta Metropolitan State College Anthony Wagner, Augusta University Corlis Cummings, Clayton State University Jeffrey Preston, College of Coastal Georgia J. Thomas Helton, Columbus State University Nick Henry, Dalton State College Cliff Gay, East Georgia State College Dexter Odom, Fort Valley State University Susan Allen, Georgia College & State University Laura Maxwell, Georgia Gwinnett College Jeff Davis, Georgia Highlands College Jim Fortner, Georgia Institute of Technology Robert Whitaker, Georgia Southern University Cody King, Georgia Southwestern State University Jerry Rackliffe, Georgia State University Julie Peterson, Kennesaw State University Nancy Stroud, Middle Georgia State University Edward Jolley, Savannah State University Marcus J. Latham, South Georgia State College Ryan Nesbit, University of Georgia Mac McConnell, University of North Georgia Jim Sutherland, University of West Georgia Traycee Martin, Valdosta State University Diane Hickey, Board of Regents, University System Office
University System of Georgia Highlights: Courtesy of University System of Georgia Communications and Governmental Affairs
Photography: Courtesy of University System of Georgia Institutions
230 University System of Georgia

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