Annual financial report, fiscal year 2019

FISCAL YEAR
ANNUAL FINANCIAL REPORT

UNIVERSITY SYSTEM OF GEORGIA TABLE OF CONTENTS For the Fiscal Year Ended June 30, 2019
Introductory Section ....................................................................................................................................... University System of Georgia Highlights ............................................................................................ 2 Letter of Transmittal............................................................................................................................ 15
Financial Section ............................................................................................................................................. Independent Auditor's Report............................................................................................................. 19 Management's Discussion and Analysis ............................................................................................ 23 Financial Statements (GAAP Basis)................................................................................................... Statement of Net Position ............................................................................................................ 34 Statement of Revenues, Expenses and Changes in Net Position............................................... 37 Statement of Cash Flows............................................................................................................. 39 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 ......................................................................................... 73 Note 3 - Accounts Receivable ................................................................................................. 81 Note 4 - Inventories ................................................................................................................. 81 Note 5 - Notes and Loans Receivable..................................................................................... 81 Note 6 - Capital Assets ............................................................................................................ 82 Note 7 - Advances ................................................................................................................... 83 Note 8 - Long-Term Liabilities.................................................................................................. 83 Note 9 - Deferred Outflows and Inflows of Resources ............................................................ 84 Note 10 - Net Position ............................................................................................................. 87 Note 11 - Endowments ............................................................................................................ 87 Note 12 - Significant Commitments ......................................................................................... 88 Note 13 - Leases ..................................................................................................................... 88 Note 14 - Retirement Plans ..................................................................................................... 90 Note 15 - Risk Management.................................................................................................... 98 Note 16 - Contingencies .......................................................................................................... 99 Note 17 - Post-Employment Benefits Other Than Pension Benefits ....................................... 99 Note 18 - Operating Expenses with Functional Classifications ............................................... 110 Note 19 - Subsequent Event ................................................................................................... 110 Note 20 - Component Units ..................................................................................................... 111

UNIVERSITY SYSTEM OF GEORGIA TABLE OF CONTENTS For the Fiscal Year Ended June 30, 2019
Required Supplementary Information ........................................................................................................... Benefit Pension Plans ........................................................................................................................ Schedule of Contributions for Defined Benefit Pension Plan......................................................... 124 Schedule of Proportionate Share of Net Pension Liability ............................................................. 125 Schedule of Employers' and Nonemployers' Net Pension Liability................................................ 126 Schedule of Changes in Net Pension Liability ............................................................................... 127 Schedule of Investment Returns.................................................................................................... 128 Notes to the Required Supplementary Information for Pension Plans........................................... 129 Other Postemployment Benefits Plans............................................................................................... Schedule of Contributions for Other Postemployment Benefits..................................................... 130 Schedule of Proportionate Share of Net Other Postemployment Benefit Asset ............................ 131 Schedule of Changes in Net Other Postemployment Benefit Liability ........................................... 132 Schedule of Net Other Postemployment Benefit Liability .............................................................. 133 Schedule of Investment Returns for Other Postemployment Benefits........................................... 134 Notes to the Required Supplementary Information for Other Postemployment Benefit Plans....... 135
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 .......... 202 Notes to the Statement of Net Position and Statement of Revenues, Expenses and Changes .... in Net Position by Affiliated Organization................................................................................... 214 Statutory Basis Financial Statement (Non-GAAP Basis) ................................................................... Balance Sheet (Non-GAAP Basis)................................................................................................. 215 Statement of Funds Available and Expenditures Compared to Budget (Non-GAAP Basis) .......... 216 Statement of Changes to Fund Balance by Program and Funding Source (Non-GAAP Basis) .... 222
Acknowledgments........................................................................................................................................... 228

INTRODUCTORY SECTION

More than 333,000 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 $17.7 billion annually, and its institutions have generated more than 168,000 jobs across Georgia, an increase of more than 4,500 jobs over the prior 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. 2019 ANNUAL FINANCIAL REPORT.
MORE THAN 333,000 STUDENTS

$17.7 BILLION
Estimated USG Annual Economic Impact

168K JOBS
Generated Across Georgia

$1 BILLION
Research Dollars Competed For

KNOWLEDGE
3

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THE UNIVERSITY SYSTEM OF GEORGIA. 2019 ANNUAL FINANCIAL REPORT.
USG was recognized nationally as the 2019-2020 Exceptional Agency by the State Higher Education Executive Officers Association (SHEEO).

College Completion
The number of USG students annually earning degrees has increased significantly over the past decade, with an increase of almost 24 percent between 2011 and this past fiscal year.
From 54,855 degrees in fiscal year 2011 to more than 67,854 degrees in fiscal year 2019, the numbers have increased for eight consecutive years.
To continue that work, we launched a systemwide, comprehensive effort to increase students' successful degree completion and on-time graduation. This initiative, known as the
Momentum Year, is the first of its
kind in the country. As a result, all 26 institutions have placed a data-driven emphasis on firstyear 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 completing 30 course-hours total.
The effort also builds on expanding use of academic programs such as "degree pathways," a 15-to-finish campaign for fuller course loads, early-alert systems and corrective advising for when students need help staying on track.

This year, we are also expanding this initiative to a broader "Momentum Approach" that will encompass parts of a student's remaining years on campus. Because of such initiatives, USG was recognized nationally as the 2019-2020 Exceptional Agency by the State Higher Education Executive Officers Association (SHEEO).
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Over 379,000 students to date have taken advantage of the Affordable Learning Georgia program, saving an estimated $19 million annually in textbook costs.
Affordability
The Board of Regents has continued to keep tuition increases to a minimum and has focused on reducing students' textbook costs systemwide, as affordability remains a paramount goal of the USG. The Board did not raise tuition in 2016 or 2018 and has held increases to an average of 1.7 percent annually over the last five years, less than the rate of inflation. According to a state auditor's report, the cost of tuition and fees charged by USG institutions averaged 25 percent less than rates charged by peer institutions in other states. Of the 16 peer states that make up the Southern Regional Education Board, Georgia is the fourth-lowest in tuition and fees for fiscal year 2018. South Carolina, Alabama, Tennessee, Louisiana all cost more for in-state undergraduates. The system has also maximized the potential of online resources, including the increased use of free, open-sourced electronic textbooks. Over 379,000 students to date have taken advantage of the Affordable Learning Georgia program, saving an estimated $19 million annually in textbook costs.
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THE UNIVERSITY SYSTEM OF GEORGIA. 2019 ANNUAL FINANCIAL REPORT.
Know More. Borrow Less.
In addition to other affordability measures, USG is implementing a systemwide financial literacy initiative called "Know More. Borrow Less." Designed to reduce student borrowing, the program increases students' understanding of debt and provides them and their families with timely, customized information about their student loans. This includes streamlining the federal FAFSA student loan application, dramatically reducing time spent by students and schools grappling with red tape. Additionally, USG has deployed automated, customized and interactive debt notifications to students that more precisely outline the amount a student currently owes, the expected monthly payment and interest cost, projections of future costs should they borrow more or less and the estimated remaining loan eligibility. We are also developing a standardized, electronic award letter which will clearly articulate the cost of attendance, the financial aid awarded and a recommended loan amount rather than just the maximum offered and next steps. Finally, USG is continuing to leverage technology as a cost-saving measure, expanding the use of artificial intelligence services such as "chatbots" to quickly, accurately and consistently respond to student and parent questions.
7

Efficiency
In 2017, USG began a systemwide initiative focused on improving administration through creating efficiencies, streamlining processes and finding ways to be more effective with resources. Known as the Comprehensive Administrative Review, it has taken an in-depth look at all non-faculty administrative functions across the USG, including the University System Office. To date, the System Office and 19 institutions have identified at least $51 million in savings, which have been redirected to advancing USG's core priorities of degree attainment, student affordability and efficiency. The redirected savings have been generated through a variety of efforts including the elimination of over 420 filled and vacant positions. Completion of these efforts at our remaining 8 institutions are currently pending and are expected to produce further savings to be reinvested in student success efforts such as hiring more advisers and revamping student services across the state.
8

Nexus Degrees allow students and even career professionals seeking to expand their portfolios to receive a high-level skill-set and industry experience.
Economic Innovation
With an economic impact of $17.7 billion annually, one of the top priorities for the USG and its 26 institutions is to strengthen partnerships with Georgiabased businesses and address the critical need for a highly skilled workforce throughout our state.
With that in mind, we have received approval from our accreditors for the new Nexus Degrees, which gives students the option of a shorter-term college credential in high-demand career areas including financial technology (FinTech), blockchain and film production. It allows students and even career professionals seeking to expand their portfolios to receive a high-level skill-set and industry experience to do the jobs that we, as a state, want to attract.
As we continue to introduce Nexus Degrees across the state, USG's top economic development priorities and activities also include:
Increasing employer and university partnerships to develop professional education, academic curriculum, experiential learning and innovation-driven research opportunities for students and faculty.
Analyzing high-demand industry sectors to give insight on how USG institutions can create new programs aligned with top markets.
Mobilizing system-level assets to help all USG institutions address Georgia's high-demand industry needs.

THE UNIVERSITY SYSTEM OF GEORGIA. 2019 ANNUAL FINANCIAL REPORT. 9

Georgia FinTech Academy
USG's mission is to create knowledge. Knowledge drives innovation, which in turn drives the Georgia economy. Last year, the USG launched the Georgia FinTech Academy. The nation's first academy of its kind, it is a statewide initiative to create a talent pipeline for Georgia's fast-growing financial technology business sector. With 70 percent of all U.S. financial transactions routed through our state, there are over 160 employers in this high-demand field currently located in Georgia. The top 50 Georgia-based FinTech companies generate annual revenue of more than $72 billion. 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.
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THE UNIVERSITY SYSTEM OF GEORGIA. 2019 ANNUAL FINANCIAL REPORT.

The USG mission is to create knowledge.
The new core curriculum will equip students to thrive in the 21st-century workforce and world.

Redesigning General Education
To help USG better prepare students for the world beyond the classroom, Chancellor Steve Wrigley launched the College 2025 Initiative in 2017 to develop a five- to 10-year academic roadmap for the system and USG institutions. While USG is now implementing those strategies, it has also taken on the task of updating the structure and content of USG's general education curriculum (the first 60 hours of courses shared by all programs of study). Our general education curriculum lays the foundation of every student's knowledge base. It answers the question of what we think our graduates should know. The work done on College 2025 shows that we need to be more flexible and responsive to students' academic needs -- while also maintaining high standards. To that end, USG has initiated a review with the input of faculty, academic administrators and industry leaders from all across the state as well as from the public. The new core curriculum will equip students to thrive in the 21st-century workforce and world, with the expectation it will be launched systemwide by Fall 2020.
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Strategic Plan 2024
Across the nation and world, there is no other time in history when it has been so essential to acquire knowledge and possess flexible skills to participate successfully in the workforce.
That in itself makes USG's mission critical to our state's economic future. With that in mind, we are launching a new strategic plan that will shape the impact USG has on our state for the next four years and beyond.
The challenges and opportunities we face in the coming years make the plan imperative for deciding how best we can succeed for the benefit and advancement of Georgia.
Student success, responsible stewardship, economic competitiveness and community impact these are the plan's overarching four goals. They represent not a catalog of everything we do but most directly what we need and have to do to drive Georgia forward.

Student success, responsible stewardship, economic competitiveness and community impact these are the plan's overarching four goals.

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THE UNIVERSITY SYSTEM OF GEORGIA. 2019 ANNUAL FINANCIAL REPORT.

MEMBERS OF THE BOARD OF REGENTS IN 2019

Chris Cummiskey District: At-Large
W. Allen Gudenrath District: Eighth
Erin Hames District: At Large
Brbara Rivera Holmes District: Second
Samuel D. Holmes District: At-Large
C. Thomas Hopkins Jr., M.D. District: Third
James M. Hull District: At-Large
Laura Marsh District: Twelfth
Jose R. Perez District: Seventh
Neil L. Pruitt Jr. District: Eleventh

Sarah-Elizabeth Reed District: Fifth
Sachin Shailendra District: Thirteenth
E. Scott Smith District: Fourteenth
Kessel D. Stelling Jr. District: Sixth
Ben J. Tarbutton III District: Tenth
T. Rogers Wade (Vice Chair) District: At-Large
Don L. Waters (Chair) District: First
Philip A. Wilheit Sr. District: Ninth

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

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

PHONE (404) FAX (404) 962-3215

December 23, 2019
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, 2019. 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 2019 and has issued an unmodified opinion, the most favorable outcome of the audit process. The StateAuditor'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 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

2019 Annual Financial Report 15

FINANCIAL SECTION

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), as of and for the year ended June 30, 2019, 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, the University of Georgia Research Foundation, Inc., and the University System of Georgia Foundation, Inc. & Affiliates, the financial statements of the aggregate discretely presented component units of the USG were not audited 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 entity'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 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.
2019 Annual Financial Report 19

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 reports of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the business-type activities, the aggregate discretely presented component units, and the aggregate remaining fund information of the USG as of June 30, 2019, 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, major fund and aggregate discretely presented component units 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, 2019, the changes in its financial position, or, where applicable, its cash flows for the year the 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 also discussed in Note 1 to the financial statements, in 2019, the USG restated the prior period financial statements for changes in accounting policies and principles and to correct prior period misstatements. Our opinions are not modified with the respect to the matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and required supplementary information 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.
Supplementary and 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 listed in the table of contents are presented for the purposes of additional analysis and are not required parts 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 them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 23, 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
20 University System of Georgia

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,

December 23, 2019

Greg S. Griffin State Auditor

2019 Annual Financial Report 21

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 USG itself more cost-efficient on behalf of the State's students and communities. USG institutions enrolled more than 330,000 students and awarded 67,854 degrees in fiscal year 2019, a 2.1% increase over the previous year and an almost 24% increase since 2011. USG leaders continue to focus on affordability, efficiency, and investing in academic initiatives to increase attainment. For the academic year 2019-20, all 26 USG institutions continue to build on the "Momentum Year" program designed to help USG students in their crucial first year of college by guiding them on a path to achieve their educational goals, including successful degree completion and on-time graduation. The Board of Regents (Board) has held tuition increases to an average of 1.7% annually over the last five years, which is less than the rate of inflation. According to a state auditor's report, tuition rates charged by USG institutions averaged 25% less than rates charged by peer institutions in other states.

The USG also entered a new phase of the ongoing Comprehensive Administrative Review at all 26 institutions as well as the University System Office (USO). This thorough assessment of how the USG is organized, its processes and its staffing levels has resulted in $51 million in savings from the USO and 19 institutions, which have been redirected to advancing USG's core priorities of degree attainment, student affordability and efficiency. The redirected savings have been generated through a variety of efforts to include the elimination of over 493 filled and vacant positions. Completion of these efforts at the remaining 7 institutions are currently pending and are expected to produce further savings for the State.

This discussion and analysis provides a summary of the financial position of the USG for the fiscal year ending June 30, 2019. 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 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 During the 2019 session, the General Assembly passed HB 30 to amend HB 684 and provide appropriations for the State Fiscal Year beginning July 1, 2018, and ending June 30, 2019. The USG received $2.43 billion in state general funds and another $9.99 million in tobacco settlement funds, for a total of $2.44 billion appropriation for FY2019:

STATE APPROPRIATIONS AVAILABLE - GENERAL APPROPRIATIONS ACT OF 2019

House Bill 684

General State Funds

$ 2,428,245,232

House Bill 30

General State Funds

2,632,727

Tobacco Settlement Funds

9,991,818

Total State Appropriations Per Appropriations Act - University System of Georgia

$

2,440,869,777

The following table presents the fiscal year 2019 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

$

12,375,327

Rental Payments - GA Military College

7,079,053

GA Public Telecommunications Commission

15,197,539

GA Public Libraries

39,077,574

Total Other Activities

Special Initiative Funding

Net State Appropriations Available to the University System of Georgia

2,155,728,837 183,366,565
73,729,493 28,044,882
$

2,440,869,777

2019 Annual Financial Report 23

The following chart illustrates the Board of Regents allocations to Teaching, Non-Teaching, Other Activities and Special Funding Initiatives:
Board of Regents Allocations
Non-Teaching: $183,366,565
Other Activities: $73,729,493 Special Funding Initiative: $28,044,882
Teaching: $2,155,728,837
Overview of the Financial Statements and Financial Analysis The USG is proud to present its consolidated financial statements for fiscal year 2019. 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 2019 and 2018.
24 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, 2019 is very strong, with total assets of $13.14 billion, deferred outflows of $1.24 billion, total liabilities of $11.07 billion, deferred inflows of $1.28 billion and net position of $2.03 billion.
Assets and Deferred Outflows Total assets and deferred outflows of the USG in fiscal year 2019 were approximately $841 million more than those reported for fiscal year 2018. Most asset categories had marginal increases or decreases during the year. Cash and investments increased $93 million due to strategic budgetary efforts. Accounts receivable increased $86 million due to the timing of collections related to Federal programs, Georgia Student Finance Commission, and component units. Deferred outflows of resources increased $369 million primarily due to actuarial determined differences between expected and actual experience with regard to economic or demographic factors in the measurement of the total OPEB liability. Capital assets increased by $302 million. 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 2019 were approximately $414 million more than those reported for fiscal year 2018. The majority of the change is related to an increase in net pension liability of $24 million, pension deferred inflows of $58 million, net OPEB liability of $191 million, and OPEB deferred inflows of $206 million. Net OPEB liability increased primarily due to OPEB service cost and interest on the total OPEB liability exceeding the USG's contributions into the plan. OPEB deferred inflows of resources increased primarily due to changes in the assumptions used in the measurement of the total OPEB liability.
2019 Annual Financial Report 25

Net Position The combination of the increase in total assets and deferred outflows of $841 million and the increase in total liabilities and deferred inflows of $414 million yielded a net increase in total net position of $428 million or 26.6%. The following table summarizes the USG's assets, deferred outflows, liabilities, deferred inflows and net position as of June 30, 2019 and June 30, 2018.

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

June 30, 2019

June 30, 2018 (1) % Change

$ 2,471,187,616 $ 2,292,837,480

10,180,886,037

9,878,403,906

489,893,475

498,530,235

13,141,967,128 12,669,771,621

7.78 % 3.06 % (1.73)% 3.73 %

DEFERRED OUTFLOWS

1,242,647,053

873,854,980

42.20 %

LIABILITIES Current Liabilities Non-Current Liabilities TOTAL LIABILITIES

929,281,944 10,144,248,555 11,073,530,499

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

1.59 % 1.61 % 1.61 %

DEFERRED INFLOWS

1,277,144,280

1,038,949,132

22.93 %

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

7,029,370,125

6,666,852,110

181,015,931

204,781,419

265,970,604

218,195,579

(5,442,417,258) (5,483,315,649)

$ 2,033,939,402 $ 1,606,513,459

5.44 % (11.61 )% 21.90 %
0.75 % 26.61 %

(1) The amounts reported for fiscal year 2018 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".

26 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, 2019 June 30, 2018(1) % Change

$ 5,532,092,809 $ 5,210,409,894

6.17 %

8,623,637,908 8,237,924,034

4.68 %

(3,091,545,099) (3,027,514,140) (2.11)%

3,100,564,463 2,992,032,012

3.63 %

9,019,364

(35,482,128)

364,597,880

287,656,654

52,770,005

(30,284,826)

426,387,249

221,889,700

1,607,552,153 1,384,623,759

$ 2,033,939,402 $ 1,606,513,459

125.42 % 26.75 %
274.25 % 92.16 % 16.10 % 26.61 %

(1) The amounts reported for fiscal year 2018 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 2019.
Revenues In fiscal year 2019, state appropriations increased $120 million (5.18%), grants and contracts revenue increased $188 (7.46%) million in fiscal year 2019, net tuition and fee revenues increased $18 million (.88%).
Revenue by source (state appropriations, grants and contracts, tuition and fees, auxiliaries, gifts and other sources) is depicted by the following chart:

Revenue by Source (in millions)

State Appropriations: $2,434

Grants and Contracts: $2,708

Other: $546
Gifts: $439 Auxiliaries: $932

Tuition and Fees: $2,108
2019 Annual Financial Report 27

For the years ended June 30, 2019 and June 30, 2018, revenues by source were as follows:

REVENUES BY SOURCE

June 30, 2019 June 30, 2018(1) % Change

Tuition and Fees

$ 2,108,520,037 $ 2,090,092,615

0.88 %

Federal Appropriations

21,289,268

20,546,064

3.62 %

Grants and Contracts

1,993,029,057 1,809,183,944 10.16 %

Sales and Services

265,330,239

206,733,164 28.34 %

Auxiliary Enterprises

932,353,737

909,392,256

2.52 %

Other Operating Revenues

211,570,471

174,461,851 21.27 %

Total Operating Revenues

5,532,092,809 5,210,409,894

6.17 %

State Appropriations

2,434,474,803 2,314,491,667

5.18 %

Grants and Contracts

693,921,040

690,539,065

0.49 %

Gifts

75,353,258

85,985,306 (12.36)%

Investment Income

66,677,756

45,118,028 47.79 %

Total Nonoperating Revenues

3,270,426,857 3,136,134,066

4.28 %

State Capital Gifts and Grants

340,768,312

265,811,845 28.20 %

Other Capital Gifts and Grants

22,529,209

21,501,194

4.78 %

Total Capital Gifts and Grants

363,297,521

287,313,039 26.45 %

Additions to Permanent and Term Endowments

1,300,359

343,615

Other Nonoperating Revenue

--

593,629

Total Revenues

$ 9,167,117,546 $ 8,634,794,243

6.16 %

(1) The amounts reported for fiscal year 2018 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, 2019 and June 30, 2018, expenses by functional classification were as follows:

EXPENSES BY FUNCTIONAL CLASSIFICATION

June 30, 2019 June 30, 2018(1) % Change

Instruction

$ 2,017,527,382 $ 2,003,013,098

0.72 %

Research

1,472,916,229 1,399,514,297

5.24 %

Public Service

442,630,398

433,276,260

2.16 %

Academic Support

664,965,638

627,423,736

5.98 %

Student Services

359,077,696

358,362,807

0.20 %

Institutional Support

1,323,922,858 1,232,474,231

7.42 %

Plant Operations and Maintenance

783,172,411

701,503,860

11.64 %

Scholarships and Fellowships

301,388,665

275,405,110

9.43 %

Auxiliary Enterprises

841,835,875

831,510,746

1.24 %

Patient Care

416,200,756

375,439,889

10.86 %

Total Operating Expenses

8,623,637,908 8,237,924,034

4.68 %

Interest Expense

139,195,925

144,695,683

(3.80)%

Other Nonoperating Expense

30,666,469

Total Expenses

$ 8,793,500,302 $ 8,382,619,717

4.90 %

(1) The amounts reported for fiscal year 2018 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.

28 University System of Georgia

Total operating expenses were $8.6 billion in fiscal year 2019, an increase of $386 million (4.68%) when compared with fiscal year 2018. The increases in the following functional classifications were primarily attributable to increases in salaries and benefits: Research ($73 million), Public Service ($9 million), Academic Support ($37 million), Plant Operations ($82 million), Scholarships and Fellowships ($25 million), and Patient Care ($41 million). The increases in salaries and benefits are attributable to increases in OPEB expenses, faculty and staff increases and merit increases. The increase in Institutional Support ($91 million) was primarily attributable to increases in benefit claims expense and an additional transfer to the Board of Regents Retiree Health Benefit Fund.
The following chart depicts the fiscal year 2019 operating expenses by functional classification.
Operating Expenses by Functional Classification (in millions)

Student Services: $359 Academic Support: $665 Public Service: $443
Research: $1,473
Instruction: $2,018

Institutional Support: $1,324
Plant Operations and Maintenance: $783
Scholarships and Fellowships: $301
Auxiliary Enterprises: $842
Patient Care: $416

2019 Annual Financial Report 29

The following chart depicts the fiscal year 2019 operating expenses by natural classification.

Operating Expenses by Natural Classification (in millions)

Other Personal Services: $19
Employee Benefits: $1,072

Travel: $87 Scholarships & Fellowships: $350 Utilities: $194

Staff Salaries: $2,087

Supplies & Other Services: $2,484

Faculty Salaries: $1,812

Faculty Salaries Other Personal Services Utilities

Staff Salaries Travel Supplies & Other Services

Depreciation: $519
Employee Benefits Scholarships & Fellowships Depreciation

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.

30 University System of Georgia

Cash flows for the years ended June 30, 2019 and 2018, condensed, were as follows:

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, 2019

June 30, 2018

$ (2,503,201,212) $ (2,388,454,869)

3,133,143,121

3,054,817,788

(612,019,643)

(641,619,722)

62,849,158

23,480,441

$

80,771,424 $

48,223,638

1,570,161,439

1,521,937,801

$

1,650,932,863 $

1,570,161,439

Capital Assets Capital assets, net of accumulated depreciation, at June 30, 2019 and June 30, 2018 were as follows:

CAPITAL ASSETS, net of accumulated

depreciation

June 30, 2019

June 30, 2018(1)

Increase (Decrease)

% Change

Land

$ 428,693,618 $ 409,861,751 $ 18,831,867

4.59 %

Capitalized Collections

55,188,954

51,924,925

3,264,029

6.29 %

Construction Work-in-Progress

197,273,705

231,606,547 (34,332,842) (14.82)%

Software Development-in-Progress

5,505,088

12,266,427

(6,761,339) (55.12)%

Infrastructure

235,135,383

216,612,720

18,522,663

8.55 %

Building and Building Improvements

8,369,075,255

8,094,599,134 274,476,121

3.39 %

Facilities and Other Improvements

157,934,643

160,311,999

(2,377,356)

(1.48)%

Equipment

472,303,642

458,287,532

14,016,110

3.06 %

Library Collections

166,496,000

175,573,379

(9,077,379)

(5.17)%

Capitalized Collections

4,757,089

5,062,603

(305,514)

(6.03)%

Software

88,522,660

62,296,889

26,225,771

42.10 %

Capital Assets, net of accumulated depreciation

$ 10,180,886,037 $ 9,878,403,906 $ 302,482,131

3.06 %

(1) The amounts reported for fiscal year 2018 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 increased $302 million during fiscal year 2019 when compared with fiscal year 2018.
Major building additions totaled $561 million. These additions included a Cancer Research Building at Augusta University, an Academic Building at Columbus State University, an Academic Building at Georgia Gwinnett College, a Student Academic Center at Georgia Highlands College, an Academic Building at Georgia Southern University, an Academic Center at Georgia Southern University, Teaching Labs at the University of West Georgia, and a Business Learning Community at the University of Georgia.
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 $3.1 billion of which $274 million was reflected as a current liability at June 30, 2019. Included in Long-Term Liabilities are lease purchase obligations of $2.9 billion.
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.

2019 Annual Financial Report 31

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. The net OPEB liability at June 30, 2019 was $4.4 billion which included a net increase of $191 million.
Lease purchase obligations decreased $58 million during the current fiscal year. Principal and interest payments were $131.6 million and $140.7, 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.
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. Just 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 No. 1 priority of businesses considering moving to Georgia, and USG plays a key role in working with industry to fulfill the need for talent with high-priority skills. By 2025, over 60% of jobs in Georgia will require some form of postsecondary education. As of 2018 (the most recent year for which data is available), only about 50% of the Georgia workforce met 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% of them - or 11.5 million jobs - went to workers with at least some post-secondary education; and about 70% of them went to workers with at least a bachelor's degree. Thus, USG remains a vital link for Georgia's economic success, both now and in the future.
It also continues to see modest enrollment increases. Fall 2019 enrollment at USG's 26 colleges and universities totaled 333,507 students, an increase of 1.5% (or 4,795 more students) over the previous year. This continues a sixyear trend of modest increases in student enrollment and also marks the fifth consecutive year that enrollment continued to reach an all-time high in USG's total student enrollment.
32 University System of Georgia

FINANCIAL STATEMENTS

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION JUNE 30, 2019
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 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 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.
34 University System of Georgia

University System of Georgia

Component Units

$

1,385,282,311 $

262,314,825

72,567,261

519,191

387,225,919 88,766,891 90,582,188
154,442,586

83,229,010 13,390,148 271,862,640
-- -- 289,879,395 -- -- -- -- 22,140,409 64,764,430 5,237,996 2,471,187,616

4,304,155 174,013 --
14,228,427 73,008,955 411,811,830
716,632 249,362 92,116,435 372,456 20,646,799 39,539,728 30,445,162 1,408,631,538

1,655,106 3,630,038
-- -- 197,694,631 33,602,430 -- -- -- 3,335,727 34,175 249,941,368 10,180,886,037 10,670,779,512 13,141,967,128

$

1,242,647,053 $

-- -- 149,160,756 34,336,434 751,586,834 -- 2,273,011,955 19,144,911 44,126,969 263,607,135 3,543,390 3,105,393,202 1,238,477,771 7,882,389,357 9,291,020,895
50,520,218

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION JUNE 30, 2019
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 Due to Other Funds 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 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.

University System of Georgia

Component Units

$

206,826,787 $

91,378,486

29,919,849

15,136,689

45,014,583

8,080

20,287,350

451,448

9,084,566

5,005,761

2,332,424

37,671,848

3,153,269

9,722

14,228,427

--

--

271,862,640

--

248,609

219,528,317

128,511,065

14,060,518

40,386,356

87,524,687

43,337,828

3,672,550

10,887,992

1,141,335

96,692,251

20,252,520

8,983,816

92,116,435

--

--

130,329,368

--

2,396,557

1,146,441

--

2,378,631

1,000,000

156,613,255

21,341,066

929,281,944

905,639,582

-- -- -- 11,465,159 -- 11,619,602 469,990,448 2,273,011,955 -- -- -- 3,485,065 74,790,244 4,410,751,099 2,889,134,983 10,144,248,555 11,073,530,499

$

1,277,144,280 $

290,674 3,630,038 1,672,052 15,141,815 32,116,715 178,374,242 74,566,074
-- 3,164,340,614
26,523,480 37,493,371
580,624 --
6,758,623 --
3,541,488,322 4,447,127,904
16,363,042

2019 Annual Financial Report 35

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION JUNE 30, 2019
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

$

7,029,370,125 $

310,914,736

181,015,931 265,970,604 (5,442,417,258)

2,445,728,311 1,147,673,833
973,733,287

$

2,033,939,402 $

4,878,050,167

36 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR FISCAL YEAR ENDED JUNE 30, 2019

OPERATING REVENUES Student Tuition and Fees Scholarship Allowance Federal Appropriations Grants and Contracts Federal State Other Sales and Services Patient 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

$

2,765,126,048 $

--

(656,606,011)

--

21,289,268

--

978,970,104 353,332,338 660,726,615 265,330,239
8,505,013

972,960,891 20,369,537
176,386,374 309,987,031 804,178,864 242,240,082

346,838,155 54,052,693
198,711,543 92,292,166 61,783,709
136,359,517 42,315,954 -- --
203,065,458

-- -- -- -- -- -- -- 182,545,467 108,401,882 10,745,153

5,532,092,809

2,827,815,281

1,811,926,203 2,086,891,651 1,071,698,413
18,618,701 86,981,155 350,423,920 194,040,545 2,483,891,050 519,166,270

8,623,637,908

$

(3,091,545,099) $

2,803,199 332,118,058
81,184,565 158,328,709
23,724,451 38,343,585 10,022,140 1,997,857,804 70,097,382
2,714,479,893
113,335,388

2019 Annual Financial Report 37

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR FISCAL YEAR ENDED JUNE 30, 2019

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 Items
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

$

2,434,474,803 $

31,992,211

593,607,966 11,558,842 88,754,232 75,353,258 66,677,756
(139,195,925) (30,666,469)

2,955,709 3,430,939
-- 17,668,469 95,363,430 (133,159,776) 13,105,536

3,100,564,463

31,356,518

9,019,364

144,691,906

2,132,462 340,768,312
20,396,747 1,300,359
52,770,005

-- -- 18,466,737 80,954,405 --

417,367,885

99,421,142

426,387,249

244,113,048

1,606,513,459 1,038,694
1,607,552,153

4,637,744,258 (3,807,139)
4,633,937,119

$

2,033,939,402 $

4,878,050,167

38 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF CASH FLOWS FOR FISCAL YEAR ENDED JUNE 30, 2019
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 Additional Payments Necessary to Pay-Off of Capital Debt and Leases Early 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.

University System of Georgia

$

3,439,477,954

21,289,268

1,977,645,629

(3,642,168,531)

(3,954,710,525)

(350,423,921)

(7,318,517)

11,663,615

1,366,223

(22,407)

(2,503,201,212)

2,434,474,803 6,258,203,803 (6,297,015,672)
746,736,554 (43,009)
11,735,189 (20,948,547) 3,133,143,121

67,069,239 18,529,619 (423,170,566)
(942,687) (132,737,059) (140,768,189) (612,019,643)

1,320,873,520 64,384,743
(1,322,409,105) 62,849,158

80,771,424 1,570,161,439

$

1,650,932,863

2019 Annual Financial Report 39

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF CASH FLOWS FOR FISCAL YEAR ENDED JUNE 30, 2019
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 Change in Deferred Outflows and Inflows of Resources: Deferred Outflows of Resources Deferred Inflows of Resources
Net Cash Used by Operating Activities
The notes to the financial statements are an integral part of this statement.

University System of Georgia

$

(3,091,545,099)

519,166,270 6,279,601

(86,141,778) 850,696
2,063,257 11,421
4,405,867 36,292,980 (4,380,492)
8,988,519 (1,756,762)
515,883 (430,704) (17,737,171) (5,595,780)
80,144 2,383,034 5,959,511
60,601 4,057,784 23,701,257 191,025,227

(384,706,276) 283,250,798

$

(2,503,201,212)

40 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF CASH FLOWS FOR FISCAL YEAR ENDED JUNE 30, 2019

NON-CASH INVESTING, NON-CAPITAL FINANCING, AND CAPITAL AND RELATED FINANCING TRANSACTIONS
Noncapital Financing Activities Noncash Items: Noncapital Gifts Current Year Accruals Related to Non-operating Non-capital Grants and Gifts. Non-operating Non-capital Grants and Gifts Receivables decreased $8,163,909 during the fiscal year. Amortization of Non-capital Financing Activities Advances and Deferred Inflows. Non-capital Financing Activities Advances and Deferred Inflows decreased $16,960,455 during the fiscal year. New Non-Capital Financing Debt
Capital Financing Activities Noncash Items: Current Year Accruals Related to Capital Financing Activities. Capital Grants and Gifts Receivables increased $650,574 during the fiscal year. Gift of Capital Assets, which includes Capital Grants of $286,719,549 and Special Items of $97,644,818. Gain (Loss) on Disposal of Capital Assets, which includes a Special Item Transfer of $44,966,516 and disposal of Construction Work-in-Progress of $1,039,872. Accrual of Capital Asset Related Payables. Capital Asset related Payables decreased $5,208,442 during the fiscal year. Capital Assets Acquired Through Prepaid Capital. Prepaid Capital Assets decreased $9,050,947 during the fiscal year. Capital Assets Acquired by Incurring Capital Lease Obligations Deferred Gain (Loss) due to Debt Refundings Amortization of Deferred Gain (Loss) of Capital Debt Refunded Increase in Capital Debt due to Capitalized Interest Early Extinguishment of Capital Debt Amortization of Capital Financing Activities Advances and Deferred Inflows Accrual of Capital Financing Interest Payable. Capital Financing Interest Payable decreased $211,513 during the fiscal year. Other Capital Financing Activities Noncash Items
Investing Activities Noncash Items: Unrealized Gain (Loss) on Investments

University System of Georgia

$

15,123,802

$

18,428,781

$

18,621,966

$

6,448,462

$

9,483,284

$

384,364,367

$

(70,553,221)

$

27,936,428

$

13,498,653

$

76,468,790

$

8,430,904

$

2,047,603

$

625,083

$

1,031,792

$

8,858,157

$

2,332,424

$

(2,952,417)

$

2,293,013

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

2019 Annual Financial Report 41

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF FIDUCIARY NET POSITION JUNE 30, 2019

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

$

3,475,805 $

338,473 $

21,428,956 $

19,801,055 47,890,518
-- 34,208,489
-- -- --

716,599 1,095,009
21,550 --
1,384,386 --
882,083

-- -- -- -- -- 129,446,175 --

Total Assets

105,375,867

4,438,100

150,875,131

LIABILITIES Benefits Payable

--

--

6,420,703

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

-- 105,375,867
--

4,438,100 -- --

-- -- 144,454,428

Total Net Position

$

105,375,867 $

4,438,100 $

144,454,428 $

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

Total
25,243,234
20,517,654 48,985,527
21,550 34,208,489
1,384,386 129,446,175
882,083
260,689,098
6,420,703
4,438,100 105,375,867 144,454,428
254,268,395

42 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR FISCAL YEAR ENDED JUNE 30, 2019

ADDITIONS Contributions Employer

Early Retirement Plan - Augusta
University

Deferred Compensation
Fund

Retiree Health Benefit Fund

$

13,084,672 $

501,733 $

160,383,000 $

Investment Income Dividends and Interest Net Appreciation in Investments Reported at Fair Value Less: Investment Expense

2,215,229
5,317,848 (164,247)

133,081
73,425 (13,301)

3,844,456
3,405,507 (123,943)

Total Additions

20,453,502

694,938

167,509,020

DEDUCTIONS Benefits Premium Expense Withdrawal Administrative expense

14,099,754 -- -- --

-- -- 5,752,860 --

94,056,257 4,506,889 -- 536,437

Total Deductions

14,099,754

5,752,860

99,099,583

Change in Net Position Held in Trust for Pension and Other Employee Benefits
Net Position, Beginning of Year

6,353,748 99,022,119

(5,057,922) 9,496,022

68,409,437 76,044,991

Net Position, End of Year

$

105,375,867 $

4,438,100 $

144,454,428 $

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

Total
173,969,405
6,192,766 8,796,780
(301,491) 188,657,460
108,156,011 4,506,889 5,752,860 536,437
118,952,197
69,705,263 184,563,132 254,268,395

2019 Annual Financial Report 43

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS JUNE 30, 2019

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 Due From Other Funds 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.

$

4,315,878 $

3,489,218

1,525,924

--

-- -- -- -- 155,965 58,655 -- -- 2,075,695 -- -- 1,767 -- 11,623,102

5,443,768 $ -- -- --

82,451,606 $ 1,121,058
42,765,506 15,172,846

20,779,697 $ 325,688 -- --

4,304,155 -- -- -- -- -- -- -- -- -- -- -- --
9,747,923

-- -- -- 5,706,173 -- 159,350,401 -- 124,496 1,226,662 -- 20,646,799 19,556,715 -- 348,122,262

-- -- -- 44,868 125,514 51,591 16,471 -- 1,339,267 -- -- 26,974 615,250 23,325,320

2,758,460 $ -- -- --

1,904,325 -- -- --

-- -- -- -- 527,299 2,197 -- -- 814,219 -- -- 8,833 -- 4,111,008

-- -- -- -- 18,570 7,755 -- -- 12,179,953 -- -- -- -- 14,110,603

Non-Current Assets Accounts Receivable, net Component Units Pledges and Contributions Other Investments 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

-- 96,513
-- 1,086,453 29,510,311
-- 194,775
-- -- 28,842,938 -- 59,730,990 71,354,092

-- -- -- 4,474,350 -- -- -- 69,973 -- -- -- 4,544,323 14,292,246

-- -- 20,212,846 112,917,934 21,292,862 -- 5,416,198 -- -- 3,895,086 251,547,353 415,282,279 763,404,541

-- 574,921
-- 15,000 63,256,401 15,675,000 522,376 4,725,816
-- -- 84,282,460 169,051,974 192,377,294

-- 634,924
-- 11,087,289 81,516,434
-- 1,173,124
-- -- 42,138,780 1,210,801 137,761,352 141,872,360

-- 11,200
-- 6,236,701 149,185,856
-- 10,400 12,063,554
-- -- 8,262,388 175,770,099 189,880,702

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, 2019

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 Due to Other Funds 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 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.

$

433,805 $

155,642 $

75,690,993 $

441,095 $

1,005,327 $

3,332,196

--

--

9,325,924

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

961,108

--

--

303,793

4,249,535

66,784,070

3,986,288

896,193

123,919

--

--

124,866

--

--

--

950,497

--

--

1,645,136

--

22,689

--

--

--

184,298

--

--

--

--

--

--

3,483,719

--

--

18,979

9,528,152

295,671

--

--

--

--

--

249,285

--

124,035

--

--

6,327,586

1,901,011

--

--

1,025,000

--

5,165,000

1,085,000

2,975,000

3,995,000

--

--

--

--

--

--

--

--

--

--

--

--

--

--

20,521,811

--

--

--

2,713,095

4,424,156

193,468,402

10,748,892

8,360,239

7,597,839

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

-- -- -- -- 6,727,384 -- -- -- 22,023,567 -- -- -- -- 28,750,951 31,464,046

-- -- -- -- -- -- -- -- -- -- -- -- -- -- 4,424,156

-- -- -- -- -- 17,505,364 -- 19,372,866 208,119,966 -- 20,085,401 -- 6,758,623 271,842,220 465,310,622

-- -- -- -- 4,849,822 522,376 6,322,077 50,903,907 60,439,482 -- -- -- -- 123,037,664 133,786,556

-- -- 1,638,638 -- -- -- -- -- 89,329,464 771,766 6,489,668 -- -- 98,229,536 106,589,775

-- -- -- -- -- -- 2,033,444 -- 163,070,449 -- -- -- -- 165,103,893 172,701,732

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

--

--

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

--

19,652,615

16,754,168

3,483,263

$

39,890,046 $

--

53,293,543

22,871,446

1,210,801

8,262,388

-- 69,973 9,798,117 9,868,090 $

-- 20,072,515 224,727,861 298,093,919 $

-- 7,128,464 28,590,828 58,590,738 $

21,089,242 9,103,132 3,879,410
35,282,585 $

3,323,020 --
5,593,562 17,178,970

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

2019 Annual Financial Report 45

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS JUNE 30, 2019

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 Due From Other Funds 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

$

169,538 $

2,244,047 $

3,865,917 $

7,176,214 $

7,123,926 $

3,278,866

--

--

--

8,439,967

5,372,585

--

2,520,418

6,327,002

--

--

--

9,925,571

--

--

--

--

-- -- -- 892 1,972,673 -- -- 124,866 -- -- -- 138,673 -- 14,852,631

-- -- -- -- -- 44,738 -- -- 9,322,364 -- -- 14,555 -- 17,952,706

-- --
1,149,746 8,878,856
256,686 -- -- -- -- --
276,446 --
14,427,651

-- -- -- -- 4,726,801 798,212 -- -- 3,588,630 -- -- -- -- 24,729,824

-- -- -- 2,854,710 -- 17,402,546 -- -- 2,437,273 -- -- 16,385,919 -- 51,576,959

-- -- -- -- 5,742,113 2,720,108 -- -- -- -- -- 1,092,373 -- 12,833,460

Non-Current Assets Accounts Receivable, net Component Units Pledges and Contributions Other Investments 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

-- 138,873
-- -- -- -- -- -- -- 5,177,714 2,295,000 7,611,587 22,464,218

-- -- -- -- 203,795,245 -- -- 33,037,849 -- -- 1,620,000 238,453,094 256,405,800

-- -- -- -- -- -- -- -- -- -- 593,509 593,509 15,021,160

-- 6,823,492
-- 27,811,871 114,101,675
-- 4,904,918
-- -- 218,633,824 15,271,982 387,547,762 412,277,586

-- -- -- 10,312,421 67,595,383 -- -- -- -- -- 7,880,627 85,788,431 137,365,390

-- 14,053,703
-- -- -- -- 728,445 -- -- 108,299,697 170,382,079 293,463,924 306,297,384

DEFERRED OUTFLOWS OF RESOURCES

$

--$

--$

--$

--$

7,937,156 $

15,109,831

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, 2019

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 Due to Other Funds 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 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

$

49,253 $

3,809,222 $

430,932 $

4,206,947 $

1,769,519 $

3,939,769

--

--

26,845

--

--

--

--

--

8,080

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

29,448

418,164

554,826

--

18,201,530

2,086,132

123,743

--

--

--

--

--

190,790

--

1,270,632

1,270,067

--

556,166

--

--

--

--

--

11,604,705

--

--

--

2,344,706

--

--

--

--

--

1,024,196

--

--

--

--

--

--

--

948,461

--

--

18,838

--

--

330,603

--

8,375,000

--

4,110,000

2,310,000

31,190,000

90,485

--

--

--

--

--

--

--

--

--

--

1,000,000

--

--

375,255

--

--

--

483,719

12,602,386

2,685,408

12,955,916

22,281,049

51,655,836

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

-- -- -- -- -- -- -- -- -- 159,921 -- -- -- 159,921 643,640

-- -- 1,991,400 -- 69,005 10,558 -- -- 208,900,686 -- -- -- -- 210,971,649 223,574,035

-- -- -- -- -- -- -- 16,345 -- -- -- -- -- 16,345 2,701,753

-- -- -- -- -- 4,410,299 -- -- 125,267,927 1,239,720 -- -- -- 130,917,946 143,873,862

-- -- -- -- -- -- -- -- 78,352,524 -- -- -- -- 78,352,524 100,633,573

-- -- -- -- -- -- 13,188,112 836,364 183,068,586 -- -- 580,624 -- 197,673,686 249,329,522

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

16,363,042

--

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

2,295,000

1,620,000

2,751,102

--

13,964,220

33,037,849

2,810,256

(1,826,084)

$

21,820,578 $

32,831,765 $

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

558,326

15,271,982

-- 3,011,977 8,749,104 12,319,407 $

140,353,645 91,393,983 21,384,114
268,403,724 $

7,880,627

(44,070,216)

1,550,000 7,315,223 11,560,081 28,305,931 $

45,427,130 77,320,731 (6,599,952) 72,077,693

2019 Annual Financial Report 47

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS JUNE 30, 2019

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 Due From Other Funds 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.

$

8,923,721 $

6,894,000 $ 111,814,086 $

20,976,524 $

15,358,356

14,343,000

--

--

--

--

--

11,808,911

--

--

--

--

-- 174,013 3,400,290
82,356 -- -- -- --
9,784,695 -- --
258,447 --
37,981,878

-- -- 373,244 3,286,171 24,234,000 12,646,243 700,161 -- 9,809,177 -- -- -- 1,504,237 73,790,233

-- -- -- -- -- 156,789,431 -- -- -- 372,456 -- 128,542 -- 269,104,515

-- -- -- 136,670 3,795,285 672,505 -- -- 8,443,863 -- -- 71,873 -- 45,905,631

1,071,411 $ 89,941 -- --
-- -- -- 57,711 517,721 -- -- -- -- -- -- -- -- 1,736,784

1,259,396 -- -- --
-- -- -- -- -- 119,743 -- -- 787,064 -- -- 7,275 -- 2,173,478

Non-Current Assets Accounts Receivable, net Component Units Pledges and Contributions Other Investments 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

5,415,000 -- -- --
202,569,553 --
3,293,750 117,341,744
-- -- 59,323,472 387,943,519 425,925,397

-- 69,989,000 14,107,000 401,494,000 116,872,823
-- 23,518,944
-- -- 1,470,060,000 147,397,000 2,243,438,767 2,317,229,000

-- -- -- 63 -- 3,469,912 -- -- -- -- 807,914 4,277,889 273,382,404

-- 6,532,146
-- 16,552,416 211,334,317
-- -- 52,811,934 -- 37,975,707 82,805,582 408,012,102 453,917,733

-- 1,027,500
16,588 35,619,861
-- -- 240,966 -- -- 221,076,112 14,719,740 272,700,767 274,437,551

-- -- -- -- 31,675,308 -- -- -- 3,543,390 -- 1,014,811 36,233,509 38,406,987

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, 2019

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 Due to Other Funds 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 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.

$

7,816,725 $

5,328,962 $

--$

8,239,582 $

--

--

--

--

--

--

--

--

--

--

--

--

5,005,761

--

--

--

--

--

--

--

--

(28)

--

--

--

626,028

--

--

15,771

9,376,038

93,378,155

1,324,742

--

--

--

--

1,200,050

18,164,000

62,236,768

779,628

--

242,000

--

29,678

--

--

40,893,012

80,051

--

--

--

--

--

55,613,000

--

--

--

--

405,778

--

11,818,000

12,065,000

--

12,575,000

--

1,504,237

--

550

--

--

--

--

--

444,000

--

--

25,856,307

103,363,237

196,913,713

23,029,231

35,246 $ -- -- -- -- -- -- --
80,312 -- -- -- --
20,994 -- -- -- -- -- --
136,552

723,082 -- -- -- -- -- -- --
26,082 -- -- -- -- -- -- --
800,000 -- -- --
1,549,164

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

-- -- -- -- 8,398,867 -- -- -- 351,286,357 -- -- -- -- 359,685,224 385,541,531

290,674 113,714,697
-- 5,629
-- 9,363,000 70,347,000
-- 222,659,000
15,522,763 -- -- --
431,902,763 535,266,000

-- -- -- -- -- -- -- 3,436,592 -- -- -- -- -- 3,436,592 200,350,305

-- -- -- -- -- -- -- -- 347,349,955 2,265 -- -- -- 347,352,220 370,381,451

-- -- -- -- -- -- 9,472,672 -- -- 818,690 -- -- -- 10,291,362 10,427,914

-- -- -- -- -- -- -- -- 31,165,435 -- -- -- -- 31,165,435 32,714,599

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

--

--

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

19,076,356

(12,793,068)

807,914

(34,864,945)

5,247,068

--

1,396,470,000

--

37,981,174

132,872,471

9,692,846

192,397,000

--

29,381,899

90,841,621

11,614,664

205,889,068

72,224,185

51,038,154

35,048,477

$

40,383,866 $ 1,781,963,000 $

73,032,099 $

83,536,282 $ 264,009,637 $

1,014,811
-- -- 4,677,577 5,692,388

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

2019 Annual Financial Report 49

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS JUNE 30, 2019

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 Due From Other Funds 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.

$

57,831,568 $

2,602,149 $

28,640,409 $

--

13,512,095

--

--

24,908,997

--

--

129,344,169

--

1,509,047 $ 4,658,278
-- --

-- -- 1,375,675 -- -- 2,101,222 -- -- -- -- -- 872,644 -- 62,181,109

-- -- 2,555 152,891 31,069,338 2,903,823 -- -- -- -- -- 288,790 -- 204,784,807

-- -- -- 756,238 -- 55,728,822 -- -- 8,533,296 -- -- 230,885 28,325,675 122,215,325

-- -- -- -- -- 391 -- -- 4,160,305 -- -- 142,017 -- 10,470,038

1,116,937 $ 5,139,624
725,430 --

468,042 16,917,081
-- --

-- -- -- -- -- -- -- -- 2,887,974 -- -- -- -- 9,869,965

-- -- -- -- 123,676 -- -- -- 12,796,529 -- -- 22,120 -- 30,327,448

Non-Current Assets Accounts Receivable, net Component Units Pledges and Contributions Other Investments 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

-- -- -- 51,808,178 -- -- 305,118 -- -- -- 323,545,121 375,658,417 437,839,526

-- 48,261,818
-- 187,306,840
-- -- 2,680,881 -- -- 952,031,687 35,913,480 1,226,194,706 1,430,979,513

-- -- -- 55,015,982 223,082,949 -- 962,074 2,821,316 -- 5,765,025 20,046,315 307,693,661 429,908,986

-- -- -- -- 123,550,026 -- 175,000 5,912,403 -- -- 5,047,332 134,684,761 145,154,799

-- -- -- 214,820 111,292,376 -- -- 3,594,696 -- -- -- 115,101,892 124,971,857

-- 1,016,666
-- 5,461,737 382,752,777
-- -- 31,227,850 -- -- 2,097,069 422,556,099 452,883,547

DEFERRED OUTFLOWS OF RESOURCES

$

13,316,338 $

--$

14,156,893 $

--$

--$

--

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, 2019

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 Due to Other Funds 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 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.

$

328,078 $

383,591 $

2,013,499 $

5,783,920

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

9,750

2,555

1,375,675

--

5,995,374

5,852,558

58,179,707

--

--

--

37,373,561

1,242,449

2,084,538

--

--

28,325,675

--

64,065,725

--

--

--

--

--

514,880

--

--

--

--

2,885,000

--

9,485,000

--

801,285

--

--

--

--

--

--

--

52,368,488

74,236,163

100,098,169

2,559,333 $ -- -- -- -- -- -- -- -- --
407,215 -- -- --
2,001,000 --
3,091,368 -- -- --
8,058,916

1,043,795 $ -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
3,225,000 -- -- --
4,268,795

2,892,161 -- --
451,448 -- -- -- -- -- -- -- -- -- --
37,241,590 --
9,950,000 -- -- --
50,535,199

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

-- -- -- -- -- 305,118 15,836,592 -- 88,876,151 -- 3,737,734 -- -- 108,755,595 161,124,083

-- -- -- 1,666,423 -- -- 14,496,642 -- -- 8,008,355 2,325,789 -- -- 26,497,209 100,733,372

-- -- -- -- 1,824,121 -- 8,516,222 -- 234,430,567 -- -- -- -- 244,770,910 344,869,079

-- -- -- -- -- -- 810,000 -- 126,029,323 -- -- -- -- 126,839,323 134,898,239

-- -- -- -- -- -- -- -- 114,947,700 -- -- -- -- 114,947,700 119,216,495

-- -- -- -- -- -- 37,351,481 -- 350,691,146 -- -- -- -- 388,042,627 438,577,826

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

--

--

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

225,525,982

20,901,958

11,530,093

5,047,332

--

643,785,937

--

542,264,019

64,505,799

123,294,227

$ 290,031,781 $ 1,330,246,141 $

-- 2,821,234 84,845,473 99,196,800 $

-- -- 5,209,228 10,256,560 $

--

--

-- -- 5,755,362 5,755,362 $

471,975 1,352,979 12,480,767 14,305,721

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

2019 Annual Financial Report 51

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS JUNE 30, 2019
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 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 Component Units Pledges and Contributions Other Investments 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

$

2,606,387 $

--

--

--

--$ -- -- --

387,225,919 88,766,891 90,582,188
154,442,586

-- -- -- -- -- 156,762 -- -- 5,248,287 -- -- 14,880 -- 8,026,316

-- -- (5,151,764) 1 (8,878,856) (1) -- -- (3,318,818) -- -- -- -- (17,349,438)

4,304,155 174,013 --
14,228,427 73,008,955 411,811,830
716,632 249,362 92,116,435 372,456 20,646,799 39,539,728 30,445,162 1,408,631,538

-- -- -- -- 160,371,065 -- -- -- -- 11,496,632 227,338 172,095,035 180,121,351

(5,415,000) -- --
(175,829,082) (20,743,406) (1) -- -- -- -- 2,186,398
(199,801,091) (217,150,529)

-- 149,160,756
34,336,434 751,586,834 2,273,011,955
19,144,911 44,126,969 263,607,135
3,543,390 3,105,393,202 1,238,477,771 7,882,389,357 9,291,020,895

$

--$

--$

50,520,218

52 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS JUNE 30, 2019
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 Due to Other Funds 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 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 (Deficit)
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

$

2,421,583 $

(37,671,851) $

91,378,486

--

--

15,136,689

--

--

8,080

--

--

451,448

--

--

5,005,761

--

37,671,848

37,671,848

--

--

9,722

--

(2,965,366)

--

--

3

271,862,640

--

--

248,609

--

(883,121)

128,511,065

--

--

40,386,356

--

(67,529,385)

43,337,828

--

--

10,887,992

--

--

96,692,251

--

--

8,983,816

4,205,000

--

130,329,368

--

--

2,396,557

--

--

1,000,000

--

--

21,341,066

6,626,583

(71,377,872)

905,639,582

-- -- -- -- -- -- -- -- 158,332,329 -- 4,854,779 -- -- 163,187,108 169,813,691
--

-- (113,714,697)
-- -- (6,727,384) -- -- -- -- -- -- -- -- (120,442,081) (191,819,953)

290,674 --
3,630,038 1,672,052 15,141,815 32,116,715 178,374,242 74,566,074 3,164,340,614 26,523,480 37,493,371
580,624 6,758,623 3,541,488,322 4,447,127,904

--

16,363,042

227,338

--

310,914,736

--

--

2,445,728,311

--

(250,000)

1,147,673,833

10,080,322

(25,080,576)

973,733,287

$

10,307,660 $ (25,330,576) $ 4,878,050,167

2019 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, 2019

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Patient Services Rents and Royalties 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.

$

--$

49,041,572 $

667,250 $

--$

--$

--

--

--

--

--

--

--

26,536

11,293,495

--

27,576

--

--

685,198

--

60,763,027

245,288

--

40,893

804,178,864

172,516

904,575

1,003,935

13,200,977

4,793,939

8,641,953

2,463,215

--

--

232,200

2,030,399

585,392

1,748,811

--

--

--

892,193

--

--

--

--

810,140

370,921

--

Total Operating Revenues

5,096,276

61,239,642

866,613,076

14,516,181

8,087,452

9,268,238

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

184,583 986,491 329,444 129,890 183,877 582,643
-- 1,236,657
--

-- -- -- -- -- -- -- 60,204,418 --

-- 291,359,223
76,950,571 156,834,367
1,341,565 1,096,824 4,389,973 356,966,988 37,115,718

-- 384,665
-- -- -- -- 37,418 6,650,904 2,618,182

-- 498,183
-- -- 101,644 827,873 -- 2,748,323 1,074

-- -- -- 17,683 142,367 264,900 -- 1,518,061 457

Total Operating Expenses

3,633,585

60,204,418

926,055,229

9,691,169

4,177,097

1,943,468

Operating Income (Loss)

$

1,462,691 $

1,035,224 $ (59,442,153) $

4,825,012 $

3,910,355 $

7,324,770

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, 2019

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

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.

$

--$

--$

31,992,211 $

--$

--$

--

-- -- -- 1,078,760 (853,007) --

-- -- -- 308,973 -- (2,028)

2,955,709 3,430,939
-- 3,077,450 (9,556,881) (9,673,002)

-- -- -- 260,379 (3,197,663) 27,455,348

-- -- -- (500,333) (3,967,057) (4,200)

-- -- -- 470,687 (5,903,990) --

225,753

306,945

22,226,426

24,518,064

(4,471,590)

(5,433,303)

1,688,444

1,342,169

(37,215,727)

29,343,076

(561,235)

1,891,467

-- 293,262

--

998,143

--

--

--

--

--

--

1,516,507

1,412,040

Total Other Revenues, Expenses, Gains or Losses

293,262

--

998,143

--

1,516,507

1,412,040

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

1,981,706 37,908,340

1,342,169 8,525,921

(36,217,584) 334,311,503

29,343,076 29,247,662

955,272 34,327,313

3,303,507 13,875,463

Net Position, End of Year

$

39,890,046 $

9,868,090 $ 298,093,919 $

58,590,738 $

35,282,585 $

17,178,970

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

2019 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, 2019

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Patient Services Rents and Royalties 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

$

--$

--

573,543

403,278

--$ -- -- --

--$ -- -- 24,607,707

--$ -- -- --

72,228,675 $ 1,451,137
18,144,652 --

-- -- -- 56,398,194

12,300 9,085,214
145,955 --

10,907,866 -- --
1,726,951

974,893 6,713,238
-- 3,260,408

18,001,804 20,275,927
6,380,200 3,103,029

3,134,301 -- -- --

9,280,181 3,528,289
-- --

Total Operating Revenues

10,220,290

12,634,817

35,556,246

47,760,960

94,958,765

69,206,664

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

-- -- -- 875,551 162,825 1,025,198 -- 7,941,531 --

-- -- -- 323,230 -- -- -- 2,309,799 --

-- 8,928,818 2,608,630
-- 2,549,098 7,923,239 1,783,820 14,521,134
91,622

-- 2,436,678
-- -- 1,413,133 7,994,573 -- 40,503,112 647,101

-- -- -- -- 74,130 -- 6,651 91,833,484 707,419

-- -- -- -- 6,541,114 12,213,964 -- 58,043,026 7,709,956

Total Operating Expenses

10,005,105

2,633,029

38,406,361

52,994,597

92,621,684

84,508,060

Operating Income (Loss)

$

215,185 $

10,001,788 $

(2,850,115) $

(5,233,637) $

2,337,081 $ (15,301,396)

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, 2019

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

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

$

--$

--$

--$

--$

--$

--

-- -- -- 395,465 -- --

-- -- -- 618,419 (8,398,868) --

-- -- -- 41,682 -- --

-- -- -- 6,948,382 (3,770,674) --

-- -- 750,000 748,849 (2,687,677) 732,244

-- -- 907,869 7,264,560 (12,735,466) --

395,465

(7,780,449)

41,682

3,177,708

(456,584)

(4,563,037)

610,650

2,221,339

(2,808,433)

(2,055,929)

1,880,497

(19,864,433)

--

--

--

--

--

17,468,594

167,785

--

--

--

--

2,335,080

Total Other Revenues, Expenses, Gains or Losses

167,785

--

--

--

--

19,803,674

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

778,435 21,042,143

2,221,339 30,610,426

(2,808,433) 15,127,840

(2,055,929) 270,459,653

1,880,497 26,425,434

(60,759) 72,138,452

Net Position, End of Year

$

21,820,578 $

32,831,765 $

12,319,407 $ 268,403,724 $

28,305,931 $

72,077,693

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

2019 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, 2019

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Patient Services Rents and Royalties 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.

$

--$

-- $ 726,175,147 $

--$

--$

--

--

--

12,748,514

--

--

--

571,661

--

93,274,355

--

--

--

594,896

60,000

--

350,540

--

--

14,030,980 -- -- --

30,360,000 56,873,000 58,329,751
--

14,003,106 -- -- --

40,762,497 5,620,442 1,179,819 --

18,591 1,034,455 6,261,026
442,972

1,778,078 -- -- --

Total Operating Revenues

15,197,537

145,622,751

846,201,122

47,913,298

7,757,044

1,778,078

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

-- -- -- -- -- -- 193,750 2,755,877 --

-- 2,449,000
706,000 101,000
79,000 --
944,000 102,127,000
3,091,000

-- -- -- -- 112,207 -- -- 837,655,776 232,952

-- 3,068,011
-- 46,988
3,061 2,622,282 2,616,619 16,098,001 5,037,407

2,618,616 1,071,574
94,304 --
183,585 2,200,954
49,909 3,727,680
55,202

-- -- -- -- -- -- -- 1,703,366 --

Total Operating Expenses

2,949,627

109,497,000

838,000,935

29,492,369

10,001,824

1,703,366

Operating Income (Loss)

$

12,247,910 $

36,125,751 $

8,200,187 $

18,420,929 $

(2,244,780) $

74,712

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, 2019

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

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.

$

--$

--$

--$

--$

--$

--

-- -- -- 600,851 (11,832,439) (18,211)

-- -- -- 41,738,249 (13,089,000) --

-- -- -- 552,444 -- --

-- -- -- 2,928,319 (12,889,878) (1,031,791)

-- -- -- 5,718,559 -- --

-- -- -- 55,150 (1,132,057) --

(11,249,799)

28,649,249

552,444

(10,993,350)

5,718,559

(1,076,907)

998,111

64,775,000

8,752,631

7,427,579

3,473,779

(1,002,195)

--

--

--

--

--

--

--

23,754,000

--

2,199,101

2,882,525

--

Total Other Revenues, Expenses, Gains or Losses

--

23,754,000

--

2,199,101

2,882,525

--

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

998,111 39,385,755

88,529,000 1,693,434,000

8,752,631 64,279,468

9,626,680 73,909,602

6,356,304 257,653,333

(1,002,195) 6,694,583

Net Position, End of Year

$

40,383,866 $ 1,781,963,000 $

73,032,099 $

83,536,282 $ 264,009,637 $

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

5,692,388

2019 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, 2019

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Patient Services Rents and Royalties 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.

$

--$

--

--

154,272,670

--$ -- -- 11,018,437

124,848,247 $ 6,169,886
52,399,556 --

--$ -- -- --

--$ -- -- --

-- -- 75,000 546,903

--

1,117,504

27,785,611

--

72,700,642

--

--

33,155,856

--

--

--

--

6,553,011 115,275 -- --

6,194,639 -- -- --

19,652,389 2,204,808 308,271 --

Total Operating Revenues

154,272,670

117,992,439

211,203,300

6,668,286

6,194,639

22,787,371

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

-- 16,408,414
495,616 --
10,524,203 -- --
110,784,142 11,294,829

-- 4,024,499
-- -- 281,104 77,000 -- 82,321,284 1,234,672

-- -- -- -- -- -- -- 197,860,655 114,324

-- 112,148
-- -- -- -- -- 723,517 145,467

-- -- -- -- -- -- -- 436,209 --

-- 390,354
-- -- 31,538 1,514,135 -- 1,117,347 --

Total Operating Expenses

149,507,204

87,938,559

197,974,979

981,132

436,209

3,053,374

Operating Income (Loss)

$

4,765,466 $

30,053,880 $

13,228,321 $

5,687,154 $

5,758,430 $

19,733,997

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, 2019

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

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.

$

--$

--$

--$

--$

--$

--

-- -- 16,010,600 1,437,603 (3,379,796) 1,109,233

-- -- -- 18,230,068 (1,055,888) 733,491

-- -- -- 2,874,824 (9,901,906) (18,190)

-- -- -- 19,300 (3,506,754) --

-- -- -- 210,178 (4,958,664) --

-- -- -- 198,717 (14,691,346) (6,177,358)

15,177,640

17,907,671

(7,045,272)

(3,487,454)

(4,748,486)

(20,669,987)

19,943,106

47,961,551

6,183,049

2,199,700

1,009,944

(935,990)

--

--

--

--

--

--

--

46,346,128

--

--

--

47,977

Total Other Revenues, Expenses, Gains or Losses

--

46,346,128

--

--

--

47,977

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

19,943,106 270,088,675

94,307,679 1,235,938,462

6,183,049 93,013,751

2,199,700 8,056,860

1,009,944 4,745,418

(888,013) 15,193,734

Net Position, End of Year

$ 290,031,781 $ 1,330,246,141 $

99,196,800 $

10,256,560 $

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

5,755,362 $

14,305,721

2019 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, 2019

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Patient Services Rents and Royalties 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.

VSU Auxiliary Services Real Estate Foundation

Elimination/ Consolidation
Entries

Total

$

--$

-- $ 972,960,891

--

--

20,369,537

--

--

176,386,374

--

--

309,987,031

--

804,178,864

6,393,317

2,561,119

242,240,082

95,811

(1,012,840)

182,545,467

--

--

108,401,882

1,030,732

--

10,745,153

7,519,860

1,548,279

2,827,815,281

-- -- -- -- -- -- -- 1,125,238 --

-- -- -- -- -- -- -- (5,055,725) --

2,803,199 332,118,058
81,184,565 158,328,709
23,724,451 38,343,585 10,022,140 1,997,857,804 70,097,382

1,125,238

(5,055,725)

2,714,479,893

$

6,394,622 $

6,604,004 $ 113,335,388

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, 2019

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
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

$

--$

--$

31,992,211

-- -- -- 85,895 (5,650,765) --

--

2,955,709

--

3,430,939

--

17,668,469

--

95,363,430

--

(133,159,776)

--

13,105,536

(5,564,870)

--

31,356,518

829,752

6,604,004

144,691,906

--

--

18,466,737

--

--

80,954,405

--

--

99,421,142

829,752 9,477,908

6,604,004 (31,934,580)

244,113,048 4,633,937,119

$

10,307,660 $ (25,330,576) $ 4,878,050,167

2019 Annual Financial Report 63

NOTES TO THE FINANCIAL STATEMENTS

UNIVERSITY SYSTEM OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2019
Note 1 Summary of Significant Accounting Policies
Nature of Operations The University System of Georgia (USG) serves Georgia 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 is the custodian of the Board of Regents Retiree Health Benefit Fiduciary Fund and the Deferred Compensation Plan Fiduciary Fund. Augusta University, an organizational unit of the USG, is the custodian of the Early Retirement Plan Fiduciary Fund.
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. 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, 2019, 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, 30912-4810
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 Building, Suite 305, 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-1000, 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 SE, Atlanta, Georgia, 30303
Georgia State University Foundation, Inc., Attn: Dale Palmer, GSU Foundation, One Park Place South, Suite 533, Atlanta, GA 30303
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 Building, Suite 325,Atlanta GA30332-0257 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, 926 Dalney Street, NW, 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., 720 St. Sebastian Way, 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, Room 225, 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, 456 E. Broad Street,Athens, GA30602-1536
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.
2019 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 of resources, liabilities, deferred inflows of resources, 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 fund:
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 2019, the USG adopted GASB Statement No. 83, Certain Asset Retirement Obligations. This Statement addresses accounting and financial reporting for certain asset retirement obligations (AROs). This Statement also requires disclosure of information about the nature of a government's AROs, the methods and assumptions used for the estimates of the liabilities, and the estimated remaining useful life of the associated tangible capital assets. The adoption of this Statement does not have a significant impact on the USG's financial statements.
For fiscal year 2019, the USG adopted GASB Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements. The objective of this Statement is to improve the information that is disclosed in notes to government financial statements related to debt, including direct borrowings and direct placements. The adoption of this Statement does not have a significant impact on the USG's financial statements.
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 purpose or 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 three 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 purpose or 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 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 purpose or 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.
68 University System of Georgia

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, 2019 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 for 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 USG 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 USG institutions have rental obligations under the PPV program and at the conclusion of the program, funds will be returned to each participating 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.
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, and other funds held for various governments, companies, clubs or individuals.
2019 Annual Financial Report 69

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) The net OPEB liability represents the USG's proportionate share of the difference between the total OPEB liability 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 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.
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.
70 University System of Georgia

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 unobligated state appropriations (surplus). Unobligated 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 As a political subdivision of the State of Georgia which has been delegated the right to exercise part of the sovereign power of the State, the USG is not subject to federal income tax.
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 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.
2019 Annual Financial Report 71

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

$ 1,606,513,459 $ 4,637,744,258

Changes in accounting policies and principles Revenue recognition under ASU 2014-09 Bond issuance cost accounting policy Investment in sales-type lease policy
Correction of prior year errors Capital assets Accounts receivable Lease purchase obligations Deferred outflows of resources

-- -- --
2,718,945 299,164
(1,157,922) (821,493)

(3,235,992) (2,105,269)
(519,768)
-- 2,053,890
-- --

Net position, beginning of year, restated

$ 1,607,552,153 $ 4,633,937,119

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. Special Items for the year ended June 30, 2019 were as follows:

Abraham Baldwin Agricultural College Augusta University Kennesaw State University University of North Georgia

Capital Asset Transfers

Gain/(Loss) on Early Extinguishment of Debt

$

(44,966,516) $

(942,687) $

97,644,818

--

--

1,034,390

--

--

Total (45,909,203) 97,644,818
1,034,390 --

Totals

$

52,678,302 $

91,703 $

52,770,005

Abraham Baldwin Agricultural College (ABAC) In July 2018, GSFIC funded $18,730,728 to ABAC to be use to pay-off the remaining lease purchase obligation principle due for the Bainbridge Student Wellness Center. These GSFIC funds along with additional institutional funds of $942,687 were sent to the University System of Georgia Foundation, Inc. relieving ABAC of any future obligations related to this debt. The $942,687 loss on early extinguishment of debt is reported as a special item on the Statement of Revenues, Expenses, and Changes in Net Position.
In August 2018, ABAC transferred land, building, improvements, and equipment located at 2500 East Shotwell Street, Bainbridge, Georgia with a gross book value of $63,017,803 and accumulated depreciation of $18,051,287 for a net book value of $44,966,516 to Southern Regional Technical College, an organizational unit of the Technical College System of Georgia. This transfer is reported as a special item on the Statement of Revenues, Expenses, and Changes in Net Position.

72 University System of Georgia

Augusta University In March 2019, Georgia Technology Authority transferred property of approximately 16.47 acres of land located at 1 Eleventh Street, Augusta, Richmond County, Georgia and the two buildings known as the Georgia Cyber Center (Hull McKnight Building and Schaffer MacCartney Building) which were erected on the site as well as equipment in those buildings to Augusta University. The land, buildings, and equipment had a reported gross book value of $98,428,910 and accumulated depreciation of $784,092 for a net book value of $97,644,818. The net effect of the transfer of assets of $97,644,817 is reported as a special item on the Statement of Revenues, Expenses, and Changes in Net Position.
Kennesaw State University During fiscal year 2019, a capital lease agreement for a multi-purpose building between Kennesaw State University and Kennesaw State University Foundation, Inc. was amended resulting in the extinguishment of $1,034,390 of lease purchase obligation debt. This gain on early extinguishment of debt is reported as a special item on the Statement of Revenues, Expenses, and Changes in Net Position.
University of North Georgia During fiscal year 2019, the University of North Georgia received equipment with gross book value of $175,800 and accumulated depreciation of $175,800 for a net book value of $0 from affiliate organizations outside the reporting entity.
Note 2 Deposits and Investments
Cash and cash equivalents and investments as of June 30, 2019 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

$

1,385,282,311

262,314,825

72,567,261

519,191

197,694,631 3,335,727 34,175
249,941,368

25,243,234

235,445,864

$

2,432,378,587

Cash on hand, deposits and investments as of June 30, 2019 consist of the following:

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

$

1,117,622

717,920,381

1,842,229,668

(128,889,084)

$

2,432,378,587

2019 Annual Financial Report 73

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.
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, 2019, the bank balances of the USG's deposits totaled $749,159,268. This balance includes deposits in fiduciary funds as these balances are not separable from the holdings of the USG. Of these deposits, $10,894,016 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

Total deposits exposed to custodial credit risk

$

230,483 --
10,663,533 10,894,016

74 University System of Georgia

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 $119,087 as follows:

Program UGA - Oxford Program UGA Cortona Art Program

Institution Barclay's Banca CR Firenze

Currency British Pound European Euro

U.S. Value

$

51,972

67,115

$

119,087

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.
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.

2019 Annual Financial Report 75

The following table summarizes the valuation of the USG's investments measured at fair value on a recurring basis as of June 30, 2019.

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

$ 30,453,783 $ 30,453,783 $

--$

218,512,918 384,767,691 200,133,960
1,384,386 8,248,497
986,599 201,342,136

-- 95,634,421
11,384 --
8,248,497 986,599
201,342,136

218,512,918 289,133,270 200,122,576
-- -- -- --

197,393,925 2,671,451
156,556,930 357,260
6,345,412 1,006,318 1,011,769

197,393,925 2,671,451
156,556,924 119,086 --
1,006,318 1,011,769

-- -- -- 238,174 -- -- --

1,411,173,035 $ 695,436,293 $ 708,006,938 $

--
-- -- -- 1,384,386 -- -- --
-- -- 6 -- 6,345,412 -- --
7,729,804

431,056,633 $ 1,842,229,668

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, 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.

76 University System of Georgia

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 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, 2019 was $608,840,985.
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, 2019 was $11,770,102.
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, 2019 was $152,273,561.
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, 2019 was $14,659,511.
2019 Annual Financial Report 77

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, 2019 was $208,669,549.

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, 2019 was $68,018,464.

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

Statement of Net Position - June 30, 2019

Assets

Pooled Investments*

$

1,062,363,703

Receivables

1,868,469

$

1,064,232,172

Distribution of Net Position

USG Account Balance

$

873,929,313

Component Units and Affiliated Organizations

190,302,859

$

1,064,232,172

* 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 $13,971,913 and $3,219,951 for discretely presented component units reported as short-term investments and investments, respectively.

Statement of Changes in Net Position - June 30, 2019

Market Value Plus Accrued Income on July 1, 2018

$

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, 2019

$

926,779,905 205,419,558
(979,009) (106,798,457)
24,485,699 31,740,872 (15,914,400)
(501,996) 1,064,232,172

78 University System of Georgia

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 39 days.
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. The following table presents the interest rate risk for the USG's debt investment at June 30,2019, utilizing effective duration distribution methods:

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

$ 30,453,783 $ 15,133,575 $ 7,579,167 $ 4,832,897 $ 2,908,144 $

--

218,512,918 384,767,691 200,133,960
1,384,386 8,248,497
986,599 201,342,136

173,900,052 209,549,433
9,282,920 --
8,248,497 5,000
128,604

7,623,855 26,208,975 59,500,002
-- -- 101,440 --

6,144,644 102,341,572 131,180,524
-- -- 332,407 35,314,316

-- 16,533,261
170,514 -- --
337,908 66,387,383

30,844,367 30,134,450
-- 1,384,386
-- 209,844 99,511,833

1,045,829,970 $ 416,248,081 $ 101,013,439 $ 280,146,360 $ 86,337,210 $ 162,084,880

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

197,393,925 2,671,451
156,556,930 357,260
6,345,412 1,006,318 1,011,769

Investment Pools Office of the State Treasurer Georgia Fund 1

431,056,633

Total Investments

$ 1,842,229,668

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.

2019 Annual Financial Report 79

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, 2019, $13,936,952 was uninsured and held by the investment's counterparty's trust department or agent, but not in the USG's name. Of this balance, $1,401,548 is related to the Deferred Compensation Fiduciary Fund.

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

$ 384,767,691 $ 383,656,051 $

200,133,960

1,250,090

1,384,386
8,248,497 986,599
201,342,136

--
6,505,573 321,562 380,941

1,111,640 $

--$

1,919,269

196,710,574

--
-- 389,026
46,642

--
-- 276,011
46,237

--$ 242,644
-- -- -- --

--$ --

-- 11,383

--
-- -- 25,230

1,384,386
1,742,924 --
200,843,086

$ 796,863,269 $ 392,114,217 $ 3,466,577 $ 197,032,822 $

242,644 $

25,230 $ 203,981,779

The Early Retirement Plan Fiduciary Fund has $19,801,055 in mutual bond funds and $2,667,860 in money market mutual funds (cash and cash equivalents on the statement of fiduciary net position). Mutual bond fund investments are not rated. For money market mutual fund investments, $987,788 are rated AAA and $1,680,072 are not rated.
The Deferred Compensation Fiduciary Fund has $716,599 in mutual bond funds, $1,384,386 in guaranteed investment contracts, and $229,739 in money market mutual funds (cash and cash equivalents on the statement of fiduciary net position). Mutual bond fund investments and guaranteed investment contracts are not rated. Money market mutual fund investments are rated AAA.
The Retiree Health Benefit Fiduciary Fund has $87,046,515 in mutual bond funds and $1,565,815 in money market mutual funds. These investments are reported as pooled investments on the statement of fiduciary net position. Mutual bond fund investments are not rated. Money market mutual fund investments are rated AAA.
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.

80 University System of Georgia

At June 30, 2019, approximately 11.77%, 10.89%, 5.33%, 5.20% and 5.18% of business-type activity and fiduciary fund investments were investments in Federal National Mortgage Assoc. notes and pools, Government National Mortgage Assn. notes and pools, Vanguard Institutional Index Fund, Federal Home Loan Bank notes and pools, and Western Asset Core Bond Portfolio, respectively.

Specifically for the Deferred Compensation Fiduciary Fund, approximately 31.98%, 20.37%, 16.54%, 8.26%, 7.90%, 5.49% and 5.31% of investments were invested in TIAA traditional annuity, TIAA Real Estate Fund, Fidelity Contrafund Fund, Fidelity Strategic Income Fund, Fidelity U.S. Bond Index Fund, Fidelity Low Priced Stock Fund, and Fidelity Investments Money Market Government Portfolio, respectively.

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, 2019:

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

$

71,922,196

77,874,998

83,229,010

25,716,389

16,236,837

15,045,254

275,492,678

147,469,212

712,986,574

49,340,237

$

663,646,337

Note 4 Inventories
Inventories consisted of the following at June 30, 2019: Consumable Supplies Merchandise for Resale

$

6,715,802

15,424,607

Total

$

22,140,409

Note 5 Notes and Loans Receivable
The Federal Perkins Loan Program (the Program) comprises substantially all of the loans receivable at June 30, 2019. 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, 2019, the allowance for uncollectible loans was $2,246,352.

2019 Annual Financial Report 81

Note 6 Capital Assets

Changes in capital assets for the year ended June 30, 2019 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, 2018

Special Item and Other Transfers

Additions

Reductions

Balance June 30, 2019

$ 417,767,495 $ 52,015,213
231,606,547 12,266,427
713,655,682

5,080,923 $ (71,900) -- --
5,009,023

5,846,419 $ 4,915,641 173,365,612 5,505,086 189,632,758

1,219 $ 1,670,000 207,698,454 12,266,425 221,636,098

428,693,618 55,188,954
197,273,705 5,505,088
686,661,365

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

356,120,581 12,196,444,943
289,643,476 1,722,937,018
935,486,771 6,690,731
92,778,419 15,600,101,939

-- 33,372,553
(829,499) (1,849,170)
-- (116,000)
-- 30,577,884

33,384,330 561,898,123
10,101,929 147,504,880
32,461,860 10,634
35,768,352 821,130,108

1,104,369 35,370,084
603,413 70,893,587
7,998,383 -- --
115,969,836

388,400,542 12,756,345,535
298,312,493 1,797,699,141
959,950,248 6,585,365
128,546,771 16,335,840,095

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

139,507,861 4,105,886,218
129,331,479 1,264,649,484
761,107,952 1,670,246
30,481,530 6,432,634,770

-- (14,276,310)
(620,950) (2,194,135)
-- -- -- (17,091,395)

14,372,051 320,556,617
12,247,511 121,944,796
40,344,684 158,030
9,542,581 519,166,270

614,753 24,896,245
580,190 59,004,646
7,998,388 -- --
93,094,222

153,265,159 4,387,270,280
140,377,850 1,325,395,499
793,454,248 1,828,276
40,024,111 6,841,615,423

Total Capital Assets, Being Depreciated/Amortized, Net

9,167,467,169

47,669,279

301,963,838

22,875,614

9,494,224,672

Capital Assets, net

$ 9,881,122,851 $ 52,678,302 $ 491,596,596 $ 244,511,712 $ 10,180,886,037

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, 2019, GSFIC transferred completed GSFIC managed capital projects valued at $291,147,767 to the USG. In addition, at June 30, 2019, GSFIC had construction in progress of approximately $41,105,648 for incomplete GSFIC managed projects for the USG.

82 University System of Georgia

Note 7 Advances (Including Tuition and Fees)

Advances, including tuition and fees, consisted of the following at June 30, 2019:

Prepaid Tuition and Fees Research Other - Advances

Current Liabilities

$

130,279,000 $

43,724,340

45,524,977

Non-Current Liabilities --
8,171,409
3,293,750

Totals

$

219,528,317 $

11,465,159

Note 8 Long-Term Liabilities

Changes in long-term liability for the year ended June 30, 2019 was as follows:

(Restated) Balance
July 1, 2018

Additions

Reductions

Balance June 30, 2019

Current Portion

Lease Purchase Obligations

$ 2,914,788,616 $ 165,411,344 $ 224,828,602 $ 2,855,371,358 $ 112,368,955

Other Liabilities
Compensated Absences Notes and Loans Payable Claims and Judgments Pollution Remediation Total

229,020,469 8,095,268 1,805,912 1,085,840
240,007,489

174,705,110 6,448,462 5,270,030 1,146,441
187,570,043

172,322,080 1,782,793 1,212,246 1,085,840
176,402,959

231,403,499 12,760,937 5,863,696 1,146,441
251,174,573

156,613,255 1,141,335 2,378,631 1,146,441
161,279,662

Total Long-Term Liabilities

$ 3,154,796,105 $ 352,981,387 $ 401,231,561 $ 3,106,545,931 $ 273,648,617

Notes and Loans Payable The USG entered into a notes payable to secure Energy Performance Contracts. The interest rate for these notes vary between 2.00% to 2.64% and matures during fiscal year 2031. Notes and loan principal and interest payments related to capital financing activities for fiscal year 2019 were $1,099,762 and $116,237, respectively. Notes and loan principal and interest payments related to non-capital financing activities for fiscal year 2019 were $683,031 and $64,332, respectively. Below is the annual debt service related to the outstanding notes payable at June 30, 2019.

Year Ending June 30: 2020 2021 2022 2023 2024 2025 through 2029 2030 through 2034

Principal

Interest

$

1,141,335 $

2,051,173

2,096,554

2,142,954

1,204,896

3,244,194

879,831

$

12,760,937 $

258,653 260,871 215,490 169,090 123,203 344,979
17,464
1,389,750

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.

2019 Annual Financial Report 83

Savannah State University is responsible for pollution remediation at all institutional sites including, but not limited to ground contamination, storage/treatment/disposal of hazardous materials, and asbestos abatement. USG has recorded a liability related to this pollution remediation in the amount of $174,500. 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. There are no expected recoveries that have reduced this liability.
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 $438,000. 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 $533,941. 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, 2019, 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

$

37,978,129

735,559,108

469,109,816

$ 1,242,647,053

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

$

67,213,749

29,118,255

555,391,063

129,540,276

495,880,937

$ 1,277,144,280

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.

84 University System of Georgia

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, 2019, the University reports the three housing residences and one retail space as capital assets with a net carrying value of $56,970,318. For fiscal year 2019, the University reported a remaining deferred inflows of resources of $56,970,318 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 2019 was $36,000 and the remaining deferred inflow was $180,000.
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 of $704,805 to deferred inflows for uncollected funds. The amortized revenue recorded in fiscal year 2019 for the remaining construction commitment was $326,438 leaving deferred inflow balance of $1,632,191.
For Fiscal Year 2019, GGC reported a total remaining Deferred Inflow of Resources of $1,812,191 related to the service concession arrangement.
2019 Annual Financial Report 85

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; Georgia Southern University (formerly 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, $7,992,330 was amortized at June 30, 2019, leaving a remaining Deferred Inflow of Resources balance of $287,723,881 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, 2019, the University System Office amortized $4,636,064 of Deferred Inflows related to these seven projects, leaving a remaining Deferred Inflow of Resources balance of $166,898,312 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, 2019, the University System Office amortized $7,554,699 and recognized $1,733,482 in associated interest income, leaving a Deferred Inflow balance of $41,986,361 as of June 30, 2019.
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.
86 University System of Georgia

Note 10 Net Position

The breakdown of business type activity net position for the USG fund at June 30, 2019 is as follows:

NET POSITION Net Investment in Capital Assets

$ 7,029,370,125

Restricted for Nonexpendable Permanent Endowment

181,015,931

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

134,273,850 35,317,695 28,379,194 54,923,458 13,076,407
265,970,604

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

197,843,532 485,585,164
4,197,294 19,547,420 113,348,915 (6,262,939,583) (5,442,417,258)
$ 2,033,939,402

Other unrestricted net position is reduced by $4,437,522,220 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 $2,283,116,151 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 and 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 on endowment investments available for authorization for expenditure was $9,594,788 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 spending policy which limits spending between 3.0% and 6.0% of endowment principal market value. To the extent

2019 Annual Financial Report 87

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 and the USG member institution has determined not to utilize the total return concept, 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, 2019. In addition to these encumbrances, the USG had other significant unearned outstanding construction or renovation contracts in the amount of $29,368,387 executed as of June 30, 2019. 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 2019 were $131,637,297 and $140,651,952, respectively. Interest rates range from 0.61% - 23.56%.

The USG has $2,365,128,390 in outstanding lease obligations due to component units. The USG has $340,268,148 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, 2019:

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

Gross Amount

Less: Accumulated Depreciation

Net, Assets Held Under Capital Lease at June 30, 2019

Outstanding Balances per Lease
Schedules at June 30, 2019

( + )

( - )

( = )

$

58,409,705 $

--$

58,409,705 $

44,858,886

39,705,000

16,437,870

23,267,130

33,381,073

33,116,210

18,784,418

14,331,792

14,921,162

3,407,691,820

1,077,560,584

2,330,131,236

2,757,495,189

6,457,991

3,017,656

3,440,335

4,715,048

$ 3,545,380,726 $ 1,115,800,528 $ 2,429,580,198 $ 2,855,371,358

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.

88 University System of Georgia

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 2019 was $53,434,221 which includes payments to related parties of $25,581,692. The USG is obligated to pay these related parties a total of $33,641,551 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, 2019, are as follows:

Year Ending June 30: 2020 2021 2022 2023 2024 2025 through 2029 2030 through 2034 2035 through 2039 2040 through 2044 2045 through 2049 2050 through 2054

Real Property and Equipment Capital Leases Operating Leases

$ 264,186,458 $ 264,224,530 263,966,752 261,500,460 260,613,279
1,301,501,807 1,121,403,037
768,358,340 181,444,995
27,964,281 2,321,555

54,425,738 49,898,312 45,059,011 43,468,698 40,291,713 138,388,492 82,610,556
4,695,963 805,557 663,580 265,432

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

4,717,485,494 $ 1,502,191,913
359,922,223 $ 2,855,371,358

460,573,052

Operating Lease Revenue The USG leases certain facilities for use by others for terms varying from 1 to 10 years. The leases are accounted for
as operating leases; revenue for services provided and for use of facilities are recorded when earned.

Total revenues from rental of facilities were $599,591 for the fiscal year ended June 30, 2019. Minimum future revenues and rentals to be received under operating leases as of June 30, 2019, are as follows:

Year Ending June 30: 2020 2021 2022 2023 2024 2025 through 2029

Real Property Operating Leases

$

811,055

833,682

852,140

871,284

495,023

1,146,664

Total Minimum Lease Revenues

$

5,009,848

2019 Annual Financial Report 89

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.
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 2019. USG's contractually required contribution rate for the year ended June 30, 2019 was 20.90% of annual the USG payroll. The USG's contributions to TRS totaled $391,455,859 for the year ended June 30, 2019.
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.
90 University System of Georgia

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.

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, 2019 was 24.78% of annual covered payroll for old and new plan members and 21.78% for GSEPS members. The rates include the annual actuarially determined employer contributions rate of 24.66% of annual covered payroll for old and new plan members and 21.66% 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 $3,537,809 for the year ended June 30, 2019. 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, 2019, 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, 2018. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2017. An expected total pension liability as of June 30, 2018 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, 2018. At June 30, 2018, the USG's TRS proportion was 15.231314%, which was an increase of 0.183514% from its proportion measured as of June 30, 2017. At June 30, 2018, the USG's ERS proportion was 0.502234%, which was a increase of 0.036570% from its proportion measured as of June 30, 2017.

For the year ended June 30, 2019, the USG recognized pension expense of $320,425,986 for TRS and $3,721,808 for ERS. At June 30, 2019, 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 $ 187,168,477 $ 5,827,041 $

642,162 $

--

Changes of assumptions

42,662,300

--

972,737

--

Net difference between projected and actual earnings on pension plan investments

--

77,302,724

--

475,807

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

106,719,317

42,174,871

2,400,447

1,260,260

Contributions subsequent to the measurement date

391,455,859

--

3,537,809

--

Total

$ 728,005,953 $ 125,304,636 $ 7,553,155 $ 1,736,067

2019 Annual Financial Report 91

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 ending June 30, 2020. 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 Ending June 30:

2020

$

2021

$

2022

$

2023

$

2024

$

TRS
172,483,295 $ 91,726,331 $ (62,013,602) $ 5,741,493 $ 3,307,941 $

ERS
2,353,231 929,593 (790,948) (212,597) --

Actuarial assumptions The total pension liability as of June 30, 2018 was determined by an actuarial valuation as of June 30, 2017 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, 2017 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

7.30%, 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, 2017 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 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:

92 University System of Georgia

Asset class Fixed income Domestic large equities Domestic mid equities Domestic small equities International developed market equities International emerging market equities Alternatives
Total
* Rates shown are net of inflation

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 %

Discount rate The discount rate used to measure the total TRS and ERS pension liability was 7.50% and 7.30%, respectively. 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 above discount rates, 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 or 1-percentage-point higher 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%

$ 4,719,503,371 $ 2,827,258,134 $ 1,267,951,755

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

1%

Current

Decrease

discount rate

6.30%

7.30%

$ 29,367,336 $ 20,647,007 $

1% Increase
8.30% 13,217,060

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.
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.

2019 Annual Financial Report 93

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, 2019, plan participants consisted of the following:

Inactive Plan Participants:

Retirees and Beneficiaries Currently Receiving Benefits

610

Terminated Employees Entitled to Deferred Benefits

0

Disabled Employees Entitled to Deferred Benefits

0

Total

610

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 to the plan based on the actuarial valuation of the plan. Employer contributions to the plan for fiscal year 2019 were $13,084,672, which includes $5,886,802 contributed to the plan by affiliated organizations on-behalf of Augusta 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 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

94 University System 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. 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, and Vanguard Total Stock Market Exchange-traded Fund (ETF). These investments are 7.58%, 30.27%, and 19.93% respectively of the Plan's total investments.

For the fiscal year ended June 30, 2019, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was 7.53%.

Net Pension Liability (NPL) The components of the net pension liability at June 30, 2019 were as follows:

Total pension liability Plan fiduciary net position

$ 146,605,709 (105,375,867)

Net pension liability

$ 41,229,842

Plan Fiduciary Net Position as a percentage of total pension liability is 71.88%.
Actuarial Assumptions The total pension liability was determined by an actuarial valuation as of January 1, 2019 with the results rolled forward to the June 30, 2019 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.

2019 Annual Financial Report 95

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
77.91% --%
18.79% --% 3.30%

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%

$ 52,750,293 $ 41,229,842 $

1% Increase
8.50% 31,136,244

Schedule of Changes in Net Pension Liability For the year ended June 30, 2019, Augusta University recognized net pension liability of $41,229,842 calculated as
follows:

Total Pension Liability (a)

Plan Fiduciary Net Position (b)

Net Pension Liability (a) - (b)

Balance, June 30, 2018

$

148,863,688 $

99,022,119 $

49,841,569

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

10,636,036 1,581,985 (376,246) -- --
(14,099,754)

-- -- -- 13,084,672 7,368,830 (14,099,754)

10,636,036 1,581,985 (376,246)
(13,084,672) (7,368,830) --

Net Change

(2,257,979)

6,353,748

(8,611,727)

Balance, June 30, 2019

$

146,605,709 $

105,375,867 $

41,229,842

AU Health Systems, Inc. and Augusta University Research Institute, Inc. contributed $5,886,802 to the plan on behalf of Augusta University.

96 University System of Georgia

Schedule of Changes in Pension Expense For the year ended June 30, 2019, Augusta University recognized pension expense of $4,405,138 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 $ 10,636,036
(7,388,593) 1,581,985
(376,246) (48,044)
$ 4,405,138

Deferred Outflows/Inflows of Resources At June 30, 2019, Augusta 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

$

--$

2,499,573

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:

2020

$

2021

$

2022

$

2023

$

(564,651) (1,430,853)
(508,020) 3,951

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 2019, 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 $131,889,821 (9.24%) and $85,647,934 (6.00%), respectively.
VALIC, Fidelity, and TIAA-CREF have separately issued financial reports which may be obtained through their respective corporate offices.

2019 Annual Financial Report 97

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 2019, 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, 2019, and June 30, 2018 is shown below:

Active Employees: Unpaid Claims and Claim Adjustments

June 30, 2019 $ 33,467,179

June 30, 2018 $ 51,688,179

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

434,268,398

383,855,818

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

422,720,994

402,076,818

Unpaid Claims and Claim Adjustments

$ 45,014,583

$ 33,467,179

Retirees: Unpaid Claims and Claim Adjustments

$

4,631,431

$

7,497,596

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

94,056,257

86,808,731

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

92,266,985

89,674,896

Unpaid Claims and Claim Adjustments

$

6,420,703

$

4,631,431

* During fiscal year 2019, the USG began excluding administrative expense directly related to the payment of active employee medical claims from claims expense in an effort to be consistent with how the State of Georgia reports direct claims administrative expense related to active employees. The effect of this change on fiscal year 2019 and 2018 activity is a reduction of active employee claims expense of $21,599,686 and$22,459,548, respectively.
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.

98 University System of Georgia

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. 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, 2019.
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 2019, 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.
2019 Annual Financial Report 99

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, 2019 48,661 19,826 --

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

68,487

67,405

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 2019 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%. For employees hired on or after January 1, 2013 and retirees after January 1, 2018, the amount the USG contributes is tied to years of service, which ranges from 0% to 100%. 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 2019, the University System of Georgia contributed $160,383,000 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, 2019 was $129,446,175. 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, 2019:

Asset Class Fixed Income Equity Allocation

Target Allocation 70% 30%

At June 30, 2019, approximately 33.08%, 24.59%, 10.19%, 9.71%, 9.58%, and 5.07% of the Plan's investments were investments in Western Asset Core Bond Portfolio, iShares Core Total U.S. Aggregate Bond ETF, iShares Russell 3000 ETF, Vanguard Institutional Index Fund, Doubleline Total Return Bond Fund, and Eaton Vance Atlanta Capital SMID-Cap Fund, respectively. These investments represents 29.64%, 22.03%, 9.14%, 8.70%, 8.58%, and 4.54%, respectively, of the Plan's fiduciary net position.
For the year ended June 30, 2019, the annual money-weighted rate of return on investments, net of investment expense, was 7.99%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested.

100 University System of Georgia

C. Plan Net OPEB 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, 2019, were as follows:

Total OPEB Liability Plan Fiduciary Net Position Net OPEB Liability

2019 $ 4,616,022,423
(144,454,428) $ 4,471,567,995

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

3.13%

Discount Rate The last year in which projected benefit payments are due from the Plan is 2118.
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, 2019 are summarized in the following table:

Asset Class Fixed Income Equity Allocation

Expected Nominal Rate of
Return
3.61%
7.07%

Long-term Expected Real Rate of Return
1.09%
4.46%

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

The Plan's projected fiduciary net position at the end of 2023 is $0, based on the valuation completed for the fiscal year ending June 30, 2019. 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 2023. 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, 2019, 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 3.50% from the Bond Buyers GO 20-Bond Municipal Bond Index.

2019 Annual Financial Report 101

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, 2019. Benefit payments are assumed to be paid mid-year.
4. Administrative expenses are $0.5 million for 2020 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 (2.50%) or 1% higher (4.50%) than the current discount rate (3.50%):

Net OPEB Liability

1% Decrease

2.50%

$

5,293,080,202 $

Current Rate 3.50% 4,471,567,995 $

1% Increase 4.50% 3,786,696,694

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

$

3,749,646,451 $

Current Rate 4,471,567,995 $

1% Increase 5,376,308,315

Pre-Medicare Eligible Medicare Eligible

5.9% decreasing to 3.5% 6.9% decreasing to 4.5% 7.9% 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.

102 University System of Georgia

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, 2019. Update procedures were used to roll forward the total OPEB liability to June 30, 2019.
Entry Age Normal
Closed amortization period for initial unfunded and subsequent actuarial gains/ losses.
Fair Value
Interest Rate as of 6/30/2019 3.50% from Bond Buyers GO 20-Bond Municipal Bond Index Interest Rate as of 6/30/2018 3.87% from Bond Buyers GO 20-Bond Municipal Bond Index Long-term Rate of Return 4.50% General Inflation 2.50% Salary Increase 4.00%
Healthy: Pub-2010 for Teachers (as appropriate) headcount weighted projected with scale MP-2018
Disabled: Pub-2010 Disabled Mortality for Teachers (as appropriate) headcount weighted projected with scale MP-2018
6.9%
4.5%
4.5%
4.5%
Fiscal Year 2031 for Pre-Medicare Eligible, Fiscal Year 2020 for Medicare Eligible
Economic and demographic assumptions are based on the results of the most recent actuarial experience study over the Plan, which covered a three-year period ending June 30, 2019. All other assumptions are based on the results of the most recent actuarial experience study of the Teachers Retirement System of Georgia, which covered the five year period ending June 30, 2014.

Changes in Assumptions Since Prior Valuation
The financial accounting valuation reflects the following assumption changes:
Expected claims costs were updated to reflect actual claims experience. Trend rate schedule was updated to reflect current estimates of the impact of the Excise Tax, due to the updated claims
assumption. Mortality rates were changed from RP-2014 White Collar Mortality Table with Generational Improvements by Scale MP-2014
to Pub-2010 for Teachers (as appropriate) headcount weighted projected with scale MP-2018. Retirement rates were updated from rates developed for the Teacher's Retirement System to rates based on actual experience. The discount rate was updated from 3.87% as of June 30, 2018 to 3.50% as of June 30, 2019.

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, 2018. The total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of May 1, 2018 with roll-forward procedures performed to update the total liability to June 30, 2018. The USG's net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2018. At June 30, 2018, the USG's net OPEB liability related to the Plan was $4,410,751,099, which was an increase of $191,025,227 from the liability measured as of June 30, 2017.

2019 Annual Financial Report 103

For the year ended June 30, 2019, the USG recognized OPEB expense of $349,663,636. At June 30, 2019, 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
$ 307,571,116

Deferred Inflows of Resources

$

--

Changes of assumptions

-- 495,150,856

Net difference between projected and actual earnings on OPEB plan investments

941,132

--

Contributions subsequent to the measurement date

160,383,000

--

Total

$ 468,895,248 $ 495,150,856

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 ending June 30, 2020. 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 Ending June 30:

2020

$

2021

$

2022

$

2023

$

2024

$

Thereafter

$

(44,107,264) (44,107,264) (44,107,264) (42,256,125)
(6,663,363) (5,397,328)

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

$ 4,486,796,090 (76,044,991)
$ 4,410,751,099
1.69%

104 University System of Georgia

The changes in net OPEB liability at June 30, 2018, 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)

$

236,916,639

158,222,522

264,729,331

(310,106,837)

(90,548,660)

259,212,995 4,227,583,095

$

4,486,796,090

$

158,419,937

801,316

(484,825)

(90,548,660)

68,187,768 7,857,223

$

76,044,991

$

4,410,751,099

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, 2018 are summarized in the following table:

Asset Class Fixed Income Equity Allocation

Target Allocation 70% 30%

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.

2019 Annual Financial Report 105

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 $0.5 million for 2019. 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.

106 University System of Georgia

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

Valuation Date
Cost Method Amortization Method

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.

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 6/30/2018 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
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
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.

2019 Annual Financial Report 107

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, 2019.
B. OPEB Asset, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB under GASB 75
At June 30, 2019, the USG reported an asset of $2,501,455 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, 2018. The total OPEB asset used to calculate the net OPEB asset was based on an actuarial valuation as of June 30, 2017. An expected total OPEB asset as of June 30, 2018 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, 2018. At June 30 2018, the USG's proportion was .924253%, which was an increase of .137683% from its proportion measured as of June 30, 2017.
For the year ended June 30, 2019, the USG recognized OPEB expense of ($387,863). At June 30, 2019, 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

$

27,331 $

--

Changes of assumptions

128,517

--

Net difference between projected and actual earnings on OPEB plan investments

--

413,537

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

Total

$

58,720 214,568 $

316,544 730,081

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

Year Ending June 30:

2020

$

2021

$

2022

$

2023

$

(213,867) (140,764) (126,336)
(34,546)

Actuarial assumptions: The total OPEB asset as of June 30, 2018 was determined by an actuarial valuation as of June 30, 2017 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 7.30%, net of OPEB plan investment expense, including inflation N/A

108 University System of Georgia

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, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2009 - June 30, 2014, with the exception of investment rate of return. Subsequent to the June 30, 2017 measurement date, the SEAD Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the SEAD Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date.
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 7.30%. 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 7.30%, 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 (6.30%) or 1-percentage-point higher (8.30%) than the current rate:

Net OPEB Asset

1% Decrease

6.3%

$

1,347,775 $

Current Rate 7.3% 2,501,455 $

1% Increase 8.3% 3,447,085

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.

2019 Annual Financial Report 109

Note 18 Operating Expenses with Functional Classifications

Business-type activity operating expenses by functional classification for fiscal year 2019 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

Other Personal Services

$ 1,043,345,008 $ 509,246,891 51,229,884 78,286,462 5,781,257 21,932,424 643,273 7,087 2,009,107 99,444,810

308,673,642 $ 304,321,595 143,664,956 268,408,090 182,657,587 334,858,722 198,669,768
140,969 224,156,630 121,339,692

366,714,126 $ 167,592,703
53,725,252 94,011,560 49,528,426 171,515,539 65,656,629
193,815 58,667,325 44,093,038

3,114,740 $ 625,273
1,071,017 725,494 365,301
8,855,436 66,094
757,285 3,029,580
8,481

Travel
21,946,633 34,511,801
7,657,198 6,948,507 4,661,205 6,512,294
847,182 51
3,417,815 478,469

Total Operating Expenses

$ 1,811,926,203 $ 2,086,891,651 $ 1,071,698,413 $ 18,618,701 $ 86,981,155

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

$

9,741,000 $

5,178,867 $ 185,260,589 $ 73,552,777 $ 2,017,527,382

2,275,284

5,062,607

354,735,653

94,544,422

1,472,916,229

585,670

3,280,614

172,706,649

8,709,158

442,630,398

916,223

4,558,491

155,378,633

55,732,178

664,965,638

4,290,225

3,219,754

73,067,139

35,506,802

359,077,696

2,930,813

9,844,175

729,401,478

38,071,977

1,323,922,858

3,321

118,957,339

307,367,482

90,961,323

783,172,411

300,077,877

--

211,364

217

301,388,665

29,603,507

43,799,463

355,069,246

122,083,202

841,835,875

--

139,235

150,692,817

4,214

416,200,756

$ 350,423,920 $ 194,040,545 $ 2,483,891,050 $ 519,166,270 $ 8,623,637,908

Note 19 Subsequent Event
In March 2018, the Board of Regents of the University System of Georgia (BOR), 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 the Institute for office space and for parking via the attached parking structure. 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 2020 are expected to equal $1,887,179. The capital lease liability and capital asset will be recorded on the Institute's books in fiscal year 2020 once construction is complete and the certificate of occupancy is issued.
In April 2019, the Board of Regents of the University System of Georgia (BOR) entered into a rental agreement with Georgia Tech Facilities, Inc., a component unit, for the Campus Center. The Campus Center is a student center complex comprised of a student center, pavilion, exhibition hall, and caf. The existing Fred B. Wenn Student Center will undergo related improvements as part of the Campus Center project. This collection of buildings will be a central

110 University System of Georgia

point of resources, gathering, entertainment and restoration for the Georgia Tech Community. The lease term is for thirty-one years. Total estimated rental payments will be $203,997,229 over the lease period. Semi-annual rental payments will include base rent and a repair and replacement contribution. Rental payments will begin fiscal year 2021 with total rental payments expected to equal $1,613,472 in that year. The capital lease liability and capital asset will be recorded on the Institute's books in fiscal year 2021 once construction is complete and the certificate of occupancy is issued.
In fiscal year 2020, Kennesaw State University Foundation, Inc. transferred title of a multi-purpose building and surrounding land to the University. The property was previously the subject of a capital lease that expired on June 30, 2019.
During a Board of Regents meeting on August 8, 2019 the Board approved transferring approximately 54.6 acres of real property located at 659 Mount Pleasant Road, Rydal to Bartow County. The County and The Etowah Valley Historical Society will assume responsibility for preservation and operation of the Property. KSU would realize a one-time savings of approximately $339,000 related to deferred maintenance and repair it would no longer need to perform. In addition, KSU estimates approximately $58,000 in annual savings associated with routine maintenance, utilities, and staffing requirements that would be eliminated by the transfer.
In fiscal year 2020, the Technical College System of Georgia transferred property consisting of the former Oakwood Campus of Lanier Technical College to the University of North Georgia. The Georgia State Financing and Investment Commission (GSFIC) has also approved renovations to this property in the amount of $13.6 million, which will be included in the gift.
On May 15, 2018, the Board of Regents of the University System of Georgia (BOR) authorized the Eco-Commons Glade (the "Glade") project. The Glade is an eight-acre portion of the Eco-Commons, which encompasses approximately eighty acres of space on campus, and includes a performance landscape and passive greenspace, which will become the centerpiece for non-structured activities enhancing campus life. Consistent with GIT's philosophy of using its campus as a Living Learning Laboratory, the Glade project will include the creation of a stream channel used to educate students about historic water flow and storm water capture for reuse and infiltration. This stream channel moves Georgia Tech's closer to its goal of reducing storm water runoff by fifty percent. A regional cistern will supply water for irrigation, reducing the demand for potable water by at least six million gallons annually. Other targeted ecological performance outcomes of the Glade include a 20% increase in the campus tree canopy, a 26% increase in woodland areas, and a 92% reduction in impervious surfaces. The Glade has a total project budget of $15 million, including $2.5 million of expected donor funds. Construction for this project began in September 2019 and with an expected completion by July 2020.
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, is a legally separate, tax-exempt organization was incorporated under the laws of the State of Georgia as a non-profit corporation on June 1, 2010. The AUHS was established to promote 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.
AU Health System, Inc. was organized to achieve joint coordination and strategic planning among Augusta University (AU), AU Medical Center, Inc. (AUMC), AU Medical Associates, Inc. (AUMA), and other affiliated entities, including the
2019 Annual Financial Report 111

educational activities of Augusta University and the Medical College of Georgia (MCG), one of nine colleges within Augusta University. On the main campus in Augusta, Georgia, the Augusta University Health Sciences Campus, AUHS manages AUMC's 478-licensed bed tertiary and quaternary academic medical center, the 154-licensed bed Children's Hospital of Georgia, the clinical arm of the Georgia Cancer Center, and certain outpatient sites (collectively, the Medical Center). The Medical Center serves as the academic teaching and research center for MCG and other Augusta University health professional schools, notably the School of Nursing and the School of Allied Health Professionals.
Augusta University Foundation, Inc. Augusta University Foundation, Inc. (AUF) is a private nonprofit corporation organized for the purpose of establishing and administering an endowment fund for the benefit of Augusta University (the "University"), a unit of the University System of Georgia, and to the University's students, faculty, and staff. Substantially all donations are received from alumni and contributors in the Augusta, Georgia area. The AUF acts primarily as a fund-raising organization to supplement the resources that are available to the University in support of its programs. During the year ended June 30, 2019, the AUF distributed approximately $919,165 to the University in support of capital outlay projects, scholarships, and other supporting activities.
The consolidated financial statements of AUF have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. The Foundation is the single member of the following three limited liability companies: 1) ASU Jaguar Student Housing I, LLC, which is a limited liability company organized for the purpose of constructing and holding an apartment complex for the benefit of students attending Augusta University; 2) ASU Jaguar Student Center, LLC, which is a limited liability company organized for the purpose of constructing and holding the student center property located on the campus of the University for the benefit of its students; 3) ASU Student Life, LLC, which is a limited liability company organized for the purpose of constructing a student life center. ASU Student Life, LLC was dissolved during the year ended June 30, 2019.
AUF reports under FASB standards. As such, certain revenue recognition criteria and presentation features are different from GASB revenue recognition criteria and presentation features. For external financial reporting purposes in these financial statements, the FASB reports were reclassified to the GASB presentation.
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. 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, 2019, AURI distributed approximately $59,743,984 to Augusta University for research contracts.
Georgia Advanced Technology Ventures, Inc. Georgia Advanced Technology Ventures (GATV) is a legally separate, not-for-profit corporation under the laws of the state of Georgia and a supporting organization of the Georgia Institute of Technology (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.
For the year ended June 30, 2019, GATV distributed $538,284 to the Institute for supporting activities. Georgia Tech is obligated under various operating lease agreements with GATV, a related party, in the amount of $64,595,668.
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 the Georgia College & State University in support of its programs. During the year ended June 30, 2019, the GC&SUF distributed approximately $1,128,909 to Georgia College & State University in support of capital outlay projects, scholarships and other supporting activities.
112 University System of Georgia

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 USG. GGCF's primary objective is to receive, invest, account for, and allocate private gifts and contributions in support of the Georgia Gwinnett College. Support and revenue is generated primarily through individual and corporate pledge and contributions.
GGCF 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.
Georgia Health Sciences Foundation, Inc. Georgia Health Sciences Foundation, Inc. (GHSF) was established to contribute to the long-term enhancement of Augusta University ("AU") and to provide assistance to AU and Augusta University Medical Center, Inc. ("AUMC") in their development and fundraising activities. The Foundation is supported primarily through contributions from individuals, corporations, and other nonprofit foundations. The primary purpose of the fundraising efforts of the Foundation are to support scholarships at AU, and capital projects and other non-recurring projects at AU and AUMC. The Foundation also receives and manages an endowment for the benefit of AU and AUMC. During the year ended June 30, 2019, the GHSF distributed approximately $3,506,734 to Augusta University in support of capital outlay projects, scholarships, and other supporting activities.
Georgia Health Sciences Foundation, Inc. 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.
Georgia Southern University Housing Foundation, Inc. The Georgia Southern University Housing Foundation, Inc. and Subsidiaries (GSUHF) is a legally separate, tax-exempt affiliated organization which supports Georgia Southern University (GS). GSUHF acts primarily as an organization whose purpose is to acquire, construct or improve student housing and other student facilities that are available to GS in support of its programs.
The 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.
Georgia State University Athletic Association, 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, 2019, the GSUAA distributed approximately $26,182,099 to 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.
The GSUAA 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.
Georgia State University Foundation, Inc. Georgia State University Foundation, Inc. and Subsidiaries (GSUF) acts primarily as a fund-raising organization to supplement the resources that are available to Georgia State University in support of its programs. During the year ended June 30, 2019, GSUF distributed approximately $33,523,393 to Georgia State University in support of capital outlay projects, scholarships and other supporting activities.
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.
2019 Annual Financial Report 113

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. During the year ended June 30, 2019, GSURF distributed approximately $87,797,178 to GSU for research contracts.
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, as well as fundraising to support scholarships. 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, 2019, the GTAA distributed $48 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 from contributions or financing with debt service funded by support from various sources. During the year ended June 30, 2019, GTFI distributed approximately $1.4 million to the Georgia Institute of Technology for supporting activities. The Georgia Institute of Technology is obligated under various capital lease agreements with the GTFI, a related party, in the amount of $212,354,248.
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.
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. For the year ended June 30, 2019, the GTF distributed $87.7 million to GT in support of capital outlay projects, scholarships and other supporting activities. The GT is obligated under various capital lease agreements with the GTF, a related party, in the amount of $110,230,280.
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.
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 for research or services to be performed by or in conjunction with the Georgia Institute of Technology (GT). During the year ended June 30, 2019, the GTRC distributed $832.2 million to GT for research contracts. The GTRC reports under GASB standards.
114 University System of Georgia

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.
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, 2019, KSUF distributed approximately $7,571,934 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) 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. MCGF provides support for faculty chairs, research, scholarships, and other institutional programs. During the year ended June 30, 2019, MCGF paid approximately $5,467,534 to Augusta University and its affiliates in support of students and university programs. MCGF paid approximately $306,445 to non-affiliated organizations on behalf of Augusta University.
MCGF is a nonprofit corporation incorporated under the laws of the State of Georgia in 1954. MCGF presents its financial statements in accordance with Financial Accounting Standards Board (FASB) ASC, Financial Statements of 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.
Middle Georgia State University Real Estate Foundation, Inc. The Middle Georgia State University Real Estate Foundation (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 (MGA). 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 MGA.
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.
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, 2019, 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 $54.7 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). During the year ended June 30, 2019, UGAF distributed $53.8 million to UGA for both restricted and unrestricted purposes.
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.
2019 Annual Financial Report 115

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. 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. During the year ended June 30, 2019, the UGARF distributed $178.2 million to UGA for research contracts, $3.3 million to UGA for restricted license and royalties, and $5.9 million to UGA for both restricted and unrestricted support.
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 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.
UNGREF 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.
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, the majority of resources or income thereon that the UWGREF holds and invests is restricted to real estate activities of UWG. During the year ended June 30, 2019, the UWGREF distributed approximately $338,284 to UWG in support of capital outlay projects, scholarships and other supporting activities.
UWGREF 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.
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 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, and to facilitate financing of capital improvement projects at USG institutions.
USGF 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.
116 University System of Georgia

VSU Auxiliary Services Real Estate Foundation, Inc. The VSU Auxiliary Services Real Estate Foundation, Inc. (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.
The VSUREF 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 VSUREF's fiscal year is January 1 through December 31.
Elimination and Consolidation Entries As part of the consolidation process, the USG makes certain adjustments to component unit balances to present the information in a comparable and consistent manner, eliminate duplicated transactions, eliminate intra-component unit assets and liabilities, and correct departures from GAAP. These adjustments are summarized below:
GTF uses different capital lease implicit interest rates than GT. An adjustment was made to report these leases consistently between component units and the USG. This adjustment deceased investments in capital leases ($16.4 million), decreased beginning net position ($19.0 million), and increased revenues ($2.6 million).
AUF grosses up investments in capital leases for interest to be received in future periods. All other component units report investments in capital leases net of interest to be received in future periods. An adjustment was made to net AUF's interest to be received in future periods with investments in capital leases. This adjustment deceased investments in capital leases ($7.6 million) and advances ($7.6 million).
GSUAA reports pledge receivables that are also reported by GSUF. An adjustment was made to eliminate these duplicative transactions. This adjustment deceased pledges receivable ($8.8 million), beginning net position ($12.9 million), revenues ($1.0 million), and expenses ($5.1 million).
Some component units hold investments on behalf of other component units. An adjustment was made to eliminate duplicative investment balances. This adjustment deceased assets ($175.8 million) and liabilities ($175.8 million).
An adjustment was made to eliminate intra-component units receivables and payables in the amount of $8.4 million.
Other reclassifications were made to move $2.2 million from due from component units to capital assets to account for construction work-in progress related to GT's Cobb Research Campus and to move $37.7 million from accounts payable to interest payable for consistent reporting with the State's CAFR.
2019 Annual Financial Report 117

Selected Financial Disclosures Combined component unit's endowments are comprised of the following amounts at June 30, 2019:

Beginning Balance Originally Reported Adjustment to Beginning Balance due to new FASB reporting Beginning Balance, Restated
Contributions Net realized and unrealized gains Appropriation of endowment assets for expenditure Transfers to comply with donor intent Other Ending

Without Donor Restriction

With Donor Restriction

Total

$ 423,907,607 $ 2,663,266,368 $ 3,087,173,975

(153,601,583)

31,943,569

(121,658,014)

270,306,024

2,695,209,937

2,965,515,961

9,986,538

111,840,029

121,826,567

11,864,107

144,053,517

155,917,624

(7,740,726)

(103,710,361)

(111,451,087)

(800,000)

(243,552)

(1,043,552)

4,953,578

1,296,460

6,250,038

$ 288,569,521 $ 2,848,446,030 $ 3,137,015,551

The ending balance is reported on the Statement of Net Position as follows: Net Position
Restricted for: Nonexpendable Expendable
Unrestricted Total Net Position

$

-- $ 2,341,143,849 $ 2,341,143,849

--

507,302,181

507,302,181

288,569,521

--

288,569,521

$ 288,569,521 $ 2,848,446,030 $ 3,137,015,551

118 University System of Georgia

Combined component unit's investments are comprised of the following amounts at June 30, 2019:

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

Hedge Fund Limited Partnerships

Natural Resources, including Timber/Oil/Gas

Private Equity Limited Partnerships

Real Estate Held for Investment Purposes

Real Estate Investment Trusts

Other

Fair Value
191,526,505 $
668,124 14,226,788 192,424,280 118,602,169 161,584,047
2,905,599 81,013,139
1,000,000 59,031,061
112,777,718 328,236,668 783,823,848 412,517,241 714,831,562 133,973,752 442,320,165
81,370,931 79,696,541 192,711,541

Level 1
162,590,692 $
-- 4,224,368 141,100,603 13,663,815 159,958,499
-- 34,807,450
1,000,000 3,005,781
112,062,619 288,542,780 610,000,074 364,198,241
--
-- -- 44,424,707 90,582,639

Fair Value Hierarchy

Level 2

Level 3

28,935,813 $
668,124 10,002,420 21,998,677 104,938,354
1,625,548 2,905,599 46,205,689
-- 56,025,280
715,099 7,336,568
-- -- --
-- -- -- 8,244,713

--$
-- -- -- -- -- -- -- -- --
-- -- 173,455,774 -- -- 15,467,070 145,905 81,370,931 -- 3,961,932

NAV
--
-- -- 29,325,000 -- -- -- -- -- --
-- 32,357,320
368,000 48,319,000 714,831,562 118,506,682 442,174,260
-- 35,271,834 89,922,257

Investment Pools Board of Regents (Held by USG) 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

4,105,241,679 $

2,030,162,268 $

289,601,884 $

274,401,612 $

1,511,075,915

93,162,391 582,875
11,543,393 409,381
1,495,968 21,695,076

279,252

$

4,234,410,015

Component unit investments of $128,861,815 are reported as cash and cash equivalents on the Statement of Net Position.

2019 Annual Financial Report 119

Combined component unit's capital assets are comprised of the following amounts at June 30, 2019:

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

$

201,584,128

3,117,193

90,292,922

5,788,163

300,782,406

4,224,899 968,305,128 246,303,221 332,185,843
66,936,210 32,017,995 1,649,973,296

712,277,931

937,695,365

$

1,238,477,771

Combined amounts due to component units related to direct financing lease activity as of June 30, 2019 is as follows:

Year Ending June 30: 2020 2021 2022 2023 2024 Thereafter Total minimum lease payments to be received Unearned Income
Net Investment in Direct Financing Lease

Total

Due from USG Institutions

Due from Other Parties

$

202,638,621 $

200,808,177 $

204,348,851

202,873,238

205,525,873

203,404,649

204,279,731

202,162,557

203,879,659

201,766,922

2,901,984,521

2,638,171,444

3,922,657,256

3,649,186,987

(1,538,011,499)

(1,284,058,597)

$

2,384,645,757 $

2,365,128,390 $

1,830,444 1,475,613 2,121,224 2,117,174 2,112,737 263,813,077 273,470,269 (253,952,902) 19,517,367

120 University System of Georgia

Combined component unit's long-term liabilities are comprised of the following amounts at June 30, 2019:

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

$ 2,045,616 $ 19,801,373 82,926,743 28,055,115
268,553,869 (1,693,974) 30,176,076
6,165,679 561,929
3,118,652,529 181,439,519 (58,439,776)

--$ 6,793,255 13,086,951 2,091,033 134,757,234
-- 8,285,702
1,450,057 --
270,150,000 33,591,388 (1,475,078)

464,992 $ 5,253,562 12,463,804 1,226,111 126,306,820
243,816 968,407

1,580,624 $ 21,341,066 83,549,890 28,920,037 277,004,283 (1,937,790) 37,493,371

857,113 561,929 236,786,135 21,714,300 (9,251,835)

6,758,623 --
3,152,016,394 193,316,607 (50,663,019)

1,000,000 21,341,066
8,983,816 2,396,557 96,692,251
-- --
-- -- 130,329,368 -- --

Total Long Term Liabilities

$ 3,678,244,698 $ 468,730,542 $ 397,595,154 $ 3,749,380,086 $ 260,743,058

Combined component unit's capital lease obligations are comprised of the following amounts at June 30, 2019:

Year ending June 30: 2020 2021 2022 2023 2024 2025 through 2029 2030 through 2034 2035 through 2039
Total minimum lease payments Less: Interest
Principal Outstanding

$

13,326,269

11,986,587

11,227,337

10,034,268

8,469,139

30,055,997

25,455,346

2,068,954

112,623,897

29,074,007

$

83,549,890

Combined component unit's notes and loans are comprised of the following amounts at June 30, 2019:

Year ending June 30: 2020 2021 2022 2023 2024 2025 through 2029 2030 through 2034 2035 through 2039 2040 through 2044
Note Discount/Cost of Issuance Total

Principal

$

96,692,251 $

5,975,104

31,447,780

6,300,633

55,753,508

46,148,117

19,749,178

14,892,712

45,000

277,004,283

(1,937,790)

$

275,066,493 $

Interest
6,514,761 $ 6,161,651 5,489,886 5,101,191 4,093,230 10,660,134 2,590,821 1,332,187
518 41,944,379
-- 41,944,379 $

Total
103,207,012 12,136,755 36,937,666 11,401,824 59,846,738 56,808,251 22,339,999 16,224,899 45,518
318,948,662 (1,937,790)
317,010,872

2019 Annual Financial Report 121

Combined component unit's bonds payable are comprised of the following amounts at June 30, 2019:

Year ending June 30: 2020 2021 2022 2023 2024 2025 through 2029 2030 through 2034 2035 through 2039 2040 through 2044 2045 through 2049 2050 through 2054
Bond Premium Bond Discount/Cost of Issuance Total

Principal

$

130,329,368 $

109,783,299

117,008,558

149,466,152

127,524,017

740,475,000

783,020,000

658,965,000

248,210,000

70,740,000

16,495,000

3,152,016,394

193,316,607

(50,663,019)

$

3,294,669,982 $

Interest
140,765,414 $ 135,722,247 130,707,921 124,541,343 118,042,802 493,457,518 315,487,647 155,096,052
41,721,433 12,750,701
1,409,850 1,669,702,928
-- -- 1,669,702,928 $

Total
271,094,782 245,505,546 247,716,479 274,007,495 245,566,819 1,233,932,518 1,098,507,647 814,061,052 289,931,433
83,490,701 17,904,850 4,821,719,322 193,316,607 (50,663,019) 4,964,372,910

122 University System of Georgia

REQUIRED SUPPLEMENTARY INFORMATION

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

Early Retirement Plan

Year Ended 6/30/2019 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

Actuarially Determined Contribution
(a)
$ 11,521,141 $ 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

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

Contribution Deficiency (Excess)
(a-b)

$ (1,563,531)

$ (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

6/30/2019 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

$ 3,537,809 $ 3,537,809 $

$ 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 $

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

13,094,926 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

27.02% 25.08% 25.85% 26.00% 22.72% 18.77% 14.90% 11.64% 10.41% 10.41%

Teachers Retirement System

6/30/2019 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

$ 391,455,859 $ 391,455,859 $ $ 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 $

-- $ 1,866,677,068 -- $ 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

20.97% 16.83% 14.27% 14.29% 13.21% 12.28% 11.41% 10.28% 10.28% 9.74%

124 University System of Georgia

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 FIVE FISCAL YEARS*

Employees' Retirement System

Year Ended 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015

Teachers Retirement System

6/30/2019 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

0.50% $

20,647,007 $

0.47% $

18,912,176 $

0.44% $

20,881,541 $

0.40% $

16,237,112 $

0.39% $

14,722,566 $

Covered Payroll
12,768,728 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

161.70%

76.68%

164.96%

76.33%

203.01%

72.34%

176.11 %

76.20%

169.40%

77.99%

15.23% $ 15.05% $ 14.87% $ 14.74% $ 14.52% $

2,827,258,134 $ 1,806,029,773 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

156.55% 162.18% 188.59% 145.45% 124.23%

80.27% 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.

2019 Annual Financial Report 125

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 SIX FISCAL YEARS*

Total Pension Liability Plan Fiduciary Net Position

2019

2018

2017

2016

2015

2014

$ 146,605,709 $ 148,863,688 $ 149,152,995 $ 151,817,059 $ 143,780,226 $ 145,384,819 (105,375,867) (99,022,119) (90,408,065) (80,322,348) (79,125,737) (76,193,610)

Net Pension Liability

$ 41,229,842 $ 49,841,569 $ 58,744,930 $ 71,494,711 $ 64,654,489 $ 69,191,209

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

71.88%

66.52%

60.61%

52.91%

55.03%

52.41%

Covered Payroll

--%

--%

--%

--%

--%

--%

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

N/A

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.

126 University System of Georgia

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 SIX FISCAL YEARS*

2019

2018

2017

2016

2015

2014

Total Pension Liability

Interest

$ 10,636,036 $ 10,669,543 $ 10,875,630 $ 10,278,138 $ 10,405,981 $ 10,607,438

Differences Between Expected and Actual Experience

1,581,985

664,493

77,619

1,349,554

1,266,248

(127,876)

Changes of Assumptions

(376,246)

2,161,493

--

9,885,919

--

--

Benefit Payments/Refunds

(14,099,754) (13,784,836) (13,617,313) (13,476,778) (13,276,822) (13,054,512)

Net Change in Total Pension Liability

(2,257,979)

(289,307) (2,664,064)

8,036,833 (1,604,593) (2,574,950)

Total Pension Liability - Beginning

148,863,688 149,152,995 151,817,059 143,780,226 145,384,819 147,959,769

Total Pension Liability - Ending (a) $ 146,605,709 $148,863,688 $149,152,995 $ 151,817,059 $143,780,226 $ 145,384,819

Plan Fiduciary Net Position Contributions - Employer Net Investment Income Benefit Payments/Refunds

$ 13,084,672 $ 13,084,672 $ 13,084,672 $ 13,084,672 $ 13,084,672 $ 13,084,672

7,368,830

9,314,218 10,618,358

1,588,717

3,124,277

11,727,751

(14,099,754) (13,784,836) (13,617,313) (13,476,778) (13,276,822) (13,054,512)

Net Change in Plan Fiduciary Net Position
Plan Fiduciary Net Position Beginning

6,353,748 99,022,119

8,614,054 90,408,065

10,085,717 80,322,348

1,196,611 79,125,737

2,932,127 76,193,610

11,757,911 64,435,699

Plan Fiduciary Net Position Ending (b)

$ 105,375,867 $ 99,022,119 $ 90,408,065 $ 80,322,348 $ 79,125,737 $ 76,193,610

Net Pension Liability Ending (a - b) $ 41,229,842 $ 49,841,569 $ 58,744,930 $ 71,494,711 $ 64,654,489 $ 69,191,209

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

2019 Annual Financial Report 127

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 SIX FISCAL YEARS*

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

2019 7.53%

2018 10.42%

2017 13.39%

2016 2.02%

2015 4.13%

2014 18.35%

* 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 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION DEFINED BENEFIT PENSION PLANS METHODS AND ASSUMPTIONS FOR FISCAL YEAR ENDED JUNE 30, 2019
Changes of assumptions Early Retirement Plan: The expectation of retired life mortality was changed effective June 30, 2019 to the MP-2018 Mortality Improvement Scale rather than the MP-2017 to better recognize current and future mortality improvements. Employees' Retirement System: Changes of assumptions: 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. On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 Measurement Date. Teachers Retirement System: Changes of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP-2000 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 RP-2000 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). Changes of benefit terms Employees' Retirement System: A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2017.
2019 Annual Financial Report 129

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)

6/30/2019

$

484,599 $

160,383 $

324,216 $

3,375,246

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

Contributions as a Percentage of
Covered Employee Payroll (b/c)
4.75%
4.92%
3.19%
3.62%
4.98%
4.66%
3.38%
3.52%
3.30%
2.91%

Notes to Schedule

Valuation Date

May 1, 2019. Update procedures were used to roll forward the total OPEB liability to June 30, 2019.

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: Pub-2010 for Teachers (as appropriate) headcount weighted projected with scale MP-2018

Disabled: Pub-2010 Disabled Mortality for Teachers (as appropriate) headcount weighted projected with scale MP-2018

Healthcare Cost Trend

Pre-Medicare Eligible: 6.9% to 4.5% reached 2031; Medicare Eligible: 4.5% reached 2020

Experience Study

Economic and demographic assumptions are based on the results of the most recent actuarial experience study over the Plan, which covered a three-year period ending June 30, 2019. All other assumptions are based on the results of the most recent actuarial experience study of the Teachers Retirement System of Georgia, which covered the five year period ending June 30, 2014.

Changes in Assumptions Since Prior Valuation:

- Expected claims costs were updated to reflect actual claims experience. - Trend rate schedule was updated to reflect current estimates of the impact of the Excise Tax, due to the updated claims assumption. - Mortality rates were changed from RP-2014 White Collar Mortality Table with Generational Improvements by Scale MP-2014 to Pub-2010
for Teachers (as appropriate) headcount weighted projected with scale MP-2018. - Retirement rates were updated from rates developed for the Teacher's Retirement System to rates based on actual experience. - The discount rate was updated from 3.87% as of June 30, 2018 to 3.50% as of June 30, 2019.

State Employees' Assurance Department Retired and Vested Inactive Members Plan

Year Ended 6/30/2019 6/30/2018

Contractually Required
Contribution (a)

Contributions in Relation to the Contractually
Required Contribution
(b)

Contribution Deficiency (Excess)
(a-b)

Covered Payroll (c)

$

--$

--$

--$

13,095

$

--$

--$

--$

12,769

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

Actuarial Cost Method: Entry Age; Amortization Method: Projected Unit Credit; Remaining Amortization Period: Dollar Infinite; Asset Valuation Method: Market Value of Assets; Inflation: 2.75%; Salary Increases: 3.25%-7.00% ERS, 4.50% GJRS; Investment Rate of Return: 7.50%, Including Inflation; Cost of Living Adjustment: N/A.

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

130 University System of Georgia

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 THE LAST TWO FISCAL YEARS*

State Employees' Assurance Department Retired and Vested Inactive Members Plan

Year Ended 6/30/2019 6/30/2018

Proportion of the Net OPEB Asset

Proportionate Share of
the Net OPEB Asset

0.924253% $

2,501,455 $

0.786570% $

2,044,332 $

Covered Payroll
12,768,728
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

19.59%

129.46%

17.85%

130.17%

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

2019 Annual Financial Report 131

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 THREE FISCAL YEARS*

Total OPEB Liability Service Cost Interest Changes in Benefit Terms 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)

2019

2018

2017

$

217,647,848 $

236,916,639 $

211,512,614

180,172,887

158,222,522

124,612,066

(11,210,551)

(29,667,255) (129,153,450)
(98,563,146)

264,729,331 (310,106,837)
(90,548,660)

123,090,290 (347,330,873)
(89,653,306)

129,226,333 4,486,796,090

259,212,995 4,227,583,095

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

$

4,616,022,423 $

4,486,796,090 $

4,227,583,095

$

160,383,000 $

7,126,020

(536,437)

(98,563,146)

158,419,937 $ 801,316 (484,825)
(90,548,660)

99,583,903 72,961
(5,044,837) (89,653,306)

68,409,437 76,044,991

68,187,768 7,857,223

4,958,721 2,898,502

$

144,454,428 $

76,044,991 $

7,857,223

$

4,471,567,995 $

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.

132 University System of Georgia

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 THREE 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

2019

2018

2017

$ 4,616,022,423 $ 4,486,796,090 $ 4,227,583,095

144,454,428

76,044,991

7,857,223

$ 4,471,567,995 $ 4,410,751,099 $ 4,219,725,872

3.13%

1.69%

0.19%

$ 3,375,246,297 $ 3,218,771,744 $ 3,122,694,102

132.48%

137.03%

135.13%

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

2019 Annual Financial Report 133

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 THREE FISCAL YEARS*

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

2019 7.99%

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.

134 University System of Georgia

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, 2019 Board of Regents Retiree Health Benefit Plan Changes in Assumptions Since Prior Valuation Expected claims costs were updated to reflect actual claims experience. Trend rate schedule was updated to reflect current estimates of the impact of the Excise Tax, due to the updated
claims assumption. Mortality rates were changed from RP-2014 White Collar Mortality Table with Generational Improvements by Scale
MP-2014 to Pub-2010 for Teachers (as appropriate) headcount weighted projected with scale MP-2018. Retirement rates were updated from rates developed for the Teacher's Retirement System to rates based on actual
experience. The discount rate was updated from 3.87% as of June 30, 2018 to 3.50% as of June 30, 2019. State Employees' Assurance Department Retired and Vested Inactive Members Plan Changes in Assumptions Since Prior Valuation Subsequent to the June 30, 2017 measurement date, the SEAD Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the SEAD Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. Therefore, an assumption change from 7.5% to 7.3% is reflected in the calculation of the total pension asset.
2019 Annual Financial Report 135

SUPPLEMENTARY INFORMATION

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2019

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

Affiliated Organizations

Component Units

Other

Notes Receivable, net

Inventories

Prepaid Items

Other Assets

Total Current Assets

Non-Current Assets Accounts Receivable, net Affiliated Organizations Component Units Due From USO - Capital Liability Reserve Fund Investments Notes Receivable, net 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

$

12,974,752 $
391,881 1,119,066
-- -- 267,117 33,470 -- 1,921,722 -- 344,015 13,166 -- 17,065,189

7,494,244 $
3,634,256 -- --
1,807,822 -- --
2,642,145 -- --
169,390 --
15,747,857

-- --
-- -- 111,327 1,588 -- 2,003,994 59,164,422 61,281,331 78,346,520
9,701,586 $

-- --
801,382 --
58,514 -- -- --
210,482,749 211,342,645 227,090,502
15,628,572 $

829,509 $
228,776 -- --
2,132,404 -- --
540,896 -- --
154,634 --
3,886,219

10,283,065
18,013,897 -- --
8,618,200 555,024
71,447,158 20,593,566
-- 775,475 6,256,256
-- 136,542,641

-- --
69,628 -- -- -- -- --
42,084,624 42,154,252 46,040,471
5,049,617 $

-- --
197,730 71,902,696
2,042,024 -- --
13,304,230 682,949,901 770,396,581 906,939,222
135,543,575

138 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2019

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 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 Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities

Abraham Baldwin Agricultural College

Albany State University

Atlanta Metropolitan State College

Augusta University

$

1,010,990 $

1,308,683 $

1,042,612 $

26,019,078

216,230

338,226

103,849

3,046,835

91,116

127,348

22,418

3,546,003

--

83,608

137,582

1,083,921

--

56,294

--

370,668

--

--

--

--

--

--

--

724,721

--

--

--

5,764,776

--

--

--

--

845,864

5,231,015

752,430

30,469,087

145,950

307,519

4,937

--

655,648

1,460,127

420,842

1,448,306

--

--

--

--

--

--

--

--

19,513

3,094,538

210,509

2,831,321

--

--

--

2,419,236

--

--

--

--

--

2,016,276

362,355

--

772,649

1,572,646

494,802

22,675,055

3,757,960

15,596,280

3,552,336

100,399,007

Non-Current Liabilities Advances (Including Tuition and Fees) Notes and Loans Payable Lease Purchase Obligations - External Lease Purchase Obligations - Component Units Claims and Judgments Compensated Absences Net Other Post Employment Benefits Liability Net Pension Liability
Total Non-Current Liabilities TOTAL LIABILITIES

-- -- 5,987 -- -- 576,104 43,650,380 24,358,126 68,590,597 72,348,557

-- -- 96,556,173 -- 2,842,170 854,483 64,604,668 41,783,205 206,640,699 222,236,979

-- -- 9,265,733 -- 642,895 225,752 17,588,752 13,598,625 41,321,757 44,874,093

-- -- 1,773,196 44,075,789 -- 17,128,587 520,940,139 364,346,083 948,263,794 1,048,662,801

DEFERRED INFLOWS OF RESOURCES

$

9,384,959 $

28,734,401 $

4,600,974 $

80,632,368

2019 Annual Financial Report 139

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2019

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

$

59,138,922 $

107,978,535 $

32,470,800 $

632,135,277

1,926,766 829,263 -- -- --
(55,580,361)

-- 125,143
-- -- -- (116,355,984)

-- 62,528
-- -- -- (30,918,307)

2,630,187 28,467,274
-- -- -- (750,045,110)

$

6,314,590 $

(8,252,306) $

1,615,021 $

(86,812,372)

140 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2019

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

Affiliated Organizations

Component Units

Other

Notes Receivable, net

Inventories

Prepaid Items

Other Assets

Total Current Assets

Non-Current Assets Accounts Receivable, net Affiliated Organizations Component Units Due From USO - Capital Liability Reserve Fund Investments Notes Receivable, net 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

$

9,434,485 $
296,632 -- --
2,093,841 282,072 --
3,851,816 --
966 54,872
-- 16,014,684
1,655,106 --
578,205 --
6,188 -- -- --
122,599,649 124,839,148 140,853,832
13,051,338 $

4,864,489 $
7,822 -- --
582,736 253,021
-- 1,600,278
-- 28,743 119,231
-- 7,456,320

21,585,644 $
620,167 -- --
694,018 532,922
-- 6,486,236
-- -- 406,212 -- 30,325,199

-- --
77,550 -- -- -- --
158,096 65,205,415 65,441,061 72,897,381
6,219,752 $

-- --
259,144 2,225,004
685,214 -- --
3,277,155 117,129,381 123,575,898 153,901,097
19,248,386 $

9,371,823
113,464 -- --
1,592,834 75,028 --
1,099,740 --
12,471 108,169
-- 12,373,529
-- --
46,314 -- -- -- -- --
55,169,914 55,216,228 67,589,757
7,365,775

2019 Annual Financial Report 141

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2019

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 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 Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities

Clayton State University

College of Coastal Georgia

Columbus State University

Dalton State College

$

1,947,994 $

867,587 $

3,059,261 $

1,470,823

275,808

190,008

410,375

141,281

141,557

61,246

197,031

152,273

89,300

--

358,406

--

--

155,332

51,008

21,179

--

--

--

--

--

49

--

--

--

--

--

--

--

--

--

--

2,147,688

860,314

5,072,366

650,387

110,565

14,782

150

27,647

173,430

308,524

2,746,722

184,435

10,392

--

14,370

--

--

--

--

--

--

286,046

198,316

--

2,155,409

--

1,549,962

141,919

--

--

--

--

--

--

--

--

1,610,801

484,775

1,850,950

588,195

8,662,944

3,228,663

15,508,917

3,378,139

Non-Current Liabilities Advances (Including Tuition and Fees) Notes and Loans Payable Lease Purchase Obligations - External Lease Purchase Obligations - Component Units Claims and Judgments Compensated Absences Net Other Post Employment Benefits Liability Net Pension Liability
Total Non-Current Liabilities TOTAL LIABILITIES

-- -- -- 63,621,407 -- 533,025 54,191,106 31,178,526 149,524,064 158,187,008

-- -- 10,742,447 -- -- 256,455 22,305,918 12,031,905 45,336,725 48,565,388

-- -- 204,517 36,841,784 -- 1,132,962 73,345,057 44,870,520 156,394,840 171,903,757

-- -- -- 5,694,513 -- 225,729 33,216,970 16,804,350 55,941,562 59,319,701

DEFERRED INFLOWS OF RESOURCES

$

18,678,202 $

3,046,141 $

13,629,171 $

5,988,163

142 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2019

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

$

47,397,517 $

54,021,590 $

75,675,118 $

48,766,618

1,650,680 8,837 -- -- --
(72,017,074)

68,879 97,039
-- -- -- (26,681,904)

2,175,517 4,069,428
-- -- -- (94,303,508)

-- 30,904
-- -- -- (39,149,854)

$

(22,960,040) $

27,505,604 $

(12,383,445) $

9,647,668

2019 Annual Financial Report 143

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2019

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

Affiliated Organizations

Component Units

Other

Notes Receivable, net

Inventories

Prepaid Items

Other Assets

Total Current Assets

Non-Current Assets Accounts Receivable, net Affiliated Organizations Component Units Due From USO - Capital Liability Reserve Fund Investments Notes Receivable, net 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

$

3,001,207 $
80,009 -- --
1,469,930 8,949 --
1,522,717 --
14,187 6,054 --
6,103,053

6,615,869 $
2,058,646 -- --
3,883,520 760,860 --
2,231,846 -- --
153,508 --
15,704,249

22,616,765 $
764,783 -- --
394,768 9,113
896,193 4,128,861
-- 283,097 867,733
-- 29,961,313

41,067,807
558,792 -- --
131,885 --
123,920 671,344
-- -- 806,997 -- 43,360,745

-- --
-- -- -- -- -- 47,750 26,895,718 26,943,468 33,046,521
4,982,295 $

-- --
650,273 76,119
909,981 -- -- --
140,381,059 142,017,432 157,721,681
14,458,930 $

-- 1,638,638
1,081,968 3,361,521
2,300 129,685
-- 5,059,015 179,928,578 191,201,705 221,163,018
23,834,921 $

-- --
1,044,941 -- -- -- -- --
240,490,300 241,535,241 284,895,986
45,638,112

144 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2019

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 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 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

$

347,501 $

2,435,084 $

3,935,469 $

2,651,634

140,449

167,269

415,865

558,359

52,741

73,260

217,242

735,969

286,048

352,724

1,273,106

80,077

126,456

171,114

133,609

67,177

--

--

--

--

--

--

--

--

--

--

--

--

--

321,895

--

--

422,846

1,415,962

2,427,155

2,228,807

200

399

325,775

86,456

34,082

198,547

576,261

345,265

--

299,789

744,442

80,237

--

--

--

--

1,173

--

826,255

1,209,762

--

2,212,175

2,775,116

5,030,738

--

--

--

--

--

--

--

--

365,003

1,503,042

2,375,681

1,430,469

1,776,499

9,151,260

16,025,976

14,504,950

Non-Current Liabilities Advances (Including Tuition and Fees) Notes and Loans Payable Lease Purchase Obligations - External Lease Purchase Obligations - Component Units Claims and Judgments Compensated Absences Net Other Post Employment Benefits Liability Net Pension Liability
Total Non-Current Liabilities TOTAL LIABILITIES

-- -- -- -- -- 209,658 18,477,430 10,952,592 29,639,680 31,416,179

-- -- -- 72,582,310 -- 755,214 45,079,332 30,919,888 149,336,744 158,488,004

-- -- 32,698,969 79,555,537 -- 657,703 86,791,055 53,553,707 253,256,971 269,282,947

-- -- 3,320,909 156,335,071 -- 608,945 65,309,815 45,575,123 271,149,863 285,654,813

DEFERRED INFLOWS OF RESOURCES

$

2,773,399 $

12,264,060 $

15,428,962 $

10,483,433

2019 Annual Financial Report 145

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2019

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

$

26,500,526 $

61,976,126 $

63,902,975 $

93,540,347

37,100 34,841
-- -- -- (22,733,229)

-- 2,845,753
-- -- -- (63,393,332)

4,300,845 1,968,602
-- -- -- (109,886,392)

-- 558,792
-- -- -- (59,703,287)

$

3,839,238 $

1,428,547 $

(39,713,970) $

34,395,852

146 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2019

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

Affiliated Organizations

Component Units

Other

Notes Receivable, net

Inventories

Prepaid Items

Other Assets

Total Current Assets

Non-Current Assets Accounts Receivable, net Affiliated Organizations Component Units Due From USO - Capital Liability Reserve Fund Investments Notes Receivable, net 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

$

6,420,537 $
-- -- --
437,611 -- --
980,248 -- --
57,636 --
7,896,032

240,546,075 $
117,379,237 -- --
9,596,424 3,281,152 108,842,386 30,372,125
-- 1,628,039 31,005,881
-- 542,651,319

62,624,000 $
1,371,816 -- --
12,710,905 3,214,628 418,164 8,181,178 -- 3,555,939 1,765,889 --
93,842,519

-- --
115,505 -- -- -- --
42,039 68,091,406 68,248,950 76,144,982
8,308,402 $

-- --
2,275,907 --
11,531,068 322,981 --
85,062,189 2,036,562,119 2,135,754,264 2,678,405,583
201,927,835 $

-- 1,991,400
1,970,305 4,530,717 1,479,111
-- -- 5,830,035 668,499,857 684,301,425 778,143,944
63,529,508 $

5,456,099
2,565,961 --
510,849
56,191 241,292
-- 1,580,905
-- 586,750 273,219
-- 11,271,266
-- --
267,598 328,403 118,999
-- -- -- 78,612,844 79,327,844 90,599,110
7,785,151

2019 Annual Financial Report 147

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2019

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 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 Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities

Georgia Highlands College

Georgia Institute of Technology

Georgia Southern University

Georgia Southwestern University

$

661,738 $

80,217,044 $

11,796,433 $

963,333

103,964

3,724,354

2,001,596

347,943

81,837

979,058

785,594

83,575

--

1,912,434

1,081,075

--

--

2,361,674

285,177

52,785

--

--

--

--

--

--

1,774,228

10,223

--

3,413,396

--

--

--

--

--

--

1,312,795

24,420,946

9,631,132

3,137,460

--

8,218,586

384,228

19,908

378,870

1,714,128

1,116,225

81,313

61,598

361,123

50,745

--

--

1,141,335

154,441

--

395,812

4,020,924

881,722

1,192,093

--

18,497,442

9,322,364

--

--

533,941

--

--

--

--

--

--

681,464

39,994,923

6,521,908

610,467

3,678,078

191,511,308

45,786,868

6,499,100

Non-Current Liabilities Advances (Including Tuition and Fees) Notes and Loans Payable Lease Purchase Obligations - External Lease Purchase Obligations - Component Units Claims and Judgments Compensated Absences Net Other Post Employment Benefits Liability Net Pension Liability
Total Non-Current Liabilities TOTAL LIABILITIES

-- -- 14,942,048 -- -- 497,891 29,638,836 19,560,082 64,638,857 68,316,935

11,465,159 10,542,401 74,063,527 368,682,753
-- 13,839,279 659,849,732 450,998,415 1,589,441,266 1,780,952,574

-- 808,723 20,080,970 203,795,245
-- 2,578,483 279,294,803 143,384,594 649,942,818 695,729,686

-- -- 32,316,619 -- -- 395,923 31,145,813 13,469,592 77,327,947 83,827,047

DEFERRED INFLOWS OF RESOURCES

$

5,437,567 $

87,570,926 $

52,321,025 $

6,210,564

148 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2019

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

$

52,753,546 $

1,551,459,418 $

425,378,436 $

44,000,286

42,041 41,776
-- -- -- (42,138,481)

70,991,897 30,214,850
-- -- -- (640,856,247)

6,222,432 5,693,258
-- -- -- (343,671,385)

510,849 488,984
-- -- -- (36,653,469)

$

10,698,882 $

1,011,809,918 $

93,622,741 $

8,346,650

2019 Annual Financial Report 149

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2019

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

Affiliated Organizations

Component Units

Other

Notes Receivable, net

Inventories

Prepaid Items

Other Assets

Total Current Assets

Non-Current Assets Accounts Receivable, net Affiliated Organizations Component Units Due From USO - Capital Liability Reserve Fund Investments Notes Receivable, net 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

$

240,904,237 $
9,606,890 -- --
3,207,929 --
18,756,356 38,359,553
-- 156,926 5,916,304
-- 316,908,195
-- --
1,414,211 --
3,619,451 794,513 -- 128,548
977,227,958 983,184,681 1,300,092,876
120,246,742 $

9,519,879 $
6,359 -- --
582,923 25,425 --
1,145,321 --
232,576 109,688
-- 11,622,171

121,665,427 $
233,376 -- --
4,444,530 3,118,402 1,324,742 12,970,298
-- 3,821,619 6,046,813
-- 153,625,207

10,342,397
-- -- --
186,352 315,361
26,082 2,874,437
-- 818,760 280,503
-- 14,843,892

-- --
355,150 -- -- -- -- --
80,427,314 80,782,464 92,404,635
6,158,900 $

-- --
2,052,325 238,349 518,800 -- --
4,909,576 631,788,608 639,507,658 793,132,865
96,989,218 $

-- --
715,528 2,021,200
-- -- -- 76,566 209,562,157 212,375,451 227,219,343
15,521,417

150 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2019

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 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 Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities

Georgia State University Gordon State College

Kennesaw State University

Middle Georgia State University

$

20,423,087 $

3,415,747

7,550,718

2,806,748

1,084,775

--

515,194

4,004,456

--

30,014,423

183,050

2,666,153

653,329

--

2,398,020

6,025,901

--

--

13,831,617

95,573,218

464,702 $ 152,923
77,503 --
73,146 -- -- -- --
409,661 95,486
362,947 18,370 -- --
1,399,808 -- --
582,961 3,637,507

14,184,015 $ 1,520,429 709,815 952,089 650,892 -- 128,759 136,670 --
19,250,220 31,919
237,800 306,852
-- 1,465,556 8,443,863
-- -- 9,022,120 57,040,999

374,900 416,382
82,227 -- -- -- -- -- --
2,175,733 1,192,192
263,834 -- -- --
2,691,904 -- --
1,534,766 8,731,938

Non-Current Liabilities Advances (Including Tuition and Fees) Notes and Loans Payable Lease Purchase Obligations - External Lease Purchase Obligations - Component Units Claims and Judgments Compensated Absences Net Other Post Employment Benefits Liability Net Pension Liability
Total Non-Current Liabilities TOTAL LIABILITIES

-- -- 30,938,539 181,720,775 -- 7,368,452 450,999,520 308,168,881 979,196,167 1,074,769,385

-- -- -- 35,979,606 -- 227,459 22,558,786 17,019,245 75,785,096 79,422,603

-- -- 48,709,736 211,334,301 -- 2,741,211 264,487,602 182,256,802 709,529,652 766,570,651

-- -- -- 81,489,542 -- 778,950 62,460,249 39,410,169 184,138,910 192,870,848

DEFERRED INFLOWS OF RESOURCES

$

101,875,539 $

5,874,548 $

94,521,227 $

15,511,847

2019 Annual Financial Report 151

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2019

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

$

738,371,635 $

41,236,501 $

301,726,082 $

120,013,969

115,461 25,026,661
-- -- -- (519,819,063)

-- 52 -- -- -- (27,970,169)

4,830,599 1,833,328
-- -- -- (279,359,804)

31,027 45,539
-- -- -- (85,732,470)

$

243,694,694 $

13,266,384 $

29,030,205 $

34,358,065

152 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2019

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

Affiliated Organizations

Component Units

Other

Notes Receivable, net

Inventories

Prepaid Items

Other Assets

Total Current Assets

Non-Current Assets Accounts Receivable, net Affiliated Organizations Component Units Due From USO - Capital Liability Reserve Fund Investments Notes Receivable, net 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

$

1,879,067 $
1,246,878 -- --
2,101,570 -- --
3,136,826 --
66,876 68,292
-- 8,499,509
-- --
844,039 --
694,030 134,495
34,175 8,885,490 151,596,748 162,188,977 170,688,486
13,481,736 $

5,489,160 $
76,816 -- --
39,738 123,559
-- 1,345,972
-- 232,007 380,706
-- 7,687,958

194,687,412 $
96,117,958 14,208,086
8,342
15,622,161 --
70,027,639 45,927,898
-- 5,996,659 6,524,095
-- 449,120,250

43,553,121
1,054,403 1,971,785
--
699,314 284,266
-- 8,621,362
-- 2,063,734
33,678 --
58,281,663

-- --
266,644 80,776 49,273 -- --
439,260 47,599,381 48,435,334 56,123,292
5,477,765 $

-- --
1,552,532 107,682,951
7,441,891 -- --
99,332,730 1,924,322,522 2,140,332,626 2,589,452,876
277,119,185 $

-- --
823,048 5,246,895 1,217,323 1,072,346
-- 1,637,479 280,363,930 290,361,021 348,642,684
64,212,373

2019 Annual Financial Report 153

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2019

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 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 Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities

Savannah State University

South Georgia State College

University of Georgia

University of North Georgia

$

1,892,581 $

271,158

97,648

--

--

--

--

--

--

2,923,630

--

3,594,440

2,287

--

2,803,066

--

174,500

--

1,172,626

12,931,936

423,320 $ 119,969
36,286 30,670 67,280
-- -- -- 199,983 484,363 45,944 57,575 -- -- -- 1,032,220 -- -- 375,683 2,873,293

29,048,706 $ 9,585,778 2,935,170 7,795,923 2,906,871 -- -- 909,129 --
53,227,300 1,437,683 2,701,589 948,883 -- 301,054 8,533,296 438,000 --
34,590,510 155,359,892

2,156,868 674,176 451,163 -- 54,170 -- 95 -- --
8,178,131 1,001,208 3,293,557
1,067 -- --
4,262,161 -- --
3,116,845 23,189,441

Non-Current Liabilities Advances (Including Tuition and Fees) Notes and Loans Payable Lease Purchase Obligations - External Lease Purchase Obligations - Component Units Claims and Judgments Compensated Absences Net Other Post Employment Benefits Liability Net Pension Liability
Total Non-Current Liabilities TOTAL LIABILITIES

-- -- 89,759,992 -- -- 652,895 49,939,053 34,730,881 175,082,821 188,014,757

-- -- -- 33,246,253 -- 184,862 18,365,044 10,163,362 61,959,521 64,832,814

-- 1,077,201
36,084 223,082,950
-- 15,429,489 1,060,918,096 687,086,041 1,987,629,861 2,142,989,753

-- -- -- 127,831,693 -- 2,202,884 141,691,189 99,420,366 371,146,132 394,335,573

DEFERRED INFLOWS OF RESOURCES

$

11,807,030 $

3,904,193 $

151,210,375 $

20,876,296

154 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2019

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

$

55,373,263 $

14,398,342 $

1,681,666,344 $

152,556,827

9,054,161 879,809 -- -- --
(80,958,798)

311,490 248,458
-- -- -- (22,094,240)

64,898,053 138,002,868
-- -- -- (1,312,195,332)

2,907,795 2,866,561
-- -- -- (160,687,995)

$

(15,651,565) $

(7,135,950) $

572,371,933 $

(2,356,812)

2019 Annual Financial Report 155

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2019

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 Other Notes Receivable, net Inventories Prepaid Items Other Assets Total Current Assets
Non-Current Assets Accounts Receivable, net Affiliated Organizations Component Units Due From USO - Capital Liability Reserve Fund Investments Notes Receivable, net 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

$

53,389,532 $

36,750,796 $

757,199,040

1,451,976

292,090

4,141,940

--

--

315,240,693

--

--

--

981,843 30,685 --
7,002,050 --
1,308,297 2,095,865
-- 66,260,248

8,535,693 208,826 --
2,468,553 --
28,442 148,560
-- 48,432,960

356,751 36,093 --
123,308,404 154,441 184,831 941,079
2,736,541 1,204,299,813

-- -- 1,357,248 -- 3,071,346 847,665 -- -- 310,309,906 315,586,165 381,846,413

-- -- 1,252,123 -- 45,590 32,454 -- 9,042,897 289,974,863 300,347,927 348,780,887

-- -- -- -- 808,723 -- -- 10,704,319 483,464,714 494,977,756 1,699,277,569

$

54,512,886 $

25,822,287 $

22,066,049

156 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2019

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 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 Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities
Non-Current Liabilities Advances (Including Tuition and Fees) Notes and Loans Payable Lease Purchase Obligations - External Lease Purchase Obligations - Component Units 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

$

6,266,918 $

3,281,241 $

14,467,937

729,393

618,642

232,841

1,180,025

888,638

45,261,821

1,963,639

--

--

206,377

83,581

105,001

--

--

--

--

--

--

--

--

--

--

--

--

4,802,392

5,739,674

1,296,536

--

425,934

--

158,674

126,699

897,544,485

63,459

4,809

50,802

--

--

--

2,202,549

616,437

2,570,226

2,887,973

5,462,576

--

--

--

--

--

--

--

3,259,517

2,503,832

3,089,948

23,720,916

19,752,063

964,619,597

-- -- 44,564,356 111,292,377 -- 1,555,843 137,060,871 84,206,672 378,680,119 402,401,035

-- -- 3,867,477 157,614,066 -- 1,440,222 109,680,913 55,999,195 328,601,873 348,353,936

-- -- 34,379,152 -- -- 1,731,784 47,159,971 53,288,034 136,558,941 1,101,178,538

$

21,364,743 $

27,285,640 $

506,448,271

2019 Annual Financial Report 157

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2019

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

$

147,037,820 $

120,578,820 $

279,314,485

-- 4,761,152
-- -- -- (139,205,451)

4,698,109 4,391,706
-- -- -- (130,705,037)

3,612,043 12,377,198
-- -- -- (181,586,917)

$

12,593,521 $

(1,036,402) $

113,716,809

158 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2019

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 Other Notes Receivable, net Inventories Prepaid Items Other Assets Total Current Assets
Non-Current Assets Accounts Receivable, net Affiliated Organizations Component Units Due From USO - Capital Liability Reserve Fund Investments Notes Receivable, net 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

$

1,940,566,438 $

262,314,825

332,539,630

519,191

83,229,010 13,390,148 271,862,640 335,566,297
154,441 22,140,409 64,764,430
2,736,541 3,329,784,000

(555,284,127) $ --
(259,972,369) --
-- -- -- (45,686,902) (154,441) -- -- 2,501,455 (858,596,384)

1,385,282,311 262,314,825 72,567,261 519,191
83,229,010 13,390,148 271,862,640 289,879,395
-- 22,140,409 64,764,430
5,237,996 2,471,187,616

1,655,106 3,630,038 20,069,298 197,694,631 34,411,153 3,335,727
34,175 249,941,368 10,180,886,037 10,691,657,533 14,021,441,533

$

1,283,882,313 $

-- -- (20,069,298) -- (808,723) -- -- -- -- (20,878,021) (879,474,405)
(41,235,260) $

1,655,106 3,630,038
-- 197,694,631
33,602,430 3,335,727 34,175
249,941,368 10,180,886,037 10,670,779,512 13,141,967,128
1,242,647,053

2019 Annual Financial Report 159

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2019

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 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 Pollution Remediation Claims and Judgments Compensated Absences Total Current Liabilities
Non-Current Liabilities Advances (Including Tuition and Fees) Notes and Loans Payable Lease Purchase Obligations - External Lease Purchase Obligations - Component Units Claims and Judgments Compensated Absences Net Other Post Employment Benefits Liability Net Pension Liability
Total Non-Current Liabilities TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES

Preliminary Total

Elimination/ Consolidation Entries

Consolidated Total

$

232,719,539 $

29,919,849

66,619,282

20,287,350

9,084,566

--

3,153,269

14,228,427

521,878

219,528,317

14,060,518

922,850,478

3,672,554

1,295,776

27,524,892

84,844,063

1,146,441

2,378,631

156,613,255

1,810,449,085

(25,892,752) $ --
(21,604,699) -- --
2,332,424 -- --
(521,878) -- --
(835,325,791) (4)
(154,441) (7,272,372) 7,272,372
-- -- -- (881,167,141)

206,826,787 29,919,849 45,014,583 20,287,350 9,084,566 2,332,424 3,153,269 14,228,427 --
219,528,317 14,060,518 87,524,687 3,672,550 1,141,335 20,252,520 92,116,435 1,146,441 2,378,631
156,613,255 929,281,944

11,465,159 12,428,325 548,226,431 2,194,775,972
3,485,065 74,790,244 4,410,751,100 2,889,134,981 10,145,057,277 11,955,506,362

$

1,317,864,024 $

-- (808,723) (78,235,983) 78,235,983
-- -- (1) 2 (808,722) (881,975,863)
(40,719,744) $

11,465,159 11,619,602 469,990,448 2,273,011,955
3,485,065 74,790,244 4,410,751,099 2,889,134,983 10,144,248,555 11,073,530,499
1,277,144,280

160 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2019

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

$

7,029,370,125 $

--$

7,029,370,125

181,015,931 265,970,604
-- -- -- (5,444,403,200)

-- (265,970,604)
13,076,407 197,970,739
54,923,458 1,985,942

181,015,931 --
13,076,407 197,970,739
54,923,458 (5,442,417,258)

$

2,031,953,460 $

1,985,942 $

2,033,939,402

2019 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, 2019 (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 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

$

11,937,157 $

17,293,430 $

--

--

--

--

3,517,585 $ -- --

95,205,676 -- --

193,801 -- --
374,510 128,430

9,152,152 663,656 845,637 723,599 --

1,945,014 15,334 87,990 20,317
165,660

60,338,262 274,480,464 219,384,167
10,001,244 680,793

2,344,042 2,560,676 3,149,080
267,661 460,191 603,106 533,149 502,660

12,312,076 268,111
6,892,862 331,991 357,264
1,755,052 496,780
1,869,703

-- 129,242
31,173 -- --
252,629 5,575
310,657

3,917,708 1,587,382 1,641,240 4,989,041 2,895,387 3,222,086 4,159,617
228,585

23,054,463

52,962,313

6,481,176

682,731,652

9,942,735 12,967,273
9,774,990 301,772 485,364
6,748,691 1,336,821 14,767,739 3,213,794

16,997,755 23,659,494 14,138,210
545,059 634,478 8,641,935 4,273,705 25,867,633 9,743,555

3,732,034 7,308,196 4,514,693
97,949 99,778 3,454,740 797,970 3,575,842 1,293,094

220,307,975 240,076,828 168,969,651
584,001 4,469,868 9,279,106 12,057,972 256,365,202 31,300,256

59,539,179

104,501,824

24,874,296

943,410,859

$

(36,484,716) $

(51,539,511) $

(18,393,120) $

(260,679,207)

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, 2019 (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

$

26,007,553 $

30,220,359 $

11,316,347 $

223,576,912

10,370,915 276,973 806,192
1,145,124 134,768 (4,960) (149,629)

19,784,569 -- --
764,802 31,635
(5,834,394) (5,446,557)

6,774,736 -- --
744,500 --
(561,072) --

11,922,299 --
4,233,894 11,736,828
3,574,502 (1,919,686)
173,401

Net Nonoperating Revenues

38,586,936

39,520,414

18,274,511

253,298,150

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

2,102,220

(12,019,097)

(118,609)

(7,381,057)

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item

-- 18,988,306
-- -- (45,909,203)

-- 404,919
-- -- --

-- 510,096
-- -- --

-- 55,990,158
-- -- 97,644,818

Total Other Revenues, Expenses, Gains or Losses

(26,920,897)

404,919

510,096

153,634,976

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

(24,818,677) 31,133,267

(11,614,178) 3,361,872

391,487 1,223,534

146,253,919 (233,066,291)

Net Position, End of Year

$

6,314,590 $

(8,252,306) $

1,615,021 $

(86,812,372)

2019 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, 2019 (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 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

$

25,867,204 $

--

--

7,134,088 $ -- --

42,891,412 $ -- --

9,582,447 -- --

1,943,166 8,664
307,538 2,112,047
12,461

18,810 -- --
22,385 1,750

1,492,146 122,025 124,221
3,965,705 43,924

5,548 74,490 1,360,025 43,666
--

7,259,242 2,915,131
352,356 528,790 662,227 2,281,791 339,384 978,340

998,781 308,575 2,025,172
-- -- 1,156,253 1,010,163 139,530

4,392,609 365,015 550,208
1,537,026 686,956
2,532,111 333,997
1,003,140

362,348 268,611 915,869 609,051 281,980 1,138,691 444,706 579,673

45,568,341

12,815,507

60,040,495

15,667,105

20,778,462 21,816,143 15,590,679
441,747 449,666 9,365,280 2,445,630 15,886,412 5,800,505

8,761,267 9,242,430 6,747,286
159,603 259,568 3,051,573 991,573 7,583,999 3,016,214

26,344,707 30,986,652 22,468,002
305,824 977,236 10,278,372 4,387,988 24,312,671 5,166,921

11,382,787 9,046,758 8,762,648 239,273 288,323 5,598,693 873,883 8,997,926 2,027,469

92,574,524

39,813,513

125,228,373

47,217,760

$

(47,006,183) $

(26,998,006) $

(65,187,878) $

(31,550,655)

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, 2019 (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

$

27,238,052 $

16,868,047 $

43,068,260 $

17,996,904

18,359,464 (1,804)
819,888 624,645 (87,056) (2,876,670) (123,167)

7,061,285 34,957
1,050,716 498,903 19,871 (587,545) (751)

15,613,232 --
4,477,646 1,331,702
230,284 (1,985,528)
(5,116)

11,723,533 -- --
976,787 11,757
(338,998) (5,195)

Net Nonoperating Revenues

43,953,352

24,945,483

62,730,480

30,364,788

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

(3,052,831)

(2,052,523)

(2,457,398)

(1,185,867)

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item

-- 1,036,309
-- -- --

-- 1,835,189
-- -- --

-- 13,664,602
-- -- --

-- 8,552,884
5,800 -- --

Total Other Revenues, Expenses, Gains or Losses

1,036,309

1,835,189

13,664,602

8,558,684

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

(2,016,522) (20,943,518)

(217,334) 27,722,938

11,207,204 (23,590,649)

7,372,817 2,274,851

Net Position, End of Year

$

(22,960,040) $

27,505,604 $

(12,383,445) $

9,647,668

2019 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, 2019 (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 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 University

Georgia College & State University

Georgia Gwinnett College

$

3,981,928 $

8,847,578 $

58,707,884 $

36,976,439

--

--

--

--

--

6,990,623

--

--

56,238 199,676
19,337 11,799
3,331

510,450 67,292 30,541
439,541 168,406

320,564 770,408 112,754 2,815,248
79,800

390,260 232,966 456,152 288,580
74,995

681,548 74,891
1,201,341 217,528 62,268 565,547 4,287 187,988

7,548,099 30,747
4,863,917 183,256 373,181
1,438,544 1,101,357 1,353,823

16,084,341 1,311,493 7,840,409 1,604,216 -- 2,384,731 328,133 742,414

7,825,298 813,215 479,298
2,751,876 666,840
4,053,778 214,834 548,096

7,267,707

33,947,355

93,102,395

55,772,627

5,225,317 5,675,381 5,105,021
80,904 135,027 4,640,667 607,264 4,331,424 885,333

9,818,395 20,257,111 12,394,917
539,152 1,157,989 5,387,793 4,329,763 22,694,196 6,724,537

29,453,624 34,492,552 26,638,726
291,950 1,423,735 3,152,348 3,481,512 31,737,312 9,937,270

39,890,120 25,626,864 24,957,347
447,516 854,110 13,357,720 2,543,481 23,897,212 8,708,899

26,686,338

83,303,853

140,609,029

140,283,269

$

(19,418,631) $

(49,356,498) $

(47,506,634) $

(84,510,642)

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, 2019 (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 University

Georgia College & State University

Georgia Gwinnett College

$

9,984,666 $

23,253,144 $

41,176,883 $

57,990,145

8,515,520 76,518
334,442 455,861
31,014 (152)
(48,982)

26,303,749 3,755
1,512,401 358,765 4,189
(3,227,808) (561,835)

7,784,861 207,075
1,735,074 1,488,744
248,257 (5,964,001)
(47,525)

32,133,914 --
116,473 867,406 326,164 (8,758,476)
(779)

Net Nonoperating Revenues

19,348,887

47,646,360

46,629,368

82,674,847

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

(69,744)

(1,710,138)

(877,266)

(1,835,795)

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item

-- 1,115,265
-- -- --

2,132,462 803,409 -- -- --

-- 1,400 292,234 27,054
--

-- 13,198,518
314,254 -- --

Total Other Revenues, Expenses, Gains or Losses

1,115,265

2,935,871

320,688

13,512,772

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

1,045,521 2,793,717

1,225,733 202,814

(556,578) (39,157,392)

11,676,977 22,718,875

Net Position, End of Year

$

3,839,238 $

1,428,547 $

(39,713,970) $

34,395,852

2019 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, 2019 (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 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

$

13,728,603 $

382,718,891 $

137,269,034 $

11,932,605

--

--

--

--

--

--

--

--

366,364 237,334 236,906 350,776 156,165

662,701,509 14,385,091
254,562,555 69,950,445 2,223,111

5,095,553 497,397
9,391,214 4,483,681
501,021

497,843 225,443 2,672,315 176,524
27,250

-- 313,856
-- 115,889
-- 1,199,050
237,124 489,281

83,339,069 2,062,143 3,931,174
19,378,089 12,097,914
-- 998,172 19,393,032

34,357,094 9,156,078
24,576,443 4,515,236 4,317,893
18,498,322 424,964
4,768,811

4,196,573 923,909
2,570,922 68,108
359,335 1,063,627
377,258 362,950

17,431,348

1,527,741,195

257,852,741

25,454,662

10,329,005 10,586,089
7,741,223 814
289,544 7,085,668 1,552,442 11,393,844 1,987,460

461,723,786 389,693,228 252,140,269
1,156,868 30,045,679 19,032,957 28,867,138 482,033,106 109,097,163

90,690,585 114,214,816
80,755,990 1,083,408 3,850,034
24,538,138 14,928,026 102,444,999 36,579,928

10,097,525 9,772,704 8,593,843 195,403 318,145 2,611,234 1,949,321
11,134,258 3,435,311

50,966,089

1,773,790,194

469,085,924

48,107,744

$

(33,534,741) $

(246,048,999) $

(211,233,183) $

(22,653,082)

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, 2019 (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

$

19,873,431 $

318,443,910 $

139,749,943 $

15,415,263

11,141,164 -- --
1,497,953 3,209
(885,505) (20,372)

12,624,220 (3,549) --
2,561,674 29,256,800 (23,406,264) (4,265,146)

44,049,762 -- --
9,613,153 952,056
(10,605,820) (1,017,505)

5,190,852 -- --
798,883 153,503 (1,289,743)
--

Net Nonoperating Revenues

31,609,880

335,211,645

182,741,589

20,268,758

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

(1,924,861)

89,162,646

(28,491,594)

(2,384,324)

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item

-- 20,849,418
-- -- --

-- 54,775,501
1,686,177 410,400 --

-- 58,748,887
498,003 --
(2,958,080)

-- -- 130,000 -- --

Total Other Revenues, Expenses, Gains or Losses

20,849,418

56,872,078

56,288,810

130,000

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

18,924,557 (8,225,675)

146,034,724 865,775,194

27,797,216 65,825,525

(2,254,324) 10,600,974

Net Position, End of Year

$

10,698,882 $

1,011,809,918 $

93,622,741 $

8,346,650

2019 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, 2019 (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 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

$

316,096,804 $

--

--

5,368,417 $ -- --

199,255,851 $ -- --

24,376,268 -- --

78,643,652 12,466,902 68,310,727 25,884,828
245,199

28,121 101,938
25,334 122,183
67,450

1,636,115 277,574
11,425,110 16,440,469
1,013,430

184,383 13,480 2,500
1,081,890 379,481

17,902,126 1,563,174
18,195,536 9,693,191 3,604,493
20,132,569 6,963,458 1,297,311

4,865,057 1,656,690 2,386,770
66,729 102,681 468,746
68,063 127,093

17,390,212 10,785,306 23,102,329 10,635,925
3,420,555 15,436,965
8,625,320 1,591,174

9,162,022 2,599,579 4,012,073
445,272 250,420 1,603,439 711,703 1,088,270

580,999,970

15,455,272

321,036,335

45,910,780

205,842,439 251,425,994 147,891,489
3,136,530 7,218,208 72,786,300 20,723,946 176,637,049 57,427,954

943,089,909

$

(362,089,939) $

8,901,928 7,047,063 6,391,812
135,857 163,044 2,855,170 1,783,508 8,899,990 2,742,977
38,921,349
(23,466,077) $

122,585,671 118,714,416
93,368,772 1,797,877 3,583,924
32,766,885 12,703,464 117,580,819 32,299,173
535,401,001
(214,364,666) $

22,965,521 20,015,325 16,712,631
186,946 591,439 8,798,959 3,273,202 20,662,920 7,435,228
100,642,171
(54,731,391)

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, 2019 (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

$

277,537,291 $

13,016,042 $

149,071,503 $

35,187,661

111,991,591 --
4,843,853 11,409,950
6,073,995 (12,427,572)
(4,136,258)

8,706,154 -- --
365,052 192,131 (1,420,001) (11,467)

61,797,126 97,779
3,964,796 5,268,745 1,923,691 (13,920,960)
(190,082)

17,452,480 940,900 760,532
2,008,707 291,498
(3,441,055) 195,485

Net Nonoperating Revenues

395,292,850

20,847,911

208,012,598

53,396,208

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

33,202,911

(2,618,166)

(6,352,068)

(1,335,183)

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item

-- 9,420,498 3,949,012
-- --

-- 2,640,733
150,000 -- --

-- 3,914,093 4,076,614
-- 1,034,390

-- 391,860
-- -- --

Total Other Revenues, Expenses, Gains or Losses

13,369,510

2,790,733

9,025,097

391,860

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

46,572,421 197,122,273

172,567 13,093,817

2,673,029 26,357,176

(943,323) 35,301,388

Net Position, End of Year

$

243,694,694 $

13,266,384 $

29,030,205 $

34,358,065

2019 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, 2019 (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 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

$

11,863,094 $

--

--

3,577,687 $ -- --

463,556,210 $ --
14,298,645

78,851,780 -- --

9,942,082 17,740
451,212 1,462,019
45,765

25,075 33,565
-- 14,103
9,860

147,116,848 49,680,647 88,282,374
106,682,801 1,205,715

-- -- -- 4,476,444 223,652

12,475,059 180,964
7,414,404 780,433 483,649
3,756,312 79,322
480,445

1,955,784 786,081 909,451 4,706 -- 450,518 81,189 300,952

57,951,336 4,577,553
49,898,682 22,167,432 24,538,684 38,768,609 13,444,998 11,926,229

11,287,413 5,396,357 9,924,331 5,642,312 1,015,561 3,433,070 130,560 3,264,356

49,432,500

8,148,971

1,094,096,763

123,645,836

14,803,445 19,210,396 14,531,339
352,398 579,148 6,266,745 4,124,461 25,047,667 7,239,353

4,930,095 5,300,273 4,058,804
244,564 268,414 3,333,825 1,314,502 5,296,146 2,494,388

318,363,494 508,200,251 315,074,666
2,126,329 22,267,521 44,951,050 42,213,543 315,795,228 98,212,547

55,356,568 54,169,750 49,715,612
619,018 2,039,002 15,601,841 5,138,961 42,237,834 17,492,791

92,154,952

27,241,011

1,667,204,629

242,371,377

$

(42,722,452) $

(19,092,040) $

(573,107,866) $

(118,725,541)

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, 2019 (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

$

25,664,982 $

11,507,803 $

504,630,780 $

79,676,660

14,937,902 -- --
1,605,632 1,017,038 (4,426,183)
--

7,238,612 --
40,474 410,554
19,701 (1,212,804)
--

33,158,283 8,990,264
40,578,367 14,880,323 14,241,746 (12,619,711)
690,331

31,485,429 218,808
3,888,445 1,049,806
721,589 (5,519,785)
(51,181)

Net Nonoperating Revenues

38,799,371

18,004,340

604,550,383

111,469,771

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

(3,923,081)

(1,087,700)

31,442,517

(7,255,770)

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item

-- -- -- -- 2,958,080

-- 409,718
-- -- --

-- 36,755,274
3,876,193 853,758 --

-- 6,580,670
229,167 -- --

Total Other Revenues, Expenses, Gains or Losses

2,958,080

409,718

41,485,225

6,809,837

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

(965,001) (14,686,564)

(677,982) (6,457,968)

72,927,742 499,444,191

(445,933) (1,910,879)

Net Position, End of Year

$

(15,651,565) $

(7,135,950) $

572,371,933 $

(2,356,812)

2019 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, 2019 (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 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

$

79,574,987 $

58,091,162 $

--

--

--

--

315,816 -- --

1,461,406 447,901
1,727,666 685,321 98,449

1,463,134 66,008
1,812,296 1,095,966
938,395

180,500 48,698
230,212 56,890,055
10,520

20,030,968 2,345,738
11,970,011 1,723,707 2,261,263 6,945,404 671,053 2,399,250

13,976,886 1,072,176 9,876,492 4,034,701 2,884,967 3,218,567 530,788 776,256

10,038,162 -- -- -- -- -- --
490,365,078

132,343,124

99,837,794

558,079,041

45,459,500 58,007,039 47,292,265
565,459 1,772,840 10,739,374 4,347,813 45,978,879 14,986,683

37,133,391 35,392,981 27,766,334
2,008,226 1,386,219 15,768,491 5,383,928 32,090,658 16,837,155

108,072 43,985,644 18,519,022
974,254 1,372,852
330,365 7,608,728 722,894,779 23,080,312

229,149,852

173,767,383

818,874,028

$

(96,806,728) $

(73,929,589) $

(260,794,987)

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, 2019 (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

$

64,411,102 $

51,327,479 $

200,265,231

25,799,970 -- --
1,125,377 1,442,271 (8,213,500)
(329,956)

23,929,975 33,026
149,557 1,055,240
833,788 (6,257,638)
(37,737)

7,756,369 684,140
19,441,482 708,142
5,088,391 (1,549,130) (15,277,997)

84,235,264

71,033,690

217,116,628

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

(12,571,464)

-- 26,947,505
428,451 -- --

27,375,956

14,804,492 (2,210,971)

$

12,593,521 $

(2,895,899)
-- 2,583,648
124,778 9,147 --
2,717,573
(178,326) (858,076)
(1,036,402) $

(43,678,359)
-- 649,452 4,636,064
-- --
5,285,516
(38,392,843) 152,109,652
113,716,809

2019 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, 2019 (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 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

$

2,108,520,037 $

--

21,289,268

656,606,011 $ (656,606,011)
--

2,765,126,048 (656,606,011) 21,289,268

985,708,996 355,134,693 661,858,783 310,616,146
8,505,013

(6,738,892) (1,802,355) (1,132,168) (45,285,907)
--

978,970,104 353,332,338 660,726,615 265,330,239
8,505,013

362,653,853 54,052,693
198,711,543 92,292,166 61,783,709
136,359,517 42,315,954
547,075,097

(15,815,698) -- -- -- -- -- --
(344,009,639)

346,838,155 54,052,693
198,711,543 92,292,166 61,783,709
136,359,517 42,315,954
203,065,458

5,946,877,468

(414,784,659)

5,532,092,809

1,811,926,203 2,086,891,651 1,410,616,241
18,618,701 86,981,155 350,423,920 194,040,545 2,560,145,744 519,166,270

9,038,810,430

$

(3,091,932,962) $

-- -- (338,917,828) -- -- -- -- (76,254,694) --
(415,172,522)
387,863 $

1,811,926,203 2,086,891,651 1,071,698,413
18,618,701 86,981,155 350,423,920 194,040,545 2,483,891,050 519,166,270
8,623,637,908
(3,091,545,099)

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, 2019 (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

$

2,434,476,353 $

(1,550) $

2,434,474,803

593,607,966 11,558,842 88,754,232 75,353,258 66,736,792
(139,254,961) (30,668,020)

-- -- -- -- (59,036) 59,036 1,551

593,607,966 11,558,842 88,754,232 75,353,258 66,677,756
(139,195,925) (30,666,469)

3,100,564,462

1

3,100,564,463

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

8,631,500

2,132,462 340,768,312
20,396,747 1,300,359
52,770,005

417,367,885

425,999,385 1,605,954,075

$

2,031,953,460 $

387,864

9,019,364

-- -- -- -- --
--
387,864 1,598,078
1,985,942 $

2,132,462 340,768,312
20,396,747 1,300,359
52,770,005
417,367,885
426,387,249 1,607,552,153
2,033,939,402

2019 Annual Financial Report 177

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2019

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 Foundation,
Inc.

Atlanta Metropolitan State College Projects
Foundation, Inc.

Atlanta Metropolitan State College
Foundation, Inc.

$

3,335,998 $

2,377,214 $

--

2,084,764

--

--

--

--

-- -- -- -- 202,300 -- -- -- -- -- -- -- 3,538,298

-- -- -- -- 141,084 7,500 -- -- 897,471 -- -- -- 5,508,033

469,047 $ -- -- --
-- -- -- -- 274,425 -- -- -- -- -- -- -- 743,472

277,687 $ 364,263
-- --
-- -- -- -- -- -- -- -- -- -- -- -- 641,950

278,509 --
467,110 --
-- -- -- -- -- -- -- -- -- -- -- -- 745,619

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

-- -- -- 580,193 -- 22,731,618 -- -- -- 245,242 -- -- -- 7,739,494 31,296,547 34,834,845

-- -- -- 50,000 -- 3,022,453 -- -- 33,783,629 -- 4,918,540 -- -- -- 41,774,622 47,282,655

-- -- -- 522,034 -- 15,137,961 -- -- -- -- -- -- -- -- 15,659,995 16,403,467

-- -- -- -- -- -- -- -- -- -- -- -- -- 8,745,684 8,745,684 9,387,634

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 745,619

DEFERRED OUTFLOWS OF RESOURCES

$

--$

--$

--$

--$

--

178 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2019

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 Foundation,
Inc.

Atlanta Metropolitan State College Projects
Foundation, Inc.

Atlanta Metropolitan State College
Foundation, Inc.

$

45,842 $

984,116 $

52,430 $

--$

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

21,830

2,460

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

2,560,000

--

--

285,000

--

--

--

--

--

--

--

1,050,000

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

2,605,842

2,055,946

54,890

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

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 2,605,842

-- -- -- -- -- -- -- 36,984,862 -- -- -- -- -- -- -- 36,984,862 39,040,808

-- -- -- -- -- 9,910,160 -- -- -- -- -- -- -- -- -- -- 54,890

-- -- -- 6,727,384 -- -- -- -- -- -- -- -- -- -- -- 9,910,160 10,195,160

-- -- -- -- 17,505,364 -- -- -- -- -- -- -- -- -- -- -- --

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

--

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

5,279,494

10,021,971

7,329,030

9,598,508

$

32,229,003 $

--
2,038,731 1,200,482 5,002,634 8,241,847 $

--
7,958,971 7,648,888
740,718 16,348,577 $

--
-- -- (807,526) (807,526) $

--
-- 369,312 376,307 745,619

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2019 Annual Financial Report 179

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2019

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.

$

82,451,606 $

1,121,058

42,765,506

15,172,846

-- -- -- 5,706,173 -- 159,350,401 -- 124,496 1,226,662 20,646,799 19,556,715 -- 348,122,262

4,315,878 $ 3,489,218 1,525,924
--
-- -- -- -- 155,965 58,655 -- -- 2,075,695 -- 1,767 -- 11,623,102

5,443,768 $ -- -- --
4,304,155 -- -- -- -- -- -- -- -- -- -- --
9,747,923

1,218,677 $ -- -- --
-- -- -- 724,721 -- 31,294 -- -- -- -- -- -- 1,974,692

21,522 $ -- -- --
-- -- -- -- -- -- -- -- -- -- -- -- 21,522

2,700,729 5,660,505
-- 415,564
-- -- -- -- 317,068 58,277 -- -- -- -- 9,843 -- 9,161,986

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

-- --
-- -- 20,212,846 112,917,934 -- -- 21,292,862 5,416,198 -- -- 3,895,086 251,547,353 415,282,279 763,404,541

-- --
-- 96,513
-- 1,086,453
-- -- 29,510,311 194,775 -- -- 28,842,938 -- 59,730,990 71,354,092

-- --
-- -- -- 4,474,350 -- -- -- -- 69,973 -- -- -- 4,544,323 14,292,246

-- --
-- -- -- 16,582,962 -- -- -- -- -- -- -- -- 16,582,962 18,557,654

-- --
-- -- -- 2,369,878 -- -- -- -- -- -- -- -- 2,369,878 2,391,400

-- --
-- 141,847
-- 8,991,525
-- -- 54,654,110 -- -- -- 1,672,669 7,308,736 72,768,887 81,930,873

DEFERRED OUTFLOWS OF RESOURCES

$

--$

--$

--$

--$

--$

--

180 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2019

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.

$

75,690,993 $

9,325,924

--

--

--

66,784,070

124,866

--

--

--

--

9,528,152

--

6,327,586

5,165,000

--

--

--

--

20,521,811

193,468,402

433,805 $ -- -- -- --
303,793 -- --
950,497 -- -- -- -- --
1,025,000 -- -- -- -- --
2,713,095

155,642 $ -- -- -- --
4,249,535 -- -- -- -- --
18,979 -- -- -- -- -- -- -- --
4,424,156

15,097,138 $ -- -- -- --
555,024 -- -- -- -- -- -- -- -- -- -- -- -- -- --
15,652,162

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

1,567,871 -- -- -- -- -- -- -- -- -- -- --
246,621 --
1,625,000 -- -- -- -- --
3,439,492

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

-- -- -- -- -- -- 19,372,866 208,119,966 -- 20,085,401 -- -- -- 6,758,623 -- 271,842,220 465,310,622

-- -- -- -- -- -- -- 22,023,567 -- -- -- -- -- -- -- 28,750,951 31,464,046

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 4,424,156

1,672,669 -- -- -- --
3,671,398 -- -- -- -- -- -- -- -- -- --
15,652,162

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

62,159,921

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

67,503,988

--

70,943,480

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

--

--

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

53,293,543

--

20,072,515

224,727,861

$

298,093,919 $

--
19,652,615 16,754,168
3,483,263 39,890,046 $

--
-- 69,973 9,798,117 9,868,090 $

--
-- -- 2,905,492 2,905,492 $

--
-- 2,391,400
-- 2,391,400 $

7,308,736
3,885,112 6,069,434 (6,275,889) 10,987,393

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2019 Annual Financial Report 181

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2019

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

$

755,733 $

--

--

--

88,310 $ 6,914
50,352 --

154,337 $ -- -- --

2,329,248 9,868,014
-- --

-- -- -- -- 112,812 -- -- -- -- -- 676 -- 869,221

-- -- -- -- -- 12 -- -- -- 7,064 1,000 -- 153,652

-- -- -- 13,830 5,054 -- -- -- -- -- 4,613 -- 177,834

-- -- -- -- 6,598,492 6,500 -- -- -- -- 125,957 73,776 19,001,987

26,167 $ -- -- --
-- -- -- -- -- -- -- -- -- -- -- -- 26,167

2,109 -- -- --
-- -- -- -- -- -- -- -- -- -- -- -- 2,109

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

-- -- -- 72,686 -- 13,908,970 -- -- -- 255,085 -- -- -- 1,441,513 15,678,254 16,547,475

251,007 -- -- -- -- -- -- -- -- -- -- -- -- --
251,007 404,659

-- -- -- 5,500 -- 2,662,161 -- -- -- -- -- -- -- -- 2,667,661 2,845,495

-- -- -- 16,007,844 -- 68,509,420 -- -- -- -- -- -- -- 22,949,163 107,466,427 126,468,414

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 26,167

-- -- -- -- -- -- -- -- -- -- -- -- -- 1,144,027 1,144,027 1,146,136

DEFERRED OUTFLOWS OF RESOURCES

$

--$

--$

--$

--$

--$

--

182 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2019

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

$

--$

9,007 $

6,000 $

340,662 $

--$

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

163,355

13

--

9,092,873

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

75

3,650

--

--

--

--

--

--

--

--

--

--

--

--

23,663

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

2,564

--

--

104,707

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

165,919

9,020

6,075

9,541,892

23,663

--

--

10,637,609

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

11,382

--

--

965,209

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

11,382

--

--

11,602,818

--

--

177,301

9,020

6,075

21,144,710

23,663

--

--

--

--

--

--

--

1,441,513

7,247,674

5,645,807

2,035,180

$

16,370,174 $

--
115,133 --
280,506 395,639 $

--
1,364,633 1,504,635
(29,848) 2,839,420 $

22,949,163
26,529,730 54,176,047
1,668,764 105,323,704 $

--
-- -- 2,504 2,504 $

1,144,027
-- -- 2,109 1,146,136

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2019 Annual Financial Report 183

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2019

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.

$

414,301 $

--

24,674,441

--

-- -- -- -- 2,560,526 -- -- -- -- -- 25,529 -- 27,674,797

15,224 $ -- -- --
-- -- -- -- -- -- -- -- 479,197 -- -- -- 494,421

578,864 $ -- -- --
-- -- -- -- -- 2,000 -- -- -- -- -- -- 580,864

87,785 $ -- -- --
-- -- -- -- 207,415 -- -- -- -- -- -- -- 295,200

4,748,681 $ --
925,513 --
-- -- -- -- -- 1,141,550 10,000 -- -- -- -- -- 6,825,744

7,569,051 -- -- --
-- -- -- 2,530,186 -- 108,879 -- -- -- -- 16,247 2,119 10,226,482

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

-- -- -- 3,143,238 -- -- -- -- -- -- -- -- -- 2,962,112 6,105,350 33,780,147

-- -- -- -- -- -- -- -- 20,826,043 333,928 1,816,598 -- -- -- 22,976,569 23,470,990

-- -- -- 24,659 -- 4,231,467 -- -- -- -- -- -- -- 407,295 4,663,421 5,244,285

-- -- -- 571,882 -- 861,199 -- -- -- -- -- -- 237,120 697,370 2,367,571 2,662,771

-- -- -- -- 17,534,021 7,306,090 -- -- -- 41,987 -- -- 1,321,944 1,378,583 27,582,625 34,408,369

1,261,288 -- -- -- --
3,278,624 -- -- -- --
794,017 -- --
98,760,933 104,094,862 114,321,344

DEFERRED OUTFLOWS OF RESOURCES

$

--$

--$

--$

--$

--$

--

184 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2019

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.

$

161,242 $

--

--

--

--

--

--

--

--

--

--

--

1,500,000

--

--

--

--

--

--

--

1,661,242

--$ -- -- -- -- -- -- -- 10,022 -- -- -- -- -- 530,000 -- -- -- -- -- 540,022

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

743 $ -- -- -- --
8,949 -- -- -- -- -- -- -- -- -- -- -- -- -- --
9,692

178,278 $ -- -- -- -- -- -- -- -- -- -- --
17,065 --
430,000 -- -- -- -- --
625,343

495,048 -- -- -- --
33,167,381 -- --
24,278 -- --
193,141 1,000,000
-- 2,017,709
-- -- -- -- -- 36,897,557

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 1,661,242
--

-- -- -- -- -- -- -- 19,885,518 -- -- -- -- -- -- -- 19,885,518 20,425,540
--

2,962,112

13,746,245

4,765,818

10,644,730

$

32,118,905 $

--
-- -- 3,045,450 3,045,450 $

760,860 -- -- -- --
217,784 -- -- -- -- -- -- -- -- -- -- --
--
407,295
1,377,826 608,932
2,850,232 5,244,285 $

-- -- -- -- -- 12,860,075 -- -- -- -- -- -- -- -- -- -- 9,692
--
--
237,120 1,719,700
696,259 2,653,079 $

-- -- -- 4,849,822 522,376 6,322,077 -- 18,245,571 -- -- -- -- -- -- -- 19,224,215 19,849,558
--
2,391,669
4,737,867 5,984,249 1,445,026 14,558,811 $

-- -- -- -- -- -- -- 40,124,027 -- -- -- -- -- -- -- 52,984,102 89,881,659
--
--
1,456,366 --
22,983,319 24,439,685

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2019 Annual Financial Report 185

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2019

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.

$

20,779,697 $

325,688

--

--

-- -- -- 44,868 125,514 51,591 16,471 -- 1,339,267 -- 26,974 615,250 23,325,320

331,854 $ -- -- --
-- -- -- -- 3,500 -- -- -- -- 8,111 185 -- 343,650

2,758,460 $ -- -- --
-- -- -- -- 527,299 2,197 -- -- 814,219 -- 8,833 -- 4,111,008

1,904,325 $ -- -- --
-- -- -- -- 18,570 7,755 -- -- 12,179,953 -- -- -- 14,110,603

169,538 $ --
2,520,418 9,925,571
-- -- -- 892 1,972,673 -- -- 124,866 -- -- 138,673 -- 14,852,631

761,789 978,777
-- --
-- -- -- -- -- -- -- -- 1,284,210 -- -- -- 3,024,776

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

-- -- -- 574,921 -- 15,000 -- -- 78,931,401 522,376 4,725,816 -- -- 84,282,460 169,051,974 192,377,294

-- -- -- 5,500 -- 8,748,086 -- -- -- 4,500 -- -- -- -- 8,758,086 9,101,736

-- -- -- 634,924 -- 11,087,289 -- -- 81,516,434 1,173,124 -- -- 42,138,780 1,210,801 137,761,352 141,872,360

-- -- -- 11,200 -- 6,236,701 -- -- 149,185,856 10,400 12,063,554 -- -- 8,262,388 175,770,099 189,880,702

-- -- -- 138,873 -- -- -- -- -- -- -- -- 5,177,714 2,295,000 7,611,587 22,464,218

-- -- -- -- -- 2,249,470 -- -- 14,411,924 -- 616,944 -- -- 735 17,279,073 20,303,849

DEFERRED OUTFLOWS OF RESOURCES

$

--$

--$

--$

--$

--$

--

186 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2019

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.

$

441,095 $

--

--

--

--

4,947,396

--

--

1,645,136

184,298

--

295,671

249,285

1,901,011

1,085,000

--

--

--

--

--

10,748,892

4,516 $ -- -- -- --
9,113 -- -- -- -- -- -- -- -- -- -- -- -- -- --
13,629

1,005,327 $ -- -- -- --
896,193 -- -- -- --
3,483,719 -- -- --
2,975,000 -- -- -- -- --
8,360,239

3,332,196 $ -- -- -- --
123,919 -- --
22,689 -- -- --
124,035 --
3,995,000 -- -- -- -- --
7,597,839

49,253 $ -- -- -- --
29,448 123,743
-- 190,790
-- -- -- -- -- -- 90,485 -- -- -- -- 483,719

29,995 -- -- -- -- -- -- -- -- -- -- -- -- --
460,000 -- -- -- -- --
489,995

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

1,638,638 -- -- -- -- --
50,903,907 60,439,482
-- -- -- -- -- -- -- 123,037,664 133,786,556

-- -- -- -- -- 2,033,444 -- -- -- -- -- -- -- -- -- -- 13,629

-- -- -- -- -- -- -- 89,329,464 771,766 6,489,668 -- -- -- -- -- 98,229,536 106,589,775

-- -- -- -- -- -- -- 163,070,449 -- -- -- -- -- -- -- 165,103,893 172,701,732

-- -- -- -- -- 37,675 -- -- 159,921 -- -- -- -- -- -- 159,921 643,640

-- -- -- -- -- -- -- 15,359,396 -- -- -- -- -- -- -- 15,359,396 15,849,391

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

--

--

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

22,871,446

--

7,128,464

28,590,828

$

58,590,738 $

--
5,705,065 2,697,455
685,587 9,088,107 $

1,210,801
21,089,242 9,103,132 3,879,410
35,282,585 $

8,262,388
3,323,020 --
5,593,562 17,178,970 $

2,295,000
2,751,102 13,964,220
2,810,256 21,820,578 $

735
943,396 1,832,613 1,677,714 4,454,458

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2019 Annual Financial Report 187

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2019

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.

$

4,375,665 $

1,802,687

--

--

-- -- -- 1,774,228 2,780,903 150,186 -- -- 426,534 -- 3,916 -- 11,314,119

99,859 $ -- -- --
-- -- -- -- 803,243 36,314 -- -- -- -- -- -- 939,416

2,244,047 $ --
6,327,002 --
-- -- -- -- -- 44,738 -- -- 9,322,364 -- 14,555 -- 17,952,706

5,226,741 $ -- -- --
1,162,725 190,191 -- -- --
1,258,704 -- -- --
3,757 42,975
-- 7,885,093

63,627 $ 4,251,089
-- --
-- -- -- 10,223 2,095,063 -- -- -- -- -- 13,802 -- 6,433,804

253,843 -- -- --
-- -- -- -- -- 99,522 -- -- -- -- 36,150 -- 389,515

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

$

-- -- -- 898,734 -- 1,891,223 -- -- 19,478,186 11,154 -- -- -- 2,502,903 24,782,200 36,096,319
--$

-- -- -- 2,428,772 -- 68,122,876 -- -- -- 2,262,833 -- -- -- 1,616,968 74,431,449 75,370,865
--$

-- -- -- -- -- -- -- -- 203,795,245 -- 33,037,849 -- -- 1,620,000 238,453,094 256,405,800
--$

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 7,885,093
--$

-- -- -- -- -- 31,981,176 -- -- -- 14,317 -- -- -- 160,677 32,156,170 38,589,974
--$

-- -- -- -- -- 1,637,040 -- -- -- 24,952 -- -- -- 6,490 1,668,482 2,057,997
--

188 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2019

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.

$

431,169 $

--

--

--

--

242,202

--

--

1,174,787

--

--

--

32,620

--

550,000

--

--

--

--

--

2,430,778

60,082 $ -- -- -- --
91,924 -- -- -- -- -- -- -- -- --
9,150 -- -- -- --
161,156

3,809,222 $ -- -- -- --
418,164 -- -- -- -- -- -- -- --
8,375,000 -- -- -- -- --
12,602,386

23,472 $ -- -- -- --
2,878,042 -- --
919,633 --
831,398 -- -- -- -- -- -- -- -- --
4,652,545

16,751 $ -- --
8,750 --
6,250 -- -- -- -- -- -- -- -- -- -- -- -- -- --
31,751

27,052 -- -- -- --
17,007 -- --
18,791 -- -- -- -- -- -- -- -- -- -- --
62,850

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

1,991,400 -- --
69,005 10,558
-- -- 20,123,404 -- -- -- -- -- -- -- 20,161,079 22,591,857

-- -- -- -- -- -- -- -- 68,912 -- -- -- -- -- -- 68,912 230,068

-- -- -- -- -- -- -- 208,900,686 -- -- -- -- -- -- -- 210,971,649 223,574,035

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 4,652,545

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 31,751

-- -- -- -- 4,410,299 -- -- -- -- -- -- -- -- -- -- -- 62,850

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

--

--

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

2,432,608

1,616,968

1,620,000

1,426,448

43,231,501

--

6,618,576

26,184,816

33,037,849

3,026,830

4,107,512

(1,826,084)

$

13,504,462 $

75,140,797 $

32,831,765 $

--
-- -- 3,232,548 3,232,548 $

160,677
13,178,286 15,377,674
9,841,586 38,558,223 $

6,490
-- 47,229 1,941,428 1,995,147

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2019 Annual Financial Report 189

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2019

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.

$

3,865,917 $

7,176,214 $

7,123,926 $

--

8,439,967

5,372,585

--

--

--

--

--

--

-- -- -- 1,149,746 8,878,856 256,686 -- -- -- -- 276,446 -- 14,427,651

-- -- -- -- 4,726,801 798,212 -- -- 3,588,630 -- -- -- 24,729,824

-- -- -- 2,854,710 -- 17,402,546 -- -- 2,437,273 -- 16,385,919 -- 51,576,959

583,334 $ -- -- --
-- -- -- -- -- 86,079 -- -- -- 6,836 29,408 -- 705,657

3,278,866 $ -- -- --
-- -- -- -- 5,742,113 2,720,108 -- -- -- -- 1,092,373 -- 12,833,460

8,923,721 15,358,356
-- --
-- -- -- 3,656,659 -- -- -- -- 9,784,695 -- 258,447 -- 37,981,878

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

-- -- -- -- -- -- -- -- -- -- -- -- -- 593,509 593,509 15,021,160

-- -- -- 6,823,492 -- 27,811,871 -- -- 114,101,675 4,904,918 -- -- 218,633,824 15,271,982 387,547,762 412,277,586

-- -- -- -- -- 10,312,421 -- -- 67,595,383 -- -- -- -- 7,880,627 85,788,431 137,365,390

-- -- -- -- -- 290,674 -- -- -- -- -- -- -- 309,230 599,904 1,305,561

-- -- -- 14,053,703 -- -- -- -- -- 728,445 -- -- 108,299,697 170,382,079 293,463,924 306,297,384

5,415,000 -- -- -- -- -- -- --
202,569,553 3,293,750
117,341,744 -- --
59,323,472 387,943,519 425,925,397

DEFERRED OUTFLOWS OF RESOURCES

$

--$

--$

7,937,156 $

--$

15,109,831 $

--

190 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2019

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.

$

430,932 $

4,206,947 $

1,769,519 $

26,845

--

--

8,080

--

--

--

--

--

--

--

--

554,826

--

18,201,530

--

--

--

--

--

--

1,270,632

1,270,067

--

--

--

--

--

2,344,706

--

--

1,024,196

--

--

--

--

18,838

--

--

--

4,110,000

2,310,000

--

--

--

--

--

--

--

--

--

--

--

--

375,255

--

--

2,685,408

12,955,916

22,281,049

235,667 $ --
85,044 -- --
38,474 -- --
235,785 -- -- -- -- -- -- -- -- -- --
189,309 784,279

3,939,769 $ -- -- -- --
2,086,132 -- --
556,166 11,604,705
-- -- 948,461 330,603 31,190,000 -- -- -- 1,000,000 -- 51,655,836

7,816,725 -- -- --
5,005,761 15,771 -- --
1,200,050 -- -- -- -- --
11,818,000 -- -- -- -- --
25,856,307

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

-- -- -- -- -- -- 16,345 -- -- -- -- -- -- -- -- 16,345 2,701,753

-- -- -- -- -- -- -- 125,267,927 1,239,720 -- -- -- -- -- -- 130,917,946 143,873,862

-- -- -- -- -- 13,188,112 -- 78,352,524 -- -- -- -- -- -- -- 78,352,524 100,633,573

-- -- -- 8,398,867 -- -- -- -- -- -- -- -- -- -- -- -- 784,279

114,005,371 5,629 -- --
9,363,000 70,347,000
836,364 183,068,586
-- -- -- 580,624 -- -- -- 197,673,686 249,329,522

-- -- -- -- -- -- -- 351,286,357 -- -- -- -- -- -- -- 359,685,224 385,541,531

DEFERRED INFLOWS OF RESOURCES

--

--

16,363,042

--

--

--

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

558,326

15,271,982

--

140,353,645

3,011,977

91,393,983

8,749,104

21,384,114

$

12,319,407 $

268,403,724 $

7,880,627
1,550,000 7,315,223 11,560,081 28,305,931 $

309,230
-- -- 212,052 521,282 $

(44,070,216)
45,427,130 77,320,731 (6,599,952) 72,077,693 $

19,076,356
-- 9,692,846 11,614,664 40,383,866

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2019 Annual Financial Report 191

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2019

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,
Inc.

Gordon State College Foundation, Inc. & Subsidiaries

IgniteHQ

$

6,894,000 $

14,343,000

--

--

-- -- -- 3,659,415 24,234,000 12,646,243 700,161 -- 9,809,177 -- -- 1,504,237 73,790,233

2,407,076 $ -- -- --
-- -- -- -- 10,000 -- -- -- -- -- 6,645 -- 2,423,721

111,814,086 $ -- -- --
-- -- -- -- -- 156,789,431 -- -- 372,456 -- 128,542 -- 269,104,515

634,806 $ -- -- --
50,965 -- --
3,313 --
1,176,707 -- -- -- --
28,237 --
1,894,028

148,404 $ 114,157
-- --
-- -- -- -- -- -- -- -- 295,649 -- -- -- 558,210

369,437 -- -- --
-- -- -- -- -- -- -- -- -- -- -- -- 369,437

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

-- -- -- 69,989,000 14,107,000 401,494,000 -- -- 116,872,823 23,518,944 -- -- 1,470,060,000 147,397,000 2,243,438,767 2,317,229,000

-- -- -- -- 31,367 -- -- -- -- -- -- -- -- 149,625 180,992 2,604,713

-- -- -- -- -- 63 -- -- 3,469,912 -- -- -- -- 807,914 4,277,889 273,382,404

-- -- -- -- -- -- -- -- -- 37,161 -- -- -- 9,267,479 9,304,640 11,198,668

-- -- -- -- -- 10,955,752 -- -- 12,366,289 -- 1,147,225 -- -- -- 24,469,266 25,027,476

-- -- -- -- -- -- -- -- -- -- -- -- -- 256,694 256,694 626,131

DEFERRED OUTFLOWS OF RESOURCES

$

--$

--$

--$

--$

--$

--

192 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2019

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

$

5,328,962 $

--

--

--

--

10,002,038

--

--

18,164,000

242,000

--

--

55,613,000

--

12,065,000

1,504,237

--

--

--

444,000

103,363,237

292,043 $ -- -- -- -- -- -- --
2,004,450 -- -- -- -- -- -- -- -- -- -- --
2,296,493

--$ -- -- -- -- 93,378,155 -- -- 62,236,768 -- 40,893,012 -- -- 405,778 -- -- -- -- -- -- 196,913,713

107,388 $ -- -- -- --
2,405,353 -- --
552,961 -- -- -- -- -- -- -- -- -- -- --
3,065,702

327,944 $ -- -- -- -- -- -- -- -- -- -- -- -- --
275,000 -- -- -- -- --
602,944

2,250 -- -- -- -- -- -- -- -- -- --
139,348 -- -- -- -- -- -- -- --
141,598

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

-- -- -- -- -- -- -- 222,659,000 15,522,763 -- -- -- -- -- -- 431,902,763 535,266,000

265,000 -- -- --
273,082 -- -- -- -- -- -- -- --
38,754 --
38,754 2,335,247

-- -- -- -- -- -- 3,436,592 -- -- -- -- -- -- -- -- 3,436,592 200,350,305

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 538,082 3,603,784

-- -- -- -- -- -- -- 11,137,278 -- -- -- -- -- -- -- 11,137,278 11,740,222

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 141,598

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

--

--

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

(12,793,068)

1,396,470,000

192,397,000

205,889,068

$

1,781,963,000 $

149,625
-- 14,131 105,710 269,466 $

807,914
-- -- 72,224,185 73,032,099 $

9,267,479
-- -- (1,672,595) 7,594,884 $

--
3,321,291 722,268
9,243,695 13,287,254 $

256,694
-- -- 227,839 484,533

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2019 Annual Financial Report 193

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2019

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

$

132,903 $

324,788 $

4,673,874 $

20,976,524 $

3,390,057 $

1,071,411

--

--

--

--

--

89,941

--

--

--

11,808,911

1,757,435

--

--

--

--

--

--

--

-- -- -- -- -- -- -- -- -- -- 608 -- 133,511

-- -- -- -- -- -- -- -- -- -- -- -- 324,788

-- -- -- 18,096 1,000,000 222,332 -- -- -- 190,833 24,395 1,980 6,131,510

-- -- -- 136,670 3,795,285 672,505 -- -- 8,443,863 -- 71,873 -- 45,905,631

1,429,412 -- --
128,759 -- -- -- -- -- --
2,423 --
6,708,086

-- -- -- 57,711 517,721 -- -- -- -- -- -- -- 1,736,784

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

-- --
-- -- -- 2,484,132 -- -- -- -- -- -- -- -- 2,484,132 2,617,643

-- --
-- -- -- 23,847 -- -- -- -- -- -- 56,206 -- 80,053 404,841

-- --
-- -- -- -- -- -- -- -- -- -- -- 1,728,704 1,728,704 7,860,214

-- --
-- 6,532,146
-- 16,552,416
-- -- 211,334,317 -- 52,811,934 -- 37,975,707 82,805,582 408,012,102 453,917,733

-- --
-- -- -- -- -- -- -- -- -- -- -- -- -- 6,708,086

-- --
-- 1,027,500
16,588 35,619,861
-- -- -- 240,966 -- -- 221,076,112 14,719,740 272,700,767 274,437,551

DEFERRED OUTFLOWS OF RESOURCES

$

--$

--$

--$

--$

--$

--

194 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2019

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

$

4,062 $

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

4,062

769 $ -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
769

211,059 $ -- -- -- --
99,604 -- --
602,656 -- -- --
429,608 -- -- -- -- -- -- --
1,342,927

8,239,582 $ -- -- -- --
1,324,742 -- --
779,628 29,678 80,051 -- -- --
12,575,000 550 -- -- -- --
23,029,231

--$ -- -- -- -- 3,018,798 -- -- 1,211,498 -- -- -- -- -- -- -- -- -- -- -- 4,230,296

35,246 -- -- -- --
80,312 -- -- -- -- --
20,994 -- -- -- -- -- -- -- --
136,552

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

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 4,062

-- -- -- -- 10,000 -- -- -- -- -- -- -- -- -- -- -- 769

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 491,668 1,834,595

-- -- -- -- -- -- -- 347,349,955 2,265 -- -- -- -- -- -- 347,352,220 370,381,451

-- -- -- -- -- 9,472,672 -- -- -- -- -- -- -- -- -- -- 4,230,296

-- -- -- -- -- -- -- -- 818,690 -- -- -- -- -- -- 10,291,362 10,427,914

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

--

--

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

--

2,480,797

--

132,784

$

2,613,581 $

--
56,206 --
347,866 404,072 $

1,299,096
-- 3,035,858 1,690,665 6,025,619 $

(34,864,945)
37,981,174 29,381,899 51,038,154 83,536,282 $

--
-- 509,591 1,968,199 2,477,790 $

5,247,068
132,872,471 90,841,621 35,048,477
264,009,637

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2019 Annual Financial Report 195

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2019

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.

$

577,527 $

1,259,396 $

1,117,560

--

--

--

--

--

830,201 $ --
223,244 --

-- -- -- -- 1,111,236 -- -- -- -- -- 40,370 -- 2,846,693

-- -- -- -- -- 119,743 -- -- 787,064 -- 7,275 -- 2,173,478

-- -- -- -- -- 235,779 -- -- 2,393,908 -- 2,746 -- 3,685,878

524,501 $ -- -- --
-- -- -- -- -- 14,920 -- -- -- -- -- -- 539,421

717,119 $ -- -- --
-- -- -- -- -- -- -- -- -- -- 500 -- 717,619

57,831,568 -- -- --
-- -- -- 1,375,675 -- 2,101,222 -- -- -- -- 872,644 -- 62,181,109

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

-- -- -- 150,781 -- 11,474,967 -- -- -- 75,288 -- -- -- 205,300 11,906,336 14,753,029

-- -- -- -- -- -- -- -- 31,675,308 -- -- 3,543,390 -- 1,014,811 36,233,509 38,406,987

-- -- -- -- -- -- -- -- 75,002,304 -- 5,602,474 -- -- 150,000 80,754,778 84,440,656

-- -- -- -- -- 4,598,750 -- -- -- -- -- -- -- 330,395 4,929,145 5,468,566

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 717,619

-- -- -- -- -- 51,808,178 -- -- -- 305,118 -- -- -- 323,545,121 375,658,417 437,839,526

DEFERRED OUTFLOWS OF RESOURCES

$

--$

--$

--$

--$

--$

13,316,338

196 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2019

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.

$

493,635 $

723,082 $

258,700 $

122,280 $

312,578 $

328,078

--

--

--

--

--

5,783,920

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

26,082

--

--

317,555

5,997,929

--

--

--

--

--

--

--

--

--

--

--

--

--

--

204,588

--

--

37,373,561

--

--

--

--

--

--

316,306

--

--

--

--

--

--

--

9,088,095

--

1,815

--

--

--

359,719

--

--

--

--

--

--

--

--

--

--

800,000

2,365,000

--

--

2,885,000

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

809,941

1,549,164

12,276,102

122,280

631,948

52,368,488

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

-- -- -- -- -- 991,986 -- -- -- -- -- -- -- -- -- 10,000 819,941

-- -- -- -- -- -- -- 31,165,435 -- -- -- -- -- -- -- 31,165,435 32,714,599

-- -- -- -- -- -- -- 68,777,178 -- -- -- -- -- -- -- 69,769,164 82,045,266

-- -- -- -- 305,118 15,836,592 -- -- -- -- -- -- -- -- -- -- 122,280

-- 1,666,423
-- -- -- 14,496,642 -- -- -- -- -- -- -- -- -- -- 631,948

-- -- -- 1,824,121 -- 8,516,222 -- 88,876,151 -- 3,737,734 -- -- -- -- -- 108,755,595 161,124,083

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

--

--

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

205,300

9,403,701

4,173,063

151,024

$

13,933,088 $

1,014,811
-- -- 4,677,577 5,692,388 $

150,000
110,000 186,610 1,948,780 2,395,390 $

330,395
4,599,116 --
416,775 5,346,286 $

--
-- -- 85,671 85,671 $

225,525,982
-- -- 64,505,799 290,031,781

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2019 Annual Financial Report 197

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2019

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.

$

2,602,149 $

13,512,095

24,908,997

129,344,169

28,640,409 $ -- -- --

-- -- -- 155,446 31,069,338 2,903,823 -- -- -- -- 288,790 -- 204,784,807

-- -- -- 756,238 -- 55,728,822 -- -- 8,533,296 -- 230,885 28,325,675 122,215,325

1,680,425 $ -- -- --
-- -- -- -- 481,015 2,076 -- -- -- -- -- -- 2,163,516

1,509,047 $ 4,658,278
-- --
-- -- -- -- -- 391 -- -- 4,160,305 -- 142,017 -- 10,470,038

193,630 $ 270,968
-- --
-- -- -- -- 79,476 -- -- -- -- -- -- -- 544,074

(355,697) 7,000,221
-- --
-- -- -- -- 2,887,400 805 -- -- 1,983,247 -- 2,818 -- 11,518,794

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

-- --
-- 48,261,818
-- 187,306,840
-- -- -- 2,680,881 -- -- 952,031,687 35,913,480 1,226,194,706 1,430,979,513

-- --
-- -- -- 55,015,982 -- -- 223,082,949 962,074 2,821,316 -- 5,765,025 20,046,315 307,693,661 429,908,986

-- --
-- 260,554
-- 71,186,509
-- -- -- 65,146 -- -- -- 67,277 71,579,486 73,743,002

-- --
-- -- -- -- -- -- 123,550,026 175,000 5,912,403 -- -- 5,047,332 134,684,761 145,154,799

-- --
-- 79,394
-- 783,883
-- -- -- 94 -- -- -- -- 863,371 1,407,445

-- --
-- 4,406,044
-- 35,900,543
-- -- 36,796,860 936,400 3,526,761 -- -- 287,214 81,853,822 93,372,616

DEFERRED OUTFLOWS OF RESOURCES

$

--$

14,156,893 $

--$

--$

--$

--

198 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2019

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.

$

383,591 $

2,013,499 $

--

--

--

--

--

--

--

--

7,228,233

58,189,457

--

--

--

--

1,242,449

2,084,538

--

28,325,675

64,065,725

--

--

--

514,880

--

--

--

--

9,485,000

801,285

--

--

--

--

--

--

--

--

--

74,236,163

100,098,169

14,531 $ -- -- -- --
151,611 -- -- -- -- -- -- -- -- -- -- -- -- -- --
166,142

2,559,333 $ -- -- -- -- -- -- --
407,215 -- -- --
2,001,000 --
3,091,368 -- -- -- -- --
8,058,916

4,700 $ -- -- -- -- -- -- --
85,492 -- -- -- -- -- -- -- -- -- -- --
90,192

578,738 -- -- -- --
40,595 -- --
480 --
783,883 -- -- -- -- -- -- -- -- --
1,403,696

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

-- -- -- -- -- -- -- -- 8,008,355 2,325,789 -- -- -- -- -- 26,497,209 100,733,372

-- -- -- -- -- 810,000 -- 234,430,567 -- -- -- -- -- -- -- 244,770,910 344,869,079

-- -- -- -- -- -- -- -- 7,978 -- -- -- -- -- -- 7,978 174,120

-- -- -- -- -- -- -- 126,029,323 -- -- -- -- -- -- -- 126,839,323 134,898,239

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 90,192

-- -- -- -- -- 37,351,481 280,889 38,879,769 90,441 -- -- -- -- -- -- 39,251,099 40,654,795

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

--

--

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

20,901,958

643,785,937

542,264,019

123,294,227

$

1,330,246,141 $

11,530,093
-- 2,821,234 84,845,473 99,196,800 $

67,277
30,473,913 35,722,774
7,304,918 73,568,882 $

5,047,332
-- -- 5,209,228 10,256,560 $

--
-- 1,177,509
139,744 1,317,253 $

287,214
21,966,723 21,410,863
9,053,021 52,717,821

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2019 Annual Financial Report 199

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2019

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

$

1,116,937 $

468,042 $

2,606,387 $

3,785,536 $

5,139,624

16,917,081

--

--

725,430

--

--

--

--

--

--

--

-- -- -- -- -- -- -- -- 2,887,974 -- -- -- 9,869,965

-- -- -- -- 123,676 -- -- -- 12,796,529 -- 22,120 -- 30,327,448

-- -- -- -- -- 156,762 -- -- 5,248,287 -- 14,880 -- 8,026,316

-- -- -- -- 442,659 -- -- -- -- -- 17,738 -- 4,245,933

31,744 $ -- -- --
-- -- -- -- -- -- -- -- -- -- -- -- 31,744

446,438,155 122,286,810 118,680,283 154,858,150
6,947,257 190,191 --
24,757,559 104,001,482 416,451,267
726,632 249,362 103,567,925 20,863,400 39,976,509 30,523,037 1,590,518,019

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

-- --
-- -- -- 214,820 -- -- 111,292,376 -- 3,594,696 -- -- -- 115,101,892 124,971,857

-- --
-- 1,016,666
-- 5,461,737
-- -- 382,752,777 -- 31,227,850 -- -- 2,097,069 422,556,099 452,883,547

-- --
-- -- -- -- -- -- 160,371,065 -- -- -- 11,496,632 227,338 172,095,035 180,121,351

-- --
-- 421,404
-- 41,711,728
-- -- -- 873,767 -- -- -- 7,075,887 50,082,786 54,328,719

-- --
-- -- -- 6,285,257 -- -- -- -- -- -- -- 269,567 6,554,824 6,586,568

6,927,295 --
-- 178,931,822
51,901,822 1,397,336,157
-- -- 2,580,219,618 49,308,823 282,029,694 3,543,390 3,108,681,141 1,414,211,428 9,073,091,190 10,663,609,209

DEFERRED OUTFLOWS OF RESOURCES

$

--$

--$

--$

--$

--$

50,520,218

200 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2019

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

$

1,043,795 $

2,892,161 $

2,421,583 $

97,809 $

--

--

--

--

--

--

--

--

--

451,448

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

261,963

--

--

--

--

--

--

--

103,454

--

--

--

300,360

--

37,241,590

--

--

--

--

--

--

3,225,000

9,950,000

4,205,000

375,202

--

--

--

51,576

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

4,268,795

50,535,199

6,626,583

1,190,364

5,650 $ -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
5,650

151,651,554 15,136,689 93,124 460,198 5,005,761
327,166,138 248,609 --
136,705,295 40,386,356
112,925,917 20,610,751
103,122,884 8,983,816
140,007,279 2,564,554 -- -- 1,000,000
21,530,375 1,087,599,300

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

-- -- -- -- -- -- -- 114,947,700 -- -- -- -- -- -- -- 114,947,700 119,216,495

-- -- -- -- -- 1,029,598 -- 350,691,146 -- -- -- -- -- -- -- 388,042,627 438,577,826

-- -- -- -- -- -- -- 158,332,329 -- 4,854,779 -- -- -- -- -- 163,187,108 169,813,691

130,971,547 1,672,052 --
22,360,867 32,399,797 207,092,918
-- 3,038,508
134,132 -- -- -- -- -- --
4,202,238 5,392,602

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 5,650

130,971,547 1,672,052 --
22,360,867 32,399,797 207,092,918 74,846,963 3,499,056,046 27,801,534 37,493,371
-- 580,624
-- 6,797,377
-- 4,041,073,096 5,128,672,396

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

--

16,363,042

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

--

--

227,338

2,523,634

269,567

374,131,734

--

471,975

--

46,598,706

--

2,709,940,839

--

1,352,979

--

--

--

1,367,048,597

5,755,362

12,480,767

10,080,322

(186,223)

6,311,351

1,117,972,819

$

5,755,362 $

14,305,721 $

10,307,660 $

48,936,117 $

6,580,918 $

5,569,093,989

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2019 Annual Financial Report 201

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) FOR FISCAL YEAR ENDED JUNE 30, 2019

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Patient 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 Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses
Operating Income (Loss)
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, Restated
Net Position-End of Year

Abraham Baldwin Agricultural College Foundation, Inc. &
Subsidiaries

Albany State University
Foundation, Inc.

Armstrong State University
Foundation, Inc.

Atlanta Metropolitan State College
Projects Foundation, Inc.

Atlanta Metropolitan State College
Foundation, Inc.

$

--$

--

--

236,673

--$ -- -- --

--$ -- -- --

229,037 -- -- -- --
2,672,487 700,103 49,029
3,887,329

3,881,256 -- -- -- --
1,313,581 7,069
177,759
5,379,665

-- -- -- -- -- 1,505,113 -- --
1,505,113

--$ -- -- --
-- -- -- -- -- 801,024 -- --
801,024

-- -- -- --
-- -- -- -- -- 469,025 -- --
469,025

335,385 -- 28,020
260,315 32,493
717,591 15,901
1,006,884 99,166
2,495,755
1,391,574

456,883 -- -- --
17,478 382,454
-- 1,342,612
596
2,200,023
3,179,642

398,382 -- -- --
2,373 410,928
-- 170,032
--
981,715
523,398

---- -- -- -- -- -- 28,031 432,176
460,207
340,817

-- -- -- -- 101,530 -- 117,172 --
218,702
250,323

--
-- -- -- -- 438,482 (81,961) -- 356,521
1,748,095

--
-- -- -- -- 413,644 (3,143,639) (2,915,938) (5,645,933)
(2,466,291)

--
-- -- -- -- 1,005,145 -- -- 1,005,145
1,528,543

--
-- -- -- -- -- (443,691) -- (443,691)
(102,874)

--
-- -- -- -- 20,655 -- -- 20,655
270,978

--

--

--

--

--

--

--

--

--

365,834

141,437

--

--

--

--

365,834

141,437

--

2,113,929

(2,324,854)

1,528,543

30,115,074

10,566,701

14,820,034

$

32,229,003 $

8,241,847 $

16,348,577 $

-- -- -- -- -- --
(102,874)
(704,652)
(807,526) $

-- -- -- -- -- --
270,978
474,641
745,619

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

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, 2019

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Patient 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.

$

667,250 $

--

--

60,763,027

804,178,864

1,003,935

-- -- -- -- -- --
866,613,076

--$ -- 26,536 685,198 -- 172,516
-- -- -- 2,463,215 1,748,811 --
5,096,276

49,041,572 $ --
11,293,495 -- --
904,575
-- -- -- -- -- --
61,239,642

--$ -- -- 11,742,133 -- --
-- -- -- -- -- --
11,742,133

--$ -- -- -- -- --
-- -- -- 253,828 -- --
253,828

-- -- -- -- -- 795,161
-- -- -- 1,119,735 -- 77,082
1,991,978

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

291,359,223 -- 76,950,571
156,834,367 1,341,565 1,096,824 4,389,973
356,966,988 37,115,718
926,055,229

1,171,074 -- 329,444 129,890 183,877 582,643 --
1,236,657 --
3,633,585

---- -- -- -- -- -- 60,204,418 --
60,204,418

---- -- -- -- -- -- 12,425,988 --
12,425,988

---- -- -- -- -- -- 154,068 --
154,068

162,874 -- --
120,374 825,061
-- 1,369,702
334,693
2,812,704

Operating Income (Loss)

(59,442,153)

1,462,691

1,035,224

(683,855)

99,760

(820,726)

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

31,992,211
2,955,709 3,430,939
-- -- 3,077,450 (9,556,881) (9,673,002)
22,226,426

--
-- -- -- -- 1,078,760 (853,007) --
225,753

--
-- -- -- -- 308,973 -- (2,028)
306,945

--
-- -- -- -- 1,036,119 -- --
1,036,119

--
-- -- -- -- -- 28,291 --
28,291

--
-- -- -- -- 3,403,559 (2,892,893) --
510,666

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

(37,215,727)

1,688,444

1,342,169

352,264

128,051

(310,060)

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses

--

--

--

--

--

--

--

--

--

--

--

--

998,143

--

--

--

--

--

--

293,262

--

--

--

--

--

--

--

--

--

--

998,143

293,262

--

--

--

--

Change in Net Position

(36,217,584)

1,981,706

1,342,169

352,264

128,051

(310,060)

Net Position, Beginning of Year, Restated

334,311,503

37,908,340

8,525,921

2,553,228

2,263,349

11,297,453

Net Position-End of Year

$

298,093,919 $

39,890,046 $

9,868,090 $

2,905,492 $

2,391,400 $

10,987,393

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2019 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, 2019

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Patient 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

$

--$

--

--

--

--

39,350

-- -- -- 493,465 406,211 --
939,026

--$ -- -- 19,423 -- --
-- -- -- 51,100 -- 4,075
74,598

--$ -- -- 32,800 -- --
-- -- -- 243,288 -- --
276,088

--$ -- -- 1,375,441 -- 132,424
-- -- -- 6,667,144 5,406,970 36,641
13,618,620

--$ -- -- -- -- 469
-- -- -- 40 -- --
509

-- -- -- -- -- --
-- -- -- -- -- 6,252
6,252

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

140,963 -- 6,943 --
47,878 895,949
-- 293,002
42,690
1,427,425

5,000 -- -- --
6,250 --
73,903 --
85,153

---- -- -- 8,045 106,130 -- 113,306 --
227,481

1,421,956 -- 133,169 -- 293,537
1,492,050 --
5,492,968 18,510
8,852,190

---- -- -- -- -- -- 555 --
555

-- -- -- -- -- -- 11,805 80,148
91,953

Operating Income (Loss)

(488,399)

(10,555)

48,607

4,766,430

(46)

(85,701)

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

(620,602)

17,438

377,642

--

--

--

--

--

--

--

--

--

--

--

--

--

--

2,795

(620,602)

17,438

377,642

--

--

2,795

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

(1,109,001)

6,883

426,249

4,766,430

(46)

(82,906)

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

215,907

--

1,050

1,624,704

--

--

--

--

--

--

--

--

215,907

--

1,050

1,624,704

--

--

Change in Net Position

(893,094)

6,883

427,299

6,391,134

(46)

(82,906)

Net Position, Beginning of Year, Restated

17,263,268

388,756

2,412,121

98,932,570

2,550

1,229,042

Net Position-End of Year

$

16,370,174 $

395,639 $

2,839,420 $

105,323,704 $

2,504 $

1,146,136

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, 2019

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Patient 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.

$

--$

--$

--

--

--

--

--

--

--

--

--

1,814,057

-- -- -- 1,130,286 -- (79,301)
1,050,985

-- -- -- -- -- --
1,814,057

--$ -- -- -- -- 24,000
-- -- -- 111,151 -- 18,770
153,921

--$ -- -- -- -- --
-- -- -- 216,499 -- 107,826
324,325

--$ -- -- -- -- 1,237,319
-- -- -- 1,428,906 -- --
2,666,225

-- -- -- -- -- 5,809,939
-- -- -- 97,331 -- 2,367
5,909,637

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

--

290,823 --

--

--

--

656,335

--

3,351,273

5,214

4,303,645

-- -- -- -- -- -- 33,496 --
33,496

---- -- -- -- 63,093 -- 91,405 4,469
158,967

---- -- -- 4,456 308,466 4,936 144,095 8,776
470,729

---- -- -- -- 751,275 -- 498,322 44,477
1,294,074

251,197 33,721 -- 45 -- 32,107
876,122 2,227,252
3,420,444

Operating Income (Loss)

(3,252,660)

1,780,561

(5,046)

(146,404)

1,372,151

2,489,193

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

--
-- -- -- -- (854,439) (53,080) --
(907,519)

--
-- -- -- -- 35,448 (1,626,758) --
(1,591,310)

--
-- -- -- -- 223,544 -- --
223,544

--
-- -- -- -- 55,991 -- --
55,991

--
-- -- -- -- (312,308) (720,512) --
(1,032,820)

--
-- -- -- -- 284,313 (2,209,517) (128,771)
(2,053,975)

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

(4,160,179)

189,251

218,498

(90,413)

339,331

435,218

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

2,611,137

--

--

1,270

689,002

--

--

--

--

--

--

--

2,611,137

--

--

1,270

689,002

--

Change in Net Position

(1,549,042)

189,251

218,498

(89,143)

1,028,333

435,218

Net Position, Beginning of Year, Restated

33,667,947

2,856,199

5,025,787

2,742,222

13,530,478

24,004,467

Net Position-End of Year

$

32,118,905 $

3,045,450 $

5,244,285 $

2,653,079 $

14,558,811 $

24,439,685

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2019 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, 2019

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Patient 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.

$

--$

--

27,576

245,288

--

13,200,977

-- -- -- 232,200 -- 810,140
14,516,181

--$ -- -- -- -- --
-- -- -- 159,487 -- 124,275
283,762

--$ -- -- -- -- 4,793,939
-- -- -- 2,030,399 892,193 370,921
8,087,452

--$ -- -- 40,893 -- 8,641,953
-- -- -- 585,392 -- --
9,268,238

--$ -- 573,543 403,278 -- 12,300
-- -- -- 9,085,214 145,955 --
10,220,290

-- -- -- 22,140 -- 1,024,821
-- -- -- 335,741 118,958 --
1,501,660

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

--

384,665 --

--

--

--

--

37,418

6,650,904

2,618,182

9,691,169

99,300 -- --
646 266,864
-- 166,546
--
533,356

498,183 -- -- --
101,644 827,873
-- 2,748,323
1,074
4,177,097

---- -- 17,683 142,367 264,900 -- 1,518,061 457
1,943,468

---- -- 875,551 162,825 1,025,198 -- 7,941,531 --
10,005,105

72,849 -- -- --
101,878 --
201,626 155
376,508

Operating Income (Loss)

4,825,012

(249,594)

3,910,355

7,324,770

215,185

1,125,152

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

--
-- -- -- -- 260,379 (3,197,663) 27,455,348
24,518,064

--
-- -- -- -- 239,488 -- --
239,488

--
-- -- -- -- (500,333) (3,967,057) (4,200)
(4,471,590)

--
-- -- -- -- 470,687 (5,903,990) --
(5,433,303)

--
-- -- -- -- 395,465 -- --
395,465

--
-- -- -- -- (28,046) (828,088) --
(856,134)

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

29,343,076

(10,106)

(561,235)

1,891,467

610,650

269,018

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses

--

--

--

--

--

--

--

--

--

--

--

--

--

(146,254)

1,516,507

1,412,040

--

--

--

--

--

(146,254)

1,516,507

1,412,040

-- -- -- 167,785 --
167,785

-- -- -- 5,095 --
5,095

Change in Net Position

29,343,076

(156,360)

955,272

3,303,507

778,435

274,113

Net Position, Beginning of Year, Restated

29,247,662

9,244,467

34,327,313

13,875,463

21,042,143

4,180,345

Net Position-End of Year

$

58,590,738 $

9,088,107 $

35,282,585 $

17,178,970 $

21,820,578 $

4,454,458

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, 2019

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Patient 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.

$

--$

--

--

--

--

1,325,843

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

--$ -- -- -- -- 10,907,866

5,229,422 $ 488,614 775,893
5,662,373 -- --

--$ -- -- 277,859 -- --

-- -- -- 2,796,140 45,079 333,413
4,500,475

-- -- -- 7,107,594 1,801,961 626,480
9,536,035

-- -- -- -- -- 1,726,951
12,634,817

-- -- -- -- -- 3,874
12,160,176

-- -- -- 1,664,843 -- 207,730
2,150,432

-- -- -- 494,730 -- --
-- -- -- 142,093 -- 81,664
718,487

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

--

909,853 --

3,786,928

--

25,118

343,646

1,027,297

--

527,633

1,003,000

2,395,260

--

--

2,235,656

1,396,824

340,257

38,971

4,832,412

9,198,031

---- -- 323,230 -- -- -- 2,309,799 --
2,633,029

---- -- 113,599 1,125 -- -- 11,978,843 --
12,093,567

198,640 -- 26,640
858,444 78,053
972,213 2,641
1,646,484 828
3,783,943

139,226 -- --
25,490 44,727
-- 482,406
7,763
699,612

Operating Income (Loss)

(331,937)

338,004

10,001,788

66,609

(1,633,511)

18,875

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

--
-- -- -- -- 59,063 (835,070) --
(776,007)

--
-- -- -- -- 453,269 (2,066) --
451,203

--
-- -- -- -- 618,419 (8,398,868) --
(7,780,449)

--
-- -- -- -- 3,765 -- --
3,765

--
-- -- -- -- 2,499,410 -- --
2,499,410

--
-- -- -- -- 63,105 -- --
63,105

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

(1,107,944)

789,207

2,221,339

70,374

865,899

81,980

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

79,550

6,378,704

--

--

369,995

--

--

--

--

--

--

--

79,550

6,378,704

--

--

369,995

--

Change in Net Position

(1,028,394)

7,167,911

2,221,339

70,374

1,235,894

81,980

Net Position, Beginning of Year, Restated

14,532,856

67,972,886

30,610,426

3,162,174

37,322,329

1,913,167

Net Position-End of Year

$

13,504,462 $

75,140,797 $

32,831,765 $

3,232,548 $

38,558,223 $

1,995,147

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2019 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, 2019

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Patient 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.

$

--$

--$

72,228,675 $

--

--

1,451,137

--

--

18,144,652

24,607,707

--

--

--

--

--

974,893

18,001,804

3,134,301

-- -- -- 6,713,238 -- 3,260,408
35,556,246

-- -- -- 20,275,927 6,380,200 3,103,029
47,760,960

-- -- -- -- -- --
94,958,765

--$ -- -- 87,751 -- 229,039
-- -- -- 5,960,810 -- 567,028
6,844,628

--$ -- -- 56,398,194 -- 9,280,181
-- -- -- 3,528,289 -- --
69,206,664

-- -- 571,661 594,896 -- 14,030,980
-- -- -- -- -- --
15,197,537

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

--

8,928,818 --

2,436,678

2,608,630

--

--

--

2,549,098

1,413,133

7,923,239

7,994,573

1,783,820

--

14,521,134

40,503,112

91,622

647,101

38,406,361

52,994,597

---- -- -- 74,130 -- 6,651 91,833,484 707,419
92,621,684

3,882,351 -- 784,386 -- 241,806 3,013 --
1,996,257 72,079
6,979,892

---- -- -- 6,541,114 12,213,964 -- 58,043,026 7,709,956
84,508,060

-- -- -- -- -- 193,750 2,755,877 --
2,949,627

Operating Income (Loss)

(2,850,115)

(5,233,637)

2,337,081

(135,264)

(15,301,396)

12,247,910

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

--
-- -- -- -- 41,682 -- --
41,682

--
-- -- -- -- 6,948,382 (3,770,674) --
3,177,708

--
-- -- -- 750,000 748,849 (2,687,677) 732,244
(456,584)

--
-- -- -- -- 12,901 -- --
12,901

--
-- -- -- 907,869 7,264,560 (12,735,466) --
(4,563,037)

--
-- -- -- -- 600,851 (11,832,439) (18,211)
(11,249,799)

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

(2,808,433)

(2,055,929)

1,880,497

(122,363)

(19,864,433)

998,111

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

17,468,594

--

--

--

--

--

2,335,080

--

--

--

--

--

--

--

--

--

--

--

19,803,674

--

Change in Net Position

(2,808,433)

(2,055,929)

1,880,497

(122,363)

(60,759)

998,111

Net Position, Beginning of Year, Restated

15,127,840

270,459,653

26,425,434

643,645

72,138,452

39,385,755

Net Position-End of Year

$

12,319,407 $

268,403,724 $

28,305,931 $

521,282 $

72,077,693 $

40,383,866

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, 2019

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Patient 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,
Inc.

Gordon State College Foundation, Inc. & Subsidiaries

$

--$

--

--

60,000

--

30,360,000

-- -- -- 56,873,000 58,329,751 --
145,622,751

1,218,097 $ -- -- -- -- --
-- -- -- 691,900 -- 649
1,910,646

726,175,147 $ 12,748,514 93,274,355 -- -- 14,003,106
-- -- -- -- -- --
846,201,122

87,679 $ -- --
7,111,527 -- --
-- -- -- 200,000 -- --
7,399,206

-- -- -- -- -- 1,496,266
-- -- -- 404,850 454,058 25,254
2,380,428

IgniteHQ
-- 81,226 539,372 221,390
--
-- -- -- 15,093 -- -- 857,081

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

--

2,449,000 --

706,000

101,000

79,000

--

944,000

102,127,000

3,091,000

109,497,000

489,359 --
61,950 -- --
9,800 231,368
38,282
830,759

---- -- -- 112,207 -- -- 837,655,776 232,952
838,000,935

3,491,320 -- 1,014,168
163,454 133,990
-- 238,653 3,252,089 893,385
9,187,059

128,297 -- -- -- --
231,763 --
253,363 --
613,423

288,635 56,444 -- -- -- --
1,028,958 80,243
1,454,280

Operating Income (Loss)

36,125,751

1,079,887

8,200,187

(1,787,853)

1,767,005

(597,199)

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

--
-- -- -- -- 41,738,249 (13,089,000) --
28,649,249

--
-- -- -- -- -- -- (1,156,141)
(1,156,141)

--
-- -- -- -- 552,444 -- --
552,444

--
-- -- -- -- 1,643 (1,850) (61,403)
(61,610)

--
-- -- -- -- (1,145,331) (1,221,404) (3,335,502)
(5,702,237)

-- -- -- -- -- -- -- -- (267,680)
(267,680)

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

64,775,000

(76,254)

8,752,631

(1,849,463)

(3,935,232)

(864,879)

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

23,754,000

--

--

--

155,157

--

--

--

--

--

--

--

23,754,000

--

--

--

155,157

--

Change in Net Position

88,529,000

(76,254)

8,752,631

(1,849,463)

(3,780,075)

(864,879)

Net Position, Beginning of Year, Restated

1,693,434,000

345,720

64,279,468

9,444,347

17,067,329

1,349,412

Net Position-End of Year

$

1,781,963,000 $

269,466 $

73,032,099 $

7,594,884 $

13,287,254 $

484,533

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2019 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, 2019

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Patient 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

$

--$

--$

--$

--$

4,939,207 $

--

--

--

--

--

121,274

--

--

--

1,094,896

--

2,007,693

--

--

--

--

350,540

590,893

--

--

--

--

--

--

--

--

--

--

40,762,497

88,003

18,591

-- -- -- 60,439 -- --
60,439

-- -- -- -- 4,531 67,019
71,550

-- -- 2,627,737 8,301,477 -- 1,137,489
13,161,599

-- -- -- 5,620,442 1,179,819 --
47,913,298

-- -- -- 521,580 -- 17,386
8,286,036

-- -- -- 1,034,455 6,261,026 442,972
7,757,044

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

--

----

300,220

--

--

--

--

--

--

95,476

4,000

--

--

--

112,237

--

--

869,972 -- -- --
804,714 1,716,389
-- 8,783,438
312,753

3,068,011 -- --
46,988 3,061
2,622,282 2,616,619 16,098,001 5,037,407

3,728,832 -- --
2,016,258 431,518 -- --
1,949,800 --

3,690,190 94,304 --
183,585 2,200,954
49,909 3,727,680
55,202

95,476

416,457

12,487,266

29,492,369

8,126,408

10,001,824

Operating Income (Loss)

(35,037)

(344,907)

674,333

18,420,929

159,628

(2,244,780)

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

--
-- -- -- -- 136,116 -- --
136,116

--
-- -- -- 332,630 5,878 -- --
338,508

--
-- -- -- -- -- (26,431) --
(26,431)

--
-- -- -- -- 2,928,319 (12,889,878) (1,031,791)
(10,993,350)

--
-- -- -- -- 126,010 -- --
126,010

--
-- -- -- -- 5,718,559 -- --
5,718,559

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

101,079

(6,399)

647,902

7,427,579

285,638

3,473,779

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

33,769

--

--

2,199,101

--

2,882,525

--

--

--

--

--

--

Total Other Revenues, Expenses, Gains or Losses

33,769

--

--

2,199,101

--

2,882,525

Change in Net Position

134,848

(6,399)

647,902

9,626,680

285,638

6,356,304

Net Position, Beginning of Year, Restated

2,478,733

410,471

5,377,717

73,909,602

2,192,152

257,653,333

Net Position-End of Year

$

2,613,581 $

404,072 $

6,025,619 $

83,536,282 $

2,477,790 $

264,009,637

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, 2019

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Patient 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.

$

--$

--$

--$

--

--

--

--

--

--

--

--

--

--

--

--

--

1,778,078

4,890,448

-- -- -- 2,479,874 -- 138,254
2,618,128

-- -- -- -- -- --
1,778,078

-- -- -- 292,490 7,009 --
5,189,947

--$ -- -- -- -- --
-- -- -- 7,514 -- --
7,514

61,749 $ 117,158
46,907 -- -- --
-- -- -- -- -- 32,150
257,964

-- -- -- 154,272,670 -- --
-- -- -- -- -- --
154,272,670

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

---- -- -- -- 334,521 -- 1,075,890 --
1,410,411

-- -- -- -- -- -- 1,703,366 --
1,703,366

---- -- -- -- 517,850 -- 391,246 --
909,096

---- -- -- -- 227,651 -- -- --
227,651

-- -- -- -- -- -- 637,272 --
637,272

16,408,414 495,616 --
10,524,203 -- --
110,784,142 11,294,829
149,507,204

Operating Income (Loss)

1,207,717

74,712

4,280,851

(220,137)

(379,308)

4,765,466

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

--
-- -- -- -- (610,715) -- --
(610,715)

--
-- -- -- -- 55,150 (1,132,057) --
(1,076,907)

--
-- -- -- -- 1,930 (6,117,316) --
(6,115,386)

--
-- -- -- -- 106,531 90,630 --
197,161

--
-- -- -- -- -- -- (254,238)
(254,238)

--
-- -- -- 16,010,600 1,437,603 (3,379,796) 1,109,233
15,177,640

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

597,002

(1,002,195)

(1,834,535)

(22,976)

(633,546)

19,943,106

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

147,688

--

--

223,425

--

--

--

--

--

--

--

--

147,688

--

--

223,425

--

--

Change in Net Position

744,690

(1,002,195)

(1,834,535)

200,449

(633,546)

19,943,106

Net Position, Beginning of Year, Restated

13,188,398

6,694,583

4,229,925

5,145,837

719,217

270,088,675

Net Position-End of Year

$

13,933,088 $

5,692,388 $

2,395,390 $

5,346,286 $

85,671 $

290,031,781

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2019 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, 2019

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Patient 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.

$

--$

124,848,247 $

--

6,169,886

--

52,399,556

11,018,437

--

--

--

1,117,504

27,785,611

-- -- -- 72,700,642 33,155,856 --
117,992,439

-- -- -- -- -- --
211,203,300

--$ -- -- -- -- 58,000
-- -- -- 3,615,785 2,442,057 --
6,115,842

--$ -- -- -- -- 6,553,011
-- -- -- 115,275 -- --
6,668,286

--$ -- -- -- -- --
-- -- 257,057 905,857 -- 84,979
1,247,893

-- -- -- 100,000 -- 2,783,110
-- -- -- 5,772,178 788,885 47
9,444,220

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

4,024,499 -- -- --
281,104 77,000 --
82,321,284 1,234,672
87,938,559

-- -- -- -- -- -- 197,860,655 114,324
197,974,979

541,260 -- -- --
444,730 2,683,631
-- 1,072,668
27,013
4,769,302

112,148 -- -- -- -- -- --
723,517 145,467
981,132

300,957 -- --
1,774 153,500
-- 915,747
--
1,371,978

1,826,331 -- --
84,082 1,390,877
-- 5,377,310
65,838
8,744,438

Operating Income (Loss)

30,053,880

13,228,321

1,346,540

5,687,154

(124,085)

699,782

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

--
-- -- -- -- 18,230,068 (1,055,888) 733,491
17,907,671

--
-- -- -- -- 2,874,824 (9,901,906) (18,190)
(7,045,272)

--
-- -- -- -- 2,316,525 (78,985) --
2,237,540

--
-- -- -- -- 19,300 (3,506,754) --
(3,487,454)

--
-- -- -- -- 33,034 -- --
33,034

--
-- -- -- -- 1,264,044 (1,901,929) --
(637,885)

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

47,961,551
-- -- -- 46,346,128 -- 46,346,128

6,183,049
-- -- -- -- -- --

3,584,080
-- -- -- 1,646,213 -- 1,646,213

2,199,700
-- -- -- -- -- --

(91,051)
-- -- -- -- -- --

61,897
-- -- -- 1,093,631 -- 1,093,631

Change in Net Position

94,307,679

6,183,049

5,230,293

2,199,700

(91,051)

1,155,528

Net Position, Beginning of Year, Restated

1,235,938,462

93,013,751

68,338,589

8,056,860

1,408,304

51,562,293

Net Position-End of Year

$

1,330,246,141 $

99,196,800 $

73,568,882 $

10,256,560 $

1,317,253 $

52,717,821

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, 2019

OPERATING REVENUES Grants and Contracts Federal State Other Sales and Services Patient 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

$

--$

--$

--$

--

--

--

--

75,000

--

--

546,903

--

--

--

--

6,194,639

19,652,389

6,393,317

--$ -- -- 371,211 -- 516,296

-- -- -- -- -- --
6,194,639

-- -- -- 2,204,808 308,271 --
22,787,371

-- -- -- 95,811 -- 1,030,732
7,519,860

-- -- -- 122,673 -- 20,074
1,030,254

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

984,497,045 21,177,809
180,851,135 338,333,375 804,178,864 266,053,801

--

--

--

--

--

2,884,794

--

243,690,728

--

120,584,773

883

14,614,301

883

2,976,866,625

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

---- -- -- -- -- -- 436,209 --
436,209

390,354 -- --
31,538 1,514,135
-- 1,117,347
--
3,053,374

---- -- -- -- -- -- 1,125,238 --
1,125,238

---- -- 36,035 114,844 1,144,607 283 2,929,659 213,642
4,439,070

9,000 -- -- --
50,830 --
99,178 --
159,008

359,448,050 83,293,174
163,209,707 27,141,535 58,398,747 10,326,461
2,078,723,135 75,486,758
2,856,027,567

Operating Income (Loss)

5,758,430

19,733,997

6,394,622

(3,408,816)

(158,125)

120,839,058

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

--
-- -- -- -- 210,178 (4,958,664) --
(4,748,486)

--
-- -- -- -- 198,717 (14,691,346) (6,177,358)
(20,669,987)

--
-- -- -- -- 85,895 (5,650,765) --
(5,564,870)

--
-- -- -- -- (3,245,887) (159,998) --
(3,405,885)

--
-- -- -- -- (316,918) -- --
(316,918)

31,992,211
2,955,709 3,430,939
-- 18,001,099 102,863,876 (155,386,043)
4,988,658
8,846,449

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

1,009,944

(935,990)

829,752

(6,814,701)

(475,043)

129,685,507

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses

--

--

--

--

--

--

--

47,977

--

--

--

47,977

--

--

--

--

--

--

--

5,525,634

--

--

--

5,525,634

--

--

--

--

--

18,466,737

--

102,117,353

--

--

--

120,584,090

Change in Net Position

1,009,944

(888,013)

829,752

(1,289,067)

(475,043)

250,269,597

Net Position, Beginning of Year, Restated

4,745,418

15,193,734

9,477,908

50,225,184

7,055,961

5,318,824,392

Net Position-End of Year

$

5,755,362 $

14,305,721 $

10,307,660 $

48,936,117 $

6,580,918 $

5,569,093,989

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2019 Annual Financial Report 213

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, 2019
Fiscal Year End for a few of the affiliated organizations differ from the June 30, 2019 Year End. The following organizations have a Fiscal Year End of July 31, 2018: 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, 2018: College of Coastal Georgia Foundation, Inc. Dalton State College Foundation, Inc. Global Center for Medical Innovation, Inc. & Subsidiaries 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, 2019: 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.
Atlanta Metropolitan State College Projects Foundation, Inc. reported fiscal year 2018 balances. Bainbridge State College Foundation reported fiscal year 2018 balances. Fort Valley State University Foundation, Inc. reported fiscal year 2018 balances. Southern Polytechnic Applied Research Corporation reported fiscal year 2016 balances.
214 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA BALANCE SHEET (NON-GAAP BASIS) BUDGET FUNDS JUNE 30, 2019 (Unaudited)

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Federal Financial Assistance Other Prepaid Expenditures Inventories Other Assets

$

821,005,272.73

93,315,137.00

194,405,086.50 314,207,429.13
20,457,192.18 5,848,416.41 7,339,988.55

Total Assets

$

1,456,578,522.50

LIABILITIES AND FUND EQUITY Liabilities
Accounts Payable Encumbrances Payable Salaries Payable Deferred Revenue Other Liabilities

$

128,388,196.32

364,488,059.00

22,115,550.96

252,658,644.15

9,375,184.85

Total Liabilities

777,025,635.28

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 Unreserved, Undesignated Surplus
Total Fund Balances

12,924,774.89 158,850,495.08 205,602,672.61
38,069,555.21 168,740,265.00
29,036,945.82 2,689,227.11
46,257,459.01 8,125,061.34
9,256,431.15
679,552,887.22

Total Liabilities and Fund Balances

$

1,456,578,522.50

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.

2019 Annual Financial Report 215

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. 2019

Agricultural Experiment Station State Appropriation State General Funds Other Funds
Total Agricultural Experiment Station
Athens and Tifton Veterinary Laboratories Contract Other Funds
Cooperative Extension Service State Appropriation State General Funds Other Funds
Total Cooperative Extension Service
Enterprise Innovation Institute State Appropriation State General Funds Other Funds
Total Enterprise Innovation Institute
Forestry Cooperative Extension State Appropriation State General Funds Other Funds
Total Forestry Cooperative Extension
Forestry Research State Appropriation State General Funds Other Funds
Total Forestry Research
Georgia Archives State Appropriation State General Funds Other Funds
Total Georgia Archives

Original Appropriation

Amended Appropriation

Final Budget

Funds Available Compared to Budget

Current Year

Prior Year Reserve

Revenues

Carry-Over

$

46,675,198.00 $

46,374,523.00 $

46,374,523.00 $

46,374,523.00 $

--

37,552,919.00

37,552,919.00

72,423,174.00

50,516,619.38

25,125,549.46

84,228,117.00

83,927,442.00

118,797,697.00

96,891,142.38

25,125,549.46

6,609,688.00

6,704,688.00

7,588,611.00

7,373,412.98

992,666.95

41,618,743.00 31,333,929.00
72,952,672.00

41,649,817.00 31,333,929.00
72,983,746.00

41,649,817.00 39,939,606.00
81,589,423.00

41,649,817.00 33,356,895.90
75,006,712.90

-- 6,698,062.49
6,698,062.49

19,576,909.00 10,900,000.00
30,476,909.00

19,576,909.00 14,400,000.00
33,976,909.00

19,576,909.00 19,500,000.00
39,076,909.00

19,576,909.00 15,092,904.11
34,669,813.11

-- 233,451.48
233,451.48

1,215,128.00 575,988.00
1,791,116.00

1,215,128.00 575,988.00
1,791,116.00

1,215,128.00 838,432.00
2,053,560.00

1,215,128.00 686,473.74
1,901,601.74

-- 299,671.82
299,671.82

2,959,850.00 10,250,426.00
13,210,276.00

2,959,850.00 11,219,877.00
14,179,727.00

2,959,850.00 11,958,872.00
14,918,722.00

2,959,850.00 11,256,946.08
14,216,796.08

-- 2,564,471.59
2,564,471.59

4,751,990.00 883,030.00

4,751,990.00 1,178,807.00

4,751,990.00 1,070,277.00

4,751,990.00 994,133.92

$

5,635,020.00 $

5,930,797.00 $

5,822,267.00 $

5,746,123.92 $

-- 737,846.71
737,846.71

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.

216 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. 2019

Funds Available Compared to Budget

Program Transfers

Total

Variance

or Adjustments

Funds Available

Positive (Negative)

Expenditures Compared to Budget

Current Year

Variance

Actual

Positive (Negative)

Excess (Deficiency)
of Funds Available
Over/(Under)
Expenditures

Agricultural Experiment Station State Appropriation State General Funds Other Funds

$

-- $ 46,374,523.00 $

-- $ 46,374,523.00 $

--$

--

--

75,642,168.84

3,218,994.84

47,970,101.94

24,453,072.06

27,672,066.90

Total Agricultural Experiment Station

--

122,016,691.84

3,218,994.84

94,344,624.94

24,453,072.06

27,672,066.90

Athens and Tifton Veterinary Laboratories Contract Other Funds

--

8,366,079.93

777,468.93

7,241,629.90

346,981.10

1,124,450.03

Cooperative Extension Service State Appropriation State General Funds Other Funds

--

41,649,817.00

--

40,054,958.39

-- 115,352.39

41,649,817.00 30,732,025.54

-- 9,207,580.46

-- 9,322,932.85

Total Cooperative Extension Service

--

81,704,775.39

115,352.39

72,381,842.54

9,207,580.46

9,322,932.85

Enterprise Innovation Institute State Appropriation State General Funds Other Funds

--

19,576,909.00

--

15,326,355.59

-- (4,173,644.41)

19,576,909.00 14,395,924.40

-- 5,104,075.60

-- 930,431.19

Total Enterprise Innovation Institute

--

34,903,264.59

(4,173,644.41)

33,972,833.40

5,104,075.60

930,431.19

Forestry Cooperative Extension State Appropriation State General Funds Other Funds

--

1,215,128.00

--

986,145.56

-- 147,713.56

1,215,128.00 699,691.35

-- 138,740.65

-- 286,454.21

Total Forestry Cooperative Extension

--

2,201,273.56

147,713.56

1,914,819.35

138,740.65

286,454.21

Forestry Research State Appropriation State General Funds Other Funds

--

2,959,850.00

--

13,821,417.67

-- 1,862,545.67

2,959,850.00 11,021,241.36

-- 937,630.64

-- 2,800,176.31

Total Forestry Research

--

16,781,267.67

1,862,545.67

13,981,091.36

937,630.64

2,800,176.31

Georgia Archives State Appropriation State General Funds Other Funds

--

4,751,990.00

--

1,731,980.63

-- 661,703.63

4,751,990.00 969,105.21

-- 101,171.79

-- 762,875.42

Total Georgia Archives

$

-- $ 6,483,970.63 $

661,703.63 $ 5,721,095.21 $

101,171.79 $

762,875.42

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.

2019 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. 2019

Original Appropriation

Amended Appropriation

Final Budget

Funds Available Compared to Budget

Current Year

Prior Year Reserve

Revenues

Carry-Over

Georgia Cyber Innovation and Training Center

State General Funds

$

4,407,753.00 $

4,561,387.00 $

4,561,387.00 $

4,561,387.00 $

--

Other Funds

--

--

1,050,843.00

--

--

Total Georgia Cyber Innovation and Training Center

4,407,753.00

4,561,387.00

5,612,230.00

4,561,387.00

--

Georgia Research Alliance State General Funds

5,117,588.00

5,117,588.00

5,117,588.00

5,117,588.00

--

Georgia Tech Research Institute State Appropriation State General Funds Other Funds

6,094,956.00 406,225,535.00

6,094,956.00 477,980,336.00

6,094,956.00 484,480,336.00

6,094,956.00 475,586,465.67

-- 2,295,466.78

Total Georgia Tech Research Institute

412,320,491.00

484,075,292.00

490,575,292.00

481,681,421.67

2,295,466.78

Marine Institute State Appropriation State General Funds Other Funds

1,013,238.00 486,281.00

1,013,238.00 486,281.00

1,013,238.00 580,246.00

1,013,238.00 275,112.19

-- 740,194.41

Total Marine Institute

1,499,519.00

1,499,519.00

1,593,484.00

1,288,350.19

740,194.41

Marine Resources Extension Center State Appropriation State General Funds Other Funds

1,554,929.00 1,345,529.00

1,554,929.00 1,345,529.00

1,554,929.00 1,932,529.00

1,554,929.00 1,354,114.69

-- 288,203.87

Total Marine Resources Extension Center

2,900,458.00

2,900,458.00

3,487,458.00

2,909,043.69

288,203.87

Medical College of Georgia Hospital and Clinics

State Appropriation

State General Funds

31,992,211.00

31,992,211.00

31,992,211.00

31,992,211.00

--

Tobacco Settlement Funds

--

9,991,818.00

9,991,818.00

9,991,818.00

--

Total Medical College of Georgia Hospital and Clinics

31,992,211.00

41,984,029.00

41,984,029.00

41,984,029.00

--

Public Libraries State Appropriation State General Funds Other Funds

38,710,715.00

39,077,574.00

39,077,574.00

38,847,435.00

--

4,287,961.00

4,415,201.00

4,758,231.00

4,616,069.38

--

Total Public Libraries

42,998,676.00

43,492,775.00

43,835,805.00

43,463,504.38

--

Public Service/Special Funding Initiatives State Appropriation State General Funds State Funds - Prior Year Carry-Over State General Funds - Prior Year

28,540,259.00 --

28,044,882.00 --

28,044,882.00 1,737,762.00

28,044,882.00 --

-- 1,737,762.15

Total Public Service/Special Funding Initiatives

$

28,540,259.00 $

28,044,882.00 $

29,782,644.00 $

28,044,882.00 $

1,737,762.15

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, 2019

Funds Available Compared to Budget

Program Transfers

Total

Variance

or Adjustments

Funds Available

Positive (Negative)

Expenditures Compared to Budget

Current Year

Variance

Actual

Positive (Negative)

Excess (Deficiency)
of Funds Available
Over/(Under)
Expenditures

Georgia Cyber Innovation and Training Center

State General Funds

$

Other Funds

Total Georgia Cyber Innovation and Training Center

--$ --

4,561,387.00 $ --

--$ (1,050,843.00)

4,026,346.41 $ --

535,040.59 $ 1,050,843.00

--

4,561,387.00

(1,050,843.00)

4,026,346.41

1,585,883.59

535,040.59 --
535,040.59

Georgia Research Alliance State General Funds

--

5,117,588.00

--

5,117,588.00

--

--

Georgia Tech Research Institute State Appropriation State General Funds Other Funds
Total Georgia Tech Research Institute
Marine Institute State Appropriation State General Funds Other Funds

--

6,094,956.00

--

477,881,932.45

--

483,976,888.45

-- (6,598,403.55)

6,094,956.00 474,373,373.20

(6,598,403.55)

480,468,329.20

-- 10,106,962.80
10,106,962.80

-- 3,508,559.25
3,508,559.25

--

1,013,238.00

--

1,015,306.60

-- 435,060.60

1,013,238.00 291,377.94

-- 288,868.06

-- 723,928.66

Total Marine Institute
Marine Resources Extension Center State Appropriation State General Funds Other Funds
Total Marine Resources Extension Center

--

2,028,544.60

435,060.60

1,304,615.94

288,868.06

723,928.66

--

1,554,929.00

--

1,642,318.56

--

3,197,247.56

-- (290,210.44)
(290,210.44)

1,554,929.00 1,342,869.02
2,897,798.02

-- 589,659.98
589,659.98

-- 299,449.54
299,449.54

Medical College of Georgia Hospital and Clinics State Appropriation State General Funds Tobacco Settlement Funds
Total Medical College of Georgia Hospital and Clinics

--

31,992,211.00

--

31,992,211.00

--

--

--

9,991,818.00

--

9,991,818.00

--

--

--

41,984,029.00

--

41,984,029.00

--

--

Public Libraries State Appropriation State General Funds Other Funds

--

38,847,435.00

--

4,616,069.38

(230,139.00) (142,161.62)

38,807,980.28 4,616,069.38

269,593.72 142,161.62

39,454.72 --

Total Public Libraries

--

43,463,504.38

(372,300.62)

43,424,049.66

411,755.34

39,454.72

Public Service/Special Funding Initiatives State Appropriation State General Funds State Funds - Prior Year Carry-Over State General Funds - Prior Year

--

28,044,882.00

--

1,737,762.15

--

25,296,248.33

0.15

1,065,195.07

2,748,633.67 672,566.93

2,748,633.67 672,567.08

Total Public Service/Special Funding Initiatives

$

-- $ 29,782,644.15 $

0.15 $ 26,361,443.40 $ 3,421,200.60 $ 3,421,200.75

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.

2019 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. 2019

Original Appropriation

Amended Appropriation

Final Budget

Funds Available Compared to Budget

Current Year

Prior Year Reserve

Revenues

Carry-Over

Regents Central Office State Appropriation State General Funds Other Funds

$

12,327,579.00 $

12,375,327.00 $

12,375,327.00 $

12,375,327.00 $

--

--

456,014.00

1,258,798.08

-- 4,712,648.49

Total Regents Central Office

12,327,579.00

12,375,327.00

12,831,341.00

13,634,125.08

4,712,648.49

Skidaway Institute of Oceanography State Appropriation State General Funds Other Funds

1,524,845.00 3,900,620.00

1,524,845.00 3,900,620.00

1,524,845.00 5,571,330.00

1,524,845.00 4,477,642.50

-- 1,477,905.97

Total Skidaway Institute of Oceanography

5,425,465.00

5,425,465.00

7,096,175.00

6,002,487.50

1,477,905.97

Teaching State Appropriation State General Funds Other Funds

2,153,266,402.00 4,857,951,814.00

2,155,728,837.00 5,026,603,600.00

2,155,728,837.00 5,754,333,693.00

2,155,728,837.00 5,096,877,731.99

-- 481,554,316.37

Total Teaching

7,011,218,216.00

7,182,332,437.00

7,910,062,530.00

7,252,606,568.99

481,554,316.37

Veterinary Medicine Experiment Station State Appropriation State General Funds

4,641,590.00

4,508,257.00

4,508,257.00

4,508,257.00

--

Veterinary Medicine Teaching Hospital State Appropriation State General Funds Other Funds

479,119.00 17,750,000.00

479,119.00 19,800,000.00

479,119.00 23,012,946.00

479,119.00 21,061,628.55

-- 3,212,946.34

Total Veterinary Medicine Teaching Hospital

18,229,119.00

20,279,119.00

23,492,065.00

21,540,747.55

3,212,946.34

Agencies Attached for Administrative Purposes

Payments to Georgia Military College State Appropriation State General Funds

6,580,422.00

7,079,053.00

7,079,053.00

6,995,577.00

--

Payments to Georgia Public Telecommunications Commission

State Appropriation

State General Funds

15,195,808.00

15,197,539.00

15,197,539.00

15,197,539.00

--

Budget Unit Totals

$ 7,818,298,952.00 $ 8,078,367,552.00 $ 8,872,102,679.00 $ 8,165,341,111.16 $

532,671,164.88

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. 2019

Funds Available Compared to Budget

Program Transfers

Total

Variance

or Adjustments

Funds Available

Positive (Negative)

Expenditures Compared to Budget

Current Year

Variance

Actual

Positive (Negative)

Excess (Deficiency)
of Funds Available
Over/(Under)
Expenditures

Regents Central Office State Appropriation State General Funds Other Funds

$

-- $ 12,375,327.00 $

-- $ 12,375,327.00 $

--$

--

--

5,971,446.57

5,515,432.57

355,808.00

100,206.00

5,615,638.57

Total Regents Central Office

--

18,346,773.57

5,515,432.57

12,731,135.00

100,206.00

5,615,638.57

Skidaway Institute of Oceanography State Appropriation State General Funds Other Funds

--

1,524,845.00

--

5,955,548.47

-- 384,218.47

1,524,845.00 4,392,904.24

-- 1,178,425.76

-- 1,562,644.23

Total Skidaway Institute of Oceanography

--

7,480,393.47

384,218.47

5,917,749.24

1,178,425.76

1,562,644.23

Teaching State Appropriation State General Funds Other Funds

-- 2,155,728,837.00 -- 5,578,432,048.36

-- (175,901,644.64)

2,155,393,085.97 4,995,453,192.09

335,751.03 758,880,500.91

335,751.03 582,978,856.27

Total Teaching

-- 7,734,160,885.36

(175,901,644.64) 7,150,846,278.06

759,216,251.94

583,314,607.30

Veterinary Medicine Experiment Station State Appropriation State General Funds

--

4,508,257.00

--

4,508,257.00

--

--

Veterinary Medicine Teaching Hospital State Appropriation State General Funds Other Funds

--

479,119.00

--

24,274,574.89

-- 1,261,628.89

479,119.00 20,367,406.48

-- 2,645,539.52

-- 3,907,168.41

Total Veterinary Medicine Teaching Hospital

--

24,753,693.89

1,261,628.89

20,846,525.48

2,645,539.52

3,907,168.41

Agencies Attached for Administrative Purposes

Payments to Georgia Military College State Appropriation State General Funds

--

6,995,577.00

(83,476.00)

6,995,577.00

83,476.00

--

Payments to Georgia Public Telecommunications Commission
State Appropriation
State General Funds

--

15,197,539.00

--

15,197,539.00

--

--

Budget Unit Totals

$

-- $ 8,698,012,276.04 $ (174,090,402.96) $ 8,052,185,197.11 $ 819,917,481.89 $ 645,827,078.93

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.

2019 Annual Financial Report 221

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. 2019

Beginning Fund Balance/(Deficit)
July 1

Fund Balance Carried Over from
Prior Year as Funds Available

Return of Fiscal Year 2018
Surplus

Prior Year Adjustments

Other Adjustments

Agricultural Experiment Station State Appropriation State General Funds Other Funds

$

121,331.98 $

--$

(121,331.98) $

101,139.97 $

--

25,125,549.46

(25,125,549.46)

--

261,635.19

--

Total Agricultural Experiment Station

25,246,881.44

(25,125,549.46)

(121,331.98)

362,775.16

--

Athens and Tifton Veterinary Laboratories Contract Other Funds

992,666.95

(992,666.95)

--

3,543.33

--

Cooperative Extension Service State Appropriation State General Funds Other Funds

67,183.09

--

(67,183.09)

110,725.82

--

6,698,062.49

(6,698,062.49)

--

23,668.09

--

Total Cooperative Extension Service

6,765,245.58

(6,698,062.49)

(67,183.09)

134,393.91

--

Enterprise Innovation Institute State Appropriation State General Funds Other Funds

0.28 233,451.48

-- (233,451.48)

(0.28) --

17.24 --

-- (6,767.55)

Total Enterprise Innovation Institute

233,451.76

(233,451.48)

(0.28)

17.24

(6,767.55)

Forestry Cooperative Extension State Appropriation State General Funds Other Funds

503.78

--

(503.78)

2,269.50

--

299,671.82

(299,671.82)

--

--

--

Total Forestry Cooperative Extension

300,175.60

(299,671.82)

(503.78)

2,269.50

--

Forestry Research State Appropriation State General Funds Other Funds

11,157.04

--

(11,157.04)

863.92

--

2,564,471.59

(2,564,471.59)

--

3,639.97

--

Total Forestry Research

2,575,628.63

(2,564,471.59)

(11,157.04)

4,503.89

--

Georgia Archives State Appropriation State General Funds Other Funds

5,653.71 739,261.45

-- (737,846.71)

(5,653.71) (1,414.74)

11,712.30 24,462.26

-- (19,714.05)

Total Georgia Archives

744,915.16

(737,846.71)

(7,068.45)

36,174.56

(19,714.05)

Georgia Cyber Innovation and Training Center State General Funds Other Funds

--

--

--

--

--

--

--

--

--

--

Total Georgia Cyber Innovation and Training Center

$

--$

--$

--$

--$

--

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 CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE (Unaudited) BUDGET FUND FOR THE FISCAL YEAR ENDED JUNE 30. 2019
Early Return of Fiscal Year 2019
Surplus

Excess (Deficiency)
of Funds Available
Over/(Under)
Expenditures

Ending Fund Balance/(Deficit)
June 30

Analysis of Ending Fund Balance

Reserved

Surplus/(Deficit)

Total

Agricultural Experiment Station State Appropriation State General Funds Other Funds

$

(1,927.28) $

--$

99,212.69 $

--$

99,212.69 $

99,212.69

--

27,672,066.90

27,933,702.09

27,929,823.69

3,878.40

27,933,702.09

Total Agricultural Experiment Station

(1,927.28)

27,672,066.90

28,032,914.78

27,929,823.69

103,091.09

28,032,914.78

Athens and Tifton Veterinary Laboratories Contract Other Funds

--

1,124,450.03

1,127,993.36

1,127,993.36

--

1,127,993.36

Cooperative Extension Service State Appropriation State General Funds Other Funds

--

--

110,725.82

--

--

9,322,932.85

9,346,600.94

9,344,555.67

110,725.82 2,045.27

110,725.82 9,346,600.94

Total Cooperative Extension Service

--

9,322,932.85

9,457,326.76

9,344,555.67

112,771.09

9,457,326.76

Enterprise Innovation Institute State Appropriation State General Funds Other Funds

(17.24) --

-- 930,431.19

-- 923,663.64

-- 923,663.64

--

--

--

923,663.64

Total Enterprise Innovation Institute

(17.24)

930,431.19

923,663.64

923,663.64

--

923,663.64

Forestry Cooperative Extension State Appropriation State General Funds Other Funds

--

--

2,269.50

--

--

286,454.21

286,454.21

286,454.21

2,269.50 --

2,269.50 286,454.21

Total Forestry Cooperative Extension

--

286,454.21

288,723.71

286,454.21

2,269.50

288,723.71

Forestry Research State Appropriation State General Funds Other Funds

--

--

863.92

--

--

2,800,176.31

2,803,816.28

2,803,125.15

863.92 691.13

863.92 2,803,816.28

Total Forestry Research

--

2,800,176.31

2,804,680.20

2,803,125.15

1,555.05

2,804,680.20

Georgia Archives State Appropriation State General Funds Other Funds

(11,224.56) --

-- 762,875.42

487.74 767,623.63

-- 741,847.60

487.74 25,776.03

487.74 767,623.63

Total Georgia Archives

(11,224.56)

762,875.42

768,111.37

741,847.60

26,263.77

768,111.37

Georgia Cyber Innovation and Training Center State General Funds Other Funds

--

535,040.59

535,040.59

--

--

--

--

535,040.59

535,040.59

--

--

--

Total Georgia Cyber Innovation and Training Center $

--$

535,040.59 $

535,040.59 $

--$

535,040.59 $

535,040.59

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.

2019 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. 2019

Beginning Fund Balance/(Deficit)
July 1

Fund Balance Carried Over from
Prior Year as Funds Available

Return of Fiscal Year 2018
Surplus

Prior Year Adjustments

Other Adjustments

Georgia Research Alliance State General Funds

$

--$

--$

--$

--$

--

Georgia Tech Research Institute State Appropriation State General Funds Other Funds

275.68

--

(275.68)

657.29

--

2,295,466.78

(2,295,466.78)

--

--

--

Total Georgia Tech Research Institute

2,295,742.46

(2,295,466.78)

(275.68)

657.29

--

Marine Institute State Appropriation State General Funds Other Funds

--

--

--

--

--

740,194.41

(740,194.41)

--

--

--

Total Marine Institute

740,194.41

(740,194.41)

--

--

--

Marine Resources Extension Center State Appropriation State General Funds Other Funds

5,255.66

--

(5,255.66)

2,000.90

--

288,203.87

(288,203.87)

--

876.78

--

Total Marine Resources Extension Center

293,459.53

(288,203.87)

(5,255.66)

2,877.68

--

Medical College of Georgia Hospital and Clinics State Appropriation State General Funds Tobacco Settlement Funds
Total Medical College of Georgia Hospital and Clinics

29,016.00

--

(29,016.00)

--

--

--

--

--

--

--

29,016.00

--

(29,016.00)

--

--

Public Libraries State Appropriation State General Funds Other Funds

33,029.84

--

(33,029.84)

108,743.28

--

--

--

--

--

--

Total Public Libraries

33,029.84

--

(33,029.84)

108,743.28

--

Public Service/Special Funding Initiatives State Appropriation State General Funds State Funds - Prior Year Carry-Over State General Funds - Prior Year

26,573.75

--

(26,573.75)

1,484,999.00

--

2,754,609.48

(1,737,762.15)

(1,016,847.33)

--

--

Total Public Service/Special Funding Initiatives

2,781,183.23

(1,737,762.15)

(1,043,421.08)

1,484,999.00

--

Regents Central Office State Appropriation State General Funds Other Funds

76,828.13

--

(76,828.13)

32,160.31

--

4,712,648.49

(4,712,648.49)

--

--

--

Total Regents Central Office

$ 4,789,476.62 $ (4,712,648.49) $

(76,828.13) $

32,160.31 $

--

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. 2019
Early Return of Fiscal Year 2019
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 Research Alliance State General Funds

$

--$

--$

--$

--$

--$

--

Georgia Tech Research Institute State Appropriation State General Funds Other Funds

--

--

657.29

--

--

3,508,559.25

3,508,559.25

3,508,559.25

657.29 --

657.29 3,508,559.25

Total Georgia Tech Research Institute

--

3,508,559.25

3,509,216.54

3,508,559.25

657.29

3,509,216.54

Marine Institute State Appropriation State General Funds Other Funds

--

--

--

--

--

723,928.66

723,928.66

723,928.66

--

--

--

723,928.66

Total Marine Institute

--

723,928.66

723,928.66

723,928.66

--

723,928.66

Marine Resources Extension Center State Appropriation State General Funds Other Funds

--

--

2,000.90

--

--

299,449.54

300,326.32

300,129.82

2,000.90 196.50

2,000.90 300,326.32

Total Marine Resources Extension Center

--

299,449.54

302,327.22

300,129.82

2,197.40

302,327.22

Medical College of Georgia Hospital and Clinics State Appropriation State General Funds Tobacco Settlement Funds
Total Medical College of Georgia Hospital and Clinics

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

Public Libraries State Appropriation State General Funds Other Funds

(8,397.42) --

39,454.72 --

139,800.58 --

--

139,800.58

139,800.58

--

--

--

Total Public Libraries

(8,397.42)

39,454.72

139,800.58

--

139,800.58

139,800.58

Public Service/Special Funding Initiatives State Appropriation State General Funds State Funds - Prior Year Carry-Over State General Funds - Prior Year

(16,228.98) --

2,748,633.67 672,567.08

4,217,403.69 672,567.08

-- 672,567.08

4,217,403.69 --

4,217,403.69 672,567.08

Total Public Service/Special Funding Initiatives

(16,228.98)

3,421,200.75

4,889,970.77

672,567.08

4,217,403.69

4,889,970.77

Regents Central Office State Appropriation State General Funds Other Funds

(20,513.92) --

-- 5,615,638.57

11,646.39 5,615,638.57

-- 5,615,638.57

11,646.39 --

11,646.39 5,615,638.57

Total Regents Central Office

$

(20,513.92) $ 5,615,638.57 $ 5,627,284.96 $ 5,615,638.57 $

11,646.39 $ 5,627,284.96

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.

2019 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. 2019

Beginning Fund Balance/(Deficit)
July 1

Fund Balance Carried Over from
Prior Year as Funds Available

Return of Fiscal Year 2018
Surplus

Prior Year Adjustments

Other Adjustments

Skidaway Institute of Oceanography State Appropriation State General Funds Other Funds

$

2,987.90 $

--$

(2,987.90) $

1,395.50 $

--

1,477,905.97

(1,477,905.97)

--

5,304.45

--

Total Skidaway Institute of Oceanography

1,480,893.87

(1,477,905.97)

(2,987.90)

6,699.95

--

Teaching State Appropriation State General Funds Other Funds

1,436,167.75 481,967,894.39

-- (481,554,316.37)

(1,436,167.75) (413,578.02)

3,528,573.26 2,175,085.05

(120,723.83) (2,918,659.50)

Total Teaching

483,404,062.14

(481,554,316.37)

(1,849,745.77)

5,703,658.31

(3,039,383.33)

Veterinary Medicine Experiment Station State Appropriation State General Funds

3,640.84

--

(3,640.84)

7,036.66

--

Veterinary Medicine Teaching Hospital State Appropriation State General Funds Other Funds

-- 3,212,946.34

-- (3,212,946.34)

--

--

--

--

(16,457.34)

21,360.13

Total Veterinary Medicine Teaching Hospital

3,212,946.34

(3,212,946.34)

--

(16,457.34)

21,360.13

Agencies Attached for Administrative Purposes

Payments to Georgia Military College State Appropriation State General Funds

--

--

--

--

--

Payments to Georgia Public Telecommunications Commission State Appropriation State General Funds

--

--

--

--

--

Total Operating Activity

535,922,610.40

(532,671,164.88)

(3,251,445.52)

7,874,052.73

(3,044,504.80)

Prior Year Reserve Not Available for Expenditure Inventories Other Reserves

3,061,893.17

--

--

--

(372,666.06)

25,619,774.96

--

--

--

3,417,170.86

Budget Unit Totals

$ 564,604,278.53 $ (532,671,164.88) $ (3,251,445.52) $ 7,874,052.73 $

--

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. 2019
Early Return of Fiscal Year 2019
Surplus

Excess (Deficiency)
of Funds Available
Over/(Under)
Expenditures

Ending Fund Balance/(Deficit)
June 30

Analysis of Ending Fund Balance

Reserved

Surplus/(Deficit)

Total

Skidaway Institute of Oceanography State Appropriation State General Funds Other Funds

$

(1,376.20) $

--$

19.30 $

--$

--

1,562,644.23

1,567,948.68

1,567,948.68

19.30 $ --

19.30 1,567,948.68

Total Skidaway Institute of Oceanography

(1,376.20)

1,562,644.23

1,567,967.98

1,567,948.68

19.30

1,567,967.98

Teaching State Appropriation State General Funds Other Funds

(972,388.31) (1,797,436.66)

335,751.03 582,978,856.27

2,771,212.15 580,437,845.16

-- 579,111,976.56

2,771,212.15 1,325,868.60

2,771,212.15 580,437,845.16

Total Teaching

(2,769,824.97)

583,314,607.30

583,209,057.31

579,111,976.56

4,097,080.75

583,209,057.31

Veterinary Medicine Experiment Station State Appropriation State General Funds

(402.00)

--

6,634.66

--

6,634.66

6,634.66

Veterinary Medicine Teaching Hospital State Appropriation State General Funds Other Funds

--

--

--

--

--

3,907,168.41

3,912,071.20

3,912,071.20

--

--

--

3,912,071.20

Total Veterinary Medicine Teaching Hospital

--

3,907,168.41

3,912,071.20

3,912,071.20

--

3,912,071.20

Agencies Attached for Administrative Purposes

Payments to Georgia Military College State Appropriation State General Funds

--

--

--

--

--

--

Payments to Georgia Public Telecommunications Commission
State Appropriation
State General Funds

--

--

--

--

--

--

Total Operating Activity

(2,829,912.57)

645,827,078.93

647,826,714.29

638,570,283.14

9,256,431.15

647,826,714.29

Prior Year Reserve Not Available for Expenditure Inventories Other Reserves

--

--

2,689,227.11

2,689,227.11

--

2,689,227.11

--

--

29,036,945.82

29,036,945.82

--

29,036,945.82

Budget Unit Totals

$ (2,829,912.57) $ 645,827,078.93 $ 679,552,887.22 $ 670,296,456.07 $ 9,256,431.15 $ 679,552,887.22

Summary of Ending Fund Balance Reserved Inventories Colleges and Universities Unreserved, Undesignated Surplus

$ 2,689,227.11 $ 667,607,228.96

-- $ 2,689,227.11

--

667,607,228.96

--

9,256,431.15

9,256,431.15

Total Ending Fund Balance - June 30

$ 670,296,456.07 $ 9,256,431.15 $ 679,552,887.22

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.

2019 Annual Financial Report 227

Acknowledgments
Published by University System of Georgia Strategy and Fiscal Affairs: Tracey Cook - Executive Vice Chancellor For Strategy and Fiscal Affairs/Treasurer Claire Arnold Brad Freeman Theresa L. Jackson Christi Porto 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 Nick Henry, Atlanta Metropolitan State College Yvonne Turner, Augusta University Corlis Cummings, Clayton State University Michelle Ham, 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 Frank Hardymon, 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 Elaine Campbell, Savannah State University Diane Owens, 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
228 University System of Georgia

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