Annual financial report, fiscal year 2020

ANNUAL FINANCIAL REPORT

UNIVERSITY SYSTEM OF GEORGIA TABLE OF CONTENTS For the Fiscal Year Ended June 30, 2020
Introductory Section........................................................................................................................................ University System of Georgia Highlights............................................................................................ 2 Letter of Transmittal............................................................................................................................ 13
Financial Section.............................................................................................................................................. Independent Auditor's Report............................................................................................................. 17 Management's Discussion and Analysis............................................................................................ 21 Financial Statements (GAAP Basis)................................................................................................... Statement of Net Position............................................................................................................ 36 Statement of Revenues, Expenses and Changes in Net Position............................................... 39 Statement of Cash Flows............................................................................................................. 41 Fiduciary Funds............................................................................................................................ Statement of Fiduciary Net Position......................................................................................... 44 Statement of Changes in Fiduciary Net Position..................................................................... 45 Component Units......................................................................................................................... Combining Statement of Net Position...................................................................................... 46 Combining Statement of Revenues, Expenses, and Changes in Net Position........................ 56 Notes to the Financial Statements............................................................................................... 67 Note 1 - Summary of Significant Accounting Policies.............................................................. 68 Note 2 - Deposits and Investments.......................................................................................... 76 Note 3 - Accounts Receivable.................................................................................................. 84 Note 4 - Inventories.................................................................................................................. 84 Note 5 - Notes and Loans Receivable..................................................................................... 84 Note 6 - Capital Assets............................................................................................................ 85 Note 7 - Advances.................................................................................................................... 86 Note 8 - Long-Term Liabilities.................................................................................................. 86 Note 9 - Deferred Outflows and Inflows of Resources............................................................. 87 Note 10 - Net Position.............................................................................................................. 90 Note 11 - Endowments............................................................................................................. 90 Note 12 - Significant Commitments......................................................................................... 91 Note 13 - Leases...................................................................................................................... 91 Note 14 - Retirement Plans...................................................................................................... 93 Note 15 - Risk Management.................................................................................................... 101 Note 16 - Contingencies.......................................................................................................... 102 Note 17 - Post-Employment Benefits Other Than Pension Benefits........................................ 102 Note 18 - Operating Expenses with Functional Classifications................................................ 114 Note 19 - Subsequent Event.................................................................................................... 115 Note 20 - Component Units..................................................................................................... 116

UNIVERSITY SYSTEM OF GEORGIA TABLE OF CONTENTS For the Fiscal Year Ended June 30, 2020
Required Supplementary Information............................................................................................................ Benefit Pension Plans........................................................................................................................ Schedule of Contributions for Defined Benefit Pension Plan......................................................... 128 Schedule of Proportionate Share of Net Pension Liability.............................................................. 129 Schedule of Employers' and Nonemployers' Net Pension Liability................................................ 130 Schedule of Changes in Net Pension Liability................................................................................ 131 Schedule of Investment Returns.................................................................................................... 132 Notes to the Required Supplementary Information for Pension Plans........................................... 133 Other Postemployment Benefits Plans............................................................................................... Schedule of Contributions for Other Postemployment Benefits - BOR Health Benefit Plan.......... 134 Schedule of Contributions for Other Postemployment Benefits - SEAD........................................ 135 Schedule of Proportionate Share of Net Other Postemployment Benefit Asset............................. 136 Schedule of Changes in Net Other Postemployment Benefit Liability............................................ 137 Schedule of Net Other Postemployment Benefit Liability............................................................... 138 Schedule of Investment Returns for Other Postemployment Benefits........................................... 139 Notes to the Required Supplementary Information for Other Postemployment Benefit Plans....... 140
Supplementary Information............................................................................................................................ Financial Statements (GAAP Basis)................................................................................................... Statement of Net Position by Institution.......................................................................................... 142 Statement of Revenue, Expenses and Changes in Net Position by Institution.............................. 166 Statement of Fiduciary Net Position by Institution.......................................................................... 182 Statement of Changes in Fiduciary Net Position by Institution....................................................... 190 Statement of Net Position by Affiliated Organization...................................................................... 198 Statement of Revenue, Expenses and Changes in Net Position by Affiliated Organization.......... 222 Notes to the Statement of Net Position and Statement of Revenues, Expenses and Changes.... in Net Position by Affiliated Organization.................................................................................... 234 Statutory Basis Financial Statement (Non-GAAP Basis).................................................................... Balance Sheet (Non-GAAP Basis)................................................................................................. 235 Statement of Funds Available and Expenditures Compared to Budget (Non-GAAP Basis).......... 236 Statement of Changes to Fund Balance by Program and Funding Source (Non-GAAP Basis).... 242
Acknowledgments........................................................................................................................................... 250

Introductory Section

341,000+
students enrolled
26 higher ed institutions 157,770 JOBS generated statewide
$18.5B
annual economic impact
USG's impact on Georgia
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USG FY20 | Annual Financial Report

A record-high 341,000 students now enroll in the 26 public higher education institutions of the University System of Georgia, helping contribute to communities across the state. USG's economic impact is estimated at $18.5 billion annually, and its institutions have generated more than 157,700

jobs across Georgia. At the same time, our faculty compete nationally for sponsored research dollars in excess of $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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Navigating the COVID-19 pandemic
Each of USG's 26 institutions plays a critically important role in raising education achievement levels in Georgia. The fundamental purpose of USG is to graduate more Georgians. A college degree improves not only quality of life but also the state's economic competitiveness.
As the COVID-19 pandemic unfolded, extensive preparations for Fall 2020 began in April. Institutions made a strong commitment to campus health and safety, while at the same time retaining a commitment to the value and importance to students of the on-campus experience.
USG's highest priority is for the health and safety of students, faculty and staff. We take that responsibility very seriously.
What hasn't changed is the focus on instruction and on supporting students so they continue to achieve their academic goals, graduate and join the workforce.

A commitment to students

Faced with the extraordinary challenges of a global pandemic, USG made the decision in March to transition to online-only instruction for spring and, ultimately, summer semesters. Yet there are serious academic risks to students associated with constant online-only education.

National trends show low-income students are most likely to drop out or not enroll during the pandemic. Anecdotal reports suggest these students prefer the supportive environment of in-person classes, struggle at home to find a quiet place to study, and many lack access to reliable internet.

Many of our students are firstgeneration, and many face financial challenges. More than 108,000 USG undergraduate students qualify for federal financial assistance under the Pell Grant program.
A substantial number come to us needing the kind of support that cannot be consistently provided through long-term, online-only education. Why does that matter?

If our goal is to raise degree attainment, we must meet these challenges to provide the very support these students need to continue college. We believe students are responding to these efforts. Fall 2020 enrollment is the highest ever, with overall growth among African-American and Latino students, adult undergraduates and, importantly, first-year freshmen.

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USG FY20 | Annual Financial Report 5

Affordability
Affordability remains a paramount goal of the university system. The Board of Regents did not raise tuition for the current academic year and reduced students' costs systemwide.
Over the last five years, USG has limited tuition increases to an average of 0.9% annually, less than the rate of inflation -- marking the third time in five years there has been no tuition increase. The decision allows USG to continue to offer some of the lowest tuition rates among peer public higher education systems.
Out of the 16 states that make up the Southern Regional Education Board, USG has the fourth-lowest in-state tuition and fees for undergraduates at four-year institutions.
Additionally, most mandatory fees were waived for the 2020 summer semester. Among other initiatives, the system has also maximized the use of online resources, including increased use of free or low-cost textbooks as an alternative to expensive traditional textbooks.
When they register, students can see whether a course section is available with a low-cost or no-cost textbook option.
In Spring 2020, no-cost and low-cost options throughout USG saved students $27 million in that one semester alone, making us a leader in the nation.
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USG FY20 | Annual Financial Report

Know More. Borrow Less.

In addition to other affordability measures, USG has committed to a systemwide financial literacy initiative called "Know More. Borrow Less."
Used at all 26 institutions, the program is designed to reduce student borrowing, increase their understanding of debt and provide them with timely, customized information about their student loans. This includes streamlining the federal student loan verification process, dramatically reducing time spent by students and schools grappling with red tape.
Additionally, USG has deployed automated 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, and the estimated remaining loan eligibility. We have developed a digital financial aid offer letter that clearly articulates the cost of attendance, the financial aid offered and a recommended borrowing amount rather than just the maximum loan 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 24/7.

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USG FY20 | Annual Financial Report

College completion
The number of USG students annually earning degrees has reached a record high in the system's 89-year history, having risen from about 54,800 degrees in 2011 to more than 70,80o degrees awarded in fiscal year 2020.
The numbers have gone up for nine consecutive years and reflect a more than 29% increase between 2011 and now. This year also saw the largest year-overyear increase since 2011, when USG joined Complete College America and refocused system efforts on increasing education attainment in Georgia.
Our work to increase college completion continues with the systemwide, comprehensive effort to increase students' successful degree completion and on-time graduation known as the Momentum Approach. The first of its kind in the country, Momentum Approach starts the moment students step onto campus at any of USG's 26 institutions and find themselves immersed in a culture focused on successful degree completion and reducing 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 expands use of academic programs such as "degree pathways," a campaign for fuller course loads, early-alert systems and corrective advising for when students need help staying on track. The program will continue scaling up to support students as they journey toward their degree.
Because of such initiatives, Georgia continues to be one of only three states with at least two institutions ranked among U.S. News & World Report's Top 15 public institutions in the nation.

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 USG.
The review has resulted in over $112.9 million in redirected savings at all 26 institutions and the Uni-

versity System Office, generated through a variety of efforts including restructuring, elimination of approximately 837 positions, expense reduction and process improvement.
Redirected funds are now being used to advance USG's core priorities of degree attainment, student affordability and efficiency, including reducing online tuition, hiring additional faculty to enable students to take a full load of courses and providing additional resources toward student success programs.

9

Economic innovation

With an economic impact of $18.5 billion annually and a statewide impact, one of the top priorities for USG and its 26 institutions is to strengthen partnerships with Georgia-based businesses and address the critical need for a highly skilled workforce throughout our state.
We continue to increase degree offerings with the expansion of nexus degree programs, which give students the option of a shorter-term college credential in high-demand career areas, including cybersecurity, blockchain and film production. A nexus degree allows students and career professionals seeking to expand their skillsets and receive high-level, focused instruction and industry experience to fill the jobs that we, as a state, want to attract.

This effort includes core industry important to Georgia, such as the fast-growing financial technology (fintech) business sector. With 70 percent of all U.S. financial transactions routed through our state, and over 160 employers in this high-demand field currently located in Georgia, USG has embedded a statewide fintech core curriculum in a variety of four-year degrees at 23 of USG's 26 institutions that has been vetted by both the American Transaction Processors Coalition and companies affiliated with FinTech Atlanta.
This builds upon the success of USG's first-ofits-kind Georgia FinTech Academy, through which more than 1,900 college students have already taken at least one fintech course since September 2018.

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USG FY20 | Annual Financial Report

MEMBERS OF THE BOARD OF REGENTS
W. Allen Gudenrath District: Eighth
Erin Hames District: At-Large
Samuel D. Holmes District: At-Large
Brbara Rivera Holmes District: Second
C. Thomas Hopkins Jr., M.D. District: Third
James M. Hull (Vice Chair) District: At-Large
Cade Joiner District: At-Large
C. Everett Kennedy III District: Twelfth
Rachel B. Little District: Fourth
Lowery Houston May District: Fourteenth
Jose R. Perez District: Seventh

Neil L. Pruitt Jr. District: Eleventh
Sarah-Elizabeth Langford Reed District: Fifth
Harold Reynolds District: Tenth
Sachin Shailendra (Chair) District: Thirteenth
T. Dallas Smith District: At-Large
Kessel D. Stelling Jr. District: Sixth
Don L. Waters 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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12 University System of Georgia

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

PHONE (404) 962-3233
FAX (404) 962-3215

December 21, 2020
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, 2020. 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 2020 and has issued an unmodified opinion, the most favorable outcome of the audit process. The State Auditor's report is located at the beginning of the financial section.
Management's discussion and analysis (MD&A) immediately follows the auditor's report and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction therewith.
Respectfully submitted,

Tracey Cook 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

2020 Annual Financial Report 13

14 University System of Georgia

Financial Section

16 University System of Georgia

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

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 4-101 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, aggregate discretely presented component units, and aggregate remaining fund information of the University System of Georgia (USG) as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the USG'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. The other auditors did not audit the aggregate discretely presented component units' financial statements, except for the Augusta University Foundation, 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, in accordance with Government Auditing Standards.

2020 Annual Financial Report 17

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the USG's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the USG's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, based on our audit and the reports of the other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the business-type activities, aggregate discretely presented component units, and aggregate remaining fund information of the USG as of June 30, 2020, 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 business-type activities, aggregate discretely presented component units and aggregate remaining fund information of the State of Georgia that are attributable to the transactions of the USG. They do not purport to, and do not, present fairly the financial position of the State of Georgia as of June 30, 2020, the changes in its financial position, or where applicable, its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinions are not modified with respect to this matter.
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.
18 University System of Georgia

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 21, 2020 on our consideration of the USG's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the USG's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the USG's internal control over financial reporting and compliance.
A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24.
Respectfully submitted,

December 21, 2020

Greg S. Griffin State Auditor

2020 Annual Financial Report 19

20 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA Management's Discussion and Analysis

Introduction The University System of Georgia (USG)'s priority is to ensure more Georgians enter the workforce with a college credential, while also seeking to make college more affordable and accessible and the USG itself more costefficient on behalf of the State's students and communities. 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. Data from the National Student Clearinghouse Research Center shows that Georgia exceeds national averages for students completing their degrees within six years of enrolling. Despite unprecedented challenges from the COVID-19 pandemic, the USG awarded a record 70,879 degrees in fiscal year 2020 - the most in the USG's 89-year history.

Headcount enrollment for the 26 institutions of the USG in Fall 2019 was 333,507, representing an increase of 1.5 percent (4,795 students) over the Fall 2018 enrollment of 328,712. Fall 2020 headcount enrollment reached an alltime high of 341,485 students, which represents a 2.4% (7,978 students) increase over Fall 2019 and extending USG's positive growth trend to seven consecutive years.

Tuition rates for the 2019-2020 academic year increased slightly. System-wide, depending on the type of institution, the increase translates to $35 to $125 per semester for a full-time, in-state undergraduate student, or 2.5 percent. For the 2020-2021 academic year, the Board did not increase tuition rates. The USG limited tuition increases among it's institutions to an average 0.9% annually for the past five years, well below the rate of inflation. This is the third time in five years there has been no tuition increase across the USG.

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 resulted in $112.9 million in savings from the USO and all 26 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 837 filled and vacant positions.

USG institutions have pursued a mission of teaching, research and service while prioritizing health and safety and providing a safe on-campus learning experience for students. The result is record enrollment and more students earning degrees than ever before. As we rise above the challenges brought on by the pandemic, USG remains committed to helping Georgia succeed by being more affordable, more efficient and most of all, preparing more students for life and work with a college degree.

This discussion and analysis provides a summary of the financial position of the USG for the fiscal year ending June 30, 2020. It will provide the user with an overview of how the USG utilized its resources in pursuit of its primary goals of teaching, research and public service. The Board of Regents (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 2020 session, the General Assembly passed HB 792 to amend HB 31 and provide appropriations for the State Fiscal Year beginning July 1, 2019, and ending June 30, 2020. The USG total appropriation for fiscal year 2020 was $2.56 billion:

STATE APPROPRIATIONS AVAILABLE - GENERAL APPROPRIATIONS ACT OF 2020

House Bill 31

General State Funds

$ 2,578,608,885

House Bill 792

General State Funds

(17,784,778)

Total State Appropriations Per Appropriations Act - University System of Georgia

$

2,560,824,107

2020 Annual Financial Report 21

The following table presents the fiscal year 2020 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

$

11,722,805

Rental Payments - GA Junior Military College

3,863,463

Rental Payments - GA Military Prep School

3,945,859

GA Public Telecommunications Commission

14,705,194

GA Public Libraries

39,657,132

Total Other Activities

Special Initiative Funding

Net State Appropriations Available to the University System of Georgia

2,287,273,298 173,673,408
73,894,453 25,982,948
$

2,560,824,107

The following chart illustrates the Board of Regents allocations to Teaching, Non-Teaching, Other Activities and Special Funding Initiatives:

Overview of the Financial Statements and Financial Analysis The USG is proud to present its consolidated financial statements for fiscal year 2020. These statements contain information from the 26 institutions of the USG, and the University System Office. These financial statements include: three business-type activity statements: Statement of Net Position, Statement of Revenues, Expenses and Changes in Net Position, and Statement of Cash Flows; Fiduciary Fund statements for the Early Retirement Plan Augusta University, the USG Deferred Compensation Plan, the Board of Regents Retiree Health Benefit Fund, the Board of Regents Investment Pool Custodial Fund, and the Student Support Custodial Funds; and combining component unit financial statements for 25 discretely presented component units. These 25 organizations are
22 University System of Georgia

legally separate tax-exempt component units of the State of Georgia. The emphasis of discussions about these statements will be on current year USG data
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. While audited financial statements for fiscal year 2019 are not presented with this report, condensed operations and financial position data will be presented in this section in order to illustrate comparative information.
Impact of the 2019 Novel Coronavirus (or "COVID-19") COVID-19 has adversely affected, and may continue to adversely affect, economic activity globally, nationally and locally. In March 2020, the World Health Organization declared the outbreak of COVID-19 a pandemic. The extent of the impact of the outbreak on the USG's operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, impact on the USG's donors, employees, and vendors, and governmental, regulatory, and private sector responses. The full extent of the economic uncertainty caused by COVID-19 on the USG's consolidated financial statements in future periods is not yet determinable.
In March of 2020, the USG made a decision that all 26 institutions move to online instruction for the remainder of the spring and summer semesters. During this time, residence halls were closed, with minimal exceptions for students unable to return home, or who could not find housing elsewhere. While the residence halls were closed, the institutions did remain open with minimal staff physically on-site to ensure continuity of services. These changes due to COVID-19 necessitated refunding a prorated portion of housing, dining, and parking, among other fees, resulting in a decrease in auxiliary enterprise revenue for the fiscal year.
During fiscal year 2020, the USG was awarded federal Coronavirus Aid, Relief, and Economic Security (CARES) Act funds totaling $282,625,297 to assist with higher education relief. Part A of federal CARES Act funds, $124,872,726, were to be distributed directly to students as emergency financial aid grants as required under the federal program. Part B, totaling $124,872,711, were primarily used to cover the cost of housing, dining, parking, and other refunds issued to students. Other CARES Act programs totaling $32,879,860 were mostly used for student refunds, distance learning equipment, campus safety and operations, emergency financial aid grants to students, cost of providing additional technology hardware to students, and lost revenues due to COVID-19.
The USG believes in-person instruction maximizes the well-being and mental health of each student and is committed to maximizing safe in-person instruction; ensuring hybrid instruction includes a vast majority of inperson interactive instruction where appropriate and safe; promoting transparency in the modality of instruction prior to registration; and collecting data on the effectiveness of student engagement and face to face interaction with their instructors. In-person learning resumed for the Fall 2020 semester. The USG implemented contingency plans which include preparation of on-campus and off-campus space to be used for quarantine purposes, a robust COVID-19 testing strategy, and expanded healthcare service capacity. The USG also worked with various vendors, such as food service providers, to alter operations to facilitate social distancing and other safety protocols.
2020 Annual Financial Report 23

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, 2020 is very strong, with total assets of $13.24 billion, deferred outflows of $1.40 billion, total liabilities of $11.46 billion, deferred inflows of $1.26 billion and net position of $1.92 billion.
For fiscal year 2020, the USG implemented Governmental Accounting Standards Board (GASB) Statement No. 84 which requires the activity meeting certain criteria to now be reported within separate fiduciary funds within the Statement of Fiduciary Net Position and Statement of Changes in Fiduciary Net Position. This change increased cash and cash equivalents and decreased accounts receivable and deposits held for others related to custodial fund activity previously reported in the Statement of Net Position. Additional information regarding the restatement due to the new accounting pronouncement can be found in Note 1 in the Notes to Financial Statements.
Assets and Deferred Outflows Total assets and deferred outflows of the USG in fiscal year 2020 were approximately $258.5 million more than those reported for fiscal year 2019. Most asset categories had marginal increases or decreases during the year. Cash and investments increased $136.5 million due to strategic budgetary efforts along with a change in reporting due to the implementation of GASB Statement No. 84. Accounts receivable decreased $84.5 million due to the timing of collections along with a change in reporting due to the implementation of GASB Statement No. 84. Prepaid items increased $10.6 million due to funds paid to Georgia State Financing and Investment Commission for construction projects. Deferred outflows of resources increased $158.8 million primarily due to the USG's proportionate share of changes of assumptions related to the TRS pension plan increasing $273.9 million, a decrease in OPEB actuarially determined differences between expected and actual experience of $60.0 million, a decrease of OPEB contributions subsequent to measurement date of $57.6 million, and other net increases of $2.5 million. Capital assets increased by $43.0 million. See Capital Assets later within this section and Note 6 with in the Notes to the Financial Statements for more information on capital assets.
Liabilities and Deferred Inflows Total liabilities and deferred inflows for fiscal year 2020 were approximately $371.7 million more than those reported for fiscal year 2019. The majority of the change is related to increases in net pension liability ($471.0 million), net OPEB liability ($60.8 million), compensated absences ($30.2 million), and advances ($11.4 million). These increases were offset by decreases in accounts payable ($40.6 million), contracts and retainage payables ($9.9 million), deposits held for others ($86.3 million), and lease purchase obligations and notes payable ($47.8 million).
24 University System of Georgia

Net pension liability increased $471.0 million, which is primarily attributable to TRS's long-term assumed rate of return on assets (discount rate) decreasing from 7.50% to 7.25% and the assumed annual rate of inflation decreasing from 2.75% to 2.50%. Net OPEB liability increased $60.8 million. Net OPEB liability was expected to increase $397.8 million due to normal plan operations and administrative expenses of $0.5 million. These increases were offset by decreases due to assumption changes ($129.2 million), actual experience being better than assumed ($29.6 million), adoption of a tiered cost sharing approach to USG contributions for employees hired after January 1, 2013 and retired after January 1, 2018 ($11.2 million), contributions more than expected ($160.4 million), and investment earnings ($7.1 million). The net OPEB liability decrease due to changes in assumptions of $129.2 million includes new retirement rates based on USG's experience over the past 3 years. The new retirement rates assume a 1 year later retirement compared to the prior year table and decreased the liability about $324.9 million. The discount rate was lowered from 3.87% to 3.50%, which increased the liability $304.7 million, The mortality table was changed to the most recent table for public sector employees, with mortality improvement scale MP-2018, which decreased the liability $229.0 million primarily as a result of the future mortality improvement slowing with MP-2018. The expected claims costs were updated to reflect actual claims experience and trend rate was updated to reflect current estimates of the impact of the excise tax due to the updated claims assumption. The impact of the updated claims cost assumptions increased the liability $120.0 million. Compensated absences increased $30.2 million as employees reduced the amount of leave taken during the last quarter of fiscal year 2020 due to the pandemic. Advances increased $11.4 million mostly due to federal CARES Act funds received in advance of eligibility requirements. Accounts payable decreased $40.6 million and contracts and retainage payables decreased $9.9 million due to changes in operations in response to the pandemic. In addition, the State of Georgia asked state agencies, including the USG, to maximize surplus returned to the State. Many ordinary costs like travel, professional development, equipment purchases, and construction were either canceled or deferred as social distancing strategies and strategies to reduce spending were implemented. Deposits held for other organizations decreased $86.3 million due to changes in reporting with the implementation of GASB Statement No. 84. Most deposits held for other organizations are now reported as fiduciary net position in the Statement of Fiduciary Net Position. Deposits held for other organizations that remain in the Statement of Net Position result primarily from unclaimed property that is held in accordance with policies established by Georgia Department of Revenue. Lease purchase obligations and notes payable decreased $47.8 million. Additions to these debt items totaled $80.5 million, of which $73.4 million were related to the purchase of new capital assets, $4.4 million were related to various debt refundings, and $2.7 million were other adjustments to debt principal. Reductions totaled $128.3 million, of which $112.0 million was principal paid on capital debt, $1.1 million was principal paid on non-capital debt, $11.8 million were related to various debt refundings, and $3.4 million were other adjustments to debt principal.
2020 Annual Financial Report 25

Net Position The combination of the increase in total assets and deferred outflows of $258.5 million and the increase in total liabilities and deferred inflows of $371.7 million yielded a net decrease in total net position of $113.2 million or 5.57%. The following table summarizes the USG's assets, deferred outflows, liabilities, deferred inflows and net position as of June 30, 2020 and June 30, 2019.

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

June 30, 2020 June 30, 2019 (1) % Change

$ 2,553,028,484 $ 2,471,187,616

10,223,868,912

10,180,886,037

464,775,983

489,893,475

13,241,673,379

13,141,967,128

3.31 % 0.42 % (5.13)% 0.76 %

DEFERRED OUTFLOWS

1,401,429,812

1,242,647,053

12.78 %

LIABILITIES Current Liabilities Non-Current Liabilities TOTAL LIABILITIES

824,007,285 10,635,140,082 11,459,147,367

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

(11.33)% 4.84 % 3.48 %

DEFERRED INFLOWS

1,263,250,818

1,277,144,280

(1.09)%

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

7,127,418,774

7,029,370,125

184,012,099

181,015,931

275,758,295

265,970,604

(5,666,484,162) (5,442,417,258)

$ 1,920,705,006 $ 2,033,939,402

1.39 % 1.66 % 3.68 % (4.12)% (5.57)%

(1) The amounts reported for fiscal year 2019 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 nonoperating, 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, 2020 June 30, 2019 (1) % Change

$ 5,523,217,967 $ 5,532,092,809 (0.16)%

9,171,234,039

8,623,637,908

6.35 %

(3,648,016,072) (3,091,545,099) (18.00)%

3,398,281,595

3,100,564,463

9.60 %

(249,734,477) 122,552,304 11,090,807 (116,091,366)
2,036,796,372 $ 1,920,705,006 $

9,019,364 2868.87 % 364,597,880 (66.39)%
52,770,005 78.98 % 426,387,249 (127.23)% 1,607,552,153 26.70 % 2,033,939,402 (5.57)%

(1) The amounts reported for fiscal year 2019 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 challenging year as represented by a decrease in Change in Net Position for fiscal year 2020. The impacts of COVID-19 played a large role in the change in net position. Federal CARES Act funds received did not fully offset lost revenues incurred when USG institutions moved to online instruction during the fourth quarter of fiscal year 2020.
Revenues Revenue by major source is depicted by the following chart:

2020 Annual Financial Report 27

State appropriations consists of formula funded state general funds, special funding initiatives and State supported other organized activities appropriated by the General Assembly less prior year surplus ($9.3 million) remitted back to the State. Special funding initiatives are state appropriations received for specific purposes. Some examples are Augusta University's Adrenal and Cancer Centers, the Georgia Film Academy, Abraham Baldwin Agricultural College's - Center for Rural Prosperity, Kennesaw State University's - Georgia Youth Science Technology Center, and Georgia College & State University's - Sandra Deal Center for Early Learning & Literacy. Other organized activities are specific programs of unique importance to the State. Examples include Cooperative Extension Service, Agricultural Experiment Station, and the Georgia Tech Research Institute.
Tuition and fees are net of scholarship allowances of $638.6 million.

Operating grants and contracts are sponsored projects consisting mostly of research activities primarily at the USG's four research institutions (96.46%) - Augusta University, Georgia Institute of Technology, Georgia State University and University of Georgia.

Non-operating grants and contracts are non-exchange transactions consisting mostly of student financial aid and other institutional support including CARES Act funds.

Auxiliary enterprises are activities that exist to provide services directly or indirectly to students, faculty or staff, and for which a fee are charged that are related to, but not necessarily equal to, the cost of the services. Auxiliary enterprises are operated on a self-supporting basis, where the combination of fees and other revenues is sufficient to meet costs. These revenues include residence halls ($272.2 million), bookstores ($42.3 million), food services ($160.0 million), parking & transportation ($76.9 million), health services ($58.3 million), intercollegiate athletics ($121.5 million), and vending & other activities ($32.6 million).

For the years ended June 30, 2020 and June 30, 2019, revenues by source were as follows:

REVENUES BY SOURCE

June 30, 2020 June 30, 2019 (1) % Change

Tuition and Fees, net

$ 2,192,707,819 $ 2,108,520,037

3.99 %

Federal Appropriations

21,833,541

21,289,268

2.56 %

Grants and Contracts

2,130,544,460

1,993,029,057

6.90 %

Sales and Services

220,891,867

265,330,239 (16.75)%

Auxiliary Enterprises

763,728,105

932,353,737 (18.09)%

Other Operating Revenues

193,512,175

211,570,471 (8.54)%

Total Operating Revenues

5,523,217,967

5,532,092,809

(0.16)%

State Appropriations

2,551,358,929

2,434,474,803

4.80 %

Grants and Contracts

882,691,582

693,921,040 27.20 %

Gifts

67,463,780

75,353,258 (10.47)%

Investment Income

59,344,988

66,677,756 (11.00)%

Total Non-operating Revenues

3,560,859,279

3,270,426,857

8.88 %

State Capital Gifts and Grants

102,296,731

340,768,312 (69.98)%

Other Capital Gifts and Grants

19,292,017

22,529,209 (14.37)%

Total Capital Gifts and Grants

121,588,748

363,297,521 (66.53)%

Additions to Permanent and Term Endowments

963,556

1,300,359 (25.90)%

Total Revenues

$ 9,206,629,550 $ 9,167,117,546

0.43 %

(1) The amounts reported for fiscal year 2019 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.

Fiscal year 2020 total revenues were $39.5 million more that fiscal year 2019 total revenues. Tuition and fees increased $84.2 million (3.99%) due to the previously mentioned increase in tuition rate and enrollment. Operating grants and contracts increased $137.5 million (6.90%) as we continue to see growth in our research activities primarily at the USG's four research institutions. State appropriations increased $116.9 million (4.80%) mostly due to fiscal year 2019 increase in matriculation credit hours used in the State's formula funding calculation and increases to support merit-based pay adjustments. Non-operating grants and contracts increased $188.8 million (27.20%) mostly due to Federal CARES Act funds received. The USG was awarded one time funding through

28 University System of Georgia

Federal CARES Act in the amount of $282.6 million, of which $215.0 million was recognized as revenue during fiscal year 2020.

Due to the effect of the pandemic, the USG experienced decreases in sales and services, auxiliary enterprises, and investment income. Auxiliary enterprises decreased $168.6 million (18.09%) and sales and services decreased $44.4 million (16.75%) due to the move to online instruction and reduced activities on campuses in response to the pandemic during the fourth quarter of fiscal year 2020. Investment income decreased $7.3 million (11.00%) largely due to the impact of market conditions related to the pandemic.

Other operating revenues decreased $18.1 million (8.54%) mostly due to nonrecurring transactions received in the prior year. The transactions were primarily related to guaranteed energy savings performance contract reimbursements and rebates received related to Georgia Institute of Technology's CODA development.

Capital gifts and grants decreased $241.7 million (66.53%) primarily related to Georgia State Financing and Investment Commission (GSFIC) managed projects which are not transferred to the USG until completed. GSFIC transferred eleven completed projects totaling $291.1 million to the USG in fiscal year 2019. In comparison, GSFIC only transferred one completed project totaling $12.8 million to the USG in fiscal year 2020. This completed project was related to the renovation of Terrell and Kilpatrick Hall at Georgia College & State University.

Expenses For the years ended June 30, 2020 and June 30, 2019, expenses by functional classification were as follows:

EXPENSES BY FUNCTIONAL CLASSIFICATION

June 30, 2020 June 30, 2019 (1)

Increase/ (Decrease)

% Change

Instruction

$ 2,201,888,980 $ 2,017,527,382 $

184,361,598

9.14 %

Research

1,594,409,119

1,472,916,229

121,492,890

8.25 %

Public Service

464,237,291

442,630,398

21,606,893

4.88 %

Academic Support

705,893,590

664,965,638

40,927,952

6.15 %

Student Services

356,838,705

359,077,696

(2,238,991)

(0.62)%

Institutional Support

1,478,314,861

1,323,922,858

154,392,003

11.66 %

Plant Operations and Maintenance

771,910,294

783,172,411

(11,262,117)

(1.44)%

Scholarships and Fellowships

452,123,081

301,388,665

150,734,416

50.01 %

Auxiliary Enterprises

707,469,928

841,835,875

(134,365,947)

(15.96)%

Patient Care

438,148,190

416,200,756

21,947,434

5.27 %

Total Operating Expenses

9,171,234,039

8,623,637,908

547,596,131

6.35 %

Interest Expense

133,684,315

139,195,925

(5,511,610)

(3.96)%

Other Nonoperating Expense

28,893,369

30,666,469

(1,773,100)

(5.78)%

Total Expenses

$ 9,333,811,723 $ 8,793,500,302 $

540,311,421

6.14 %

(1) The amounts reported for fiscal year 2019 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.

Total operating expenses were $9.2 billion in fiscal year 2020, an increase of $547.6 million (6.35%) when compared with fiscal year 2019.
Pension expense increased $279.5 million primarily related to the Teachers' Retirement System pension plan. For more information, see Note 14 in the Notes to the Financial Statements. Salary and benefit expenses increased $248.4 million due to a combination of merit increases and additional faculty and staff, which supported increases in sponsored research and enrollment. These increases affected all operating expense functional classifications listed in the above table.
Scholarship and fellowship expense increased $148.2 million primarily due to federal CARES Act funds that were to be distributed directly to students as emergency financial aid grants.
Auxiliary Enterprises and Plant Operations and Maintenance functions were primarily effected by decreases in supplies and other services ($107.7 million) and travel ($24.9 million). These decreases in expense were primarily due to strategies to reduce spending and reduced activities on campuses in response to the pandemic during the fourth quarter of fiscal year 2020.

2020 Annual Financial Report 29

The following chart depicts the fiscal year 2020 operating expenses by functional classification. The following chart depicts the fiscal year 2020 operating expenses by natural classification.
30 University System of Georgia

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.
Cash flows for the years ended June 30, 2020 and 2019, condensed, were as follows:

CONDENSED STATEMENT OF NET CASH FLOWS

June 30, 2020

June 30, 2019 (1)

Cash and Cash Equivalents Provided (Used) by:

Operating Activities

$ (2,744,994,217) $ (2,503,201,212)

Non-Capital Financing Activities

3,451,075,955

3,133,143,121

Capital and Related Financing Activities

(624,632,998)

(612,019,643)

Investing Activities

110,384,215

62,849,158

NET CHANGE IN CASH and CASH EQUIVALENTS

$

191,832,955 $

80,771,424

Cash and Cash Equivalents, beginning of year, restated

1,702,068,910

1,570,161,439

CASH and CASH EQUIVALENTS, end of year

$

1,893,901,865 $

1,650,932,863

(1) The amounts reported for fiscal year 2019 were not adjusted for the restatement of beginning cash and cash equivalents. See Note 1 in the Notes to the Financial Statements for more information regarding the restatement.

Capital Assets Capital assets, net of accumulated depreciation, at June 30, 2020 and June 30, 2019 were as follows:

CAPITAL ASSETS, net of accumulated

Increase

depreciation

June 30, 2020 June 30, 2019 (1) (Decrease)

% Change

Land

$ 429,795,155 $ 428,693,618 $ 1,101,537

0.26 %

Capitalized Collections

55,763,568

55,188,954

574,614

1.04 %

Construction Work-in-Progress

232,278,843

197,273,705

35,005,138

17.74 %

Software Development-in-Progress

124,538

5,505,088

(5,380,550) (97.74)%

Infrastructure

233,121,632

235,135,383

(2,013,751)

(0.86)%

Building and Building Improvements

8,336,370,821

8,369,075,255

(32,704,434)

(0.39)%

Facilities and Other Improvements

173,152,104

157,934,643

15,217,461

9.64 %

Equipment

485,295,156

472,303,642

12,991,514

2.75 %

Library Collections

165,803,445

166,496,000

(692,555)

(0.42)%

Capitalized Collections - Depreciable

4,757,106

4,757,089

17

0.00 %

Software

107,406,544

88,522,660

18,883,884

21.33 %

Capital Assets, net of accumulated depreciation

$ 10,223,868,912 $ 10,180,886,037 $ 42,982,875

0.42 %

(1) The amounts reported for fiscal year 2019 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 $43.0 million during fiscal year 2020 when compared with fiscal year 2019.
Major building additions and improvements totaled $281.4 million. These additions and improvements included the Dalney Street Office Building and Parking Deck at Georgia Institute of Technology, Terrell and Kilpatrick Hall Renovation at Georgia College and State University, Brumby Hall Renovation at the University of Georgia, equipping and renovating the Cyber Center Complex and Fine Arts building renovation at Augusta University, a

2020 Annual Financial Report 31

Student Center and Gym renovation at Georgia State University, and an Academic Building Renovation at Kennesaw State University.
For additional information concerning Capital Assets, see Notes 1, 6, 8, and 13 in the Notes to the Financial Statements.
Long-Term Liabilities The University System of Georgia had Long-Term Liabilities of $3.1 billion of which $289.4 million was reflected as a current liability at June 30, 2020. Included in Long-Term Liabilities are lease purchase obligations of $2.8 billion.
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 assets, compensated absences, retirement and other post-employment benefits, capital leases 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 (Plan). The Plan 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. The Plan's OPEB liability for fiscal year 2020 was $5.3 billion. The Plan's OPEB liability for fiscal year 2020 will be reflected on the USG's Statement of Net Position in fiscal year 2021 as allowed by GASB Statement No. 75.
The Plan is essentially funded as pay-as-you-go basis but has accumulated $160 million in assets primarily due to the USG contributing significantly more than the benefit payments during fiscal years 2018 and 2019. For fiscal year 2020, the USG contributed $8.0 million more than benefit payments and administrative expenses.
The Plan's net OPEB liability increased $862.2 million during fiscal year 2020, from $4.5 billion to $5.3 billion primarily due to lowering the discount rate. The Plan's OPEB liability was expected to increase $394.7 million due to normal plan operations and $0.6 million due to administrative expenses. Plan assumption changes (primarily lowering the discount rate) increased the liability $564.2 million and actual experience being worse than plan assumptions increased the liability $94.9 million. These increases were offset $192.2 million due to contributing more than expected ($102.8 million), investment income ($7.5 million) and the adoption of a tiered cost sharing approach to USG's HRA benefit for employees hired after January 1, 2013 and retired after January 1, 2018 ($81.9 million).
The liability increased $564.2 million due to changes in assumptions, including the removal of the excise tax, updated mortality projection scale, revised demographic assumptions based on the May 2020 experience study, and lowering the discount rate. The removal of the excise tax decreased the liability $173.5 million. The mortality improvement scale was updated from MP-2018 to MP-2019 and decreased the liability $19.2 million primarily as a result of the future mortality improvements slowing with MP-2019. The termination rates, spousal coverage percentage, spousal age difference, and participation assumptions were updated based on the USG's most recent experience study. The termination rates and spousal coverage assumptions were lowered and decreased the liability $137.7 million and $235.5 million, respectively. The spouse age assumption was lowered for male spouses and increased the liability by $20.4 million. The participation assumption was increased from 80% to 85% and increased the liability by $159.2 million. The expected claims costs were updated to reflect actual claims experience and decreased the liability $178.8 million. The discount rate was lowered from 3.50% to 2.21% and increased the liability $1.1 billion.
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 The Early Retirement Pension Plan (ERP) is a single-employer defined benefit pension plan administered by Augusta University. The plan was implemented 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.
32 University System of Georgia

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 the USG plays a key role in working with industry to fulfill the need for talent with high-priority skills. The most recent projections indicate that by 2025, over 60% of jobs in Georgia will require some form of postsecondary education. Only about 50% of the Georgia workforce meets this requirement. At the same time, during the recovery from the Great Recession, research has shown that of the 11.6 million jobs created, 99% of them - or 11.5 million jobs - went to workers with at least some postsecondary 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.
The USG continues to see modest growth in enrollment. As mentioned previously, Fall 2020 headcount enrollment reached an all-time high of 341,485, which continues a seven-year trend of modest increases in student enrollment. This also marks the sixth consecutive year that enrollment continued to reach an all-time high in USG's total student enrollment.
The following chart depicts headcount and full-time equivalent from Fall 2011 - Fall 2020.

360,000

USG Enrollment Fall 2011 - Fall 2020

Headcount

Full-time Equivalent (FTE)

340,000 320,000 300,000 280,000 260,000

318,027

314,365

309,469

312,936

318,086

321,551

325,203

328,712

333,507

341,485

281,559

278,319

274,434

276,564

280,732

283,859

286,473

288,303

291,283

294,802

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

There were no tuition increase for the 2020-2021 academic year. No increase in tuition allows USG to continue to offer some of the lowest tuition rates among peer public higher education systems. Out of the 16 states that make up the Southern Regional Education Board, USG has the fourth lowest in-state tuition and fees for undergraduates at four-year institutions. One of the USG's top priorities is affordability, and that has never been more important than now for our students and their families during this pandemic.

2020 Annual Financial Report 33

The USG's economic position is closely tied to the State of Georgia. The impact of the pandemic has affected the State's economy. Due to a decline in state revenues in fiscal year 2020 and projected decline in fiscal year 2021, the state approved a 10% reduction to all state agencies, including the USG. House bill 793 set the USG's fiscal year 2021 state general fund allotment at $2.3 billion, which decreased $260.8 million from the previous fiscal year and reflects the 10% reduction.
The following chart depicts state general fund allotments from fiscal years 2006 to 2021.

State Appropriations (in billions)

$3

$2.6

$2.3

$2.3 $2.4

$2.3

$2.1 $2 $1.8 $1.9

$2.1 $1.9 $1.7 $1.8 $1.9 $1.9 $2.0 $2.1

$1

$0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

The USG's fiscal year 2021 budget totaled $9.4 billion as depicted in the following table:

Education & General Capital Auxiliary Enterprises Student Activities Total Fiscal Year 2021 Budget

Resident Instruction

Other Organized Activities

$

7,109,075,143 $

1,012,801,466 $

109,994,209

1,029,745,945

125,617,248

$

8,374,432,545 $

1,012,801,466 $

Total 8,121,876,609
109,994,209 1,029,745,945
125,617,248 9,387,234,011

The State does not expect further across-the-board budget cuts in fiscal year 2021. As of November 2020, the State's net tax revenue collections totaled $10.17 billion, for an increase of $551.1 million (5.7%) compared to the same period last fiscal year.

34 University System of Georgia

Financial Statements

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION JUNE 30, 2020
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.
36 University System of Georgia

University System of Georgia

Component Units

$

1,628,260,630 $

263,100,044

14,015,658

755,430

513,680,486 101,097,761
79,936,918 215,971,147

87,566,062 14,549,036 287,193,413
-- -- 158,686,994 -- -- -- -- 21,477,010 75,371,465 2,052,742 2,553,028,484

19,015,330 552,000 --
10,123,067 93,617,144 419,046,786
935,318 --
100,352,009 318,171
24,102,526 37,797,215
2,259,310 1,618,805,188

990,440 2,756,081
-- 27,368,399 101,681,768 28,757,196
-- -- 2,868,572 2,541,191 41,891 297,770,445 10,223,868,912 10,688,644,895 13,241,673,379

$

1,401,429,812 $

-- -- 117,677,967 42,103,874 758,602,566 -- 2,210,200,752 19,046,766 39,070,285 219,341,273 48,077,516 3,160,876,961 1,271,878,456 7,886,876,416 9,505,681,604
53,567,073

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION JUNE 30, 2020
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

$

166,231,899 $

99,585,429

33,384,272

13,759,731

46,894,675

7,108

12,835,636

1,725,624

6,605,455

1,425,125

2,052,958

41,106,810

2,254,461

6,900

10,123,067

--

--

287,193,413

--

--

236,242,316

196,627,210

7,960,369

10,993,824

1,227,061

57,202,460

8,819,176

7,043,015

1,699,268

36,344,182

21,364,500

8,749,861

100,352,009

--

--

190,713,299

--

2,481,811

1,265,989

--

2,382,236

250,000

162,311,938

24,322,460

824,007,285

979,538,262

-- -- -- 6,129,733 -- 8,843,132 477,850,888 2,210,200,752 -- -- -- 1,102,829 99,268,663 4,471,567,995 3,360,176,090 10,635,140,082 11,459,147,367

$

1,263,250,818 $

299,718 2,756,081
641,380 13,986,640 32,513,792 200,619,132 76,865,652
-- 3,194,002,646
26,938,953 43,944,946
353,932 165,911 6,641,329
-- 3,599,730,112 4,579,268,374
18,104,267

2020 Annual Financial Report 37

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION JUNE 30, 2020
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

$

7,127,418,774 $

347,399,931

184,012,099 275,758,295 (5,666,484,162)

2,471,590,305 1,152,698,792
990,187,008

$

1,920,705,006 $

4,961,876,036

38 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR FISCAL YEAR ENDED JUNE 30, 2020

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

$

2,831,340,895 $

--

(638,633,076)

--

21,833,541

--

1,145,525,877 339,958,387 645,060,196 220,891,867
8,887,920

1,126,856,108 58,192,726
142,180,827 319,385,362 873,371,423 219,573,119

272,202,342 42,277,808
159,971,632 76,850,772 58,286,120
121,491,348 32,648,083 -- --
184,624,255

-- -- -- -- -- -- -- 173,172,566 113,894,208 8,728,389

5,523,217,967

3,035,354,728

1,957,345,662 2,121,912,234 1,419,076,828
26,793,448 62,054,159 498,623,573 190,164,899 2,376,180,421 519,082,815

9,171,234,039

$

(3,648,016,072) $

3,119,349 372,324,638
85,188,513 189,931,540
18,080,931 37,808,380
8,608,151 2,167,628,283
70,362,644
2,953,052,429
82,302,299

2020 Annual Financial Report 39

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR FISCAL YEAR ENDED JUNE 30, 2020

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

$

2,551,358,929 $

32,500,563

778,941,007 10,408,587 93,341,988 67,463,780 59,344,988
(133,684,315) (28,893,369)

50,843,764 3,409,250 --
27,240,143 (43,165,734) (140,840,216) (29,287,543)

3,398,281,595

(99,299,773)

(249,734,477)

(16,997,474)

1,101,706 102,296,731
18,190,311 963,556
11,090,807

-- -- 21,258,158 80,941,958 (1,376,773)

133,643,111

100,823,343

(116,091,366)

83,825,869

2,033,939,402 2,856,970
2,036,796,372

4,878,050,167 --
4,878,050,167

$

1,920,705,006 $

4,961,876,036

40 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF CASH FLOWS FOR FISCAL YEAR ENDED JUNE 30, 2020
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 Gifts and Grants Received for Other Than Capital Purposes Other Noncapital Financing Receipts Other Noncapital Financing Payments
Net Cash Flows Provided by Non-capital Financing Activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital Gifts and Grants Received Proceeds from Sale of Capital Assets Purchases of Capital Assets Principal Paid on Capital Debt and Leases Interest Paid on Capital Debt and Leases
Net Cash Used by Capital and Related Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from Sales and Maturities of Investments Investment Income Purchase of Investments
Net Cash Provided by Investing Activities
Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents - Beginning of Year, Restated
Cash and Cash Equivalents - End of Year
The notes to the financial statements are an integral part of this statement.

University System of Georgia

$

3,359,194,522

21,833,541

2,132,040,040

(3,665,587,501)

(4,102,871,076)

(498,591,919)

(14,428,058)

18,809,231

4,669,685

(62,682)

(2,744,994,217)

2,551,358,929 913,270,923 8,696,762 (22,250,659)
3,451,075,955

94,232,655 21,344,378 (492,151,397) (111,958,580) (136,100,054) (624,632,998)

1,176,591,379 57,788,403
(1,123,995,567) 110,384,215

191,832,955 1,702,068,910

$

1,893,901,865

2020 Annual Financial Report 41

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF CASH FLOWS FOR FISCAL YEAR ENDED JUNE 30, 2020
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 Deposits 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

$

(3,648,016,072)

519,082,815 3,770,064

19,578,002 663,402
(7,653,687) (367,117) 4,736,005
(43,573,580) 3,516,713 (1,081,174) (352,093) 491,554 (6,097,265)
(10,727,296) 102,092 884,025
30,177,104 (755,971) 119,548
(2,378,631) 471,041,108
60,816,895

(160,641,769) 21,671,111

$

(2,744,994,217)

42 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF CASH FLOWS FOR FISCAL YEAR ENDED JUNE 30, 2020

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 increased $22,855,241 during the fiscal year.
Amortization of Non-capital Financing Activities Advances and Deferred Inflows. Non-capital Financing Activities Advances and Deferred Inflows decreased $11,189,305 during the fiscal year.
Other Noncapital Financing Activities Noncash Items
Capital Financing Activities Noncash Items:
Current Year Accruals Related to Capital Financing Activities. Capital Grants and Gifts Receivables increased $4,310,155 during the fiscal year.
Gift of Capital Assets, which includes Capital Grants of $14,996,229, Service Concession Arrangements of $287,118, and Special Items of $11,090,807.

University System of Georgia

$

3,770,064

$

40,455,922

$

16,925,702

$

33,387

$

17,744,901

$

26,374,154

Gain (Loss) on Disposal of Capital Assets, which includes disposal of Construction Work-in-Progress of $1,618,550.

$

Accrual of Capital Asset Related Payables. Capital Asset related Payables decreased $5,765,356 during the fiscal year.

$

Capital Assets Acquired Through Prepaid Capital. Prepaid Capital Assets increased $8,723,348 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

$

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 $227,216 during the fiscal year. $

Other Capital Financing Activities Noncash Items

$

Investing Activities Noncash Items:

Unrealized Gain (Loss) on Investments

$

(26,245,925) 16,369,958
5,998,842 73,414,920
7,411,618 2,159,581
21,082 8,701,477 2,052,958 5,721,646
1,556,585

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

2020 Annual Financial Report 43

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF FIDUCIARY NET POSITION JUNE 30, 2020

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 Receivables Due From Affiliated Organizations Other Prepaid Items

Pension and Other Post Employment Benefit Trust Funds

Early Retirement

Deferred

Plan - Augusta University

Compensation Fund

Retiree Health Benefit Fund

Custodial Funds

Investment Pool

Student Support

Total

$ 5,892,546 $

232,781 $ 13,928,636 $ 7,849,686 $

-- $ 27,903,649

25,415,643 39,167,386
-- 34,666,696
-- -- --
-- -- --

915,144 1,633,693
96,070 --
130,762 --
91,413

-- -- -- -- -- 151,590,351 --

--

--

--

324,649

55,338

-- -- -- -- -- 58,278,199 --
-- -- --

--

26,330,787

--

40,801,079

--

96,070

--

34,666,696

--

130,762

--

209,868,550

--

91,413

22,692 79,113,910
--

22,692 79,438,559
55,338

Total Assets

105,142,271

3,099,863

165,898,974

66,127,885

79,136,602

419,405,595

LIABILITIES Cash Overdraft Accounts Payable Benefits Payable Advances Deposits Held for Other Organizations Other Liabilities
Total Liabilities
NET POSITION Restricted for: Pension Benefits Other Employment Benefits Other Postemployment Benefits Pool Participants Individuals, Organizations, and Other Governments

--

--

--

--

62,972,396

62,972,396

--

--

--

--

1,813,536

1,813,536

--

--

5,921,267

--

--

5,921,267

--

--

--

--

3,653,035

3,653,035

--

--

--

--

413,473

413,473

--

--

--

--

1,130

1,130

--

--

5,921,267

--

68,853,570

74,774,837

105,142,271 -- -- --
--

-- 3,099,863
-- --
--

-- -- 159,977,707 --
--

-- -- -- 66,127,885
--

--

105,142,271

--

3,099,863

--

159,977,707

-- -- 66,127,885

10,283,032 -- 10,283,032

Total Net Position

$ 105,142,271 $ 3,099,863 $ 159,977,707 $ 66,127,885 $ 10,283,032 $ 344,630,758

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

44 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR FISCAL YEAR ENDED JUNE 30, 2020

ADDITIONS Contributions Employer Pool Participant Deposits Federal Financial Aid State Financial Aid Other Financial Aid Clubs and Other Organizations Fund Raising Public-Private Partnership Passthrough

Pension and Other Post Employment Benefit Trust Funds

Early Retirement

Deferred

Plan - Augusta

Compensation

Retiree Health

University

Fund

Benefit Fund

Custodial Funds

Investment

Student

Pool

Support

Total

$ 11,474,114 $ -- -- -- --
--
--

798,918 $ -- -- -- --

102,792,000 $ -- -- -- --

--

--

--

--

-- 7,594,382
-- -- --

$

--

--

1,336,305,349

739,174,953

124,830,282

$ 115,065,032 7,594,382
1,336,305,349 739,174,953 124,830,282

--

11,214,612

11,214,612

--

66,894,528

66,894,528

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

2,160,769
545,597 (166,699)

181,211
(29,653) (2,428)

4,809,529
2,914,745 (197,118)

1,331,134
(820,924) (83,240)

1,119
339 (161)

8,483,762
2,610,104 (449,646)

Total Additions

14,013,781

948,048

110,319,156

8,021,352

2,278,421,021

2,411,723,358

DEDUCTIONS Benefits Premium Expense Withdrawal Administrative Expense Pool Participant Withdrawals Scholarships and Other Student Support Student Organizations Support Public-Private Partnership Passthrough Other Payments
Total Deductions

14,247,377 -- -- -- --
-- --
-- --
14,247,377

-- -- 2,286,285 -- --
-- --
-- --
2,286,285

89,012,971 5,197,649 -- 585,257 --
-- --
-- --
94,795,877

-- -- -- -- 2,964,716
-- --
-- --

-- -- -- --
2,202,641,021 11,772,428
73,633,254 75,203

103,260,348 5,197,649 2,286,285 585,257 2,964,716
2,202,641,021 11,772,428
73,633,254 75,203

2,964,716

2,288,121,906

2,402,416,161

Change in Net Position for
Pension and Other Employee Benefits Pool Participants Other Purposes
Net Position, Beginning of Year Net Position, Beginning of Year, As Originally Reported Prior Year Adjustments
Net Position, Beginning of Year, Restated

(233,596) -- --
105,375,867 --
105,375,867

(1,338,237) -- --

15,523,279 --

4,438,100 --

144,454,428 --

4,438,100

144,454,428

-- 5,056,636
--
-- 61,071,249
61,071,249

-- -- (9,700,885)

13,951,446 5,056,636 (9,700,885)

-- 19,983,917

254,268,395 81,055,166

19,983,917

335,323,561

Net Position, End of Year

$ 105,142,271 $

3,099,863 $ 159,977,707 $ 66,127,885 $ 10,283,032 $ 344,630,758

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

2020 Annual Financial Report 45

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS JUNE 30, 2020

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 Georgia College &

Technology

State University

Ventures, Inc.

Foundation, Inc.

Georgia Gwinnett College
Foundation Inc.

$

6,746,512 $

6,924,938 $ 154,768,143 $

21,737,027 $

3,576,198

--

1,235,936

812,083

1,572,604

--

41,537,543

--

654,000

--

10,492,062

--

-- -- -- -- 118,069 13,625 -- -- 2,081,162 -- -- 18,279 -- 14,780,449

5,336,106 -- -- -- -- -- -- -- -- -- -- -- --
12,261,044

-- -- -- 1,793,501 -- 153,631,623 -- -- 1,255,961 -- 24,102,526 18,222,540 -- 407,039,835

-- -- -- -- 117,474 75,299 17,318 -- 1,396,944 (81,733) -- 7,492 613,310 24,695,214

3,562,763 $ -- -- --

1,182,633 -- -- --

-- -- -- -- 813,412 8,975 -- -- 3,124,138 -- -- 12,702 -- 7,521,990

-- -- -- 3,146 106,160 7,755 -- -- 12,399,560 -- -- -- -- 13,699,254

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

-- 140,260
-- 1,405,698 27,429,148
-- 204,387
-- -- 27,578,729 -- 56,758,222 71,538,671

-- -- -- 4,993,727 -- -- -- 69,973 -- -- -- 5,063,700 17,324,744

-- -- 28,179,803 119,499,299 20,036,901 -- 5,377,889 -- -- 4,731,380 254,671,703 432,496,975 839,536,810

-- 551,414
-- 15,000 61,859,458 16,178,840 329,012 1,197,335
-- -- 82,546,755 162,677,814 187,373,028

-- 506,689
-- 10,840,527 76,431,399
-- 50,241
-- -- 41,633,399 2,815,779 132,278,034 139,800,024

-- 16,817
-- 11,305,953 143,936,668
-- 9,943 9,107,515
-- -- 8,936,377 173,313,273 187,012,527

DEFERRED OUTFLOWS OF RESOURCES

$

-- $

-- $

3,698,961 $

-- $

-- $

--

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, 2020

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 Georgia College &

Technology

State University

Ventures, Inc.

Foundation, Inc.

Georgia Gwinnett College
Foundation Inc.

$

419,500 $

1,132,336 $

81,614,361 $

1,048,277 $

1,290,872 $

3,708,568

--

--

10,850,685

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

400

--

--

--

(52,640)

--

--

--

95,512

5,529,314

67,309,697

424,210

179,851

26,934

--

--

--

--

--

--

926,899

--

67,792,963

2,180,219

--

443,867

--

--

--

177,228

--

--

--

--

--

--

3,865,869

--

--

21,130

5,565,149

292,476

--

--

--

--

--

280,550

48,350

130,771

--

--

5,924,708

2,101,701

--

--

1,075,000

--

5,330,000

1,105,000

3,310,000

4,460,000

--

--

--

--

--

--

--

--

--

--

--

--

--

--

23,599,910

--

--

--

2,516,911

6,682,780

267,934,833

7,609,661

8,695,342

8,770,140

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

-- -- -- -- 5,889,291 -- -- -- 20,870,463 -- -- -- -- 26,759,754 29,276,665

-- -- -- -- -- -- -- -- -- -- -- -- -- -- 6,682,780

-- -- -- -- -- 19,228,538 -- 24,661,163 202,385,455 -- 28,181,020 -- 6,641,329 281,097,505 549,032,338

-- -- -- -- 4,331,675 323,870 6,041,527 48,802,206 59,200,504 -- -- -- -- 118,699,782 126,309,443

-- -- 1,474,681 -- -- -- -- -- 86,137,047 735,685 6,714,882 -- -- 95,062,295 103,757,637

-- -- -- -- -- -- 1,908,913 -- 157,033,558 -- -- -- -- 158,942,471 167,712,611

DEFERRED INFLOWS OF RESOURCES

--

--

872,879

--

--

--

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

--

--

54,305,828

26,093,896

2,815,779

8,262,388

19,855,144

--

--

--

22,509,389

2,582,727

18,434,320

69,973

16,459,378

7,098,749

8,975,337

1,040,014

3,972,542

10,571,991

222,565,348

27,870,940

1,741,882

7,414,787

$

42,262,006 $

10,641,964 $ 293,330,554 $

61,063,585 $

36,042,387 $

19,299,916

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

2020 Annual Financial Report 47

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS JUNE 30, 2020

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

$

255,811 $

--

2,725,663

10,894,655

4,383,703 $ --
5,208,414 --

-- -- -- -- 1,047,472 -- -- -- -- -- -- 181,625 -- 15,105,226

-- -- -- -- -- 1,186,662 -- -- 9,732,378 -- -- 73,755 -- 20,584,912

2,283,318 $ -- -- --

5,944,158 $ 8,023,859
-- --

7,107,902 $ 5,857,368

2,753,576 -- --
87,179,950

-- --
894,975 71,917
474,554 -- -- -- -- --
218,475 --
3,943,239

-- -- -- -- 3,841,340 790,995 -- -- 3,831,718 -- -- -- -- 22,432,070

13,679,224 -- --
2,451,482 --
3,568,430 -- --
2,544,826 -- --
17,139,468 --
52,348,700

-- -- -- -- 15,177,413 9,142,419 -- -- -- -- -- 608,729 -- 114,862,087

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

-- 595,072
-- -- -- -- -- -- -- 5,088,842 2,295,000 7,978,914 23,084,140

-- -- -- -- 194,062,867 -- -- 50,640,720 -- -- 2,560,419 247,264,006 267,848,918

-- 4,663,143
-- 3,614,850
-- -- -- -- -- -- 474,725 8,752,718 12,695,957

-- 6,552,191
-- 27,899,786 110,083,369
-- 6,287,895
-- -- 213,200,240 14,606,183 378,629,664 401,061,734

-- -- 72,000 14,139,108 65,074,274 -- -- -- -- -- 7,561,438 86,846,820 139,195,520

-- 15,063,786
-- -- -- -- 722,612 -- 44,375,549 110,095,282 169,262,105 339,519,334 454,381,421

DEFERRED OUTFLOWS OF RESOURCES

$

-- $

-- $

-- $

-- $

7,518,505 $

13,385,934

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, 2020

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

$

63,110 $

3,711,487 $

55,753 $

3,778,333 $

1,993,594 $

5,670,650

--

--

18,206

--

--

--

--

--

7,108

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

52,640

--

--

--

--

3,917

948,795

1,235,563

--

18,898,646

6,839,483

--

--

--

--

--

--

299,144

6,226

155,612

1,265,757

--

1,935,688

--

--

--

--

--

10,575,154

--

--

--

2,373,921

--

--

--

--

--

1,140,403

--

--

--

--

--

--

12,950,959

--

--

16,511

--

--

278,788

--

8,760,000

--

4,440,000

2,425,000

82,390,000

1,625

--

--

--

--

--

--

--

--

--

--

250,000

--

--

271,550

--

--

--

420,436

13,426,508

1,760,303

12,998,414

23,317,240

120,890,722

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 Compensated Absences Total Non-Current Liabilities
TOTAL LIABILITIES

-- -- -- -- -- -- -- -- -- 7,841 -- -- -- 7,841 428,277

-- -- 1,281,400 -- 56,553 10,558 -- -- 216,804,088 -- -- -- -- 218,152,599 231,579,107

-- -- -- -- -- -- -- 6,184 -- -- -- -- 165,911 172,095 1,932,398

-- -- -- -- -- 3,269,896 -- -- 119,180,582 1,153,932 -- -- -- 123,604,410 136,602,824

-- -- -- -- -- -- -- -- 75,508,591 -- -- -- -- 75,508,591 98,825,831

-- -- -- -- -- -- 12,237,152 557,576 272,490,112 -- -- 353,932 -- 285,638,772 406,529,494

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

17,231,388

--

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

2,295,000

2,560,419

452,030

14,606,183

7,561,438

(55,643,050)

2,963,300

--

--

133,701,642

1,550,000

46,799,715

14,241,242

35,258,934

7,265,713

89,892,109

7,262,810

90,434,229

3,156,321

(1,549,542)

3,045,816

26,258,976

14,282,558

(20,353,033)

$

22,655,863 $

36,269,811 $

10,763,559 $ 264,458,910 $

30,656,806 $

61,237,861

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

2020 Annual Financial Report 49

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS JUNE 30, 2020

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.

$

11,368,181 $

17,655,000 $ 139,275,464 $

24,694,203 $

10,424,856

11,792,000

--

--

--

--

--

10,220,514

--

--

--

--

-- -- 643,000 45,379 -- 363,014 -- -- 10,926,055 -- -- 278,781 -- 34,049,266

-- 552,000
-- 3,331,000 36,860,000 20,141,000
918,000 --
10,078,000 -- -- --
1,646,000 102,973,000

-- -- -- -- -- 168,258,325 -- -- -- 399,904 -- 84,224 -- 308,017,917

-- -- -- 320,705 6,859,857 252,292 -- -- 9,437,839 -- -- 71,349 -- 51,856,759

1,124,178 $ 89,941 -- --
-- -- -- 1,047 729,707 -- -- -- -- -- -- -- -- 1,944,873

1,362,026 -- -- --
-- -- -- -- -- 119,743 -- -- 827,356 -- -- 7,275 -- 2,316,400

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

4,805,000 --
61,483 --
226,781,701 --
3,100,000 84,374,337
-- -- 57,307,414 376,429,935 410,479,201

-- 36,301,000 13,774,000 392,220,000 106,795,000
-- 19,038,000
-- -- 1,501,569,000 148,242,000 2,217,939,000 2,320,912,000

-- -- -- 62 -- 2,866,772 -- -- -- -- 899,551 3,766,385 311,784,302

-- 3,324,007
-- 19,778,127 201,896,481
-- -- 48,721,726 -- 44,500,352 81,546,571 399,767,264 451,624,023

-- 737,374
16,588 34,770,396
-- -- 203,000 -- -- 219,895,602 15,758,076 271,381,036 273,325,909

-- -- -- -- 30,847,952 -- -- -- 3,701,967 -- 989,605 35,539,524 37,855,924

DEFERRED OUTFLOWS OF RESOURCES

$

-- $

-- $

-- $

-- $

-- $

--

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, 2020

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.

$

6,945,210 $

5,550,000 $

-- $

8,612,164 $

--

--

--

--

--

--

--

--

--

--

--

--

1,425,125

--

--

--

--

--

--

--

--

--

--

--

--

643,000

--

--

170,315

8,791,000

103,326,748

795,654

--

--

--

--

1,280,531

15,844,000

67,868,142

357,491

--

218,000

--

23,442

--

--

54,749,382

79,157

--

--

--

--

--

19,048,000

--

--

--

--

428,153

--

11,579,000

13,165,000

--

13,320,000

--

1,646,000

--

550

--

--

--

--

--

451,000

--

--

21,400,181

65,356,000

226,372,425

23,188,458

304,388 $ -- -- -- -- -- -- --
450,368 -- -- -- --
23,857 80,149
-- -- -- -- -- 858,762

736,891 -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
830,000 -- -- --
1,566,891

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

-- -- -- -- 7,915,923 -- -- -- 339,435,361 -- -- -- -- 347,351,284 368,751,465

300,000 114,900,000
-- -- -- 9,433,000 69,487,000 -- 243,728,000 16,403,000 -- -- -- 454,251,000 519,607,000

-- -- -- -- -- -- -- 2,838,523 -- -- -- -- -- 2,838,523 229,210,948

-- -- -- -- -- -- 1,560,000 -- 331,797,804 1,715 -- -- -- 333,359,519 356,547,977

-- -- -- -- -- -- 10,839,792 -- -- 814,400 -- -- -- 11,654,192 12,512,954

-- -- -- -- -- -- -- -- 30,324,480 -- -- -- -- 30,324,480 31,891,371

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

--

--

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

23,448,362

(9,748,000)

899,551

(31,403,940)

5,018,470

--

1,393,639,000

--

48,656,483

135,902,804

7,937,599

205,489,000

--

30,960,562

86,254,407

10,341,775

211,925,000

81,673,803

46,862,941

33,637,274

$

41,727,736 $ 1,801,305,000 $

82,573,354 $

95,076,046 $ 260,812,955 $

989,605
-- -- 4,974,948 5,964,553

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

2020 Annual Financial Report 51

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS JUNE 30, 2020

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.

$

60,047,599 $

5,015,111 $

28,672,198 $

--

29,787,516

--

--

17,972,812

--

--

106,750,480

--

2,444,269 $ 4,968,116
-- --

1,212,355 $ 5,374,595
699,368 --

868,771 19,155,293
-- --

-- -- 58,884 35,451 -- 1,934,714 -- -- -- -- -- 297,229 -- 62,373,877

-- -- -- -- 32,071,873 2,174,115 -- -- -- -- -- 135,353 -- 193,907,260

-- -- -- 1,093,936 -- 56,903,246 -- -- 9,280,360 -- -- 246,544 -- 96,196,284

-- -- -- -- -- -- -- -- 4,425,916 -- -- 177,725 -- 12,016,026

-- -- -- -- -- -- -- -- 3,130,283 -- -- -- -- 10,416,601

-- -- -- -- 537,510 -- -- -- 13,674,378 -- -- -- -- 34,235,952

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

-- -- -- 49,827,507 -- -- 247,930 -- -- -- 335,278,406 385,353,843 447,727,720

-- 48,892,624
-- 183,185,166
-- -- 2,678,425 -- -- 975,366,142 33,896,491 1,244,018,848 1,437,926,108

-- -- -- 50,751,857 218,433,467 -- 820,951 -- -- 5,765,025 30,216,291 305,987,591 402,183,875

-- -- -- 2,100,000 119,124,106 -- -- 5,592,227 -- -- 3,393,144 130,209,477 142,225,503

-- -- -- 260,214 108,162,094 -- -- 3,584,449 -- -- -- 112,006,757 122,423,358

-- 333,590
-- 5,366,599 361,785,460
-- -- 16,052,991 -- -- 18,393,085 401,931,725 436,167,677

DEFERRED OUTFLOWS OF RESOURCES

$

13,653,582 $

-- $

15,310,091 $

-- $

-- $

--

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

52 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS JUNE 30, 2020

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.

$

2,712,386 $

148,243 $

1,821,177 $

2,890,840

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

6,500

--

58,884

--

7,851,616

5,396,788

58,766,557

--

--

--

33,780,208

817,234

2,145,936

--

--

--

--

56,220,840

--

--

--

--

--

537,821

--

--

--

--

5,785,000

--

10,575,000

--

833,636

--

--

--

--

--

--

--

53,020,050

64,013,446

73,315,170

2,482,253 $ -- -- -- -- -- -- -- -- --
365,385 -- -- --
405,000 --
3,304,299 -- -- --
6,556,937

1,011,482 $ -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
3,460,000 -- -- --
4,471,482

3,459,926 -- --
1,725,624 -- -- -- -- -- -- -- -- -- --
2,862,582 --
10,945,000 -- -- --
18,993,132

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

-- -- -- -- -- 247,930 1,000 -- 82,389,961 -- 5,065,455 -- -- 87,704,346 140,724,396

-- -- -- 641,380 -- -- 13,958,821 -- -- 7,822,380 3,983,589 -- -- 26,406,170 90,419,616

-- -- -- -- 1,682,489 -- 14,041,222 -- 225,602,559 -- -- -- -- 241,326,270 314,641,440

-- -- -- -- -- -- 405,000 -- 121,584,289 -- -- -- -- 121,989,289 128,546,226

-- -- -- -- -- -- -- -- 111,350,982 -- -- -- -- 111,350,982 115,822,464

-- -- -- -- -- -- 70,138,705 -- 336,114,126 -- -- -- -- 406,252,831 425,245,963

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

--

--

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

255,690,572

19,399,849

16,175,069

3,393,144

--

662,819,852

--

--

524,012,221

--

64,966,334

141,274,570

86,677,457

$ 320,656,906 $ 1,347,506,492 $ 102,852,526 $

-- -- 10,286,133 13,679,277 $

--

--

-- -- 6,600,894 6,600,894 $

610,249 1,612,195 8,699,270 10,921,714

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

2020 Annual Financial Report 53

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS JUNE 30, 2020
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

$

2,290,647 $

--

--

--

-- $ -- -- --

513,680,486 101,097,761
79,936,918 215,971,147

-- -- -- -- -- -- -- -- 5,334,029 -- -- 15,670 -- 7,640,346

-- -- (701,884) 152,445 (4,735,060) -- -- -- (3,128,894) -- -- -- -- (8,413,393)

19,015,330 552,000 --
10,123,067 93,617,144 419,046,786
935,318 --
100,352,009 318,171
24,102,526 37,797,215
2,259,310 1,618,805,188

-- -- -- -- 155,076,250 -- -- -- -- 11,452,968 227,338 166,756,556 174,396,902

(4,805,000) -- --
(173,371,310) (17,615,843) 1,154 -- -- -- -- --
(195,790,999) (204,204,392)

-- 117,677,967
42,103,874 758,602,566 2,210,200,752
19,046,766 39,070,285 219,341,273 48,077,516 3,160,876,961 1,271,878,456 7,886,876,416 9,505,681,604

$

-- $

-- $

53,567,073

54 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS JUNE 30, 2020
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 Compensated Absences 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

$

2,421,278 $ (41,106,810) $ 99,585,429

--

--

13,759,731

--

--

7,108

--

--

1,725,624

--

--

1,425,125

--

41,106,810

41,106,810

--

--

6,900

--

(701,884)

--

--

152,445

287,193,413

--

--

--

--

(838,092)

196,627,210

--

--

10,993,824

--

(60,086,709)

57,202,460

--

--

7,043,015

--

--

36,344,182

--

--

8,749,861

4,455,000

--

190,713,299

--

--

2,481,811

--

--

250,000

--

--

24,322,460

6,876,278

(61,474,240)

979,538,262

-- -- -- -- -- -- -- -- 162,064,684 -- -- -- -- -- 162,064,684 168,940,962
--

(282) (114,900,000)
-- -- (5,889,291) -- -- -- -- -- -- -- -- -- (120,789,573) (182,263,813)

299,718 --
2,756,081 641,380
13,986,640 32,513,792 200,619,132 76,865,652 3,194,002,646 26,938,953 43,944,946
353,932 165,911 6,641,329 3,599,730,112 4,579,268,374

--

18,104,267

227,338

--

347,399,931

--

--

2,471,590,305

--

--

1,152,698,792

5,228,602

(21,940,579)

990,187,008

$

5,455,940 $ (21,940,579) $ 4,961,876,036

2020 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, 2020

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 Institute, Inc.

AU Health Systems, Inc.

Georgia Advanced Technology
Ventures, Inc.

Georgia College & State University Foundation, Inc.

Georgia Gwinnett College
Foundation Inc.

$

-- $

56,968,099 $

-- $

-- $

-- $

--

--

--

--

--

--

--

19,042

8,835,961

--

26,493

--

--

457,141

--

81,867,386

225,001

--

46,842

873,371,423

181,717

262,883

759,990

17,095,134

4,674,693

8,184,047

4,741,765

396,506

--

332,200

1,768,623

1,247,984

221,984

--

--

--

1,185,117

--

--

--

--

461,684

113,455

340,678

Total Operating Revenues

5,621,649

66,463,449

955,998,799

18,140,512

7,741,888

9,819,551

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

123,935 1,023,389
388,779 123,879
75,793 582,463
-- 694,854
--

-- -- -- -- -- -- -- 65,937,568 --

-- 329,232,345
80,331,825 188,508,837
472,285 --
4,310,773 398,985,931
36,433,863

-- 460,699
-- -- -- -- 26,215 7,488,948 2,613,343

-- 512,296
-- -- 28,986 935,747 641 1,724,425 --

89,549 321,076
-- -- 8,787 271,482 -- 1,633,650 457

Total Operating Expenses

3,013,092

65,937,568

1,038,275,859

10,589,205

3,202,095

2,325,001

Operating Income (Loss)

$

2,608,557 $

525,881 $ (82,277,060) $

7,551,307 $

4,539,793 $

7,494,550

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, 2020

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)

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.

$

-- $

-- $

32,500,563 $

-- $

-- $

--

-- -- -- 1,053,133 (1,630,430) --

-- -- -- 247,993 -- --

50,843,764 3,409,250 -- 7,344,788 (9,989,003) (8,531,438)

-- -- -- 267,721 (5,346,181) --

-- -- -- (1,381,500) (3,847,162) --

-- -- -- 336,752 (5,778,277) --

Net Nonoperating Revenues

(577,297)

247,993

75,577,924

(5,078,460)

(5,228,662)

(5,441,525)

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

2,031,260

773,874

(6,699,136)

2,472,847

(688,869)

2,053,025

Capital Grants and Gifts Other
Additions to Permanent and Term Endowments Special Item

-- 340,700
--

--

1,935,771

--

--

--

--

--

--

--

1,448,671

--

--

-- 67,921
--

Total Other Revenues, Expenses, Gains or Losses

340,700

--

1,935,771

--

1,448,671

67,921

Change in Net Position Net Position, Beginning of Year

2,371,960 39,890,046

773,874 9,868,090

(4,763,365) 298,093,919

2,472,847 58,590,738

759,802 35,282,585

2,120,946 17,178,970

Net Position, End of Year

$

42,262,006 $

10,641,964 $ 293,330,554 $

61,063,585 $

36,042,387 $

19,299,916

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

2020 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, 2020

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

$

-- $

--

268,317

477,045

-- $ -- -- --

-- $ -- -- 20,375,077

-- $ -- -- --

79,272,112 $ 1,790,899
22,181,873 --

-- -- -- 55,367,226

12,300 7,499,515
5,696 --

10,570,294 -- --
3,575,624

364,230 10,472,603
-- 1,235,174

17,038,547 15,202,614
7,239,715 1,102,442

3,075,309 -- -- --

8,421,556 4,113,453
-- --

Total Operating Revenues

8,262,873

14,145,918

32,447,084

40,583,318

106,320,193

67,902,235

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

291,954 1,293,927
490,135 172,648 110,172 1,189,019
-- 4,510,675
--

-- -- -- 351,005 -- -- -- 2,734,385 --

-- 9,161,661 2,907,497
-- 1,084,712 7,815,632
292,131 12,668,229
129,584

-- 2,732,237
-- -- 717,542 7,718,200 -- 21,471,835 665,798

-- -- -- -- 21,809 -- 4,824 101,637,977 713,170

-- -- -- -- 5,279,519 12,039,648 -- 60,956,573 8,097,781

Total Operating Expenses

8,058,530

3,085,390

34,059,446

33,305,612

102,377,780

86,373,521

Operating Income (Loss)

$

204,343 $

11,060,528 $

(1,612,362) $

7,277,706 $

3,942,413 $ (18,471,286)

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, 2020

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)

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

$

-- $

-- $

-- $

-- $

-- $

--

-- -- -- 415,681 -- --

-- -- -- 419,073 (8,041,555) --

-- -- -- 56,514 -- --

-- -- -- (7,641,636) (3,580,884) --

-- -- -- 550,233 (2,555,086) 413,315

-- -- -- 1,782,364 (16,759,684) (137,400)

Net Nonoperating Revenues

415,681

(7,622,482)

56,514

(11,222,520)

(1,591,538)

(15,114,720)

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

620,024

3,438,046

(1,555,848)

(3,944,814)

2,350,875

(33,586,006)

Capital Grants and Gifts Other
Additions to Permanent and Term Endowments Special Item

--

--

--

--

--

19,322,387

215,261

--

--

--

--

3,423,787

--

--

--

--

--

--

Total Other Revenues, Expenses, Gains or Losses

215,261

--

--

--

--

22,746,174

Change in Net Position Net Position, Beginning of Year

835,285 21,820,578

3,438,046 32,831,765

(1,555,848) 12,319,407

(3,944,814) 268,403,724

2,350,875 28,305,931

(10,839,832) 72,077,693

Net Position, End of Year

$

22,655,863 $

36,269,811 $

10,763,559 $ 264,458,910 $

30,656,806 $

61,237,861

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

2020 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, 2020

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.

$

-- $

-- $ 793,564,796 $

-- $

-- $

--

--

--

19,925,037

--

--

--

--

--

79,096,484

--

--

--

363,056

10,000

--

356,260

--

--

13,880,706 -- --
22,831

30,074,000 40,544,000 60,735,000
--

13,384,167 -- -- --

37,150,736 16,360,620
1,262,788 --

37,170 916,581 7,366,198 734,250

1,749,644 -- -- --

Total Operating Revenues

14,266,593

131,363,000

905,970,484

55,130,404

9,054,199

1,749,644

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

-- -- -- -- -- -- 193,750 2,286,339 736,943

-- 2,835,000
683,000 89,000 12,000 --
942,000 89,817,000
3,031,000

-- -- -- -- 86,720 -- -- 896,153,532 254,948

-- 1,659,782
-- 31,753 184,523 2,681,983 2,810,616 14,089,962 5,092,671

2,613,911 1,450,776
-- 654,418 151,940 3,187,951
27,201 2,975,381
126,510

-- -- -- -- -- -- -- 60,438 25,206

Total Operating Expenses

3,217,032

97,409,000

896,495,200

26,551,290

11,188,088

85,644

Operating Income (Loss)

$

11,049,561 $

33,954,000 $

9,475,284 $

28,579,114 $

(2,133,889) $

1,664,000

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, 2020

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)

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.

$

-- $

-- $

-- $

-- $

-- $

--

-- -- -- 456,577 (10,123,422) (38,846)

-- -- -- (33,016,000) (12,978,000) --

-- -- -- 369,613 -- (303,642)

-- -- -- 1,283,131 (12,991,755) (5,330,726)

-- -- -- (3,869,028) 4,220 --

-- -- -- 45,543 (1,437,378) --

Net Nonoperating Revenues

(9,705,691)

(45,994,000)

65,971

(17,039,350)

(3,864,808)

(1,391,835)

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

1,343,870

(12,040,000)

9,541,255

11,539,764

(5,998,697)

272,165

Capital Grants and Gifts Other
Additions to Permanent and Term Endowments Special Item

--

--

--

--

--

--

--

31,382,000

--

--

2,802,015

--

--

--

--

--

--

--

Total Other Revenues, Expenses, Gains or Losses

--

31,382,000

--

--

2,802,015

--

Change in Net Position Net Position, Beginning of Year

1,343,870 40,383,866

19,342,000 1,781,963,000

9,541,255 73,032,099

11,539,764 83,536,282

(3,196,682) 264,009,637

272,165 5,692,388

Net Position, End of Year

$

41,727,736 $ 1,801,305,000 $

82,573,354 $

95,076,046 $ 260,812,955 $

5,964,553

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

2020 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, 2020

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.

$

-- $

--

--

151,404,446

-- $ -- -- 7,815,832

197,051,101 $ 36,476,790 31,752,657 --

-- $ -- -- --

-- $ -- -- --

-- -- -- 620,050

--

695,966

26,063,022

--

68,756,040

--

--

35,877,710

--

--

--

--

6,365,214 161,615 -- 58,586

6,066,613 -- -- --

4,976,607 1,646,198
-- --

Total Operating Revenues

151,404,446

113,145,548

291,343,570

6,585,415

6,066,613

7,242,855

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

-- 16,915,635
387,277 --
9,671,035 -- --
102,217,398 10,935,591

-- 4,167,954
-- -- 128,613 100,550 -- 97,613,361 1,239,072

-- -- -- -- -- -- -- 278,464,572 114,323

-- 113,723
-- -- -- -- -- 1,082,376 152,384

-- -- -- -- -- -- -- 511,099 --

-- 444,138
-- -- 46,495 1,285,705 -- 1,697,586 --

Total Operating Expenses

140,126,936

103,249,550

278,578,895

1,348,483

511,099

3,473,924

Operating Income (Loss)

$

11,277,510 $

9,895,998 $

12,764,675 $

5,236,932 $

5,555,514 $

3,768,931

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

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, 2020

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)

University of Georgia Athletic Association, Inc.

University of Georgia
Foundation

University of Georgia Research Foundation, Inc.

University of North Georgia Real Estate
Foundation, Inc.

UWG Real Estate Foundation, Inc.

University System of Georgia
Foundation, Inc.

$

-- $

-- $

-- $

-- $

-- $

--

-- -- 27,240,143 697,734 (4,051,795) (4,538,467)

-- -- -- (18,053,632) (2,269,285) 1,117,013

-- -- -- 2,137,404 (9,762,811) (106,769)

-- -- -- 2,102,477 (3,916,692) --

-- -- -- 132,332 (4,842,314) --

-- -- -- 456,014 (13,388,936) (8,911,362)

Net Nonoperating Revenues

19,347,615

(19,205,904)

(7,732,176)

(1,814,215)

(4,709,982)

(21,844,284)

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

30,625,125

(9,309,906)

5,032,499

3,422,717

845,532

(18,075,353)

Capital Grants and Gifts Other
Additions to Permanent and Term Endowments Special Item

--

--

--

--

--

26,570,257

--

--

--

--

(1,376,773)

--

--

--

--

14,691,346

--

--

Total Other Revenues, Expenses, Gains or Losses

--

26,570,257

(1,376,773)

--

--

14,691,346

Change in Net Position Net Position, Beginning of Year

30,625,125 290,031,781

17,260,351 1,330,246,141

3,655,726 99,196,800

3,422,717 10,256,560

845,532 5,755,362

(3,384,007) 14,305,721

Net Position, End of Year

$ 320,656,906 $ 1,347,506,492 $ 102,852,526 $

13,679,277 $

6,600,894 $

10,921,714

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

2020 Annual Financial Report 63

UNIVERSITY SYSTEM OF GEORGIA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION COMPONENT UNITS FOR FISCAL YEAR ENDED JUNE 30, 2020

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

$

-- $

-- $ 1,126,856,108

--

--

58,192,726

--

--

142,180,827

--

--

319,385,362

--

873,371,423

6,053,054

2,435,520

219,573,119

102,831

(1,090,582)

173,172,566

--

--

113,894,208

1,083,665

--

8,728,389

7,239,550

1,344,938

3,035,354,728

-- -- -- -- -- -- -- 1,833,717 --

-- -- -- -- -- -- -- (1,619,528) --

3,119,349 372,324,638
85,188,513 189,931,540
18,080,931 37,808,380
8,608,151 2,167,628,283
70,362,644

1,833,717

(1,619,528)

2,953,052,429

$

5,405,833 $

2,964,466 $

82,302,299

64 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, 2020

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

$

-- $

-- $

32,500,563

-- -- -- 215,454 (7,553,786) (2,919,221)

-- -- -- 425,531 -- --

50,843,764 3,409,250
27,240,143 (43,165,734) (140,840,216) (29,287,543)

(10,257,553)

425,531

(99,299,773)

(4,851,720)

3,389,997

(16,997,474)

--

--

21,258,158

--

--

80,941,958

--

--

(1,376,773)

--

--

100,823,343

(4,851,720) 10,307,660

3,389,997 (25,330,576)

83,825,869 4,878,050,167

$

5,455,940 $ (21,940,579) $ 4,961,876,036

2020 Annual Financial Report 65

66 University System of Georgia

Notes to the Financial Statements

UNIVERSITY SYSTEM OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2020
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, Deferred Compensation Plan Fiduciary Fund, and the Board of Regents Investment Pool. 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, 2020, 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.
68 University System of Georgia

Separately issued financial statements are available from the following addresses.
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, AD-1104, Augusta, GA 30912 Georgia Southern University Housing Foundation, Inc. and Subsidiaries, P.O. Box 8053, Statesboro, GA 30460 Georgia State University Athletic Association, Inc., 755 Hank Aaron Dr., Atlanta, Georgia, 30315 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 fin-
services.gatech.edu/affiliated-organization-financial-statements Georgia Tech Facilities, Inc., 221 Uncle Heinie Way, NW, Lyman Hall Building, Suite 325, Atlanta GA 30332-0257
or found at gtfi.gatech.edu/financial-statements Georgia Tech Foundation, Inc., 760 Spring Street, NW, Suite 400, Atlanta, GA 30308 or found at gtf.gatech.edu/
financial-statements Georgia Tech Research Corporation, 926 Dalney Street, NW, Atlanta, GA 30332-0415 or found at
gtrc.gatech.edu/gtrc/documents/financial-information Kennesaw State University Foundation, Inc., 3391 Town Point Drive, Suite 4530/Mail drop 9101, Kennesaw, GA
30144 Medical College of Georgia Foundation, Inc., 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, One Press Place, Suite 101, Athens, GA 30602 University of Georgia Research Foundation, Inc. and Subsidiaries, 456 E. Broad Street, Athens, GA 30602-1536 University of North Georgia Real Estate Foundation, Inc. and Subsidiaries, 80 College Circle, Price Memorial Rm
110B, Dahlonega, GA 30597 University System of Georgia Foundation, Inc. and Affiliates, 270 Washington Street, SW Suite 7002, 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.
2020 Annual Financial Report 69

Fiduciary Component Units GAAP requires fiduciary component units to be reported as fiduciary funds of the USG rather than as discrete component units. The USG's two fiduciary component units are the Retiree Health Benefit Fund and the Augusta University Early Retirement Pension Plan.
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.
Augusta University Early Retirement Pension Plan (ERP) is a single-employer defined benefit pension plan administered by Augusta University. The plan was implemented 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.
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, entitywide 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 funds:
Pension and Other Post Employment Benefit Trust Funds - Accounts for the activities of the Early Retirement Plan, the Board of Regents Retiree Health Benefit Fund and the Deferred Compensation Fund.
Custodial Funds - Accounts for activities resulting from the USG acting as an agent or fiduciary for various governments, companies, clubs, or individuals for student support. Custodial funds also account for activities of the Board of Regents Pooled Investment Program held for affiliate organizations.
New Accounting Pronouncements For fiscal year 2020, the USG adopted GASB Statement No. 84, Fiduciary Activities. This Statement improves guidance regarding the identification and reporting of fiduciary activities. This Statement requires activity meeting certain criteria to be reported in a fiduciary fund within a statement of fiduciary net position and a statement of changes in fiduciary net position. The adoption of this Statement resulted in the restatement of the July 1, 2019 fiduciary net position for custodial fiduciary funds.
For fiscal year 2020, the USG adopted GASB Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. The objective of this Statement is to provide temporary relief to governments and other stakeholders in light of the COVID-19 pandemic. That objective is accomplished by postponing the effective dates of certain provisions in Statements and Implementation Guides that first became effective or are scheduled to become effective for periods beginning after June 15, 2018, and later. 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.
70 University System of Georgia

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.
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, 2020 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.
2020 Annual Financial Report 71

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. Fiduciary fund advances includes student support received prior to eligibility requirements being met.
Deposits Held for Other Organizations Deposits held for others result primarily from unclaimed property that is held in accordance with policies established by Georgia Department of Revenue.
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
72 University System of Georgia

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 upfront payments, installment payments, a new facility or improvements to existing facility.
b) The operator collects and is compensated by fees from third parties. c) The institution has the ability to modify or approve what services the operator is required to provide, to
whom services are provided, and prices or rates that can be charged for those services. d) The institution is entitled to significant residual interest in the service utility of the asset at the end of the
arrangement.
Net Position The USG's net position is classified as follows:
Net investment in capital assets represents the USG's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. The term "debt obligations" as used in this definition does not include debt of the GSFIC as discussed previously in Note 1 - Capital Assets section.
Restricted - nonexpendable net position includes endowments and similar type funds in which donors or other outside sources have stipulated, as a condition of the gift instrument, that the principal is to be maintained inviolate and in perpetuity, and invested for the purpose of producing present and future income, which may either be expended or added to principal. For institution-controlled, donor-restricted endowments, the by-laws of the Board of Regents of the University System of Georgia permits each individual institution to use prudent judgment in the spending of current realized and unrealized endowment appreciation. Donor-restricted endowment appreciation is periodically transferred to restricted - expendable accounts for expenditure as specified by the purpose of the endowment. Each institution maintains pertinent information related to each endowment fund including donor; amount and date of donation; restrictions by the source of limitations; limitations on investments, etc.
Restricted - expendable net position includes resources in which the USG is legally or contractually obligated to spend resources in accordance with restrictions by external third parties.
Unrestricted net position represents resources derived from student tuition and fees, state appropriations, and sales and services of educational departments and auxiliary enterprises. These resources are used for transactions relating to the educational and general operations of the USG, and may be used at the discretion of the governing board or management to meet current expenses for those purposes, except for unobligated state appropriations (surplus). Unobligated state appropriations must be refunded to the Office of the State Treasurer. These resources
2020 Annual Financial Report 73

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.

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

Fiduciary Funds

Investment Pool

Student Support

$ 2,033,939,402 $

-- $

--

Changes in accounting policies and principles Adoption of GASB Statement No. 84
Correction of prior year errors Deposits held for other organizations Accounts receivable Capital assets Deferred inflow of resources

--
2,905,656 (266,408) 3,714,784 (3,497,062)

61,071,249
-- -- -- --

19,983,917
-- -- -- --

Net position, beginning of year, restated

$ 2,036,796,372 $

61,071,249 $

19,983,917

74 University System of Georgia

Changes in Accounting Principles USG made prior period adjustments due to the adoption of GASB Statement No. 84, which required the restatement of the June 30, 2019 business type activities, cash and cash equivalents, and fiduciary fund net position. The result is an increase in fiduciary net position at July 1, 2019 of $81,055,166 reported on the Statement of Changes in Fiduciary Net Position and an increase in cash and cash equivalents at July 1, 2019 of $51,136,047 reported on the Statement of Cash Flows. This change is in accordance with generally accepted accounting principles.
Correction of Prior Year Errors Business-type activity balances reported at June 30, 2019 were misstated across multiple account balances as listed in the above table. Beginning net position has been increased by $2,856,970 to reflect correction of prior year amounts. This change is in accordance with generally accepted accounting principles.
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, 2020 were as follows:

Augusta University Georgia Southern University University of North Georgia

Capital Asset Transfers

$

5,928,881

1,972,951

3,188,975

Totals

$

11,090,807

Augusta University The Georgia Technology Authority transferred additional building improvements and equipment for the two buildings known as the Hull McKnight and Schaffer MacCartney Buildings which were erected in fiscal year 2019 on the Cyber Complex site located at 1 Eleventh Street, Augusta, Richmond County, Georgia. The building improvements and equipment transferred as part of an ongoing project in fiscal year 2020, had a reported net book value of $5,928,881.
Georgia Southern University Georgia Southern University received land and buildings, located in Savannah, from the Georgia Bureau of Investigations. The net book value for these assets was $1,972,951 at the time of the transfer.
University of North Georgia The Technical College System of Georgia transferred the Oakwood campus of Lanier Technical College to the University of North Georgia. This transfer included land, a building, other improvements, and equipment with a reported net book value of $3,188,975.

2020 Annual Financial Report 75

Note 2 Deposits and Investments
Cash and cash equivalents and investments as of June 30, 2020 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

$

1,628,260,630

263,100,044

14,015,658

755,430

101,681,768 2,541,191 41,891
297,770,445

(35,068,747)

311,985,357

$

2,585,083,667

Cash on hand, deposits, and investments as of June 30, 2020 consist of the following:

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

$

1,143,452

795,189,974

1,908,838,860

(120,088,619)

$

2,585,083,667

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.

76 University System of Georgia

5. Bonds, bills, certificates of indebtedness, notes or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association and the Federal National Mortgage Association.
6. Letters of credit issued by a Federal Home Loan Bank.
7. Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation.
The USG participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased to amount of up to 125% if economic or financial conditions warrants. The program lists the type of eligible collateral. The OST approves authorized custodians.
In accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository's collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized.
At June 30, 2020, the bank balances of the USG's deposits totaled $825,844,408. This balance includes deposits in fiduciary funds as these balances are not separable from the holdings of the USG. Of these deposits, $5,126,042 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

155,199 --
4,970,843

Total deposits exposed to custodial credit risk

$

5,126,042

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 $84,207 as follows:

Program UGA - Oxford Program UGA Cortona Art Program

Institution Barclay's Banca CR Firenze

Currency British Pound European Euro

U.S. Value $
$

43,071 41,136 84,207

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.

2020 Annual Financial Report 77

GASB Statement No. 72, Fair Value Measurements and Application, which requires fair value measurement be classified and disclosed in one of the following three categories ("Fair Value Hierarchy"):
Level 1 - Quoted prices are available in active markets for identical investments as of the reporting date.
Level 2 - Pricing inputs are observable for the investments, either directly or indirectly, as of the reporting date, but are not the same as those used in Level 1; inputs include comparable market transactions, pricing of similar instruments, values reported by the administrator, and pricing expectations based on internal modeling. Fair value is determined through the use of models or other valuation methodologies.
Level 3 - Pricing inputs are unobservable for the investment and include situations where there is little, if any, market activity for the investments.
The following table summarizes the valuation of the USG's investments measured at fair value on a recurring basis as of June 30, 2020.

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

$ 200,385,838 $ 200,385,838 $

-- $

187,199,321 306,241,641 193,094,575
130,762 23,775,909
1,061,400 217,995,263

-- -- 11,383 -- 23,775,909 1,061,400 217,995,263

187,199,321 306,241,641 193,083,192
-- -- -- --

213,955,599 800,219
138,130,646 355,785
6,353,154 299,871 265,548

213,955,599 800,219
138,130,640 118,595 -- 299,871 265,548

-- -- -- 237,190 -- -- --

1,490,045,531 $ 796,800,265 $ 686,761,344 $

--
-- -- -- 130,762 -- -- --
-- -- 6 -- 6,353,154 -- --
6,483,922

418,793,329 $ 1,908,838,860

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 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,

78 University System of Georgia

generally, cannot be redeemed with the funds through normal redemption procedures. Distributions from real estate investment funds will be received as the underlying investments of a fund are liquidated. Guaranteed investment contracts are valued by discounting the related cash flows based on current yields of similar instruments with comparable durations considering the credit worthiness of the issuer.
The USG holds positions in the Georgia Fund 1 investment pool managed by the Georgia Office of the State Treasurer. The unit of account is each share held, and the value of the position would be the fair value of the pool's share price multiplied by the number of shares held. The USG does not "look through" the pool to report a pro rata share of the pool's investments, receivables, and payables.
Board of Regents Pooled Investment Program The USG serves as fiscal agent for various units of the University System of Georgia, component units 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.
Condensed financial information for the Board of Regents Pooled Investment Program is as follows:

Assets Pooled Investments* Receivables

Statement of Net Position - June 30, 2020

Distribution of Net Position USG Business-type Activities
Fiduciary Funds Retiree Health Benefit Fund Investment Pool
Discretely Presented Component Units

$

1,182,518,770

2,282,015

$

1,184,800,785

$

836,808,716

161,775,565

66,127,885

120,088,619

$

1,184,800,785

* 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 $4,298,267, $10,894,655, and $5,957,786 for discretely presented component units reported as short-term investments, restricted short-term investments, and investments, respectively.

Statement of Changes in Net Position - June 30, 2020

Market Value Plus Accrued Income on July 1, 2019

$

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, 2020

$

1,064,232,172 177,231,033
(1,105,521) (89,650,480)
26,068,328 3,256,200 7,133,091 (2,364,038)
1,184,800,785

2020 Annual Financial Report 79

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, 2020 was $685,797,116, of which 100% was invested in debt securities. The Effective Duration of the Fund is 0.98 years.
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, 2020 was $18,717,150, of which 100% is invested in debt securities. The Effective Duration of the Fund is 1.89 years.
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, 2020 was $175,341,138, of which 71% is invested in debt securities. The Effective Duration of the Fund is 5.78 years
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, 2020 was $15,523,821, of which 30% is invested in debt securities. The Effective Duration of the Fund is 5.62 years.
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
80 University System of Georgia

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, 2020 was $216,812,253, of which 30% is invested in debt securities. The Effective Duration of the Fund is 5.73 years. 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, 2020 was $72,609,307, of which 20% is invested in debt securities. The Effective Duration of the Fund is 5.11 years. 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 2a7-like 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 38 days.
2020 Annual Financial Report 81

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, 2020, 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

$ 200,385,838 $ 194,700,014 $

46,149 $ 3,803,209 $ 1,836,466 $

--

187,199,321 306,241,641 193,094,575
130,762 23,775,909
1,061,400 217,995,263

9,652,398 27,692,342 33,803,462
-- 23,775,909
10,000 2,774,815

21,168,050 82,249,877 75,459,475
-- -- 170,988 --

128,485,112 151,806,534
83,502,712 -- --
218,274 33,484,501

-- 19,991,806
328,926 -- --
636,797 93,470,033

27,893,761 24,501,082
-- 130,762
-- 25,341 88,265,914

1,129,884,709 $ 292,408,940 $ 179,094,539 $ 401,300,342 $ 116,264,028 $ 140,816,860

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

213,955,599 800,219
138,130,646 355,785
6,353,154 299,871 265,548

Investment Pools Office of the State Treasurer
Georgia Fund 1

418,793,329

Total Investments

$ 1,908,838,860

Custodial Credit Risk Custodial credit risk for investments is the risk that, in the event of a failure of the counterparty to a transaction, the USG will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. The USG's policy for managing custodial credit risk is:
1. The USG has appointed a federally regulated banking institution as custodian. The custodian performs its duties to the standards of professional custodian and is liable to the USG for claims, losses, liabilities and expenses arising from its failure to exercise ordinary care, its willful misconduct, or its failure to otherwise act in accordance with the contract.
2. All securities transactions are to be settled on a delivery vs. payment basis through an approved depository institution such as the Depository Trust Company or the Federal Reserve.
3. Repurchase agreements are to be collateralized by United States Treasury securities at 102% of the market value of the investment at all times.
At June 30, 2020, $6,408,736 was uninsured and held by the investment's counterparty's trust department or agent, but not in the USG's name. Of this balance, $222,175 is related to the Deferred Compensation Fiduciary Fund.

82 University System of Georgia

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

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

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

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

The investments subject to credit quality risk are reflected below:

Fair Value

AAA

AA

A

BBB

B

Unrated

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

$ 306,241,641 $ 306,132,156 $

193,094,575

2,368,856

130,762
23,775,909 1,061,400
217,995,263

--
22,246,341 220,623 418,245

109,485 $

-- $

1,135,647

189,274,801

--
-- 629,832
32,791

--
-- 210,945
--

-- $ 303,888
--
-- -- 33,455

-- $ --

-- 11,383

--
-- -- 17,097

130,762
1,529,568 --
217,493,675

$ 742,299,550 $ 331,386,221 $ 1,907,755 $ 189,485,746 $

337,343 $

17,097 $ 219,165,388

The Early Retirement Plan Fiduciary Fund has $25,415,643 in unrated mutual bond funds, $3,995,671 in AAA rated money market mutual funds, and $1,528,093 in unrated money market mutual fund.
The Deferred Compensation Fiduciary Fund has $915,144 in unrated mutual bond funds, $232,781 in AAA rated money market mutual funds, and $130,762 in unrated guarantees investment contracts.
The Retiree Health Benefit Fiduciary Fund has $98,356,228 in unrated mutual bond funds, $8,861,243 in AAA rated money market mutual funds, $3,372,528 in AAA rated U.S. agency securities, and $2,323,942 in A rated corporate debt.
Investment Pool Custodial Fund has $11,783,749 in unrated mutual bond funds, $1,660,326 in AAA rated money market mutual funds, $2,599,189 in AAA rated U.S. agency securities, and $1,791,048 in A rated corporate debt.
Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The USG's policy requires diversification of investments to reduce overall portfolio risk while maintaining market rates of return.
At June 30, 2020, approximately 10.47%, 9.30%, 8.99%, 6.03% and 5.24% of business-type activity and fiduciary fund investments were investments in U.S. Treasuries, Government National Mortgage Assn. notes and pools, Federal National Mortgage Assoc. notes and pools, Federal Home Loan Corp Pool, and the Vanguard Institutional Index Fund, respectively.

2020 Annual Financial Report 83

Approximately 27.24%, 12.03%, 11.72, 7.61%, 7.51%, 7.39% and 5.17% of Deferred Compensation Fiduciary Fund investments were invested in Fidelity Contrafund Fund, Fidelity U.S. Bond Index Fund, Fidelity Strategic Income Fund, Vanguard Institutional Target Retirement 2025 Fund, Fidelity Institutional Money Market Government Institutional Portfolio, Fidelity Low Priced Stock Fund, and Vanguard Total Bond Market Index Fund Institutional Shares.

Approximately 16.85%, 16.55%, and 5.13% of Investment Pool Custodial Fund investments were invested in iShares Russell 3000 ETF, Vanguard Institutional Index Fund, and Ishares Core Total U.S. Aggregate Bond ETF, 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, 2020:

Business-type Activities

Fiduciary Fund

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

$

61,619,845 $

63,611,783

87,566,062

--

21,963,506

15,539,476

289,949,494

100,778,133

641,028,299

61,917,874

$

579,110,425 $

1,214,496 --
11,260,358 62,042,127
-- 22,692
-- 4,945,695 79,485,368
24,117
79,461,251

Note 4 Inventories
Inventories consisted of the following at June 30, 2020: Consumable Supplies Merchandise for Resale

$

6,867,003

14,610,007

Total

$

21,477,010

Note 5 Notes and Loans Receivable
The Federal Perkins Loan Program (the Program) comprises substantially all of the loans receivable at June 30, 2020. 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, 2020, the allowance for uncollectible loans was $2,509,158.

84 University System of Georgia

Note 6 Capital Assets

Changes in capital assets for the year ended June 30, 2020 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, 2019

Special Item and Other Transfers

Additions

Reductions

Balance June 30, 2020

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

1,903,681 $ -- -- --
1,903,681

1,340,373 $ 1,013,334 226,876,325
124,538 229,354,570

2,142,517 $ 438,720
191,871,187 5,505,088
199,957,512

429,795,155 55,763,568
232,278,843 124,538
717,962,104

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

388,400,542 12,756,345,535
298,312,493 1,797,699,141
959,866,716 6,585,365
128,546,771 16,335,756,563

-- 20,598,233
1,633,938 227,882 -- -- --
22,460,053

13,614,934 281,383,923
27,004,574 155,122,958
31,500,633 159,520
31,122,637 539,909,179

2,684,626 1,681,742
200,110 94,793,777
5,964,943 --
994,254 106,319,452

399,330,850 13,056,645,949
326,750,895 1,858,256,204
985,402,406 6,744,885
158,675,154 16,791,806,343

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

153,265,159 4,384,101,006
140,377,850 1,325,395,499
792,825,206 1,828,276
40,024,111 6,837,817,107

-- 11,628,148
1,577,515 67,264 -- -- --
13,272,927

15,628,685 325,329,057
11,823,524 121,239,164
32,738,698 159,503
12,164,184 519,082,815

2,684,626 783,083 180,098
73,740,879 5,964,943 -- 919,685
84,273,314

166,209,218 4,720,275,128
153,598,791 1,372,961,048
819,598,961 1,987,779
51,268,610 7,285,899,535

Total Capital Assets, Being Depreciated/Amortized, Net

9,497,939,456

9,187,126

20,826,364

22,046,138

9,505,906,808

Capital Assets, net

$ 10,184,600,821 $ 11,090,807 $ 250,180,934 $ 222,003,650 $ 10,223,868,912

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, 2020, GSFIC transferred completed GSFIC managed capital projects valued at $12,827,683 to the USG. In addition, at June 30, 2020, GSFIC had construction in progress of approximately $166,333,630 for incomplete GSFIC managed projects for the USG.

2020 Annual Financial Report 85

Note 7 Advances (Including Tuition and Fees)

Business-type activities advances, including tuition and fees, consisted of the following at June 30, 2020:

Prepaid Tuition and Fees Research Other - Advances

Current Liabilities

$

124,174,784

65,336,178

46,731,354 $

Non-Current Liabilities
3,029,733 3,100,000

Totals

$

236,242,316 $

6,129,733

Fiduciary fund advances in the amount of $3,653,035 consist of student support received prior to eligibility requirements being met.

Note 8 Long-Term Liabilities

Changes in long-term liability for the year ended June 30, 2020 was as follows:

Balance July 1, 2019

Additions

Reductions

Balance June 30, 2020

Current Portion

Lease Purchase Obligations

$ 2,855,371,358 $ 80,529,692 $ 126,132,901 $ 2,809,768,149 $ 121,716,509

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

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

181,472,893 -- --
979,605 182,452,498

151,295,791 2,218,537 2,378,631 860,057
156,753,016

261,580,601 10,542,400 3,485,065 1,265,989
276,874,055

162,311,938 1,699,268 2,382,236 1,265,989
167,659,431

Total Long-Term Liabilities

$ 3,106,545,931 $ 262,982,190 $ 282,885,917 $ 3,086,642,204 $ 289,375,940

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 2020 were $1,141,335 and $258,653, respectively. Notes and loan principal and interest payments related to non-capital financing activities for fiscal year 2020 were $1,077,202 and $43,842, respectively. Below is the annual debt service related to the outstanding notes payable at June 30, 2020.

Year Ending June 30: 2021 2022 2023 2024 2025 2026 through 2030 2031 through 2035

Principal

Interest

$

1,699,268 $

1,737,535

1,776,677

1,204,896

615,212

3,330,529

178,283

$

10,542,400 $

239,095 200,828 161,686 123,203 102,622 258,646
1,174
1,087,254

86 University System of Georgia

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.
USG institutions are responsible for pollution remediation at all institutional 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 pollution remediation at sites located on Georgia Southern University campuses and Georgia Institute of Technology campuses in the amounts of $388,689 and $509,916, respectively. 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 $286,384. The liability was determined using a five-year 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.
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, 2020, 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

$

35,953,929

1,014,560,916

350,914,967

$ 1,401,429,812

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

$

70,430,714

10,750,361

535,491,049

117,043,214

529,535,480

$ 1,263,250,818

Deferred Loss/Gain on Debt Refunding Unamortized deferred gain or loss on debt refunding is related to changes in the provisions of various leases that resulted from a refunding by the lessor of tax-exempt debt in which a portion of the perceived economic advantages of the refunding were 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.

2020 Annual Financial Report 87

Service Concessions Arrangements Kennesaw State University (KSU) At June 30, 2020, Kennesaw State University (KSU) was a participant in four Service Concession Arrangements.
In August 2001, KSU entered into an agreement with Kennesaw State University Foundation, Inc. (KSUF) whereby 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, KSU received no funds upfront from KSUF, but will take full ownership of the residence hall at the end of the operating agreement in August 2037.
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, KSU received no funds upfront from KSUF, but will take full ownership of the housing at the end of the operating agreement in July 2036.
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, KSU received no funds upfront from KSUF, but will take full ownership of the housing at the end of the operating agreement in September 2038.
In July 2017, KSU entered into 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, KSU 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.
For fiscal year 2020, the KSU increased beginning deferred inflows by $3,497,062 related to the re-evaluation of service concession arrangements with the KSUF. The agreement terms were revised which reduced annual and accumulated amortization.
At June 30, 2020, the KSU reports the three housing residences and one retail space as capital assets with a net carrying value of $57,450,821. For fiscal year 2020, the KSU reported a remaining deferred inflows of resources of $57,450,821 and amortized revenue of $3,630,113.
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 2020 was $36,000 and the remaining deferred inflow was $144,000.
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 2020 for the remaining construction commitment was $326,438 leaving a deferred inflow balance of $1,305,753.
88 University System of Georgia

For Fiscal Year 2020, GGC reported a total remaining Deferred Inflow of Resources of $1,449,753 related to the service concession arrangement.
University System Office (USO) During fiscal year ended June 30, 2015, the Board of Regents of the University System of Georgia (BOR) entered into a Service Concession Arrangement (SCA) with Corvias Campus Living-USG, LLC, whereby Corvias Campus Living-USG, LLC, manages, maintains and operates certain existing student housing resources on the campuses of nine institutions: Abraham Baldwin Agricultural College; Armstrong State University; Augusta University; College of Coastal Georgia; Columbus State University; Dalton State College; East Georgia State College; Georgia State University; and the University of North Georgia.
Pursuant to the contractual stipulations of this SCA, whereby the BOR and Corvias Campus Living- USG, LLC, are the "parties" participating in this agreement, as of May 14, 2015, the institutions noted above transferred the housing resources covered by this SCA, along with associated capital lease obligations to the University System Office in fiscal year 2015 through Special Item Transfer. In accordance with the SCA, in May 2015, Corvias Campus Living-USG, LLC, provided $311,561,781 which the BOR used to retire the capital lease obligations transferred to the University System Office.
On February 23, 2018, the SCA contractual agreement with Corvias Campus Living-USG, LLC, was amended. While performance measures and the operating agreement remain intact, the term of the agreement 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, 2020, leaving a remaining Deferred Inflow of Resources balance of $279,731,551 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, 2020, 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 $162,262,249 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, 2020, the University System Office amortized $7,389,686 and recognized $2,177,139 in associated interest income, leaving a Deferred Inflow balance of $34,596,675 as of June 30, 2020.
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.
2020 Annual Financial Report 89

Note 10 Net Position

The breakdown of business type activity net position for the USG fund at June 30, 2020 is as follows:

NET POSITION Net Investment in Capital Assets

$ 7,127,418,774

Restricted for Nonexpendable
Permanent Endowment

184,012,099

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

157,049,003 25,179,418 28,866,995 52,223,237 12,439,642
275,758,295

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

209,449,271 371,818,637
4,148,329 20,087,709 141,077,504 (6,413,065,612) (5,666,484,162)
$ 1,920,705,006

Other unrestricted net position is reduced by $4,650,188,508 related to the recording of net OPEB liability, deferred outflow on OPEB plans, and deferred inflows on OPEB plans. Other unrestricted net position is also reduced by $2,462,658,388 related to the recording of net pension liability, deferred outflow on defined benefit pension plans, and deferred inflow 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 determine 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 $3,742,677 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.

90 University System of Georgia

To the extent that the total return for the current year exceeds the payout, the excess is added to principal. If current year earnings do not meet the payout requirements, the USG uses accumulated income and appreciation from restricted expendable net asset endowment balances to make up the difference.

For endowment funds where the donor has not provided specific instructions 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, 2020. In addition to these encumbrances, the USG had other significant unearned outstanding construction or renovation contracts in the amount of $33,449,527 executed as of June 30, 2020. 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 2020 were $110,817,245 and $135,841,401, respectively. Interest rates range from 0.61% - 23.56%.

The USG has $2,310,552,761 in outstanding lease obligations due to component units. The USG has $329,354,768 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, 2020:

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

( + )

$

55,878,328

39,705,000

30,810,764

3,461,533,956

Less: Accumulated Depreciation

( - )

$

--

17,748,135

13,914,823

1,166,667,691

Net, Assets Held Under Capital Lease at June 30, 2020

( = )

$

55,878,328

21,956,865

16,895,941

2,294,866,265

Outstanding Balances per Lease
Schedules at June 30, 2020

$

41,985,614

32,595,442

15,893,261

2,714,753,141

6,457,961

3,269,470

3,188,491

4,540,691

$ 3,594,386,009 $ 1,201,600,119 $ 2,392,785,890 $ 2,809,768,149

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.

2020 Annual Financial Report 91

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-toyear 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 2020 was $62,176,245 which includes payments to related parties of $24,017,059. The USG is obligated to pay these related parties a total of $25,759,353 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, 2020, are as follows:

Year Ending June 30: 2021 2022 2023 2024 2025 2026 through 2030 2031 through 2035 2036 through 2040 2041 through 2045 2046 through 2050 2051 through 2055

Real Property and Equipment Capital Leases Operating Leases

$ 267,635,917 $ 272,016,860 265,438,640 264,626,669 263,247,379
1,299,444,312 1,043,878,723
683,698,438 121,457,510
31,180,458 1,547,700

58,356,025 41,147,038 39,351,036 33,694,260 29,297,288 132,028,956 58,014,915
3,749,957 821,531 861,427 --

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

4,514,172,606 $ 1,349,383,803
355,020,654 $ 2,809,768,149

397,322,433

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 $1,302,780 for the fiscal year ended June 30, 2020. Minimum future revenues and rentals to be received under operating leases as of June 30, 2020, are as follows:

Year Ending June 30: 2021 2022 2023 2024 2025 2026 through 2030

Real Property Operating Leases

$

2,821,134

3,258,034

3,320,677

2,985,978

2,357,667

3,489,286

Total Minimum Lease Revenues

$ 18,232,776

92 University System of Georgia

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 2020. USG's contractually required contribution rate for the year ended June 30, 2020 was 21.14% of the USG's annual payroll. The USG's contributions to TRS totaled $413,414,639 for the year ended June 30, 2020.
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
2020 Annual Financial Report 93

rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS.

Under the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60.

Retirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS.

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, 2020 was 24.66% of annual covered payroll for old and new plan members and 21.64% for GSEPS members. USG's contributions to ERS totaled $3,258,317 for the year ended June 30, 2020. 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, 2020, 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, 2019. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2018. An expected total pension liability as of June 30, 2019 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, 2019. At June 30, 2019, the USG's TRS proportion was 15.342644%, which was an increase of 0.111330% from its proportion measured as of June 30, 2018. At June 30, 2019, the USG's ERS proportion was 0.515220%, which was a increase of 0.012986% from its proportion measured as of June 30, 2018.

For the year ended June 30, 2020, the USG recognized pension expense of $597,022,967 for TRS and $5,687,730 for ERS. At June 30, 2020, 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 $ 185,953,154 $

978,094 $

708,044 $

--

Changes of assumptions

316,590,089

--

374,209

--

Net difference between projected and actual earnings on pension plan investments

--

78,561,242

--

661,799

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

90,534,273

36,036,059

1,455,492

806,020

Contributions subsequent to the measurement date

413,414,639

--

3,258,317

--

Total

$ 1,006,492,155 $ 115,575,395 $ 5,796,062 $ 1,467,819

94 University System of Georgia

The USG's contributions subsequent to the measurement date are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ending June 30, 2021. 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:

2021

$

2022

$

2023

$

2024

$

TRS
201,950,438 $ 47,121,183 $
115,417,468 $ 113,013,032 $

ERS
1,534,868 (422,303) (130,373)
87,734

Actuarial assumptions The total pension liability as of June 30, 2019 was determined by an actuarial valuation as of June 30, 2018 using the following actuarial assumptions, applied to all periods included in the measurement:

Teachers Retirement System Inflation Salary increases Investment rate of return Post-retirement benefit increases

2.50% 3.00% - 8.75%, average, including inflation 7.25%, net of pension plan investment expense, including inflation 1.50% semi-annually

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, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009 June 30, 2014, with the exception of the long-term assumed rate of return.

Employees' Retirement System Inflation Salary increases Investment rate of return

2.75% 3.25 7.00%, including inflation 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, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009 June 30, 2014 with the exception of the assumed investment rate of return.

The long-term expected rate of return on TRS and ERS pension plan investments was determined using a lognormal 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

2020 Annual Financial Report 95

allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

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

TRS target allocation 30.00 % 51.00 % 1.50 % 12.40 % 5.10 % -- % 100.00 %

ERS target allocation 30.00 % 46.20 % 1.30 % 12.40 % 5.10 % 5.00 % 100.00 %

Long-term expected real rate of return*
(0.10)% 8.90 % 13.20 % 8.90 % 10.90 % 12.00 %

* Rates shown are net of inflation

Discount rate The discount rate used to measure the total TRS and ERS pension liability was 7.25% 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% Decrease
6.25% $ 5,355,377,811

Current discount rate
7.25% $ 3,299,083,324

1% Increase
8.25% $ 1,608,078,626

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

1%

Current

Decrease

discount rate

6.30%

7.30%

$ 30,213,429 $ 21,260,714 $

1% Increase
8.30% 13,628,672

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 Augusta University. 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.

96 University System of Georgia

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, 2020, plan participants consisted of the following:

Inactive Plan Participants:

Retirees and Beneficiaries Currently Receiving Benefits

595

Terminated Employees Entitled to Deferred Benefits

0

Disabled Employees Entitled to Deferred Benefits

0

Total

595

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 2020 were $11,474,114, which includes $5,214,998 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.

2020 Annual Financial Report 97

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

Investments are reported at fair value. Securities traded on a national or international exchange are valued at the last reported sales price. 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 iShares Core Total U.S. Aggregate Bond Exchange-traded Fund (ETF), VanGuard Institutional Index Fund, and Vanguard Total Stock Market ETF. These investments are 9.42%, 24.22%, and 23.55% respectively of the Plan's total investments.

For the fiscal year ended June 30, 2020, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was 2.43%.

Net Pension Liability (NPL) The components of the net pension liability at June 30, 2020 were as follows:

Total pension liability Plan fiduciary net position

$ 144,974,323 (105,142,271)

Net pension liability

$ 39,832,052

Plan Fiduciary Net Position as a percentage of total pension liability is 72.52%.
Actuarial Assumptions The total pension liability was determined by an actuarial valuation as of January 1, 2020 with the results rolled forward to the June 30, 2020 measurement date using the following actuarial assumptions, applied to all periods included in the measurement: (a) rate of return of 7.25% per annum, compounded annually (b) inflation of 2.50% per annum, compounding annually, and (c) cost of living increases of 3% per annum, compounded annually.
To better recognize current and future mortality improvements, assumptions were updated to the most recent Mortality Improvement Scale published by the Society of Actuaries MP-2019 rather than the previously used MP-2018. The effect was a decrease in liabilities and annual pension expense. To better reflect current capital market expectations, assumptions were updated to 7.25% discount rate rather than the previously used 7.50%. The effect was an increase in liabilities and annual pension expense. There were no other changes in plan provisions or actuarial assumptions and methods since the prior report.
The projection of cash flows used to determine the discount rate of 7.25% 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 established with the January 1, 2020 valuation. A blend of future capital market projections and historical market returns was used in a building- block method in which a best-estimate 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 best-estimates 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.

98 University System of Georgia

Best estimates of geometric 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 Fixed income Portfolio Real Return Assumed Inflation

Target Allocation
80.00% 20.00%

Long-Term Expected Real Rate of Return*
5.50% 1.75%

Weighted Real Return 4.40 % 0.35 % 4.75 % 2.50 %

Long-Term Expected Rate of Return

7.25 %

*Rates shown are net of inflation.
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

6.25%

7.25%

$ 50,986,586 $ 39,832,052 $

1% Increase
8.25% 30,037,240

Schedule of Changes in Net Pension Liability For the year ended June 30, 2020, Augusta University recognized net pension liability of $39,832,052 calculated as follows:

Total Pension Liability (a)

Plan Fiduciary Net Position
(b)

Net Pension Liability (a) - (b)

Balance, June 30, 2019

$

146,605,709 $

105,375,867 $

41,229,842

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

10,461,152 393,469
1,761,370 -- --
(14,247,377)

-- -- -- 11,474,114 2,539,667 (14,247,377)

10,461,152 393,469
1,761,370 (11,474,114)
(2,539,667) --

Net Change

(1,631,386)

(233,596)

(1,397,790)

Balance, June 30, 2020

$

144,974,323 $

105,142,271 $

39,832,052

AU Health Systems, Inc. and Augusta University Research Institute, Inc. contributed $5,214,998 to the plan on behalf of Augusta University.

2020 Annual Financial Report 99

Schedule of Changes in Pension Expense For the year ended June 30, 2020, Augusta University recognized pension expense of $5,304,052 from the following sources:

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

Pension Expense $ 10,461,152
(7,799,193) 393,469
1,761,370 487,254
$ 5,304,052

Deferred Outflows/Inflows of Resources At June 30, 2020, 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

$

2,272,699 $

--

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: 2021 2022 2023 2024

$ (378,948) $ 543,885 $ 1,055,856 $ 1,051,906

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 2020, 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 $137,753,676 (9.24%) and $89,712,827 (6.00%), respectively.
VALIC, Fidelity, and TIAA-CREF have separately issued financial reports which may be obtained through their respective corporate offices.

100 University System of Georgia

Note 15 Risk Management

The USG offers its employees and retirees under the age of 65 access to three self insured healthcare plan options and one fully insured plan option. For the USG's Plan Year 2020, 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, 2020, and June 30, 2019 is shown below:

Active Employees: Unpaid Claims and Claim Adjustments

June 30, 2020 $ 45,014,583

June 30, 2019 $ 33,467,179

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

423,783,537

434,268,398

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

421,903,445

422,720,994

Unpaid Claims and Claim Adjustments

$ 46,894,675

$ 45,014,583

Retirees: Unpaid Claims and Claim Adjustments

$

6,420,703

$

4,631,431

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

89,012,971

94,056,257

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

89,512,407

92,266,985

Unpaid Claims and Claim Adjustments

$

5,921,267

$

6,420,703

The Department of Administrative Services (DOAS) has the responsibility for the State of Georgia of making and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS processes claims for risk of loss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers'

2020 Annual Financial Report 101

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, 2020.
During December of fiscal year 2020, a novel strain of coronavirus (COVID-19) surfaced. The spread of COVID-19 around the world and in the U.S. during 2020 has caused significant volatility in the global financial markets, including those in the U.S. There is continued uncertainty as to the breadth and duration of this pandemic and the resultant market disruption. Mandates from state and local authorities have required periodic temporary closure and/ or limited operations of certain schools, businesses and other facilities and organizations. While such closures and limitations on movement, both globally and in the U.S., are expected to be temporary, the potential continued spread of COVID-19 and its impact on social interaction, economic activity and financial markets could adversely affect the USG's operations and financial position.
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 2020, 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 self-insured dental plan administered by Delta Dental.
102 University System of Georgia

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.
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, 2020 48,739 20,427 --

June 30, 2019 48,661 19,826 --

69,166

68,487

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 2020 plan year, the employer rate was approximately 84% of the total contributions available to cover health insurance cost for eligible retirees and the retiree rate was approximately 16%. 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 2020, the University System of Georgia contributed $102,792,000 to the plan for current premiums or claims.
B. Plan Investments The Plan's investments are segregated for OPEB in the Board of Regents' Short Term and Balanced Income pooled investment funds.
The Short Term Fund provides a current return and stability of principal while affording 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 market value of the Plan's net asset value in the Short Term Fund at June 30, 2020 was $10,185,214. This balance is included in cash and cash equivalents on the Statement of Fiduciary Net Position.
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 market value of the Plan's net asset value in the Balanced Income Fund at June 30, 2020 was $151,590,351. This balance is reported as investments on the Statement of Fiduciary Net Position.
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.

2020 Annual Financial Report 103

The following table summarizes the adopted asset allocation policy as of June 30, 2020:

Asset Class Fixed Income Equity Allocation

Target Allocation 70% 30%

At June 30, 2020, approximately 26.41%, 26.00%, 9.26%, 9.13%, 8.36%, 5.48% and 5.19% of the Plan's investments were investments in Western Asset Core Bond Fund, iShares Core Total U.S. Aggregate Bond ETF, iShares Russell 3000 ETF, Vanguard Institutional Index Fund, Vanguard Mortgage Backed Securities Index Fund, Federated Money Market Obligations TR, and Eaton Vance Atlanta Capital SMID Fund, respectively. These investments represent 26.71%, 26.29%, 9.37%, 9.23%, 8.46%, 5.54% and 5.24%, respectively, of the Plan's fiduciary net position.
For the year ended June 30, 2020, the annual money-weighted rate of return on investments, net of investment expense, was 5.27%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested.
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, 2020, were as follows:

Total OPEB Liability Plan Fiduciary Net Position Net OPEB Liability

2020 $ 5,493,696,972
(159,977,707) $ 5,333,719,265

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

2.91 %

104 University System of Georgia

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, 2020 are summarized in the following table:

Asset Class Fixed Income Equity Allocation Total Portfolio

Expected Nominal Rate of
Return
2.10 %
6.70 %
3.75 %

Long-term Expected Real Rate of Return
-- %
4.51 %
1.61 %

* Rates shown are net of the 2.10% 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, 2020. 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 3.75% per annum was not applied to all periods of projected benefit payments to determine the total OPEB liability as of June 30, 2020, 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 2.21% from the Bond Buyers GO 20-Bond Municipal Bond Index.
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, 2020. Benefit payments are assumed to be paid mid-year.
4. Administrative expenses are $0.6 million for 2021 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 3.75% 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 (1.21%) or 1% higher (3.21%) than the current discount rate (2.21%):

Net OPEB Liability

1% Decrease

1.21%

$

6,502,284,097 $

Current Rate 2.21% 5,333,719,265 $

1% Increase 3.21% 4,398,497,506

2020 Annual Financial Report 105

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

$

4,422,483,821 $

Current Rate 5,333,719,265 $

1% Increase 6,489,162,343

Pre-Medicare Eligible Medicare Eligible

5.7% decreasing to 3.5% 6.7% decreasing to 4.5% 7.7% decreasing to 5.5%

3.5%

4.5%

5.5%

Actuarial Methods and Assumptions The "Further Consolidated Appropriations Act, 2020" signed into law on December 20, 2019 included a permanent repeal of the excise tax on high-cost plans originally imposed by the Affordable Care Act in 2010. The impact of this change was included as a change in assumption which decreased the net OPEB liability by about $173.5 million.
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
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, 2020. Update procedures were used to roll forward the total OPEB liability to June 30, 2020. Entry Age Normal Closed amortization period for initial unfunded and subsequent actuarial gains/ losses.
Fair Value Interest Rate as of 6/30/2020 2.21% from Bond Buyers GO 20-Bond Municipal Bond Index Interest Rate as of 6/30/2019 3.50% from Bond Buyers GO 20-Bond Municipal Bond Index Long-term Rate of Return 3.75% General Inflation 2.10% Salary Increase 4.00% Pub-2010 for Teachers (headcount weighted) projected with scale MP-2019
6.7% 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 remove excise tax adjustment. -Mortality improvement scale was updated from MP-2018 to MP-2019. -The discount rate was updated from 3.50% as of June 30, 2019 to 2.21%as of June 30, 2020. -The withdrawal rates were updated to better reflect anticipated future experience as the result of an assumption study. -The coverage election assumption was updated to better reflect anticipated future experience as the result of an assumption study. -The spousal coverage assumption was updated to better reflect anticipated future experience as the result of an assumption study. -The spousal age difference assumption was updated to reflect anticipated future experience as the result of an assumption study.

Plan Changes HRA cost sharing for employees hired on or after January 1, 2013 and retiring after January 1, 2018 is based on a policy that ties years of service to the amount the USG contributes based on 22-tiers ranging from 100% for employees retiring with 30 years of service to 21% for employees retiring with 10 years of service.
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, 2019. The total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of May 1, 2019 with roll-forward procedures performed to update the total liability to June 30, 2019. The USG's net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2019. At June 30, 2019, the USG's net OPEB liability related to the Plan was $4,471,567,995, which was an increase of $60,816,896 from the liability measured as of June 30, 2018.

2020 Annual Financial Report 107

For the year ended June 30, 2020, the USG recognized OPEB expense of $315,572,884. At June 30, 2020, 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

$ 248,010,055 $ 25,517,989

Changes of assumptions

-- 502,328,968

Net difference between projected and actual earnings on OPEB plan investments

--

1,174,693

Contributions subsequent to the measurement date

102,792,000

--

Total

$ 350,802,055 $ 529,021,650

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, 2021. 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:

2021

$

2022

$

2023

$

2024

$

2025

$

Thereafter

$

(66,788,008) (66,788,008) (64,936,869) (29,344,107) (27,610,015) (25,544,588)

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

$ 4,616,022,423 (144,454,428)
$ 4,471,567,995
3.13 %

108 University System of Georgia

The changes in net OPEB liability at June 30, 2019, were as follows:
Total OPEB Liability Service Cost Interest Changes of 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)

$

217,647,848

180,172,887

(11,210,551)

(29,667,255)

(129,153,450)

(98,563,146)

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

$

4,616,022,423

$

160,383,000

7,126,020

(536,437)

(98,563,146)

68,409,437 76,044,991

$

144,454,428

$

4,471,567,995

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 Total Portfolio

Target Allocation 70% 30% 100%

Expected Nominal Rate of
Return
3.61 %
7.07 %
4.96 %

Long-term Expected Real Rate of Return
1.09 %
4.46 %
2.40 %

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 Index.

2020 Annual Financial Report 109

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, 2019.
benefit payments are assumed to be paid mid-year.
4. Administrative expenses are $0.5 million for 2020. 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

$

3,749,464,451 $

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, governmentmandated 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

110 University System of Georgia

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

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

Valuation Date
Cost Method Amortization Method

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.

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 6/30/2019 3.50% from Bond Buyers Index GO 20-Bond Municipal Bond Index Interest Rate as of 6/30/2018 3.87% from Bond Buyers Index 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 project with scale MP-2018
Disabled: Pub-2010 Disabled Mortality for Teachers (as appropriate) headcount weighted project 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 Teacher's 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 the RP-2014 White Collar Mortality Table with Generational Improvements by Scale MP-2014 to Pub-2010 for Teachers (as appropriate) headcount weighted projected with MP-2018. Retirement rates were updated from the rates developed for the Teacher's Retirement System to rates based on actual experience. The discount rate was updated from 3.87% to 3.50% as of June 30, 2019.
Plan changes: The USG adopted a tiered cost sharing approach to USG contributions for employees hired after January 1, 2013 and retired after January 1, 2018.
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.

2020 Annual Financial Report 111

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.
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, 2020.
B. OPEB Asset, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB under GASB 75
At June 30, 2020, the USG reported an asset of $2,868,572 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, 2019. The total OPEB asset used to calculate the net OPEB asset was based on an actuarial valuation as of June 30, 2018. An expected total OPEB asset as of June 30, 2019 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, 2019. At June 30 2019, the USG's proportion was 1.014470%, which was an increase of .090216% from its proportion measured as of June 30, 2018.
For the year ended June 30, 2020, the USG recognized OPEB expense of ($481,712). At June 30, 2020, 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

$

14,579 $

--

Changes of assumptions

58,078

--

Net difference between projected and actual earnings on OPEB plan investments

--

263,569

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

40,255

250,261

Total

$ 112,912 $ 513,830

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

$

(220,035) (168,791)
(24,995) 12,903

112 University System of Georgia

Actuarial assumptions: The total OPEB asset as of June 30, 2019 was determined by an actuarial valuation as of June 30, 2018 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

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, 2018 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.
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 small equities International developed market equities International emerging market equities Alternatives
Total

Target allocation 30.00 % 46.20 % 1.30 % 12.40 % 5.10 % 5.00 % 100.00 %

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

Long-term expected real rate of return*
(0.10)% 8.90 % 13.20 % 8.90 % 10.90 % 12.00 %

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.

2020 Annual Financial Report 113

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%

$

1,587,353 $

Current Rate 7.3% 2,868,572 $

1% Increase 8.3% 3,921,449

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 publicly available at ers.ga.gov/financials.

Note 18 Operating Expenses with Functional Classifications

Business-type activity operating expenses by functional classification for fiscal year 2020 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

$ 1,089,288,520 $ 546,552,376 75,139,379 93,900,416 6,953,259 32,207,830 1,500,215 11,879 5,461,350 106,330,438

315,067,009 $ 310,118,549 125,512,246 272,078,947 187,597,896 362,375,074 207,475,024
151,872 211,881,092 129,654,525

511,453,609 $ 220,660,197
69,765,830 114,873,333
58,027,615 246,371,973
78,476,195 184,070
68,720,167 50,543,839

3,148,022 $ 1,786,552 1,486,504 1,252,251
444,681 11,103,244
330,703 909,786 2,823,506 3,508,199

Travel
15,500,088 25,438,216
4,984,033 4,708,648 3,502,159 4,800,725
567,751 5,718
2,126,532 420,289

Total Operating Expenses

$ 1,957,345,662 $ 2,121,912,234 $ 1,419,076,828 $ 26,793,448 $ 62,054,159

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

Scholarships and Fellowships

Utilities

Natural Classification
Supplies and Other Services

Depreciation/ Amortization

Total Operating Expenses

$ 10,369,601 $

5,689,683 $ 178,038,986 $ 73,333,462 $ 2,201,888,980

4,588,119

6,697,422

382,016,480

96,551,208

1,594,409,119

507,151

3,162,547

173,674,616

10,004,985

464,237,291

890,670

4,384,098

155,025,618

58,779,609

705,893,590

3,213,114

3,038,745

68,195,379

25,865,857

356,838,705

2,572,215

9,704,587

768,910,855

40,268,358

1,478,314,861

336

115,727,167

271,497,702

96,335,201

771,910,294

448,442,417

--

2,417,339

--

452,123,081

28,039,950

41,636,867

228,847,543

117,932,921

707,469,928

--

123,783

147,555,903

11,214

438,148,190

Total Operating Expenses

$ 498,623,573 $ 190,164,899 $ 2,376,180,421 $ 519,082,815 $ 9,171,234,039

114 University System of Georgia

Note 19 Subsequent Event
Georgia Gwinnett College On June 29, 2020, the University System of Georgia on behalf of Georgia Gwinnett College committed to the option to purchasing improved real property in the form of a parking lot. The purchase price is $462,000 and the closing occurred on August 7, 2020.
Effective July 1, 2020, the University System of Georgia on behalf of Georgia Gwinnett College entered into an agreement with Aladdin Food Management Services, LLC (Aladdin), whereby Aladdin will operate food services operations from service participants. The agreement is renewable for each year for five years. Aladdin is required to operate the food service facilities in accordance with the contractual agreement. The contract includes an investment of $1,313,172 to pay off the prior capital investment. Aladdin will bill GGC $104.74 per each meal plan participant with a 7 or 5 residential meal plan as of November 1, 2020 and March 1, 2021.
Aladdin will invest an amount equal to 1% of gross sales less meal plan sales plus $152.45 per meal plan participant with 7 or 5 residential meal plan as of November 1 and March 1 of each year ('annual investment'). Aladdin will submit to GGC for approval a proposed budget on the use of the annual investment. The annual investment amount will be used to cover the cost of equipment repairs and replacement, food service venues refresh, signage, digital menu boards, lighting and cabinetry upgrades, and new small wares as needed. Any remaining funds at the end of each contract year will rollover to the next contract year for refreshing program use.
Georgia Institute of Technology 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 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. Semiannual 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. The capital lease liability and capital asset will be recorded on the USG's books once construction is complete and the certificate of occupancy is issued.
Kennesaw State University On September, 1, 2020, Kennesaw State University (KSU) entered into an agreement with Kennesaw State University Foundation, Inc. (KSUF) where KSUF would renovate and improve a student housing facility (Howell Hall). This facility will be leased to KSU for a 30-year period through June 30, 2052 with lease payments totaling $20,505,809. At the end of the lease, the ownership of the student housing facility will transfer to KSU. On September 1, 2020, Kennesaw State University Foundation, Inc. entered into a promissory note agreement to repay $9,625,000 Series 2020C bonds issued by the Development Authority of Cobb County. The proceeds of the bonds will be used for the purpose of financing the cost of renovating and improving Howell Hall, a student housing facility located on the Marietta campus of Kennesaw State University, fund capitalized interest for the Series 2020C Bonds and paying all or a portion of the costs of issuing the Series 2020 Bonds.
On December 17, 2020, Kennesaw State University (KSU) entered into an agreement with Kennesaw State University Foundation, Inc. (KSUF) where KSUF would construct and equip a student housing facility. This new facility will be leased to KSU for a 30-year period through June 30, 2052 with lease payments totaling $65,324,517. At the end of the lease, the ownership of the student housing facility will transfer to KSU. On December 17, 2020, Kennesaw State University Foundation, Inc. entered into a promissory note agreement to repay $35,360,000 Series 2020 bonds issued by the Development Authority of Cobb County. The proceeds of the bonds will be used for the purpose of (i) financing the cost of acquiring, constructing and equipping a student housing facility consisting of approximately 508 beds to be located on the Kennesaw campus of Kennesaw State University, (ii) fund capitalized interest for the Series 2020 Bonds and (iii) paying all or a portion of the costs of issuing the Series 2020 Bonds.
University of Georgia On December 9, 2020, University of Georgia (UGA) entered into an agreement with UGA Real Estate Foundation, Inc. (UGAREF) a component unit of University of Georgia Research Foundation, Inc. where UGAREF would construct and equip a student housing facility. This new facility will be leased to UGA for a 30 year period through June 30, 2052 with lease payments totaling $79,279,988. On December 9, 2020, UGAREF entered into a promissory note agreement to repay $38,970,000 Series 2020 bonds issued by the Athens Housing Authority. The proceeds of the bonds will be used for the purpose of (a) financing the cost of the acquisition, construction and
2020 Annual Financial Report 115

equipping of certain buildings, structures, equipment and related real and personal property to be used as a student housing facility consisting of approximately 527 beds and related amenities to be located on the campus of the UGA in Athens-Clarke County, Georgia, (b) pay capitalized interest on the Series 2020 Bonds and certain annual fees during construction of the facility and for approximately six months thereafter and (c) pay the cost of issuing the Series 2020 Bonds.
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 that 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 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, 2020, the AUF distributed approximately $1,286,002 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 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.
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.
116 University System of Georgia

Augusta University Research Institute, Inc. Augusta University Research Institute (AURI) is a legally separate, tax-exempt component unit of the State of Georgia reporting entity. 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, 2020, AURI distributed approximately $65,496,954 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, 2020, GATV distributed approximately $755,000 to the Institute for supporting activities. Georgia Tech is obligated under various operating lease agreements with GATV, a related party, in the amount of $63,256,400.
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, 2020, the GC&SUF distributed approximately $828,000 to Georgia College & State University in support of capital outlay projects, scholarships and other supporting activities.
Georgia Gwinnett College Foundation, Inc. Georgia Gwinnett College Foundation, Inc. (GGCF) was established on May 8, 2006 to serve as an advocate for Georgia Gwinnett College, a unit of the 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, 2020, the GHSF distributed approximately $3,715,108 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.
2020 Annual Financial Report 117

Georgia Southern University Housing Foundation, Inc. The Georgia Southern University Housing Foundation, Inc. and Subsidiaries (GSUHF) is a legally separate, taxexempt 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, 2020, the GSUAA distributed approximately $18,353,650 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, 2020, GSUF distributed approximately $18,820,376 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.
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, 2020, GSURF distributed approximately $98,460,116 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, 2020, the GTAA distributed $45.7 million to the Georgia Institute of Technology for athletic scholarships and other supporting activities.
118 University System of Georgia

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, 2020, GTFI distributed approximately $290,000 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 $228,307,757.
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, 2020, the GTF distributed $75.3 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 $102,856,801.
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 Georgia Institute of Technology (GT). During the year ended June 30, 2020, the GTRC distributed $893 million to GT for research contracts. The GTRC reports under GASB standards.
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 Kennesaw State University (KSU) in support of its programs. During the year ended June 30, 2020, KSUF distributed approximately $6,195,324 to KSU in support of capital outlay projects, scholarships and other supporting activities.
Medical College of Georgia Foundation Inc. 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, 2020, MCGF paid approximately $6,208,243 to Augusta University and its affiliates in support of students and university programs. MCGF paid approximately $876,889 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.
2020 Annual Financial Report 119

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). During the year ended June 30, 2020, 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 $56.1 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, 2020, UGAF distributed $61.4 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.
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, 2020, the UGARF distributed $260.6 million to UGA for research contracts, $3.4 million to UGA for restricted license and royalties, and $3.8 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.
120 University System of Georgia

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. 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, 2020, the UWGREF distributed approximately $412,986 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.
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 VSU Auxiliary Services Real Estate Foundation, Inc (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 decreased investments in capital leases ($14.0 million), decreased beginning net position ($16.4 million), and increased revenues ($2.4 million).
2020 Annual Financial Report 121

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 decreased investments in capital leases ($6.7 million) and advances ($6.7 million).
GSUAA reports pledge receivables that are also reported by GSUF. An adjustment was made to eliminate these duplicative transactions. This adjustment decreased pledges receivable ($4.7 million), investments ($3.6 million), beginning net position ($8.9 million), revenues ($1.0 million), and expenses ($1.6 million).
Some component units hold investments on behalf of other component units. An adjustment was made to eliminate duplicative investment balances. This adjustment decreased investments ($170.2 million) and liabilities ($170.2 million).
An adjustment was made to eliminate intra-component unit receivables and payables in the amount of $5.4 million.
An adjustment was made to record investment income for the Board of Regents Pooled Investment Program omitted by various component units. This adjustment increased investments ($425.5 thousand) and investment income ($425.5 thousand).
Other reclassifications were made to move $41.1 million from accounts payable to interest payable for consistent reporting with the State's CAFR.
Selected Financial Disclosures Combined component unit's endowments are comprised of the following amounts at June 30, 2020:

Beginning Balance Originally Reported Adjustment to Beginning Balance 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

$ 288,557,870 $ 2,848,457,796 $ 3,137,015,666

(203,658)

(203,658)

288,354,212

2,848,457,796

3,136,812,008

4,616,380

96,993,491

101,609,871

3,419,022

33,965,696

37,384,718

(8,427,025)

(111,088,129)

(119,515,154)

(168,230)

(915,742)

(1,083,972)

6,978,221

2,561,082

9,539,303

$ 294,772,580 $ 2,869,974,194 $ 3,164,746,774

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

$

-- $ 2,356,477,864 $ 2,356,477,864

(8,277)

513,496,330

513,488,053

294,780,857

--

294,780,857

$ 294,772,580 $ 2,869,974,194 $ 3,164,746,774

122 University System of Georgia

Combined component unit's investments are comprised of the following amounts at June 30, 2020:

Fair Value

Investment type

Debt Securities

U.S. Treasuries

$

U.S. Agencies

Explicitly Guaranteed

Implicitly Guaranteed

Bond Securities

Corporate Debt

General Obligation Bonds

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 Funds

Hedge Fund Limited Partnerships

Private Equities

Private Equity Limited Partnerships

Natural Resources

Real Estate Held for Investment Purposes

Real Estate Investment Trusts

Other

128,164,742 $
2,130,973 149,214,348 168,327,405 102,742,010
18,429,074 133,792,529
11,785,006 100,432,874
1,000,000 60,307,963
213,588,993
361,249,688 386,344,389 406,175,517 658,733,962 280,518,615 357,936,000
392,763,687 62,453,703
69,802,700 78,384,083 113,844,485

Level 1
95,782,5640 $
-- 135,148,274 145,367,102
23,750,979 18,429,074 133,309,486
-- 59,144,949
1,000,000 26,110,702
213,027,332
314,226,085 385,980,389 389,920,517
-- -- --
-- --
-- 34,564,880
(894,573)

Fair Value Hierarchy

Level 2

Level 3

32,382,178 $

-- $

2,130,973

--

14,066,074

--

21,924,303

--

78,991,031

--

--

--

126,648

--

11,785,006

--

41,287,925

--

--

--

34,197,261

--

561,661
7,581,873 -- -- -- -- --
-- --
-- -- 13,243,872

--
-- -- -- -- -- --
-- --
69,802,700 --
16,940,091

NAV
--
-- -- 1,036,000 -- -- 356,395 -- -- -- --
--
39,441,730 364,000
16,255,000 658,733,962 280,518,615 357,936,000
392,763,687 62,453,703
-- 43,819,203 84,555,095

Total Investments

$ 4,258,122,746 $ 1,974,867,760 $

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

82,533,142 555,641
11,958,016 154,754
1,455,702 23,431,364

258,278,805 $

Total Investments

$ 4,378,211,365

86,742,791 $ 1,938,233,390

Component unit investments of $114,746,257 are reported as cash and cash equivalents on the Statement of Net Position.

2020 Annual Financial Report 123

Combined amounts due to component units related to direct financing lease activity as of June 30, 2020 is as follows:

Year Ending June 30: 2021 2022 2023 2024 2025 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

$

199,722,878 $

198,247,265 $

206,426,507

204,305,283

200,541,746

198,424,572

200,871,269

198,758,532

201,970,269

199,861,676

2,705,562,247

2,443,754,720

3,715,094,916

3,443,352,048

(1,385,177,218)

(1,132,799,287)

$

2,329,917,698 $

2,310,552,761 $

1,475,613 2,121,224 2,117,174 2,112,737 2,108,593 261,807,527 271,742,868 (252,377,931) 19,364,937

Combined component unit's capital assets are comprised of the following amounts at June 30, 2020:

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 Patents, Trademarks, and Copyrights Software
Total Capital Assets being Depreciated/Amortized
Less Total Accumulated Depreciation/Amortization
Total Capital Assets being Depreciated/Amortized, Net
Capital Assets, Net

Total

$

211,260,144

7,996,707

101,715,037

3,623,967

324,595,855

4,281,099 1,018,548,151
258,211,313 340,643,626
66,936,210 160,000
38,783,818 1,727,564,217

780,281,616

947,282,601

$

1,271,878,456

124 University System of Georgia

Combined component unit's long-term liabilities are comprised of the following amounts at June 30, 2020:

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 Revenue/Mortgage Bonds Payable Bond - Premium Bond - (Discount)/Cost of Issuance
Total Long Term Liabilities

Beginning Balance

Additions

Reductions

Amounts due Ending Balance within One Year

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

-- $ 7,820,689 13,699,537 2,668,000 72,270,619
(23,212) 11,306,354

976,692 $ 4,673,384 11,633,914 2,167,273 110,496,690 (146,104) 4,854,779

603,932 $ 24,488,371 85,615,513 29,420,764 238,778,212 (1,814,898) 43,944,946

250,000 24,322,460
8,749,861 2,481,811 36,344,182
-- --

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

1,046,540 409,154,188
45,059,940 (1,623,788)

1,163,834 344,213,556
24,229,845 (5,899,024)

6,641,329 3,216,957,026
214,146,702 (46,387,783)

-- 190,713,299
-- --

$ 3,749,380,086 $ 561,378,867 $ 498,364,839 $ 3,812,394,114 $ 262,861,613

Combined component unit's capital lease obligations are comprised of the following amounts at June 30, 2020:

Year ending June 30: 2021 2022 2023 2024 2025 2026 through 2030 2031 through 2035
Total minimum lease payments Less: Interest
Principal Outstanding

$

13,172,243

12,506,863

11,415,376

9,939,603

9,096,039

35,093,143

22,713,607

113,936,874

28,321,361

$

85,615,513

Combined component unit's notes and loans are comprised of the following amounts at June 30, 2020:

Year ending June 30: 2021 2022 2023 2024 2025 2026 through 2030 2031 through 2035 2036 through 2040 2041 through 2045
Note Discount/Cost of Issuance Total

Principal

$

36,344,182 $

19,671,453

7,938,794

63,087,767

6,990,048

52,460,005

26,945,869

21,069,477

4,270,617

238,778,212

(1,814,898)

$

236,963,314 $

Interest
8,044,425 $ 7,522,772 7,049,814 5,841,978 4,091,144 15,589,848 7,728,743 4,184,557 1,177,226 61,230,507
-- 61,230,507 $

Total
44,388,607 27,194,225 14,988,608 68,929,745 11,081,192 68,049,853 34,674,612 25,254,034
5,447,843 300,008,719
(1,814,898) 298,193,821

2020 Annual Financial Report 125

Combined component unit's bonds payable are comprised of the following amounts at June 30, 2020:

Year ending June 30: 2021 2022 2023 2024 2025 2026 through 2030 2031 through 2035 2036 through 2040 2041 through 2045 2046 through 2050 2051 through 2055
Bond Premium Bond Discount/Cost of Issuance Total

Principal

$

190,713,299 $

145,418,558

119,261,152

127,634,017

135,887,000

767,873,000

758,195,000

610,095,000

196,780,000

155,350,000

9,750,000

3,216,957,026

214,146,702

(46,387,783)

$

3,384,715,945 $

Interest
129,956,867 $ 126,298,821 121,230,453 115,905,839 110,162,909 454,614,177 282,873,780 138,827,375
48,435,678 18,545,341
660,668 1,547,511,908
-- -- 1,547,511,908 $

Total
320,670,166 271,717,379 240,491,605 243,539,856 246,049,909 1,222,487,177 1,041,068,780 748,922,375 245,215,678 173,895,341
10,410,668 4,764,468,934
214,146,702 (46,387,783) 4,932,227,853

126 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 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 June 30, 2013 June 30, 2012 June 30, 2011

Actuarially Determined Contribution
(a)
$ 11,474,114
$ 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

Contributions in Relation to the
Actuarially Determined Contribution
(b)
$ 11,474,114
$ 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

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)

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

June 30, 2020 $

June 30, 2019 $

June 30, 2018 $

June 30, 2017 $

June 30, 2016 $

June 30, 2015 $

June 30, 2014 $

June 30, 2013 $

June 30, 2012 $

June 30, 2011 $

3,258,317 $ 3,537,809 $ 3,201,803 $ 2,963,115 $ 2,674,110 $ 2,094,605 $ 1,631,633 $ 1,238,577 $
896,604 $ 709,947 $

3,258,317 $ 3,537,809 $ 3,201,803 $ 2,963,115 $ 2,674,110 $ 2,094,605 $ 1,631,633 $ 1,238,577 $
896,604 $ 709,947 $

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

13,138,687 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

24.80% 27.02% 25.08% 25.85% 26.00% 22.72% 18.77% 14.90% 11.64% 10.41%

Teachers Retirement System

June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 June 30, 2013 June 30, 2012 June 30, 2011

$ 413,414,639 $ 413,414,639 $ $ 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 $

-- $ 1,953,490,339 -- $ 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

21.16% 20.97% 16.83% 14.27% 14.29% 13.21% 12.28% 11.41% 10.28% 10.28%

128 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 SIX FISCAL YEARS*

Employees' Retirement System

Year Ended June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015

Teachers Retirement System

June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015

Proportion of the Net Pension Liability

Proportionate Share of the Net Pension Liability

0.515220 % $

21,260,714 $

0.502234 % $

20,647,007 $

0.465664 % $

18,912,176 $

0.439281 % $

20,881,541 $

0.400000 % $

16,237,112 $

0.390000 % $

14,722,566 $

Covered Payroll
13,094,926 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

162.36 %

76.74 %

161.70 %

76.68 %

164.96 %

76.33 %

203.01 %

72.34 %

176.11 %

76.20 %

169.40 %

77.99 %

15.342644 % $ 15.231314 % $ 15.047800 % $ 14.868689 % $ 14.740000 % $ 14.520000 % $

3,299,083,324 $ 1,866,677,068 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

176.74 % 156.55 % 162.18 % 188.59 % 145.45 % 124.23 %

78.56 % 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.

2020 Annual Financial Report 129

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 SEVEN FISCAL YEARS*

2020

2019

2018

2017

2016

2015

2014

Total Pension Liability Plan Fiduciary Net Position

$144,974,323 $146,605,709 $148,863,688 (105,142,271) (105,375,867) (99,022,119)

$149,152,995 $151,817,059 $143,780,226 $145,384,819 (90,408,065) (80,322,348) (79,125,737) (76,193,610)

Net Pension Liability

$39,832,052 $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

72.52 %

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

-- % 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 CHANGES IN NET PENSION LIABILITY EARLY RETIREMENT PLAN - AUGUSTA UNIVERSITY SINGLE EMPLOYER DEFINED BENEFIT PENSION PLAN FOR THE LAST SEVEN FISCAL YEARS*

2020

Total Pension Liability

Interest

$ 10,461,152

2019 $ 10,636,036

2018 $ 10,669,543

2017 $ 10,875,630

2016 $ 10,278,138

2015 $ 10,405,981

2014 $ 10,607,438

Differences Between Expected and Actual Experience

393,469

1,581,985

664,493

77,619

1,349,554

1,266,248

(127,876)

Changes of Assumptions
Benefit Payments/ Refunds

1,761,370 (14,247,377)

(376,246) (14,099,754)

2,161,493 (13,784,836)

-- (13,617,313)

9,885,919 (13,476,778)

-- (13,276,822)

-- (13,054,512)

Net Change in Total Pension Liability
Total Pension Liability - Beginning

(1,631,386) 146,605,709

(2,257,979) 148,863,688

(289,307) 149,152,995

(2,664,064) 151,817,059

8,036,833 143,780,226

(1,604,593) (2,574,950) 145,384,819 147,959,769

Total Pension Liability

- Ending (a)

$ 144,974,323 $ 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

$ 11,474,114 $ 13,084,672 $ 13,084,672 $ 13,084,672 $ 13,084,672 $ 13,084,672 $ 13,084,672

2,539,667

7,368,830

9,314,218

10,618,358

1,588,717

3,124,277

11,727,751

(14,247,377) (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

(233,596)

Plan Fiduciary Net Position - Beginning

105,375,867

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) $ 105,142,271 $ 105,375,867 $ 99,022,119 $ 90,408,065 $ 80,322,348 $ 79,125,737 $ 76,193,610

Net Pension Liability

Ending (a - b)

$ 39,832,052 $ 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.

2020 Annual Financial Report 131

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 SEVEN FISCAL YEARS*

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

2020 2.43 %

2019 7.53 %

2018

2017

10.42 % 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.

132 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, 2020
Changes of assumptions Early Retirement Plan: The expectation of retired life mortality was updated to the most recent scale published by the Society of Actuaries to better recognize current and future mortality improvements. The discount rate was lowered from 7.50% to 7.25% to better reflect current capital market expectations. 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). On May 15, 2019, the Board adopted and recommended changes from the smoothed valuation interest rate methodology that has been in effect since June 30, 2009, to a constant interest rate method. In conjunction with the methodology, the long-term assumed rate of return in assets (discount rate) has been changed from 7.50% to 7.25%, and the assumed annual rate of inflation has been reduced from 2.75% to 2.50%. Changes of benefit terms Employees' Retirement System: Two one-time 2% payments were granted to certain retirees and beneficiaries effective July 2018 and January 2019.
2020 Annual Financial Report 133

UNIVERSITY SYSTEM OF GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS DEFINED BENEFIT OPEB PLAN - BOARD OF REGENTS RETIREE HEALTH BENEFIT PLAN FOR THE LAST TEN YEARS (Dollars in thousands)

Year Ended 6/30/2020 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

Actuarially Determined Contribution
(a)

Contributions in Relation to the
Actuarially Determined Contribution
(b)

Contribution Deficiency (Excess)
(a-b)

Covered Employee Payroll (c)

$

417,744 $

102,792 $

314,952 $

3,622,124

$

484,599 $

160,383 $

324,216 $

3,375,246

$

467,338 $

158,420 $

308,918 $

3,218,771

$

349,859 $

99,584 $

250,275 $

3,122,694

$

295,192 $

111,814 $

183,378 $

3,087,013

$

442,359 $

129,823 $

312,536 $

2,608,757

$

403,314 $

120,926 $

282,388 $

2,594,800

$

362,426 $

83,414 $

279,012 $

2,466,314

$

345,298 $

88,836 $

256,462 $

2,526,212

$

411,516 $

80,262 $

331,254 $

2,432,367

Contributions as a Percentage of
Covered Employee Payroll (b/c)
2.84 %
4.75 %
4.92 %
3.19 %
3.62 %
4.98 %
4.66 %
3.38 %
3.52 %
3.30 %

Notes to Schedule

Valuation Date

May 1, 2020. Update procedures were used to roll forward the total OPEB liability to June 30, 2020.

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 3.75%, net of OPEB plan investment expense, including inflation of 2.1%

Salary Increases

4.0%

Mortality Rates

Pub-2010 for Teachers (headcount weighted) projected with scale MP-2019

Healthcare Cost Trend

Pre-Medicare Eligible: 6.7% 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 remove excise tax adjustment. -Mortality improvement scale was updated from MP-2018 to MP-2019. -The discount rate was updated from 3.50% as of June 30, 2019 to 2.21%as of June 30, 2020. -The withdrawal rates were updated to better reflect anticipated future experience as the result of an assumption study. -The coverage election assumption was updated to better reflect anticipated future experience as the result of an assumption study. -The spousal coverage assumption was updated to better reflect anticipated future experience as the result of an assumption study. -The spousal age difference assumption was updated to reflect anticipated future experience as the result of an assumption study.
Plan Changes:

HRA cost sharing for employees hired on or after January 1, 2013 and retiring after January 1, 2018 is based on a policy that ties years of service to the amount the USG contributes based on 22-tiers ranging from 100% for employees retiring with 30 years of service to 21% for employees retiring with 10 years of service.

134 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS DEFINED BENEFIT OPEB PLAN - STATE EMPLOYERS' ASSURANCE DEPARTMENT RETIRED AND VESTED INACTIVE MEMBERS PLAN FOR THE LAST THREE YEARS* (Dollars in thousands)

Year Ended 6/30/2020 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)

$

-- $

-- $

-- $

13,139

$

-- $

-- $

-- $

13,095

$

-- $

-- $

-- $

12,769

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

Actuarial Cost Method: Entry Age; Amortization Method: Level percent, open; Remaining Amortization Period: Dollar Infinite; Asset Valuation Method: Fair Value of Assets; Inflation: 2.75%; Salary Increases: 3.25%-7.00% ERS, 4.50% GJRS; Investment Rate of Return: 7.30%, 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.

2020 Annual Financial Report 135

UNIVERSITY SYSTEM OF GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB ASSET COST SHARING MULTIPLE EMPLOYER DEFINED BENEFIT OPEB PLAN FOR THE LAST THREE FISCAL YEARS*

State Employees' Assurance Department Retired and Vested Inactive Members Plan

Year Ended 6/30/2020 6/30/2019 6/30/2018

Proportion of the Net OPEB Asset

Proportionate Share of the Net OPEB Asset

1.014470 % $

2,868,572 $

0.924253 % $

2,501,455 $

0.786570 % $

2,044,332 $

Covered Payroll
13,094,926
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

21.91 %

129.73 %

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.

136 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN NET OPEB LIABILITY BOARD OF REGENTS RETIREE HEALTH BENEFIT PLAN SINGLE EMPLOYER DEFINED BENEFIT OPEB PLAN FOR THE LAST FOUR FISCAL YEARS*

Total OPEB Liability Service Cost Interest Changes in Benefit Terms Differences Between Expected and Actual Experience Changes of Assumptions Benefit Payments/Refunds

2020

2019

2018

2017

226,809,211 167,864,600 (81,916,693)

217,647,848 $ 236,916,639 $ 211,512,614

180,172,887

158,222,522

124,612,066

(11,210,551)

94,947,695 564,180,356 (94,210,620)

(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)

Net Change in Total OPEB Liability Total OPEB Liability - Beginning

877,674,549 4,616,022,423

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

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

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

Total OPEB Liability - Ending (a)

5,493,696,972 4,616,022,423 $ 4,486,796,090 $ 4,227,583,095

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

102,792,000 7,527,156 (585,257)
(94,210,620)

160,383,000 $ 158,419,937 $

7,126,020

801,316

(536,437)

(484,825)

(98,563,146) (90,548,660)

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

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

15,523,279 144,454,428

68,409,437 76,044,991

68,187,768 7,857,223

4,958,721 2,898,502

Plan Fiduciary Net Position - Ending (b)

159,977,707

144,454,428 $ 76,044,991 $ 7,857,223

Net OPEB Liability Ending (a - b)

5,333,719,265 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.

2020 Annual Financial Report 137

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 FOUR 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

2020
$5,493,696,972 159,977,707
$5,333,719,265

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

2018

2017

$ 4,486,796,090 $ 4,227,583,095

76,044,991

7,857,223

$ 4,410,751,099 $ 4,219,725,872

2.91 %

3.13 %

1.69%

0.19%

$3,622,123,946 $3,375,246,297 $ 3,218,771,744 $ 3,122,694,102

147.25%

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.

138 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF INVESTMENT RETURNS BOARD OF REGENTS RETIREE HEALTH BENEFIT PLAN SINGLE EMPLOYER DEFINED BENEFIT OPEB PLAN FOR THE LAST FOUR FISCAL YEARS*

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

2020 5.27 %

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.

2020 Annual Financial Report 139

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, 2020
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 remove excise tax adjustment. Mortality improvement scale was updated from MP-2018 to MP-2019. The discount rate was updated from 3.50% as of June 30, 2019 to 2.21%as of June 30, 2020. The withdrawal rates were updated to better reflect anticipated future experience as the result of an assumption
study. The coverage election assumption was updated to better reflect anticipated future experience as the result of an
assumption study. The spousal coverage assumption was updated to better reflect anticipated future experience as the result of an
assumption study. The spousal age difference assumption was updated to reflect anticipated future experience as the result of an
assumption study. Plan Changes: HRA cost sharing for employees hired on or after January 1, 2013 and retiring after January 1, 2018 is based on a policy that ties years of service to the amount the USG contributes based on 22-tiers ranging from 100% for employees retiring with 30 years of service to 21% for employees retiring with 10 years of service.
State Employees' Assurance Department Retired and Vested Inactive Members Plan Changes in Assumptions Since Prior Valuation 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 the 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.
140 University System of Georgia

Supplementary Information

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2020

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 Other 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

$

13,754,460 $
304,513 1,619,185
-- -- 352,318 62,764 -- 855,911 -- 306,869 24,045 -- 17,280,065

2,589,565 $
3,909,186 -- --
2,635,790 45,912 --
2,701,210 -- --
220,557 --
12,102,220

-- --
-- -- -- 111,326 1,588 -- 2,066,055 56,644,733 58,823,702 76,103,767
10,548,588 $

-- --
801,382 -- --
58,272 -- -- --
202,734,860 203,594,514 215,696,734
17,319,676 $

2,863,695 $
104,371 -- --
710,066 1,647 --
297,801 -- -- -- --
3,977,580

63,279,574
22,233,384 -- --
9,301,035 564,627
73,541,253 14,472,684
-- 565,416 12,895,376
-- 196,853,349

-- --
69,628 -- -- -- -- -- --
40,876,667 40,946,295 44,923,875
4,978,939 $

-- --
197,730 --
31,593,326 1,692,880 -- --
13,325,921 673,925,919 720,735,776 917,589,125
153,990,747

142 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2020

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

$

744,357 $

1,055,025 $

324,971 $

21,380,532

256,127

401,627

201,186

3,626,798

90,548

136,150

14,366

116,579

--

61,580

--

146,167

--

40,153

--

255,126

--

--

--

--

--

--

--

134,403

--

--

--

1,946,993

--

--

--

--

615,469

5,165,707

468,358

34,822,017

156,300

306,919

4,536

672

--

3,238

4,890

167,960

--

--

287,523

--

--

--

--

--

5,987

3,359,241

223,170

1,092,063

--

--

--

2,499,031

--

--

--

--

--

2,016,244

365,992

--

906,550

1,850,655

447,061

22,143,702

2,775,338

14,396,539

2,342,053

88,332,043

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

-- -- -- -- -- 637,146 40,985,497 26,600,354 68,222,997 70,998,335

-- -- 93,278,694 -- 825,926 789,115 61,527,211 45,696,855 202,117,801 216,514,340

-- -- 9,042,563 -- 276,903 118,103 16,050,559 13,892,467 39,380,595 41,722,648

-- -- 1,342,992 41,576,758 -- 24,766,995 521,431,154 412,325,702 1,001,443,601 1,089,775,644

DEFERRED INFLOWS OF RESOURCES

$

11,980,928 $

28,989,090 $

6,695,820 $

84,049,297

2020 Annual Financial Report 143

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2020

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

$

56,638,746 $

103,466,964 $

31,610,934 $

628,740,197

1,985,669 877,338 -- -- --
(55,828,661)

84,310 -- -- --
(116,038,294)

-- 3,460
-- -- -- (30,130,048)

2,628,560 32,527,141
-- -- -- (766,140,967)

$

3,673,092 $

(12,487,020) $

1,484,346 $

(102,245,069)

144 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2020

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 Other 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

$

11,114,431 $
319,692 -- --
897,119 950,821
-- 1,329,818
-- 7,214 160,633
-- 14,779,728
990,440 --
578,205 -- --
6,188 -- -- --
117,671,797 119,246,630 134,026,358
15,887,014 $

7,328,289 $
8,025 -- --
31,111 189,343
-- 676,880
-- 35,620 110,248
-- 8,379,516

17,637,978 $
630,572 -- --
4,266,630 759,792 --
2,334,782 -- --
228,241 --
25,857,995

-- --
77,550 -- -- -- -- --
154,452 63,558,740 63,790,742 72,170,258
7,360,139 $

-- --
259,144 --
2,301,376 664,224 -- --
3,323,665 118,683,315 125,231,724 151,089,719
20,975,898 $

9,941,903
64,848 -- --
644,110 46,167 --
1,008,683 --
8,323 98,436
-- 11,812,470
-- --
46,314 -- -- -- -- -- --
56,725,651 56,771,965 68,584,435
7,990,144

2020 Annual Financial Report 145

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2020

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

$

2,296,414 $

754,043 $

3,164,318 $

800,045

365,050

210,098

401,959

165,288

125,902

63,295

189,668

125,615

--

38,142

84,448

12,354

--

--

8,577

25,497

--

--

--

--

4,000

--

--

--

--

--

--

--

--

--

--

--

1,725,042

502,332

3,801,206

278,329

75,854

7,923

700

13,939

49,519

8,606

17,551

5,671

19,116

87

5,262

--

--

--

--

--

--

278,974

204,517

--

2,317,770

--

1,613,790

152,077

--

--

--

--

--

--

--

--

1,692,089

513,763

1,954,269

633,706

8,670,756

2,377,263

11,446,265

2,212,521

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

-- -- -- 61,303,637 -- 754,622 54,822,094 37,613,154 154,493,507 163,164,263

-- -- 9,158,837 -- -- 335,573 22,289,827 14,875,603 46,659,840 49,037,103

-- --
35,227,995 --
1,215,972 72,915,221 51,403,839 160,763,027 172,209,292

-- -- -- 5,542,436 -- 310,758 33,114,063 18,945,380 57,912,637 60,125,158

DEFERRED INFLOWS OF RESOURCES

$

18,297,135 $

4,591,846 $

14,856,639 $

6,598,282

146 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2020

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

$

44,959,003 $

52,930,489 $

79,412,154 $

50,511,541

1,650,680 2,987 -- -- --
(78,160,696)

68,879 93,598
-- -- -- (27,191,518)

2,203,716 4,034,634
-- -- -- (100,650,818)

-- 30,904
-- -- -- (40,691,306)

$

(31,548,026) $

25,901,448 $

(15,000,314) $

9,851,139

2020 Annual Financial Report 147

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2020

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 Other 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

$

3,094,834 $
120,276 -- --
1,655,234 5,576 --
555,432 --
15,298 5,778 --
5,452,428

7,817,693 $ 2,210,044
3,064,702 1,401,885 1,837,166
9,204 16,340,694

25,356,980 $
1,035,264 -- --
373,316 9,557
179,851 1,442,111
-- 223,226 937,462
-- 29,557,767

43,816,309 286,728
3,917,458 26,934
551,637
456,250 49,055,316

-- --
-- -- -- -- -- -- 43,999 30,170,756 30,214,755 35,667,183
5,238,306 $

650,273 83,647
545,490
139,774,922 141,054,332 157,395,026
16,069,208 $

-- 1,474,681
1,081,967 --
3,422,381 --
174,135 --
5,371,940 187,658,958 199,184,062 228,741,829
26,491,835 $

-- --
1,013,537 -- -- -- -- -- --
233,568,835 234,582,372 283,637,688
47,556,778

148 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2020

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

$

239,335 $

1,538,081 $

3,407,053 $

1,953,818

167,634

246,847

422,296

748,832

48,886

81,005

227,934

774,172

116,689

--

531,599

--

78,959

27,581

142,396

--

--

--

--

--

--

--

--

--

--

--

3,146

--

241,421

--

--

413,039

1,049,402

2,304,616

1,626,859

72

311,905

94,102

3,766

80,380

--

96,308

705,176

66,166

--

--

--

--

821,085

1,273,556

--

2,477,838

3,124,137

5,482,104

--

--

--

--

--

--

381,677

1,310,501

2,543,730

1,516,566

1,446,219

7,069,056

14,545,693

13,619,701

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

-- --
-- -- 258,956 18,190,428 12,373,731 30,823,115 32,269,334

70,104,170
950,129 45,696,787 36,100,245 152,851,331 159,920,387

-- -- 28,243,460 76,431,399 -- 853,760 88,278,769 62,553,001 256,360,389 270,906,082

-- -- 2,047,351 150,852,970 -- 758,696 68,415,348 53,603,539 275,677,904 289,297,605

DEFERRED INFLOWS OF RESOURCES

$

3,384,330 $

11,078,862 $

18,953,196 $

10,837,676

2020 Annual Financial Report 149

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2020

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

$

29,980,681 $

64,273,697 $

77,711,236 $

92,299,912

37,100 31,886
-- -- -- (24,797,842)

2,680,298 -- -- --
(64,489,010)

4,680,881 1,904,805
-- -- -- (118,922,536)

-- 286,728
-- -- -- (61,527,455)

$

5,251,825 $

2,464,985 $

(34,625,614) $

31,059,185

150 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2020

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 Other 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

$

4,988,108 $
48,086 -- --
1,745,753 2,384 --
1,412,434 -- --
67,372 --
8,264,137

247,260,982 $
133,978,154 -- --
5,938,645 4,209,968 119,551,756 24,365,439
-- 1,677,149 24,129,213
-- 561,111,306

67,139,569 $
1,331,467 -- --
15,181,157 3,199,903 948,795 2,533,901 -- 3,963,884 502,822 --
94,801,498

-- --
115,505 -- -- -- --
43,516 66,564,143 66,723,164 74,987,301
9,949,389 $

-- --
2,762,562 -- --
10,211,278 174,392 --
85,075,157 2,138,222,415 2,236,445,804 2,797,557,110
248,665,097 $

-- 1,281,400
1,970,305 --
4,620,664 990,882 -- --
5,830,035 647,428,634 662,121,920 756,923,418
68,301,835 $

7,067,415
610,953 --
534,506
605,923 451,463
-- 941,151
-- 441,367
16,341 --
10,669,119
-- --
267,598 --
330,282 9,771 -- -- --
77,608,948 78,216,599 88,885,718
8,571,738

2020 Annual Financial Report 151

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2020

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

$

839,461 $

71,597,636 $

9,014,850 $

909,079

126,255

5,509,756

1,943,659

375,169

74,856

2,677,850

757,600

91,919

--

2,951,265

592,110

1,900

68,454

2,331,642

155,563

222,799

--

--

--

--

--

331,526

877,619

--

--

3,376,379

--

--

--

--

--

--

1,177,894

23,096,271

8,109,621

2,061,325

160

1,731,236

399,928

27,045

62,651

--

55,380

228

49,540

4,896

4,657

--

--

1,699,268

163,052

--

425,812

7,218,744

904,031

1,241,780

--

20,116,199

9,732,378

--

--

590,916

388,689

--

--

--

--

--

804,816

41,210,185

7,215,505

676,227

3,629,899

184,443,769

40,314,642

5,607,471

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

-- -- 14,501,236 -- -- 322,612 30,181,564 23,349,612 68,355,024 71,984,923

6,129,733 8,843,132 99,177,796 383,704,759
-- 21,219,058 686,328,093 535,204,921 1,740,607,492 1,925,051,261

-- 645,671 19,567,929 194,062,867
-- 2,686,479 280,155,182 163,697,563 660,815,691 701,130,333

-- -- 31,031,354 -- -- 291,627 31,445,318 16,279,093 79,047,392 84,654,863

DEFERRED INFLOWS OF RESOURCES

$

5,077,829 $

94,863,024 $

55,337,295 $

6,236,469

152 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2020

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

$

51,568,642 $

1,606,259,990 $

415,234,468 $

44,104,029

43,516 48,086
-- -- -- (43,786,306)

70,499,912 26,243,327
-- -- -- (676,695,307)

6,222,432 4,518,933
-- -- -- (357,218,208)

534,506 393,273
-- -- -- (38,465,684)

$

7,873,938 $

1,026,307,922 $

68,757,625 $

6,566,124

2020 Annual Financial Report 153

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2020

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 Other 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

$

271,029,401 $
18,473,824 -- --
532,103 --
20,134,209 20,526,082
-- 160,996 23,082,541
-- 353,939,156
-- --
1,414,211 -- --
3,036,504 10,479 --
129,996 968,211,970 972,803,160 1,326,742,316
139,949,570 $

9,617,213 $ 40,298
3,398,179 10,973
821,287 285,040
95,145 14,268,135

143,683,407 $
261,933 -- --
5,559,702 1,901,849
795,654 5,286,342
-- 4,113,894 5,998,247
-- 167,601,028

10,695,108
-- -- --
401,301 39,239 --
2,267,244 --
758,420 184,603
-- 14,345,915

355,149
78,074,538 78,429,687 92,697,822
7,698,809 $

-- --
1,998,603 --
260,766 451,218
-- -- 5,051,429 633,124,950 640,886,966 808,487,994
111,554,226 $

-- --
715,528 --
2,092,964 -- -- --
79,777 202,635,819 205,524,088 219,870,003
18,142,106

154 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2020

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

$

13,628,907 $

3,324,761

7,872,380

1,672,838

517,135

--

292,251

3,346,457

--

52,111,857

261,050

--

1,139,738

--

2,350,025

6,376,543

--

--

15,289,973

108,183,915

895,135 $ 161,959
77,939 32,910 124,591
--
417,278 96,251 46,078 1,219
1,499,273
608,289 3,960,922

12,696,934 $ 1,548,115 818,882 201,294 548,892 -- 524,462 320,705 --
24,291,172 57,710
170,891 283,759
-- 1,558,293 9,438,015
-- -- 9,500,346 61,959,470

1,113,214 485,253 91,657 -- -- -- -- -- --
1,995,357 1,089,131
47,534 -- -- --
2,921,584 -- --
1,584,462 9,328,192

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

-- -- 28,926,522 175,157,644 -- 9,341,833 456,442,592 358,352,516 1,028,221,107 1,136,405,022

34,480,333
165,150 23,433,699 19,761,865 77,841,047 81,801,969

-- -- 47,151,444 201,896,286 -- 3,395,188 277,155,654 213,684,597 743,283,169 805,242,639

-- -- -- 78,567,960 -- 932,455 61,355,994 46,145,086 187,001,495 196,329,687

DEFERRED INFLOWS OF RESOURCES

$

86,196,207 $

5,607,198 $

97,662,198 $

16,088,618

2020 Annual Financial Report 155

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2020

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

$

739,804,761 $

40,408,889 $

313,409,249 $

116,088,499

116,742 22,337,971
-- -- -- (518,168,817)

40,298 -- -- --
(27,461,723)

4,977,272 2,433,417
-- -- -- (303,682,555)

32,329 47,448
-- -- -- (90,574,472)

$

244,090,657 $

12,987,464 $

17,137,383 $

25,593,804

156 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2020

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 Other 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

$

1,436,563 $
4,678,469 -- --
2,693,883 -- --
1,886,258 --
66,970 59,070
-- 10,821,213
-- --
844,039 -- --
666,706 226,340
41,891 9,846,680 149,452,513 161,078,169 171,899,382
13,849,303 $

5,034,857 $
49,656 -- --
16,462 171,119
-- 541,588
-- 238,518 383,951
-- 6,436,151

283,220,845 $
62,398,317 10,424,688
220,924
7,443,037 --
72,014,961 25,476,678
-- 5,907,364 2,775,640
469,882,454

40,448,953
1,267,508 1,971,785
--
9,351,577 159,022 --
3,962,346 --
1,541,411 22,366 --
58,724,968

-- --
266,644 --
83,610 49,273
-- -- 439,162 46,077,554 46,916,243 53,352,394
6,515,003 $

-- --
1,552,532 --
51,460,242 6,109,811 -- --
145,687,739 1,969,874,940 2,174,685,264 2,644,567,718
318,828,990 $

-- --
862,527 --
5,425,571 1,339,472 1,077,258
-- 1,690,262 278,349,899 288,744,989 347,469,957
72,958,411

2020 Annual Financial Report 157

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2020

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

$

2,850,888 $

172,123

145,394

--

--

--

--

--

--

2,753,938

--

11,194

2,337

--

3,023,126

--

-- 1,185,984 10,144,984

605,292 $ 157,736
44,705 57,837 23,750
-- -- -- 199,983 659,816 48,554 -- 104,646 -- -- 1,077,149 -- -- 366,863 3,346,331

21,079,848 $ 9,659,728 1,631,416 6,065,563 1,217,123 -- -- 1,129,387 --
46,941,911 1,582,031 300,158 5,937,310 -- 18,703 9,280,361 286,384 --
36,465,553 141,595,476

3,633,254 892,168 456,322 -- 536,798 -- 90,200 -- --
6,815,621 1,073,317
113,266 1,067 -- --
4,533,067 -- --
2,378,562 20,523,642

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

-- -- 84,728,379 -- -- 660,332 47,574,532 37,508,457 170,471,700 180,616,684

-- -- -- 32,169,104 -- 210,780 18,771,598 12,120,640 63,272,122 66,618,453

-- -- 22,709 218,433,467 -- 18,760,097 1,067,308,683 805,533,395 2,110,058,351 2,251,653,827

-- -- -- 123,298,626 -- 4,017,987 148,427,484 120,058,926 395,803,023 416,326,665

DEFERRED INFLOWS OF RESOURCES

$

17,736,357 $

3,578,434 $

162,145,015 $

22,279,463

158 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2020

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

$

56,168,821 $

13,870,216 $

1,734,837,014 $

154,307,832

10,114,911 3,203,831 -- -- --
(82,091,919)

311,627 264,243
-- -- -- (24,775,576)

66,551,346 147,865,445
-- -- -- (1,399,655,939)

3,031,091 3,121,380
-- -- -- (178,638,063)

$

(12,604,356) $

(10,329,490) $

549,597,866 $

(18,177,760)

2020 Annual Financial Report 159

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2020

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 Other 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

$

49,793,158 $

49,383,047 $

208,733,881

2,009,035

327,061

6,398,380

--

--

--

2,832,037 28,745 --
4,115,860 --
1,002,926 2,014,864
-- 61,796,625

3,251,440 296,521
1,708,484
17,708 --
54,984,261

765,974 39,759 --
82,339,751 163,052 139,397 893,060
2,052,742 301,525,996

-- -- 1,376,057 -- -- 2,800,982 841,365 -- -- 300,508,219 305,526,623 367,323,248

1,252,123
-- 12,919 35,634
8,964,828 280,034,156 290,299,660 345,283,921

-- -- -- 27,368,399 -- 645,671 -- -- 10,645,832 465,705,062 504,364,964 805,890,960

$

55,324,998 $

27,922,250 $

24,368,283

160 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2020

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

$

5,990,893 $

2,455,970 $

11,950,781

843,652

694,117

276,079

1,221,895

886,576

46,977,850

126,186

142,754

79,971

200,448

--

--

--

--

--

--

--

--

--

--

6,078,443

4,190,032

2,769,404

--

621,034

--

58,236

19,864

--

37,678

42,802

29,891

--

--

2,209,232

653,307

2,693,951

3,261,225

6,258,372

--

--

--

--

--

3,372,640

2,579,912

3,178,352

23,280,051

18,602,434

68,019,062

-- -- 37,443,989 112,442,178 -- 1,719,674 141,005,844 97,343,963 389,955,648 413,235,699

3,529,366 151,919,230
1,644,469 109,290,532
64,778,033 331,161,630 349,764,064

-- -- 31,685,201 -- -- 2,151,097 48,974,267 60,373,552 143,184,117 211,203,179

$

22,721,229 $

26,082,039 $

486,784,230

2020 Annual Financial Report 161

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2020

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

$

144,268,820 $

115,921,042 $

267,822,225

-- 4,477,040
-- -- -- (162,054,542)

4,708,887 4,631,555
-- -- -- (127,901,416)

3,612,043 13,573,959
-- -- -- (152,736,393)

$

(13,308,682) $

(2,639,932) $

132,271,834

162 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2020

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 Other Investments Notes Receivable, net Other Assets Non-current Cash (Externally Restricted) Short-term Investments (Externally Restricted) Investments (Externally Restricted) Capital Assets, net
Total Non-Current Assets TOTAL ASSETS
DEFERRED OUTFLOWS OF RESOURCES

Preliminary Total

Elimination/ Consolidation Entries

Consolidated Total

$

1,608,128,218 $

263,100,044

14,015,658

755,430

87,566,062 14,549,036 287,193,413 206,248,960
163,052 21,477,010 75,371,465
2,052,742 2,580,621,090

20,132,412 $ -- -- --
-- -- -- (47,561,966) (163,052) -- -- -- (27,592,606)

1,628,260,630 263,100,044 14,015,658 755,430
87,566,062 14,549,036 287,193,413 158,686,994
-- 21,477,010 75,371,465
2,052,742 2,553,028,484

990,440 2,756,081 20,529,113 27,368,399 101,674,829 29,402,867
-- 2,541,191
41,891 297,770,445 10,223,868,913 10,706,944,169 13,287,565,259

$

1,467,036,178 $

-- -- (20,529,113) -- 6,939 (645,671) 2,868,572 -- -- -- (1) (18,299,274) (45,891,880)
(65,606,366) $

990,440 2,756,081
-- 27,368,399 101,681,768 28,757,196
2,868,572 2,541,191
41,891 297,770,445 10,223,868,912 10,688,644,895 13,241,673,379
1,401,429,812

2020 Annual Financial Report 163

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2020

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

$

196,920,134 $

33,384,272

65,821,361

12,835,636

6,605,455

--

2,254,461

10,123,067

441,404

236,242,316

7,960,369

1,227,061

8,819,178

1,862,320

29,555,597

92,160,913

1,265,989

2,382,236

162,311,938

872,173,707

(30,688,235) $ --
(18,926,686) -- --
2,052,958 -- --
(441,404) -- -- -- (2)
(163,052) (8,191,097) 8,191,096
-- -- -- (48,166,422)

166,231,899 33,384,272 46,894,675 12,835,636 6,605,455 2,052,958 2,254,461 10,123,067 --
236,242,316 7,960,369 1,227,061 8,819,176 1,699,268
21,364,500 100,352,009
1,265,989 2,382,236 162,311,938 824,007,285

6,129,733 9,488,803 540,879,822 2,147,171,819 1,102,829 99,268,663 4,471,567,994 3,360,176,089 10,635,785,752 11,507,959,459

$

1,328,737,604 $

-- (645,671) (63,028,934) 63,028,933
-- -- 1 1 (645,670) (48,812,092)
(65,486,786) $

6,129,733 8,843,132 477,850,888 2,210,200,752 1,102,829 99,268,663 4,471,567,995 3,360,176,090 10,635,140,082 11,459,147,367
1,263,250,818

164 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY INSTITUTION (Unaudited) JUNE 30, 2020

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

$

7,126,610,051 $

808,723 $

7,127,418,774

184,012,099 275,758,295
-- -- -- (5,668,476,071)

-- (275,758,295)
12,439,642 52,223,237 211,095,416
1,991,909

184,012,099 --
12,439,642 52,223,237 211,095,416 (5,666,484,162)

$

1,917,904,374 $

2,800,632 $

1,920,705,006

2020 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, 2020 (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

$

12,017,329 $

18,575,472 $

--

--

--

--

2,671,794 $ -- --

100,539,902 -- --

171,376 -- --
341,958 152,963

17,195,588 656,112
1,294,061 570,339 --

2,497,528 31,360
170,231 23,326 76,369

67,296,556 272,448,290 249,812,478
22,783,254 2,090,812

2,461,783 2,234,498 2,625,401
173,013 403,756 528,235 476,474 230,633

8,877,433 131,268
5,467,142 355,155 421,850
1,794,127 486,062
2,010,067

-- 70,257 30,384
-- -- (35,277) 10,500 179,160

4,674,824 1,410,210 1,948,751 5,881,348 2,671,889 3,026,602 3,825,106
15,413

21,817,419

57,834,676

5,725,632

738,425,435

9,744,922 13,047,825 11,063,193
290,055 306,899 8,626,045 1,392,151 16,870,757 3,125,475

17,854,462 23,720,288 16,410,422
480,895 448,556 12,592,730 3,910,397 22,459,600 9,614,149

2,824,944 6,045,063 4,399,399
124,710 66,314
3,564,441 809,427
3,212,952 1,237,124

241,038,922 258,637,429 205,547,228
4,572,511 3,413,020 13,438,832 11,578,482 271,386,692 34,013,103

64,467,322

107,491,499

22,284,374

1,043,626,219

$

(42,649,903) $

(49,656,823) $

(16,558,742) $

(305,200,784)

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, 2020 (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

$

25,525,409 $

28,963,188 $

9,964,069 $

245,803,223

12,842,353 147,976 483,276 794,321 151,202 (3,209) (15,723)

20,077,455 -- --
1,077,881 26,383
(5,014,049) 291,251

6,671,215 -- --
320,636 --
(549,204) --

16,529,985 --
4,465,494 11,592,485
1,934,647 (1,830,960)
(913,021)

Net Nonoperating Revenues

39,925,605

45,422,109

16,406,716

277,581,853

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

(2,724,298)

(4,234,714)

(152,026)

(27,618,931)

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item

-- -- 82,800 -- --

--

--

--

18,138

8,162,271

--

3,213

--

--

--

--

--

--

3,874,183

Total Other Revenues, Expenses, Gains or Losses

82,800

--

21,351

12,036,454

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

(2,641,498) 6,314,590

(4,234,714) (8,252,306)

(130,675) 1,615,021

(15,582,477) (86,662,592)

Net Position, End of Year

$

3,673,092 $

(12,487,020) $

1,484,346 $

(102,245,069)

2020 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, 2020 (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

$

25,872,298 $

--

--

6,933,473 $ -- --

38,840,240 $ -- --

8,643,070 -- --

1,583,941 111,960 212,458
1,520,798 7,887

20,042 -- --
3,289 10,089

1,858,373 155,852 66,803
3,050,467 45,593

272,200 146,808 1,131,994
2,150 --

5,206,755 533,787
1,266,428 378,936 519,489
1,820,814 324,679
1,048,965

860,862 108,205 1,581,385
-- -- 1,073,959 882,777 86,521

4,966,979 193,195
3,894,463 1,230,140
609,226 2,174,989
251,606 450,255

571,635 99,443
740,903 531,883 197,135 1,028,871 327,300 448,218

40,409,195

11,560,602

57,788,181

14,141,610

21,347,779 22,144,569 19,588,048
533,054 327,015 12,426,344 2,341,374 14,158,654 5,784,499

8,747,100 9,353,211 8,373,383
101,067 168,866 4,223,692 926,442 7,671,717 2,820,608

27,225,490 30,937,676 26,454,884
298,385 689,102 10,985,996 4,606,945 28,907,931 4,972,511

11,835,787 9,357,690
10,445,352 214,041 197,659
8,390,561 630,468
9,328,840 2,232,022

98,651,336

42,386,086

135,078,920

52,632,420

$

(58,242,141) $

(30,825,484) $

(77,290,739) $

(38,490,810)

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, 2020 (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

$

28,227,234 $

17,676,758 $

45,546,523 $

19,114,453

23,114,270 --
700,069 --
118,167 (2,797,916)
--

9,564,595 54,146
1,079,271 296,905 18,203 (311,392) (3,441)

19,425,972 --
4,621,174 878,438 118,393
(1,646,560) (15,462)

15,450,151 -- --
702,053 7,849
(330,551) (9,608)

Net Nonoperating Revenues

49,361,824

28,375,045

68,928,478

34,934,347

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

(8,880,317)

(2,450,439)

(8,362,261)

(3,556,463)

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item

-- 317,893
-- -- --

-- 846,283
-- -- --

-- 5,745,392
-- -- --

3,754,134 5,800 -- --

Total Other Revenues, Expenses, Gains or Losses

317,893

846,283

5,745,392

3,759,934

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

(8,562,424) (22,985,602)

(1,604,156) 27,505,604

(2,616,869) (12,383,445)

203,471 9,647,668

Net Position, End of Year

$

(31,548,026) $

25,901,448 $

(15,000,314) $

9,851,139

2020 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, 2020 (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

$

3,325,502 $

9,106,732 $

59,947,932 $

40,417,717

--

--

--

--

--

6,505,897

--

72,374 119,206
3,000 94,171
2,893

512,096 41,129 76,932
238,149 184,834

490,229 805,772
10,275 2,149,649
76,771

337,932 200,147 165,549 235,240
5,410

678,455 55,173
958,069 156,066
55,415 505,125
3,427 236,698

6,134,010 20,857
3,938,315 135,020 330,488
1,315,037 1,075,388
555,259

12,709,593 979,757
6,115,083 1,253,512
-- 1,849,601
272,536 401,723

7,327,421 465,632 310,795
2,057,086 943,770
3,732,672 180,435 385,592

6,265,574

30,170,143

87,062,433

56,765,398

5,419,407 5,771,115 5,975,350
97,390 95,730 5,485,328 629,076 5,281,013 938,890

10,168,097 20,628,057 15,980,511
362,917 732,477 8,171,806 3,728,352 20,629,735 7,212,615

30,307,802 34,497,267 32,816,972
275,510 804,810 5,609,199 2,980,727 31,591,057 10,128,529

42,797,125 25,111,435 30,786,446
520,558 532,054 21,972,292 2,431,066 22,197,637 8,628,624

29,693,299

87,614,567

149,011,873

154,977,237

$

(23,427,725) $

(57,444,424) $

(61,949,440) $

(98,211,839)

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, 2020 (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

$

10,123,680 $

24,251,666 $

43,385,510 $

59,715,596

10,295,620 95,651
322,676 623,286
26,502 (32) (53)

29,555,832 741
1,659,841 1,150,114
9,758 (3,058,959)
79,213

11,716,887 160,237
1,536,125 702,578 267,718
(5,248,224) (383,349)

42,529,300 --
231,885 109,338 323,623 (8,423,082) (13,725)

Net Nonoperating Revenues

21,487,330

53,648,206

52,137,482

94,472,935

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

(1,940,395)

(3,796,218)

(9,811,958)

(3,738,904)

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item

-- 3,352,982
-- -- --

1,101,706 3,730,950

-- 14,242,128
255,970 374,372
--

-- 75,416 314,254
-- --

Total Other Revenues, Expenses, Gains or Losses

3,352,982

4,832,656

14,872,470

389,670

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

1,412,587 3,839,238

1,036,438 1,428,547

5,060,512 (39,686,126)

(3,349,234) 34,408,419

Net Position, End of Year

$

5,251,825 $

2,464,985 $

(34,625,614) $

31,059,185

2020 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, 2020 (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

$

11,212,291 $

426,887,568 $

139,525,235 $

11,652,237

--

--

--

--

--

--

--

--

388,179 131,010 258,765 265,240 158,357

742,169,121 21,456,031
235,769,969 39,522,880 2,729,603

4,810,636 791,797
9,039,836 3,080,834
353,486

590,080 273,971 4,645,216 268,914
15,112

-- 96,473 52,058 86,455
-- 1,017,526
225,471 733,098

66,033,330 1,848,979 6,462,107
17,054,716 11,841,656
-- 1,585,685 5,832,859

23,853,591 7,420,907
17,989,845 3,878,253 3,939,900
16,304,448 201,561
2,668,837

3,100,579 814,849
2,022,051 67,883
316,968 960,160 370,464 219,796

14,624,923

1,579,194,504

233,859,166

25,318,280

11,241,611 9,823,309
10,267,807 208,044 209,634
7,800,353 1,452,330 9,259,093 2,100,697

489,717,264 421,045,911 317,802,172
3,849,543 22,844,301 44,543,244 32,428,415 509,890,325 107,839,242

91,041,350 113,864,925
93,742,884 1,484,014 2,493,808
36,909,226 14,292,378 86,710,602 32,818,504

10,210,428 9,690,227
10,186,765 104,254 287,783
4,238,245 1,625,923 12,651,982 3,412,786

52,362,878

1,949,960,417

473,357,691

52,408,393

$

(37,737,955) $

(370,765,913) $

(239,498,525) $

(27,090,113)

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, 2020 (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

$

20,387,263 $

352,634,527 $

142,222,525 $

16,166,779

13,926,344 -- --
300,846 3,330
(800,614) (20,000)

15,604,262 -- --
1,961,573 28,777,713 (24,913,791) (3,088,023)

67,099,873 --
28,425 9,441,391 1,224,077 (10,204,652) (968,077)

6,975,383 -- --
1,395,649 137,482
(1,364,643) 4,397

Net Nonoperating Revenues

33,797,169

370,976,261

208,843,562

23,315,047

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

(3,940,786)

210,348

(30,654,963)

(3,775,066)

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item

-- 1,115,842
-- -- --

-- 9,603,933 4,266,891
416,832 --

-- 3,660,504
156,392 --
1,972,951

-- 1,216,725
777,815 -- --

Total Other Revenues, Expenses, Gains or Losses

1,115,842

14,287,656

5,789,847

1,994,540

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

(2,824,944) 10,698,882

14,498,004 1,011,809,918

(24,865,116) 93,622,741

(1,780,526) 8,346,650

Net Position, End of Year

$

7,873,938 $

1,026,307,922 $

68,757,625 $

6,566,124

2020 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, 2020 (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

$

316,560,606 $

--

5,845,710 $ --

210,446,160 $ -- --

24,257,160 -- --

105,056,889 12,374,227 60,305,265 20,739,969 275,780

1,380 223,921 273,506
81,593 60,562

1,915,699 1,141,966 11,101,067 12,722,983
733,825

208,893 157,454
5,490 637,247 221,517

15,807,798 1,041,623
14,450,808 7,082,861 3,363,064
15,403,381 5,282,689 3,999,437

4,074,844 1,044,903 2,023,985
54,277 93,887 422,823 64,538 260,862

13,975,152 10,513,220 19,069,213
8,232,788 3,241,984 11,806,989 5,523,853
863,337

7,823,485 2,447,455 3,508,031
172,749 182,180 1,166,992 518,498 1,053,391

581,744,397

14,526,791

311,288,236

42,360,542

216,667,087 264,119,588 184,454,268
3,248,932 5,403,295 92,566,204 19,303,536 174,772,850 55,508,339

1,016,044,099

$

(434,299,702) $

8,611,917 6,453,509 8,244,099
237,439 97,205
5,293,783 1,479,073 7,427,008 3,439,661
41,283,694
(26,756,903) $

130,467,419 120,321,584 116,759,943
1,757,720 2,676,024 44,728,975 12,692,802 109,362,007 31,690,345
570,456,819
(259,168,583) $

23,830,492 20,723,642 21,192,655
313,107 386,088 12,876,141 3,177,818 21,647,815 7,521,353
111,669,111
(69,308,569)

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, 2020 (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

$

285,218,303 $

13,778,339 $

162,264,538 $

36,902,006

139,627,132 --
4,447,802 20,032
5,151,913 (11,522,007)
(658,457)

12,030,465
461,670 180,208 (1,496,562)
(1,086)

79,555,175 92,149
3,934,525 5,750,005 1,981,016 (13,654,027) (866,281)

24,254,523 859,795 901,278
1,250,961 290,835
(3,320,519) (375)

Net Nonoperating Revenues

422,284,718

24,953,034

239,057,100

61,138,504

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

(12,014,984)

(1,803,869)

(20,111,483)

(8,170,065)

Capital Grants and Gifts

Federal

--

--

--

State

10,976,355

1,374,949

5,356,356

--

Other

889,082

150,000

3,930,945

--

Additions to Permanent and Term Endowments

--

--

--

Special Item

--

(1,068,640)

--

Total Other Revenues, Expenses, Gains or Losses

11,865,437

1,524,949

8,218,661

--

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

(149,547) 244,240,204

(278,920) 13,266,384

(11,892,822) 29,030,205

(8,170,065) 33,763,869

Net Position, End of Year

$

244,090,657 $

12,987,464 $

17,137,383 $

25,593,804

2020 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, 2020 (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

$

11,688,972 $

--

--

2,746,017 $ -- --

484,075,097 $ --
15,327,644

79,636,999 -- --

9,705,535 133,672
1,594,915 1,040,233
28,663

30,835 25,750
18,586 7,055

192,909,657 29,875,853 65,679,668 92,838,975 1,130,131

-- -- -- 2,260,348 46,053

10,412,337 117,113
5,094,100 480,371 401,238
1,975,926 42,005
(247,320)

1,125,831 683,808 687,801 3,760 -- 371,117 63,200 191,709

45,354,215 3,371,894
36,087,214 17,178,775 22,650,483 40,996,991
9,568,522 10,370,874

10,105,523 3,609,486 7,512,844 4,901,581 1,338,153 3,070,835 76,678 2,428,184

42,467,760

5,955,469

1,067,415,993

114,986,684

13,526,005 17,463,908 15,641,127
168,305 321,326 9,525,102 3,922,585 22,219,478 7,655,744

5,290,903 5,687,114 5,579,112
322,489 214,546 4,653,997 1,329,237 4,343,124 2,456,361

385,551,051 476,522,921 395,877,944
2,572,541 14,909,014 58,111,391 41,094,014 284,618,408 102,623,470

57,951,522 58,977,525 63,956,065
537,189 1,302,390 22,224,467 5,047,516 42,786,396 16,348,751

90,443,580

29,876,883

1,761,880,754

269,131,821

$

(47,975,820) $

(23,921,414) $

(694,464,761) $

(154,145,137)

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, 2020 (Unaudited)

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)

Savannah State University

South Georgia State College

University of Georgia

University of North Georgia

$

24,837,997 $

12,177,196 $

528,907,494 $

86,637,234

20,931,603 --
1,294,950 1,298,932 1,060,750 (4,109,670) (547,185)

8,797,442 --
166,119 169,100
15,292 (1,365,778)
(5,181)

54,348,728 8,100,707
45,069,486 22,518,101 10,584,914 (11,543,032) (6,783,980)

43,364,000 465,329
3,782,223 2,953,761
567,229 (5,370,451)
(23,829)

Net Nonoperating Revenues

44,767,377

19,954,190

651,202,418

132,375,496

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

(3,208,443)

(3,967,224)

(43,262,343)

(21,769,641)

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item

-- 3,654,576
-- --

-- 760,635
-- -- --

-- 19,425,624
841,095 171,059
--

-- 2,096,676
663,042 --
3,188,975

Total Other Revenues, Expenses, Gains or Losses

3,654,576

760,635

20,437,778

5,948,693

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

446,133 (13,050,489)

(3,206,589) (7,122,901)

(22,824,565) 572,422,431

(15,820,948) (2,356,812)

Net Position, End of Year

$

(12,604,356) $

(10,329,490) $

549,597,866 $

(18,177,760)

2020 Annual Financial Report 177

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY INSTITUTION FOR FISCAL YEAR ENDED JUNE 30, 2020 (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

$

79,974,865 $

60,696,891 $

--

--

--

--

610,550 -- --

1,451,417 521,853
1,770,690 435,497 13,563

1,281,780 161,496
1,816,532 704,308 665,161

188,584 --
1,453,718 59,239,201
7,911

14,299,557 1,644,022 8,111,262 1,265,621 2,110,491 6,255,867 560,410 2,325,542

10,975,371 1,320,794 8,023,194 4,238,523 2,653,098 2,923,538 448,219 709,050

10,601,024 -- -- -- -- -- --
497,947,683

120,740,657

96,617,955

570,048,671

46,102,048 57,461,038 56,404,877
661,331 1,208,990 15,887,842 4,110,137 44,923,848 15,809,021

242,569,132

$

(121,828,475) $

37,810,510 35,086,633 33,012,977
2,225,653 851,965
23,436,435 4,872,958
29,267,241 16,556,774
183,121,146
(86,503,191) $

14,218 45,418,775 24,356,887
1,231,794 1,065,288
340,902 7,371,270 662,808,645 22,593,618
765,201,397
(195,152,726)

178 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, 2020 (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

$

67,449,485 $

51,584,515 $

191,893,420

32,454,991 -- --
553,841 901,947 (7,329,019) (99,655)

33,805,242 76,313
133,848 1,014,655
447,851 (6,076,461)
3,985

8,392,209 355,543
18,483,521 125,228
5,017,224 (1,449,830) (13,787,065)

93,931,590

80,989,948

209,030,250

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

(27,896,885)

-- 1,629,807
364,875 -- --

1,994,682

(25,902,203) 12,593,521

$

(13,308,682) $

(5,513,243)
-- 2,979,943
852,073 1,293
3,833,309 (1,679,934)
(959,998) (2,639,932) $

13,877,524
-- 41,437 4,636,064
-- --
4,677,501
18,555,025 113,716,809
132,271,834

2020 Annual Financial Report 179

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY INSTITUTION FOR FISCAL YEAR ENDED JUNE 30, 2020 (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

$

2,192,707,819 $

--

21,833,541

638,633,076 $ (638,633,076)
--

2,831,340,895 (638,633,076)
21,833,541

1,153,016,920 341,985,637 646,658,418 264,869,598 9,100,400

(7,491,043) (2,027,250) (1,598,222) (43,977,731)
(212,480)

1,145,525,877 339,958,387 645,060,196 220,891,867 8,887,920

292,012,387 42,277,808
159,971,632 76,850,772 58,286,120
121,491,348 32,648,083
535,405,843

(19,810,045) -- -- -- -- -- --
(350,781,588)

272,202,342 42,277,808
159,971,632 76,850,772 58,286,120
121,491,348 32,648,083
184,624,255

5,949,116,326

(425,898,359)

5,523,217,967

1,957,345,662 2,121,912,234 1,745,320,770
26,793,448 62,054,159 498,623,573 190,164,899 2,476,385,407 519,082,815

9,597,682,967

$

(3,648,566,641) $

-- -- (326,243,942) -- -- -- -- (100,204,986) --
(426,448,928)
550,569 $

1,957,345,662 2,121,912,234 1,419,076,828
26,793,448 62,054,159 498,623,573 190,164,899 2,376,180,421 519,082,815
9,171,234,039
(3,648,016,072)

180 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, 2020 (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

$

2,551,358,930 $

(1) $

2,551,358,929

778,941,007 10,408,587 93,341,988 67,463,780 59,344,226
(133,735,194) (27,824,730)

-- -- -- -- 762 50,879 (1,068,639)

778,941,007 10,408,587 93,341,988 67,463,780 59,344,988
(133,684,315) (28,893,369)

3,399,298,594

(1,016,999)

3,398,281,595

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

(249,268,047)

1,101,706 104,138,949
18,190,311 963,556
7,967,469

132,361,991

(116,906,056) 2,034,810,430

$

1,917,904,374 $

(466,430)

(249,734,477)

-- 1,842,218
-- -- (3,123,338)
(1,281,120)
814,690 1,985,942
2,800,632 $

1,101,706 102,296,731
18,190,311 963,556
11,090,807
133,643,111
(116,091,366) 2,036,796,372
1,920,705,006

2020 Annual Financial Report 181

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF FIDUCIARY NET POSITION - STUDENT SUPPORT BY INSTITUTION (Unaudited) JUNE 30, 2020

Abraham Baldwin Agricultural College

Albany State University

Atlanta Metropolitan State College

Augusta University

ASSETS

Cash and Cash Equivalents

$

Investments

Receivables

Due From Component Units

Due From Affiliated Organizations

Other

Total Assets

LIABILITIES Cash Overdraft Accounts Payable Benefits Payable Due to Component Units Advances Deposits held for other organizations Other Liabilities

Total Liabilities

NET POSITION Restricted for:

Individuals, Organizations, and Other

Governments

$

143,593 $ --
-- -- 423,362
566,955
-- 47,838
-- -- -- 13,602 --
61,440
505,515 $

51,437 --
-- -- 374,079
425,516
--
174,272
-- -- --
39,533 --
213,805
211,711 $

210,147 $ --
-- -- 146,454
356,601
-- -- -- -- --
87,365 --
87,365

-- --
-- -- 2,425,407
2,425,407
608,375 1,281,365
-- -- -- 9,664 --
1,899,404

269,236 $

526,003

2020 Annual Financial Report 182

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF FIDUCIARY NET POSITION - STUDENT SUPPORT BY INSTITUTION (Unaudited) JUNE 30, 2020

Clayton State University

College of Coastal Georgia

Columbus State University

Dalton State College

ASSETS

Cash and Cash Equivalents

$

Investments

Receivables

Due From Component Units

Due From Affiliated Organizations

Other

Total Assets

LIABILITIES Cash Overdraft Accounts Payable Benefits Payable Due to Component Units Advances Deposits held for other organizations Other Liabilities

Total Liabilities

NET POSITION Restricted for:

Individuals, Organizations, and Other

Governments

$

2,299,651 $ --
-- -- 823,598
3,123,249
-- 2,505
-- -- 3,049,986 4,564 --
3,057,055
66,194 $

191,759 $ --
-- -- 146,667
338,426
-- 19,098
-- -- -- -- --
19,098

-- $ --
-- -- 2,460,333
2,460,333
2,119,832 32 -- -- --
46,639 --
2,166,503

319,328 $

293,830 $

-- --
-- -- 605,124
605,124
456,708 -- -- -- --
33,319 --
490,027
115,097

2020 Annual Financial Report 183

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF FIDUCIARY NET POSITION - STUDENT SUPPORT BY INSTITUTION (Unaudited) JUNE 30, 2020

East Georgia State College

Fort Valley State University

Georgia College & State University

Georgia Gwinnett College

ASSETS

Cash and Cash Equivalents

$

Investments

Receivables

Due From Component Units

Due From Affiliated Organizations

Other

Total Assets

LIABILITIES Cash Overdraft Accounts Payable Benefits Payable Due to Component Units Advances Deposits held for other organizations Other Liabilities

Total Liabilities

NET POSITION Restricted for:

Individuals, Organizations, and Other

Governments

$

-- $ --
-- -- 406,678
406,678
363,150 1,235 -- -- -- 6,105 --
370,490
36,188 $

-- $ --
-- -- 677,897
677,897
463,009 25,966 -- -- -- -- 1,130
490,105

-- $ --
-- -- 2,541,824
2,541,824
2,039,956 -- -- -- --
212 --
2,040,168

187,792 $

501,656 $

-- --
-- -- 90,823
90,823
18,764 -- -- -- -- -- --
18,764
72,059

2020 Annual Financial Report 184

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF FIDUCIARY NET POSITION - STUDENT SUPPORT BY INSTITUTION (Unaudited) JUNE 30, 2020

Georgia Highlands College

Georgia Institute of Technology

Georgia Southern University

Georgia Southwestern University

ASSETS

Cash and Cash Equivalents

$

Investments

Receivables

Due From Component Units

Due From Affiliated Organizations

Other

Total Assets

LIABILITIES Cash Overdraft Accounts Payable Benefits Payable Due to Component Units Advances Deposits held for other organizations Other Liabilities

Total Liabilities

NET POSITION Restricted for:

Individuals, Organizations, and Other

Governments

$

-- $ --
-- -- 571,033
571,033
538,907 55 -- -- -- -- --
538,962

-- $ --
-- -- 9,174,396
9,174,396
7,935,880 795 -- -- -- -- --
7,936,675

-- $ 14,500
-- -- 6,332,083
6,346,583
4,418,247 104,264 -- -- 12,015 16,939 --
4,551,465

32,071 $

1,237,721 $

1,795,118 $

-- --
-- -- 527,171
527,171
474,151 7,778 -- -- --
12,560 --
494,489
32,682

2020 Annual Financial Report 185

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF FIDUCIARY NET POSITION - STUDENT SUPPORT BY INSTITUTION (Unaudited) JUNE 30, 2020

Georgia State University Gordon State College

Kennesaw State University

Middle Georgia State University

ASSETS

Cash and Cash Equivalents

$

Investments

Receivables

Due From Component Units

Due From Affiliated Organizations

Other

Total Assets

LIABILITIES Cash Overdraft Accounts Payable Benefits Payable Due to Component Units Advances Deposits held for other organizations Other Liabilities

Total Liabilities

NET POSITION Restricted for:

Individuals, Organizations, and Other

Governments

$

-- $ --
-- 2,880 10,397,755
10,400,635
9,831,715 824 -- -- -- -- --
9,832,539
568,096 $

-- $ --
-- -- 1,294,135
1,294,135
1,030,785 978 -- -- --
5,987 --
1,037,750
256,385 $

-- $ --
-- -- 8,419,311
8,419,311
7,803,346 -- -- --
591,034 -- --
8,394,380
24,931 $

-- --
-- -- 700,013
700,013
418,799 -- -- -- -- -- --
418,799
281,214

2020 Annual Financial Report 186

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF FIDUCIARY NET POSITION - STUDENT SUPPORT BY INSTITUTION (Unaudited) JUNE 30, 2020

Savannah State University

South Georgia State College

University of Georgia

University of North Georgia

ASSETS

Cash and Cash Equivalents

$

Investments

Receivables

Due From Component Units

Due From Affiliated Organizations

Other

Total Assets

LIABILITIES Cash Overdraft Accounts Payable Benefits Payable Due to Component Units Advances Deposits held for other organizations Other Liabilities

Total Liabilities

NET POSITION Restricted for:

Individuals, Organizations, and Other

Governments

$

-- $ --
-- -- 1,988,376
1,988,376
957,813 41,508 -- -- --
134,369 --
1,133,690
854,686 $

-- $ --
-- -- 470,623
470,623
452,071 110 -- -- -- -- --
452,181

-- $ --
-- -- 16,142,278
16,142,278
14,446,699 -- -- -- --
2,615 --
14,449,314

-- --
-- 19,812 3,553,170
3,572,982
3,367,143 -- -- -- -- -- --
3,367,143

18,442 $

1,692,964 $

205,839

2020 Annual Financial Report 187

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF FIDUCIARY NET POSITION - STUDENT SUPPORT BY INSTITUTION (Unaudited) JUNE 30, 2020

ASSETS Cash and Cash Equivalents Investments Receivables Due From Component Units Due From Affiliated Organizations Other
Total Assets
LIABILITIES Cash Overdraft Accounts Payable Benefits Payable Due to Component Units Advances Deposits held for other organizations Other Liabilities
Total Liabilities
NET POSITION Restricted for:
Individuals, Organizations, and Other Governments

University of West Georgia

Valdosta State University University System Office

$

-- $

-- $

20,180,709

--

--

--

-- -- 2,769,353

-- -- 5,594,278

-- -- 499,092

2,769,353

5,594,278

20,679,801

2,597,518 70,791 -- -- -- -- --
2,668,309

5,574,412 19,866 -- -- -- -- --
5,594,278

-- 14,256
-- -- -- 20,588,315 --
20,602,571

$

101,044 $

-- $

77,230

2020 Annual Financial Report 188

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF FIDUCIARY NET POSITION - STUDENT SUPPORT BY INSTITUTION (Unaudited) JUNE 30, 2020

ASSETS Cash and Cash Equivalents Investments Receivables Due From Affiliated Organizations Other
Total Assets
LIABILITIES Cash Overdraft Accounts Payable Advances Deposits held for other organizations Other Liabilities
Total Liabilities
NET POSITION Restricted for:
Individuals, Organizations, and Other Governments

Preliminary Total

Elimination/ Consolidation Entries

Consolidated Total

$

23,077,296 $

14,500

22,692 79,555,313

102,669,801

65,917,280 1,813,536 3,653,035
21,001,788 1,130
92,386,769

(23,077,296) $ (14,500) -- --
(441,403)
(23,533,199)
(2,944,884) -- --
(20,588,315) --
(23,533,199)

-- -- -- 22,692 79,113,910
79,136,602
62,972,396 1,813,536 3,653,035 413,473 1,130
68,853,570

$

10,283,032 $

-- $

10,283,032

2020 Annual Financial Report 189

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION - STUDENT SUPPORT BY INSTITUTION (Unaudited) JUNE 30, 2020

Abraham Baldwin Agricultural College

Albany State University

Atlanta Metropolitan State College

Augusta University

ADDITIONS

Investment Income:

Dividends and Interest

$

Net Appreciation in Investments Reported at Fair Value

Less: Investment Expense

Federal Financial Aid State Financial Aid Other Financial Aid
Clubs and Other Organizations Fund Raising Public-Private Partnership Passthrough

Total Additions

DEDUCTIONS
Scholarships and Other Student Support Student Organizations Support Public-Private Partnership Passthrough Other Payments

Total Deductions
Net Increase (Decrease) in Fiduciary Net Position

Net Position, Beginning of Year
Net Position, Beginning of Year, As Originally Reported
Prior Year Adjustments

Net Position, Beginning of Year

-- $
-- 9,526,075 3,906,443 1,298,912
314,892 7,690,154 22,736,476
14,878,293 325,374
7,682,942 --
22,886,609
(150,133)
-- 655,648 655,648

-- $
-- 36,371,254
5,209,160 2,978,429
362,070
--
44,920,913
44,323,886 530,095 -- --
44,853,981
66,932
-- 144,779 144,779

-- $
--
3,782,933 513,914 193,815 23,234
--
4,513,896

--
--
94,009,485 17,211,509
2,926,311 2,792,742 5,294,176
122,234,223

4,466,000 29,333 -- --
4,495,333
18,563

114,366,375 3,097,688 5,318,138 --
122,782,201
(547,978)

-- 250,673
250,673

-- 1,073,981
1,073,981

Net Position, End of Year

$

505,515 $

211,711 $

269,236 $

526,003

2020 Annual Financial Report 190

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION - STUDENT SUPPORT BY INSTITUTION (Unaudited) JUNE 30, 2020

Clayton State University

College of Coastal Georgia

Columbus State University

Dalton State College

ADDITIONS

Investment Income:

Dividends and Interest

$

Net Appreciation in Investments Reported at Fair Value

Less: Investment Expense

Federal Financial Aid State Financial Aid Other Financial Aid Clubs and Other Organizations Fund Raising Public-Private Partnership Passthrough

Total Additions

DEDUCTIONS
Scholarships and Other Student Support Student Organizations Support Public-Private Partnership Passthrough Other Payments

Total Deductions
Net Increase (Decrease) in Fiduciary Net Position

Net Position, Beginning of Year
Net Position, Beginning of Year, As Originally Reported
Prior Year Adjustments

Net Position, Beginning of Year

-- $
-- 35,334,952
7,635,796 1,137,460
246,125 --
44,354,333
44,184,329 287,724 -- --
44,472,053
(117,720)
-- 183,914 183,914

-- $
-- 7,820,051 3,109,821
448,420 5,196
3,513,514 14,897,002
11,343,293 3,779
3,494,798 --
14,841,870
55,132
-- 264,196 264,196

-- $
-- 38,754,232 10,810,462
4,427,695 83,683
3,244,206 57,320,278
53,925,611 121,130
5,649,740 --
59,696,481
(2,376,203)
-- 2,670,033 2,670,033

--
-- 5,461,383 5,353,837
461,114 4,682
846,970 12,127,986
11,266,349 29,498
861,922 --
12,157,769
(29,783)
-- 144,880 144,880

Net Position, End of Year

$

66,194 $

319,328 $

293,830 $

115,097

2020 Annual Financial Report 191

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION - STUDENT SUPPORT BY INSTITUTION (Unaudited) JUNE 30, 2020

East Georgia State College

Fort Valley State University

Georgia College & State University

Georgia Gwinnett College

ADDITIONS

Investment Income:

Dividends and Interest

$

Net Appreciation in Investments Reported at Fair Value

Less: Investment Expense

Federal Financial Aid State Financial Aid Other Financial Aid Clubs and Other Organizations Fund Raising Public-Private Partnership Passthrough

Total Additions

DEDUCTIONS
Scholarships and Other Student Support Student Organizations Support Public-Private Partnership Passthrough Other Payments

Total Deductions
Net Increase (Decrease) in Fiduciary Net Position

Net Position, Beginning of Year
Net Position, Beginning of Year, As Originally Reported
Prior Year Adjustments

Net Position, Beginning of Year

-- $
-- 6,517,244 1,644,738
235,042 23,368
2,854,709 11,275,101
8,406,426 24,599
2,835,748 5
11,266,778
8,323
-- 27,865 27,865

-- $
-- 25,020,380
2,989,726 1,109,052
199,436 --
29,318,594
29,090,289 203,962 -- --
29,294,251
24,343
-- 163,449 163,449

-- $
-- 31,241,502 30,656,221
3,951,370 280,839 --
66,129,932
65,889,561 282,824 -- --
66,172,385
(42,453)
-- 544,109 544,109

--
-- 33,171,377 12,425,549
1,808,453 (3,507) --
47,401,872
47,419,175 163,677 -- --
47,582,852
(180,980)
-- 253,039 253,039

Net Position, End of Year

$

36,188 $

187,792 $

501,656 $

72,059

2020 Annual Financial Report 192

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION - STUDENT SUPPORT BY INSTITUTION (Unaudited) JUNE 30, 2020

Georgia Highlands College

Georgia Institute of Technology

Georgia Southern University

Georgia Southwestern University

ADDITIONS

Investment Income:

Dividends and Interest

$

Net Appreciation in Investments Reported at Fair Value

Less: Investment Expense

Federal Financial Aid State Financial Aid Other Financial Aid Clubs and Other Organizations Fund Raising Public-Private Partnership Passthrough

Total Additions

DEDUCTIONS
Scholarships and Other Student Support Student Organizations Support Public-Private Partnership Passthrough Other Payments

Total Deductions
Net Increase (Decrease) in Fiduciary Net Position

Net Position, Beginning of Year
Net Position, Beginning of Year, As Originally Reported
Prior Year Adjustments

Net Position, Beginning of Year

-- $
--
7,965,723 3,234,315
162,487 56,250 --
11,418,775

-- $
--
72,659,472 79,994,195 21,965,881
472,763 --
175,092,311

-- $
--
116,858,388 50,162,033 14,542,760 1,674,379 5,523,412
188,760,972

11,355,598 130,781 -- --
11,486,379
(67,604)

175,108,886 590,085 -- --
175,698,971
(606,660)

182,498,726 838,306
5,638,879 --
188,975,911
(214,939)

-- 99,675
99,675

-- 1,844,381
1,844,381

-- 2,010,057
2,010,057

--
-- 13,389,593
4,179,951 963,510 361,179 --
18,894,233
18,214,851 404,802 -- --
18,619,653
274,580
-- (241,898) (241,898)

Net Position, End of Year

$

32,071 $

1,237,721 $

1,795,118 $

32,682

2020 Annual Financial Report 193

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION - STUDENT SUPPORT BY INSTITUTION (Unaudited) JUNE 30, 2020

Georgia State University Gordon State College

Kennesaw State University

Middle Georgia State University

ADDITIONS

Investment Income:

Dividends and Interest

$

Net Appreciation in Investments Reported at Fair Value

Less: Investment Expense

Federal Financial Aid State Financial Aid Other Financial Aid Clubs and Other Organizations Fund Raising Public-Private Partnership Passthrough

Total Additions

DEDUCTIONS
Scholarships and Other Student Support Student Organizations Support Public-Private Partnership Passthrough Other Payments

Total Deductions
Net Increase (Decrease) in Fiduciary Net Position

Net Position, Beginning of Year
Net Position, Beginning of Year, As Originally Reported
Prior Year Adjustments

Net Position, Beginning of Year

-- $
-- 224,644,943 129,047,847
17,679,562 2,317,546
34,881,312 408,571,210
372,024,726 2,315,071
36,204,571 --
410,544,368
(1,973,158)
-- 2,541,254 2,541,254

-- $
--
10,509,806 3,238,725 1,219,186 -- --
14,967,717

-- $
--
144,227,470 76,504,301 12,948,766 11,461 --
233,691,998

15,004,457 -- -- --
15,004,457
(36,740)

233,605,339 8,931 --
75,198
233,689,468
2,530

-- 293,125
293,125

-- 22,401
22,401

--
-- 31,542,811
7,032,688 3,062,978
57,117 --
41,695,594
41,593,157 85,706 -- --
41,678,863
16,731
-- 264,483 264,483

Net Position, End of Year

$

568,096 $

256,385 $

24,931 $

281,214

2020 Annual Financial Report 194

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION - STUDENT SUPPORT BY INSTITUTION (Unaudited) JUNE 30, 2020

Savannah State University

South Georgia State College

University of Georgia

University of North Georgia

ADDITIONS

Investment Income:

Dividends and Interest

$

Net Appreciation in Investments Reported at Fair Value

Less: Investment Expense

Federal Financial Aid State Financial Aid Other Financial Aid Clubs and Other Organizations Fund Raising Public-Private Partnership Passthrough

Total Additions

DEDUCTIONS
Scholarships and Other Student Support Student Organizations Support Public-Private Partnership Passthrough Other Payments

Total Deductions
Net Increase (Decrease) in Fiduciary Net Position

Net Position, Beginning of Year
Net Position, Beginning of Year, As Originally Reported
Prior Year Adjustments

Net Position, Beginning of Year

-- $
-- 27,478,282
4,855,546 2,540,219
126,762 --
35,000,809
34,863,744 141,373 -- --
35,005,117
(4,308)
-- 858,994 858,994

-- $
--
5,472,670 2,175,584
161,671 -- --
7,809,925

-- $
--
167,778,348 199,996,737
20,881,235 133,526 --
388,789,846

7,835,117 -- -- --
7,835,117
(25,192)

389,232,958 474,116 -- --
389,707,074
(917,228)

-- 43,634
43,634

-- 2,610,192
2,610,192

--
-- 39,786,323 41,617,172
5,808,854 151,133
3,046,075 90,409,557
87,191,730 150,802
5,979,476 --
93,322,008
(2,912,451)
-- 3,118,290 3,118,290

Net Position, End of Year

$

854,686 $

18,442 $

1,692,964 $

205,839

2020 Annual Financial Report 195

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION - STUDENT SUPPORT BY INSTITUTION (Unaudited) JUNE 30, 2020

ADDITIONS Investment Income: Dividends and Interest Net Appreciation in Investments Reported at Fair Value Less: Investment Expense
Federal Financial Aid State Financial Aid Other Financial Aid Clubs and Other Organizations Fund Raising Public-Private Partnership Passthrough
Total Additions
DEDUCTIONS Scholarships and Other Student Support Student Organizations Support Public-Private Partnership Passthrough Other Payments
Total Deductions
Net Increase (Decrease) in Fiduciary Net Position
Net Position, Beginning of Year Net Position, Beginning of Year, As Originally Reported Prior Year Adjustments
Net Position, Beginning of Year

University of West Georgia

Valdosta State University University System Office

$

-- $

-- $

1,119

--

--

339

--

--

(161)

70,241,289 21,139,747
1,917,100 22,267 --

76,739,363 14,528,936
-- 1,497,469
--

-- -- -- -- 67,593,616

93,320,403

92,765,768

67,594,913

93,283,846 35,303 -- --
93,319,149
1,254
-- 99,790
99,790

91,268,299 1,497,469 -- --
92,765,768
--
-- --
--

-- -- 67,560,656 --
67,560,656
34,257
-- 42,973
42,973

Net Position, End of Year

$

101,044 $

-- $

77,230

2020 Annual Financial Report 196

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION - STUDENT SUPPORT BY INSTITUTION (Unaudited) JUNE 30, 2020

ADDITIONS Investment Income: Dividends and Interest Net Appreciation in Investments Reported at Fair Value Less: Investment Expense
Federal Financial Aid State Financial Aid Other Financial Aid Clubs and Other Organizations Fund Raising Public-Private Partnership Passthrough
Total Additions
DEDUCTIONS Scholarships and Other Student Support Student Organizations Support Public-Private Partnership Passthrough Other Payments
Total Deductions
Net Increase (Decrease) in Fiduciary Net Position
Net Position, Beginning of Year Net Position, Beginning of Year, As Originally Reported Prior Year Adjustments
Net Position, Beginning of Year

Preliminary Total

Elimination/ Consolidation Entries

Consolidated Total

$

1,119 $

339 (161)

1,336,305,349 739,174,953 124,830,282 11,214,612 134,488,144

2,346,014,637

-- $ -- --
-- -- -- -- (67,593,616)
(67,593,616)

1,119 339 (161)
1,336,305,349 739,174,953 124,830,282 11,214,612 66,894,528
2,278,421,021

2,202,641,021 11,772,428
141,226,870 75,203
2,355,715,522
(9,700,885)
-- 19,983,917
19,983,917

-- -- (67,593,616) --
(67,593,616)
--
-- --
--

2,202,641,021 11,772,428 73,633,254 75,203
2,288,121,906
(9,700,885)
-- 19,983,917
19,983,917

Net Position, End of Year

$

10,283,032 $

-- $

10,283,032

2020 Annual Financial Report 197

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2020

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
Foundation, Inc.

$

3,840,117 $

2,037,898 $

--

2,268,818

--

--

--

--

-- -- -- -- 200,000 -- -- -- -- -- -- -- 4,040,117

-- -- -- -- 75,924 -- -- -- 960,120 -- -- -- 5,342,760

469,047 $ -- -- --
-- -- -- -- 274,425 -- -- -- -- -- -- -- 743,472

335,661 636,328
-- --
-- -- -- -- -- -- -- -- 223,170 -- -- -- 1,195,159

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

-- -- -- 395,059 -- 23,171,157 -- -- -- 253,624 -- -- -- 7,642,680 31,462,520 35,502,637

-- -- -- 179,500 -- 3,084,545 -- -- 32,823,509 -- 4,994,447 -- -- -- 41,082,001 46,424,761

-- -- -- 522,034 -- 15,137,961 -- -- -- -- -- -- -- -- 15,659,995 16,403,467

-- -- -- -- -- 416,885 -- -- 9,042,603 -- -- -- 50,300 -- 9,509,788 10,704,947

DEFERRED OUTFLOWS OF RESOURCES

$

-- $

-- $

-- $

--

198 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2020

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
Foundation, Inc.

$

74,901 $

976,320 $

--

--

--

--

--

--

--

--

--

12,367

--

--

--

--

--

--

--

--

--

--

--

--

2,392,287

--

--

--

--

1,090,000

--

--

--

--

--

--

--

--

--

--

2,467,188

2,078,687

52,430 $ -- -- -- --
2,460 -- -- -- -- -- -- -- -- -- -- -- -- -- --
54,890

-- -- -- -- -- -- -- -- -- -- -- -- -- -- 300,000 -- -- -- -- -- 300,000

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

-- -- -- -- -- 41,048 -- -- -- -- -- -- -- -- -- 41,048 2,508,236

-- -- -- -- -- -- -- 35,884,632 -- -- -- -- -- -- -- 35,884,632 37,963,319

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 54,890

-- -- -- -- -- -- -- 9,316,004 -- -- -- -- -- -- -- 9,316,004 9,616,004

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

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

5,282,680

10,837,948

6,868,793

10,004,980

$

32,994,401 $

--
2,089,095 1,504,389 4,867,958 8,461,442 $

--
7,958,971 7,648,888
740,718 16,348,577 $

--
50,300 702,982 335,661 1,088,943

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2020 Annual Financial Report 199

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2020

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.

$

154,768,143 $

1,235,936

41,537,543

10,492,062

-- -- -- 1,793,501 -- 153,631,623 -- -- 1,255,961 24,102,526 18,222,540 -- 407,039,835

6,746,512 $ 3,576,198 1,572,604
654,000
-- -- -- -- 118,069 13,625 -- -- 2,081,162 -- 18,279 -- 14,780,449

6,924,938 $ -- -- --
5,336,106 -- -- -- -- -- -- -- -- -- -- --
12,261,044

2,017,196 $ --
16,505,138 --
-- -- -- 134,840 -- 5,161 -- -- -- -- -- -- 18,662,335

21,522 $ -- -- --
-- -- -- -- -- -- -- -- -- -- -- -- 21,522

2,772,758 6,002,530
-- 3,407,479
-- -- -- -- 142,127 66,293 -- -- -- -- 11,101 -- 12,402,288

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

-- --
-- -- 28,179,803 119,499,299 -- -- 20,036,901 5,377,889 -- -- 4,731,380 254,671,703 432,496,975 839,536,810

-- --
-- 140,260
-- 1,405,698
-- -- 27,429,148 204,387 -- -- 27,578,729 -- 56,758,222 71,538,671

-- --
-- -- -- 4,993,727 -- -- -- -- 69,973 -- -- -- 5,063,700 17,324,744

-- --
-- -- -- -- -- -- -- -- -- -- -- -- -- 18,662,335

-- --
-- -- -- 2,369,878 -- -- -- -- -- -- -- -- 2,369,878 2,391,400

-- --
-- 50,866
-- 9,041,368
-- -- 52,721,598 -- -- -- 1,708,869 6,974,043 70,496,744 82,899,032

DEFERRED OUTFLOWS OF RESOURCES

$

3,698,961 $

-- $

-- $

-- $

-- $

--

200 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2020

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.

$

81,614,361 $

10,850,685

--

--

--

67,257,057

--

--

67,792,963

--

--

5,565,149

--

5,924,708

5,330,000

--

--

--

--

23,599,910

267,934,833

419,500 $ -- -- -- --
95,512 -- --
926,899 -- -- -- -- --
1,075,000 -- -- -- -- --
2,516,911

1,132,336 $ -- -- -- --
5,529,314 -- -- -- -- --
21,130 -- -- -- -- -- -- -- --
6,682,780

14,895,857 $ -- -- -- --
564,627 -- -- -- -- -- -- -- -- -- -- -- -- -- --
15,460,484

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

1,385,542 -- -- -- -- -- -- -- -- -- -- --
261,407 --
1,790,000 -- -- -- -- --
3,436,949

Non-Current Liabilities Due to Related Parties Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Other Liabilities Notes and Loans Payable Lease Purchase Obligations Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Net Other Post Employment Benefits Liability Net Pension Liability Total Non-Current Liabilities
TOTAL LIABILITIES

-- -- -- -- 19,228,538 -- 24,661,163 202,385,455 -- 28,181,020 -- -- -- 6,641,329 -- 281,097,505 549,032,338

-- -- -- 5,889,291 -- -- -- 20,870,463 -- -- -- -- -- -- -- 26,759,754 29,276,665

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 6,682,780

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 15,460,484

--

1,708,869

--

--

--

--

--

--

--

--

--

3,420,892

--

--

--

60,344,120

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

65,473,881

--

68,910,830

DEFERRED INFLOWS OF RESOURCES

872,879

--

--

--

--

--

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

54,305,828

--

16,459,378

222,565,348

$

293,330,554 $

--
19,855,144 18,434,320
3,972,542 42,262,006 $

--
-- 69,973 10,571,991 10,641,964 $

--
-- -- 3,201,851 3,201,851 $

--
-- 2,391,400
-- 2,391,400 $

6,974,043
5,518,091 8,634,512 (7,138,444) 13,988,202

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2020 Annual Financial Report 201

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2020

ASSETS Current Assets Cash and Cash Equivalents Cash and Cash Equivalents (Externally Restricted) Short-term Investments Short-term Investments (Externally Restricted) Accounts Receivable, net Federal Financial Assistance State General Appropriations Margin Allocation Funds Related Parties Pledges and Contributions Other Notes Receivable, net Due From Other Funds Investment in Capital Leases Inventories Prepaid Items Other Assets Total Current Assets

College of Coastal Georgia Foundation,
Inc.

Columbus State University Alumni Association, Inc.

Columbus State University Athletic
Fund, Inc.

Columbus State University Foundation,
Inc.

Columbus State University Research &
Service Foundation

Dalton State College Athletic Club

$

1,155,133 $

--

1,508,926

10,384,255

-- -- -- -- 54,143 -- -- -- -- -- 677 -- 13,103,134

28,737 $ 6,914
50,407 --
-- -- -- -- -- -- -- -- -- 3,860 6,350 -- 96,268

62,694 $ 132,584
-- --
-- -- -- -- 7,054 -- -- -- -- -- 2,944 -- 205,276

1,526,479 5,211,523
-- --
-- -- -- 1,370,288 5,710,970 22,547 -- -- -- 4,656 173,502 -- 14,019,965

13,808 $

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

13,808

--

Non-Current Assets

Accounts Receivable, net

Related Parties

--

254,833

--

--

--

--

Due From USO - Capital Liability Reserve Fund

--

--

--

--

--

--

Due From Institution - Capital Liability Reserve Fund

--

--

--

--

--

--

Pledges and Contributions

40,956

--

--

14,756,429

--

--

Other

--

--

--

--

--

--

Investments

1,454,783

--

2,558,155

72,468,027

--

--

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)

2,072,846

--

--

--

--

--

Capital Assets, net

1,703,984

--

--

22,933,778

--

--

Total Non-Current Assets

5,272,569

254,833

2,558,155

110,158,234

--

--

TOTAL ASSETS

18,375,703

351,101

2,763,431

124,178,199

13,808

--

DEFERRED OUTFLOWS OF RESOURCES

$

-- $

-- $

-- $

-- $

-- $

--

202 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2020

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

$

-- $

--

--

--

--

299,048

--

--

--

--

--

--

--

--

--

2,674

--

--

--

--

301,722

7,299 $ -- -- -- --
514 -- --
3,045 -- -- -- -- -- -- -- -- -- -- --
10,858

12,150 $ -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
12,150

340,806 -- -- -- --
9,123,092 -- -- -- -- -- -- -- -- --
80,928 -- -- -- --
9,544,826

$

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

11,304

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

11,304

--

--

--

--

3,131,201

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

8,708

--

--

926,445

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

8,708

--

--

4,057,646

--

--

310,430

10,858

12,150

13,602,472

11,304

--

--

--

--

--

--

--

1,703,984

--

--

22,933,778

--

--

7,434,790

--

1,365,633

51,654,902

--

--

6,531,237

119,430

1,335,295

55,740,724

--

--

2,395,262

220,813

50,353

(19,753,677)

2,504

--

$

18,065,273 $

340,243 $

2,751,281 $

110,575,727 $

2,504 $

--

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2020 Annual Financial Report 203

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2020

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.

$

1,410,276 $

--

7,233,918

--

-- -- -- -- 1,309,839 -- -- -- -- -- 25,529 -- 9,979,562

1,901 $ -- -- --
-- -- -- -- -- -- -- -- 508,055 -- -- -- 509,956

695,555 $ -- -- --
-- -- -- -- -- -- -- -- -- -- -- -- 695,555

61,182 $ -- --
1,124,838
-- -- -- -- 409,281 -- -- -- -- -- -- -- 1,595,301

5,004,318 $ --
926,469 --
-- -- -- -- -- 1,179,350 10,000 -- -- -- -- -- 7,120,137

7,260,262 -- -- --
-- -- -- 1,714,659 -- 110,016 -- -- -- -- 30,007 2,119 9,117,063

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

-- -- -- 4,190,661 -- 4,672,635 -- -- -- -- -- 16,570,048 -- 4,051,162 29,484,506 39,464,068

-- -- -- -- -- -- -- -- 20,317,988 318,749 1,994,256 -- -- -- 22,630,993 23,140,949

-- -- -- 19,272 -- 4,142,100 -- -- -- -- -- -- -- 401,976 4,563,348 5,258,903

-- -- -- 200,000 -- -- -- -- -- -- -- -- -- 700,884 900,884 2,496,185

-- -- -- -- 17,057,986 8,269,761 -- -- -- 41,439 -- -- 1,433,313 1,340,392 28,142,891 35,263,028

1,260,397 -- -- -- --
4,274,660 -- -- -- --
755,037 -- --
97,231,625 103,521,719 112,638,782

DEFERRED OUTFLOWS OF RESOURCES

$

-- $

-- $

-- $

-- $

-- $

--

204 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2020

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.

$

200,747 $

-- $

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

10,022

--

--

--

--

--

--

--

--

--

--

--

550,000

--

--

--

--

--

--

--

--

--

--

200,747

560,022

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

7,123 $ -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
7,123

173,951 $ -- -- -- -- -- -- -- -- -- -- --
17,065 --
485,000 -- -- -- -- --
676,016

423,163 -- -- -- --
39,545,818 -- --
29,613 -- --
194,166 1,000,000
-- 2,085,654
-- -- -- -- -- 43,278,414

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 200,747
--

-- -- -- -- -- -- -- 19,354,812 -- -- -- -- -- -- -- 19,354,812 19,914,834
--

4,051,162

16,570,048

5,918,502

12,723,609

$

39,263,321 $

--
-- -- 3,226,115 3,226,115 $

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
--
401,976
1,363,799 539,624
2,953,504 5,258,903 $

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 7,123
--
700,884
239,705 1,480,568
67,905 2,489,062 $

760,860 -- -- -- --
200,717 --
17,752,336 -- -- -- -- -- -- --
18,713,913 19,389,929
--

-- -- -- -- -- 7,119,400 -- 36,609,575 -- -- -- -- -- -- -- 43,728,975 87,007,389
--

2,448,377
-- 11,157,395
2,267,327 15,873,099 $

51,258,686
1,455,447 --
(27,082,740) 25,631,393

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2020 Annual Financial Report 205

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2020

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.

$

21,737,027 $

812,083

--

--

-- -- -- -- 117,474 75,299 17,318 -- 1,315,211 -- 7,492 613,310 24,695,214

448,857 $ -- -- --
-- -- -- 400 4,254 -- -- -- -- 8,111 -- -- 461,622

3,562,763 $ -- -- --
-- -- -- -- 813,412 8,975 -- -- 3,124,138 -- 12,702 -- 7,521,990

1,182,633 $ -- -- --
-- -- -- 3,146 106,160 7,755 -- -- 12,399,560 -- -- -- 13,699,254

255,811 $ --
2,725,663 10,894,655
-- -- -- -- 1,047,472 -- -- -- -- -- 181,625 -- 15,105,226

772,921 1,053,767
-- --
-- -- -- -- 5,000 -- -- -- 366,001 -- -- -- 2,197,689

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

-- -- -- 551,414 -- 15,000 -- -- 78,038,298 329,012 1,197,335 -- -- 82,546,755 162,677,814 187,373,028

-- -- -- 3,500 -- 8,217,599 -- -- -- 4,500 -- -- -- -- 8,225,599 8,687,221

-- -- -- 506,689 -- 10,840,527 -- -- 76,431,399 50,241 -- -- 41,633,399 2,815,779 132,278,034 139,800,024

-- -- -- 16,817 -- 11,305,953 -- -- 143,936,668 9,943 9,107,515 -- -- 8,936,377 173,313,273 187,012,527

-- -- -- 595,072 -- -- -- -- -- -- -- -- 5,088,842 2,295,000 7,978,914 23,084,140

-- -- -- -- -- 2,726,112 -- -- 14,987,828 -- 616,944 -- -- 580 18,331,464 20,529,153

DEFERRED OUTFLOWS OF RESOURCES

$

-- $

-- $

-- $

-- $

-- $

--

206 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2020

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

Georgia Advanced Technology Ventures,
Inc.

Georgia College & State University Alumni
Association, Inc.

Georgia College & State University Foundation

Georgia Gwinnett College Foundation,
Inc.

Georgia Health Sciences Foundation,
Inc.

Georgia Highlands College Foundation,
Inc.

$

1,048,277 $

--

--

--

--

424,210

--

--

2,180,219

177,228

--

292,476

280,550

2,101,701

1,105,000

--

--

--

--

--

7,609,661

-- $ -- -- -- -- 8,565 -- -- -- -- -- -- -- -- -- -- -- -- -- -- 8,565

1,290,872 $ -- -- -- --
180,251 -- -- -- --
3,865,869 --
48,350 --
3,310,000 -- -- -- -- --
8,695,342

3,708,568 $ -- -- -- --
26,934 -- --
443,867 -- -- --
130,771 --
4,460,000 -- -- -- -- --
8,770,140

63,110 $ -- -- -- --
56,557 -- --
299,144 -- -- -- -- -- --
1,625 -- -- -- --
420,436

29,369 -- -- -- -- -- -- -- -- -- -- -- -- --
475,000 -- -- -- -- --
504,369

-- -- -- 4,331,675 323,870 6,041,527 48,802,206 59,200,504 -- -- -- -- -- -- -- 118,699,782 126,309,443
--

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 8,565
--

1,474,681 -- -- -- -- -- --
86,137,047 735,685
6,714,882 -- -- -- -- --
95,062,295 103,757,637
--

-- -- -- -- -- 1,908,913 -- 157,033,558 -- -- -- -- -- -- -- 158,942,471 167,712,611
--

-- -- -- -- -- -- -- -- 7,841 -- -- -- -- -- -- 7,841 428,277
--

-- -- -- -- -- -- -- 14,926,741 -- -- -- -- -- -- -- 14,926,741 15,431,110
--

26,093,896

--

7,098,749

27,870,940

$

61,063,585 $

--
5,587,207 2,315,984
775,465 8,678,656 $

2,815,779
22,509,389 8,975,337 1,741,882
36,042,387 $

8,262,388
2,582,727 1,040,014 7,414,787 19,299,916 $

2,295,000
2,963,300 14,241,242
3,156,321 22,655,863 $

580
1,511,322 1,749,147 1,836,994 5,098,043

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2020 Annual Financial Report 207

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2020

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.

$

5,662,898 $

1,810,757

--

--

-- -- -- 877,178 2,085,903 43,000 -- -- 448,687 -- 3,916 -- 10,932,339

386,817 $ -- -- --
-- -- -- 433 1,887,139 40,145 -- -- -- -- -- -- 2,314,534

4,383,703 $ --
5,208,414 --
-- -- -- -- -- 1,186,662 -- -- 9,732,378 -- 73,755 -- 20,584,912

5,589,316 $ -- -- --
858,634 465,465
-- 8 -- 989,156 -- -- -- 329,763 41,265 -- 8,273,607

23,842 $ 4,419,200
-- --
-- -- -- -- 1,088,910 -- -- -- -- -- 5,170 -- 5,537,122

361,199 -- -- --
-- -- -- -- -- 47,593 -- -- -- -- 40,306 -- 449,098

Non-Current Assets Accounts Receivable, net Related Parties Due From USO - Capital Liability Reserve Fund Due From Institution - Capital Liability Reserve Fund Pledges and Contributions Other Investments Notes Receivable, net Due From Other Funds Investment in Capital Leases Other Assets Non-current Cash (Externally Restricted) Short-term Investments (Externally Restricted) Investments (Externally Restricted) Capital Assets, net Total Non-Current Assets
TOTAL ASSETS

DEFERRED OUTFLOWS OF RESOURCES

$

-- -- -- 1,163,448 -- 2,236,024 -- -- 19,029,498 22,345 -- -- -- 2,302,187 24,753,502 35,685,841
-- $

-- -- -- 2,063,320 -- 81,011,060 -- -- -- 2,311,548 -- -- -- 1,575,753 86,961,681 89,276,215
-- $

-- -- -- -- -- -- -- -- 194,062,867 -- 50,640,720 -- -- 2,560,419 247,264,006 267,848,918
-- $

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 8,273,607
-- $

-- -- -- -- -- 31,734,784 -- -- -- 13,854 -- -- -- 159,848 31,908,486 37,445,608
-- $

-- -- -- -- -- 1,630,741 -- -- -- 25,633 -- -- -- 2,598 1,658,972 2,108,070
--

208 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2020

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.

$

465,205 $

--

--

--

--

368,796

--

--

325,822

--

--

--

39,229

--

570,000

--

--

--

--

--

1,769,052

75,580 $ -- -- -- --
171,494 -- -- -- -- -- -- -- -- --
13,299 -- -- -- --
260,373

3,711,487 $ -- -- -- --
948,795 -- --
6,226 -- -- -- -- --
8,760,000 -- -- -- -- --
13,426,508

30,959 $ -- -- -- --
2,659,614 -- --
1,414,042 --
746,387 -- -- -- -- -- -- -- -- --
4,851,002

183,993 $ -- --
13,250 -- -- -- --
48,200 -- -- --
49,039 -- -- -- -- -- -- --
294,482

4,335 -- -- -- --
988 -- --
13,353 -- -- -- -- -- -- -- -- -- -- --
18,676

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

-- -- -- -- (336,637) -- -- 19,917,390 -- -- -- -- -- -- -- 19,580,753 21,349,805

-- -- -- -- -- -- -- -- 64,481 -- -- -- -- -- -- 64,481 324,854

1,281,400 -- --
56,553 10,558
-- -- 216,804,088 -- -- -- -- -- -- -- 218,152,599 231,579,107

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 4,851,002

-- -- -- -- -- 550,961 -- -- -- -- -- -- -- -- -- 550,961 845,443

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 18,676

DEFERRED INFLOWS OF RESOURCES
NET POSITION Net Investment in Capital Assets Restricted for: Nonexpendable Expendable Unrestricted
TOTAL NET POSITION

--

--

--

2,262,958

1,575,753

2,560,419

1,502,095

52,111,897

--

5,839,270

31,410,454

35,258,934

4,731,713

3,853,257

(1,549,542)

$

14,336,036 $

88,951,361 $

36,269,811 $

--
--
-- -- 3,422,605 3,422,605 $

--
159,848
-- 26,565,664
9,874,653 36,600,165 $

--
2,598
-- 39,939 2,046,857 2,089,394

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2020 Annual Financial Report 209

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2020

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.

$

2,283,318 $

5,944,158 $

7,107,902 $

1,397,896 $

2,753,576 $

11,368,181

--

8,023,859

5,857,368

--

--

10,424,856

--

--

--

--

--

--

--

--

87,179,950

--

-- -- -- 894,975 71,917 474,554 -- -- -- -- 218,475 -- 3,943,239

-- -- -- -- 3,841,340 790,995 -- -- 3,831,718 -- -- -- 22,432,070

13,679,224 -- --
2,451,482 --
3,568,430 -- --
2,544,826 --
17,139,468 --
52,348,700

-- -- -- -- -- 77,711 -- -- -- 14,742 24,760 -- 1,515,109

-- -- -- -- 15,177,413 9,142,419 -- -- -- -- 608,729 -- 114,862,087

-- -- -- 688,379 -- 363,014 -- -- 10,926,055 -- 278,781 -- 34,049,266

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

-- -- -- 4,663,143 -- 3,614,850 -- -- -- -- -- -- -- 474,725 8,752,718 12,695,957

-- -- -- 6,552,191 -- 27,899,786 -- -- 110,083,369 6,287,895 -- -- 213,200,240 14,606,183 378,629,664 401,061,734

-- -- -- -- 72,000 14,139,108 -- -- 65,074,274 -- -- -- -- 7,561,438 86,846,820 139,195,520

-- -- -- -- -- 296,272 -- -- -- -- -- -- -- 312,563 608,835 2,123,944

-- -- -- 15,063,786 -- -- -- -- -- 722,612 -- 44,375,549 110,095,282 169,262,105 339,519,334 454,381,421

4,805,000 -- -- --
61,483 -- -- --
226,781,701 3,100,000
84,374,337 -- --
57,307,414 376,429,935 410,479,201

DEFERRED OUTFLOWS OF RESOURCES

$

-- $

-- $

7,518,505 $

-- $

13,385,934 $

--

210 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2020

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.

$

55,753 $

3,778,333 $

1,993,594 $

116,504 $

5,670,650 $

6,945,210

18,206

--

--

--

--

--

7,108

--

--

75,892

--

--

--

--

--

--

--

--

--

--

--

--

--

1,425,125

1,235,563

--

18,898,646

559,339

6,839,483

170,315

--

--

--

--

--

--

--

--

--

--

--

--

155,612

1,265,757

--

106,258

1,935,688

1,280,531

--

--

--

--

10,575,154

--

--

2,373,921

--

82,079

--

--

--

1,140,403

--

--

--

--

--

--

--

12,950,959

--

16,511

--

--

--

278,788

--

--

4,440,000

2,425,000

--

82,390,000

11,579,000

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

250,000

--

271,550

--

--

230,336

--

--

1,760,303

12,998,414

23,317,240

1,170,408

120,890,722

21,400,181

Non-Current Liabilities Due to Related Parties Due to Other Funds Due to USO - Capital Liability Reserve Fund Advances (Including Tuition and Fees) Other Liabilities Notes and Loans Payable Lease Purchase Obligations Revenue Bonds and Notes Payable Liabilities Under Split Interest Agreements Interest Rate Swap Pollution Remediation Claims and Judgments Compensated Absences Net Other Post Employment Benefits Liability Net Pension Liability Total Non-Current Liabilities
TOTAL LIABILITIES

-- -- -- -- -- -- 6,184 -- -- -- -- -- 165,911 -- -- 172,095 1,932,398

-- -- -- -- 3,269,896 -- -- 119,180,582 1,153,932 -- -- -- -- -- -- 123,604,410 136,602,824

-- -- -- -- -- -- -- 75,508,591 -- -- -- -- -- -- -- 75,508,591 98,825,831

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 1,170,408

-- -- -- -- -- 12,237,152 557,576 272,490,112 -- -- -- 353,932 -- -- -- 285,638,772 406,529,494

-- -- -- 7,915,923 -- -- -- 339,435,361 -- -- -- -- -- -- -- 347,351,284 368,751,465

DEFERRED INFLOWS OF RESOURCES

--

--

17,231,388

--

--

--

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

452,030

14,606,183

7,561,438

--

133,701,642

1,550,000

7,265,713

89,892,109

7,262,810

3,045,816

26,258,976

14,282,558

$

10,763,559 $

264,458,910 $

30,656,806 $

312,563
-- -- 640,973 953,536 $

(55,643,050)
46,799,715 90,434,229 (20,353,033) 61,237,861 $

23,448,362
-- 7,937,599 10,341,775 41,727,736

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2020 Annual Financial Report 211

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2020

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

Global Center for

Corporation

Medical Innovation, Inc.

Gordon State College Foundation, Inc. & Subsidiaries

$

17,655,000 $

11,792,000

--

--

-- -- -- 3,883,000 36,860,000 20,141,000 918,000 -- 10,078,000 -- -- 1,646,000 102,973,000

82,297 $
-- 2,500
-- -- 84,797

139,275,464 $ -- -- --
-- -- -- -- -- 168,258,325 -- -- 399,904 -- 84,224 -- 308,017,917

2,528,262 $ -- -- --
-- -- -- 331,526 -- 5,541,116 -- -- -- 64,700 61,268 -- 8,526,872

91,000 $ 117,357
-- --
-- -- -- -- 5,000 -- -- -- 307,527 -- -- -- 520,884

IgniteHQ
316,214 -- -- --
-- -- -- -- -- -- -- -- -- -- -- -- 316,214

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

-- -- -- 36,301,000 13,774,000 392,220,000 -- -- 106,795,000 19,038,000 -- -- 1,501,569,000 148,242,000 2,217,939,000 2,320,912,000

--
-- --
-- 84,797

-- -- -- -- -- 62 -- -- 2,866,772 -- -- -- -- 899,551 3,766,385 311,784,302

-- -- -- -- -- -- -- -- -- 37,161 -- -- -- 7,510,757 7,547,918 16,074,790

-- -- -- 20,000 -- 13,081,685 -- -- 12,058,762 -- 1,256,545 -- -- -- 26,416,992 26,937,876

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 316,214

DEFERRED OUTFLOWS OF RESOURCES

$

--

$

-- $

-- $

-- $

--

212 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2020

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

$

5,550,000 $

8,597 $

-- $

2,131,585 $

332,410 $

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

9,434,000

--

103,326,748

4,421,231

--

--

--

--

--

--

--

--

--

--

--

--

15,844,000

67,868,142

421,578

--

--

218,000

--

--

--

--

--

54,749,382

--

--

--

--

--

--

--

--

19,048,000

--

--

--

--

--

--

428,153

--

--

--

13,165,000

--

--

290,000

--

1,646,000

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

451,000

--

--

--

--

65,356,000

8,597

226,372,425

6,974,394

622,410

--

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

115,200,000 -- -- --
9,433,000 69,487,000
-- 243,728,000
16,403,000 -- -- -- -- -- --
454,251,000 519,607,000

-- --
-- 8,597

-- -- -- -- -- -- 2,838,523 -- -- -- -- -- -- -- -- 2,838,523 229,210,948

165,000 -- -- --
296,140 -- -- -- -- -- -- -- -- -- --
461,140 7,435,534

-- -- -- -- -- -- -- 10,862,746 -- -- -- -- -- -- -- 10,862,746 11,485,156

3,299 -- -- -- -- -- -- -- -- -- -- -- -- -- --
4,199 4,199

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

--

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

(9,748,000)

1,393,639,000

205,489,000

211,925,000

$

1,801,305,000 $

12,236 63,964 76,200 $

899,551
-- -- 81,673,803 82,573,354 $

7,510,757
-- 1,263,905 (135,406) 8,639,256 $

--
3,604,622 1,461,424 10,386,674 15,452,720 $

--
-- -- 312,015 312,015

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2020 Annual Financial Report 213

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2020

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

$

180,729 $

--

--

2,540,772

-- -- -- -- -- 267 -- -- -- -- 564 -- 2,722,332

330,907 $ -- -- --
-- -- -- -- -- 119 -- -- -- -- -- -- 331,026

3,455,285 $ -- -- --
-- -- -- 515,136 -- 635,562 -- -- -- 265,568 49,938 -- 4,921,489

24,694,203 $ --
10,220,514 --
-- -- -- 320,705 6,859,857 252,292 -- -- 9,437,839 -- 71,349 -- 51,856,759

2,704,059 $ --
1,783,762 --
268,384 -- --
7,726 -- -- -- -- -- --
1,164 --
4,765,095

1,124,178 89,941 -- --
-- -- -- 1,047 729,707 -- -- -- -- -- -- -- 1,944,873

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

-- --
-- -- -- -- -- -- -- -- -- -- -- -- -- 2,722,332

-- --
-- -- -- 21,163 -- -- -- -- -- -- 57,996 -- 79,159 410,185

-- --
-- -- -- -- -- -- -- -- -- -- -- 1,458,856 1,458,856 6,380,345

-- --
-- 3,324,007
-- 19,778,127
-- -- 201,896,481 -- 48,721,726 -- 44,500,352 81,546,571 399,767,264 451,624,023

-- --
-- -- -- -- -- -- -- -- -- -- -- -- -- 4,765,095

-- --
-- 737,374
16,588 34,770,396
-- -- -- 203,000 -- -- 219,895,602 15,758,076 271,381,036 273,325,909

DEFERRED OUTFLOWS OF RESOURCES

$

-- $

-- $

-- $

-- $

-- $

--

214 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2020

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

$

13,365 $

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

13,365

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

80,868 $ -- -- -- --
56,878 -- --
498,084 -- -- -- -- -- -- -- -- -- -- --
635,830

8,612,164 $ -- -- -- --
795,654 -- --
357,491 23,442 79,157 -- -- --
13,320,000 550 -- -- -- --
23,188,458

88,985 $ -- -- -- --
1,844,084 -- --
1,299,018 -- -- -- -- -- -- -- -- -- -- --
3,232,087

304,388 -- -- -- --
450,368 -- -- -- -- --
23,857 80,149
-- -- -- -- -- -- -- 858,762

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

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 13,365

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

308,334

--

--

--

--

--

--

--

--

--

--

1,560,000

--

10,839,792

--

--

--

--

--

--

--

331,797,804

--

--

--

--

1,715

--

814,400

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

308,334

333,359,519

--

11,654,192

--

944,164

356,547,977

3,232,087

12,512,954

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

--

--

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

--

1,382,359

1,169,457

157,151

$

2,708,967 $

--
57,996 --
352,189 410,185 $

1,458,856
-- 3,011,676
965,649 5,436,181 $

(31,403,940)
48,656,483 30,960,562 46,862,941 95,076,046 $

--
-- 515,933 1,017,075 1,533,008 $

5,018,470
135,902,804 86,254,407 33,637,274
260,812,955

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2020 Annual Financial Report 215

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2020

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.

$

889,439 $

1,362,026 $

2,741,208

--

--

--

721,697

--

865,882 $ --
223,026 --

535,027 $ -- --
4,562,468

-- -- -- -- 528,036 -- -- -- -- -- 31,782 -- 4,912,162

-- -- -- -- -- 119,743 -- -- 827,356 -- 7,275 -- 2,316,400

-- -- -- -- -- 226,336 -- -- 2,638,404 -- 3,803 -- 3,957,451

-- -- -- -- -- 7,202 -- -- -- -- -- -- 5,104,697

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

60,047,599 -- -- --
-- -- -- 94,335 -- 1,934,714 -- -- -- -- 297,229 -- 62,373,877

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

-- -- -- 1,134,212 -- 12,573,295 -- -- -- 74,785 126,507 -- -- 182,058 14,090,857 19,003,019

-- -- -- -- -- -- -- -- 30,847,952 -- -- 3,701,967 -- 989,605 35,539,524 37,855,924

-- -- -- -- -- -- -- -- 72,360,934 -- 5,661,952 -- -- 150,000 78,172,886 82,130,337

-- -- -- -- -- -- -- -- -- -- -- -- -- 330,395 330,395 5,435,092

--

--

--

--

--

--

--

--

--

--

--

49,827,507

--

--

--

--

--

--

--

247,930

--

--

--

--

--

--

--

335,278,406

--

385,353,843

--

447,727,720

DEFERRED OUTFLOWS OF RESOURCES

$

-- $

-- $

-- $

-- $

-- $

13,653,582

216 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2020

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.

$

1,040,151 $

736,891 $

309,303 $

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

112,164

--

--

--

299,052

--

--

--

--

12,026,878

--

--

368,948

--

--

--

--

830,000

2,585,000

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

1,339,203

1,566,891

15,402,293

153,157 $ -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
153,157

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

2,712,386 2,890,840
-- -- -- 7,851,616 -- -- 33,780,208 -- -- -- -- -- 5,785,000 -- -- -- -- -- 53,020,050

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

-- -- -- -- 5,000 -- -- -- -- -- -- -- -- -- -- 5,000 1,344,203

-- -- -- -- -- -- -- 30,324,480 -- -- -- -- -- -- -- 30,324,480 31,891,371

-- -- -- -- -- 777,370 -- 66,303,590 -- -- -- -- -- -- -- 67,080,960 82,483,253

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 153,157

--

--

--

--

--

--

--

--

--

247,930

--

1,000

--

--

--

82,389,961

--

--

--

5,065,455

--

--

--

--

--

--

--

--

--

--

--

87,704,346

--

140,724,396

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

--

--

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

182,058

9,634,392

7,094,955

747,411

$

17,658,816 $

989,605
-- -- 4,974,948 5,964,553 $

150,000
110,000 188,106 (801,022) (352,916) $

330,395
2,908,790 1,655,518
387,232 5,281,935 $

--
-- -- -- -- $

255,690,572
-- -- 64,966,334 320,656,906

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2020 Annual Financial Report 217

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2020

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.

$

5,015,111 $

29,787,516

17,972,812

106,750,480

-- -- -- -- 32,071,873 2,174,115 -- -- -- -- 135,353 -- 193,907,260

28,672,198 $ -- -- --
-- -- -- 1,093,936 -- 56,903,246 -- -- 9,280,360 -- 246,544 -- 96,196,284

(322,212) $ 1,255,990
-- --
-- -- -- -- 5,923,909 141,273 -- -- -- -- -- -- 6,998,960

2,444,269 $ 4,968,116
-- --
-- -- -- -- -- -- -- -- 4,425,916 -- 177,725 -- 12,016,026

69,507 $ 179,910 678,688
--
-- -- -- -- 23,980 -- -- -- -- -- 4,473 -- 956,558

1,099,664 5,450,687
-- --
-- -- -- 345 2,343,152 14,310 -- -- 2,111,149 -- 83,428 -- 11,102,735

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

-- --
-- 48,892,624
-- 183,185,166
-- -- -- 2,678,425 -- -- 975,366,142 33,896,491 1,244,018,848 1,437,926,108

-- --
-- -- -- 50,751,857 -- -- 218,433,467 820,951 -- -- 5,765,025 30,216,291 305,987,591 402,183,875

-- --
-- 5,051,665
-- 73,447,058
-- -- -- 109,277 -- -- -- -- 78,608,000 85,606,960

-- --
-- -- -- 2,100,000 -- -- 119,124,106 -- 5,592,227 -- -- 3,393,144 130,209,477 142,225,503

-- --
-- 43,338
-- -- -- -- -- -- -- -- -- -- 43,338 999,896

-- --
-- 2,750,232
-- 31,111,832
-- -- 34,675,710 852,958 5,821,382 -- -- 329,514 75,541,628 86,644,363

DEFERRED OUTFLOWS OF RESOURCES

$

-- $

15,310,091 $

-- $

-- $

-- $

--

218 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2020

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.

$

148,243 $

1,821,177 $

--

--

--

--

--

--

--

--

5,455,672

58,773,057

--

--

--

--

817,234

2,145,936

--

--

56,220,840

--

--

--

537,821

--

--

--

--

10,575,000

833,636

--

--

--

--

--

--

--

--

--

64,013,446

73,315,170

3,707 $ -- -- -- --
170,532 -- --
344,125 -- -- -- -- -- -- -- -- -- -- --
518,364

2,482,253 $ -- -- -- -- -- -- --
365,385 -- -- --
405,000 --
3,304,299 -- -- -- -- --
6,556,937

9,322 $ -- -- -- --
345 -- --
1,986 -- -- -- -- -- -- -- -- -- -- --
11,653

992,868 -- -- -- -- -- -- --
4,200 --
678,688 -- -- --
1,730,000 -- -- -- -- --
3,405,756

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

-- 641,380
-- -- -- 13,958,821 -- -- 7,822,380 3,983,589 -- -- -- -- -- 26,406,170 90,419,616

-- -- -- 1,682,489 -- 14,041,222 -- 225,602,559 -- -- -- -- -- -- -- 241,326,270 314,641,440

-- -- -- -- -- -- -- -- 10,181 -- -- -- -- -- -- 10,181 528,545

-- -- -- -- -- 405,000 -- 121,584,289 -- -- -- -- -- -- -- 121,989,289 128,546,226

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 11,653

-- -- -- -- -- -- 228,172 36,527,894 91,819 -- -- -- -- -- -- 36,847,885 40,253,641

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

--

--

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

19,399,849

662,819,852

524,012,221

141,274,570

$

1,347,506,492 $

16,175,069
-- -- 86,677,457 102,852,526 $

--
31,136,480 46,234,439
7,707,496 85,078,415 $

3,393,144
-- -- 10,286,133 13,679,277 $

--
-- 915,020
73,223 988,243 $

132,000
23,785,749 15,666,146
6,806,827 46,390,722

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2020 Annual Financial Report 219

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2020

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

$

1,212,355 $

868,771 $

5,374,595

19,155,293

699,368

--

--

--

-- -- -- -- -- -- -- -- 3,130,283 -- -- -- 10,416,601

-- -- -- -- 537,510 -- -- -- 13,674,378 -- -- -- 34,235,952

2,290,647 $ -- -- --
-- -- -- -- -- -- -- -- 5,334,029 -- 15,670 -- 7,640,346

5,208,348 $ -- -- --
-- -- -- 261,963 905,957 -- -- -- -- -- 26,512 -- 6,402,780

10,438 $ -- -- --
-- -- -- -- -- -- -- -- -- -- -- -- 10,438

575,083,622 132,385,334 108,847,252 238,712,656
20,142,348 465,465 --
16,439,008 121,337,207 428,196,443
945,318 --
111,362,187 24,793,926 38,425,674 2,261,429
1,819,397,869

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

-- --
-- -- -- 260,214 -- -- 108,162,094 -- 3,584,449 -- -- -- 112,006,757 122,423,358

-- --
-- 333,590
-- 5,366,599
-- -- 361,785,460 -- 16,052,991 -- -- 18,393,085 401,931,725 436,167,677

-- --
-- -- -- -- -- -- 155,076,250 -- -- -- 11,452,968 227,338 166,756,556 174,396,902

-- --
-- -- -- 51,131,331 -- -- -- 627,966 -- -- -- 6,888,792 58,648,089 65,050,869

-- --
-- -- -- 7,139,805 -- -- -- -- -- -- -- 269,567 7,409,372 7,419,810

6,320,230 --
-- 150,262,459
59,161,860 1,399,394,552
-- -- 2,514,880,637 43,764,124 240,568,343 64,647,564 3,166,200,285 1,436,332,448 9,081,532,502 10,900,930,371

DEFERRED OUTFLOWS OF RESOURCES

$

-- $

-- $

-- $

-- $

-- $

53,567,073

220 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) JUNE 30, 2020

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

$

1,011,482 $

3,459,926 $

2,421,278 $

--

--

--

--

--

--

--

1,725,624

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

2,862,582

--

--

--

--

3,460,000

10,945,000

4,455,000

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

4,471,482

18,993,132

6,876,278

118,984 $ -- -- -- --
121,458 -- -- -- -- --
324,650 -- -- -- -- -- -- -- --
565,092

5,650 $ -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
5,650

165,437,425 13,759,731 83,000 1,738,874 1,425,125
347,681,002 -- --
202,096,812 10,993,824
119,106,679 19,588,709 40,472,157 8,749,861
202,663,953 2,578,712 -- -- 250,000
24,552,796 1,161,178,660

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

-- -- -- -- -- -- -- 111,350,982 -- -- -- -- -- -- -- 111,350,982 115,822,464

-- -- -- -- -- 70,138,705 -- 336,114,126 -- -- -- -- -- -- -- 406,252,831 425,245,963

-- -- -- -- -- -- -- 162,064,684 -- -- -- -- -- -- -- 162,064,684 168,940,962

-- -- -- -- 2,545 961,903 -- 3,110,634 96,021 -- -- -- -- -- -- 4,171,103 4,736,195

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 5,650

123,725,310 641,380 --
20,184,265 32,481,740 213,691,423 77,093,824 3,524,913,120 28,136,608 43,944,946
-- 353,932 165,911 6,641,329
-- 4,071,973,788 5,233,152,448

DEFERRED INFLOWS OF RESOURCES

--

--

--

--

--

18,104,267

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

--

--

227,338

2,816,255

269,567

460,319,689

--

610,249

--

--

--

2,711,461,943

--

1,612,195

--

57,396,498

--

1,467,778,302

6,600,894

8,699,270

5,228,602

101,921

7,144,593

1,063,680,795

$

6,600,894 $

10,921,714 $

5,455,940 $

60,314,674 $

7,414,160 $

5,703,240,729

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2020 Annual Financial Report 221

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) FOR FISCAL YEAR ENDED JUNE 30, 2020

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
Foundation, Inc.

$

-- $

--

--

188,134

-- $ -- -- --

-- $ -- -- --

227,805 -- -- -- --
1,563,369 222,781 54,273
2,256,362

2,298,618
-- -- -- 1,186,473 14,539 16,114
3,515,744

-- -- -- -- -- 1,505,113 -- --
1,505,113

-- -- -- 594,786
-- -- -- -- -- 145,448 -- --
740,234

428,960 -- 23,663
211,479 34,222
673,647 12,767
863,464 96,814
2,345,016
(88,654)

429,486 -- -- --
10,802 311,217
-- 826,091
596
1,578,192
1,937,552

398,382 -- -- --
2,373 410,928
-- 170,032
--
981,715
523,398

-- -- -- -- 151,765 -- 89,755 --
241,520
498,714

--
-- -- -- -- 406,306 (56,055) -- 350,251
261,597

--
-- -- -- -- 47,774 (1,816,095) -- (1,768,321)
169,231

--
-- -- -- -- 1,005,145 -- -- 1,005,145
1,528,543

--
-- -- -- -- 3,475 (426,967) -- (423,492)
75,222

-- -- -- 503,801 --
503,801

765,398

32,229,003

$

32,994,401 $

-- -- -- 50,364 -- 50,364
219,595
8,241,847
8,461,442 $

-- -- -- -- -- --
1,528,543
14,820,034
16,348,577 $

-- -- -- -- -- --
75,222
1,013,721
1,088,943

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

222 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, 2020

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.

$

-- $

81,867,386 873,371,423
759,990

--

955,998,799

-- $ -- 19,042 457,141 -- 181,717
-- -- -- 4,741,765 221,984 --
5,621,649

56,968,099 $ --
8,835,961 -- --
262,883
-- -- -- 396,506 -- --
66,463,449

-- $ -- -- 9,999,299 -- --
-- -- -- -- -- --
9,999,299

-- $ -- -- -- -- --
-- -- -- 253,828 -- --
253,828

-- -- -- -- -- 967,286
-- -- -- 5,343,412 -- 42,751
6,353,449

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

329,232,345 -- 80,331,825
188,508,837 472,285 --
4,310,773 398,985,931
36,433,863
1,038,275,859

1,147,324 -- 388,779 123,879 75,793 582,463 -- 694,854 --
3,013,092

-- -- -- -- -- -- -- 65,937,568 --
65,937,568

2,983,158 -- 101,234 -- 8,759 -- --
7,626,679 --
10,719,830

-- -- -- -- -- -- -- 154,068 --
154,068

-- -- -- 62,858 679,607 -- 1,414,474 334,693
2,491,632

Operating Income (Loss)

(82,277,060)

2,608,557

525,881

(720,531)

99,760

3,861,817

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

32,500,563
50,843,764 3,409,250 -- -- 7,344,788 (9,989,003) (8,531,438)
75,577,924

--
-- -- -- -- 1,053,133 (1,630,430) --
(577,297)

--
-- -- -- -- 247,993 -- --
247,993

--
-- -- -- -- 1,016,890 -- --
1,016,890

--
-- -- -- -- -- 28,291 --
28,291

--
-- -- -- -- 3,067,583 (2,898,591) (1,030,000)
(861,008)

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

(6,699,136)

2,031,260

773,874

296,359

128,051

3,000,809

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses

--

--

--

--

--

--

--

--

--

--

--

--

1,935,771

--

--

--

--

--

--

340,700

--

--

--

--

--

--

--

--

--

--

1,935,771

340,700

--

--

--

--

Change in Net Position

(4,763,365)

2,371,960

773,874

296,359

128,051

3,000,809

Net Position, Beginning of Year, Restated

298,093,919

39,890,046

9,868,090

2,905,492

2,263,349

10,987,393

Net Position-End of Year

$

293,330,554 $

42,262,006 $

10,641,964 $

3,201,851 $

2,391,400 $

13,988,202

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2020 Annual Financial Report 223

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) FOR FISCAL YEAR ENDED JUNE 30, 2020

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

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

$

-- $

-- $

-- $

-- $

-- $

--

--

--

--

--

--

--

--

--

--

--

--

--

8,295

45,453

1,115,401

--

--

--

--

--

--

--

--

40,000

--

--

138,796

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

813,657

53,550

91,325

4,857,150

--

--

336,084

--

--

3,144,947

--

--

21,905

2,716

6,396

114,592

--

--

1,211,646

64,561

143,174

9,370,886

--

--

96,148 -- 15,496
-- 23,293 800,160
-- 478,554
42,614
1,456,265
(244,619)

5,340 -- -- --
6,200 --
116,985 --
128,525
(63,964)

-- -- -- -- 47 114,826 -- 109,440 --
224,313
(81,139)

1,718,895 -- -- --
398,938 2,220,963
-- 3,678,821
15,385
8,033,002
1,337,884

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

-- -- -- -- -- -- 2,110 --
2,110
(2,110)

--
-- -- -- -- 1,780,596 (548) -- 1,780,048
1,535,429

--
-- -- -- -- 8,568 -- -- 8,568
(55,396)

--
-- -- -- -- (7,997) -- -- (7,997)
(89,136)

--
-- -- -- -- 79,712 -- -- 79,712
1,417,596

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

(2,110)

-- -- -- 159,670 --
159,670

1,695,099

16,370,174

$

18,065,273 $

-- -- -- -- -- --
(55,396)
395,639
340,243 $

-- -- -- 1,000 -- 1,000
(88,136)
2,839,417
2,751,281 $

-- -- -- 3,834,408 -- 3,834,408
5,252,004
105,323,723
110,575,727 $

-- -- -- --
--
2,504
2,504 $

-- -- -- -- (1,144,026) (1,144,026)
(1,146,136)
1,146,136
--

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

224 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, 2020

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.

$

-- $

-- $

-- $

-- $

-- $

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

1,817,014

24,000

--

1,270,572

5,926,208

-- -- -- 377,256 -- 20,708
397,964

-- -- -- -- -- --
1,817,014

-- -- -- 82,474 -- 18,005
124,479

-- -- -- 294,818 -- 24,353
319,171

-- -- -- 1,805,221 -- --
3,075,793

-- -- -- 465,162 -- 3,117
6,394,487

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

--

248,046 --

--

--

--

581,865

--

560,369

58,664

1,448,944

-- -- -- -- -- -- 28,501 --
28,501

-- -- -- -- -- 57,146 -- 88,734 5,319
151,199

-- -- -- -- 5,870 324,288 4,943 165,782 8,957
509,840

-- -- -- -- 103,222 804,189 -- 791,448 38,190
1,737,049

193,412 95,096 -- -- -- 29,693
852,849 2,235,818
3,406,868

Operating Income (Loss)

(1,050,980)

1,788,513

(26,720)

(190,669)

1,338,744

2,987,619

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

--
-- -- -- -- 4,239,479 (11,912) --
4,227,567

--
-- -- -- -- 25,532 (1,633,380) --
(1,607,848)

--
-- -- -- -- 41,338 -- --
41,338

--
-- -- -- -- 26,652 -- --
26,652

--
-- -- -- -- 691,395 (715,851) --
(24,456)

--
-- -- -- -- 242,194 (2,038,105) --
(1,795,911)

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

3,176,587

180,665

14,618

(164,017)

1,314,288

1,191,708

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

2,823,803

--

--

--

--

--

1,144,026

--

--

--

--

--

3,967,829

--

--

--

--

--

Change in Net Position

7,144,416

180,665

14,618

(164,017)

1,314,288

1,191,708

Net Position, Beginning of Year, Restated

32,118,905

3,045,450

5,244,285

2,653,079

14,558,811

24,439,685

Net Position-End of Year

$

39,263,321 $

3,226,115 $

5,258,903 $

2,489,062 $

15,873,099 $

25,631,393

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2020 Annual Financial Report 225

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) FOR FISCAL YEAR ENDED JUNE 30, 2020

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.

$

-- $

--

26,493

225,001

--

17,095,134

-- -- -- 332,200 -- 461,684
18,140,512

-- $ -- -- -- -- --
-- -- -- 113,709 451,707 54,715
620,131

-- $ -- -- -- -- 4,674,693
-- -- -- 1,768,623 1,185,117 113,455
7,741,888

-- $ -- -- 46,842 -- 8,184,047
-- -- -- 1,247,984 -- 340,678
9,819,551

-- $ -- 268,317 477,045 -- 12,300
-- -- -- 7,499,515 5,696 --
8,262,873

-- -- -- -- -- 1,009,619
-- -- -- 315,251 60,104 120
1,385,094

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

--

460,699 --

--

--

--

--

26,215

7,488,948

2,613,343

10,589,205

110,221 -- --
676 210,370
-- 323,518
--
644,785

512,296 -- -- --
28,986 935,747
641 1,724,425
--
3,202,095

410,625 -- -- --
8,787 271,482
-- 1,633,650
457
2,325,001

1,585,881 -- 490,135 172,648 110,172
1,189,019 --
4,510,675 --
8,058,530

83,596 -- -- --
132,018 --
212,710 155
428,479

Operating Income (Loss)

7,551,307

(24,654)

4,539,793

7,494,550

204,343

956,615

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

--
-- -- -- -- 267,721 (5,346,181) --
(5,078,460)

--
-- -- -- -- (427,883) -- --
(427,883)

--
-- -- -- -- (1,381,500) (3,847,162) --
(5,228,662)

--
-- -- -- -- 336,752 (5,778,277) --
(5,441,525)

--
-- -- -- -- 415,681 -- --
415,681

--
-- -- -- -- (71,277) (813,034) --
(884,311)

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

2,472,847

(452,537)

(688,869)

2,053,025

620,024

72,304

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

43,086

1,448,671

67,921

215,261

571,281

--

--

--

--

--

--

--

43,086

1,448,671

67,921

215,261

571,281

Change in Net Position

2,472,847

(409,451)

759,802

2,120,946

835,285

643,585

Net Position, Beginning of Year, Restated

58,590,738

9,088,107

35,282,585

17,178,970

21,820,578

4,454,458

Net Position-End of Year

$

61,063,585 $

8,678,656 $

36,042,387 $

19,299,916 $

22,655,863 $

5,098,043

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

226 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, 2020

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.

$

-- $

--

--

--

--

1,325,383

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

-- $ -- -- -- -- 10,570,294

4,868,244 $ 865,392
1,242,796 4,891,186
-- --

-- $ -- -- 294,311 -- --

-- -- -- 4,234,810 (19,699) 276,703
5,817,197

-- -- -- 8,759,258 (451,357) 356,622
8,664,523

-- -- -- -- -- 3,575,624
14,145,918

-- -- -- -- -- 5,646
11,873,264

-- -- -- 2,477,789 -- 56,745
2,828,845

-- -- -- 423,874 -- --
-- -- -- 291,875 -- 50,847
766,596

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

--

862,482 --

3,836,612

--

34,550

554,276

877,734

--

417,921

1,152,413

3,120,756

--

--

1,476,458

3,585,118

207,959

41,215

4,253,588

11,913,906

-- -- -- 351,005 -- -- -- 2,734,385 --
3,085,390

-- -- -- 127,520 1,435 -- -- 11,558,814 --
11,687,769

173,775 -- 25,048
797,852 93,174
1,050,234 911
3,683,665 829
5,825,488

147,410 -- --
14,035 47,369
-- 437,754
3,892
650,460

Operating Income (Loss)

1,563,609

(3,249,383)

11,060,528

185,495

(2,996,643)

116,136

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

--
-- -- -- -- 41,337 (835,600) --
(794,263)

--
-- -- -- -- (87,854) (5,882) 16,348,577
16,254,841

--
-- -- -- -- 419,073 (8,041,555) --
(7,622,482)

--
-- -- -- -- 4,562 -- --
4,562

--
-- -- -- -- 1,038,585 -- --
1,038,585

--
-- -- -- -- (24,777) -- --
(24,777)

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

769,346

13,005,458

3,438,046

190,057

(1,958,058)

91,359

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

62,228

805,106

--

--

--

--

--

--

--

--

--

--

62,228

805,106

--

--

--

--

Change in Net Position

831,574

13,810,564

3,438,046

190,057

(1,958,058)

91,359

Net Position, Beginning of Year, Restated

13,504,462

75,140,797

32,831,765

3,232,548

38,558,223

1,998,035

Net Position-End of Year

$

14,336,036 $

88,951,361 $

36,269,811 $

3,422,605 $

36,600,165 $

2,089,394

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2020 Annual Financial Report 227

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) FOR FISCAL YEAR ENDED JUNE 30, 2020

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.

$

-- $

-- $

79,272,112 $

--

--

1,790,899

--

--

22,181,873

20,375,077

--

--

--

--

--

364,230

17,038,547

3,075,309

-- -- -- 10,472,603 -- 1,235,174
32,447,084

-- -- -- 15,202,614 7,239,715 1,102,442
40,583,318

-- -- -- -- -- --
106,320,193

-- $ -- -- 4,670 -- 280,046
-- -- -- 6,224,278 -- 298,634
6,807,628

-- $ -- -- 55,367,226 -- 8,421,556
-- -- -- 4,113,453 -- --
67,902,235

-- -- -- 363,056 -- 13,880,706
-- -- -- -- -- 22,831
14,266,593

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

--

9,161,661 --

2,732,237

2,907,497

--

--

--

1,084,712

717,542

7,815,632

7,718,200

292,131

--

12,668,229

21,471,835

129,584

665,798

34,059,446

33,305,612

-- -- -- -- 21,809 -- 4,824 101,637,977 713,170
102,377,780

3,860,900 -- 698,066 -- 72,942 6,125 --
1,665,897 77,042
6,380,972

-- -- -- -- 5,279,519 12,039,648 -- 60,956,573 8,097,781
86,373,521

-- -- -- -- -- 193,750 2,286,339 736,943
3,217,032

Operating Income (Loss)

(1,612,362)

7,277,706

3,942,413

426,656

(18,471,286)

11,049,561

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

--
-- -- -- -- 56,514 -- --
56,514

--
-- -- -- -- (7,641,636) (3,580,884) --
(11,222,520)

--
-- -- -- -- 550,233 (2,555,086) 413,315
(1,591,538)

--
-- -- -- -- 5,598 -- --
5,598

--
-- -- -- -- 1,782,364 (16,759,684) (137,400)
(15,114,720)

--
-- -- -- -- 456,577 (10,123,422) (38,846)
(9,705,691)

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

(1,555,848)

(3,944,814)

2,350,875

432,254

(33,586,006)

1,343,870

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

19,322,387

--

--

--

--

--

3,423,787

--

--

--

--

--

--

--

--

--

--

--

22,746,174

--

Change in Net Position

(1,555,848)

(3,944,814)

2,350,875

432,254

(10,839,832)

1,343,870

Net Position, Beginning of Year, Restated

12,319,407

268,403,724

28,305,931

521,282

72,077,693

40,383,866

Net Position-End of Year

$

10,763,559 $

264,458,910 $

30,656,806 $

953,536 $

61,237,861 $

41,727,736

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

228 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, 2020

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

$

--

--

--

10,000

--

30,074,000

-- -- 40,544,000 60,735,000 --
131,363,000

$ -- 68,261 68,261

793,564,796 $ 19,925,037 79,096,484 -- -- 13,384,167
-- -- -- -- --
905,970,484

-- $ -- -- 13,305,932 -- --
-- -- 2,231,072 -- --
15,537,004

-- -- -- -- -- 621,031
-- -- 542,211 520,675 --
1,683,917

IgniteHQ
-- 191,362 352,334 124,147
-- --
-- -- -- -- -- 667,843

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

--

2,835,000 --

683,000

89,000

12,000

--

942,000

89,817,000

3,031,000

97,409,000

-- 49,929
36,343 86,272

-- -- -- -- 86,720 -- -- 896,153,532 254,948
896,495,200

3,627,254 -- 1,142,711
349,853 125,474
-- 271,788 7,745,269 869,730
14,132,079

169,543 -- -- -- --
322,919 --
(243,583) --
248,879

185,678 34,001 -- -- -- --
363,988 78,914
662,581

Operating Income (Loss)

33,954,000

(18,011)

9,475,284

1,404,925

1,435,038

5,262

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

--
-- -- -- -- (33,016,000) (12,978,000) --
(45,994,000)

(10,195) (10,195)

--
-- -- -- -- 369,613 -- (303,642)
65,971

--
-- -- -- -- 4,325 (1,856) --
2,469

--
-- -- -- -- 1,796,958 (1,066,530) --
730,428

-- -- -- -- -- -- -- -- (177,780)
(177,780)

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

(12,040,000)

(28,206)

9,541,255

1,407,394

2,165,466

(172,518)

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses

-- -- -- 31,382,000 --

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

31,382,000

--

--

--

--

--

Change in Net Position

19,342,000

(28,206)

9,541,255

1,407,394

2,165,466

(172,518)

Net Position, Beginning of Year, Restated

1,781,963,000

104,406

73,032,099

7,231,862

13,287,254

484,533

Net Position-End of Year

$

1,801,305,000 $

76,200 $

82,573,354 $

8,639,256 $

15,452,720 $

312,015

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2020 Annual Financial Report 229

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) FOR FISCAL YEAR ENDED JUNE 30, 2020

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

$

-- $

-- $

-- $

-- $

4,148,849 $

--

--

--

--

--

405,089

--

--

--

429,586

--

1,593,459

--

--

--

2,691,517

356,260

302,826

--

--

--

--

--

--

--

--

--

--

37,150,736

195,206

37,170

-- -- -- 62,551 -- --
62,551

-- -- -- -- (360) 42,500
42,140

-- -- -- 6,415,665 -- 814,799
10,351,567

-- -- -- 16,360,620 1,262,788 --
55,130,404

-- -- -- 432,656 -- 16,329
7,094,414

-- -- -- 916,581 7,366,198 734,250
9,054,199

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

--

-- --

148,552

--

--

--

--

--

--

63,069

18,091

--

--

--

60,349

--

--

1,770,119 -- -- --
594,193 1,268,736
-- 7,064,812
274,446

1,659,782 -- --
31,753 184,523 2,681,983 2,810,616 14,089,962 5,092,671

3,592,052 -- --
2,821,699 196,269 -- --
1,496,321 --

4,064,687 --
654,418 151,940 3,187,951
27,201 2,975,381
126,510

63,069

226,992

10,972,306

26,551,290

8,106,341

11,188,088

Operating Income (Loss)

(518)

(184,852)

(620,739)

28,579,114

(1,011,927)

(2,133,889)

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

--
-- -- -- -- 95,904 -- --
95,904

--
-- -- -- 187,147 3,818 -- --
190,965

--
-- -- -- -- 41,498 (10,197) --
31,301

--
-- -- -- -- 1,283,131 (12,991,755) (5,330,726)
(17,039,350)

--
-- -- -- -- 67,145 -- --
67,145

--
-- -- -- -- (3,869,028) 4,220 --
(3,864,808)

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

95,386

6,113

(589,438)

11,539,764

(944,782)

(5,998,697)

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

2,802,015

--

--

--

--

--

--

Total Other Revenues, Expenses, Gains or Losses

--

--

--

--

--

2,802,015

Change in Net Position

95,386

6,113

(589,438)

11,539,764

(944,782)

(3,196,682)

Net Position, Beginning of Year, Restated

2,613,581

404,072

6,025,619

83,536,282

2,477,790

264,009,637

Net Position-End of Year

$

2,708,967 $

410,185 $

5,436,181 $

95,076,046 $

1,533,008 $

260,812,955

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

230 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, 2020

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.

$

-- $

-- $

-- $

--

--

--

--

--

--

--

--

--

--

--

--

--

1,749,644

4,804,342

-- -- -- 3,759,593 -- 125,155
3,884,748

-- -- -- -- -- --
1,749,644

-- -- -- 170,963 (242) --
4,975,063

-- $ -- -- -- -- --
-- -- -- 175,183 -- --
175,183

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

-- -- -- 151,404,446 -- --
-- -- -- -- -- --
151,404,446

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

-- -- -- -- 31,111 392,373 -- 1,935,739 23,242
2,382,465

-- -- -- -- -- -- 60,438 25,206
85,644

-- -- -- -- -- 247,131 -- 555,138 --
802,269

-- -- -- -- -- 246,697 -- -- --
246,697

-- -- -- -- -- -- 15,970 --
15,970

16,915,635 387,277 --
9,671,035 -- --
102,217,398 10,935,591
140,126,936

Operating Income (Loss)

1,502,283

1,664,000

4,172,794

(71,514)

(15,970)

11,277,510

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

--
-- -- -- -- 2,001,689 -- --
2,001,689

--
-- -- -- -- 45,543 (1,437,378) --
(1,391,835)

--
-- -- -- -- 24 (6,921,124) --
(6,921,100)

--
-- -- -- -- 98,715 (91,552) --
7,163

--

--

--

--

--

--

--

--

--

27,240,143

--

697,734

--

(4,051,795)

(4,538,467)

--

19,347,615

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

3,503,972

272,165

(2,748,306)

(64,351)

(15,970)

30,625,125

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

221,756

--

--

--

--

--

--

--

--

--

--

--

221,756

--

--

--

--

--

Change in Net Position

3,725,728

272,165

(2,748,306)

(64,351)

(15,970)

30,625,125

Net Position, Beginning of Year, Restated

13,933,088

5,692,388

2,395,390

5,346,286

15,970

290,031,781

Net Position-End of Year

$

17,658,816 $

5,964,553 $

(352,916) $

5,281,935 $

-- $

320,656,906

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2020 Annual Financial Report 231

UNIVERSITY SYSTEM OF GEORGIA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY AFFILIATED ORGANIZATION (Unaudited) FOR FISCAL YEAR ENDED JUNE 30, 2020

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.

$

-- $

197,051,101 $

--

36,476,790

--

31,752,657

7,815,832

--

--

--

695,966

26,063,022

-- -- -- 68,756,040 35,877,710 --
113,145,548

-- -- -- -- -- --
291,343,570

-- $ -- -- -- -- 48,333
-- -- -- 15,172,148 2,615,200 --
17,835,681

-- $ -- -- -- -- 6,365,214
-- -- -- 161,615 -- 58,586
6,585,415

-- $ -- -- 178,445 -- --
-- -- -- 1,037,292 -- 19,440
1,235,177

-- -- -- 8,926 -- 2,019,583
-- -- -- 2,869,027 784,346 --
5,681,882

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

4,167,954 -- -- --
128,613 100,550
-- 97,613,361
1,239,072
103,249,550

-- -- -- -- -- -- 278,464,572 114,323
278,578,895

579,739 -- -- --
337,603 3,246,490 1,963,072
22,255 22,511
6,171,670

113,723 -- -- -- -- -- --
1,082,376 152,384
1,348,483

415,690 -- --
113,110 72,000 --
958,192 --
1,558,992

1,594,271 -- --
82,374 1,337,343
-- 6,895,374
65,838
9,975,200

Operating Income (Loss)

9,895,998

12,764,675

11,664,011

5,236,932

(323,815)

(4,293,318)

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

--
-- -- -- -- (18,053,632) (2,269,285) 1,117,013 (19,205,904)
(9,309,906)

--
-- -- -- -- 2,137,404 (9,762,811) (106,769) (7,732,176)
5,032,499

--
-- -- -- -- (746,350) -- -- (746,350)
10,917,661

--
-- -- -- -- 2,102,477 (3,916,692) -- (1,814,215)
3,422,717

--
-- -- -- -- (5,195) -- -- (5,195)
(329,010)

--
-- -- -- -- (506,669) (2,155,452) (160,000) (2,822,121)
(7,115,439)

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

26,570,257

--

591,872

--

--

788,340

--

(1,376,773)

--

--

--

--

Total Other Revenues, Expenses, Gains or Losses

26,570,257

(1,376,773)

591,872

--

--

788,340

Change in Net Position

17,260,351

3,655,726

11,509,533

3,422,717

(329,010)

(6,327,099)

Net Position, Beginning of Year, Restated

1,330,246,141

99,196,800

73,568,882

10,256,560

1,317,253

52,717,821

Net Position-End of Year

$

1,347,506,492 $

102,852,526 $

85,078,415 $

13,679,277 $

988,243 $

46,390,722

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

232 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, 2020

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

$

-- $

-- $

-- $

--

--

--

--

--

--

--

620,050

--

--

--

--

6,066,613

4,976,607

6,053,054

-- $ -- -- 612,942 -- 523,926

-- -- -- -- -- --
6,066,613

-- -- -- 1,646,198 -- --
7,242,855

-- -- -- 102,831 -- 1,083,665
7,239,550

-- -- -- 6,705,157 -- 67,277
7,909,302

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

1,135,873,201 59,654,569
145,799,002 354,175,506 873,371,423 240,675,367

--

--

--

--

--

--

--

255,160,153

--

121,572,933

266

11,239,117

266

3,197,521,271

OPERATING EXPENSES Salaries Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses

-- -- -- -- -- -- -- 511,099 --
511,099

444,138 -- --
46,495 1,285,705
-- 1,697,586
--
3,473,924

-- -- -- -- -- -- -- 1,833,717 --
1,833,717

-- -- -- 55,647 131,227.83 1,641,972 1,762 2,931,699.52 217,974
4,980,282.35

9,000 -- -- --
48,690 --
295,882 --
353,572

403,112,708 87,358,378
195,777,529 20,942,860 59,569,977 10,893,087
2,240,343,650 75,083,441
3,093,081,629

Operating Income (Loss)

5,555,514

3,768,931

5,405,833

2,929,019.65

(353,306)

104,439,642

NONOPERATING REVENUES (EXPENSES) State Appropriations Grants and Contracts Federal State Other Gifts Investment Income Interest Expense Other Nonoperating Revenues (Expenses)
Net Nonoperating Revenues

--
-- -- -- -- 132,332 (4,842,314) --
(4,709,982)

--
-- -- -- -- 456,014 (13,388,936) (8,911,362)
(21,844,284)

--
-- -- -- -- 215,454 (7,553,786) (2,919,221)
(10,257,553)

--
-- -- -- -- 8,623,407 (173,870) --
8,449,537

--
-- -- -- -- 1,186,548 -- --
1,186,548

32,500,563
50,843,764 3,409,250 --
27,427,290 (17,776,515) (162,484,526) (14,316,941)
(80,397,115)

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

845,532

(18,075,353)

(4,851,720)

11,378,556.65

833,242

24,042,527

Capital Grants and Gifts Federal State Other
Additions to Permanent and Term Endowments Special Item
Total Other Revenues, Expenses, Gains or Losses

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

21,258,158

--

14,691,346

--

--

--

91,398,673

--

--

--

--

--

(1,376,773)

--

14,691,346

--

--

--

111,280,058

Change in Net Position

845,532

(3,384,007)

(4,851,720)

11,378,556.65

833,242

135,322,585

Net Position, Beginning of Year, Restated

5,755,362

14,305,721

10,307,660

48,936,117

6,580,918

5,567,918,144

Net Position-End of Year

$

6,600,894 $

10,921,714 $

5,455,940 $

60,314,674 $

7,414,160 $

5,703,240,729

See Notes to Statement of Net Position and Statement of Revenues, Expenses and Changes in Net Position by Affiliated Organization.

2020 Annual Financial Report 233

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, 2020
Fiscal Year End for a few of the affiliated organizations differ from the June 30, 2020 Year End. The following organizations have a Fiscal Year End of July 31, 2019: 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, 2019: College of Coastal Georgia Foundation, Inc. Dalton State College Foundation, Inc. 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, 2020: Dalton State College Athletic Club (Dissolved July 16, 2019)
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.
Bainbridge State College Foundation reported fiscal year 2018 balances. Fort Valley State University Foundation, Inc. reported fiscal year 2019 balances. Southern Polytechnic Applied Research Corporation (Dissolved July 9, 2019) reported fiscal year 2016 balances. The balances for Georgia Tech Panama Foundation, a discretely presented component unit of Georgia Tech Global, Inc., were not available at the time that this report was issued due to the global pandemic.
234 University System of Georgia

UNIVERSITY SYSTEM OF GEORGIA BALANCE SHEET (NON-GAAP BASIS) BUDGET FUNDS JUNE 30, 2020 (Unaudited)

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Federal Financial Assistance Other Prepaid Expenditures Inventories Other Assets

$

929,916,628.84

64,798,109.30

128,076,715.24 403,797,904.38
17,876,517.69 5,876,775.46
11,482,791.26

Total Assets

$

1,561,825,442.17

LIABILITIES AND FUND EQUITY Liabilities
Accounts Payable Encumbrances Payable Salaries Payable Deferred Revenue Other Liabilities

$

94,792,704.05

334,000,937.87

24,060,134.46

241,673,103.77

11,097,930.77

Total Liabilities

705,624,810.92

Fund Balances Reserved Department Sales and Services Indirect Cost Recoveries Technology Fees Restricted/Sponsored Funds Uncollectible Accounts Receivable Inventories Tuition Carry - Forward Property Reserves Unreserved Surplus

163,881,233.87 249,429,510.97
46,784,940.30 190,715,230.90
44,106,149.44 2,870,570.90
62,174,986.51 22,168,457.65
74,069,550.71

Total Fund Balances

856,200,631.25

Total Liabilities and Fund Balances

$

1,561,825,442.17

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.

2020 Annual Financial Report 235

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. 2020

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

$

47,454,193.00 $

45,818,324.00 $

45,818,324.00 $

45,818,324.00 $

--

37,552,919.00

44,552,919.00

64,380,819.00

60,726,735.95

57,929,823.69

85,007,112.00

90,371,243.00

110,199,143.00

106,545,059.95

57,929,823.69

6,704,688.00

7,100,000.00

7,204,250.00

7,557,074.59

1,127,993.36

44,205,415.00 31,333,929.00
75,539,344.00

42,437,198.00 34,333,929.00
76,771,127.00

42,437,198.00 37,670,619.00
80,107,817.00

42,437,198.00 28,633,162.19
71,070,360.19

-- 9,344,555.67
9,344,555.67

19,991,671.00 14,400,000.00
34,391,671.00

19,106,171.00 17,400,000.00
36,506,171.00

19,106,171.00 18,324,210.00
37,430,381.00

19,106,171.00 12,667,358.97
31,773,529.97

-- 9,344,555.67
9,344,555.67

1,014,238.00 575,988.00
1,590,226.00

973,668.00 606,988.00
1,580,656.00

973,668.00 934,409.00
1,908,077.00

973,668.00 883,914.39
1,857,582.39

-- 286,454.21
286,454.21

3,015,025.00 11,219,877.00
14,234,902.00

2,894,424.00 11,485,243.00
14,379,667.00

2,894,424.00 12,628,042.00
15,522,466.00

2,894,424.00 11,625,486.49
14,519,910.49

-- 2,803,125.15
2,803,125.15

4,782,377.00 1,178,807.00

4,669,595.00 1,151,189.00

4,669,595.00 1,116,916.00

4,669,595.00 --

--

1,072,277.24 741,847.60 737,846.71

$

5,961,184.00 $

5,820,784.00 $

5,786,511.00 $

5,741,872.24 $

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.

236 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. 2020

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

$

-- $ 45,818,324.00 $

-- $ 45,818,324.00 $

-- $

--

--

88,656,559.64

24,275,740.64

60,780,310.09

3,600,508.91

27,876,249.55

Total Agricultural Experiment Station

--

134,474,883.64

24,275,740.64

106,598,634.09

3,600,508.91

27,876,249.55

Athens and Tifton Veterinary Laboratories Contract Other Funds

--

8,685,067.95

1,480,817.95

7,102,031.08

102,218.92

1,583,036.87

Cooperative Extension Service State Appropriation State General Funds Other Funds

--

42,437,198.00

--

37,977,717.86

-- 307,098.86

42,437,198.00 31,276,031.78

-- 6,394,587.22

-- 6,701,686.08

Total Cooperative Extension Service

--

80,414,915.86

307,098.86

73,713,229.78

6,394,587.22

6,701,686.08

Enterprise Innovation Institute State Appropriation State General Funds Other Funds

--

19,106,171.00

--

32,697,193.61

-- (4,733,187.39)

19,106,153.76 31,408,476.78

17.24 6,021,904.22

17.24 1,288,716.83

Total Enterprise Innovation Institute

--

32,697,193.61

(4,733,187.39)

31,408,476.78

6,021,904.22

1,288,716.83

Forestry Cooperative Extension State Appropriation State General Funds Other Funds

--

973,668.00

--

1,170,368.60

-- 235,959.60

973,668.00 803,659.10

-- 130,749.90

-- 366,709.50

Total Forestry Cooperative Extension

--

2,144,036.60

235,959.60

1,777,327.10

130,749.90

366,709.50

Forestry Research State Appropriation State General Funds Other Funds

--

2,894,424.00

--

14,428,611.64

-- 1,800,569.64

2,894,424.00 11,653,128.63

-- 974,913.37

-- 2,775,483.01

Total Forestry Research

--

17,323,035.64

1,800,569.64

14,547,552.63

974,913.37

2,775,483.01

Georgia Archives State Appropriation State General Funds Other Funds

--

4,669,595.00

--

1,814,124.84

-- 697,208.84

4,539,553.34 961,733.50

130,041.66 155,182.50

130,041.66 852,391.34

Total Georgia Archives

$

-- $ 6,483,719.84 $

697,208.84 $ 5,501,286.84 $

285,224.16 $

982,433.00

Actual amounts were prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a special purpose framework.

2020 Annual Financial Report 237

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. 2020

Georgia Cyber Innovation and Training Center State General Funds Other Funds
Total Georgia Cyber Innovation and Training Center
Georgia Research Alliance State General Funds
Georgia Tech Research Institute State Appropriation State General Funds Federal Funds -COVID19 Federal Funds Not Itemized-COVID Other Funds
Total Georgia Tech Research Institute
Marine Institute State Appropriation State General Funds Other Funds
Total Marine Institute
Marine Resources Extension Center State Appropriation State General Funds Other Funds
Total Marine Resources Extension Center
Medical College of Georgia Hospital and Clinics State Appropriation State General Funds
Public Libraries State Appropriation State General Funds Other Funds
Total Public Libraries
Public Service/Special Funding Initiatives State Appropriation State General Funds State Funds - Prior Year Carry-Over State General Funds - Prior Year
Total Public Service/Special Funding Initiatives

Original Appropriation

Amended Appropriation

Final Budget

Funds Available Compared to Budget

Current Year

Prior Year Reserve

Revenues

Carry-Over

$

5,942,767.00 $

5,571,954.00 $

5,571,954.00 $

5,363,207.00 --$

--

--

772,982.00

2,499,136.00

1,859,091.30 --

--

5,942,767.00

6,344,936.00

8,071,090.00

7,222,298.30 --

--

5,134,350.00

4,928,976.00

4,928,976.00

4,928,976.00 --

--

6,099,156.00
-- 477,980,336.00
484,079,492.00

5,855,190.00
-- 506,980,336.00
512,835,526.00

5,855,190.00
817,264.00 579,526,080.00
586,198,534.00

5,855,190.00 --

--

410,485.18 -- 549,884,404.15 3,508,559.235,508,559.25

556,150,079.33 3,508,559.235,508,559.25

1,029,410.00 486,281.00
1,515,691.00

988,234.00 486,281.00
1,474,515.00

988,234.00 792,157.00
1,780,391.00

988,234.00 --

--

489,534.26 723,928.66 723,928.66

1,477,768.26 723,928.66 723,928.66

1,579,867.00 1,345,529.00
2,925,396.00

1,516,672.00 1,345,529.00
2,862,201.00

1,516,672.00 1,937,197.00
3,453,869.00

1,516,672.00 --

--

1,723,022.01 300,129.82 300,129.82

3,239,694.01 300,129.82 300,129.82

32,555,858.00

32,500,565.00

32,500,565.00

32,500,565.00 --

--

40,044,380.00

39,657,132.00

39,657,132.00

39,657,132.00

--

4,415,201.00

4,758,088.00

5,140,161.00

4,734,484.54

--

44,459,581.00

44,415,220.00

44,797,293.00

44,391,616.54

--

27,253,512.00

25,982,948.00

25,982,948.00

25,982,948.00

--

--

672,567.00

--

$

27,253,512.00 $

25,982,948.00 $

26,655,515.00 $

25,982,948.00 $

-- 672,567.08 672,567.08

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.

238 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, 2020

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

-- $ --

5,363,207.00 $ 1,859,091.30

(208,747.00) $ (640,044.70)

5,330,868.99 $ 1,065,062.82

241,085.01 $ 1,434,073.18

32,338.01 794,028.48

Total Georgia Cyber Innovation and Training Center

--

7,222,298.30

(848,791.70)

6,395,931.81

1,675,158.19

826,366.49

Georgia Research Alliance State General Funds

--

4,928,976.00

--

4,928,976.00

--

--

Georgia Tech Research Institute State Appropriation State General Funds Federal Funds- COVID19 Federal Funds Not Itemized-COVID Other Funds

--

5,855,190.00

410,485.18

--

553,392,963.40

--

5,855,190.00

(406,778.82) (26,133,116.60)

410,485.18 549,230,785.30

--
406,778.82 30,295,294.70

--
-- 4,162,178.10

Total Georgia Tech Research Institute

--

559,658,638.58

(26,539,895.42)

555,496,460.48

30,702,073.52

4,162,178.10

Marine Institute State Appropriation State General Funds Other Funds

--

988,234.00

--

1,213,462.92

-- 421,305.92

988,234.00 594,294.02

-- 197,862.98

-- 619,168.90

Total Marine Institute

--

2,201,696.92

421,305.92

1,582,528.02

197,862.98

619,168.90

Marine Resources Extension Center State Appropriation State General Funds Other Funds

--

1,516,672.00

--

2,023,151.83

-- 85,954.83

1,516,672.00 1,787,245.95

-- 149,951.05

-- 235,905.88

Total Marine Resources Extension Center

--

3,539,823.83

85,954.83

3,303,917.95

149,951.05

235,905.88

Medical College of Georgia Hospital and Clinics State Appropriation State General Funds

--

32,500,565.00

--

32,500,565.00

--

--

Public Libraries State Appropriation State General Funds Other Funds

--

39,657,132.00

--

4,734,484.54

-- (405,676.46)

39,230,254.59 4,734,484.54

426,877.41 405,676.46

426,877.41 --

Total Public Libraries

--

44,391,616.54

(405,676.46)

43,964,739.13

832,553.87

426,877.41

Public Service/Special Funding Initiatives State Appropriation State General Funds State Funds - Prior Year Carry-Over State General Funds - Prior Year

--

25,982,948.00

--

672,567.08

--

22,942,069.93

0.08

672,567.00

3,040,878.07 --

3,040,878.07 0.08

Total Public Service/Special Funding Initiatives

$

-- $ 26,655,515.08 $

0.08 $ 23,614,636.93 $ 3,040,878.07 $ 3,040,878.15

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.

2020 Annual Financial Report 239

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. 2020

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

$

12,466,667.00 $

11,722,805.00 $

11,722,805.00 $

11,722,805.00 $--$

--

--

--

380,571.00

240,249.43 5,615,638.557,615,638.57

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

1,547,118.00 3,900,620.00

1,485,233.00 3,700,620.00

1,485,233.00 4,302,400.00

1,485,233.00 --

--

3,672,536.55 1,567,948.618,567,948.68

Total Skidaway Institute of Oceanography

5,447,738.00

5,185,853.00

5,787,633.00

5,157,769.55 1,567,948.618,567,948.68

Teaching State Appropriation State General Funds Federal Funds-COVID19 Federal Funds Not Itemized - COVID Other Funds

2,296,261,553.00
-- 5,026,603,600.00

2,287,273,298.00
-- 5,243,904,151.00

2,287,273,298.00
269,318,390.00 5,851,651,492.00

2,287,273,298.00
226,769,151.53 5,205,082,719.82

-- 579,111,976.56

Total Teaching

7,011,218,216.00

7,182,332,437.00

7,910,062,530.00

7,252,606,568.99

579,111,976.56

Veterinary Medicine Experiment Station State Appropriation State General Funds

4,671,769.00

4,457,398.00

4,457,398.00

4,457,398.00

--

Veterinary Medicine Teaching Hospital State Appropriation State General Funds Other Funds

489,381.00 19,800,000.00

469,806.00 22,000,000.00

469,806.00 21,000,000.00

469,806.00 --

--

21,333,263.83 3,912,071.230,912,071.20

Total Veterinary Medicine Teaching Hospital

20,289,381.00

22,469,806.00

21,469,806.00

21,803,069.83

3,912,071.20

Agencies Attached for Administrative Purposes

Payments to Georgia Military College Junior Military College

State Appropriation

State General Funds

4,014,412.00

3,863,463.00

3,863,463.00

3,863,463.00

--

Payments to Georgia Military College Preparatory School

State Appropriation

State General Funds

3,747,460.00

3,945,859.00

3,945,859.00

3,945,859.00

--

Payments to Georgia Public Telecommunications Commission

State Appropriation

State General Funds

15,308,306.00

14,705,194.00

14,705,194.00

14,705,194.00

--

Budget Unit Totals

$ 8,216,106,660.00 $ 8,461,402,362.00 $ 9,441,120,787.00 $ 8,699,980,312.42 $

638,570,283.14

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.

240 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. 2020

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

$

-- $ 11,722,805.00 $

-- $ 11,193,695.72 $

529,109.28 $

529,109.28

--

5,855,888.00

5,475,317.00

340,901.92

39,669.08

5,514,986.08

Total Regents Central Office

--

17,578,693.00

5,475,317.00

11,534,597.64

568,778.36

6,044,095.36

Skidaway Institute of Oceanography State Appropriation State General Funds Other Funds

--

1,485,233.00

--

5,240,485.23

-- 938,085.23

1,485,233.00 2,971,064.91

-- 1,331,335.09

-- 2,269,420.32

Total Skidaway Institute of Oceanography

--

6,725,718.23

938,085.23

4,456,297.91

1,331,335.09

2,269,420.32

Teaching State Appropriation State General Funds Federal Funds - COVID19 Federal Funds Not Itemized - COVID Other Funds

-- 2,287,273,298.00

(172,742.56) 172,742.56

226,596,408.97 5,784,367,438.94

-- 2,249,123,074.35

(42,721,981.03) (67,284,053.06)

226,596,408.97 5,071,585,235.02

38,150,223.65
42,721,981.03 780,066,256.98

38,150,223.65
-- 712,782,203.92

Total Teaching

-- 8,298,237,145.91

(110,006,034.09) 7,547,304,718.34

860,938,461.66

750,932,427.57

Veterinary Medicine Experiment Station State Appropriation State General Funds

--

4,457,398.00

--

4,457,398.00

--

--

Veterinary Medicine Teaching Hospital State Appropriation State General Funds Other Funds

--

469,806.00

--

25,245,335.03

-- 4,245,335.03

469,806.00 20,434,961.79

-- 565,038.21

-- 4,810,373.24

Total Veterinary Medicine Teaching Hospital

--

25,715,141.03

4,245,335.03

20,904,767.79

565,038.21

4,810,373.24

Agencies Attached for Administrative Purposes
Payments to Georgia Military College Junior Military College
State Appropriation State General Funds

--

3,863,463.00

--

3,863,463.00

--

--

Payments to Georgia Military College Preparatory School
State Appropriation
State General Funds

--

3,945,859.00

--

3,945,859.00

--

--

Payments to Georgia Public Telecommunications Commission
State Appropriation
State General Funds

--

14,705,194.00

--

14,705,194.00

--

--

Budget Unit Totals

$

-- $ 9,338,550,595.56 $ (102,570,191.44) $ 8,523,608,589.30 $ 917,512,197.70 $ 814,942,006.26

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.

2020 Annual Financial Report 241

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. 2020

Beginning Fund Balance/(Deficit)
July 1

Fund Balance Carried Over from
Prior Year as Funds Available

Return of Fiscal Year 2019
Surplus

Prior Year Adjustments

Other Adjustments

Agricultural Experiment Station State Appropriation State General Funds Other Funds

$

99,212.69 $

-- $

(99,212.69) $

51,671.50 $

--

27,933,702.09

(27,929,823.69)

(3,878.40)

39,490.64

--

Total Agricultural Experiment Station

28,032,914.78

(27,929,823.69)

(103,091.09)

91,162.14

--

Athens and Tifton Veterinary Laboratories Contract Other Funds

1,127,993.36

(1,127,993.36)

--

6,213.83

--

Cooperative Extension Service State Appropriation State General Funds Other Funds

110,725.82

--

(110,725.82)

79,517.83

--

9,346,600.94

(9,344,555.67)

(2,045.27)

176,889.52

--

Total Cooperative Extension Service

9,457,326.76

(9,344,555.67)

(112,771.09)

256,407.35

--

Enterprise Innovation Institute State Appropriation State General Funds Other Funds

-- 923,663.64

-- (923,663.64)

--

47.38 --

--

--

--

(1,123.88)

Total Enterprise Innovation Institute

923,663.64

(923,663.64)

--

47.38

(1,123.88)

Forestry Cooperative Extension State Appropriation State General Funds Other Funds

2,269.50

--

(2,269.50)

471.75

--

286,454.21

(286,454.21)

--

5,155.09

--

Total Forestry Cooperative Extension

288,723.71

(286,454.21)

(2,269.50)

5,626.84

--

Forestry Research State Appropriation State General Funds Other Funds

863.92

--

(863.92)

2,522.59

--

2,803,816.28

(2,803,125.15)

(691.13)

4,028.24

--

Total Forestry Research

2,804,680.20

(2,803,125.15)

(1,555.05)

6,550.83

--

Georgia Archives State Appropriation State General Funds Other Funds

487.74 767,623.63

-- (741,847.60)

(487.74) (25,776.03)

6,809.79 --

-- (18,892.17)

Total Georgia Archives

768,111.37

(741,847.60)

(26,263.77)

6,809.79

(18,892.17)

Georgia Cyber Innovation and Training Center State General Funds Other Funds

535,040.59

--

(535,040.59)

740.22

--

--

--

--

--

--

Total Georgia Cyber Innovation and Training Center

$

535,040.59 $

-- $

(535,040.59) $

740.22 $

--

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.

242 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. 2020

Early Return of Fiscal Year 2020
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

$

-- $

-- $

51,671.50 $

-- $

51,671.50 $

51,671.50

--

27,876,249.55

27,915,740.19

27,912,702.71

3,037.48

27,915,740.19

Total Agricultural Experiment Station

--

27,876,249.55

27,967,411.69

27,912,702.71

54,708.98

27,967,411.69

Athens and Tifton Veterinary Laboratories Contract Other Funds

--

1,583,036.87

1,589,250.70

1,589,250.70

--

1,589,250.70

Cooperative Extension Service State Appropriation State General Funds Other Funds

--

--

79,517.83

--

--

6,701,686.08

6,878,575.60

6,876,249.04

79,517.83 2,326.56

79,517.83 6,878,575.60

Total Cooperative Extension Service

--

6,701,686.08

6,958,093.43

6,876,249.04

81,844.39

6,958,093.43

Enterprise Innovation Institute State Appropriation State General Funds Other Funds

--

17.24

64.62

--

--

1,288,699.59

1,287,575.71

1,287,575.71

64.62 --

64.62 1,287,575.71

Total Enterprise Innovation Institute

--

1,288,716.83

1,287,640.33

1,287,575.71

64.62

1,287,640.33

Forestry Cooperative Extension State Appropriation State General Funds Other Funds

--

--

471.75

--

--

366,709.50

371,864.59

371,864.59

471.75 --

471.75 371,864.59

Total Forestry Cooperative Extension

--

366,709.50

372,336.34

371,864.59

471.75

372,336.34

Forestry Research State Appropriation State General Funds Other Funds

--

--

2,522.59

--

--

2,775,483.01

2,779,511.25

2,779,383.67

2,522.59 127.58

2,522.59 2,779,511.25

Total Forestry Research

--

2,775,483.01

2,782,033.84

2,779,383.67

2,650.17

2,782,033.84

Georgia Archives State Appropriation State General Funds Other Funds

--

130,041.66

136,851.45

--

136,851.45

136,851.45

--

852,391.34

833,499.17

830,364.17

3,135.00

833,499.17

Total Georgia Archives

--

982,433.00

970,350.62

830,364.17

139,986.45

970,350.62

Georgia Cyber Innovation and Training Center State General Funds Other Funds

--

32,338.01

33,078.23

--

--

794,028.48

794,028.48

794,028.48

33,078.23 --

33,078.23 794,028.48

Total Georgia Cyber Innovation and Training Center $

-- $

826,366.49 $

827,106.71 $

794,028.48 $

33,078.23 $

827,106.71

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.

2020 Annual Financial Report 243

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. 2020

Beginning Fund Balance/(Deficit)
July 1

Fund Balance Carried Over from
Prior Year as Funds Available

Return of Fiscal Year 2019
Surplus

Prior Year Adjustments

Other Adjustments

Georgia Research Alliance State General Funds

$

-- $

-- $

-- $

-- $

--

Georgia Tech Research Institute State Appropriation State General Funds Federal Funds - COVID19 Federal Funds Not Itemized - COVID Other Funds

657.29

--

(657.29)

3,352.50 --

--

--

--

--

3,508,559.25

(3,508,559.25)

--

-- --

-- --

--

Total Georgia Tech Research Institute

3,509,216.54

(3,508,559.25)

(657.29)

3,352.50

--

Marine Institute State Appropriation State General Funds Other Funds

--

--

--

--

--

723,928.66

(723,928.66)

--

1,618.71

--

Total Marine Institute

723,928.66

(723,928.66)

--

1,618.71

--

Marine Resources Extension Center State Appropriation State General Funds Other Funds

2,000.90

--

(2,000.90)

14,311.36

--

300,326.32

(300,129.82)

(196.50)

(422.18)

--

Total Marine Resources Extension Center

302,327.22

(300,129.82)

(2,197.40)

13,889.18

--

Medical College of Georgia Hospital and Clinics State Appropriation State General Funds

--

--

--

--

--

Public Libraries State Appropriation State General Funds Other Funds

139,800.58

--

(139,800.58)

187,459.13

--

--

--

--

--

--

Total Public Libraries

139,800.58

--

(139,800.58)

187,459.13

--

Public Service/Special Funding Initiatives State Appropriation State General Funds State Funds - Prior Year Carry-Over State General Funds - Prior Year

4,217,403.69

--

(4,217,403.69)

230,089.30

--

672,567.08

(672,567.08)

--

--

--

Total Public Service/Special Funding Initiatives

4,889,970.77

(672,567.08)

(4,217,403.69)

230,089.30

--

Regents Central Office State Appropriation State General Funds Other Funds

11,646.39

--

(11,646.39)

26,867.26

--

5,615,638.57

(5,615,638.57)

--

--

--

Total Regents Central Office

$ 5,627,284.96 $ (5,615,638.57) $

(11,646.39) $

26,867.26 $

--

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.

244 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. 2020

Early Return of Fiscal Year 2020
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 Federal Funds-COVID19 Federal Funds Not Itemized - COVID Other Funds

--

--

3,352.50

--

--

--

--

--

--

4,162,178.10

4,162,178.10

4,162,178.10

3,352.50
-- --

3,352.50
-- 4,162,178.10

Total Georgia Tech Research Institute

--

4,162,178.10

4,165,530.60

4,162,178.10

3,352.50

4,165,530.60

Marine Institute State Appropriation State General Funds Other Funds

--

--

--

--

--

619,168.90

620,787.61

620,787.61

--

--

--

620,787.61

Total Marine Institute

--

619,168.90

620,787.61

620,787.61

--

620,787.61

Marine Resources Extension Center State Appropriation State General Funds Other Funds

--

--

14,311.36

--

--

235,905.88

235,483.70

235,483.49

14,311.36 0.21

14,311.36 235,483.70

Total Marine Resources Extension Center

--

235,905.88

249,795.06

235,483.49

14,311.57

249,795.06

Medical College of Georgia Hospital and Clinics State Appropriation State General Funds

--

--

--

--

--

--

Public Libraries State Appropriation State General Funds Other Funds

--

426,877.41

614,336.54

--

--

--

--

614,336.54

614,336.54

--

--

--

Total Public Libraries

--

426,877.41

614,336.54

--

614,336.54

614,336.54

Public Service/Special Funding Initiatives State Appropriation State General Funds State Funds - Prior Year Carry-Over State General Funds - Prior Year

--

3,040,878.07

3,270,967.37

--

0.08

0.08

--

3,270,967.37

3,270,967.37

--

0.08

0.08

Total Public Service/Special Funding Initiatives

--

3,040,878.15

3,270,967.45

--

3,270,967.45

3,270,967.45

Regents Central Office State Appropriation State General Funds Other Funds

--

529,109.28

555,976.54

--

--

5,514,986.08

5,514,986.08

5,514,986.08

555,976.54 --

555,976.54 5,514,986.08

Total Regents Central Office

$

-- $ 6,044,095.36 $ 6,070,962.62 $ 5,514,986.08 $

555,976.54 $ 6,070,962.62

Actual amounts were prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a special purpose framework.

2020 Annual Financial Report 245

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. 2020

Beginning Fund Balance/(Deficit)
July 1

Fund Balance Carried Over from
Prior Year as Funds Available

Return of Fiscal Year 2019
Surplus

Prior Year Adjustments

Other Adjustments

Skidaway Institute of Oceanography State Appropriation State General Funds Other Funds

$

19.30 $

-- $

(19.30) $

546.82 $--$

--

1,567,948.68

(1,567,948.68)

--

1,902.80 --

--

Total Skidaway Institute of Oceanography

1,567,967.98

(1,567,948.68)

(19.30)

2,449.62

--

Teaching State Appropriation State General Funds Federal Funds - COVID19 Federal Funds Not Itemized - COVID Other Funds

2,771,212.15

--

(2,771,212.15)

2,278,293.31

(164,702.50)

580,437,845.16

(579,111,976.56)

(1,325,868.60)

6,309,186.42

(15,065,828.86)

Total Teaching

583,209,057.31

(579,111,976.56)

(4,097,080.75)

8,587,479.73

(15,230,531.36)

Veterinary Medicine Experiment Station State Appropriation State General Funds

6,634.66

--

(6,634.66)

1,739.20

--

Veterinary Medicine Teaching Hospital State Appropriation State General Funds Other Funds

--

--

--

--

--

3,912,071.20

(3,912,071.20)

--

103,949.05

--

Total Veterinary Medicine Teaching Hospital

3,912,071.20

(3,912,071.20)

--

(16,457.34)

--

Agencies Attached for Administrative Purposes

Payments to Georgia Military College Junior Military College State Appropriation State General Funds

--

--

--

--

--

Payments to Georgia Military College Preparatory School State Appropriation State General Funds

--

--

--

--

--

Payments to Georgia Public Telecommunications Commission State Appropriation State General Funds

--

--

--

--

--

Total Operating Activity

647,826,714.29

(638,570,283.14)

(9,256,431.15)

9,532,452.06

(15,250,547.41)

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.

246 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. 2020

Early Return of Fiscal Year 2020
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

$

-- $

-- $

546.82 $

-- $

546.82 $

546.82

--

2,269,420.32

2,271,323.12

2,271,323.12

--

2,271,323.12

Total Skidaway Institute of Oceanography

--

2,269,420.32

2,271,869.94

2,271,323.12

546.82

2,271,869.94

Teaching State Appropriation State General Funds Federal Funds - COVID19 Federal Funds Not Itemized - COVID Other Funds

--

38,150,223.65

40,263,814.46

--

--

--

--

--

--

712,782,203.92

704,025,561.48

674,993,860.44

40,263,814.46
-- 29,031,701.04

40,263,814.46
-- 704,025,561.48

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

--

--

1,739.20

--

1,739.20

1,739.20

Veterinary Medicine Teaching Hospital State Appropriation State General Funds Other Funds

--

--

--

--

--

4,810,373.24

4,914,322.29

4,914,322.29

--

--

--

4,914,322.29

Total Veterinary Medicine Teaching Hospital
Agencies Attached for Administrative Purposes
Payments to Georgia Military College Junior Military College
State Appropriation State General Funds
Payments to Georgia Military College Preparatory School
State Appropriation State General Funds

--

4,810,373.24

4,914,322.29

4,914,322.29

--

4,914,322.29

--

--

--

--

--

--

--

--

--

--

--

--

Payments to Georgia Public Telecommunications Commission
State Appropriation
State General Funds

--

--

--

--

--

--

Total Operating Activity

--

814,942,006.26

809,223,910.91

735,154,360.20

74,069,550.71

809,223,910.91

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.

2020 Annual Financial Report 247

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. 2020

Beginning Fund Balance/(Deficit)
July 1

Fund Balance Carried Over from
Prior Year as Funds Available

Return of Fiscal Year 2019
Surplus

Prior Year Adjustments

Other Adjustments

Prior Year Reserve Not Available for Expenditure Inventories Other Reserves

2,689,227.11

--

--

--

181,343.79

29,036,945.82

--

--

--

15,069,203.62

Budget Unit Totals

$ 679,552,887.22 $ (638,570,283.14) $ (9,256,431.15) $ 9,532,452.06 $

--

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.

248 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. 2020

Early Return of Fiscal Year 2020
Surplus

Excess (Deficiency) of Funds Available
Over/(Under) Expenditures

Ending Fund Balance/(Deficit)
June 30

Analysis of Ending Fund Balance

Reserved

Surplus/(Deficit)

Total

Prior Year Reserve Not Available for Expenditure Inventories Other Reserves

--

--

2,870,570.90

2,870,570.90

--

2,870,570.90

--

--

44,106,149.44

44,106,149.44

--

44,106,149.44

Budget Unit Totals

$

-- $ 814,942,006.26 $ 856,200,631.25 $ 782,131,080.54 $ 74,069,550.71 $ 856,200,631.25

Summary of Ending Fund Balance Reserved Department Sales and Services Indirect Cost Recoveries Technology Fees Restricted/Sponsored Funds Uncollectible Accounts Receivable Inventories Tuition Carry - Forward Property Reserves Unreserved, Undesignated Surplus

$ 163,881,233.87 $ 249,429,510.97 46,784,940.30 190,715,230.90 44,106,149.44 2,870,570.90 62,174,986.51 22,168,457.65

-- $ 163,881,233.87

--

249,429,510.97

--

46,784,940.30

--

190,715,230.90

--

44,106,149.44

--

2,870,570.90

--

62,174,986.51

--

22,168,457.65

--

74,069,550.71

74,069,550.71

Total Ending Fund Balance - June 30

$ 782,131,080.54 $ 74,069,550.71 $ 856,200,631.25

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.

2020 Annual Financial Report 249

Acknowledgments
Published by University System of Georgia Strategy and Fiscal Affairs: Tracey Cook - Executive Vice Chancellor For Strategy and Fiscal Affairs/Treasurer Diane Hickey - Vice Chancellor For Fiscal Affairs Brad Freeman Amanda Bibby Theresa L. Jackson Christi Porto
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 Jeff Davis, Columbus State University Nick Henry, Dalton State College Cliff Gay, East Georgia State College Michell Martin, Fort Valley State University Susan Allen, Georgia College & State University Frank Hardymon, Georgia Gwinnett College Jamie Petty, Georgia Highlands College Kelly Fox, Georgia Institute of Technology Robert Whitaker, Georgia Southern University Jeff Hall, Georgia Southwestern State University Jerry Rackliffe, Georgia State University Megan Davidson, Gordon State College Aaron Howell, Kennesaw State University Nancy Stroud, Middle Georgia State University Justin Janney, Savannah State University Suzie Brown, South Georgia State College Ryan Nesbit, University of Georgia Mac McConnell, University of North Georgia John Haven, University of West Georgia Traycee Martin, Valdosta State University Julie Peterson, 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
250 University System of Georgia

www.usg.edu