{"response":{"docs":[{"id":"dlg_ggpd_s-ga-ba800-b-pr1-ba419-b2015-belec-p-btext","title":"Albany State University, Albany, Georgia, management report for fiscal year ended 2015 June 30","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2016-02-11"],"dcterms_description":["Management report for Albany State University."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Georgia. Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Albany State University--Appropriations and expenditures--Periodicals","Financial statements--Georgia--Periodicals","Financial statements","Financial records"],"dcterms_title":["Albany State University, Albany, Georgia, management report for fiscal year ended 2015 June 30"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_s-ga-ba800-b-pr1-ba419-b2015-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_s-ga-ba800-b-pr1-ba419-b2015-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["reports"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"ALBANY STATE UNIVERSITY \r\nALBANY, GEORGIA \r\nMANAGEMENT REPORT FOR FISCAL YEAR ENDED JUNE 30, 2015 \r\nA Member Institution of the University System of Georgia \r\n \r\n ALBANY STATE UNIVERSITY - TABLE OF CONTENTS - \r\n \r\nSECTION I FINANCIAL LETTER OF TRANSMITTAL SELECTED FINANCIAL INFORMATION EXHIBITS A STATEMENT OF NET POSITION - (GAAP BASIS) B STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION (GAAP BASIS) C STATEMENT OF CASH FLOWS - (GAAP BASIS) D SELECTED FINANCIAL NOTES \r\n \r\nPage \r\n2 3 4 6 \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\nSCHEDULES \r\n \r\n1 BALANCE SHEET - (STATUTORY BASIS) BUDGET FUND \r\n \r\n23 \r\n \r\n2 SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT \r\n \r\n(STATUTORY BASIS) BUDGET FUND \r\n \r\n24 \r\n \r\n3 STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET \r\n \r\nBY PROGRAM AND FUNDING SOURCE \r\n \r\n(STATUTORY BASIS) BUDGET FUND \r\n \r\n25 \r\n \r\n4 STATEMENT OF CHANGES TO FUND BALANCE \r\n \r\nBY PROGRAM AND FUNDING SOURCE \r\n \r\n(STATUTORY BASIS) BUDGET FUND \r\n \r\n27 \r\n \r\n5 RECONCILIATION OF BUDGET TO GAAP \r\n \r\n29 \r\n \r\n6 RECONCILIATION OF SALARIES AND TRAVEL \r\n \r\n31 \r\n \r\nSECTION II ENTITY'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n (This page left intentionally blank) \r\n \r\n ALBANY STATE UNIVERSITY - TABLE OF CONTENTS - \r\nSECTION III FINDINGS, QUESTIONED COSTS AND OTHER ITEMS SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\n \r\n (This page left intentionally blank) \r\n \r\n SECTION I FINANCIAL \r\n \r\n (This page left intentionally blank) \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nFebruary 11, 2016 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly of Georgia Members of the State Board of Regents of the University System of Georgia \r\nand Dr. Arthur Dunning, President Albany State University \r\n \r\nLadies and Gentlemen: \r\n \r\nAs part of our audits of the basic financial statements of the University System of Georgia presented in the Annual Financial Report for the University System of Georgia, the basic financial statements of the State of Georgia presented in the State of Georgia Comprehensive Annual Financial Report and the issuance of a State of Georgia Single Audit Report pursuant to the Single Audit Act Amendments, as of and for the year ended June 30, 2015, we have performed certain audit procedures at Albany State University. Accordingly, the financial statements and compliance activities of Albany State University were examined to the extent considered necessary in order to express an opinion as to the fair presentation of the financial statements contained in the foregoing documents and to issue reports on compliance and internal control as required by the Single Audit Act Amendments of 1996. \r\n \r\nIn addition, we have audited compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on its Federal programs for the year ended June 30, 2015. \r\n \r\nThis Management Report contains information pertinent to the financial and compliance activities of Albany State University as of and for the year ended June 30, 2015. Information contained in this report is a by-product of our audits of the basic financial statements of the University System of Georgia and the basic financial statements of the State of Georgia and is the representation of management. Accordingly, we do not express an opinion or any other form of assurance on it. The particular information provided which includes a section on findings and other items reported in accordance with Commission on Colleges regulation 2.11.1 is enumerated in the Table of Contents. \r\n \r\nThis report is intended solely for the information and use of the management of Albany State University, members of the Board of Regents of the University System of Georgia and the Southern Association of Colleges and Schools - Commission on Colleges and is not intended to be and should not be used by anyone other than these specified parties. \r\n \r\nRespectfully, \r\n \r\nGSG:er \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n SELECTED FINANCIAL INFORMATION -1- \r\n \r\n ALBANY STATE UNIVERSITY STATEMENT OF NET POSITION - (GAAP BASIS) \r\nJUNE 30, 2015 \r\nASSETS \r\nCurrent Assets Cash and Cash Equivalents Accounts Receivable, Net (Note 3) Receivables - Federal Financial Assistance Receivables - Other Prepaid Items \r\nTotal Current Assets \r\nNoncurrent Assets Due from USO - Capital Liability Reserve Fund Notes Receivable, Net Capital Assets, Net (Note 4) \r\nTotal Noncurrent Assets \r\nTotal Assets \r\nDeferred Outflows of Resources Related to Defined Benefit Pension Plan \r\nLIABILITIES \r\nCurrent Liabilities Accounts Payable Salaries Payable Benefits Payable Contracts Payable Deposits Advances (Including Tuition and Fees) (Note 5) Other Liabilities Deposits Held for Other Organizations Lease Purchase Obligations Compensated Absences \r\nTotal Current Liabilities \r\nNoncurrent Liabilities Lease Purchase Obligations Compensated Absences Net Pension Liability \r\nTotal Noncurrent Liabilities \r\nTotal Liabilities \r\nDeferred Inflows of Resources Related to Defined Benefit Pension Plan \r\nNET POSITION \r\nNet Investment in Capital Assets Restricted for: \r\nExpendable Unrestricted \r\nTotal Net Position \r\n \r\nEXHIBIT \"A\" \r\n \r\n$ \r\n \r\n5,169,402 \r\n \r\n1,200,806 2,466,724 \r\n26,996 \r\n \r\n8,863,928 \r\n \r\n507,323 382,943 147,254,497 \r\n148,144,763 \r\n157,008,691 \r\n \r\n2,543,796 \r\n \r\n130,637 116,642 \r\n90,509 47,177 394,589 1,241,754 \r\n9,143 190,073 1,668,946 827,489 \r\n4,716,959 \r\n72,491,319 961,935 \r\n23,373,229 \r\n96,826,483 \r\n101,543,442 \r\n8,973,982 \r\n \r\n73,094,232 \r\n348,666 -24,407,835 \r\n \r\n$ \r\n \r\n49,035,063 \r\n \r\n-2- \r\n \r\n ALBANY STATE UNIVERSITY STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - (GAAP BASIS) \r\nYEAR ENDED JUNE 30, 2015 \r\nOPERATING REVENUES \r\nStudent Tuition and Fees (Net of Allowance for Doubtful Accounts) Less: Scholarship Allowances \r\nGrants and Contracts Federal State Other \r\nSales and Services Rents and Royalties Auxiliary Enterprises \r\nResidence Halls Bookstore Food Services Parking/Transportation Health Services Intercollegiate Athletics Other Organizations Other Operating Revenues \r\nTotal Operating Revenues \r\nOPERATING EXPENSES \r\nSalaries Faculty Staff \r\nEmployee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation \r\nTotal Operating Expenses \r\nOperating Loss \r\nNONOPERATING REVENUES (EXPENSES) \r\nState Appropriations Grants and Contracts \r\nFederal Gifts Investment Income (Endowments, Auxiliary and Other) Interest Expense (Capital Assets) Other Nonoperating Expenses \r\nNet Nonoperating Revenues \r\nLoss Before Other Revenues, Expenses, Gains, or Losses \r\nCapital Grants and Gifts State Other \r\nTotal Other Revenues, Expenses, Gains or Losses \r\nDecrease in Net Position \r\nNet Position - Beginning of Year, Restated \r\nNet Position - End of Year \r\n \r\nEXHIBIT \"B\" \r\n \r\n$ \r\n \r\n22,135,590 \r\n \r\n-6,862,225 \r\n \r\n8,242,820 292,280 65,948 393,810 41,577 \r\n \r\n7,826,121 131,828 \r\n4,303,259 144,458 353,308 \r\n1,330,945 240,161 367,734 \r\n \r\n39,007,614 \r\n \r\n11,483,840 19,629,240 \r\n9,490,557 437,337 385,991 \r\n7,147,588 2,984,572 13,687,276 6,785,203 \r\n72,031,604 \r\n-33,023,990 \r\n \r\n19,326,043 \r\n12,240,867 316,789 65,361 \r\n-3,542,325 -92,509 \r\n28,314,226 \r\n-4,709,764 \r\n769,006 63,630 \r\n832,636 \r\n-3,877,128 \r\n52,912,191 \r\n \r\n$ \r\n \r\n49,035,063 \r\n \r\n-3- \r\n \r\n ALBANY STATE UNIVERSITY STATEMENT OF CASH FLOWS - (GAAP BASIS) \r\nYEAR ENDED JUNE 30, 2015 \r\nCASH FLOWS FROM OPERATING ACTIVITIES Tuition and Fees Grants and Contracts Sales and Services Payments to Suppliers Payments to Employees Payments for Scholarships and Fellowships Loans Issued to Students and Employees Auxiliary Enterprise Charges: Residence Halls Bookstore Food Services Parking/Transportation Health Services Intercollegiate Athletics Other Organizations Other Receipts \r\nNet Cash Used by Operating Activities \r\nCASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES State Appropriations Agency Funds Transactions Gifts and Grants Received for Other than Capital Purposes \r\nNet Cash Flows Provided by Noncapital Financing Activities \r\nCASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital Grants and Gifts Received Purchases of Capital Assets Principal Paid on Capital Debt and Leases Interest Paid on Capital Debt and Leases \r\nNet Cash Used by Capital and Related Financing Activities \r\nCASH FLOWS FROM INVESTING ACTIVITIES Interest on Investments \r\nNet Decrease in Cash \r\nCash and Cash Equivalents - Beginning of Year \r\nCash and Cash Equivalents - End of Year \r\nRECONCILIATION OF OPERATING LOSS TO NET CASH USED BY OPERATING ACTIVITIES: \r\nOperating Loss Adjustments to Reconcile Operating Loss to Net Cash \r\nUsed by Operating Activities Depreciation Change in Assets and Liabilities: Receivables, Net Prepaid Items Notes Receivable, Net Accounts Payable Salaries Payable Advances (Including Tuition and Fees) Other Liabilities Compensated Absences Net Pension Liability Change in Deferred Inflows/Outflows of Resources: Deferred Inflows of Resources Deferred Outflows of Resources \r\nNet Cash Used by Operating Activities \r\n-4- \r\n \r\nEXHIBIT \"C\" \r\n \r\n$ \r\n \r\n15,248,720 \r\n \r\n8,064,824 \r\n \r\n393,810 \r\n \r\n-29,933,429 \r\n \r\n-29,956,718 \r\n \r\n-6,852,796 \r\n \r\n19,355 \r\n \r\n7,580,831 122,437 \r\n4,194,066 144,457 352,849 \r\n1,325,096 248,190 79,633 \r\n \r\n-28,968,675 \r\n \r\n19,326,043 -184,483 \r\n12,557,655 \r\n31,699,215 \r\n \r\n832,636 -2,080,284 -1,529,616 -3,542,325 \r\n-6,319,589 \r\n \r\n65,361 -3,523,688 8,693,090 \r\n \r\n$ \r\n \r\n5,169,402 \r\n \r\n$ \r\n \r\n-33,023,990 \r\n \r\n6,785,203 \r\n-385,560 41,684 19,355 17,302 35,015 \r\n-1,097,467 -236,059 12,685 \r\n-9,885,603 \r\n8,973,982 -225,222 \r\n \r\n$ \r\n \r\n-28,968,675 \r\n \r\n (This page left intentionally blank) \r\n \r\n ALBANY STATE UNIVERSITY SELECTED FINANCIAL NOTES \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nREPORTING ENTITY Albany State University is one of thirty (30) State supported member institutions of higher education in Georgia which comprise the University System of Georgia, an organizational unit of the State of Georgia. The accompanying financial statements reflect the operations of Albany State University as a separate reporting entity. \r\nThe Board of Regents has constitutional authority to govern, control and manage the University System of Georgia. This authority includes but is not limited to the power to designate management, the ability to significantly influence operations, the authority to control institutions' budgets, the power to determine allotments of State funds to member institutions and the authority to prescribe accounting systems and administrative policies for member institutions. Albany State University does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, Albany State University is considered an organizational unit of the Board of Regents of the University System of Georgia reporting entity for financial reporting purposes because of the significance of its legal, operational, and financial relationships with the Board of Regents as defined in Section 2100 of the Governmental Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial Reporting Standards. \r\nFINANCIAL STATEMENT PREPARATION The financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) as prescribed by the GASB and are presented as required by these standards to provide a comprehensive, entity-wide perspective of the University's assets, deferred outflows, liabilities, deferred inflows, net position, revenues, expenses, changes in net position and cash flows. \r\nBASIS OF ACCOUNTING For financial reporting purposes, the University is considered a special-purpose government engaged only in business-type activities. Accordingly, the University's financial statements have been presented using the economic resources measurement focus and the accrual basis of accounting, except as noted in the preceding paragraph. Under the accrual basis, revenues, are recognized when earned, and expenses are recorded when an obligation has been incurred. All significant intra-University transactions have been eliminated. \r\nNEW ACCOUNTING PRONOUNCEMENTS In fiscal year 2015, the University adopted Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. The provisions of this statement establish accounting and financial reporting standards for pensions that are provided to the employees of state and local governmental employers through pension plans that are administered through trusts. Implementation of this statement requires a restatement to beginning net position. The adoption of this statement has a significant impact on the University's financial statements. \r\nIn fiscal year 2015, the University adopted Governmental Accounting Standards Board (GASB) Statement No. 69, Government Combinations and Disposals of Government Operations. This statement provides specific accounting and financial reporting guidance for combinations in the governmental environment. This statement also requires that disclosures be made by governments about combination arrangements in which they engage and for disposals of government operations. The adoption of this statement does not have a significant impact on the University's financial statements. \r\n \r\n-6- \r\n \r\n ALBANY STATE UNIVERSITY SELECTED FINANCIAL NOTES \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"D\" \r\n \r\nIn fiscal year 2015, the University adopted Governmental Accounting Standards Board (GASB) Statement 71, Pension Transition for Contributions Made Subsequent to the Measurement Date  an amendment of GASB No. 68. The objective of this statement is to improve accounting and financial reporting by addressing an issue in Statement No. 68, Accounting and Financial Reporting for Pensions, concerning transition provisions related to certain pension contributions made to defined benefit pension plans prior to implementation of statement. This statement amends paragraph 137 of Statement No. 68 which limited recognition of pension-related deferred outflows of resources and deferred inflows of resources at the transition to circumstances in which it is practical to determine the amounts of all deferred outflows of resources and deferred inflows of resources related to pensions. Adoption of this statement in conjunction with GASB 68 had a significant impact on the University's financial statements. \r\nPENSIONS 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 fiduciary net position of the Teachers' Retirement System of Georgia (TRS) and Employees' Retirement System (ERS), additions to/deductions for TRS's and ERS's fiduciary net position have been determined on the same basis as they are reported by TRS and ERS. For this purpose, benefit payments (including refunds on employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\nCAPITAL LIABILITY RESERVE FUND In fiscal year 2014, the Capital Liability Reserve Fund (Fund) was established by the Board of Regents to protect the fiscal integrity of the University System of Georgia (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. The Fund is financed by all USG institutions participating in the PPV program. 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 cooperative organization. The Fund will continue as long as the Board of Regents has rental obligations under the PPV program and at the conclusion of the program, funds will be returned to the University. Albany State University's contribution to the fund as of June 30, 2015 was $507,323. \r\nNET POSITION The University's net position is classified as follows: \r\nNet Investment in Capital Assets: This represents the University's total investment in capital assets, net of outstanding debt obligations and deferred inflows, or resources 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 the net investment in capital assets. \r\nRestricted - nonexpendable: Nonexpendable restricted net position consist of endowment 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. The University may accumulate as much of the annual net income of an institutional fund as is prudent under the standard established by Code Section 44-15-7 of Annotated Code of Georgia. \r\nRestricted - expendable: Restricted expendable net position includes resources in which the University is legally or contractually obligated to spend resources in accordance with restrictions imposed by external third parties. \r\n-7- \r\n \r\n ALBANY STATE UNIVERSITY SELECTED FINANCIAL NOTES \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"D\" \r\n \r\nUnrestricted: Unrestricted Net Position is the net amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the categories above. Included in the net deficit reported is the University's Net Pension liability of $23 million which is required for financial reporting and will not impact the economics of the plan or affect the budgets or cash flows. \r\nRESTATEMENT NOTE DISCLOSURE For fiscal year 2015, the University made prior period adjustments due to the adoption of GASB Statement No. 68, Accounting and Financial Reporting for Pensions, and GASB Statement No. 71 Pension Transition for Contributions Made Subsequent to the Measurement Date, which requires the restatement of the June 30, 2014, net position. The result is a decrease in Net Position at July 1, 2014 of $30,940,258 of which $33,258,832 is represented in Net Pension Liability and $2,318,574 is represented in deferred outflow. This change is in accordance with generally accepted accounting principles. \r\nNOTE 2: DEPOSITS AND INVESTMENTS \r\nDEPOSITS The custodial credit risk for deposits is the risk that in the event of a bank failure, the University's deposits may not be recovered. Funds belonging to the State of Georgia (and thus the University) 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 Section 50-17-59: \r\n1. Bonds, bills, notes, certificates of indebtedness, or other direct obligations of the United States or of the State of Georgia. \r\n2. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia. \r\n3. 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. \r\n4. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia. \r\n5. 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. \r\n6. Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation. The Treasurer of the Board of Regents is responsible for all details relative to furnishing the required depository protection for all units of the University System of Georgia. \r\nAt June 30, 2015, the carrying value of deposits was -$1,578,589 and the bank balance was $526,272. Of the University's deposits, $276,272 were uninsured. Of these uninsured deposits, $276,272 were collateralized with securities held by the financial institution, by its trust department or agency, but not in the University's name. \r\n \r\n-8- \r\n \r\n ALBANY STATE UNIVERSITY SELECTED FINANCIAL NOTES \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"D\" \r\n \r\nINVESTMENTS At June 30, 2015, the carrying value of the University's investment was $6,706,397, which is materially the same as fair value. These investments were comprised entirely of funds invested in the \r\n \r\nBoard of Regents investment pool as follows: \r\n \r\nInvestment Maturity \r\n \r\nFair \r\n \r\nInvestment Type \r\n \r\nValue \r\n \r\nInvestment Pool \r\n \r\nBoard of Regents \r\n \r\nShort-Term Fund \r\n \r\n$ \r\n \r\n6,706,397 \r\n \r\nThe Board of Regents Investment Pool is not registered with the Securities and Exchange Commission as an investment company. The fair value of investments is determined daily. The pool does not issue shares. Each participant is allocated a pro rata share of each investment at fair value along with a pro rata share of the interest that it earns. Participation in the Board of Regents Investment Pool is voluntary. The Board of Regents Investment Pool is not rated. Additional information on the Board of Regents Investment Pool is disclosed in the audited Financial Statements of the Board of Regents of the University System of Georgia  System Office (oversight unit). This audit can be obtained from the Georgia Department of Audits and Accounts  Education Audit Division or on their web site at http://www.audits.ga.gov. The Board of Regents Short-Term Fund investment pools are reported as Cash and Cash Equivalents in the financial statements of this report. \r\n \r\nNOTE 3: ACCOUNTS RECEIVABLE \r\n \r\nAccounts receivable consisted of the following at June 30, 2015. \r\n \r\nAuxiliary Enterprises and Other Operating Activities Federal Financial Assistance Georgia State Financing and Investment Commission Other \r\n \r\n131,007 1,200,806 \r\n650,202 889,987 \r\n \r\nTotal Accounts Receivable \r\n \r\n$ \r\n \r\n3,667,530 \r\n \r\n-9- \r\n \r\n ALBANY STATE UNIVERSITY SELECTED FINANCIAL NOTES \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 4: CAPITAL ASSETS Following are the changes in the University's capital assets for the year ended June 30, 2015: \r\n \r\nBeginning Balance July 1, 2014 \r\n \r\nCapital Assets, Not Being Depreciated: Land Construction Work-In-Progress \r\n \r\n$ \r\n \r\n2,922,366 \r\n \r\n1,687,478 $ \r\n \r\nTotal Capital Assets, Not Being Depreciated \r\n \r\n4,609,844 \r\n \r\nCapital Assets, Being Depreciated: Infrastructure Building and Building Improvements Facilities and Other Improvements Equipment Capital Leases Library Collections Capitalized Collections \r\n \r\n14,112,338 117,664,413 \r\n7,049,912 11,451,741 78,168,952 \r\n6,164,677 50,000 \r\n \r\nAdditions \r\n \r\nReductions \r\n \r\nEnding Balance June 30, 2015 \r\n \r\n$ 793,634 \r\n793,634 \r\n \r\n0$ \r\n \r\n2,922,366 \r\n \r\n2,481,112 \r\n \r\n0 \r\n \r\n5,403,478 \r\n \r\n1,234,231 99,596 \r\n \r\n165,451 253,244 171,222 \r\n \r\n14,112,338 117,498,962 \r\n7,049,912 12,432,728 78,168,952 \r\n6,093,051 50,000 \r\n \r\nTotal Assets Being Depreciated \r\nLess: Accumulated Depreciation: Infrastructure Building and Building Improvements Facilities and Other Improvements Equipment Capital Leases Library Collections Capitalized Collections \r\n \r\n234,662,033 \r\n4,202,808 54,958,396 \r\n4,015,671 5,763,023 12,257,371 6,064,876 \r\n-427 \r\n \r\n1,333,827 \r\n291,278 2,595,467 \r\n138,343 1,222,229 2,477,255 \r\n60,631 \r\n \r\n589,917 \r\n80,313 240,462 171,222 \r\n \r\n235,405,943 \r\n4,494,086 57,473,550 \r\n4,154,014 6,744,790 14,734,626 5,954,285 \r\n-427 \r\n \r\nTotal Accumulated Depreciation \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\nCapital Assets, Net \r\n \r\n$ \r\n \r\n87,261,718 147,400,315 152,010,159 $ \r\n \r\n6,785,203 -5,451,376 -4,657,742 $ \r\n \r\n491,997 97,920 97,920 $ \r\n \r\n93,554,924 141,851,019 147,254,497 \r\n \r\nA comparison of depreciation expense for the last three fiscal years is as follows: \r\n \r\nFiscal Year \r\n2015 2014 2013 \r\n \r\nDepreciation Expense \r\n \r\n$ \r\n \r\n6,785,203 \r\n \r\n$ \r\n \r\n6,622,647 \r\n \r\n$ \r\n \r\n6,491,911 \r\n \r\n- 10 - \r\n \r\n ALBANY STATE UNIVERSITY SELECTED FINANCIAL NOTES \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 5: ADVANCES Advances consisted of the following at June 30, 2015. \r\n \r\nPrepaid Tuition and Fees Other Advances \r\n \r\n$ \r\n \r\n542,959 \r\n \r\n698,795 \r\n \r\nTotal Advances \r\n \r\n$ \r\n \r\nNOTE 6: LONG-TERM LIABILITIES \r\n \r\n1,241,754 \r\n \r\nThe University's Long-Term liability activity for the year ended June 30, 2015 was as follows: \r\n \r\nBeginning Balance July 1, 2014 (Restated) \r\n \r\nAdditions \r\n \r\nReductions \r\n \r\nEnding Balance June 30, 2015 \r\n \r\nCurrent Portion \r\n \r\nLeases Lease Obligations \r\n \r\n$ 75,689,881 $ \r\n \r\n0 $ 1,529,616 $ 74,160,265 $ 1,668,946 \r\n \r\nOther Liabilities Compensated Absences Net Pension Liability \r\n \r\n1,776,739 33,258,832 \r\n \r\n1,198,392 \r\n \r\n1,185,707 9,885,603 \r\n \r\n1,789,424 23,373,229 \r\n \r\n827,489 \r\n \r\nTotal \r\n \r\n35,035,571 \r\n \r\n1,198,392 \r\n \r\n11,071,310 \r\n \r\n25,162,653 \r\n \r\nTotal Long-Term Obligations \r\n \r\n$ 110,725,452 $ 1,198,392 $ 12,600,926 $ 99,322,918 $ \r\n \r\nNOTE 7: NET POSITION \r\n \r\nChanges in Net Position for the year ended June 30, 2015 are as follows: \r\n \r\n827,489 2,496,435 \r\n \r\nBeginning Balance July 1, 2014 (Restated) \r\n \r\nAdditions \r\n \r\nReductions \r\n \r\nEnding Balance June 30, 2015 \r\n \r\nNet Investment in Capital Assets Restricted Net Position Unrestricted Net Position Total Net Position \r\n \r\n$ \r\n \r\n76,320,278 $ \r\n \r\n399,790 \r\n \r\n-23,807,877 \r\n \r\n$ \r\n \r\n52,912,191 $ \r\n \r\n1,333,827 $ 20,841,915 50,947,395 73,123,137 $ \r\n \r\n4,559,873 $ 20,893,039 51,547,353 77,000,265 $ \r\n \r\n73,094,232 348,666 \r\n-24,407,835 49,035,063 \r\n \r\n- 11 - \r\n \r\n ALBANY STATE UNIVERSITY SELECTED FINANCIAL NOTES \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"D\" \r\n \r\nThe amounts within each category at June 30, 2015 were as follows: \r\n \r\nNet Investment in Capital Assets \r\n \r\n$ \r\n \r\n73,094,232 \r\n \r\nRestricted for Expendable Organized Activities Federal Loans \r\n \r\n-43,178 391,844 \r\n \r\nTotal Expendable \r\n \r\n348,666 \r\n \r\nUnrestricted R \u0026 R Reserve Reserve for Encumbrances Other Unrestricted \r\n \r\n2,598,834 520,278 \r\n-27,526,947 \r\n \r\nTotal Unrestricted \r\n \r\n-24,407,835 \r\n \r\nTOTAL NET POSITION \r\nNOTE 8: LEASE OBLIGATIONS \r\n \r\n$ \r\n \r\n49,035,063 \r\n \r\nAlbany State University is obligated under various operating leases for the use of equipment, and also is obligated under capital leases and installment purchase agreements for the acquisition of real property and equipment. \r\n \r\nCAPITAL LEASES Capital leases are generally payable in installments ranging from monthly to annually and have terms expiring in various years between 2034 and 2040. Expenses for fiscal year 2015 were $5,429,982 of which $3,542,325 represented interest and $358,041 represented executory costs. Total principal paid on capital leases was $1,529,616 for the fiscal year ended June 30, 2015. Interest rates range from 3.25 percent to 5.5 percent. The following is a summary of the carrying values of assets held under capital lease at June 30, 2015: \r\n \r\nDescription Buildings - PPV \r\n \r\nNet Capital Assets \r\n \r\nOutstanding \r\n \r\nHeld Under \r\n \r\nBalances per \r\n \r\nAccumulated \r\n \r\nCapital Lease \r\n \r\nLease Schedules \r\n \r\nGross Amount \r\n \r\nDepreciation \r\n \r\nat June 30, 2015 at June 30, 2015 \r\n \r\n(+) \r\n \r\n(-) \r\n \r\n(=) \r\n \r\n$ \r\n \r\n78,168,952 $ 14,734,626 $ 63,434,326 $ \r\n \r\n74,160,265 \r\n \r\nCertain 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. \r\n \r\n- 12 - \r\n \r\n ALBANY STATE UNIVERSITY SELECTED FINANCIAL NOTES \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"D\" \r\n \r\nThe following capital lease schedule lists the pertinent information for each lease including the building name, lessor, total principal amount, lease term, lease begin date, lease end date, and remaining long-term debt as of June 30, 2015. \r\n \r\nCAPITAL LEASE SCHEDULE \r\n \r\nDescription \r\n \r\nLessor (1) \r\n \r\nOriginal Principal Lease Term Begin Date \r\n \r\nPPV - Phase 1 H1 - H4 PPV - Phase 2 H5 - H6 PPV - Phase 2 Student Center \r\n \r\nASU Foundation $ ASU Foundation ASU Foundation \r\n \r\n32,195,313 25,581,599 17,572,962 \r\n \r\n28 Years 30 Years 30 Years \r\n \r\n8/2006 7/2010 7/2010 \r\n \r\nTotal Leases \r\n \r\n$ \r\n \r\n75,349,874 \r\n \r\n(1) All of Albany State University's capital leases are with related entities. \r\n \r\nEnd Date \r\n \r\nOutstanding Principal Balance \r\nBalance at \r\nJune 30, 2015 \r\n \r\n7/2034 $ 7/2040 7/2040 \r\n \r\n31,148,294 25,496,019 17,515,952 \r\n \r\n$ \r\n \r\n74,160,265 \r\n \r\nOPERATING LEASES Albany State University's noncancellable operating leases provide for renewal options for periods from one to three years at their fair rental value at the time of renewal. All agreements are cancelable if the State of Georgia does not provide adequate funding, but that is considered a remote possibility. In the normal course of business, operating leases are generally renewed or replaced by other leases. Operating leases are generally payable on a monthly basis. Examples of property under operating leases are copiers, other small business equipment, and buildings. \r\nFUTURE COMMITMENTS Future commitments for capital leases (which here and on the Statement of Net Position includes other installment purchase agreements) and for noncancellable operating leases having remaining terms in excess of one year as of June 30, 2015, were as follows: \r\n \r\nCapital Leases \r\n \r\nOperating Leases \r\n \r\nYear Ending June 30: 2016 2017 2018 2019 2020 2021 - 2025 2026 - 2030 2031 - 2035 2036 - 2040 \r\n \r\n$ \r\n \r\n5,504,811 $ \r\n \r\n5,586,492 \r\n \r\n5,664,365 \r\n \r\n5,749,915 \r\n \r\n5,833,671 \r\n \r\n30,085,729 \r\n \r\n30,655,136 \r\n \r\n28,291,029 \r\n \r\n14,088,105 \r\n \r\n21,360 21,360 21,360 12,460 \r\n \r\nTotal Minimum Lease Payments \r\n \r\n131,459,253 $ \r\n \r\n76,540 \r\n \r\nLess: Interest Less: Executory Costs (if paid) \r\n \r\n45,940,808 11,358,180 \r\n \r\nPrincipal Outstanding \r\n \r\n$ 74,160,265 \r\n \r\n- 13 - \r\n \r\n ALBANY STATE UNIVERSITY SELECTED FINANCIAL NOTES \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"D\" \r\n \r\nAlbany State University fiscal year 2015 expense for rental of real property and equipment under operating leases was $8,900. \r\nNOTE 9: RETIREMENT PLANS \r\nAlbany State University 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. \r\nThe significant retirement plans that Albany State University 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. \r\nTeachers' Retirement System of Georgia and Employees' Retirement System of Georgia \r\nGeneral Information about the Teachers' Retirement System \r\nPlan description: All teachers of the University as defined in  47-3-60 of the Official Code of Georgia Annotated (O.C.G.A.) is 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 www.trsga.com/publications. \r\nBenefits 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. \r\nContributions: 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 2015. The University contractually required contribution rate for the year ended June 30, 2015 was 13.15% of annual University payroll. University contributions to TRS were $2,543,796 for the reporting period (fiscal year ended June 30, 2015), and $2,310,968 for the measurement period (fiscal year ended June 30, 2014). 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. \r\n \r\n- 14 - \r\n \r\n ALBANY STATE UNIVERSITY SELECTED FINANCIAL NOTES \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"D\" \r\n \r\nGeneral Information about the Employees' Retirement System \r\nPlan 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 www.ers.ga.gov/formspubs/formspubs. \r\nBenefits provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. \r\nUnder 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. \r\nRetirement 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, post-retirement 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. \r\nContributions: 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 University's contractually required contribution rate, actuarially determined annually, for the year ended June 30, 2015 was 21.96% of annual covered payroll for old and new plan members and 18.87% for GSEPS members. The University's contributions to ERS totaled $0 for the reporting period (fiscal year ended June 30, 2015) and $7,606 for the measurement period (fiscal year ended June 30, 2014). 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. \r\nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \r\nAt June 30, 2015, the University reported a liability for its proportionate share of the net pension liability for TRS and ERS totaling $23,373,229. The net pension liability was measured as of June 30, 2014. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2013. An expected total pension liability as of June 30, 2014 was determined using standard roll-forward techniques. The University's proportion of the net pension liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2014. At June 30 2014, \r\n- 15 - \r\n \r\n ALBANY STATE UNIVERSITY SELECTED FINANCIAL NOTES \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"D\" \r\n \r\nthe University's TRS proportion was 0.184464%, which was a decrease of 0.005770% from its proportion measured as of June 30, 2013. At June 30 2014, the University's ERS proportion was 0.001830%, which was a decrease of 0.000453% from its proportion measured as of June 30, 2013. \r\n \r\nFor the year ended June 30, 2015, the University recognized pension expense of $1,411,217 for TRS and -$4,264 for ERS. At June 30, 2015, the University reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nTRS \r\n \r\nDeferred Outflow of Resources \r\n \r\nDeferred Inflows of Resources \r\n \r\nERS \r\nDeferred Inflows of Resources \r\n \r\nNet difference between projected and actual earnings on pension plan investments \r\n \r\n$ 8,124,475 \r\n \r\n$ \r\n \r\n16,752 \r\n \r\nChanges in proportion and differences between University contributions and proportionate share of contributions \r\n \r\n819,227 \r\n \r\n13,528 \r\n \r\nUniversity contributions subsequent to the measurement date $ \r\n \r\n2,543,796 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n2,543,796 $ \r\n \r\n8,943,702 \r\n \r\n$ \r\n \r\n30,280 \r\n \r\nUniversity contributions subsequent to the measurement date of $2,543,796 for TRS and $0 for ERS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nTRS \r\n \r\nERS \r\n \r\n2016 2017 2018 2019 2020 \r\n \r\n$ -2,217,306 $ -12,643 $ -2,217,306 $ -9,261 $ -2,217,306 $ -4,188 $ -2,217,308 $ -4,188 $ -74,476 \r\n \r\nActuarial assumptions: The total pension liability as of June 30, 2014 was determined by an actuarial valuation as of June 30, 2013 using the following actuarial assumptions, applied to all periods included in the measurement: \r\nTeachers' Retirement System: \r\n \r\nInflation Salary increases Investment rate of return \r\n \r\n3.00% 3.75  7.00% \r\n7.50% \r\n \r\naverage, including inflation net of pension plan investment expense \r\nincluding inflation \r\n \r\n- 16 - \r\n \r\n ALBANY STATE UNIVERSITY SELECTED FINANCIAL NOTES \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"D\" \r\n \r\nMortality rates were based on the RP-2000 Combined Mortality Table for Males or Females set back two years for males and set back three years for females. \r\nThe actuarial assumptions used in the June 30, 2013 valuation were based on the results of an actuarial experience study for the period July 1, 2004  June 30, 2009. \r\nEmployees' Retirement System \r\n \r\nInflation Salary increases Investment rate of return \r\n \r\n3.00% 5.45  9.25% \r\n7.50% \r\n \r\naverage, including inflation net of pension plan investment expense \r\nincluding inflation \r\n \r\nMortality rates were based on the RP-2000 Combined Mortality Table for the periods after service retirement, for dependent beneficiaries, and for deaths in active service, and the RP-2000 Disabled Mortality Table set back eleven years for males for the period after disability retirement. \r\n \r\nThe actuarial assumptions used in the June 30, 2013 valuation were based on the results of an actuarial experience study for the period July 1, 2004  June 30, 2009. \r\n \r\nThe long-term expected rate of return on TRS and ERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of pension plan investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset Class \r\n \r\nTarget Allocation \r\n \r\nLong-Term Expected Real Rate of Return* \r\n \r\nFixed income Domestic large equities Domestic mid equities Domestic small equities International developed market equities International emerging market equities \r\n \r\n30.00% 39.70% \r\n3.70% 1.60% 18.90% 6.10% \r\n \r\n3.00% 6.50% 10.00% 13.00% 6.50% 11.00% \r\n \r\n100.00% \r\n* Rates shown are net of the 3.00% assumed rate of inflation \r\nDiscount rate: The discount rate used to measure the total TRS and ERS pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and State of Georgia contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS and ERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \r\n \r\n- 17 - \r\n \r\n ALBANY STATE UNIVERSITY SELECTED FINANCIAL NOTES \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"D\" \r\n \r\nSensitivity of the University's proportionate share of the net pension liability to changes in the discount rate: The following presents the University's proportionate share of the net pension liability calculated using the discount rate of 7.50%, as well as what the University's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate: \r\n \r\nTeachers' Retirement System: \r\nUniversity's proportionate share of the net pension liability \r\n \r\n1% Decrease (6.50%) \r\n \r\nCurrent Discount Rate \r\n(7.50%) \r\n \r\n1% Increase (8.50%) \r\n \r\n$ 42,947,239 $ 23,304,593 $ 7,129,283 \r\n \r\nEmployees' Retirement System: \r\nUniversity's proportionate share of the net pension liability \r\n \r\n1% Decrease (6.50%) \r\n \r\nCurrent discount rate \r\n(7.50%) \r\n \r\n1% Increase (8.50%) \r\n \r\n$ 100,085 $ \r\n \r\n68,636 $ \r\n \r\n41,866 \r\n \r\nPension 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 www.trsga.com/publications and www.ers.ga.gov/formspubs/formspubs, respectively. \r\n \r\nRegents Retirement Plan \r\n \r\nPlan 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. 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 of Regents. 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. \r\n \r\nFunding Policy Albany State University makes monthly employer contributions for the Regents Retirement Plan at rates adopted by the Teachers Retirement System of Georgia Board of Trustees in accordance with State statute and as advised by their independent actuary. For fiscal year 2015, the employer contribution was 9.24% for the participating employee's earnable compensation. Employees contribute 6% of their earnable compensation. Amounts attributable to all plan contributions are fully vested and non-forfeitable at all times. \r\n \r\nAlbany State University and the covered employees made the required contributions of $756,751 (9.24%) and $491,023 (6%), respectively. \r\n \r\nVALIC, Fidelity, and TIAA-CREF have separately issued financial reports which may be obtained through their respective corporate offices. \r\n \r\n- 18 - \r\n \r\n ALBANY STATE UNIVERSITY SELECTED FINANCIAL NOTES \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"D\" \r\n \r\nGeorgia Defined Contribution Plan \r\nPlan Description Albany State University participates in the Georgia Defined Contribution Plan (GDCP) which is a singleemployer defined contribution plan established by the General Assembly of Georgia for the purpose of providing retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees of the Employees' Retirement System of Georgia. \r\nBenefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board of Trustees. If a member has less than $3,500 credited to his/her account, the Board of Trustees has the option of requiring a lump sum distribution to the member in lieu of making periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary. Benefit provisions are established by State statute. \r\nContributions Member contributions are seven and one-half percent (7.5%) of gross salary. There are no employer contributions. Contribution rates are established by State statute. Earnings are credited to each member's account in a manner established by the Board of Trustees. Upon termination of employment, the amount of the member's account is refundable upon request by the member. \r\nTotal contributions made by employees during fiscal year 2015 amounted to $60,266 which represents 7.5% of covered payroll. These contributions met the requirements of the plan. \r\nThe Georgia Defined Contribution Plan issues a financial report each fiscal year, which may be obtained from the ERS offices. \r\nNOTE 10: RISK MANAGEMENT \r\nThe University System of Georgia offers its employees and retirees access to four different healthcare plan options. For the University System of Georgia's Plan Year 2015, the following healthcare plan options were available: \r\n BlueChoice HMO  Comprehensive Care Plan  Consumer Choice HSA Plan  Kaiser Permanente HMO \r\nAlbany State University and participating employees and retirees pay premiums to the healthcare plan options to access benefits coverage. The respective health plan options are included in the financial statements of the Board of Regents of the University System of Georgia  University System Office. All units of the University System of Georgia share the risk of loss for claims associated with the selfinsured plans; including the BlueChoice HMO, Comprehensive Care Plan and Consumer Choice HSA Plan. \r\nThe reserves for these plans are considered to be a self-sustaining risk fund. The Board of Regents has contracted with Blue Cross Blue Shield of Georgia to serve as the claims administrator for the selfinsured healthcare plans. In addition to the self-insured healthcare plan options offered to the employees of the University System of Georgia, a fully insured HMO healthcare plan option is also offered to System employees through Kaiser Permanente. \r\n- 19 - \r\n \r\n ALBANY STATE UNIVERSITY SELECTED FINANCIAL NOTES \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"D\" \r\n \r\nThe Department of Administrative Services (DOAS) has the responsibility for the State of Georgia of making and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS processes claims for risk of loss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' indemnification. Limited amounts of commercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. Albany State University, as an organizational unit of the Board of Regents of the University System of Georgia, is part of the State of Georgia reporting entity, and as such, is covered by the State of Georgia risk management program administered by DOAS. Premiums for the risk management program are charged to the various state organizations by DOAS to provide claims servicing and claims payment. \r\nA 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 Official Code of Georgia Annotated Section 45-9-1. \r\nThe 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. \r\nNOTE 11: CONTINGENCIES \r\nAmounts 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 Albany State University expects such amounts, if any, to be immaterial to its overall financial positions. \r\nLitigation, claims and assessments filed against Albany State University (an organizational unit of the Board of Regents of the University System of Georgia), 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, 2015. \r\nNOTE 12: POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS \r\nPursuant to the general powers conferred by the Official Code of Georgia Annotated Section 20-3-31, the Board of Regents of the University System of Georgia has established group health and life insurance programs for regular employees of the University System of Georgia. It is the policy of the Board of Regents to permit employees of the University System of Georgia eligible for retirement or that become permanently and totally disabled to continue as members of the group health and life insurance programs. The policies of the Board of Regents of the University System of Georgia define and delineate who is eligible for these post-employment health and life insurance benefits. Organizational units of the Board of Regents of the University System of Georgia pay the employer portion for group insurance for affected individuals. With regard to life insurance, the employer covers the total 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 employee. \r\n \r\n- 20 - \r\n \r\n ALBANY STATE UNIVERSITY SELECTED FINANCIAL NOTES \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"D\" \r\n \r\nThe Board of Regents Retiree Health Benefit Plan is a single employer defined benefit plan. Financial statements and required supplementary information for the Plan are included in the publicly available Consolidated Annual Financial Report of the University System of Georgia. The University pays the employer portion of health insurance for its eligible retirees based on rates that are established annually by the Board of Regents for the upcoming plan year. For the 2015 plan year, the employer rate was between 70-75% of the total health insurance cost for eligible retirees and the retiree rate was between 25-30%. \r\nAs of June 30, 2015, there were 203 employees who had retired or were disabled that were receiving these post-employment health and life insurance benefits. For the year ended June 30, 2015, Albany State University recognized as incurred $1,200,063 of expenditures, which was net of $405,628 of participant contributions. \r\nNOTE 13: SUBSEQUENT EVENTS \r\nOn November 10, 2015, the University System of Georgia voted to consolidate Albany State University and Darton State College. The consolidation is expected to occur during fiscal year 2017. The newly formed institution will retain the name of Albany State University. \r\nNOTE 14: AFFILIATED ORGANIZATIONS \r\nThe Albany State University Foundation Inc., is a legally separate, tax exempt organization whose activities primarily support Albany State University. This affiliated organization is considered a potential component unit of the State of Georgia in accordance with GASB Statement No. 61, The Financial Reporting Entity: Omnibus an amendment of GASB Statements No. 14 and No. 34. Therefore, the financial statements of this affiliated organization is not included in these financial statements. Copies of the financial statements for the affiliated organization may be obtained from Albany State University. \r\n \r\n- 21 - \r\n \r\n (This page left intentionally blank) \r\n \r\n SUPPLEMENTARY INFORMATION - 22 - \r\n \r\n ALBANY STATE UNIVERSITY BALANCE SHEET (STATUTORY BASIS) \r\nBUDGET FUND JUNE 30, 2015 \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable \r\nFederal Financial Assistance Other Prepaid Expenditures \r\nTotal Assets \r\nLIABILITIES AND FUND EQUITY \r\nLiabilities Accrued Payroll Encumbrances Payable Accounts Payable Deferred Revenue \r\nTotal Liabilities \r\nFund Balances Reserved Department Sales and Services Indirect Cost Recoveries Technology Fees Uncollectible Accounts Receivable Tuition Carry-Over Unreserved Surplus \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\nSCHEDULE \"1\" \r\n \r\n$ \r\n \r\n939,129.24 \r\n \r\n1,200,805.89 2,096,138.60 \r\n32,215.73 \r\n \r\n$ \r\n \r\n4,268,289.46 \r\n \r\n$ \r\n \r\n108,213.75 \r\n \r\n454,038.17 \r\n \r\n66,525.75 \r\n \r\n1,190,576.15 \r\n \r\n1,819,353.82 \r\n \r\n281,112.40 1,410,887.01 \r\n239,389.47 166,809.47 333,145.14 \r\n17,592.15 \r\n2,448,935.64 \r\n \r\n$ \r\n \r\n4,268,289.46 \r\n \r\nStatutory Basis financial information was 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. \r\n- 23 - \r\n \r\n ALBANY STATE UNIVERSITY SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT (STATUTORY BASIS) \r\nBUDGET FUND YEAR ENDED JUNE 30, 2015 \r\n \r\nSCHEDULE \"2\" \r\n \r\nREVENUES \r\nState Appropriation State General Funds \r\nOther Funds \r\nTotal Revenues \r\nCARRY-OVER FROM PRIOR YEARS \r\nTransfers from Reserved Fund Balance \r\nTotal Funds Available \r\nEXPENDITURES \r\nTeaching Excess of Funds Available over Expenditures \r\nFUND BALANCE JULY 1 \r\nReserved Unreserved \r\nADJUSTMENTS \r\nPrior Year Payables/Expenditures Unreserved Fund Balance (Surplus) Returned \r\nto Board of Regents - University System Office Year Ended June 30, 2014 \r\nPrior Year Reserved Fund Balance Included in Funds Available FUND BALANCE JUNE 30 \r\nSUMMARY OF FUND BALANCE \r\nReserved Department Sales and Services Indirect Cost Recoveries Technology Fees Uncollectible Accounts Receivable Tuition Carry-Over \r\nTotal Reserved \r\nUnreserved Surplus \r\nTotal Fund Balance \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\nVARIANCE FAVORABLE (UNFAVORABLE) \r\n \r\n$ \r\n \r\n19,482,197.00 $ \r\n \r\n19,482,197.00 $ \r\n \r\n0.00 \r\n \r\n47,014,560.00 \r\n \r\n42,568,781.34 \r\n \r\n-4,445,778.66 \r\n \r\n66,496,757.00 \r\n \r\n62,050,978.34 \r\n \r\n-4,445,778.66 \r\n \r\n0.00 66,496,757.00 \r\n \r\n2,267,783.92 64,318,762.26 \r\n \r\n2,267,783.92 -2,177,994.74 \r\n \r\n66,496,757.00 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n62,048,710.00 2,270,052.26 $ \r\n \r\n4,448,047.00 2,270,052.26 \r\n \r\n2,430,198.77 156,154.06 \r\n \r\n16,468.53 \r\n \r\n-156,154.06 -2,267,783.92 \r\n \r\n$ \r\n \r\n2,448,935.64 \r\n \r\n$ \r\n \r\n281,112.40 \r\n \r\n1,410,887.01 \r\n \r\n239,389.47 \r\n \r\n166,809.47 \r\n \r\n333,145.14 \r\n \r\n2,431,343.49 \r\n \r\n17,592.15 \r\n \r\n$ \r\n \r\n2,448,935.64 \r\n \r\nStatutory Basis financial information was 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. \r\n- 24 - \r\n \r\n ALBANY STATE UNIVERSITY STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE \r\n(STATUTORY BASIS) BUDGET FUND YEAR ENDED JUNE 30, 2015 \r\n \r\nTeaching State Appropriation State General Funds Other Funds \r\nTotal Operating Activity \r\n \r\nOriginal Appropriation \r\n \r\nAmended Appropriation \r\n \r\nFinal Budget \r\n \r\nCurrent Year Revenues \r\n \r\n$ \r\n \r\n18,482,197.00 $ \r\n \r\n18,482,197.00 $ \r\n \r\n19,482,197.00 $ 19,482,197.00 \r\n \r\n48,289,582.00 \r\n \r\n48,289,582.00 \r\n \r\n47,014,560.00 \r\n \r\n42,568,781.34 \r\n \r\n$ \r\n \r\n66,771,779.00 $ \r\n \r\n66,771,779.00 $ \r\n \r\n66,496,757.00 $ 62,050,978.34 \r\n \r\nStatutory Basis financial information was 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. \r\n- 25 - \r\n \r\n SCHEDULE \"3\" \r\n \r\nFunds Available Compared to Budget \r\n \r\nPrior Year \r\n \r\nAdjustments and \r\n \r\nTotal \r\n \r\nCarry-Over \r\n \r\nProgram Transfers \r\n \r\nFunds Available \r\n \r\nVariance Negative \r\n \r\nExpenditures Compared to Budget \r\n \r\nVariance \r\n \r\nActual \r\n \r\nPositive \r\n \r\nExcess of Funds Available \r\nOver Expenditures \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n2,267,783.92 \r\n \r\n0.00 $ 0.00 \r\n \r\n19,482,197.00 $ 44,836,565.26 \r\n \r\n0.00 $ -2,177,994.74 \r\n \r\n19,481,422.60 $ 42,567,287.40 \r\n \r\n774.40 $ 4,447,272.60 \r\n \r\n774.40 2,269,277.86 \r\n \r\n$ 2,267,783.92 $ \r\n \r\n0.00 $ 64,318,762.26 $ \r\n \r\n-2,177,994.74 $ 62,048,710.00 $ \r\n \r\n4,448,047.00 $ \r\n \r\n2,270,052.26 \r\n \r\n- 26 - \r\n \r\n ALBANY STATE UNIVERSITY STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE \r\n(STATUTORY BASIS) BUDGET FUND YEAR ENDED JUNE 30, 2015 \r\n \r\nTeaching State Appropriation State General Funds Other Funds \r\nTotal Teaching \r\nPrior Year Reserves Not Available for Expenditure Uncollectible Accounts Receivable \r\n \r\nBeginning Fund Balance July 1 \r\n \r\nFund Balance Carried Over from \r\nPrior Period as Funds Available \r\n \r\nReturn of Fiscal Year 2014 \r\nSurplus \r\n \r\nPrior Period Adjustments \r\n \r\n$ \r\n \r\n156,154.06 $ \r\n \r\n0.00 $ \r\n \r\n-156,154.06 $ \r\n \r\n2,267,783.92 \r\n \r\n-2,267,783.92 \r\n \r\n0.00 \r\n \r\n2,423,937.98 \r\n \r\n-2,267,783.92 \r\n \r\n-156,154.06 \r\n \r\n2,164.94 14,303.59 \r\n16,468.53 \r\n \r\n162,414.85 \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\nBudget Unit Totals \r\n \r\n$ \r\n \r\n2,586,352.83 $ \r\n \r\n-2,267,783.92 $ \r\n \r\n-156,154.06 $ \r\n \r\n16,468.53 \r\n \r\nStatutory Basis financial information was 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. \r\n- 27 - \r\n \r\n SCHEDULE \"4\" \r\n \r\nOther Adjustments \r\n \r\nEarly Return Fiscal Year 2015 \r\nSurplus \r\n \r\nExcess of Funds Available \r\nOver Expenditures \r\n \r\nEnding Fund Balance June 30 \r\n \r\nAnalysis of Ending Fund Balance \r\n \r\nReserved \r\n \r\nSurplus \r\n \r\nTotal \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n-4,394.62 \r\n \r\n-4,394.62 \r\n \r\n0.00 $ 0.00 \r\n0.00 \r\n \r\n774.40 $ 2,269,277.86 \r\n2,270,052.26 \r\n \r\n2,939.34 $ \r\n \r\n0.00 $ \r\n \r\n2,279,186.83 \r\n \r\n2,264,534.02 \r\n \r\n2,282,126.17 \r\n \r\n2,264,534.02 \r\n \r\n2,939.34 $ 14,652.81 \r\n \r\n2,939.34 2,279,186.83 \r\n \r\n17,592.15 \r\n \r\n2,282,126.17 \r\n \r\n4,394.62 \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n166,809.47 \r\n \r\n166,809.47 \r\n \r\n0.00 \r\n \r\n166,809.47 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n2,270,052.26 $ 2,448,935.64 $ 2,431,343.49 $ \r\n \r\n17,592.15 $ 2,448,935.64 \r\n \r\nSummary of Ending Fund Balance Reserved \r\nDepartment Sales and Services Indirect Cost Recoveries Technology Fees Uncollectible Accounts Receivable Tuition Carry-Over Unreserved Surplus \r\nTotal Ending Fund Balance - June 30 \r\n \r\n$ 281,112.40 1,410,887.01 239,389.47 166,809.47 333,145.14 \r\n$ \r\n$ 2,431,343.49 $ \r\n \r\n$ \r\n \r\n281,112.40 \r\n \r\n1,410,887.01 \r\n \r\n239,389.47 \r\n \r\n166,809.47 \r\n \r\n333,145.14 \r\n \r\n17,592.15 \r\n \r\n17,592.15 \r\n \r\n17,592.15 $ 2,448,935.64 \r\n \r\n- 28 - \r\n \r\n ALBANY STATE UNIVERSITY RECONCILIATION OF BUDGET TO GAAP \r\nYEAR ENDED JUNE 30, 2015 \r\n \r\nSCHEDULE \"5\" \r\n \r\nPresented below is a reconciliation of the fund balance of the Budget Fund, as reported on Schedule 1, to Net Position of business-type activities, as reported on Exhibit A. \r\n \r\nTotal Fund Balances - Budget Fund - Non-GAAP Basis (Schedule \"1\") \r\n \r\nAmounts reported for Business-Type Activities in the Statement of Net Position are different because: \r\n \r\nCapital Assets used in Business-Type Activities are not reported in the Budget Fund. \r\n \r\nCertain interfund activity is reported in Business-Type Activities but is not reported in the Budget Fund. \r\n \r\nUncollectible accounts receivable are reported as an asset and reserved fund balance in the Budget Fund and as a contra-asset account on the Statement of Net Position. \r\n \r\nAgency Fund activities are not reported as a component of the Budget Fund. \r\n \r\nAssets \r\n \r\n$ \r\n \r\nLiabilities \r\n \r\nTotal Net Effect of Agency Fund Activity \r\n \r\nAuxiliary Enterprises Fund activities are not reported as a component of the Budget Fund. \r\n \r\nAssets \r\n \r\n$ \r\n \r\nLiabilities \r\n \r\nTotal Net Effect of Auxiliary Enterprises Fund Activity \r\n \r\nLoan Fund activities are not reported as a component of the Budget Fund. \r\n \r\nAssets \r\n \r\n$ \r\n \r\nLiabilities \r\n \r\nTotal Net Effect of Loan Fund Activity \r\n \r\nStudent Activities Fund activities are not reported as a component of the Budget Fund. \r\n \r\nAssets \r\n \r\n$ \r\n \r\nLiabilities \r\n \r\nTotal Net Effect of Student Activity Fund Activity \r\n \r\nThe budgetary basis of accounting implemented by the State of Georgia \r\n \r\nrecognizes expenditures when encumbered. The following adjustments were \r\n \r\nmade to eliminate this activity for reporting on the Statement of Net Position. \r\n \r\nPayables reported in the Budget Fund that are based on encumbrances \r\n \r\nare eliminated for GAAP reporting. \r\n \r\n$ \r\n \r\nPrepaid items reported in the Budget Fund that are based on encumbrances \r\n \r\nare eliminated for GAAP reporting. \r\n \r\nReimbursement from grantors reported as revenues in the Budget Fund that are for \r\n \r\nexpenditures based on encumbrances are deferred for GAAP reporting. \r\n \r\nTotal Net Effect of Encumbrance Activity \r\n \r\nCertain Liabilities are not due and payable in the current period and therefore are not \r\n \r\nreported as liabilities in the Budget Fund. \r\n \r\nCapital Leases Payable \r\n \r\n$ \r\n \r\nCompensated Absences Payable \r\n \r\nContracts Payable \r\n \r\nDeferred Loss on Defined Benefit Pension Plan \r\n \r\nNet Pension Liability \r\n \r\nDeferred Gain on Defined Benefit Pension Plan \r\n \r\nTotal Liabilities \r\n \r\n$ \r\n342,810 -342,810 \r\n3,382,301 -413,089 \r\n393,360 0 \r\n1,528,639 -954 \r\n454,038 -5,600 \r\n-27,030 \r\n-74,160,265 -1,789,424 -47,177 2,543,796 \r\n-23,373,229 -8,973,982 \r\n \r\n2,448,936 147,254,497 \r\n-12,945 -166,809 \r\n0 2,969,212 \r\n393,360 1,527,685 \r\n421,408 \r\n-105,800,281 \r\n \r\nNet Position of Business-Type Activities (Exhibit \"A\") \r\n \r\n$ \r\n \r\n49,035,063 \r\n \r\nThe supplementary information presented on Schedules 1, 2, 3 and 4 was 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. The information was derived from, and relates directly to, the same information used to prepare the financial statements. However, the budgetary statutes and regulations of the State of Georgia require reporting of certain information that is not in accordance with generally accepted accounting principles. Presented on this schedule is a reconciliation of the fund balance of the Budget Fund, as reported on Schedule 1, to Net Position of business-type activities, as reported on Exhibit A. \r\n- 29 - \r\n \r\n (This page left intentionally blank) \r\n \r\n ALBANY STATE UNIVERSITY RECONCILIATION OF SALARIES AND TRAVEL \r\nYEAR ENDED JUNE 30, 2015 \r\n \r\nSCHEDULE \"6\" \r\n \r\nTotals per Annual Supplement \r\nAccruals June 30, 2015 June 30, 2014 \r\nCompensated Absences June 30, 2015 June 30, 2014 \r\nAdjustments Shared Services on Jointly Staffed Personnel Bainbridge State College Coker, Wendell Columbus State University McCrillis, Robert Porter, Rhonda Darton State College Medlin, Dorene Georgia State University Spratt, Bruce University of Georgia Hoke, Cynthia C. \r\nCompensation Included in Other Personal Services \r\nUnidentified Variance \r\n \r\nSALARIES \r\n \r\n$ \r\n \r\n31,081,650 $ \r\n \r\nTRAVEL 385,991 \r\n \r\n116,642 -81,627 \r\n \r\n1,662,262 -1,650,478 \r\n \r\n5,980 -1,950 -7,656 -1,626 4,750 \r\n500 -18,751 \r\n3,384 \r\n \r\n$ \r\n \r\n31,113,080 $ \r\n \r\n385,991 \r\n \r\n- 31 - \r\n \r\n SECTION II ENTITY'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n (This page left intentionally blank) \r\n \r\n ALBANY STATE UNIVERSITY ENTITY'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2015 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported. \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFA-521-11-01 \r\n \r\nPartially Resolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nSPECIAL TESTING AND PROVISIONS Deficiencies in Student Financial Aid Process U.S. Department of Education Student Financial Aid Cluster Finding Control Number: FA-521-11-01 \r\n \r\nBeginning with the 2014-2015 aid year, the Office of Financial Aid completed all Return of Title IV calculations by using the Department of Education's online template as provided at https://faaacess.ed.gov. Due to issues beyond the scope of the Office of Financial Aid, it was determined to be in the best interest of the University to relinquish use of the Ellucian Banner Return of Title IV program until all offices were trained in the use of their specific modules as it relates to the setting up and maintaining of the Return of Title IV module in Banner. The Office of Financial Aid will immediately return to using Banner as the primary method of calculating the Return of Title IV funds. Training from model institutions, namely Clayton State University, will be sought to maximize accuracy of data entry and compliance. To ensure Title IV compliance during the transition period, the U.S. Department of Education's Return to Title IV template will be used to confirm return amounts. The Office of Financial Aid will ensure that Banner Return of Title IV module training and implementation is complete by December 31, 2015. The Office of Financial Aid now calculates all fees internally with regard to the process. This ensures that areas of prior noncompliance are 100% resolved. As part of this year's setup process for the Office of Financial Aid, the office now works with all external departments to ensure that all calendars and dates are properly address and maintained. The Office of Financial Aid has also updated its Return of Title IV policy to address areas of noncompliance. \r\n \r\n (This page left intentionally blank) \r\n \r\n SECTION III FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\n \r\n (This page left intentionally blank) \r\n \r\n ALBANY STATE UNIVERSITY SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\nYEAR ENDED JUNE 30, 2015 \r\n \r\nCOMMUNICATION OF INTERNAL CONTROL DEFICIENCIES \r\n \r\nThe auditor is required to communicate to management and those charged with governance control deficiencies identified during the course of the financial statement audit that, in the auditor's judgment, constitute significant deficiencies or material weakness. \r\nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \r\n \r\nInternal control deficiencies identified during the course of this engagement that were considered to be significant deficiencies and/or material weaknesses are presented below: \r\n \r\nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2015-001 Control Category: Internal Control Impact: \r\n \r\nDeficiencies in Controls over Financial Reporting Financial Reporting Significant Deficiency \r\n \r\nDescription: The University's accounting procedures were insufficient to provide for adequate internal control over the preparation of the financial statements. \r\n \r\nCriteria: A system of internal control over financial reporting does not stop at the general ledger. Management is responsible for implementing a system of internal control over the preparation of the financial statements prepared in accordance with generally accepted accounting principles (GAAP). Additionally, the University is required to annually submit GAAP basis financial statements for inclusion in the State of Georgia's Comprehensive Annual Financial Report and the State of Georgia's Single Audit Report. In addition, the University is required to annually submit budget basis financial statements for inclusion in the State of Georgia's Budgetary Compliance Report. \r\n \r\nCondition: Numerous errors were noted during our review of the University's GAAP basis financial statements, budget basis financial statements and Notes to the Financial Statements. Some of the problems are listed below: \r\n \r\n1. Errors noted in year-end entries caused Employee Benefits to be overstated by $1,872,378, Salaries  Staff to be understated by $1,113,230, Scholarships Allowance to be understated by $464,356 and scholarships and fellowships to be understated by $294,792. \r\n \r\n2. The University understated uncollectible accounts receivable by $1,196,169. \r\n \r\n3. The University could not provide adequate supporting documentation for several items reflected on the Statement of Net Position including $658,419 of accounts receivable, $339,983 of deposits, and $542,959 of advances. \r\n \r\n-1- \r\n \r\n ALBANY STATE UNIVERSITY SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\nYEAR ENDED JUNE 30, 2015 \r\n \r\nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\n4. The University overstated the outstanding balance of a capital lease by $132,608 in the capital lease note disclosure. \r\n \r\n5. The University overstated the bank balance by $250,000 and overstated the bank balances collateralized with securities by $500,000 within the cash note disclosure. \r\n \r\nCause: In discussing this deficiency with the University, management indicated that the cause was due to errors incurred in AFR preparation and in reconciling system details to the General ledger. \r\n \r\nEffect or Potential Effect: Significant misstatements were included in the financial statements presented for review. In addition, the lack of controls and monitoring could impact the reporting of the University's financial position and results of operation. \r\n \r\nRecommendation: The University should review the accounting controls and procedures currently in place, identify weaknesses, and design and implement procedures necessary to strengthen controls over the preparation of the financial statements. \r\n \r\nViews of Responsible Officials and Corrective Action Plans: \r\n \r\nWe concur with this finding. \r\n \r\nWe will strengthen the controls and improve the review to prevent and/or correct errors in a timelier manner at FY2016 Year End Close. \r\n \r\nWe will change our procedures to properly record and report uncollectable accounts receivable, deposits and advances at June 30, 2016. \r\n \r\nWe will work with Board of Regents (BOR) staff to make the capital lease and deposits adjustments needed prior to June 30, 2016. \r\n \r\nWe will update our reconciliation and documentation to fully resolve the discrepancies in accounts receivable and the capital lease prior to June 30, 2016. \r\n \r\nWe met with BOR staff and have been informed of additional training on the Cash Note to be presented at the FY2016 Year End Workshop April 27-28. \r\n \r\nContact Person: \r\n \r\nDorothy Martin, Controller \r\n \r\nTelephone: (229) 430-2804; Fax: (229) 430-4696; \r\n \r\nE-mail: dorothy.martin@asurams.edu \r\n \r\n-2- \r\n \r\n ALBANY STATE UNIVERSITY SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\nYEAR ENDED JUNE 30, 2015 \r\n \r\nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nFA 2015-001 Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: CFDA Number and Title: \r\n \r\nOverpayment of Student Financial Assistance Eligibility Significant Deficiency Nonmaterial Noncompliance U. S. Department of Education 84.SFA Student Financial Assistance Cluster \r\n \r\nDescription: The University's Student Financial Assistance Office improperly determined the financial need of eligible students. \r\n \r\nCriteria: Provisions included in 34 CFR 668 provide general provisions for administering Student Financial Assistance (SFA) programs and 34 CFR 675, 676, 685, and 690 provide eligibility and other related program requirements that are specific to the Federal Work-Study program, Federal Supplemental Educational Opportunity Grant (SEOG), Federal Direct Loan Program, and Federal Pell Grant Program, respectively. \r\n \r\nCondition: A sample of 60 financial assistance files was selected to determine if financial assistance was properly calculated and disbursed to eligible students. The following deficiencies were noted: \r\n \r\n1. One student in the sample received Direct Unsubsidized Student Loans before the Subsidized need-based loan limit was reached. \r\n \r\n2. One student in the sample was in default on loans made under Title IV loan program. Federal regulations (34 CFR 668.32 and 668.35) state that a student is eligible to receive financial assistance under Title IV programs if the student is not in default, and certifies that he or she is not in default, on a loan made under any Title IV, HEA loan program. Over disbursements totaling $2,865.00 were noted. \r\n \r\n3. One student in the sample was not in compliance with the University's published satisfactory academic progress (SAP) policies. Federal regulations (34 CFR 668.32 and 668.34) state that a student is eligible to receive financial assistance under Title IV programs if satisfactory academic progress is maintained. The student did not meet the qualitative requirement of satisfactory academic progress, which resulted in SFA over disbursements totaling $9,932.00. \r\n \r\nQuestioned Cost: Questioned costs of $12,797.00, with likely questioned costs of $831,942.67, were identified for the students who received student financial assistance in excess of their eligible need. \r\n \r\nCause: In discussing these deficiencies with management, they stated that there was inadequate monitoring of processes related to SAP and student financial aid eligibility determination. \r\n \r\nEffect or Potential Effect: The University was not in compliance with Federal regulations concerning awarding of SFA funds to students. \r\n \r\n-3- \r\n \r\n ALBANY STATE UNIVERSITY SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\nYEAR ENDED JUNE 30, 2015 \r\n \r\nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nRecommendation: The University should review its processes and procedures for determining each student's financial aid eligibility. Where vulnerable, the University should develop and/or modify its policies and procedures to ensure that correct amounts will be awarding to students in conformity with financial need requirements. Additionally, the University should develop and implement a monitoring process to ensure that controls are properly implemented. The University should also contact the U.S. Department of Education regarding resolution of this finding. \r\n \r\nViews of Responsible Officials and Corrective Action Plans: \r\n \r\nWe concur with this finding. \r\n \r\nThe University has changed leadership in the Office of Financial Aid. \r\n \r\nAll processes and procedures relative to determining student eligibility will be reviewed and updated to ensure Federal Student Aid compliance. \r\n \r\nThe new leadership will implement a system of internal controls and monitoring. \r\n \r\nThe Office of Financial Aid staff will engage in consultation with the Department of Education, as required, and consistently review the FSA Handbook for guidance on policy and procedures. \r\n \r\nContact Person: Stephanie Lawrence, Director of Financial Aid Telephone: (229) 430-4650; Fax: (229) 430-3936 E-Mail: Stephanie.lawrence@asurams.edu \r\n \r\nFA 2015-002 Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: CFDA Number and Title: \r\n \r\nUndocumented Cost of Attendance Budgets Eligibility Significant Deficiency Nonmaterial Noncompliance U. S. Department of Education 84.SFA Student Financial Assistance Cluster \r\n \r\nDescription: The University's Student Financial Aid Office did not document the procedures used to establish Cost of Attendance budgets. \r\n \r\nCriteria: Provisions included in 34 CFR 668 provide general provisions for administering Student Financial Aid (SFA) programs. \r\n \r\nCondition: Upon review of the University's Cost of Attendance (COA) budgets, it was noted that University personnel could not provide supporting documentation or explanations for the calculation of several components of the COA budgets, including Books, Supplies, Miscellaneous Expenses and Transportation for all students and Room for students living with their parents. In addition, the Undergraduate and Graduate in-state tuition amounts did not agree to the University's published tuition rates. \r\n \r\n-4- \r\n \r\n ALBANY STATE UNIVERSITY SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\nYEAR ENDED JUNE 30, 2015 \r\nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nQuestioned Cost: N/A \r\nCause: In discussing these deficiencies with management, they stated that due to turnover in the SFA Office, the University could not locate documentation for the procedures used in calculating COA budget components or determine if this documentation initially existed. \r\nEffect or Potential Effect: The University was not in compliance with Federal regulations concerning the COA budgets used as the basis for determining SFA eligibility. The COA is the cornerstone of establishing a student's financial need and sets a limit on the total aid a student may receive. If the estimated costs used for components in the COA budget are unreasonable and do not represent average costs for students at the University, a majority of the student population may have been significantly overawarded. \r\nRecommendation: The University should reevaluate the components used in the COA budgets and document that these costs represent average costs for students enrolled at the University. The University should modify its procedures to ensure that any future changes to the COA budgets are reasonable and based on documented average costs for students. The University should also contact the U.S. Department of Education regarding resolution of this finding. \r\nViews of Responsible Officials and Corrective Action Plans: \r\nWe concur with this finding. \r\nThe University has implemented a change in leadership in the Office of Financial Aid. \r\nAll processes and procedures, relative to ensuring reasonable estimated costs used for each component of the Cost of Attendance (COA) budget, will be updated to ensure compliance. \r\nAll documentation used in the COA determination will be stored securely and made readily available upon request. \r\nThe Office of Financial Aid staff will engage in consultation with the Department of Education, as required, and consistently review the FSA Handbook for guidance on policy and procedural determinations. \r\nContact Person: Stephanie Lawrence, Director of Financial Aid Telephone: (229) 430-4650; Fax: (229) 430-3936 E-Mail: Stephanie.lawrence@asurams.edu \r\n-5- \r\n \r\n ALBANY STATE UNIVERSITY SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\nYEAR ENDED JUNE 30, 2015 \r\n \r\nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nFA 2015-003 Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: CFDA Number and Title: \r\n \r\nReports Not Reconciled Reporting Significant Deficiency Nonmaterial Noncompliance U. S. Department of Education 84.SFA Student Financial Assistance Cluster \r\n \r\nDescription: Fiscal year 2014 amounts reported on the Fiscal Operations and Application to Participate (FISAP) report submitted by the University to the U.S. Department of Education were not properly reconciled. \r\n \r\nCriteria: Federal regulations (34 CFR 668.24, 34 CFR 675.19, 34 CFR 690.81 and 34 CFR 690.83) require the University to ensure that reported information is accurate and reconciled as necessary. \r\n \r\nCondition: The fiscal year 2014 FISAP report included amounts reported for Tuition and Fees for Undergraduates, the Perkins Loan Program, and the Federal Work-Study Program that did not reconcile to the accounting records. \r\n \r\nQuestioned Cost: N/A \r\n \r\nCause: In discussing these deficiencies with management, they stated that due to turnover in the SFA Office, the University could not locate documentation to support amounts reported on the FISAP or determine if this documentation initially existed. \r\n \r\nEffect or Potential Effect: Information submitted to the U.S. Department of Education was not accurate and was not supported by the accounting records. \r\n \r\nRecommendation: The University should implement policy and procedures to ensure that all reports submitted to the U.S. Department of Education are accurately completed and supported by the accounting records. The University should also contact the U.S. Department of Education regarding the resolution of this finding. \r\n \r\nViews of Responsible Officials and Corrective Action Plans: \r\n \r\nWe concur with this finding. \r\n \r\nThe University has changed leadership in the Office of Financial Aid. \r\n \r\nThe new leadership will implement a system of internal controls and monitoring to ensure accurate and timely reporting. \r\n \r\nEach office will designate a reconciliation specialist to ensure that reports are reconciled monthly and annually. \r\n \r\n-6- \r\n \r\n ALBANY STATE UNIVERSITY SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\nYEAR ENDED JUNE 30, 2015 \r\n \r\nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nAll supporting documentation will be maintained and made readily available upon request. \r\n \r\nThe Office of Financial Aid staff will engage in consultation with the Department of Education, as required, and consistently review the FSA Handbook for guidance on policy and procedural development. \r\n \r\nContact Person: Stephanie Lawrence, Director of Financial Aid Telephone: (229) 430-4650; Fax: (229) 430-3936 E-Mail: Stephanie.lawrence@asurams.edu \r\n \r\nFA 2015-004 Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: CFDA Number and Title: \r\n \r\nVerification Process Special Tests and Provisions Material Weakness Material Noncompliance U. S. Department of Education 84.SFA Student Financial Assistance Cluster \r\n \r\nDescription: The University's Student Financial Assistance Office did not meet student verification requirements. \r\n \r\nCriteria: Provisions included in 34 CFR 668 provide the compliance requirements for the verification process that the University should follow for students who receive financial aid and identify what documentation is acceptable. \r\n \r\nCondition: A sample of 25 students who were selected for verification by the U.S. Department of Education was reviewed by the auditor. Testing revealed that verification procedures were not completed for two students. \r\n \r\nQuestioned Cost: Questioned cost of $38,382.00, with likely questioned cost of $1,757,329.09, were identified for the students who received student financial assistance in excess of their eligibility. \r\n \r\nCause: In discussing these deficiencies with management, they stated that due to turnover in the SFA Office, the University could not locate documentation for the verifications or determine if this documentation initially existed. \r\n \r\nEffect or Potential Effect: Without properly verifying the information in the selected student files, the University is in noncompliance with program provisions and awarded students funds in excess of eligibility. \r\n \r\nRecommendation: The University should develop and implement procedures to ensure that verification requirements are met. The University should also contact the U.S. Department of Education regarding resolution of this finding. \r\n \r\n-7- \r\n \r\n ALBANY STATE UNIVERSITY SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\nYEAR ENDED JUNE 30, 2015 \r\n \r\nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nViews of Responsible Officials and Corrective Action Plans: \r\n \r\nWe concur with this finding. \r\n \r\nThe University has changed leadership in the Office of Financial Aid. \r\n \r\nAll processes and procedures relative to determining student eligibility and conducting verification will be reviewed and updated to ensure Federal Student Aid compliance. \r\n \r\nThe new leadership will implement a system of internal controls and monitoring to ensure that documents are received and maintained securely. \r\n \r\nAppropriate modifications will be made to correct deficiencies. \r\n \r\nAll staff responsible for completing verification will be trained to ensure compliance. \r\n \r\nThe Office of Financial Aid staff will engage in consultation with the Department of Education, as required, and consistently review the FSA Handbook for guidance on policy and procedural development. \r\n \r\nContact Person: Stephanie Lawrence, Director of Financial Aid Telephone: (229) 430-4650; Fax: (229) 430-3936 E-Mail: Stephanie.lawrence@asurams.edu \r\n \r\nFA 2015-005 Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: CFDA Number and Title: \r\n \r\nReturn of Title IV Funds Special Tests and Provisions Significant Deficiency Nonmaterial Noncompliance U. S. Department of Education 84.SFA Student Financial Assistance Cluster \r\n \r\nDescription: This is a repeat finding (FA-521-11-01) from the year ended June 30, 2011, which is still unresolved. The University did not properly perform the refund process to ensure that unearned Title IV funds were returned in a timely manner. \r\n \r\nCriteria: 34 CFR 668.22 provides requirements over the treatment of Title IV funds when a student withdraws. The University is required to determine the amount of Title IV grant that the student earned as of the student's withdrawal date when a recipient of a Title IV grant withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance. A refund must be returned to Title IV programs when the total amount of Title IV grant or loan assistance, or both, that the student earned is less than the amount of the Title IV grant or loan assistance that was disbursed to the student as of the withdrawal date. \r\n \r\n-8- \r\n \r\n ALBANY STATE UNIVERSITY SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\nYEAR ENDED JUNE 30, 2015 \r\nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nCondition: Forty students who received Federal financial assistance for the Fall 2014 and Spring 2015 semesters and withdrew from the University were selected to determine if refunds were calculated and returned in the correct amount to the proper funding agency and/or student in a timely manner. Our examination revealed the following deficiencies. \r\n1. The refund calculation for two students who withdrew during the Fall 2014 semester was calculated incorrectly due the use of incorrect Title IV aid information and the improper number of scheduled break days. These students were requested to return $1,608.98 less than the required amount to various SFA programs. \r\n2. The refund calculation for four students who withdrew during the Fall 2014 semester and five students who withdrew during the Spring 2015 semester was calculated incorrectly due to the use of inaccurate institutional charges and/or the improper number of scheduled break days. These students were required to return $4,643.75 in excess of the required amount to various SFA programs. \r\n3. The proration between the school and student portion of the refund was incorrect for four of the students who withdrew during the Fall 2014 semester and three of the students who withdrew during the Spring 2015 semester. \r\n4. Funds were not returned to the appropriate grantor programs within the required time frame of 45 days for one of the withdrawn students tested. \r\n5. Funds were not returned to the appropriate grantor programs within the required time frame of 30 days after the semester ended for four of the withdrawn students tested. \r\n6. Documentation for funds returned to the appropriate grantor programs by the University did not agree to the amount calculated by and deducted within the University's student information system in two instances. \r\n7. Documentation for funds returned to the appropriate grantor programs was not provided by the entity in eleven instances. Therefore, auditor could not determine if the funds had been returned to the appropriate grantor programs within the appropriate timeframe for these students. \r\nQuestioned Cost: Questioned cost of $1,608.98, with likely questioned cost of $10,730.89, were identified for refunds calculated incorrectly. \r\nCause: In discussing these deficiencies with management, they stated that the miscalculation of refund amounts occurred because scheduled break days were not properly determined. Additionally, internal procedural errors led to the untimely return of funds to the appropriate grantor programs or the inability to obtain documentation to support the timely return of funds to the appropriate grantor programs. \r\nEffect or Potential Effect: The Student Financial Assistance Office did not calculate the correct amount of refunds for the Title IV Federal program and did not apply the SFA refunds to the Title IV Federal programs in a timely manner. \r\n-9- \r\n \r\n ALBANY STATE UNIVERSITY SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\nYEAR ENDED JUNE 30, 2015 \r\n \r\nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nRecommendation: The University should develop and implement procedures to ensure that student financial aid refunds are properly calculated and that unearned funds are correctly returned to the appropriate accounts in a timely manner in accordance with the Higher Education Amendments 1998, Public Law 105-244. The University should also contact the U.S. Department of Education regarding resolution of this finding. \r\n \r\nViews of Responsible Officials and Corrective Action Plans: \r\n \r\nWe concur with this finding. \r\n \r\nThe University has changed leadership in the Office of Financial Aid. \r\n \r\nThe Office of Financial Aid, coupled with the Registrar's Office has updated its policy and procedure for the accurate and timely reporting of Return to Title IV (R2T4). \r\n \r\nSystem generated reports are reviewed daily and at the end of the term to assess the need for R2T4 completion on each eligible student. \r\n \r\nInternal procedures for calculating R2T4s will be monitored and updated annually to ensure compliance. \r\n \r\nThe Office of Financial Aid staff will engage in consultation with the Department of Education, as required, and consistently review the FSA Handbook for guidance on policy and procedural development. \r\n \r\nContact Person: Stephanie Lawrence, Director of Financial Aid Telephone: (229) 430-4650; Fax: (229) 430-3936 E-Mail: Stephanie.lawrence@asurams.edu \r\n \r\nFA 2015-006 Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: CFDA Number and Title: \r\n \r\nInadequate Control Procedures over Unofficial Withdrawals Special Tests and Provisions Significant Deficiency Nonmaterial Noncompliance U. S. Department of Education 84.SFA Student Financial Assistance Cluster \r\n \r\nDescription: Unearned Title IV funds were not identified and returned for students who unofficially withdrew from the University. \r\n \r\nCriteria: 34 CFR 668.22 provides requirements over the treatment of Title IV funds when a student withdraws. The University is required to determine the amount of Title IV grant that the student earned as of the student's withdrawal date when a recipient of a Title IV grant withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance. A refund must be returned to Title IV programs when the total amount of Title IV grant or loan assistance, or both, that the student earned is less than the amount of the Title IV grant or loan assistance that was disbursed to the student as of the withdrawal date. \r\n \r\n- 10 - \r\n \r\n ALBANY STATE UNIVERSITY SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\nYEAR ENDED JUNE 30, 2015 \r\nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nCondition: All five students sampled who received Federal financial assistance for the Fall 2014 and Spring 2015 semesters and withdrew from the University but for whom no Return of Title IV calculation was performed were selected to determine if a refund should have been calculated. Our examination revealed that refund calculations were not performed for any of these students who unofficially withdrew during the Fall 2014 and Spring 2015 semesters. \r\nQuestioned Cost: Questioned cost of $18,824.43, with likely questioned cost of $172,850.34, were identified for refunds calculated incorrectly. \r\nCause: In discussing these deficiencies with management, they stated that the omission of three of these Return of Title IV calculations occurred as a result of an error in the Banner process used to identify students who may have unofficially withdrawn. In addition, two of these students' final grades were adjusted from F (failing) to W (withdrawal) at the end of the semester and this activity was not properly reported to the SFA Office to have a Return of Title IV calculation performed. Furthermore, withdrawal documentation for these two students could not be located by the University to support the students' last date of attendance. \r\nEffect or Potential Effect: The Office of Financial Aid did not calculate the correct amount of refunds for the Title IV Federal program. \r\nRecommendation: The University should implement policies and procedures to ensure that students who unofficially withdrew and received Title IV funds are identified and the required refund calculation is performed. The University should also contact the U.S. Department of Education regarding resolution of this finding. \r\nViews of Responsible Officials and Corrective Action Plans: We concur with this finding. \r\nThe University has changed leadership in the Office of Financial Aid. \r\nAll policies and procedures relating to calculating the Return of Title IV funds have been reviewed to determine gaps in practice. \r\nAll relevant personnel will undergo training to ensure the accurate and timely return of funds to the Department of Education. \r\nThe Office of Financial Aid staff will engage in consultation with the Department of Education, as required, and consistently review of the FSA Handbook for guidance on policy and procedural development. \r\nContact Person: Stephanie Lawrence, Director of Financial Aid Telephone: (229) 430-4650; Fax: (229) 430-3936 E-Mail: Stephanie.lawrence@asurams.edu \r\n- 11 - \r\n \r\n ALBANY STATE UNIVERSITY SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\nYEAR ENDED JUNE 30, 2015 \r\n \r\nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nFA 2015-007 Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: CFDA Number and Title: \r\n \r\nFailure to Reconcile the Federal Direct Loan Program Special Tests and Provisions Significant Deficiency Nonmaterial Noncompliance U. S. Department of Education 84.SFA Student Financial Assistance Cluster \r\n \r\nDescription: The University did not perform the required monthly reconciliations for the Federal Direct Loan Program. \r\n \r\nCriteria: Provisions included in 34 CFR 685.102(b), 685.301, and 685.303 provide program requirements for the Federal Direct Loan program. \r\n \r\nCondition: University personnel perform a reconciliation of amounts reported in the student information system and the financial accounting system at the end of each month. However, monthly reconciliations of amounts disbursed by student per the Direct Loan Common Origination and Disbursement (COD) system and the student information system were not performed for any months in the fiscal year. \r\n \r\nQuestioned Cost: N/A \r\n \r\nCause: In discussing these deficiencies with management, they stated that due to turnover in the SFA Office, the University could not locate documentation for the reconciliations performed during the fiscal year or determine if this documentation initially existed. \r\n \r\nEffect or Potential Effect: The University was not in compliance with Federal regulations concerning the program requirements of the Federal Direct Loan program. \r\n \r\nRecommendation: The University should establish procedures and assign responsibility for the monthly and yearly reconciliation of the Federal Direct Loan program. The University's financial aid and business office should maintain their internal records in such a way that they can prepare for the monthly reconciliation. The University should establish a monitoring process to ensure the guidelines detained in the Federal Direct Loan School Guide are followed to ensure compliance with Federal Direct Loan requirements. \r\n \r\nViews of Responsible Officials and Corrective Action Plans: We concur with this finding. \r\n \r\nThe University has changed leadership in the Office of Financial Aid. \r\n \r\nA system of conducting monthly reconciliations between COD, Banner, and PeopleSoft will be implemented to guarantee compliance. \r\n \r\nA Loan Reconciliation Specialist position will be added to the Office of Financial Aid to increase compliance. \r\n- 12 - \r\n \r\n ALBANY STATE UNIVERSITY SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\nYEAR ENDED JUNE 30, 2015 \r\n \r\nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nThe Office of Financial Aid staff will engage in training in regards to awarding, disbursing, and reconciling Federal Direct Loans. \r\n \r\nThe Office of Financial Aid staff will engage in consultation with the Department of Education, as required, and consistently review the FSA Handbook for guidance on policy and procedural development. \r\n \r\nContact Person: Stephanie Lawrence, Director of Financial Aid \r\nTelephone: (229) 430-4650; Fax: (229) 430-3936 E-Mail: Stephanie.lawrence@asurams.edu \r\n \r\nOTHER ITEMS (NOTED FOR MANAGEMENT'S CONSIDERATION) \r\n \r\nInadequate Controls over Purchasing Card Observation: A review of purchasing card transactions revealed purchasing card users that did not follow the guidelines for purchasing card transactions as prescribed in the University's Procurement Card (PCard) Manual. Albany State University was unable to locate documentation for eighteen transactions, one transaction appears to have been executed by someone other than the card holder, and sales tax was paid on two purchases, which should have been tax-exempt. \r\n \r\nRecommendation: Management should review procedures in place and implement changes necessary to ensure that all purchasing card transactions adhere to the policies and procedures as outline in the University's Procurement Card (P-Card) Manual. \r\n \r\nViews of Responsible Officials and Corrective Action Plans: ASU will continue to train card holders, monitor activity and take corrective action as needed. We revoked the privileges of the cardholder with the eighteen undocumented transactions and the cardholder with the two sales taxes. Also, Business Services is hosting a P-Card training seminar on March 1 which will include the Deputy Commissioner of State Purchasing, the Director of State Card Programs and the AVP of Card Programs with Bank of America. \r\n \r\nContact Person: \r\n \r\nLarry Wakefield \r\n \r\nTelephone: (229) 430-4609; Fax: (229) 430-2763; E-mail: Larry.Wakefield@asurams.edu \r\n \r\nAuxiliary Fund Deficit Observation: The Board of Regents Policy Manual Section 15 states that \"Auxiliary Enterprises are operating on a self-supporting basis, where the combination of fees and other revenue is sufficient to meet costs\". The University's Residence Halls, Intercollegiate Athletics and Parking/Transportation funds reported a loss during the year under review. The Residence Halls fund reported an overall net loss of $1,143,197 and is in a deficit of $925,274. The Intercollegiate Athletics fund reported a net loss of $553,075 and is in a deficit of $1,118,772. The Parking/Transportation fund reported net loss of $59,205 and is in a deficit of $440,421. \r\n \r\nRecommendation: The University should ensure that the revenue streams associated with the Auxiliary Enterprise funds are sufficient to pay all costs pertaining to the funds. \r\n \r\n- 13 - \r\n \r\n ALBANY STATE UNIVERSITY SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\nYEAR ENDED JUNE 30, 2015 \r\n \r\nOTHER ITEMS (NOTED FOR MANAGEMENT'S CONSIDERATION) \r\n \r\nViews of Responsible Officials and Corrective Action Plans: The Housing, Athletic and Transportation deficits have accumulated over a number of years and will require several years to resolve. The Housing rents and Student Athletic fees were increased this year. The Housing rents will be increased again next year. Housing has reorganized to reduce staff expenses. Housing is also working with a new marketing firm to attract additional residents. We continue to work with the Athletic Director on reducing expenses and increasing revenues. We are shifting game related, revenue generating, operations to Athletics next year. We have a new Transportation Services Manager and expect a more efficient operation as a result. Transportation charges to users can be increased if needed. \r\n \r\nContact Person: \r\n \r\nLarry Wakefield \r\n \r\nTelephone: (229) 430-4609; Fax: (229) 430-2763; E-mail: Larry.Wakefield@asurams.edu \r\n \r\nAccounting Controls Overall Observation: Our review of the established internal control structure associated with significant financial applications at the University revealed design deficiencies in logical access controls intended to protect information from unauthorized access, manipulation and corruption. The details related to these deficiencies have been provided to management of the University in accordance with Official Code of Georgia Annotated 50-6-9. \r\n \r\nRecommendation: Management should review and enhance their policies and procedures to ensure the integrity and accuracy of the information used within the financial statements and as part of awarding financial assistance to students. Additionally, management should ensure proper separation of duties as it relates to financial and student financial assistance processes. \r\n \r\nViews of Responsible Officials and Corrective Action Plans: ITS has been working with ABAC which was identified by BOR ITS auditors as having a best practice in terms of how accounts are reviewed and managed. \r\n \r\nWe have recently purchased the Cold Fusion application, which is what ABAC's scripts were written in and we will be setting up the same environment here at ASU. We also are in the process of creating new Banner classes similar to ABAC's that will allow us to provide and better monitor access in terms of segregation of duties. \r\n \r\nITS is also participating in the Banner Workshop that be held at Middle Georgia State University on February 24th in Macon, Ga. We will be following any additional recommendations shared at that time in terms of access control and segregation of duties. \r\n \r\nContact Person: \r\n \r\nDel Kimbrough \r\n \r\nTelephone: (229) 430-3006; Fax: (229) 420-1271; E-mail: del.kimbrough@asurams.edu \r\n \r\nUntimely Enrollment Reporting Observation: Our testing of 40 students who withdrew during the Fall 2014 and Spring 2015 semesters revealed that all of the students' withdrawn enrollment statuses were reported to the National Student Loan Data System (NSLDS) in an untimely manner. Additionally, four students' withdrawn enrollment statuses were never reported to NSLDS. \r\n \r\n- 14 - \r\n \r\n ALBANY STATE UNIVERSITY SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\nYEAR ENDED JUNE 30, 2015 \r\n \r\nOTHER ITEMS (NOTED FOR MANAGEMENT'S CONSIDERATION) \r\n \r\nRecommendation: The University should implement policies and procedures to ensure that all changes in student enrollment statuses are reported in a timely manner. \r\nViews of Responsible Officials and Corrective Action Plans: Corrective actions were initiated by the Registrar at the end of the Spring 2015 term. The following corrective actions have been put into practice: \r\n1. Attendance verification is performed at the beginning of term for all enrolled students. \r\nStudents who are reported as non-attending are dropped from classes. Students are then required to petition their instructor for reinstatement into class. \r\n2. All faculty members are now required to report a last date of attendance for all students who \r\nreceive a grade of `I', `F', or `U'. \r\n3. An automatic report detailing the name and RamID of any student who officially withdraws is \r\ngenerated by our reporting software (Argos). This report is sent to the Director of Financial Aid each day. \r\n \r\nThe following action is under development by the Registrar's Office with the assistance and cooperation of Financial Aid: \r\n An End of Term report of all students with grades of only `F', `I', `W' is being developed \r\n(Unofficial Withdrawal Report). If the student did not successfully complete the term, we will initiate Title IV Withdrawal procedures using the last date of attendance. \r\n \r\nBased on the audit recommendations, we will also create an audit report detailing all students withdrawn during the previous month and whether or not Title IV Withdrawal processes were initiated for them. \r\n \r\nContact Person: \r\n \r\nVictoria Eiland \r\n \r\nTelephone: (229) 430-4638; Fax: (229) 430-2953; E-mail: Victoria.Eiland@asurams.edu \r\n \r\n- 15 - \r\n \r\n "}],"pages":{"current_page":1,"next_page":null,"prev_page":null,"total_pages":1,"limit_value":10,"offset_value":0,"total_count":1,"first_page?":true,"last_page?":true},"facets":[{"name":"type_facet","items":[{"value":"Text","hits":1}],"options":{"sort":"count","limit":16,"offset":0,"prefix":null}},{"name":"creator_facet","items":[{"value":"Georgia. 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