{"response":{"docs":[{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bg458-b2016-belec-p-btext","title":"Georgia Military College, Milledgeville, Georgia, management report for fiscal year ended 2016 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":["2017-07-21"],"dcterms_description":["Annual financial report for Georgia Military College."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Georgia. 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Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, Baldwin County, Milledgeville, 33.08014, -83.2321"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2013/2014"],"dcterms_description":["Began with fiscal year ended June 30, 2009.","For some years, report may be published instead called: Georgia Military College, Milledgeville, Georgia, independent accountants report on applying agreed-upon procedures for fiscal year ended ...","Fiscal year ended June 30, 2009 (online surrogate); title from PDF title page (Georgia Government Publications database, viewed June 29, 2020).","Fiscal year ended June 30, 2015 (online surrogate) (Received via FTP 1/14/16 from Georgia Dept. of Audits and Accounts); (Georgia Government Publications database, viewed August 30, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, GA : Georgia. Dept. of Audits and Accounts, 2014"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Georgia Military College--Appropriations and expenditures--Periodicals.","Georgia Military College--Auditing--Periodicals.","Georgia Military College--Finance--Periodicals.","Military education--Georgia--Auditing--Periodicals.","Military education--Georgia--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Georgia Military College, Milledgeville, Georgia, management report for fiscal year ended June 30, 2014"],"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_y-ga-ba800-b-pr1-bg458-b2013-h2014-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bg458-b2013-h2014-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"GEORGIA MILITARY COLLEGE \r\nMILLEDGEVILLE, GEORGIA \r\nMANAGEMENT REPORT FOR FISCAL YEAR ENDED JUNE 30, 2014 \r\nGeorgia Department of Audits and Accounts Greg S. Griffin State Auditor \r\n \r\n GEORGIA MILITARY COLLEGE - 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 SUPPLEMENTARY INFORMATION SCHEDULE 1 RECONCILIATION OF SALARIES AND TRAVEL \r\n \r\nPage \r\n2 3 4 5 21 \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\nSECTION III FINDINGS, QUESTIONED COSTS AND OTHER ITEMS SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\n \r\n  SECTION I FINANCIAL \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\nJanuary 8, 2015 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly of Georgia Members of the Board of Trustees of the Georgia Military College \r\nand Lieutenant General William B. Caldwell, IV, President \r\nLadies and Gentlemen: \r\nAs part of our audit of 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, 2014, we have performed certain audit procedures at Georgia Military College. Accordingly, the financial statements and compliance activities of Georgia Military College 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\nThis Management Report contains information pertinent to the financial and compliance activities of Georgia Military College as of and for the year ended June 30, 2014. Information contained in this report is a by-product of our audit of 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\nThis report is intended solely for the information and use of the management of Georgia Military College, members of the Board of Trustees of Georgia Military College and the appropriate accrediting regulatory agency and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully, \r\n \r\nGSG:as \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n  SELECTED FINANCIAL INFORMATION - 1 - \r\n \r\n GEORGIA MILITARY COLLEGE STATEMENT OF NET POSITION - (GAAP BASIS) \r\nJUNE 30, 2014 \r\nASSETS \r\nCurrent Assets Cash and Cash Equivalents Accounts Receivable, Net (Note 3) Federal Financial Assistance Other Inventories Prepaid Items (Note 5) \r\nTotal Current Assets \r\nNoncurrent Assets Cash and Cash Equivalents Investments Capital Assets, Net (Note 4) \r\nTotal Noncurrent Assets \r\nTotal Assets \r\nLIABILITIES \r\nCurrent Liabilities Accounts Payable Salaries Payable Advances (Including Tuition and Fees) (Note 6) Deposits Held for Other Organizations Lease Purchase Obligations (Notes 7, 9 and 10) Compensated Absences Notes Payable (Notes 7 and 11) \r\nTotal Current Liabilities \r\nNoncurrent Liabilities Lease Purchase Obligations (Notes 7, 9 and 10) \r\nTotal Liabilities \r\nNET POSITION \r\nNet Investment in Capital Assets Restricted for: \r\nNonexpendable Unrestricted \r\nTotal Net Position \r\n \r\nEXHIBIT \"A\" \r\n$ 7,546,848.66 368,478.21 \r\n4,434,758.89 1,289,926.04 8,578,781.48 22,218,793.28 \r\n66,914.65 1,386,165.26 58,328,777.27 59,781,857.18 82,000,650.46 \r\n1,592,997.32 824,697.41 \r\n3,294,435.69 148,337.06 72,581.86 462,968.99 \r\n3,510,723.94 9,906,742.27 \r\n98,787.13 10,005,529.40 \r\n54,646,684.34 1,453,079.91 \r\n15,895,356.81 \r\n$ 71,995,121.06 \r\n \r\n- 2 - \r\n \r\n GEORGIA MILITARY COLLEGE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - (GAAP BASIS) \r\nYEAR ENDED JUNE 30, 2014 \r\n \r\nEXHIBIT \"B\" \r\n \r\nOPERATING REVENUES \r\nStudent Tuition and Fees (Net of Allowance for Doubtful Accounts) Less: Scholarship Allowances \r\nGrants and Contracts Federal State Nongovernmental \r\nAuxiliary Enterprises Residence Halls Bookstore Food Services Intercollegiate Athletics \r\nOther Operating Revenues \r\nTotal Operating Revenues \r\nOPERATING EXPENSES \r\nSalaries Faculty Staff \r\nEmployee Benefits Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation \r\nTotal Operating Expenses \r\nOperating Loss \r\nNONOPERATING REVENUES (EXPENSES) \r\nGrants and Contracts Federal \r\nGifts Investment Income (Endowments, Auxiliary and Other) Interest Expense (Capital Assets) Other Nonoperating Revenues \r\nNet Nonoperating Revenues \r\nIncrease in Net Position \r\nNet Position - Beginning of Year \r\n \r\n$ 45,508,210.21 -18,305,188.12 \r\n4,447,176.45 6,627,181.78 \r\n366,618.97 \r\n761,280.36 3,529,758.17 1,779,044.54 \r\n193,437.38 415,807.31 \r\n45,323,327.05 \r\n12,289,807.10 12,691,921.72 \r\n6,473,610.18 263,661.47 \r\n12,304,398.88 1,741,873.05 \r\n17,025,671.78 2,544,988.48 \r\n65,335,932.66 \r\n-20,012,605.61 \r\n19,599,114.02 764,516.32 229,558.06 -171,708.36 430,837.36 \r\n20,852,317.40 \r\n839,711.79 \r\n71,155,409.27 \r\n \r\nNet Position - End of Year \r\n \r\n$ 71,995,121.06 \r\n \r\n- 3 - \r\n \r\n GEORGIA MILITARY COLLEGE STATEMENT OF CASH FLOWS - (GAAP BASIS) \r\nYEAR ENDED JUNE 30, 2014 \r\nCASH FLOWS FROM OPERATING ACTIVITIES Tuition and Fees Grants and Contracts (Exchange) Sales and Services Payments to Suppliers Payments to Employees Payments for Scholarships and Fellowships Other Receipts, Net \r\nNet Cash Used by Operating Activities \r\nCASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Agency Funds Transactions Gifts and Grants Received for Other than Capital Purposes Other Nonoperating Receipts, Net \r\nNet Cash Flows Provided by Noncapital Financing Activities \r\nCASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from Sale of Capital Assets Purchases of Capital Assets Principal Paid on Capital Debt and Leases Interest Paid on Capital Debt and Leases Prepayment of Construction Costs paid to Georgia State Financing and Investment Commission \r\nNet Cash Used by Capital and Related Financing Activities \r\nCASH FLOWS FROM INVESTING ACTIVITIES Proceeds from Sales and Maturities of Investments Interest on Investments Purchase of Investments \r\nNet Cash Provided by Investing Activities \r\nNet Increase 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 Inventories Prepaid Items Accounts Payable Salaries Payable Advances (Including Tuition and Fees) Compensated Absences \r\nNet Cash Used by Operating Activities \r\nNONCASH ACTIVITY Fixed Assets Acquired by Incurring Capital Lease Obligations \r\n- 4 - \r\n \r\nEXHIBIT \"C\" \r\n \r\n$ 26,476,277.94 11,391,525.02 6,263,520.45 -25,273,685.43 -24,865,264.43 -12,304,398.88 415,807.31 \r\n-17,896,218.02 \r\n8,243.35 20,363,630.34 \r\n426,124.20 \r\n20,797,997.89 \r\n13,632.86 -1,311,679.14 \r\n-387,521.22 -171,708.36 -200,000.00 \r\n-2,057,275.86 \r\n1,575,062.80 115,315.47 -908,247.39 \r\n782,130.88 \r\n1,626,634.89 \r\n5,987,128.42 \r\n \r\n$ \r\n \r\n7,613,763.31 \r\n \r\n$ -20,012,605.61 \r\n2,544,988.48 \r\n-676,810.85 161,591.59 \r\n230.09 69,707.98 91,773.02 -99,385.48 24,292.76 \r\n$ -17,896,218.02 \r\n \r\n$ \r\n \r\n14,482.93 \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nNATURE OF OPERATIONS Georgia Military College (College) serves the state and national communities by providing its students with academic instruction that advances fundamental knowledge and by disseminating knowledge to the people of Georgia and throughout the country. \r\nREPORTING ENTITY Georgia Military College was created as a public authority and is an instrumentality of the State of Georgia and a public corporation. The Board of Trustees is composed of the Mayor of the City of Milledgeville and six additional members, one of which shall be elected for each of the six municipal voting districts of the City of Milledgeville. The government, control and management of Georgia Military College shall be vested in the Board of Trustees. Georgia Military College shall receive any designated funds appropriated by the General Assembly through the State Board of Regents. In order to incur debt, the Board of Trustees must first receive permission from the Georgia State Financing and Investment Commission, as required for all State authorities. Accordingly, Georgia Military College is considered a component unit of the State of Georgia reporting entity for financial reporting purposes because of the significance of its legal, operational, and financial relationships with the State of Georgia. These reporting entity relationships are defined in Section 2100 of the Governmental Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial Reporting Standards. \r\nNEW ACCOUNTING PRONOUNCEMENTS In fiscal year 2014, the College adopted the Governmental Accounting Standards Board (GASB) Statement No. 65, Items Previously Reported as Assets and Liabilities. The provisions of this Statement clarify the use of deferred inflows of resources and deferred outflows of resources. Certain items, including those items which were previously reported as assets and liabilities, will now be reported as outflows of resources or inflows of resources. As of June 30, 2014, the College did not have any deferred outflows of resources or deferred inflows of resources. \r\nIn fiscal year 2014, the College adopted Governmental Accounting Standards Board (GASB) Statement No. 66, Technical Corrections - 2012, an amendment to GASB Statements No. 10 and No. 62. The objective of this Statement is to resolve conflicting guidance by amending GASB Statement No. 10, Accounting and Financial Reporting for Risk Financing and Related Insurance Issues and GASB Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. GASB Statement No. 10 was amended by removing the provision that limited fund based reporting of an entity's risk and financing activities to certain funds. GASB Statement No. 62 was amended by modifying guidance on (1) operating lease payments that vary from a straight-line basis, (2) purchases of a loan or a group of loans, and (3) recognition of servicing fees on mortgage loans that are sold when the stated service fee rate differs from a current (normal) servicing fee rate. The adoption of this statement does not have a significant impact on the College's financial statements. \r\nIn fiscal year 2014, the College adopted Governmental Accounting Standards Board (GASB) Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees. This Statement establishes accounting and reporting requirements for state and local governments that extend or receive financial guarantees that are nonexchange transactions. The adoption of this statement does not have a significant impact on the College's financial statements. \r\n \r\n- 5 - \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"D\" \r\n \r\nFUTURE ACCOUNTING PRONOUNCEMENTS In fiscal year 2015, the College will adopt 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 will require the College to record a liability for its proportionate share of the Net Pension Liability of pension plans in which it participates. Actuarial estimates are currently being made to determine the College's liability, the effects of which are believed to be material. \r\nNET POSITION The College's net position is classified as follows: \r\nNet Investment in Capital Assets: This represents the College'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 College 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 College is legally or contractually obligated to spend resources in accordance with restrictions imposed by external third parties. \r\nUnrestricted: Unrestricted net position represents resources derived from student tuition and fees, state appropriations, and sales and services of educational departments and auxiliary enterprises. These resources are used for transactions relating to the educational and general operations of the College and may be used at the discretion of the governing board to meet current expenses for those purposes. These resources also include auxiliary enterprises, which are substantially self-supporting activities that provide services for students, faculty and staff. \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 College's deposits may not be recovered. Funds belonging to the State of Georgia (and thus the College) 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\n \r\n- 6 - \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"D\" \r\n \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. \r\nThe Georgia Military College Board of Trustees is responsible for all details relative to furnishing the required depository protection for Georgia Military College. \r\nAt June 30, 2014, the carrying value of deposits was $7,611,115.82 and the bank balance was $8,094,575.62. Of the College's deposits, $7,658,975.75 was uninsured. Of these uninsured deposits, $7,658,975.75 was collateralized with securities held by the pledging financial institution's trust department or agent in the College's name. \r\nINVESTMENTS At June 30, 2014, the carrying value of the College's investment was $1,386,165.26, which is materially the same as fair value. These investments were comprised entirely of funds invested in the Century Bank and Trust Trustee Endowment as follows: \r\n \r\nInvestment Type \r\n \r\nFair Value \r\n \r\nFixed Income Securities Equity Funds \r\n \r\n$ \r\n \r\n797,141.06 \r\n \r\n589,024.20 \r\n \r\nTotal Investments \r\n \r\n$ \r\n \r\n1,386,165.26 \r\n \r\nCREDIT QUALITY RISK \r\nCredit Quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Georgia Military College does not have a formal policy for managing credit quality risk. \r\nCUSTODIAL CREDIT RISK \r\nCustodial credit risk for investments is the risk that, in the event of a failure of the counterparty to a transaction, the College will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. The College does not have a formal policy for managing custodial credit risk for investments. At June 30, 2014, $1,386,165.26 of the College's applicable investments was uninsured and held by the investment's counterparty in the College's name. \r\n \r\n- 7 - \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 3: ACCOUNTS RECEIVABLE Accounts receivable consisted of the following at June 30, 2014. \r\n \r\nStudent Tuition and Fees Federal, State and Private Funds \r\n \r\n$ \r\n \r\n4,139,901.75 \r\n \r\n829,209.53 \r\n \r\nLess Allowance for Doubtful Accounts \r\n \r\n4,969,111.28 165,874.18 \r\n \r\nNet Accounts Receivable \r\nNOTE 4: CAPITAL ASSETS \r\n \r\n$ \r\n \r\n4,803,237.10 \r\n \r\nFollowing are the changes in the College's capital assets for the year ended June 30, 2014: \r\n \r\nBeginning Balance July 1, 2013 \r\n \r\nAdditions \r\n \r\nReductions \r\n \r\nEnding Balance June 30, 2014 \r\n \r\nCapital Assets, Not Being Depreciated: Land Capitalized Collections Construction Work-In-Progress \r\n \r\n$ \r\n \r\n681,165.84 \r\n \r\n$ \r\n \r\n63,187.35 \r\n \r\n1,232,669.30 $ \r\n \r\n211,624.31 \r\n \r\n0.00 $ \r\n \r\n681,165.84 63,187.35 \r\n1,444,293.61 \r\n \r\nTotal Capital Assets, Not Being Depreciated \r\n \r\n1,977,022.49 \r\n \r\n211,624.31 \r\n \r\n0.00 \r\n \r\n2,188,646.80 \r\n \r\nCapital Assets, Being Depreciated: Infrastructure Building and Building Improvements Facilities and Other Improvements Equipment Library Collections \r\n \r\n278,690.00 68,722,457.20 \r\n3,196,380.14 4,271,050.88 3,499,103.37 \r\n \r\n340,101.91 38,519.15 \r\n482,152.16 253,764.54 \r\n \r\n131,720.72 17,983.20 \r\n \r\n278,690.00 69,062,559.11 \r\n3,234,899.29 4,621,482.32 3,734,884.71 \r\n \r\nTotal Assets Being Depreciated \r\n \r\n79,967,681.59 \r\n \r\n1,114,537.76 \r\n \r\n149,703.92 \r\n \r\n80,932,515.43 \r\n \r\nLess: Accumulated Depreciation: Infrastructure Building and Building Improvements Facilities and Other Improvements Equipment Library Collections \r\n \r\n278,690.00 16,303,120.87 \r\n1,511,687.36 2,047,355.54 2,242,613.77 \r\n \r\n1,687,336.78 197,406.27 420,898.29 239,347.14 \r\n \r\n118,087.86 17,983.20 \r\n \r\n278,690.00 17,990,457.65 \r\n1,709,093.63 2,350,165.97 2,463,977.71 \r\n \r\nTotal Accumulated Depreciation \r\n \r\n22,383,467.54 \r\n \r\n2,544,988.48 \r\n \r\n136,071.06 \r\n \r\n24,792,384.96 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n57,584,214.05 \r\n \r\n-1,430,450.72 \r\n \r\n13,632.86 \r\n \r\n56,140,130.47 \r\n \r\nCapital Assets, Net \r\n \r\n$ 59,561,236.54 $ -1,218,826.41 $ \r\n \r\n13,632.86 $ 58,328,777.27 \r\n \r\n- 8 - \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 5: PREPAID ITEMS \r\nFor the year ending June 30, 2014, the College paid an additional $200,000.00 to Georgia State Financing and Investment Commission for use in the construction of the Health and Wellness Center. \r\n \r\nGeorgia State Financing and Investment Commission Other \r\n \r\n$ 8,572,974.00 5,807.48 \r\n \r\nTotal Prepaid Items \r\n \r\n$ 8,578,781.48 \r\n \r\nNOTE 6: ADVANCES \r\n \r\nAdvances consisted of the following at June 30, 2014 \r\n \r\nTuition and Fees Other Advances \r\n \r\n$ 3,110,488.25 183,947.44 \r\n \r\nTotal Advances \r\n \r\n$ 3,294,435.69 \r\n \r\nNOTE 7: LONG-TERM LIABILITIES \r\n \r\nThe College's Long-Term liability activity for the year ended June 30, 2014 was as follows: \r\n \r\nBeginning Balance July 1, 2013 \r\n \r\nAdditions \r\n \r\nReductions \r\n \r\nEnding Balance June 30, 2014 \r\n \r\nCurrent Portion \r\n \r\nLeases Lease Obligations \r\n \r\n$ 240,585.45 $ 16,171.71 $ 85,388.17 $ 171,368.99 $ 72,581.86 \r\n \r\nOther Liabilities Compensated Absences Notes Payable \r\n \r\n438,676.23 3,812,856.99 \r\n \r\n672,266.02 \r\n \r\n647,973.26 302,133.05 \r\n \r\n462,968.99 3,510,723.94 \r\n \r\n462,968.99 3,510,723.94 \r\n \r\nTotal \r\n \r\n4,251,533.22 \r\n \r\n672,266.02 \r\n \r\n950,106.31 3,973,692.93 3,973,692.93 \r\n \r\nTotal Long-Term Obligations $ 4,492,118.67 $ 688,437.73 $ 1,035,494.48 $ 4,145,061.92 $ 4,046,274.79 \r\n \r\n- 9 - \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 8: NET POSITION Changes in Net Position activity for the year ended June 30, 2014 are as follows: \r\n \r\nBeginning Balance July 1, 2013 \r\n \r\nAdditions \r\n \r\nReductions \r\n \r\nEnding Balance June 30, 2014 \r\n \r\nNet Investments in Capital Assets \r\n \r\n$ 55,507,794.10 $ 1,411,550.24 $ 2,272,660.00 $ \r\n \r\n54,646,684.34 \r\n \r\nRestricted Net Position \r\n \r\n880,899.96 29,410,718.21 28,838,538.26 \r\n \r\n1,453,079.91 \r\n \r\nUnrestricted Net Position \r\n \r\n14,766,715.21 46,576,530.43 45,447,888.83 \r\n \r\n15,895,356.81 \r\n \r\nTotal Net Position \r\n \r\n$ 71,155,409.27 $ 77,398,798.88 $ 76,559,087.09 $ \r\n \r\n71,995,121.06 \r\n \r\nNOTE 9: LEASE OBLIGATIONS \r\n \r\nGeorgia Military College is obligated under various operating leases for the use of real property (land, buildings, and office facilities) and 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 2014 and 2019. Expenses for fiscal year 2014 were $98,373.18 of which $12,985.01 represented interest. Total principal paid on capital leases was $85,388.17 for the fiscal year ended June 30, 2014. Interest rates range from 1.94 percent to 22.49 percent. \r\nOPERATING LEASES Georgia Military College's noncancellable operating leases provide for renewal options for periods from one to ten 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 and office facilities. \r\n \r\nNoncancellable operating lease rental expenses in 2014 were $2,783,122.68 for real property and $4,362.91 for office equipment. \r\nNOTE 10: LEASE OBLIGATIONS \r\nFUTURE COMMITMENTS Future commitments for capital leases (which here and on the Statement of Net Assets include other installment purchase agreements) and for noncancellable operating leases having remaining terms in excess of one year as of June 30, 2014, were as follows: \r\n \r\n- 10 - \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"D\" \r\n \r\nCapital Leases \r\n \r\nOperating Leases \r\n \r\nYear Ending June 30: 2015 2016 2017 2018 2019 2020 - 2023 \r\n \r\n$ \r\n \r\n82,746.23 $ 2,714,089.98 \r\n \r\n59,509.54 \r\n \r\n2,564,902.14 \r\n \r\n31,330.71 \r\n \r\n1,965,837.36 \r\n \r\n13,028.86 \r\n \r\n1,905,625.04 \r\n \r\n1,980.00 \r\n \r\n1,585,235.85 \r\n \r\n2,848,725.34 \r\n \r\nTotal Minimum Lease Payments \r\n \r\n188,595.34 $ 13,584,415.71 \r\n \r\nLess: Interest \r\n \r\n17,226.35 \r\n \r\nPrincipal Outstanding \r\n \r\n$ \r\n \r\n171,368.99 \r\n \r\nNOTE 11: NOTES PAYABLE \r\n \r\nNotes payable consisted of the following at June 30, 2014: \r\n \r\nCollege note payable secured by Baugh Barracks, dated July 2006, payable in monthly installments of $38,404.70, matures June 3, 2015, interest rate 4.310%. \r\n \r\nNote Payable Balance \r\n \r\n$ 3,510,723.94 \r\n \r\nMaturity Information \r\n \r\nThe scheduled maturities of Baugh Barracks notes payable are as follows: \r\n \r\nTotal Principal \r\n \r\nInterest \r\n \r\nTotal Payments \r\n \r\n2015 \r\n \r\n$ 3,510,723.94 $ \r\n \r\n145,109.66 $ 3,655,833.60 \r\n \r\nNOTE 12: RETIREMENT PLANS \r\n \r\nGeorgia Military College participates in various retirement plans administered by the State of Georgia under two major retirement systems: Employees' Retirement System of Georgia (ERS System) and Teachers Retirement System of Georgia. 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 system offices. The significant retirement plans that Georgia Military College 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\n \r\nEMPLOYEES' RETIREMENT SYSTEM OF GEORIGA \r\n \r\nThe ERS System is comprised of individual retirement systems and plans covering substantially all employees of the State of Georgia except for teachers and other employees covered by the Teachers Retirement System of Georgia. One of the ERS System plans, the Employee's Retirement System of \r\n \r\n- 11 - \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"D\" \r\n \r\nGeorgia (ERS), is a cost-sharing multiple-employer defined benefit pension plan that was 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 and has the powers and privileges of a corporation. ERS acts pursuant to statutory direction and guidelines, which may be amended prospectively for new hires but for existing members and beneficiaries may be amended in some aspects only subject to potential application of certain constitutional restraints against impairment of contract. \r\nOn November 20, 1997, the Board created the Supplemental Retirement Benefit Plan (SRBP-ERS) of ERS. SRBP-ERS was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of ERS. The purpose of the SRBP-ERS is to provide retirement benefits to employees covered by ERS whose benefits are otherwise limited by IRC Section 415. Beginning January 1, 1998, all members and retired former members in ERS are eligible to participate in the SRBP-ERS whenever their benefits under ERS exceed the limitation on benefits imposed by IRC Section 415. \r\nThe benefit structure of ERS is established by the Board of Trustees under statutory guidelines. Unless the employee elects otherwise, an employee who currently maintains membership with ERS based upon State employment that started prior to July 1, 1982, is an \"old plan\" member subject to the 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 the modified plan provisions. Effective January 1, 2009, newly hired State employees, as well as rehired State employees who did not maintain eligibility for the \"old\" or \"new\" plan, are members of the Georgia State Employee's Pension and Savings Plan (GSEPS). ERS members hired prior to January 1, 2009 also have the option to change their membership to the GSEPS plan. \r\nUnder the old plan, new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of credible 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 a formula adopted by the Board of Trustees for such purpose. The formula considers the monthly average of the member's highest 24 consecutive calendar months of salary, the number of years of creditable service, and the member's age at retirement. Post-retirement cost-of-living adjustments may be made to member's 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\nMember contribution rates are set by law. Member contributions under the old plan are 4% of the annual compensation up to $4,200 plus 6% of annual compensation in excess of $4,200. Under the old plan, the College pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these College 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 College is required to contribute at a specified percentage of active member payroll established by the Board of Trustees determined annually in accordance with actuarial valuation and minimum funding standards as provided by law. These College contributions are not at any time refundable to the member or his/her beneficiary. \r\n \r\n- 12 - \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"D\" \r\n \r\nEmployer contributions required for fiscal year 2014 were based on the June 30, 2011 actuarial valuation as follows: \r\n \r\nOld Plan* New Plan GSEPS \r\n \r\n18.46% 18.46% 15.18% \r\n \r\n*13.71% exclusive of contributions paid by the employer on behalf of old plan members \r\n \r\nMembers become vested after 10 years of service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\nThe Teachers Retirement System of Georgia (TRS) is a cost-sharing multiple-employer defined benefit pension plan created in 1943 by an act of the General Assembly of Georgia to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS. \r\n \r\nOn October 25, 1996, the Board created the Supplemental Retirement Benefit Plan of the Georgia Teachers Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1, 1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits. \r\n \r\nTRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by State statute. A member 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. A member is eligible for early retirement after 25 years of creditable service. \r\n \r\nNormal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 60 or by 7% for each year or fraction thereof by which the member has less than 30 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available. \r\n \r\nTRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 10 years of service. If a member terminates with less than 10 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2014 were 6.00% of annual salary. Employer contributions required for fiscal year 2013 were 12.28% of annual salary as required and were based on the June 30, 2011 actuarial valuation. \r\n \r\n- 13 - \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"D\" \r\n \r\nThe following table summarizes Georgia Military College's contributions by defined benefit plan for the years ending June 30, 2014, June 30, 2013, and June 30, 2012: \r\n \r\nFiscal Year \r\n \r\nERS Required Contribution \r\n \r\nPercentage Contributed \r\n \r\nTRS Required Contribution \r\n \r\nPercentage Contributed \r\n \r\n2014 2013 2012 \r\n \r\n$ \r\n \r\n19,974.82 \r\n \r\n$ \r\n \r\n15,262.70 \r\n \r\n$ \r\n \r\n11,318.27 \r\n \r\nNOTE 13: POST-EMPLOYMENT BENEFITS \r\n \r\n100% $ 2,238,131.14 100% $ 1,959,579.56 100% $ 1,648,500.13 \r\n \r\n100% 100% 100% \r\n \r\nThe College participates in the following State of Georgia other post-employment benefit (OPEB) plans: \r\n \r\nAdministered by Department of Community Health (DCH) Georgia School Personnel Post-employment Health Benefit Fund (School OPEB Fund) \r\nAdministered by the ERS System State Employee's Assurance Department (SEAD) -For retired and vested inactive (SEAD-OPEB) -For active employees (SEAD-Active) \r\n \r\nSeparate financial reports that include the applicable financial statements and required supplementary information for these plans are publicly available and may be obtained from the offices that administer the plans. \r\nGeorgia School Personnel Post-employment Health Benefit Fund \r\nPlan Description. The Georgia School Personnel Post-employment Health Benefit Fund (School OPEB Fund) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fund provided health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health Benefit Plan administered by the Department of Community Health. The Official Code of Georgia Annotated (O.C.G.A.) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). The Department of Community Health, which includes the School OPEB Fund, issues a separate stand-alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. For members with fewer than five years of service as of January 1, 2012, contributions also vary based on years of service. On average, members with five years or more of service as of January 1, 2012, pay approximately \r\n \r\n- 14 - \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"D\" \r\n \r\n25 percent of the cost of health insurance coverage. In accordance with the Board resolution dated December 8, 2011, for members with fewer than five years of service as of January 1, 2012, the State provides a premium subsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater than the subsidy percentage offered to active employees) for 30 or more years of service. The subsidy for eligible dependents ranges from 0% to 55% (but no greater than the subsidy percentage offered to dependents of active employees minus 20%). No subsidy is available to Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of Community Health sets all member premiums by resolution and in accordance with the law and applicable revenue and expense projections. Any subsidy policy adopted by the Board may be changed at any time by Board resolution and does not constitute a contract or promise of any amount of subsidy. \r\n \r\nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected \"payas-you-go\" financing requirements. Contributions are not based on the actuarial liabilities (or funding excess) over a period not to exceed thirty years. \r\n \r\nThe combined active and retiree contribution rates established by the Board for employers participating in the School OPEB Funds were as follows for the fiscal year ended June 30, 2014: \r\n \r\nFor certificated teachers, librarians and regional educational service agencies and certain other eligible participants: \r\n \r\nJuly 2013 - June 2014 \r\n \r\n$945.00 per member per month \r\n \r\nFor noncertificated school personnel: \r\n \r\nJuly 2013 - June 2014 \r\n \r\n$596.20 per member per month \r\n \r\nNo additional contribution was required by the College for fiscal year 2014 nor contributed to the School OPEB fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \r\nThe following table summarizes Georgia Military College's combined active and retiree contributions for the health insurance plans for the years ending June 30, 2014, June 30, 2013, and June 30, 2012: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2014 2013 2012 \r\n \r\n100% 100% 100% \r\n \r\n$ \r\n \r\n2,399,543.40 \r\n \r\n$ \r\n \r\n1,844,149.72 \r\n \r\n$ \r\n \r\n1,376,640.23 \r\n \r\n- 15 - \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"D\" \r\n \r\nState Employees' Assurance Department \r\nSEAD-OPEB and SEAD-Active are cost-sharing multiple-employer defined benefit postemployment plans that were created in fiscal year 2007 by the Georgia General Assembly to provide term life insurance to eligible members of the ERS, Georgia Judicial Retirement System (JRS), and Legislative Retirement System (LRS). SEAD-OPEB provides benefits for retired and vested inactive members, and SEAD-Active provides benefits for active members. Effective July 1, 2009, no newly hired members of any State public retirement system are eligible for term line insurance under SEAD. Pursuant to Title 47 of the OCGA, benefit provisions of the plans were established and can be amended by State statute. \r\nContributions by plan members are established by the ERS Board of Trustees, up to the maximum allowed by statute (not to exceed 0.5% of earnable compensation). The ERS Board of Trustees establishes employer contribution rates, such rates which, when added to members' contributions shall not exceed 1% of earnable compensation. Contributions for fiscal year 2014 were based on June 30, 2011 actuarial valuations as follows: \r\n \r\nMember Rates ERS Old Plan Less: Offset Paid by Employer Net ERS Old Plan ERS New Plan, JRS, and LRS \r\n \r\nSEADOPEB \r\n0.45% -0.22% 0.23% 0.23% \r\n \r\nSEADOPEB \r\n0.05% -0.03% 0.02% 0.02% \r\n \r\nTotal SEAD \r\n0.50% -0.25% 0.25% 0.25% \r\n \r\nEmployer Rates \r\n \r\n0.00% \r\n \r\n0.00% \r\n \r\n0.00% \r\n \r\nThe ERS Board of Trustees voted and approved that the SEAD-OPEB contribution would be paid from existing assets of the Survivors Benefit Fund (SBF) instead of requiring payment by the employers. The contributions by SBF made on-behalf of the College for fiscal years 2013 and 2012 were estimated to be $272.27 and $569.13, respectively. There were no required employer contributions for the fiscal year ended June 30, 2014. \r\nNOTE 14: 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 Georgia Military College expects such amounts, if any, to be immaterial to its overall financial position. \r\nLitigation, claims and assessments filed against Georgia Military College, 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, 2014 \r\nDuring fiscal year 2002, upon advice of the Attorney General's Office, Georgia Military College required that full-time employees participate in Teachers Retirement System of Georgia. Previously, participation was elective by full-time employees. As a result of that change, a number of former fulltime employees and \"constructively qualified\" faculty members were eligible to \"purchase\" prior service credit (based on employment at Georgia Military College) in Teachers Retirement System of \r\n \r\n- 16 - \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"D\" \r\n \r\nGeorgia, and Georgia Military College became responsible for its share of the purchase. For fiscal year 2014, Georgia Military College's potential liability for its share of the purchase has been estimated at $431,071.36. \r\nNOTE 15: AFFILIATED ORGANIZATIONS \r\nThe Georgia Military College Foundation, Inc. is a legally separate, tax exempt organization whose activities primarily support Georgia Military College. 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, and GASB Statement No. 39, Determining Whether Certain Organizations are Component Units. Therefore, the financial statements of the affiliated organization are not included in these financial statements. Copies of the financial statements for the affiliated organization may be obtained from Georgia Military College. \r\n \r\n- 17 - \r\n \r\n (This page left intentionally blank) \r\n \r\n SUPPLEMENTARY INFORMATION - 19 - \r\n \r\n (This page left intentionally blank) \r\n \r\n Totals per Annual Supplement \r\nAccruals June 30, 2014 June 30, 2013 \r\nCompensated Absences June 30, 2014 June 30, 2013 \r\nAdjustments College Work Study Unidentified Variance \r\n \r\nGEORGIA MILITARY COLLEGE RECONCILIATION OF SALARIES AND TRAVEL \r\nYEAR ENDED JUNE 30, 2014 \r\n \r\nSCHEDULE \"1\" \r\n \r\nSALARIES $ 25,053,244.23 $ \r\n \r\nTRAVEL 263,661.47 \r\n \r\n824,697.41 -732,924.39 \r\n \r\n430,068.73 -396,097.08 \r\n \r\n-197,258.83 -1.25 \r\n \r\n$ 24,981,728.82 $ \r\n \r\n263,661.47 \r\n \r\n- 21 - \r\n \r\n  SECTION II ENTITY'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n  GEORGIA MILITARY COLLEGE ENTITY'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2014 \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-968-13-01 FA-968-13-02 \r\n \r\nPartially Resolved - See Corrective Action/Responses Partially Resolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nSPECIAL TESTS AND PROVISIONS Return of Title IV Funds U.S. Department of Education 84.SFA Student Financial Aid Cluster Program Finding Control Number: FA-968-13-01 \r\n \r\nThe College has reviewed procedures and implemented new processes to ensure that the calculations of refunds for the Title IV Federal program are correct. Management will monitor and review these processes to ensure compliance with federal regulations. \r\n \r\nThe above corrective plan was implemented during the fiscal year 2014 audit. The auditors did not find any problems with refund calculations being calculated improperly, so no new audit finding was issued in fiscal year 2014's engagement. The auditors did ask that we follow up with U.S. Department of Education and obtain clearance that the fiscal year 2013 audit finding was resolved. \r\n \r\nSPECIAL TESTS AND PROVISIONS Failure to Return Funds to a Lender U.S. Department of Education 84.032 Federal Family Education Loans Program (FFEL) Finding Control Number: FA-968-13-02 \r\n \r\nThe College has reviewed procedures and implemented new processes to ensure that the FFEL program funds that are not disbursed are properly returned to lenders as required. Management will monitor and review these processes to ensure compliance with federal regulations. \r\n \r\nThe above corrective plan was implemented during the fiscal year 2014 audit. The auditors did not find any problems with FFEL program funds, so no new audit finding was issued in fiscal year 2014's engagement. The auditors did ask that we follow up with U.S. Department of Education and obtain clearance that the fiscal year 2013 audit finding was resolved. \r\n \r\n  SECTION III FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\n \r\n  GEORGIA MILITARY COLLEGE SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\nYEAR ENDED JUNE 30, 2014 \r\nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\nOTHER ITEMS (NOTED FOR MANAGEMENT'S CONSIDERATION) \r\nWe observed several areas where deficiencies existed related to the bank reconciliation process. The College did not document the administrative review of reconciliations for several bank accounts. Several reconciliations did not contain preparation or approval dates. It was also noted that several of the accounts were not reconciled in a timely manner. The College should implement procedures to ensure that all bank reconciliations are reviewed and documented and are done in a timely manner. \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bg458-b2011-h2012-belec-p-btext","title":"Georgia Military College, Milledgeville, Georgia, management report for fiscal year ended June 30, 2012","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, Baldwin County, Milledgeville, 33.08014, -83.2321"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2011/2012"],"dcterms_description":["Began with fiscal year ended June 30, 2009.","For some years, report may be published instead called: Georgia Military College, Milledgeville, Georgia, independent accountants report on applying agreed-upon procedures for fiscal year ended ...","Fiscal year ended June 30, 2009 (online surrogate); title from PDF title page (Georgia Government Publications database, viewed June 29, 2020).","Fiscal year ended June 30, 2015 (online surrogate) (Received via FTP 1/14/16 from Georgia Dept. of Audits and Accounts); (Georgia Government Publications database, viewed August 30, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, GA : Georgia. Dept. of Audits and Accounts, 2012"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Georgia Military College--Appropriations and expenditures--Periodicals.","Georgia Military College--Auditing--Periodicals.","Georgia Military College--Finance--Periodicals.","Military education--Georgia--Auditing--Periodicals.","Military education--Georgia--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Georgia Military College, Milledgeville, Georgia, management report for fiscal year ended June 30, 2012"],"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_y-ga-ba800-b-pr1-bg458-b2011-h2012-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bg458-b2011-h2012-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"GEORGIA MILITARY COLLEGE \r\nMILLEDGEVILLE, GEORGIA \r\nMANAGEMENT REPORT FOR FISCAL YEAR ENDED JUNE 30, 2012 \r\nGeorgia Department of Audits and Accounts Russell W. Hinton State Auditor \r\n \r\n GEORGIA MILITARY COLLEGE - TABLE OF CONTENTS - \r\nSECTION I FINANCIAL LETTER OF TRANSMITTAL SELECTED FINANCIAL INFORMATION EXHIBITS A STATEMENT OF NET ASSETS B STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS C STATEMENT OF CASH FLOWS D SELECTED FINANCIAL NOTES SUPPLEMENTARY INFORMATION SCHEDULE 1 RECONCILIATION OF SALARIES AND TRAVEL \r\nSECTION II FINDINGS, QUESTIONED COSTS AND OTHER ITEMS SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\n \r\nPage \r\n2 3 5 6 \r\n21 \r\n \r\n  SECTION I FINANCIAL \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\nOctober 17, 2012 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly of Georgia Members of the Board of Trustees of the Georgia Military College \r\nand Major General Peter J. Boylan, President \r\nLadies and Gentlemen: \r\nAs part of our audit of 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, 2012, we have performed certain audit procedures at Georgia Military College. Accordingly, the financial statements and compliance activities of Georgia Military College 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\nThis Management Report contains information pertinent to the financial and compliance activities of Georgia Military College as of and for the year ended June 30, 2012. Information contained in this report is a by-product of our audit of 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\nThis report is intended solely for the information and use of management of Georgia Military College, members of the Board of Trustees of Georgia Military College and the appropriate accrediting regulatory agency and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully, \r\n \r\nGSG:as \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n  SELECTED FINANCIAL INFORMATION - 1 - \r\n \r\n GEORGIA MILITARY COLLEGE STATEMENT OF NET ASSETS \r\nJUNE 30, 2012 \r\nASSETS \r\nCurrent Assets Cash and Cash Equivalents Short-Term Investments Accounts Receivable, Net (Note 3) Receivables - Federal Financial Assistance Receivables - Other Prepaid Items Inventories \r\nTotal Current Assets \r\nNoncurrent Assets Cash and Cash Equivalents Investments Capital Assets, Net (Note 4) \r\nTotal Noncurrent Assets \r\nTotal Assets \r\nLIABILITIES \r\nCurrent Liabilities Accounts Payable Salaries Payable Deferred Revenue (Note 5) Funds Held for Others Lease Purchase Obligations Compensated Absences Notes Payable \r\nTotal Current Liabilities \r\nNoncurrent Liabilities Lease Purchase Obligations Notes Payable \r\nTotal Noncurrent Liabilities \r\nTotal Liabilities \r\nNET ASSETS \r\nInvested in Capital Assets, Net of Related Debt Restricted for: \r\nNonexpendable Unrestricted \r\nTotal Net Assets \r\n- 2 - \r\n \r\nEXHIBIT \"A\" \r\n \r\n$ 11,339,077.71 1,068,464.72 \r\n43,163.89 4,009,009.79 \r\n6,027.44 1,317,577.47 \r\n$ 17,783,321.02 \r\n \r\n$ \r\n \r\n36,064.54 \r\n \r\n776,989.22 \r\n \r\n60,416,197.79 \r\n \r\n$ 61,229,251.55 \r\n \r\n$ 79,012,572.57 \r\n \r\n$ 1,087,382.27 690,522.74 \r\n3,324,605.14 126,193.35 80,672.16 518,050.60 203,123.14 \r\n$ 6,030,549.40 \r\n \r\n$ \r\n \r\n167,992.80 \r\n \r\n5,792,538.06 \r\n \r\n$ 5,960,530.86 \r\n \r\n$ 11,991,080.26 \r\n \r\n$ 54,171,871.63 \r\n813,053.76 12,036,566.92 \r\n \r\n$ 67,021,492.31 \r\n \r\n GEORGIA MILITARY COLLEGE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS \r\nYEAR ENDED JUNE 30, 2012 \r\nOPERATING REVENUES \r\nStudent Tuition and Fees Less: Scholarship Allowances \r\nGrants and Contracts Federal State Nongovernmental \r\nAuxiliary Enterprises Residence Halls Bookstore Food Services Intercollegiate Athletics \r\nOther Operating Revenues \r\nTotal Operating Revenues \r\nOPERATING EXPENSES \r\nSalaries Faculty Staff \r\nEmployee Benefits Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation \r\nTotal Operating Expenses \r\nOperating Income (Loss) \r\nNONOPERATING REVENUES (EXPENSES) \r\nGrants and Contracts Federal State \r\nGifts Investment Income (Endowments, Auxiliary and Other) Interest Expense (Capital Assets) Other Nonoperating Revenues \r\nNet Nonoperating Revenues \r\nIncrease (Decrease) in Net Assets \r\nNet Assets - Beginning of Year \r\nNet Assets - End of Year \r\n \r\nEXHIBIT \"B\" \r\n \r\n$ 39,609,796.09 -16,506,746.27 \r\n3,974,531.60 6,283,072.16 \r\n321,635.03 \r\n755,163.16 3,672,200.64 1,456,013.28 \r\n77,603.12 446,038.96 \r\n$ 40,089,307.77 \r\n \r\n$ 10,913,315.10 11,116,306.57 4,600,062.79 375,074.28 11,342,156.17 1,511,264.18 14,469,202.67 2,399,448.72 \r\n$ 56,726,830.48 \r\n$ -16,637,522.71 \r\n \r\n$ 18,140,753.98 \r\n \r\n9,974.81 161,604.16 -283,811.26 365,747.13 \r\n \r\n$ 18,394,268.82 \r\n \r\n$ \r\n \r\n1,756,746.11 \r\n \r\n65,264,746.20 \r\n \r\n$ 67,021,492.31 \r\n \r\n- 3 - \r\n \r\n (This page left intentionally blank) \r\n \r\n GEORGIA MILITARY COLLEGE STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 2012 \r\nCASH FLOWS FROM OPERATING ACTIVITIES Tuition and Fees Grants and Contracts Sales and Services of Educational Departments Payments to Suppliers Payments to Employees Payments for Scholarships and Fellowships Other Receipts (Payments) \r\nNet Cash Provided (Used) by Operating Activities \r\nCASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Agency Funds Transactions Gifts and Grants Received for Other than Capital Purposes Other Nonoperating Receipts \r\nNet Cash Flows Provided (Used) by Noncapital Financing Activities \r\nCASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchases of Capital Assets Principal Paid on Capital Debt Interest Paid on Capital Debt \r\nNet Cash Provided (Used) by Capital and Related Financing Activities \r\nCASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sales and maturities of investments Purchase of investments Interest on Investments \r\nNet Cash Provided (Used) by Investing Activities \r\nNet Increase (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 PROVIDED (USED) BY OPERATING ACTIVITIES: \r\nOperating Income (Loss) Adjustments to Reconcile Operating Income to Net Cash \r\nProvided (Used) by Operating Activities Depreciation Expense Change in Assets and Liabilities: Accounts Receivable, Net Inventories Prepaid Items Salaries Payable Accounts Payable Deferred Revenue Compensated Absences \r\nNet Cash Provided (Used) by Operating Activities \r\nNONCASH ACTIVITY Fixed Assets Acquired by Incurring Capital Lease Obligations \r\n- 5 - \r\n \r\nEXHIBIT \"C\" \r\n \r\n$ 22,007,839.19 10,944,813.99 5,960,980.20 -20,784,150.64 -21,997,973.76 -11,342,156.17 458,193.94 \r\n$ -14,752,453.25 \r\n \r\n$ \r\n \r\n33,779.67 \r\n \r\n18,150,728.79 \r\n \r\n254,537.61 \r\n \r\n$ 18,439,046.07 \r\n \r\n$ -2,836,743.66 -272,426.09 -283,811.26 \r\n$ -3,392,981.01 \r\n \r\n$ \r\n \r\n1,576,206.08 \r\n \r\n-1,615,645.69 \r\n \r\n161,604.16 \r\n \r\n$ \r\n \r\n122,164.55 \r\n \r\n$ \r\n \r\n415,776.36 \r\n \r\n10,959,365.89 \r\n \r\n$ 11,375,142.25 \r\n \r\n$ -16,637,522.71 \r\n2,399,448.72 \r\n-1,022,673.76 76,442.97 -246.57 9,731.58 67,450.43 \r\n305,193.31 49,722.78 \r\n$ -14,752,453.25 \r\n \r\n$ \r\n \r\n179,691.99 \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nNATURE OF OPERATIONS Georgia Military College serves the state and national communities by providing its students with academic instruction that advances fundamental knowledge and by disseminating knowledge to the people of Georgia and throughout the country. \r\nREPORTING ENTITY Georgia Military College was created as a public authority and is an instrumentality of the State of Georgia and a public corporation. The Board of Trustees is composed of the Mayor of the City of Milledgeville and six additional members, one of which shall be elected for each of the six municipal voting districts of the City of Milledgeville. The government, control and management of Georgia Military College shall be vested in the Board of Trustees. Georgia Military College shall receive any designated funds appropriated by the General Assembly through the State Board of Regents. In order to incur debt, the Board of Trustees must first receive permission from the Georgia State Financing and Investment Commission, as required for all State authorities. Accordingly, Georgia Military College is considered a component unit of the State of Georgia reporting entity for financial reporting purposes because of the significance of its legal, operational, and financial relationships with the State of Georgia. These reporting entity relationships are defined in Section 2100 of the Governmental Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial Reporting Standards. \r\nNET ASSETS The College's net assets are classified as follows: \r\nInvested in capital assets, net of related debt: This represents the College's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. \r\nRestricted net assets - nonexpendable: Nonexpendable restricted net assets 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 College 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\nUnrestricted net assets: Unrestricted net assets represent resources derived from student tuition and fees, state appropriations, and sales and services of educational departments and auxiliary enterprises. These resources are used for transactions relating to the educational and general operations of the college and may be used at the discretion of the governing board to meet current expenses for those purposes. These resources also include auxiliary enterprises, which are substantially self-supporting activities that provide services for students, faculty and staff. \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 College's deposits may not be recovered. Funds belonging to the College 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\n \r\n- 6 - \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 2: DEPOSITS AND INVESTMENTS \r\n \r\nDEPOSITS 1. Bonds, bills, notes, certificates of indebtedness, or other direct obligations of the United \r\nStates or of the State of Georgia. \r\n \r\n2. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia. \r\n \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\n \r\n4. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia. \r\n \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\n \r\n6. Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation. \r\n \r\nThe Georgia Military College Board of Trustees is responsible for all details relative to furnishing the required depository protection for Georgia Military College. \r\n \r\nAt June 30, 2012, the carrying value of deposits was $12,440,317.23 and the bank balance was $12,817,375.52. Of the College's deposits, $12,424,814.62 was uninsured. Of these uninsured deposits, $12,424,814.62 were collateralized with securities held by the pledging financial institution's trust department or agent in the College's name. \r\n \r\nINVESTMENTS At June 30, 2012, the carrying value of the College's investment was $776,989.22, which is materially the same as fair value. These investments were comprised entirely of funds invested in the Century Bank and Trust Trustee Endowment as follows: \r\n \r\nInvestment Type \r\n \r\nFair Value \r\n \r\nFixed Income Securities Equity Funds \r\n \r\n$ \r\n \r\n462,563.14 \r\n \r\n314,426.08 \r\n \r\nTotal Investments \r\nCREDIT QUALITY RISK \r\n \r\n$ \r\n \r\n776,989.22 \r\n \r\nCredit Quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Georgia Military College does not have a formal policy for managing credit quality risk. \r\n \r\n- 7 - \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 2: DEPOSITS AND INVESTMENTS \r\nCUSTODIAL CREDIT RISK \r\nCustodial credit risk for investments is the risk that, in the event of a failure of the counterparty to a transaction, the College will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. The College does not have a formal policy for managing custodial credit risk for investments. At June 30, 2012, $776,989.22 of the College's applicable investments were uninsured and held by the investment's counterparty in the College's name. \r\nNOTE 3: ACCOUNTS RECEIVABLE \r\nAccounts receivable consisted of the following at June 30, 2012. \r\n \r\nStudent Tuition and Fees Federal, State and Private Funds \r\n \r\n$ \r\n \r\n3,655,773.69 \r\n \r\n573,888.83 \r\n \r\nLess Allowance for Doubtful Accounts \r\n \r\n$ \r\n \r\n4,229,662.52 \r\n \r\n177,488.84 \r\n \r\nNet Accounts Receivable \r\n \r\n$ \r\n \r\n4,052,173.68 \r\n \r\n- 8 - \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 4: CAPITAL ASSETS Following are the changes in the College's capital assets for the year ended June 30, 2012: \r\n \r\nBeginning Balance July 1, 2011 \r\n \r\nAdditions \r\n \r\nReductions \r\n \r\nEnding Balance June 30, 2012 \r\n \r\nCapital Assets, Not Being Depreciated: Land Capitalized Collections Construction Work-In-Progress \r\n \r\n$ \r\n \r\n584,795.98 $ \r\n \r\n96,369.86 $ \r\n \r\n63,187.35 \r\n \r\n0.00 \r\n \r\n973,645.93 \r\n \r\n0.00 $ \r\n \r\n681,165.84 63,187.35 \r\n973,645.93 \r\n \r\nTotal Capital Assets, Not Being Depreciated $ \r\n \r\n647,983.33 $ 1,070,015.79 $ \r\n \r\n0.00 $ 1,717,999.12 \r\n \r\nCapital Assets, Being Depreciated: Infrastructure Building and Building Improvements Facilities and Other Improvements Equipment Library Collections \r\n \r\n$ \r\n \r\n278,690.00 \r\n \r\n67,639,019.21 $ \r\n \r\n3,028,206.77 \r\n \r\n3,019,341.37 \r\n \r\n3,034,910.60 \r\n \r\n763,874.00 44,000.00 \r\n887,920.62 $ 250,625.24 \r\n \r\n$ \r\n215,753.51 22,843.00 \r\n \r\n278,690.00 68,402,893.21 \r\n3,072,206.77 3,691,508.48 3,262,692.84 \r\n \r\nTotal Assets Being Depreciated \r\n \r\n$ 77,000,167.95 $ 1,946,419.86 $ \r\n \r\n238,596.51 $ 78,707,991.30 \r\n \r\nLess: Accumulated Depreciation: Infrastructure Building and Building Improvements Facilities and Other Improvements Equipment Library Collections \r\n \r\n$ \r\n \r\n278,690.00 \r\n \r\n12,974,532.42 $ \r\n \r\n1,134,440.88 \r\n \r\n1,565,400.38 \r\n \r\n1,850,019.70 \r\n \r\n1,653,007.59 185,523.35 352,901.17 $ 208,016.61 \r\n \r\n$ \r\n169,896.47 22,843.00 \r\n \r\n278,690.00 14,627,540.01 \r\n1,319,964.23 1,748,405.08 2,035,193.31 \r\n \r\nTotal Accumulated Depreciation \r\n \r\n$ 17,803,083.38 $ 2,399,448.72 $ \r\n \r\n192,739.47 $ 20,009,792.63 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n$ 59,197,084.57 $ \r\n \r\n-453,028.86 $ \r\n \r\n45,857.04 $ 58,698,198.67 \r\n \r\nCapital Assets, Net \r\n \r\n$ 59,845,067.90 $ \r\n \r\n616,986.93 $ \r\n \r\nNOTE 5: DEFERRED REVENUE \r\n \r\nDeferred revenue consisted of the following at June 30, 2012. \r\n \r\n45,857.04 $ 60,416,197.79 \r\n \r\nPrepaid Tuition and Fees Other Deferred Revenue \r\n \r\n$ 3,124,083.00 200,522.14 \r\n \r\nTotal Deferred Revenue \r\n \r\n$ 3,324,605.14 \r\n \r\n- 9 - \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 6: LONG-TERM LIABILITIES The College's Long-Term liability activity for the year ended June 30, 2012 was as follows: \r\n \r\nBeginning Balance July 1, 2011 \r\n \r\nAdditions \r\n \r\nReductions \r\n \r\nEnding Balance June 30, 2012 \r\n \r\nCurrent Portion \r\n \r\nLeases Lease Obligations \r\n \r\n$ 164,949.75 $ 179,691.99 $ 95,976.78 $ 248,664.96 $ 80,672.16 \r\n \r\nOther Liabilities Compensated Absences Notes and Loans \r\n \r\n$ 468,327.82 $ 6,189,114.31 \r\n \r\n605,214.28 $ \r\n \r\n555,491.50 $ 518,050.60 $ 193,453.11 5,995,661.20 \r\n \r\n518,050.60 203,123.14 \r\n \r\nTotal \r\n \r\n$ 6,657,442.13 $ 605,214.28 $ 748,944.61 $ 6,513,711.80 $ 721,173.74 \r\n \r\nTotal Long-Term Obligations \r\n \r\n$ 6,822,391.88 $ 784,906.27 $ 844,921.39 $ 6,762,376.76 $ 801,845.90 \r\n \r\nNOTE 7: NET ASSETS \r\n \r\nChanges in Net Asset activity for the year ended June 30, 2012 are as follows: \r\n \r\nBeginning Balance July 1, 2011 \r\n \r\nAdditions \r\n \r\nReductions \r\n \r\nEnding Balance June 30, 2012 \r\n \r\nInvested in Capital Assets Net of Related Debt \r\n \r\n$ 53,491,003.84 $ 906,416.82 $ 225,549.03 $ \r\n \r\n54,171,871.63 \r\n \r\nRestricted Net Assets \r\n \r\n794,443.53 \r\n \r\n26,485,826.70 \r\n \r\n26,467,216.47 \r\n \r\n813,053.76 \r\n \r\nUnrestricted Net Assets \r\n \r\n10,979,298.83 \r\n \r\n40,342,822.61 \r\n \r\n39,285,554.52 \r\n \r\n12,036,566.92 \r\n \r\nTotal Net Assets \r\n \r\n$ 65,264,746.20 $ 67,735,066.13 $ 65,978,320.02 $ \r\n \r\n67,021,492.31 \r\n \r\nNOTE 8: LEASE OBLIGATIONS \r\n \r\nGeorgia Military College is obligated under various operating leases for the use of real property (land, buildings, and office facilities) and 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 2012 and 2017. Expenses for fiscal year 2012 were $95,380.95 of which $16,407.97 represented interest. Total principal paid on capital leases was $78,972.98 for the fiscal year ended June 30, 2012. Interest rates range from 1.94 percent to 12.62 percent. Capital Lease obligations were also reduced $17,003.80 through the cancellation of leases and return of equipment. \r\n \r\n- 10 - \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 8: LEASE OBLIGATIONS \r\nOPERATING LEASES Georgia Military College's noncancellable operating leases provide for renewal options for periods from one to ten 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 business equipment and buildings. \r\nNoncancellable operating lease rental expenses in 2012 were $2,392,357.06 for real property and $159.00 for office equipment. \r\nFUTURE COMMITMENTS Future commitments for capital leases (which here and on the Statement of Net Assets include other installment purchase agreements) and for noncancellable operating leases having remaining terms in excess of one year as of June 30, 2012, were as follows: \r\n \r\nReal Property and Equipment \r\n \r\nCapital \r\n \r\nOperating \r\n \r\nLeases \r\n \r\nLeases \r\n \r\nYear Ending June 30: 2013 2014 2015 2016 2017 2018 - 2022 \r\n \r\n$ 95,583.01 $ 2,323,512.98 81,454.56 1,977,398.44 58,380.75 1,860,719.65 37,097.74 1,745,964.59 8,803.68 1,148,847.96 2,218,669.53 \r\n \r\nTotal Minimum Lease Payments \r\n \r\n$ 281,319.74 $ 11,275,113.15 \r\n \r\nLess: Interest \r\n \r\n32,654.78 \r\n \r\nPrincipal Outstanding \r\n \r\n$ 248,664.96 \r\n \r\nNOTE 9: NOTES PAYABLE \r\n \r\nNotes payable consisted of the following at June 30, 2012: \r\n \r\nCollege note payable secured by Baugh Barracks, dated July 2006, payable in monthly installments of $38,404.70, matures June 3, 2015, interest rate 4.310%. \r\n \r\nNotes Payable Balance \r\n \r\n$ 5,995,661.20 \r\n \r\n- 11 - \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 9: NOTES PAYABLE Maturity Information The scheduled maturities of Baugh Barracks notes payable are as follows: \r\n \r\nTotal Principal \r\n \r\nInterest \r\n \r\nTotal Payments \r\n \r\n2013 2014 2015 \r\n \r\n$ \r\n \r\n203,123.14 $ 257,733.26 $ 460,856.40 \r\n \r\n212,179.28 \r\n \r\n248,677.12 \r\n \r\n460,856.40 \r\n \r\n5,580,358.78 \r\n \r\n239,832.32 5,820,191.10 \r\n \r\n$ \r\n \r\n5,995,661.20 $ 746,242.70 $ 6,741,903.90 \r\n \r\nNOTE 10: RETIREMENT PLANS \r\n \r\nGeorgia Military College participates in various retirement plans administered by the State of Georgia under two major retirement systems: Employees' Retirement System of Gerogia (ERS System) and Teachers' Retirement System of Georgia. 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 system offices. The significant retirement plans that Georgia Military College 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\n \r\nEMPLOYEES' RETIREMENT SYSTEM OF GEORIGA \r\n \r\nThe ERS System is comprised of individual retirement systems and plans covering substantially all employees of the State of Georgia except for teachers and other employees covered by the Teachers' Retirement System of Georgia. One of the ERS System plans, the Employee's Retirement System of Georgia (ERS), is a cost-sharing multiple-employer defined benefit pension plan that was 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 and has the powers and privileges of a corporation. ERS acts pursuant to statutory direction and guidelines, which may be amended prospectively for new hires but for existing members and beneficiaries may be amended in some aspects only subject to potential application of certain constitutional restraints against impairment of contract. \r\n \r\nOn November 20, 1997, the Board created the Supplemental Retirement Benefit Plan (SRBP-ERS) of ERS. SRBP-ERS was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of ERS. The purpose of the SRBP-ERS is to provide retirement benefits to employees covered by ERS whose benefits are otherwise limited by IRC Section 415. Beginning January 1, 1998, all members and retired former members in ERS are eligible to participate in the SRBP-ERS whenever their benefits under ERS exceed the limitation on benefits imposed by IRC Section 415. \r\n \r\nThe benefit structure of ERS is established by the Board of Trustees under statutory guidelines. Unless the employee elects otherwise, an employee who currently maintains membership with ERS based upon State employment that started prior to July 1, 1982, is an \"old plan\" member subject to the 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 the modified plan provisions. Effective January 1, 2009, newly hired State employees, as well as rehired State employees who did not \r\n \r\n- 12 - \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 10: RETIREMENT PLANS \r\nEMPLOYEES' RETIREMENT SYSTEM OF GEORIGA \r\nmaintain eligibility for the \"old\" or \"new\" plan, are members of the Georgia State Employee's Pension and Savings Plan (GSEPS). ERS members hired prior to January 1, 2009, also have the option to irrevocably change their membership to the GSEPS plan. \r\nUnder the old plan, new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of credible 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 a formula adopted by the Board of Trustees for such purpose. The formula considers the monthly average of the member's highest 24 consecutive calendar months of salary, the number of years of creditable service, and the member's age at retirement. Post-retirement cost-of-living adjustments may be made to member's 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\nMember contribution rates are set by law. Member contributions under the old plan are 4% of the annual compensation up to $4,200 plus 6% of annual compensation in excess of $4,200. Under the old plan, the College pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these College 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 1.50% of annual compensation. The College is required to contribute at a specified percentage of active member payroll established by the Board of Trustees determined annually in accordance with actuarial valuation and minimum funding standards as provided by law. These College contributions are not at any time refundable to the member or his/her beneficiary. \r\nEmployer contributions required for fiscal year 2012 were based on the June 30, 2009 actuarial valuation as follows: \r\n \r\nOld Plan* New Plan GSEPS \r\n \r\n11.63% 11.63% \r\n7.42% \r\n \r\n* 6.88% exclusive of contributions paid by the employer on behalf of old plan members \r\nMembers become vested after 10 years of service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \r\n \r\n- 13 - \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 10: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nThe Teachers' Retirement System of Georgia (TRS) is a cost-sharing multiple-employer defined benefit pension plan created in 1943 by an act of the General Assembly of Georgia to provide retirement benefits for qualifying employees in educational service. A Board of Trustee comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS. \r\nOn October 25, 1996, the Board created the Supplemental Retirement Benefit Plan of the Georgia Teachers' Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1, 1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits. \r\nTRS provided service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by State statute. A member 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. A member is eligible for early retirement after 25 years of creditable service. \r\nNormal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 60 or by 7% for each year or fraction thereof by which the member has less than 30 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available. \r\nTRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 10 years of service. If a member terminates with less than 10 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2012, were 5.53% of annual salary. Employer contributions required for fiscal year 2012 were 10.28% of annual salary as required by the June 30, 2009, actuarial valuation. \r\nThe following table summarizes Georgia Military College's contributions by defined benefit plan for the years ending June 30, 2012, June 30, 2011, and June 30, 2009: \r\n \r\nFiscal Year \r\n \r\nTRS Required Contribution \r\n \r\nPercentage Contributed \r\n \r\nERS Required Contribution \r\n \r\nPercentage Contributed \r\n \r\n2012 2011 2010 \r\n \r\n$ 1,648,500.13 $ 1,523,651.00 $ 1,309,083.00 \r\n \r\n100% $ 100% $ 100% $ \r\n \r\n11,318.27 7,731.95 8,538.65 \r\n \r\n100% 100% 100% \r\n \r\n- 14 - \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 11: POST-EMPLOYMENT BENEFITS \r\n \r\nThe College participates in the following State of Georgia post-employment benefit plans: the Georgia Retiree Health Benefit Fund (administered by the Department of Community Health) and the State Employee's Assurance Department  OPEB (administered by the ERS System). Separate financial reports that include the applicable financial statements and required supplementary information for these plans are publicly available and may be obtained from the respective system offices. \r\nGeorgia Retiree Health Benefit Fund The Georgia Retiree Health Benefit Fund (GRHBF) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers retired employees of the State including all departments, agencies and local school systems. GRHBF provides health insurance benefits to eligible retirees and their qualified beneficiaries through the health insurance plan for State employees. The Official Code of Georgia annotated (OCGA) assigns the authority to establish and amend the benefit provisions of the employees' health insurance plan (including benefits for retirees) to the Board of Community Health (Board). \r\n \r\nThe contribution requirements of the plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately 37 percent of the cost of health insurance coverage. \r\nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rate is established to fund both the active and retired employee health insurance plans based on projected \"pay-as-you-go\" financing requirements. The combined rates for the active and retiree plans for the fiscal year ended June 30, 2012, were as follows: \r\n \r\nCertificated Employees: \r\n \r\nJuly 2011 August 2011 - March 2012 April 2012 - May 2012 June 2012 \r\n \r\n18.534% of covered payroll for August coverage 24.000% of covered payroll for September - April coverage \r\n3.958% of covered payroll for May - June coverage $912.34 per covered employee/per month for July coverage \r\n \r\nNon-certificated Employees: \r\n \r\nJuly 2011 - August 2011 September 2011 - May 2012 June 2012 \r\n \r\n$246.20 per covered employee/per month for August - September coverage $296.20 per covered employee/per month for October - June coverage $592.20 per covered employee/per month for July coverage \r\n \r\nNo additional contribution was required by the Board for fiscal year 2012 nor contributed to GRHBF to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the State plan for other post-employment benefits and are subject to appropriation. \r\n \r\n- 15 - \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 11: POST-EMPLOYMENT BENEFITS \r\nGeorgia Retiree Health Benefit Fund The following table summarized Georgia Military College's combined active and retiree contributions to the health insurance plans for the years ending June 30, 2012, June 30, 2011, and June 30, 2010. \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2012 2011 2010 \r\n \r\n100% \r\n \r\n$ \r\n \r\n100% \r\n \r\n$ \r\n \r\n100% \r\n \r\n$ \r\n \r\n1,376,640.23 1,049,681.20 \r\n785,872.96 \r\n \r\nState Employees' Assurance Department  OPEB State Employees' Assurance Department - OPEB (SEAD-OPEB) is a cost-sharing multiple-employer defined benefit post-employment plan that was created in fiscal year 2007 by the Georgia General Assembly to provide term life insurance to retired and vested inactive members of Employees' (ERS), Judicial (JRS), and Legislative (LRS) Retirement Systems. Eligibility was amended to exclude GSEPS members of ERS effective January 1, 2009, and to exclude members of JRS and LRS hired on or after July 1, 2009. Pursuant to Title 47 of the OCGA, benefit provisions of the plan were established and can be amended by State statute. \r\n \r\nContributions by plan members are established by the ERS Board of Trustees, up to the maximum allowed by statute (not to exceed 0.5% of earnable compensation). The ERS Board of Trustees establishes employer contribution rates, such rates which, when added to members' contributions, shall not exceed 1% of earnable compensation. For the fiscal year ended June 30, 2012, contributions of ERS \"old plan\" members were 0.45% of earnable compensation, 0.22% of which was paid by the employer. Contributions of ERS \"new plan\" members and of members of the Judicial and Legislative Retirement Systems were 0.23% of earnable compensation. \r\n \r\nThe SEAD-OPEB annual required contribution was 0.61% of payroll for fiscal year 2012 based on the actuarial valuation as of June 30, 2009. The ERS Board of Trustees voted and approved that the contribution would be paid from existing assets of the Survivors Benefit Fund (SBF) instead of requiring payment by the employers. The contribution by SBF made on-behalf of Georgia Military College for fiscal year 2012 was estimated to be $569.13. There were no required employer contributions for the fiscal years ended June 30, 2011, and 2010. \r\n \r\nNOTE 12: CONTINGENCIES \r\n \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 expenditures which are disallowed under grant terms. The amount of expenditures which may be disallowed by the grantor cannot be determined at this time although Georgia Military College expects such amounts, if any, to be immaterial to its overall financial position. \r\n \r\nLitigation, claims and assessments filed against Georgia Military College, 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, 2012. \r\n \r\n- 16 - \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 12: CONTINGENCIES \r\nDuring fiscal year 2002, upon advice of the Attorney General's Office, Georgia Military College required that full-time employees participate in Teachers' Retirement System of Georgia. Previously, participation was elective by full-time employees. As a result of that change, a number of former fulltime employees and \"constructively qualified\" faculty members were eligible to \"purchase\" prior service credit (based on employment at Georgia Military College) in Teachers' Retirement System of Georgia, and Georgia Military College became responsible for its share of the purchase. For fiscal year 2012, Georgia Military College's potential liability for its share of the purchase has been estimated at $590,083.37. \r\nNOTE 13: AFFILIATED ORGANIZATIONS \r\nThe Georgia Military College Foundation, Inc. is a legally separate, tax exempt organization whose activities primarily support Georgia Military College. This affiliated organization is considered a potential component unit of the State of Georgia in accordance with GASB Statement No. 39, Determining Whether Certain Organizations are Component Units. Therefore, the financial statements of this affiliated organization are not included in these financial statements. Copies of the financial statements for the affiliated organization may be obtained from Georgia Military College. \r\n \r\n- 17 - \r\n \r\n (This page left intentionally blank) \r\n \r\n SUPPLEMENTARY INFORMATION - 19 - \r\n \r\n (This page left intentionally blank) \r\n \r\n Totals per Annual Supplement \r\nAccruals June 30, 2012 June 30, 2011 \r\nCompensated Absences June 30, 2012 June 30, 2011 \r\nAdjustments College Work Study Unidentified Variance \r\n \r\nGEORGIA MILITARY COLLEGE RECONCILIATION OF SALARIES AND TRAVEL \r\nYEAR ENDED JUNE 30, 2012 \r\n \r\nSCHEDULE \"1\" \r\n \r\nSALARIES $ 22,211,997.72 $ \r\n \r\nTRAVEL 374,997.28 \r\n \r\n690,522.74 -680,791.16 \r\n \r\n481,236.03 -435,046.74 \r\n \r\n-231,123.84 -7,173.08 \r\n \r\n77.00 \r\n \r\n$ 22,029,621.67 $ \r\n \r\n375,074.28 \r\n \r\n- 21 - \r\n \r\n  SECTION II FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\n \r\n  GEORGIA MILITARY COLLEGE SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\nYEAR ENDED JUNE 30, 2012 \r\nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\nOTHER ITEMS (NOTED FOR MANAGEMENT'S CONSIDERATION) \r\nFailure to Reconcile Salaries to the General Ledger Georgia Military College failed to reconcile the detailed listing of salaries and travel submitted to the Georgia Department of Audits and Accounts to the amounts reported on the general ledger. The Official Code of Georgia Annotated (O.C.G.A.) 50-6-27 states in part: \"Each...college...is required and directed to submit to the state auditor, in a format prescribed by the state auditor, a listing of all personnel of such...college showing name, title or functional area, salary and travel expense for each individual\". Salaries and Travel reported to the Department of Audits were not reconciled with amounts recorded in the financial statements. Variances of $7,173.08 in Salaries and $77.00 in Travel were noted. The College should ensure that all salaries and travel reported to the Georgia Department of Audits and Accounts are reconciled to the amounts reported on the general ledger. \r\nFailure to Properly Reconcile Bank Statements We observed several areas where deficiencies existed related to the bank reconciliation process. The College did not properly indicate administrative review of reconciliations for several bank accounts. It was also noted that several of the accounts were not reconciled in a timely manner nor reconciled correctly. The College should implement procedures to ensure that all bank reconciliations are properly reviewed and documented, are performed in a timely manner, and properly reconciled to the financial statements. \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bg458-b2010-h2011","title":"Georgia Military College, Milledgeville, Georgia, management report for fiscal year ended June 30, 2011","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, Baldwin County, Milledgeville, 33.08014, -83.2321"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2010/2011"],"dcterms_description":["Began with fiscal year ended June 30, 2009.","For some years, report may be published instead called: Georgia Military College, Milledgeville, Georgia, independent accountants report on applying agreed-upon procedures for fiscal year ended ...","Fiscal year ended June 30, 2009 (online surrogate); title from PDF title page (Georgia Government Publications database, viewed June 29, 2020).","Fiscal year ended June 30, 2015 (online surrogate) (Received via FTP 1/14/16 from Georgia Dept. of Audits and Accounts); (Georgia Government Publications database, viewed August 30, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, GA : Georgia. Dept. of Audits and Accounts, 2011"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Georgia Military College--Appropriations and expenditures--Periodicals.","Georgia Military College--Auditing--Periodicals.","Georgia Military College--Finance--Periodicals.","Military education--Georgia--Auditing--Periodicals.","Military education--Georgia--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Georgia Military College, Milledgeville, Georgia, management report for fiscal year ended June 30, 2011"],"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_y-ga-ba800-b-pr1-bg458-b2010-h2011"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bg458-b2010-h2011"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"GEORGIA MILITARY COLLEGE \r\nMILLED GEVILLE , \r\nGEORGIA \r\nMANAGEMENT REPORT \r\nFOR FISCAL YEAR ENDED \r\nJUNE 30,2011 \r\nGeorgia Departmc?.nt of Audits a d Accounts \r\n \r\n GEORGIA MILITARY COLLEGE \r\n- TABLE OF CONTENTS - \r\nSECTION I FINANClAL LElTER OF TRANSMllTAL SELECTED FINANCIAL INFORMATION EXHlBITS A STATEMENT OF NET ASSETS B STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS C STATEMENT OF CASH FLOWS D SELECTED FINANCIAL NOTES SUPPLEMENTARY INFORMATION SCHEDULE 1 RECONCILIATION OF SALARIES AND TRAVEL \r\nSECTION II FINDINGS, QUESTIONED COSTS AND OTHER ITEMS SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\n \r\n SECTION I FINANCIAL \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENOTF AUDITSAND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1- 156 \r\nAtlanta, Georgia 30334-8400 \r\nNovember 1 , 2 0 1 1 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly of Georgia Members of the Board of Trustees of the Georgia Military College \r\nand Major General Peter J. Boylan, President \r\nLadies and Gentlemen: \r\nAs part of our audits of 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, 2011, we have performed certain audit procedures at Georgia Military College. Accordingly, the financial statements and compliance activities of Georgia Military College 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\nThis Management Report contains information pertinent to the financial and compliance activities of Georgia Military College as of and for the year ended June 30, 2011. Information contained in this report is a by-product of our audit of 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\nThis report is intended solely for the information and use of the management of Georgia Military College, members of the Board of Trustees of Georgia Military College and the appropriate accrediting regulatory agency and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n \r\nRWH: as \r\n \r\n~ u d s We .~H~inton, CPA, CGFM State Auditor \r\n \r\n SELECTED FINANCIAL INFORMATION \r\n \r\n GEORGIA MILITARY COLLEGE STATEMENT OF NET ASSETS \r\nJUNE 3 0 , 2 0 1 1 \r\nASSETS \r\nCurrent Assets Cash and Cash Equivalents Short-Term Investments Accounts Receivable, Net (Note 3) \r\nReceivables - Federal Financial Assistance Receivables - Other \r\nPrepaid Items Inventories \r\nTotal Current Assets \r\nNoncurrent Assets Noncurrent Cash Investments Capital Assets, Net (Note 4) \r\nTotal Noncurrent Assets \r\nTotal Assets \r\nLIABILITIES \r\nCurrent Liabilities Accounts Payable Salaries Payable Deferred Revenue (Note 5) Funds Held for Others Lease Purchase Obligations Compensated Absences Notes Payable \r\nTotal Current Liabilities \r\nNoncurrent Liabilities Lease PurchaseObligations Notes Payable \r\nTotal Noncurrent Liabilities \r\nTotal Liabil~ties \r\nNET ASSETS \r\nInvested in Capital Assets, Net of Related Debt Restricted for: \r\nNonexpendable Unrestricted \r\nTotal Net Assets \r\n \r\nEXHIBIT \"A\" \r\n \r\n GEORGIA MILITARY COLLEGE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS \r\nYEAR ENDEDJUNE 30,2011 \r\nOPERATING REVENUES \r\nStudent Tuition and Fees Less: Scholarship Allowances \r\nGrants and Contracts Federal State Other \r\nAuxiliary Enterprises Residence Halls Bookstore Food Services Intercollegiate Athletics \r\nOther Operating Revenues \r\nTotal Operating Revenues \r\nOPERATING EXPENSES \r\nSalaries Faculty Staff \r\nEmployee Benefits Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation \r\nTotal Operating Expenses \r\nOperating Income (Loss) \r\nNONOPERATING REVENUES (EXPENSES) \r\nGrants and Contracts Federal State \r\nGifts Investment Income (Endowments,Auxiliary and Other) Interest Expense (Capital Assets) Other Nonoperating Revenues Other Nonoperating Expenses \r\nNet Nonoperating Revenues \r\nIncome (Loss) Before Other Revenues, Expenses, Gains, or Losses \r\nCapital Grants and Gifts State \r\nIncrease(Decrease) in Net Assets \r\nNet Assets - Beginningof Year \r\nNet Assets - End of Year \r\n \r\nEXHIBIT \"B\" \r\n \r\n GEORGIA MILITARY COLLEGE STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30.2011 \r\nCASH FLOWS FROM OPERATING ACTIVITIES Tuition and Fees Grants and Contracts Sales and Services Paymentsto Suppliers Paymentsto Employees Payments for Scholarships and Fellowships Other Receipts (Payments) \r\nNet Cash Provided (Used) by OperatingActivities \r\nCASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Agency Funds Transactions Gifts and Grants Receivedfor Other than Capital Purposes Other Nonoperating Receipts \r\nNet Cash Flows Provided (Used) by Noncapital Financing Activities \r\nCASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchases of Capital Assets Principal Paid on Capital Debt lnterest Paid on Capital Debt \r\nNet Cash Provided (Used)by Capital and Related Financing Actlvit~es \r\nCASH FLOWS FROM INVESTING ACTIVITIES Proceeds from Sales and Maturities of Investments Purchase of InveStmentS Interest on Investments \r\nNet Cash Provlded (Used) by lnvest~ngActivities \r\nNet Increase (Decrease) in Cash \r\nCash and Cash Equivalents - Beginning of Year \r\nCash and Cash Eauivalents - End of Year \r\nRECONCILIATIONOF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: \r\nOperating Income (Loss) Adjustments to Reconcile Operating lncome to Net Cash \r\nProvided (Used) by Operating Act~v~ties Depreciation Expense Change in Assets and Liabilities: Accounts Receivable. Net Inventories Prepaid Items Salaries Payable Accounts Payable Deferred Revenue Compensated Absences \r\nNet Cash Provided (Used)by Operating Actlvlties \r\nNONCASH ACTIVITY Fixed Assets Acqulred by Incurring Capital Lease Obligations Gift of Capital Assets Reducing Proceeds of Capital Grants and Gifts \r\n \r\n GEORGIA MILlTARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30,2011 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGN1FlCANT ACCOUNTING POLICIES \r\nNATURE OF OPERATIONS Georgia Military College serves the state and national communities by providing its students with academic instruction that advances fundamental knowledge and by disseminating knowledge to the people of Georgia and throughout the country. \r\nREPORTING ENTITY Georgia Military College was created as a public authority and is an instrumentality of the State of Georgia and a public corporation. The Board of Trustees is composed of the Mayor of the City of Milledgeville and six additional members, one of which shall be elected for each of the six municipal voting districts of the City of Milledgeville. The government, control and management of Georgia Military College shall be vested in the Board of Trustees. Georgia Military College shall receive any designated funds appropriated by the General Assembly through the State Board of Regents. In order to incur debt, the Board of Trustees must first receive permission from the Georgia State Financing and Investment Commission, as required for all State authorities. Accordingly, Georgia Military College is considered a component unit of the State of Georgia reporting entity for financial reporting purposes because of the significance of its legal, operational, and financial relationships with the State of Georgia. These reporting entity relationships are defined in Section 2100 of the Governmental Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial Reporting Standards. \r\nN ET ASSETS The College's net assets are classified as follows: \r\nInvested in capital asseh, net of related debt: This represents the College's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. \r\nRestriLt.net asse\u0026 - nonexpendable: Nonexpendable restricted net assets consist of endowment \r\nand 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 College may accumulate as much of the annual net income of an institutional fund as is prudent under the standard established by Code Section 44-15-7of Annotated Code of Georgia. \r\nUnrestridednet assets: Unrestricted net assets represent resources derived from student tuition and fees, state appropriations, and sales and services of educational departments and auxiliary enterprises. These resources are used for transactions relating to the educational and general operations of the College and may be used at the discretion of the governing board to meet current expenses for those purposes. These resources also include auxiliary enterprises, which are substantially self-supporting activities that provide services for students, faculty and staff. \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 2: DEPOSITS AND INVESTMENTS \r\n \r\nDEPOSITS The custodial credit risk for deposits is the risk that in the event of a bank failure, the College's deposits may not be recovered. Funds belonging to the College 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\n \r\n1. Bonds, bills, notes, certificates of indebtedness, or other direct obligations of the United States or of the State of Georgia. \r\n \r\n2. \r\n \r\nBonds, bills, notes, certificates of indebtedness or other obligations of the counties or \r\n \r\nmunicipalities of the State of Georgia. \r\n \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\n \r\n4. \r\n \r\nIndustrial revenue bonds and bonds of development authorities created by the laws of the \r\n \r\nState of Georgia. \r\n \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\n \r\n6. Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation. \r\n \r\nThe Georgia Military College Board of Trustees is responsible for all details relative to furnishing the required depository protection for Georgia Military College. \r\n \r\nAt June 30, 2011, the carrying value of deposits was $12,008,937.73 and the bank balance was $12,349,367.00. Of the College's deposits, $11,821,819.20 were uninsured. Of these uninsured deposits, $11,819,968.18 were collateralized with securities held by the pledging financial institution's trust department or agent in the College's name, and $1,851.02 were uncollateralized. \r\n \r\nINVESTMENTS \r\n \r\nAt June 30, 2011, the carrying value of the College's investment was $613,276.97, which is materially the same as fair value. These investments were comprised entirely of funds invested in the Century Bank and Trust Trustee Endowmentas follows: \r\n \r\nInvestment Type \r\n \r\nFair Value \r\n \r\nFixed Income Securities \r\n \r\n$ \r\n \r\n288,414.68 \r\n \r\nEquity Funds \r\n \r\n324,862.29 \r\n \r\nTotal Investments \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30,2011 \r\n \r\nEXHIBIT \"Dm \r\n \r\nCREDIT QUALITY RlSK \r\nCredit quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Georgia Military College does not have a formal policy for managing credit quality risk. \r\nCUSTODIAL CREDIT RlSK \r\nCustodial credit risk for investments is the risk that, in the event of a failure of the counterparty to a transaction, the College will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. The College does not have a formal policy for managing custodial credit risk for investments. At June 30, 2011, $613,276.97 of the College's applicable investments were uninsured and held by the investment's counterparty in the College's name. \r\nNOTE 3: ACCOUNTS RECEIVABLE \r\nAccounts receivable consisted of the following at June 30, 2011. \r\nStudent Tuition and Fees Federal, State and Private Funds \r\n \r\nLess Allowance for Doubtful Accounts Net Accounts Receivable \r\n \r\n$ 3,029,499.92 \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2011 \r\n \r\nEXHIBlT \"D\" \r\n \r\nNOTE 4: CAPITAL ASSETS Following are the changes in the College's capital assets for the year ended June 30, 2011: \r\n \r\nBeginning Balance July 1,2010 \r\n \r\nAdditions \r\n \r\nReductions \r\n \r\nEnding Balance June 30,2011 \r\n \r\nCapital Assets, Not Being Depreciated: Land Capitalized Collections Construction Work-In-Progress \r\n \r\n$ \r\n \r\n577.082.52 $ \r\n \r\n63,187.35 \r\n \r\n143.125.13 \r\n \r\n7,713.46 \r\n \r\n$ \r\n \r\n$ 143.125.13 \r\n \r\n584,795.98 63,187.35 0.00 \r\n \r\nTotal Capital Assets, Not Being Depreciated $ \r\n \r\n783,395.00 $ \r\n \r\n7,713.46 $ 143,125.13 $ \r\n \r\n647,983.33 \r\n \r\nCapital Assets, Being Depreclated: Infrastructure Building and Building Improvements Facilitiesand Other Improvements Equlprnent Library Collections \r\n \r\n$ 278,690.00 47,011,190.70$ 21,018,410.01$ 2,564,287.77 463.919.00 2,530,298.32 692.391.37 2,795,669.20 301,387.40 \r\n \r\n$ \r\n390,581.50 \r\n203.348.32 62.146.00 \r\n \r\n278,690.00 67,639,019.21 \r\n3,028,206.77 3,019,341.37 3,034,910.60 \r\n \r\nTotal Assets Be~ngDepreciated \r\n \r\n$ 55,180,135.99$ 22,476,107.78$ 656,075.82$ 77,000.167.95 \r\n \r\nLess: Accumulated Depreciation: Infrastructure Building and Building Improvements Facilities and Other Improvements Equipment Library Collections \r\n \r\n$ 278.690.00 \r\n \r\n11,809,172.56$ 1,433,107.10$ \r\n \r\n969,113.23 \r\n \r\n165,327.65 \r\n \r\n1,437.812.93 305.144.10 \r\n \r\n1,724,816.74 187,348.96 \r\n \r\n$ \r\n267,747.24 \r\n177,556.65 62,146.00 \r\n \r\n278,690.00 12,974,532.42 \r\n1,134,440.88 1,565,400.38 1,850,019.70 \r\n \r\nTotal Accumulated Depreciation \r\n \r\n$ 16,219.605.46$ 2,090,927.81$ 507,449.89 $ 17,803,083.38 \r\n \r\nTotal Capital Assets, Be~ngDeprec~ated,Net \r\n \r\nCapital Assets, Net \r\n \r\nNOTE 5: DEFERRED REVENUE Deferred revenue consisted of the following a t June 30, 2011. \r\nPrepaid Tuition and Fees Other Deferred Revenue \r\nTotal Deferred Revenue \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30,2011 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 6: LONG-TERM LIABILITIES The College's Long-Term liability activity for the year ended June 30, 2 0 1 1 was as follows: \r\n \r\nBeginning Balance July 1, 2010 \r\n \r\nAdditions \r\n \r\nReduct~ons \r\n \r\nEnding Balance June 30, 2011 \r\n \r\nCurrent Portion \r\n \r\nLeases Lease Obligations \r\n \r\n$ 218,551.58 $ \r\n \r\n67,980.81 $ 121,582.64 $ 164,949.75 $ 61,003.62 \r\n \r\nOther L~abilities Compensated Absences Notes Payable \r\n \r\n$ 412,338.65 $ 6,375,024.24 \r\n \r\n549,561.69 $ 493,572.52 $ 468,327.82 $ 468,327.82 185,909.93 6,189,114.31 193,738.21 \r\n \r\nTotal \r\n \r\nTotal LoneTerm Obligations $ 7,005,914.47 $ 617,542.50 $ 801.065.09 $ 6,822,39188 $ 723,069.65 \r\n \r\nNOTE 7: NET ASSETS \r\n \r\nChanges in Net Asset activity for the year ended June 30, 2 0 1 1are as follows: \r\n \r\nBeginning Balance July 1,2010 \r\n \r\nAdditions \r\n \r\nReductions \r\n \r\nEnding Balance June 30,2011 \r\n \r\nInvested in Capital Assets Net of Related Debt \r\n \r\nRestricted Net Assets \r\n \r\n689.567.93 24,461.452.97 24,356,577.37 \r\n \r\n794,443.53 \r\n \r\nUnrestricted Net Assets \r\n \r\nTotal Net Assets \r\nNOTE 8: LEASE OBLIGATIONS \r\n \r\nGeorgia Military College is obligated under various operating leases for the use of real property (land, buildings, and office facilities) and 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 2012 and 2016. Expenses for fiscal year 2 0 1 1 were $94,117.40 of which $12,147.78 represented interest. Total principal paid on capital leases was $81,969.62 for the fiscal year ended June 30, 2011. Interest rates range from 2.10 percent to 10.51 percent. \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"D\" \r\n \r\nOPERATING LEASES Georgia Military College's noncancellable operating leases provide for renewal options for periods from one to five 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 business equipment and buildings. \r\n \r\nNoncancellableoperating lease rental expenses in 2 0 1 1were $2,263,436.88 for real property. \r\n \r\nFUTURE COMMITMENTS Future commitments for capital leases (which here and on the Statement of Net Assets include other installment purchase agreements) and for noncancellable operating leases having remaining terms in excess of one year as of June 30, 2011, were as follows: \r\n \r\nReal Property and Equipment \r\n \r\nCapital \r\n \r\nOperating \r\n \r\nLeases \r\n \r\nLeases \r\n \r\nYear EndingJune 30: \r\n2012 2013 2014 2015 2016 2017 - 2021 \r\nTotal Minimum Lease Payments $ \r\n \r\n186,977.90 $ 13,291,902.05 \r\n \r\nLess: Interest Principal Outstanding \r\n \r\n22,028.15 \r\n \r\n$ \r\n \r\n164,949.75 \r\n \r\nNOTE 9: NOTES PAYABLE \r\n \r\nNotes payable consisted of the following at June 30, 2011: \r\n \r\nCollege note payable secured by Baugh Barracks, dated July 2006, payable in monthly installments of $38,404.70, matures June 2015, interest rate 4.310%. \r\n \r\n$ 6.189.114.31 \r\n \r\nMATURITY INFORMATION \r\n \r\nThe scheduled maturities of Baugh Barracks notes payable are as follows: \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2011 \r\n \r\nTotal Principal \r\n \r\nInterest \r\n \r\nEXHIBIT \"DM Total Payments \r\n \r\nNOTE 10: RETIREMENT PLANS \r\nGeorgia Military College participates in various retirement plans administered by the State of Georgia under two major retirement systems: Employees' Retirement System of Georgia (ERS System) and Teachers Retirement System of Georgia. 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 system offices. The significant retirement plans that Georgia Military College 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\nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nThe ERS System is comprised of individual retirement systems and plans covering substantially all employees of the State of Georgia except for teachers and other employees covered by the Teachers Retirement System of Georgia. One of the ERS System plans, the Employees' Retirement System of Georgia (ERS), is a cost-sharing multiple-employer defined benefit pension plan that was 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 and has the powers and privileges of a corporation. ERS acts pursuant to statutory direction and guidelines, which may be amended prospectively for new hires but for existing members and beneficiaries may be amended in some aspects only subject to potential application of certain constitutional restraints against impairment of contract. \r\nOn November 20, 1997, the Board created the Supplemental Retirement Benefit Plan (SRBP-ERS) of ERS. SRBP-ERS was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of ERS. The purpose of the SRBP-ERS is to provide retirement benefits to employees covered by ERS whose benefits are otherwise limited by IRC Section 415. Beginning January 1,1998, all members and retired former members in ERS are eligible to participate in the SRBP-ERS whenever their benefits under ERS exceed the limitation on benefits imposed by IRC Section 415. \r\nThe benefit structure of ERS is established by the Board of Trustees under statutory guidelines. Unless the employee elects otherwise, an employee who currently maintains membership with ERS based upon State employment that started prior to July 1,1982, is an \"old plan\" member subject to the 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 the modified plan provisions. Effective January 1,2009, newly hired State employees, as well as rehired State employees who did not maintain eligibility for the \"old\" or \"new\" plan, are members of the Georgia State Employees' Pension and Savings Plan (GSEPS). ERS members hired prior to January 1,2009 also have the option to change their membership to the GSEPS plan. \r\n \r\n GEORGIA MILITARY COLLEGE \r\nSELECTED FINANCIAL NOTES \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"D\" \r\n \r\nUnder the old plan, new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 1 0 years of creditable service and attainment of age 6 0 or 3 0 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 a formula adopted by the Board of Trustees for such purpose. The formula considers the monthly average of the member's highest 24 consecutive calendar months of salary, the number of years of creditable service, and the member's age at retirement. Post-retirement cost-of-living adjustments may 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\nMember contribution rates are set by law. 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, Georgia Military College pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these Georgia Military College 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. Georgia Military College is required to contribute at a specified percentage of active member payroll established by the Board of Trustees determined annually in accordance with actuarial valuation and minimum funding standards as provided by law. These Georgia Military College contributions are not at any time refundable to the member or his/her beneficiary. \r\nEmployer contributions required for fiscal year 2 0 1 1 were based on the June 30, 2008 actuarial valuation for the old and new plans and were set by the Board of Trustees on September 18, 2008 for GSEPS as follows: \r\n \r\nOld Plan* New Plan GSEPS \r\n \r\n10.41% 10.41% \r\n6.54% \r\n \r\n* 5.66% exclusive of contributions paid by the employer on behalf of \r\nold plan members \r\n \r\nMembers become vested after 1 0 years of service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits. \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nThe Teachers Retirement System of Georgia (TRS) is a cost-sharing multiple-employer defined benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS. \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"D\" \r\n \r\nOn October 25, 1996, the Board created the Supplemental Retirement Benefit Plan of the Georgia Teachers Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1,1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits. \r\nTRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by State statute. A member is eligible for normal service retirement after 3 0 years of creditable service, regardless of age, or after 1 0 years of service and attainment of age 60. A member is eligible for early retirement after 2 5 years of creditable service. \r\n \r\nNormal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 4 0 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 6 0 or by 7% for each year or fraction thereof by which the member has less than 3 0 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available. \r\n \r\nTRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 1 0 years of service. If a member terminates with less than 1 0 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2 0 1 1 were 5.53% of annual salary. Employer contributions required for fiscal year 2 0 1 1 were 10.28% of annual salary as required by the June 30, 2009 actuarial valuation. \r\n \r\nThe following table summarizes Georgia Military College's contributions by defined benefit plan for the years ending June 30,2011, June 30,2010, and June 30, 2009 (dollars in thousands): \r\n \r\nFiscal Year \r\n \r\nTRS \r\n \r\nRequired \r\n \r\nPercentage \r\n \r\nContribution \r\n \r\nContributed \r\n \r\nERS \r\n \r\nRequired \r\n \r\nPercentage \r\n \r\nContribution \r\n \r\nContributed \r\n \r\nNOTE 11: POST-EMPLOYMENT BENEFITS \r\nThe College participates in the following State of Georgia post-employment benefit plans: the Georgia Retiree Health Benefit Fund (administered by the Department of Community Health) and the State Employees' Assurance Department - OPEB (administered by the ERS System). Separate financial reports that include the applicable financial statements and required supplementary information for these plans are publicly available and may be obtained from the respective system offices. \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"D\" \r\n \r\nGeorgia Retiree Health Benefit Fund The Georgia Retiree Health Benefit Fund (GRHBF) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers retired employees of the State including all departments, agencies and local school systems. GRHBF provides health insurance benefits to eligible retirees and their qualified beneficiaries through the health insurance plan for State employees. The Official Code of Georgia annotated (OCGA) assigns the authority to establish and amend the benefit provisions of the employees' health insurance plan (including benefits for retirees) to the Board of Community Health (Board). \r\nThe contribution requirements of the plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately 25 percent of the cost of health insurance coverage. \r\nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rate is established to fund both the active and retired employee health insurance plans based on projected \"pay-as-you-go\" financing requirements. The combined rates for the active and retiree plans for the fiscal year ended June 30, 2011, were as follows: \r\n \r\nCertified Emplovees \r\n \r\nJuly 2 0 1 0 -April 2 0 1 1 May 2 0 1 1-July 2 0 1 1 \r\n \r\n21.955%of covered payroll for August - May coverage 1.429% of covered payroll for June -July coverage \r\n \r\nNon-Certified Employees \r\nJuly 2 0 1 0 - November 2 0 1 0 \r\nDecember 2 0 1 0 -April 2 0 1 1 May 2 0 1 1-June 2 0 1 1 \r\n \r\n$162.72 per employee/per month for August - December coverage \r\n$218.20 per employee/per month for January May coverage $246.20 per employee/per month for June -July coverage \r\n \r\nNo additional contribution was required by the Board for fiscal year 2 0 1 1 nor contributed to GRHBF to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the State plan for other post-employment benefits and are subject to appropriation. \r\nThe following table summarizes Georgia Military College's combined active and retiree contributions to the health insurance plans for the years ending June 30, 2011, June 30, 2010 and June 30, 2009: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30,2011 \r\n \r\nEXHIBrT \"D\" \r\n \r\n- State Employees' Assurance Department OPEB \r\nState Employees' Assurance Department - OPEB (SEAD-OPEB) is a cost-sharing multiple-employer defined benefit post-employment plan that was created in fiscal year 2007 by the Georgia General Assembly to provide term life insurance to retired and vested inactive members of Employees', Retirement System. \r\nContributions by plan members are established by the Boards of Trustees, up to the maximum allowed by statute (not to exceed 0.5% of earnable compensation). The Boards of Trustees of the Employees' Retirement System establish employer contribution rates, such rates which, when added to members' contributions, shall not exceed 1%of earnable compensation. For the fiscal year ended June 30, 2011, contributions of ERS \"old plan\" members were 0.45% of earnable compensation, 0.22% of which was paid by the employer. Contributions of ERS \"new plan\" members were 0.23% of earnable compensation. There were no employer annual required contributions (ARC) for the fiscal years ended June 30,2011, June 30,2010, and June 30,2009. \r\nNOTE 12: 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 expenditures which are disallowed under grant terms. The amount of expenditures which may be disallowed by the grantor cannot be determined at this time although Georgia Military College expects such amounts, if any, to be immaterial to its overall financial position. \r\nLitigation, claims and assessments filed against Georgia Military College, 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, 2011. \r\nDuring fiscal year 2002, upon advice of the Attorney General's Office, Georgia Military College required that full-time employees participate in Teachers Retirement System of Georgia. Previously, participation was elective by full-time employees. As a result of that change, a number of former fulltime employees and \"constructively qualified\" faculty members were eligible to \"purchase\" prior service credit (based on employment at Georgia Military College) in Teachers Retirement System of Georgia, and Georgia Military College became responsible for its share of the purchase. For fiscal year 2011, Georgia Military College's potential liability for its share of the purchase has been estimated at $626,843.51. \r\nNOTE 13: AFFILIATED ORGANIZATIONS \r\nThe Georgia Military College Foundation, Inc. is a legally separate, tax exempt organization whose activities primarily support Georgia Military College. This affiliated organization is considered a potential component unit of the State of Georgia in accordance with GASB Statement No. 39, Determining Whether Certain Organization are Component Units. Therefore, the financial statements of this affiliated organization are not included in these financial statements. Copies of the financial statements for the affiliated organization may be obtained from Georgia Military College. \r\n \r\n (This page left intentionally blank) \r\n \r\n SUPPLEMENTARY INFORMATION \r\n \r\n (This page left intentionally blank) \r\n \r\n Totals per Annual Supplement \r\nAccruals June 3 0 , 2 0 1 1 June 30,2010 \r\nCompensated Absences June 3 0 , 2 0 1 1 June 30,2010 \r\nAdjustments College Work Study Unidentified Variance \r\n \r\nGEORGIA MILITARY COLLEGE RECONCILIATION OF SALARIES AND TRAVEL \r\nYEAR ENDED JUNE 30,2011 \r\n \r\nSCHEDULE \"1\" \r\n \r\nSALARIES $ 20,749,069.30 $ \r\n \r\nTRAVEL 352,219.37 \r\n \r\n SECTION II FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\n \r\n GEORGIA MILITARY COLLEGE SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\nYEAR ENDED JUNE 3 0 , 2 0 1 1 \r\nFINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS No matters were reported. FEDERAL AWARD FINDINGS AND OUESTIONED COSTS No matters were reported. OTHER ITEMS No matters were reported. \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bg458-b2009-h2010","title":"Georgia Military College, Milledgeville, Georgia, management report for fiscal year ended June 30, 2010","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, Baldwin County, Milledgeville, 33.08014, -83.2321"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2009/2010"],"dcterms_description":["Began with fiscal year ended June 30, 2009.","For some years, report may be published instead called: Georgia Military College, Milledgeville, Georgia, independent accountants report on applying agreed-upon procedures for fiscal year ended ...","Fiscal year ended June 30, 2009 (online surrogate); title from PDF title page (Georgia Government Publications database, viewed June 29, 2020).","Fiscal year ended June 30, 2015 (online surrogate) (Received via FTP 1/14/16 from Georgia Dept. of Audits and Accounts); (Georgia Government Publications database, viewed August 30, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, GA : Georgia. Dept. of Audits and Accounts, 2010"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Georgia Military College--Appropriations and expenditures--Periodicals.","Georgia Military College--Auditing--Periodicals.","Georgia Military College--Finance--Periodicals.","Military education--Georgia--Auditing--Periodicals.","Military education--Georgia--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Georgia Military College, Milledgeville, Georgia, management report for fiscal year ended June 30, 2010"],"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_y-ga-ba800-b-pr1-bg458-b2009-h2010"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bg458-b2009-h2010"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"1 GEORGIA MILITARY \r\nICOLLEGE MILLEDGEVILLE, MANAGEMENT REPORT FOR FISCAL YEAR ENDED I JUNE30,2010 \r\nGeorgia Department of Audits and hccomts State Kuditpr \r\n \r\n GEORGIA MILITARY COLLEGE - TABLE OF CONTENTS - \r\nSECTION I FINANCIAL LETTER OF TRANSMITTAL SELECTED FINANCIAL INFORMATION EXHlBITS A STATEMENTOFNETASSETS B STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS C STATEMENT OF CASH FLOWS D SELECTED FINANCIAL NOTES SUPPLEMENTARY INFORMATION SCHEDULE 1 RECONCILIATION OF SALARIES AND TRAVEL \r\nSECTION II FINDINGS, QUESTIONED COSTS AND OTHER ITEMS SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\n \r\n SECTION I FI NANClAL \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENOTF AUDITSAND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1- 156 Atlanta, Georgia 30334-8400 \r\nNovember 1,2010 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly of Georgia Members of the Board of Trustees of the Georgia Military College \r\nand Major General Peter J. Boylan, President \r\nLadies and Gentlemen: \r\nAs part of our audits of the basic financial statements of the State of Georgia presented in the State of Georgia ComprehensiveAnnual Financial Repott and the issuance of a State of Georgia Single Audit Repod pursuant to the Single Audit Act Amendments, as of and for the year ended June 30, 2010, we have performed certain audit procedures at Georgia Military College. Accordingly, the financial statements and compliance activities of Georgia Military College 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\nThis Management Report contains information pertinent to the financial and compliance activities of Georgia Military College as of and for the year ended June 30, 2010. Information contained in this report is a by-product of our audit of 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\nThis report is intended solely for the information and use of the management of Georgia Military College, members of the Board of Trustees of Georgia Military College and the appropriate accrediting regulatory agency and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n \r\nState 'Auditor \r\n \r\n SELECTED FINANCIAL INFORMATION \r\n \r\n GEORGIA MILITARY COLLEGE STATEMENT OF NET ASSETS \r\nJUNE 30,2010 \r\nASSETS \r\nCurrent Assets Cash and Cash Equivalents Short-Term Investments Accounts Receivable, Net (Note 3) Federal Financial Assistance Other Inventories Prepaid Items \r\nTotal Current Assets \r\nNoncurrent Assets Investments Capital Assets, Net (Note 4) \r\nTotal Noncurrent Assets \r\nTotal Assets \r\nLIABILITIES \r\nCurrent Liabilities Accounts Payable Salaries Payable Deferred Revenue(Note 5 ) Deposits Held for Other Organizations Lease Purchase Obligations Compensated Absences Notes Payable \r\nTotal Current Liabilities \r\nNoncurrent Liabilities Lease Purchase Obligations Notes Payable \r\nTotal Noncurrent Liabilities \r\nTotal Liabilities \r\nNET ASSETS \r\nInvested in Capital Assets, Net of Related Debt Restricted for: \r\nNonexpendable Unrestricted \r\nTotal Net Assets \r\n \r\nEXHIBIT \"A\" \r\n \r\n GEORGIA MILITARY COLLEGE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS \r\nYEAR ENDEDJUNE 30,2010 \r\nOPERATING REVENUES \r\nStudent Tuition and Fees Less: Scholarship Allowances \r\nGrants and Contracts Federal State Nongovernmental \r\nAuxiliary Enterprises Residence Halls Bookstore Food Services Intercollegiate Athletics \r\nOther Operating Revenues \r\nTotal Operating Revenues \r\nOPERATING EXPENSES \r\nSalaries Faculty Staff \r\nEmployee Benefits Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation \r\nTotal Operating Expenses \r\nOperating Income (Loss) \r\nNONOPERATING REVENUES (EXPENSES) \r\nGrants and Contracts Federal State \r\nG iRs Interest and Other Investment Income Interest Expense Other Nonoperating Revenues \r\nNet Nonoperating Revenues \r\nIncrease (Decrease)in Net Assets \r\nNet Assets - Beginning of Year \r\nNet Assets - End of Year \r\n \r\nEXHIBIT \"B\" \r\n \r\n GEORGIA MILITARY COLLEGE STATEMENT OF CASH FLOWS YEAR ENDEDJUNE 30. 2010 \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 FellOwSh~pS Other Receipts (Payments) \r\nNet Cash Provided (Used) by Operat~ngActivities \r\nCASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Agency Funds Transacbons Gifts and Grants Receivedfor Other than Capltal Purposes Other Nonoperating Recelpts \r\nNet Cash flows Provided (Used) by Noncapital FinancingActivities \r\nCASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from Sale of Capita Assets Purchases of Capita Assets Principal Pald on Capital Debt and Leases lnterest Paid on Capital Debt and Leases \r\nNet Cash Provlded (Used)by Capital and Related FinancingActivities \r\nCASH FLOWS FROM INVESTING ACTIVITIES Proceeds from Sales and Maturlt~esof lnvestments Interest on lnvestments Purchase of Investments \r\nNet Cash Provided (Used)by InvestingAmvltres \r\nNet Increase (Decrease) in Cash \r\nCash and Cash Equivalents - Beginning of Year \r\nCash and Cash Equivalents - End of Year \r\nRECONClLlArlON OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: \r\nOperating lncome (Loss) Adjustments to Reconcile Operating lncome to Net Cash \r\nProv~ded(Used) by Operating Activities Depreciation Change in Assets and L~abilitles: Accounts Receivable, Net Inventories Prepaid Items Accounts Payable Deferred Revenue Salaries Payable Compensated Absences \r\nNet Cash Prov~ded(Used)by OperatingActlvltles \r\nNONCASH ACTIVITY Fixed Assets Acqulred by Incurring Capital Lease Obligat~ons Cancellation of Capital Lease Obligations Change In Fair Value of lnvestments Recognized as a Component of lnterest Income \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30,2010 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nNATURE OF OPERATIONS Georgia Military College serves the state and national communities by providing its students with academic instruction that advances fundamental knowledge and by disseminating knowledge to the people of Georgia and throughout the country. \r\nREPORTING ENTITY Georgia Military College was created as a public authority and is an instrumentality of the State of Georgia and a public corporation. The Board of Trustees is composed of the Mayor of the City of Milledgeville and six additional members, one of which shall be elected from each of the six municipal voting districts of the City of Milledgeville. The government, control and management of Georgia Military College shall be vested in the Board of Trustees. Georgia Military College shall receive any designated funds appropriated by the General Assembly through the State Board of Regents. In order to incur debt, the Board of Trustees must first receive permission from the Georgia State Financing and Investment Commission, as required for all State authorities. Accordingly, Georgia Military College is considered a component unit of the State of Georgia reporting entity for financial reporting purposes because of the significance of its legal, operational, and financial relationships with the State of Georgia. These reporting entity relationships are defined in Section 2100 of the Governmental Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial Re~ortinSgtandards. \r\nNET ASSETS The College's net assets are classified as follows: \r\nInvested in capitalassets; net of related debt: This represents the College's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. \r\nRestricted net asset - nonexpendable: Nonexpendable restricted net assets 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 College 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\nUnre~t~ktendet assets: Unrestricted net assets represent resources derived from student tuition and fees, state appropriations, and sales and services of educational departments and auxiliary enterprises. These resources are used for transactions relating to the educational and general operations of the College and may be used at the discretion of the governing board to meet current expenses for those purposes. These resources also include auxiliary enterprises, which are substantially self-supporting activities that provide services for students, faculty and staff. \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30,2010 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 2: DEPOSITSAND INVESTMENTS \r\n \r\nDEPOSITS The custodial credit risk for deposits is the risk that in the event of a bank failure, the College's deposits may not be recovered. Funds belonging to the State of Georgia (and thus the College) 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\n \r\n1. Bonds, bills, notes, certificates of indebtedness, or other direct obligations of the United States or of the State of Georgia. \r\n \r\n2. \r\n \r\nBonds, bills, notes, certificates of indebtedness or other obligations of the counties or \r\n \r\nmunicipalities of the State of Georgia. \r\n \r\n3. \r\n \r\nBonds of any public authority created by the laws of the State of Georgia, providing that the \r\n \r\nstatute that created the authority authorized the use of the bonds for this purpose. \r\n \r\n4. \r\n \r\nIndustrial revenue bonds and bonds of development authorities created by the laws of the \r\n \r\nState of Georgia. \r\n \r\n5. \r\n \r\nBonds, bills, certificates of indebtedness, notes or other obligations of a subsidiary \r\n \r\ncorporation of the United States government, which are fully guaranteed by the United States \r\n \r\ngovernment both as to principal and interest and debt obligations issued by the Federal Land \r\n \r\nBank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank \r\n \r\nfor Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association and \r\n \r\nthe Federal National MortgageAssociation. \r\n \r\n6. Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation. \r\n \r\nThe Georgia Military College Board of Trustees is responsible for all details relative to furnishing the required depository protection for Georgia Military College. \r\n \r\nAt June 30, 2010, the carrying value of deposits was $9,990,190.21 and the bank balance was $10,863,812.86. Of the College's deposits, $10,485,111.34 were uninsured. Of these uninsured deposits, $10,484,031.69 were collateralized with securities held by the pledging financial institution's trust department or agent in the College's name, and $1,079.65 were uncollateralized. \r\n \r\nINVESTMENTS At June 30, 2010, the carrying value of the College's investment was $647,517.85, which is materially the same as fair value. These investments were comprised entirely of funds invested in the Century Bank and Trust Trustee Endowment as follows: \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 3 0 . 2 0 1 0 \r\n \r\nNOTE 2: DEPOSITS AND INVESTMENTS \r\n \r\nInvestment Type \r\nDebt Securities Mutual Bond Funds \r\n \r\nFair Value \r\n \r\nOther lnvestments Equity Mutual Funds Common Stock \r\nTotal lnvestments \r\nNOTE 3: ACCOUNTS RECEIVABLE \r\nAccounts receivable consisted o f t h e following at June 30, 2010: \r\n \r\nStudent Tuition and Fees Federal, State and Private Funds \r\n \r\nLess Allowance for Doubtful Accounts Net Accounts Receivable \r\n \r\nEXHIBIT \"DM \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 3 0 , 2 0 1 0 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 4: CAPITAL ASSETS Following are the changes in the College's capital assets for the year ended June 30, 2010: \r\n \r\nBalance July 1, 2009 \r\n \r\nAdditions \r\n \r\nReductions \r\n \r\nBalance June 30,2010 \r\n \r\nCap~taAl ssets, Not Being Depreciated: Land Capitalized Collections Construction Work-In-Progress \r\n \r\n$ \r\n \r\n577,082.52 $ \r\n \r\n63,187.35 \r\n \r\n143,125.13 \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n577,082.52 63,187.35 \r\n143,125.13 \r\n \r\nTotal Capital Assets, Not Belng Depreciated $ \r\n \r\n783,395.00 $ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n783,395.00 \r\n \r\nCapital Assets, B e ~ n Dg epreciated: Infrastructure Building and Building Improvements Facilities and Other Improvements Equipment Library Collections \r\n \r\n$ \r\n \r\n278,690.00 \r\n \r\n46.874.464.38 $ \r\n \r\n2,298,244.77 \r\n \r\n2,311,877.80 \r\n \r\n257,125.32 $ 266,043.00 385,799.69 \r\n \r\n$ 120.399.00 \r\n167,379.17 \r\n \r\n278,690.00 47,011,190.70 \r\n2,564,287.77 2,530,298.32 \r\n \r\nTotal Assets Being Depreciated \r\n \r\n$ 54,418,767.16 $ \r\n \r\n1,153,129.00 $ \r\n \r\n391,760.17 $ 55,180.135.99 \r\n \r\nLess: Accumulated Depreciation: Infrastructure Building and Bullding Improvements Facilities and Other Improvements Equipment Library Collections \r\n \r\n$ \r\n \r\n274,968.03 $ \r\n \r\n10,617,943.84 \r\n \r\n824,800.68 \r\n \r\n1,308,286.40 \r\n \r\n1,661,518.56 \r\n \r\n3,721.97 1,226,445.43 $ \r\n144,312.55 289,423.40 167,280.18 \r\n \r\n$ 35,216.71 \r\n159,896.87 103,982.00 \r\n \r\n278,690.00 11,809,172.56 \r\n969,113.23 1,437,812.93 1,724,816.74 \r\n \r\nTotal Accumulated Depreciation \r\n \r\n$ 14,687,517.51 $ \r\n \r\n1,831,183.53 $ \r\n \r\n299,095.58 $ 16,219,605.46 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ 39,731,249.65 $ \r\n \r\n-678,054.53 $ \r\n \r\n92,664.59 $ 38,960,530.53 \r\n \r\nCapital Assets, Net \r\n \r\nNOTE 5: DEFERRED REVENUE Deferred revenue consisted of the following at June 30, 2010: Prepaid Tuition and Fees Other Deferred Revenue \r\nTotal Deferred Revenue \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30,2010 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 6: LONG-TERM LIABILITIES The College's Long-Term liability activity for the year ended June 30, 2010, was as follows: \r\n \r\nBeginning Balance July 1,2009 \r\n \r\nAdditions \r\n \r\nReductions \r\n \r\nEnding Balance June 30.2010 \r\n \r\nCurrent Portion \r\n \r\nLeases Lease Obligations \r\n \r\n$ \r\n \r\n263,897.37 $ \r\n \r\n43.834.54 $ \r\n \r\n89,180.33 $ \r\n \r\n218,551.58 $ 93,285.79 \r\n \r\nOther Liabilit~es Compensated Absences $ Notes Payable \r\n \r\n383,343.79 $ 6,553,024.16 \r\n \r\n494.714.86 $ \r\n \r\n465,720.00 $ 177,999.92 \r\n \r\n412,338.65 $ 6,375,024.24 \r\n \r\n412,338.65 186,184.48 \r\n \r\nTotal \r\n \r\nTotal Long-Term Obligations $ \r\n \r\n7,200,265.32 $ \r\n \r\n538,549.40 $ \r\n \r\n732,900.25 $ \r\n \r\n7,005,914.47 $ 691,808.92 \r\n \r\nNOTE 7: NET ASSETS \r\n \r\nChanges in Net Asset activity for the year ended June 30, 2010, are as follows: \r\n \r\nBalance July 1.2009 \r\n \r\nAdditions \r\n \r\nReductions \r\n \r\nBalance June 30,2010 \r\n \r\nInvested in Capital Assets Net of Related Debt \r\n \r\n$ 33,697,723.12 $ -721,889.07 $ -174,515.66 $ 33,150,349.71 \r\n \r\nRestricted Net Assets \r\n \r\n939,105.46 21,666,418.75 21,915,956.28 \r\n \r\n689,567.93 \r\n \r\nUnrestricted Net Assets \r\n \r\nTotal Net Assets \r\n \r\nNOTE 8: LEASE OBLIGATIONS \r\nGeorgia Military College is obligated under various operating leases for the use of real property (land, buildings, and office facilities) and equipment, and also is obligated under capital leases and installment purchase agreements for the acquisition of real property and equipment. \r\nCAPITAL LEASES Capital leases are generally payable in installments ranging from monthly to annually and have terms expiring in various years between 2 0 1 1 and 2015. Expenses for fiscal year 2010 were $103,762.53 of which $15,621.85 represented interest. Total principal paid on capital leases was $88,140.68 for the fiscal year ended June 30, 2010. Interest rates range from 2.10 percent to 10.51 percent. \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30,2010 \r\n \r\nEXHIBIT \"DM \r\n \r\nNOTE 8: LEASE OBLIGATIONS \r\n \r\nOPERATING LEASES Georgia Military College's noncancellable operating leases provide for renewal options for periods from one to five years at their fair rental value at the time of renewal. All agreements are cancellable 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 and office facilities. \r\n \r\nNoncancellable operating lease rental expenses in 2010 were $1,930,083.48 for real property. \r\n \r\nFUTURE COMMITMENTS Future commitments for capital leases (which here and on the Statement of Net Assets include other installment purchase agreements) and for noncancellable operating leases having remaining terms in excess of one year as of June 30,2010, were as follows: \r\n \r\nCapital Leases \r\n \r\nOperating Leases \r\n \r\nYear EndingJune 30: \r\n2011 2012 2013 2014 2015 \r\n2016 - 2019 \r\n \r\n$ 104,518.34 $ 1,973,716.96 \r\n \r\n70,690.55 \r\n \r\n1,883,531.68 \r\n \r\n42,848.41 \r\n \r\n1,839,934.68 \r\n \r\n18,579.14 \r\n \r\n1,622,923.61 \r\n \r\n4,129.99 \r\n \r\n1,650,085.96 \r\n \r\n4,243,031.04 \r\n \r\nTotal Minimum Lease Payments $ 240,766.43 $ 13,213,223.93 \r\n \r\nLess: Interest Principal Outstanding \r\n \r\n22,214.85 $ 218,551.58 \r\n \r\nNOTE 9: NOTES PAYABLE \r\n \r\nNotes payable consisted of the following at June 30,2010: \r\n \r\nCollege note payable secured by Baugh Barracks, dated July 2006, payable in monthly installments of $38,404.70, matures July 2015, interest rate 4.310%. \r\n \r\n$ 6,375,024.24 \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30,2010 \r\n \r\nNOTE 9: NOTES PAYABLE \r\n \r\nMATURITY INFORMATION The scheduled maturities of Baugh Barracks notes payable are as follows: \r\n \r\nTotal Princi~al \r\n \r\nInterest \r\n \r\nTotal Pavments \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 10: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\nPlan Description Georgia Military College participates in the Teachers Retirement System of Georgia (TRS), a costsharing multiple-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia. TRS provides service retirement, disability retirement, and survivor's benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the TRS offices or the Georgia Department of Audits and Accounts. \r\n \r\nFunding Policy Employees of Georgia Military College who are covered by TRS are required by State statute to contribute 5.25% of their gross earnings to TRS. Georgia Military College makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. For fiscal year 2010, the employer contribution rate was 9.74% for covered employees. Employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30,2010 \r\n \r\nEXHIBIT \"DM \r\n \r\nNOTE 10: RETIREMENT PLANS \r\nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nPlan Description Georgia Military College participates in the Employee's Retirement System of Georgia (ERS), a singleemployer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances for employees of the State of Georgia. \r\nThe ERS Board of Trustees created the Supplemental Retirement Benefit Plan (SRBP) effective January 1,1998. The SRBP was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of ERS. The purpose of SRBP is to provide retirement benefits to employees covered by ERS whose benefits are otherwise limited by IRC 415. \r\nThe benefit structure of ERS is established by the Board of Trustees under statutory guidelines. Unless the employee elects otherwise, an employee who currently maintains membership with ERS based upon State employment that started prior to July 1,1982, is an \"old plan\" member subject to the 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 the modified plan provisions. Effective January 1,2009, newly hired State employees, as well as rehired State employees who did not maintain eligibility for the \"old\" or \"new\" plan, are members of the Georgia State Employee's Pension and Savings Plan (GSEPS). ERS members hired prior to January 1,2009 also have the option to change their membership to the GSEPS plan. \r\nUnder the old plan, new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 1 0 years of credible service and attainment of age 6 0 or 3 0 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 2 5 years of creditable service for members under age 60. \r\nRetirement benefits paid to members are based upon a formula adopted by the Board of Trustees for such purpose. The formula considers the monthly average of the member's highest 2 4 consecutive calendar months of salary, the number of years of creditable service, and the member's age at retirement. Post-retirement cost-of-living adjustments may be made to member's 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\nFunding Policy As established by State statute, all full-time employees of the State of Georgia and its political subdivision, who are not members of other state retirement systems, are eligible to participate in the ERS. Both employer and employee contribution are established by State statute. The College's payroll for the year ended June 30, 2010, for employees covered by ERS was $82,023.34. The College's total payroll for all employees was $18,777,834.95. \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30,2010 \r\n \r\nEXHIBIT \"DM \r\n \r\nNOTE 10: RETIREMENT PLANS \r\n \r\nEMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\n \r\nFunding Policy Member contribution rates are set by law. Member contributions under the old plan are 4% of the annual compensation up to $4,200.00 plus 6% of annual compensation in excess of $4,200.00. Under the old plan, the College pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these College 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 College is required to contribute at a specified percentage of active member payroll established by the Board of Trustees determined annually in accordance with actuarial valuation and minimum funding standards as provided by law. These College contributions are not at any time refundable to the member or his/her beneficiary. \r\n \r\nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\nActuarial and Trend Information Actuarial and historical trend information is presented in the ERS June 30, 2010, financial report, which may be obtained through ERS. \r\nNOTE 11: POST-EMPLOYMENT BENEFITS \r\nThe College participates in two State of Georgia post-employment benefit plans, the Georgia Retiree Health Benefit Fund (administered by the Department of Community Health) and the State Employee's Assurance Department - OPEB (administered by the ERS System). Separate financial reports that include the applicable financial statements are required supplementary information for these plans are publicly available and may be obtained from the respectivesystem offices. \r\nGeorgia Retiree Health Benefit Fund The Georgia Retiree Health Benefit Fund (GRHBF) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers retired employees of the State including all departments, agencies and local school systems. GRHBF provides health insurance benefits to eligible retirees and their qualified beneficiaries through the health insurance plan for State employees. The Official Code of Georgia annotated (OCGA) assigns the authority to establish and amend the benefit provisions of the employees' health insurance plan (including benefits for retirees) to the Board of Community Health (Board). \r\nThe contribution requirements of the plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately 25 percent of the cost of health insurance coverage. \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30,2010 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 11: POST-EMPLOYMENT BENEFITS \r\n \r\nGeorgia Retiree Health Benefit Fund Participating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rate is established to fund both the active and retired employee health insurance plans based on projected \"pay-as-you-go\" financing requirements. The combined rates for the active and retiree plans for the fiscal year ended June 30, 2010, were as follows: \r\n \r\nCertified Emwlovees July 2009 - August 2009 September 2009 - November 2009 December 2009 -June 2010 \r\n \r\n18.534% of covered payroll for August -September coverage 14.492% of covered payroll for October - December coverage 18.534% of covered payroll for January -July coverage \r\n \r\nNon-Certified Em~lovees July 2009 -June 2010 \r\n \r\n$162.72 per employee/per month \r\n \r\nNo additional contribution was required by the Board for fiscal year 2010 nor contributed to GRHBF to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the State plan for other post-employment benefits and are subject to appropriation. \r\n \r\nThe following table summarizes the College's contributions to the health insurance plans for the current fiscal year and the preceding two fiscal years: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\nState Employees' Assurance Department - OPEB State Employee's Assurance Department - OPEB (SEAD-OPEB) is a cost-sharing multiple-employer defined benefit post-employment plan that was created in fiscal year 2007 by the Georgia General Assembly to provide term life insurance to retired and vested inactive members of the Employees' Retirement System. Contributions by plan members are established by the Board of Trustees, up to the maximum allowed by statute (not to exceed 0.5% of earnable compensation). The Board of Trustees of the Employees' Retirement System establish employer contribution rates, such rates which, when added to members' contributions shall not exceed 1% of earnable compensation. For the fiscal year ended June 30, 2010, contributions of the ERS \"old plan\" members were 0.45% of earnable compensation, 0.22% of which was paid by the employer. Contributions of ERS \"new plan\" members were 0.23% of earnable compensation. There were no employer annual required contributions (ARC)for the fiscal years ended June 30,2010, and June 30,2009. \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30,2010 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 12: 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 expenditures which are disallowed under grant terms. The amount of expenditures which may be disallowed by the grantor cannot be determined at this time although Georgia Military College expects such amounts, if any, to be immaterial to its overall financial position. \r\nLitigation, claims and assessments filed against Georgia Military College, 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 30,2010. \r\nDuring fiscal year 2002, upon advice of the Attorney General's Office, Georgia Military College required that full-time employees participate in Teachers Retirement System of Georgia. Previously, participation was elective by full-time employees. As a result of that change, a number of former fulltime employees and \"constructively qualified\" faculty members were eligible to \"purchase\" prior service credit (based on employment at Georgia Military College) in Teachers Retirement System of Georgia, and Georgia Military College became responsible for its share of the purchase. For fiscal year 2010, Georgia Military College's potential liability for its share of the purchase has been estimated at $684,990.26. \r\nNOTE 13: AFFILIATED ORGANIZATIONS \r\nThe Georgia Military College Foundation, Inc., is a legally separate, tax exempt organization whose activities primarily support Georgia Military College. This affiliated organization is considered a potential component unit of the State of Georgia in accordance with GASB Statement No. 39, Determining Whether Certain Organkaions are Component Units. Therefore, the financial statements of this affiliated organization are not included in these financial statements. Copies of the financial statements for the affiliated organization may be obtained from Georgia Military College. \r\n \r\n (This page left intentionally blank) \r\n \r\n SUPPLEMENTARY INFORMATION \r\n \r\n (This page left intentionally blank) \r\n \r\n GEORGIA MILITARY COLLEGE RECONCILIATIONOF SALARIESAND TRAVEL \r\nYEAR ENDEDJUNE 30,2010 \r\n \r\nSCHEDULE \"1\" \r\n \r\nTotals per Annual Supplement \r\nAccruals June 30,2010 June 30,2009 \r\nCompensated Absences June 30,2010 June 30,2009 \r\nAdjustments College Work Study Unidentified Variance \r\n \r\nSALARIES $ 18,831,987.67 $ \r\n \r\nTRAVEL 296,962.53 \r\n \r\n SECTION II FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\n \r\n GEORGIA MILITARY COLLEGE SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\nYEAR ENDED JUNE 30,2010 \r\nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\nFEDERAL AWARD FINDINGS AND OUESTIONED COSTS \r\nNo matters were reported. \r\nOTHER ITEMS \r\nGEORGIA MILITARY COLLEGE TRAVEL CARDS During our testing of Georgia Military College's (GMC) VISA travel credit card activity, we noted four transactions were approved by the appropriate Business Office authorities after the purchases were made, sometimes as late as a month afterward. Management should strengthen procedures to ensure that policies are followed related to credit card use and that all credit card purchases are approved by someone in the Business Office prior to the actual purchase. \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bg458-b2008-h2009","title":"Georgia Military College, Milledgeville, Georgia, management report for fiscal year ended June 30, 2009","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, Baldwin County, Milledgeville, 33.08014, -83.2321"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2008/2009"],"dcterms_description":["Began with fiscal year ended June 30, 2009.","For some years, report may be published instead called: Georgia Military College, Milledgeville, Georgia, independent accountants report on applying agreed-upon procedures for fiscal year ended ...","Fiscal year ended June 30, 2009 (online surrogate); title from PDF title page (Georgia Government Publications database, viewed June 29, 2020).","Fiscal year ended June 30, 2015 (online surrogate) (Received via FTP 1/14/16 from Georgia Dept. of Audits and Accounts); (Georgia Government Publications database, viewed August 30, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, GA : Georgia. Dept. of Audits and Accounts, 2009"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Georgia Military College--Appropriations and expenditures--Periodicals.","Georgia Military College--Auditing--Periodicals.","Georgia Military College--Finance--Periodicals.","Military education--Georgia--Auditing--Periodicals.","Military education--Georgia--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Georgia Military College, Milledgeville, Georgia, management report for fiscal year ended June 30, 2009"],"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_y-ga-ba800-b-pr1-bg458-b2008-h2009"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bg458-b2008-h2009"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"GEORGI.A MILITARY COLLEGE \r\nMILLEDGEVILLE, GEORGIA \r\nMANAGEMENT REPORT FOR FISCAL YEAR ENDED JUNE 30, 2009 \r\nGeorgia Department of Audits and Accounts Russell W . Hinton State Auditor \r\n \r\n GEORGIA MILITARY COLLEGE - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nLETTER OF TRANSMITTAL \r\n \r\nSELECTED FINANCIAL INFORMATION \r\n \r\nEXHIBITS \r\n \r\nA STATEMENT OF NET ASSETS \r\n \r\n2 \r\n \r\nB STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS \r\n \r\n3 \r\n \r\nC STATEMENT OF CASH FLOWS \r\n \r\n4 \r\n \r\nD SELECTED FINANCIAL NOTES \r\n \r\n5 \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\nSCHEDULE \r\n \r\nRECONCILIATION QF SALARIES AND TRAVEL \r\n \r\n19 \r\n \r\nSECTION II FINDINGS, QUESTIONED COSTS AND OTHER ITEMS SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\n \r\n SECTION I FINANCIAL \r\n \r\n Russell W. Hinton \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\nOctober 27, 2009 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly of Georgia Members of the Board of Trustees of the Georgia Military College \r\nand Major General Peter J. Boylan, President \r\n \r\nLadies and Gentlemen: \r\n \r\nAs part ofour audit ofthe basic financial statements of the State ofGeorgia 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, 2009, we have performed certain audit procedures at Georgia Military College. Accordingly, the financial statements and compliance activities of Georgia Military College 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\nThis Management Report contains information pertinent to the financial and compliance activities of Georgia Military College as of and for the year ended June 30, 2009. Information contained in this report is a by-product of our audit of the basic financial statements of the State ofGeorgia 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 Georgia Military College, members of the Board of Trustees of Georgia Military College and the appropriate accrediting regulatory agency and is not intended to be and should not be used by anyone other than these specified parties. \r\n \r\nRWH:as \r\n \r\nRespectfully submitted, \r\n;:~ tJ.~~ \r\nRussell W. Hinton, CPA, CGFM State Auditor \r\n \r\n SELECTED FINANCIAL INFORMATION - 1- \r\n \r\n GEORGIA MILITARY COLLEGE STATEMENT OF NET ASSETS \r\nJUNE 30, 2009 \r\nASSETS \r\nCurrent Assets Cash and Cash Equivalents Short-Term Investments Accounts Receivable, Net (Note 3) Federal Financial Assistance Other Prepaid Items Inventories \r\nTotal Current Assets \r\nNoncurrent Assets Investments Capital Assets, Net (Note 4) \r\nTotal Noncurrent Assets \r\nTotal Assets \r\nLIABILITIES \r\nCurrent Liabilities Salaries Payable Accounts Payable Deferred Revenue (Note 5) Funds Held for Others Capital Leases Compensated Absences Notes Payable \r\nTotal Current Liabilities \r\nNoncurrent Liabilities Capital Leases Notes Payable \r\nTotal Noncurrent Liabilities \r\nTotal Liabilities \r\nNET ASSETS \r\nInvested in Capital Assets, Net of Related Debt Restricted for: \r\nNonexpendable Expendable Unrestricted \r\nTotal Net Assets \r\n-2 - \r\n \r\nEXHIBIT \"A\" \r\n \r\n$ 4,317,952.82 \r\n1,241,780.82 \r\n357,743.69 1,828,907.87 \r\n4,263.36 810,613.33 \r\n$ 8,561,261.89 \r\n \r\n$ \r\n \r\n507,590.57 \r\n \r\n40,514,644.65 \r\n \r\n$ 41,022,235.22 \r\n \r\n$ 49,583,497.11 \r\n \r\n$ \r\n \r\n635,018.74 \r\n \r\n730,954.82 \r\n \r\n1,306,249.93 \r\n \r\n82,905.32 \r\n \r\n86,915.32 \r\n \r\n383,343.79 \r\n \r\n178,237.84 \r\n \r\n$ 3,403,625.76 \r\n \r\n$ \r\n \r\n176,982.05 \r\n \r\n6,374,786.32 \r\n \r\n$ 6,551,768.37 \r\n \r\n$ 9,955,394.13 \r\n \r\n$ 33,697,723.12 \r\n829,581.37 109,524.09 4,991,274.40 \r\n \r\n$ 39,628,102.98 \r\n \r\n GEORGIA MILITARY COLLEGE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS \r\nYEAR ENDED JUNE 30, 2009 \r\n \r\nEXHIBIT \"B\" \r\n \r\nOPERATING REVENUES \r\nStudent Tuition and Fees Less: Scholarship Allowances \r\nGrants and Contracts Federal State Nongovernmental \r\nRents and Royalties Auxiliary Enterprises \r\nResidence Halls Bookstore Food Services Intercollegiate Athletics Other Operating Revenues \r\nTotal Operating Revenues \r\nOPERATING EXPENSES \r\nSalaries Faculty Staff \r\nEmployee Benefits Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation \r\nTotal Operating Expenses \r\nOperating Income (Loss) \r\nNONOPERATING REVENUES (EXPENSES} \r\nGrants and Contracts Federal State \r\nGifts Interest and Other Investment Income Interest Expense Other Nonoperating Revenues \r\nNet Nonoperating Revenues \r\nIncrease (Decrease) in Net Assets \r\nNet Assets Beginning of Year \r\nNet Assets - End of Year \r\n \r\n$ 29,032,502.01 -10,380,967.20 \r\n1,996,982.45 5,630,936.05 \r\n254,662.25 23,205.00 \r\n649,000.83 3,356,117.98 \r\n799,986.50 24,889.29 \r\n535,153.95 \r\n$ 31,922,469.11 \r\n \r\n$ \r\n \r\n9,268,121.04 \r\n \r\n8,096,368.07 \r\n \r\n3,148,186.91 \r\n \r\n278,374.36 \r\n \r\n7,383,413.60 \r\n \r\n1,221,881.33 \r\n \r\n10,615,598.84 \r\n \r\n1,790,266.26 \r\n \r\n$ 41,802,210.41 \r\n \r\n$ -9,879,741.30 \r\n \r\n$ \r\n \r\n9,080,441.22 \r\n \r\n2,604,426.00 \r\n \r\n10,469.74 \r\n \r\n-12,637.73 \r\n \r\n-305,635.91 \r\n \r\n396,556.12 \r\n \r\n$ 11,773,619.44 \r\n \r\n$ \r\n \r\n1,893,878.14 \r\n \r\n37,734,224.84 \r\n \r\n$ 39,628,102.98 \r\n \r\n-3- \r\n \r\n GEORGIA MILITARY COLLEGE STATEMENT OF CASH FLOWS \r\nYEAR ENDED JUNE 30, 2009 \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 Other Receipts (Payments) \r\nNet Cash Provided (Used) by Operating Activities \r\nCASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Agency Funds Transactions Gifts and Grants Received for Other than Capital Purposes Other Nonoperating Receipts \r\nNet Cash Flows Provided (Used) by Noncapital Financing Activities \r\nCASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from Sale of Capital Assets Purchases of Capital Assets Principal Paid on Capital Debt and Lease Interest Paid on Capital Debt and Lease \r\nNet Cash Provided (Used) by Capital and Related Financing Activities \r\nCASH FLOWS FROM INVESTING ACTIVITIES Proceeds from Sales and Maturities of Investments Interest on Investments Purchase of Investments \r\nNet Cash Provided (Used) by Investing Activities \r\nNet Increase (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 PROVIDED (USED) BY OPERATING ACTIVITIES: \r\nOperating Income (Loss) Adjustments to Reconcile Net Income (Loss) to Net Cash \r\nProvided (Used) by Operating Activities Depreciation Change in Assets and Liabilities: Accounts Receivable, Net Inventories Prepaid Items Accounts Payable Salaries Payable Deferred Revenue Compensated Absences \r\nNet Cash Provided (Used) by Operating Activities \r\nNONCASH ACTIVITY Fixed Assets Acquired by Incurring Capital Lease Obligations Cancellation of Capital Lease Obligations Change in Fair Value of Investments Recognized as a Component of Interest Income \r\n.4. \r\n \r\nEXHIBIT\"C\" \r\n \r\n$ 18,651,534.81 7,787,457.16 4,560,357.57 \r\n-15,992,335.13 -17,261,652.90 \r\n-7,383,413.60 5351498.42 \r\n$ -911021553.67 \r\n \r\n$ \r\n \r\n11,815.63 \r\n \r\n11,694,750.79 \r\n \r\n391 414.89 \r\n \r\n$ 1210971981.31 \r\n \r\n$ \r\n \r\n43,620.60 \r\n \r\n-820, 120.52 \r\n \r\n-251,604.46 \r\n \r\n-3051635.91 \r\n \r\n$ -113331740.29 \r\n \r\n$ \r\n \r\n1,521,301.50 \r\n \r\n41,775.81 \r\n \r\n-112821463.34 \r\n \r\n$ \r\n \r\n2801613.97 \r\n \r\n$ \r\n \r\n1,942,301.32 \r\n \r\n21375,651.50 \r\n \r\n$ \r\n \r\n-9,879,741.30 \r\n \r\n1,790,266.26 \r\n-450, 185.72 -26,263.14 -484.38 \r\n-681,446.27 61,246.24 62,564.57 21,490.07 \r\n \r\n$ ===1=38='=17=8=.9=2 $ ===5===14=1=.2==3 $ ======54=4=1=3=.5=4 \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2009 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nNATURE OF OPERATIONS Georgia Military College serves the state and national communities by providing its students with academic instruction that advances fundamental knowledge and by disseminating knowledge to the people of Georgia and throughout the country. \r\nREPORTING ENTITY Georgia Military College was created as a public authority and is an instrumentality of the State of Georgia and a public corporation. The Board of Trustees is composed of the Mayor of the City of Milledgeville and six additional members, one of which shall be elected from each of the six municipal voting districts of the City of Milledgeville. The government, control and management of Georgia Military College shall be vested in the Board of Trustees. Georgia Military College shall receive any designated funds appropriated by the General Assembly through the State Board of Regents. In order to incur debt, the Board of Trustees must first receive permission from the Georgia State Financing and Investment Commission, as required for all State authorities. Accordingly, Georgia Military College is considered a component unit of the State of Georgia reporting entity for financial reporting purposes because of the significance of its legal, operational, and financial relationships with the State of Georgia. These reporting entity relationships are defined in Section 2100 of the Governmental Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial Reporting Standards. \r\nNET ASSETS The College's net assets are classified as follows: \r\nInvested in capital assets, net of related debt: This represents the College's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. \r\nRestricted net assets - nonexpendable: Nonexpendable restricted net assets 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 College 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 net assets - expendable: Restricted expendable net assets include resources in which the College is legally or contractually obligated to spend resources in accordance with restrictions imposed by external third parties. \r\n \r\n-5- \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2009 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nNET ASSETS Unrestricted net assets: Unrestricted net assets represent resources derived from student tuition and fees, state appropriations, and sales and services of educational departments and auxiliary enterprises. These resources are used for transactions relating to the educational and general operations of the College and may be used at the discretion of the governing board to meet current expenses for those purposes. These resources also include auxiliary enterprises, which are substantially self-supporting activities that provide services for students, faculty and staff. \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 College's deposits may not be recovered. Funds belonging to the State of Georgia (and thus the College) 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 Horne Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Horne Loan Mortgage Association and the Federal National Mortgage Association. \r\n6. Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation. \r\n \r\n-6 - \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2009 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 2: DEPOSITS AND INVESTMENTS \r\n \r\nDEPOSITS The Georgia Military College Board of Trustees is responsible for all details relative to furnishing the required depository protection for Georgia Military College. \r\n \r\nAt June 30, 2009, the carrying value of deposits was $5,615,425.37 and the bank balance was $6,251,330.13. Of the College's deposits, $5,954,938.44 were uninsured. Of these uninsured deposits, $5,815,313.06 were collateralized with securities held by the pledging financial institution's trust department or agent and $139,625.38 were uncollateralized. \r\n \r\nINVESTMENTS At June 30, 2009, the carrying value of the College's investment was $507,590.57, which is materially the same as fair value. These investments were comprised entirely of funds invested in the Century Bank and Trust Trustee Endowment as follows: \r\n \r\nInvestment Type \r\n \r\nFair Value \r\n \r\nDebt Securities Mutual Bond Funds \r\n \r\n$ 59,144.85 \r\n \r\nOther Investments Equity Mutual Funds Common Stock \r\n \r\n305,633.90 142,811.82 \r\n \r\nTotal Investments \r\n \r\n$ 507,590.57 \r\n \r\nNOTE 3: ACCOUNTS RECEIVABLE \r\n \r\nAccounts receivable consisted of the following at June 30, 2009. \r\n \r\nStudent Tuition and Fees Federal, State and Private Funds \r\n \r\n$ 1,918,402.68 357,743.69 \r\n \r\nLess Allowance for Doubtful Accounts \r\n \r\n$ 2,276,146.37 89,494.81 \r\n \r\nNet Accounts Receivable \r\n \r\n$ 2! 186,651.56 \r\n \r\nNOTE 4: CAPITAL ASSETS \r\n \r\nFollowing are the changes in the College's capital assets for the year ended June 30, 2009: \r\n \r\n-7- \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2009 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 4: CAPITAL ASSETS \r\n \r\nBeginning Balance July 1, 2008 \r\n \r\nAdditions \r\n \r\nReductions \r\n \r\nEnding Balance June 30, 2009 \r\n \r\nCapital Assets, Not Being Depreciated: \r\n \r\nLand \r\n \r\n$ 514,484.58 $ \r\n \r\nCapitalized Collections \r\n \r\n63,187.35 \r\n \r\nConstruction Work-In-Progress \r\n \r\n143,125.13 \r\n \r\n62,597.94 $ \r\n \r\n0.00 $ \r\n \r\n577,082.52 63,187.35 143,125.13 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n$ 720,797.06 $ 62,597.94 $ \r\n \r\n0.00 $ 783,395.00 \r\n \r\nCapital Assets, Being Depreciated: Infrastructure Building and Building Improvements Facilities and Other Improvements Equipment Library Collections \r\n \r\n$ 278,690.00 46,753,688.00 $ 2,093,085.77 2,098,457.90 2,420,910.84 \r\n \r\n120,776.38 205,159.00 324,098.75 $ 245,667.37 \r\n \r\n110,678.85 11,088.00 \r\n \r\n$ 278,690.00 46,874,464.38 2,298,244.77 2,311,877.80 2,655,490.21 \r\n \r\nTotal Assets Being Depreciated \r\n \r\n$ 53,644,832.51 $ 895,701.50 $ 121,766.85 $54,418,767.16 \r\n \r\nLess: Accumulated Depreciation: Infrastructure Building and Building Improvements Facilities and Other Improvements Equipment Library Collections \r\n \r\n$ 256,155.86 $ 18,812.17 \r\n \r\n9,385,609.10 1,232,334.74 \r\n \r\n690,152.08 \r\n \r\n134,648.60 \r\n \r\n1,119,866.16 \r\n \r\n255,478.49 $ \r\n \r\n1,523,614.30 \r\n \r\n148,992.26 \r\n \r\n67,058.25 11,088.00 \r\n \r\n$ 274,968.03 10,617,943.84 824,800.68 1,308,286.40 1,661,518.56 \r\n \r\nTotal Accumulated Depreciation \r\n \r\n$ 1,790,266.26 $ 78,146.25 $14,687,517.51 \r\n \r\nTotal Capital Assets, Being Depreciated, \r\n \r\nNet \r\n \r\n$ 40 669,435.01 $ -894,564.76 $ \r\n \r\n43,620.60 $39,731,249.65 \r\n \r\nCapital Assets, Net \r\n \r\n$ 41320232 01 $ -831 266 82 $ 43,620.60 $ 40.514.644.65 \r\n \r\nNOTE 5: DEFERRED REVENUE \r\n \r\nDeferred revenue consisted of the following at June 30, 2009. \r\n \r\nPrepaid Tuition and Fees Other Deferred Revenue \r\n \r\n$ 542,167.93 764,082.00 \r\n \r\nTotals NOTE 6: LONG-TERM LIABILITIES \r\n \r\n$ 1,306,249.93 \r\n \r\nThe College's Long-Term liability activity for the year ended June 30, 2009 was as follows: \r\n \r\n-8- \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2009 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE6: LONG-TERM LIABILITIES \r\n \r\nLeases Lease Obligations \r\nOther Liabilities Compensated Absences Notes Payable \r\nTotal \r\nTotal Long-Term Obligations \r\n \r\nBeginning Balance Julx 1, 2008 \r\n$ 212,096.27 \r\n$ 361,853.72 6,723,392.03 \r\n$ 7,085,245.75 $ 7 297 342 02 \r\n \r\nAdditions $ 138,178.92 $ 444,262.52 $ 444,262.52 \r\n \r\nReductions $ 86,377.82 $ 422,772.45 \r\n170,367.87 \r\n$ 679 518 14 \r\n \r\nEnding Balance June 30, 2009 \r\n$ 263,897.37 \r\n$ 383,343.79 6,553,024.16 \r\n$ 6,936,367.95 $ 7 200 265 32 \r\n \r\nCurrent Portion \r\n$ 86 915.32 \r\n$ 383,343.79 178,237.84 \r\n$ 561,581.63 $ 648 496 95 \r\n \r\nNOTE 7: NET ASSETS \r\n \r\nChanges in Net Asset activity for the year ended June 30, 2009 are as follows: \r\n \r\nInvested in Capital Assets Net of Related Debt \r\nRestricted Net Assets \r\nUnrestricted Net Assets \r\nTotal Net Assets \r\n \r\nBalance July 1. 2008 \r\n \r\nAdditions \r\n \r\nReductions \r\n \r\nBalance June 30, 2009 \r\n \r\n$34,454,743.77 $ -970,145.74 $ -213,125.09 $33,697,723.12 \r\n \r\n1,074,387.40 16,953,387.14 17,088,669.08 \r\n \r\n939,105.46 \r\n \r\n2,205,093.67 26,740,095.20 23,953,914.47 \r\n \r\n4,991,274.40 \r\n \r\n$ 37 734 224 84 $ 42 723 336 60 $ 40 829 458 46 $ 39 628,102.98 \r\n \r\nNOTE 8: LEASE OBLIGATIONS \r\n \r\nGeorgia Military College is obligated under various operating leases for the use of real property (land, buildings, and office facilities) and 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 2010 and 2014. Expenses for fiscal year 2009 were $96,383.97 of which $15,147.38 represented interest. Total principal paid on capital leases was $81,236.59 for the fiscal year ended June 30, 2009. Interest rates range from 4.34% to 10.0%. \r\n \r\nOPERATING LEASES Georgia Military College'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 small business equipment, buildings and office facilities. \r\n \r\n-9- \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2009 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 8: LEASE OBLIGATIONS \r\n \r\nOPERATING LEASES Noncancellable operating lease rental expenses in 2009 were $1,504,194.27 for real property. \r\n \r\nFUTURE COMMITMENTS Future commitments for capital leases (which here and on the Statement of Net Assets include other installment purchase agreements) and for noncancellable operating leases having remaining terms in excess of one year as of June 30, 2009, were as follows: \r\n \r\nCapital Leases \r\n \r\nOperating Leases \r\n \r\nYear Ending June 30: 2010 2011 2012 2013 2014 2015 - 2019 2020 \r\n \r\n$ 101,385.97 $ 1,963,253.23 94,096.28 2,045,116.96 59,999.24 1,987,931.68 31,494.67 1,968,584.68 6,960.13 1,754,923.61 6,553,117.00 33,000.00 \r\n \r\nTotal Minimum Lease Payments \r\n \r\n$ 293,936.29 $ 16.305.927.16 \r\n \r\nLess: Interest \r\n \r\n30,038.92 \r\n \r\nPrincipal Outstanding \r\n \r\n$ 263,897.37 \r\n \r\nNOTE9: NOTESPAYABLE \r\n \r\nNotes payable consisted of the following at June 30, 2009: \r\n \r\nCollege note payable secured by Baugh Barracks, dated July 2006, payable in monthly installments of $38,405.70, matures July 2015, Interest rate 4.31 % \r\n \r\n$ 6.553.024.16 \r\n \r\nMATURITY INFORMATION The scheduled maturities of Baugh Barracks notes payable are as follows: \r\n \r\n- 10 - \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2009 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE9: NOTESPAYABLE \r\n \r\nMATURITY INFORMATION \r\n \r\nTotal Principal \r\n \r\nInterest \r\n \r\nTotal Payments \r\n \r\n2010 2011 2012 2013 2014 2015 2016 \r\n \r\n$ 178,237.84 $ 282,618.56 $ 460,856.40 \r\n \r\n186,184.48 \r\n \r\n274,671.92 \r\n \r\n460,856.40 \r\n \r\n193,738.21 \r\n \r\n267,118.19 \r\n \r\n460,856.40 \r\n \r\n203,123.14 \r\n \r\n257,733.26 \r\n \r\n460,856.40 \r\n \r\n212,179.28 \r\n \r\n248,677.12 \r\n \r\n460,856.40 \r\n \r\n221,024.08 \r\n \r\n239,832.32 \r\n \r\n460,856.40 \r\n \r\n5,358,537.13 \r\n \r\n5,358,537.13 \r\n \r\n$ 6.553.024.16 $ 1,570,651.37 $ 8,123,675.53 \r\n \r\nNOTE 10: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\nPlan Description Georgia Military College participates in the Teachers Retirement System of Georgia (TRS), a cost-sharing multiple-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia. TRS provides service retirement, disability retirement, and survivor's benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the TRS offices or the Georgia Department of Audits and Accounts. \r\n \r\nFunding Policy Employees of Georgia Military College who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. Georgia Military College makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. For fiscal year 2009, the employer contribution rate was 9.28% for covered employees. Employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2009 2008 2007 \r\n \r\n100% 100% 100% \r\n \r\n$ 1,169,917.00 $ 1,101,777.00 $ 1,026,236.00 \r\n \r\n- 11 - \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2009 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 10: RETIREMENT PLANS \r\nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nPlan Description Georgia Military College participates in the Employees' Retirement System of Georgia (ERS), a single-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances for employees of the State of Georgia. \r\nThe ERS Board of Trustees created the Supplemental Retirement Benefit Plan (SRBP) effective January 1, 1998. The SRBP was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of ERS. The purpose of SRBP is to provide retirement benefits to employees covered by ERS whose benefits are otherwise limited by IRC 415. \r\nThe benefit structure of ERS is established by the Board of Trustees under statutory guidelines. Unless the employee elects otherwise, an employee who currently maintains membership with ERS based upon State employment that started prior to July 1, 1982, is an \"old plan\" member subject to the 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 the modified plan provisions. Effective January 1, 2009, newly hired State employees, as well as rehired State employees who did not maintain eligibility for the \"old\" or \"new\" plan, are members of the Georgia State Employees' Pension and Savings Plan (GSEPS). ERS members hired prior to January 1, 2009 also have the option to change their membership to the GSEPS plan. \r\nUnder the old plan, 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 a formula adopted by the Board of Trustees for such purpose. The formula considers the monthly average of the member's highest 24 consecutive calendar months of salary, the number of years of creditable service, and the member's age at retirement. Post-retirement cost-of-living adjustments may 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\nFunding Policy As established by State statute, all full-time employees of the State of Georgia and its political subdivisions, who are not members of other state retirement systems, are eligible to participate in the ERS. Both employer and employee contributions are established by State statute. The College's payroll for the year ended June 30, 2009, for employees covered by ERS was $69,877.08. The College's total payroll for all employees was $17,364,489.11. \r\n- 12 - \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2009 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 10: RETIREMENT PLANS \r\n \r\nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\n \r\nFunding Policy Member contribution rates are set by law. Member contributions under the old plan are 4% of annual compensation up to $4,200 plus 6% of annual compensation in excess of $4,200. Under the old plan, the College pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these College contributions are included in the members' accounts for refund purposes and are used in the computation of the members' eamable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The College is required to contribute at a specified percentage of active member payroll established by the Board of Trustees determined annually in accordance with actuarial valuation and minimum funding standards as provided by law. These College contributions are not at any time refundable to the member or his/her beneficiary. \r\n \r\nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2009 2008 2007 \r\n \r\n100% 100% 100% \r\n \r\n$ \r\n \r\n7,274.18 \r\n \r\n$ \r\n \r\n6,495.00 \r\n \r\n$ \r\n \r\n1,988.25 \r\n \r\nActuarial and Trend Information Actuarial and historical trend information is presented in the ERS June 30, 2009 :financial report, which may be obtained through ERS. \r\n \r\nNOTE 11: CONTINGENCIES \r\n \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 expenditures which are disallowed under grant terms. The amount of expenditures which may be disallowed by the grantor cannot be determined at this time although Georgia Military College expects such amounts, if any, to be immaterial to its overall financial position. \r\n \r\nLitigation, claims and assessments filed against Georgia Military College, 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, 2009. \r\n \r\n- 13 - \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2009 \r\n \r\nEXHIBIT ''D\" \r\n \r\nNOTE 11: CONTINGENCIES \r\n \r\nDuring fiscal year 2002, upon advice of the Attorney General's Office, Georgia Military College required that full-time employees participate in the Teachers Retirement System of Georgia. Previously, participation was elective by full-time employees. As a result of that change, a number of former full-time employees and \"constructively qualified\" faculty members were eligible to \"purchase\" prior service credit (based on employment at Georgia Military College) in Teachers Retirement System of Georgia, and Georgia Military College became responsible for its share of the purchase. For fiscal year 2009, Georgia Military College's potential liability for its share of the purchase has been estimated at $721,483.24. \r\n \r\nNOTE 12: POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS \r\n \r\nThe College participates in two State of Georgia postemployment benefit plans, the Georgia Retiree Health Benefit Fund (administered by the Department of Community Health) and the State Employees' Assurance Department - OPEB (administered by the ERS System). Separate financial reports that include the applicable financial statements and required supplementary information for these plans are publicly available and may be obtained from the respective system offices. \r\n \r\nGeorgia Retiree Health Benefit Fund The Georgia Retiree Health Benefit Fund (GRHBF) is a cost-sharing multiple-employer defined benefit postemployment healthcare plan that covers retired employees of the State including all departments, agencies and local school systems. GRHBF provides health insurance benefits to eligible retirees and their qualified beneficiaries through the health insurance plan for State employees. The Official Code of Georgia Annotated (OCGA) assigns the authority to establish and amend the benefit provisions of the employees' health insurance plan (including benefits for retirees) to the Board of Community Health (Board). \r\n \r\nThe contribution requirements of the plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately 25 percent of the cost of the health insurance coverage. \r\n \r\nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rate is established to fund both the active and retired employee health insurance plans based on projected \"pay-as-you-go\" financing requirements. The combined rates for the active and retiree plans for the fiscal year ended June 30, 2009, were as follows: \r\n \r\nCertified Employees July 2008 - January 2009 February 2009 March 2009 - May 2009 June 2009 \r\n \r\n18.534% of covered payroll for August - February Coverage 8.579% of covered payroll for March Coverage 3.688% of covered payroll for April - June Coverage 0.000% of covered payroll for July Coverage \r\n \r\n- 14 - \r\n \r\n GEORGIA MILITARY COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2009 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 12: POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS \r\n \r\nGeorgia Retiree Health Benefit Fund \r\n \r\nNon-Certified Employees \r\n \r\nJuly 2008 - June 2009 \r\n \r\n$162. 72 per employee/per month \r\n \r\nNo additional contribution was required by the Board for fiscal year 2009 nor contributed to GRBHF to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the State plan for other postemployment benefits and are subject to appropriation. The College's contribution to the health insurance plan for the fiscal year ended June 30, 2009, was $688,027.61, which equaled the required contribution. \r\n \r\nState Employees' Assurance Department - OPEB State Employees' Assurance Department - OPEB (SEAD-OPEB) is a cost-sharing multipleemployer defined benefit postemployment plan that was created in fiscal year 2007 by the Georgia General Assembly to provide term life insurance to retired and vested inactive members of the Employees' Retirement System. \r\n \r\nContributions by plan members are established by the Board of Trustees, up to the maximum allowed by statute (not to exceed 0.5% of eamable compensation). The Board of Trustees of the Employees' Retirement System establish employer contribution rates, such rates which, when added to members' contributions, shall not exceed 1% of eamable compensation. For the fiscal year ended June 30, 2009, contributions of ERS \"old plan\" members were 0.45% of eamable compensation, 0.22% of which was paid by the employer. Contributions of ERS \"new plan\" members were 0.23% of eamable compensation. There were no employer annual required contributions (ARC) for the fiscal years ended June 30, 2009 and June 30, 2008. \r\n \r\nNOTE 13: AFFILIATED ORGANIZATIONS \r\n \r\nThe Georgia Military College Foundation, Inc., is a legally separate, tax exempt organization whose activities primarily support Georgia Military College. This affiliated organization is considered a potential component unit of the State of Georgia in accordance with GASB Statement No. 39, Determining Whether Certain Organizations are Component Units. Therefore, the financial statements of this affiliated organization are not included in these financial statements. Copies of the financial statements for the affiliated organization may be obtained from Georgia Military College. \r\n \r\n- 15 - \r\n \r\n (This page left intentionally blank) \r\n \r\n SUPPLEMENTARY INFORMATION \r\n \r\n (This page left intentionally blank) \r\n \r\n GEORGIA MILITARY COLLEGE RECONCILIATION OF SALARIES AND TRAVEL \r\nYEAR ENDED JUNE 30, 2009 \r\n \r\nSCHEDULE \"1\" \r\n \r\nTotals per Annual Supplement \r\nAccruals June 30, 2009 June 30, 2008 \r\nCompensated Absences June 30, 2009 June 30, 2008 \r\nAdjustments: College Work Study Unidentified Variance \r\n \r\nSALARIES \r\n$ 17,475,541.98 $ \r\n \r\nTRAVEL 278,374.36 \r\n \r\n635,018.74 -573,772.50 \r\n \r\n356,101.99 -336, 139.08 \r\n \r\n-192,262.53 0.51 \r\n \r\n$ 17,364,489.11 $ ======2=7=8=,=3=7=4=.3=6= \r\n \r\n- 19 - \r\n \r\n SECTION II FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\n \r\n GEORGIA MILITARY COLLEGE SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS \r\nYEAR ENDED JUNE 30, 2009 \r\nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\nOTHER ITEMS \r\nGEORGIA MILITARY COLLEGE TRAVEL CARDS During our testing of Georgia Military College's (GMC) VISA travel credit card activity, we noted instances where the travel card policy was not being followed. GMC 's policy for travel credit cards provides that expenditures should be \"utilized for travel and entertainment related expenses\" and \"use is limited to official GMC business travel and entertainment.\" However, an examination of credit card transactions revealed numerous instances where purchases were not related to travel or entertainment, several of which had not been approved by anyone in management at all, and one of which had to be reimbursed to the Business Office because it was a personal charge by an employee made by mistake. Management should strengthen procedures to ensure that all policies related to the Georgia Military College travel credit cards are strictly followed and adhered to and that all such purchases are approved by the appropriate Business Office official before the purchase is made. \r\nSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (SEFA) Errors were noted in the expenditure amounts reported on the Schedule ofExpenditures and Federal Awards (SEFA) submitted by Georgia Military College to the State Accounting Office for inclusion in the State of Georgia's Single Audit Report. The SEFA was missing a portion of expenditures for the Title III program. The SEFA was corrected to reflect the correct fiscal year expenditures for all Federal activity. Management should ensure that the submitted information for the SEFA is complete and accurate to reflect all Federal assistance administered by the College. \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":7,"first_page?":true,"last_page?":true},"facets":[{"name":"type_facet","items":[{"value":"Text","hits":7}],"options":{"sort":"count","limit":16,"offset":0,"prefix":null}},{"name":"creator_facet","items":[{"value":"Georgia. 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