{"response":{"docs":[{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bw43-b2003-h2004","title":"State University of West Georgia, Carrollton, Georgia, report on review of the financial statements for the fiscal year ended June 30, 2004","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Carroll County, Carrollton, 33.58011, -85.07661"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2003/2004"],"dcterms_description":["June 30, 2000-fiscal year ended June 30, 2004.","Title fluctuates: Audits conducted \"in accordance with generally accepted auditing standards\" are issued as: Audit report; reviews that are \"substantially less in scope than an audit in accordance with generally accepted auditing standards\" are issued as: Review.","Title from cover.","Fiscal year ended June 30, 2004, issued in 2005? (online surrogate) (Georgia Government Publications database, viewed April 20, 2020)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["State University of West Georgia--Appropriations and expenditures--Periodicals.","Education, Higher--Georgia--Auditing--Periodicals.","Education, Higher--Georgia--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["State University of West Georgia, Carrollton, Georgia, report on review of the financial statements for the fiscal year ended June 30, 2004"],"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-bw43-b2003-h2004"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bw43-b2003-h2004"],"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":"STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS \r\nI \r\nSTATE UNIVERSITY OF WEST GEORGIA \r\nCARROLLTON, GEORGIA REPORT ON REVIEW \r\nOF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \r\nRussell W. Hinton State Auditor \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nMANAGEMENT'S DISCUSSION AND ANALYSIS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nEXHIBITS \r\n \r\nA STATEMENT OF NET ASSETS \r\n \r\n3 \r\n \r\nB STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS \r\n \r\n5 \r\n \r\nC STATEMENT OF CASH FLOWS \r\n \r\n6 \r\n \r\nD NOTES TO THE FINANCIAL STATEMENTS \r\n \r\n8 \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\nSCHEDULES \r\n \r\n1 SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO \r\n \r\nBUDGET - (NON-GAAP BASIS) \r\n \r\nRESIDENT INSTRUCTION \r\n \r\n33 \r\n \r\n2 RECONCILIATION OF SALARIES AND TRAVEL \r\n \r\n35 \r\n \r\nSECTION II CURRENT YEAR FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \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\n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \r\nJanuary 18, 2005 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly of Georgia Members of the Board of Regents of the University System of Georgia \r\nand Honorable Beheruz N. Sethna, President State University of West Georgia \r\nINDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \r\nLadies and Gentlemen: \r\nWe have reviewed the accompanying basic financial statements ofState University ofWest Georgia, an organizational unit ofthe State ofGeorgia, and its' aggregate discretely presented component unit, as of and for the year ended June 30, 2004, as listed in the table of contents, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. We did not review the financial statements of State University of West Georgia's discretely presented component unit. Those financial statements were audited by other auditors whose report thereon has been furnished to us and the results ofour review expressed herein, insofar as it relates to the amounts included for State University ofWest Georgia Foundation is based solely upon the report of the other auditors. All information included in these financial statements is the representation of the management of State University of West Georgia. \r\nA review consists principally ofinquiries ofUniversity personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with auditing standards generally accepted in the United States of America, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an op1mon. \r\nBased on our review and the report of other auditors discussed above, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with accounting principles generally accepted in the United States of America. \r\n04ARL-66 \r\n \r\n As discussed in Note 1, the University adopted the provisions of the Governmental Accounting Standards Board, Statement Number 39, Determining Whether Certain Organizations are Component Units during the year ended June 30, 2004. \r\nManagement's Discussion and Analysis is not a required part ofthe basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. We and other auditors have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of this supplementary information, and we are not aware of any material modifications that should be made thereto. \r\nOur review was made for the purpose of expressing limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with accounting principles generally accepted in the United States ofAmerica. The accompanying supplementary information (Schedules 1 and 2) is presented for additional analysis purposes. Such information has been subjected to the inquiries and analytical procedures applied in the review ofthe financial statements, and we are not aware ofany material modifications that should be made to such data. \r\nRespectfully submitted, \r\n \r\nRWH:as 04ARL-66 \r\n \r\nRussell W. Hinton State Auditor \r\n \r\n REQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA \r\nManagement's Discussion and Analysis \r\n \r\nIntroduction \r\n \r\nState University of West Georgia is one of the 34 institutions of the University System of Georgia. The State University of West Georgia, a charter member of the University System of Georgia, is a selectively focused, public comprehensive institution providing undergraduate and graduate education in arts and sciences, business and education. The University located in Carrollton, Georgia, was founded in 1906 and remains second to none in relation to our theme of Educational Excellence in a Personal Environment. In the fall of 2003, we had the highest headcount, highest credit hour generation and the highest SAT scores in the history of the University. \r\n \r\nWest Georgia offers a range of disciplinary, interdisciplinary and professional programs at the baccalaureate level. The State University of West Georgia offers 113 programs of study, including 60 at the Bachelor's level, 52 at the Masters and Specialist level, and one Doctoral program. During fall semester, the Southern Association of Colleges and Schools (SACS) reaffirmed State University of West Georgia's accreditation for another 10 years, based on an accreditation visit in February 2003. In addition, the University has achieved national recognition in several areas including, academic debate, faculty-directed student research and athletic competition. The institution continues to grow as shown by the comparison that follows: \r\n \r\nFaculty \r\n \r\nStudents \r\n \r\nFY2004 FY2003 FY2002 \r\n \r\n398 \r\n \r\n10,255 \r\n \r\n355 \r\n \r\n9,675 \r\n \r\n344 \r\n \r\n9,030 \r\n \r\nOverview ofthe Financial Statements and Financial Analysis \r\n \r\nState University of West Georgia is proud to present its financial statements for fiscal year 2004. The emphasis of discussions about these statements will be on current year data. There are three financial statements presented: the Statement of Net Assets; the Statement of Revenues, Expenses and Changes in Net Assets; and, the Statement of Cash Flows. This discussion and analysis of the University's financial statements provides an overview of its financial activities for the year. Comparative data is provided for fiscal year 2003 and fiscal year 2004. \r\n \r\nStatement ofNet Assets \r\n \r\nThe Statement of Net Assets presents the assets, liabilities, and net assets of the University as of the end of the fiscal year. The Statement of Net Assets is a point oftime financial statement. The purpose of the Statement of Net Assets is to present to the readers of the financial statements a \r\n \r\n- 1- \r\n \r\n fiscal snapshot of State University of West Georgia. The Statement of Net Assets presents endof-year data concerning Assets (current and noncurrent), Liabilities (current and noncurrent), and Net Assets (assets minus liabilities). The difference between current and noncurrent assets will be discussed in the Notes to the Financial Statements. \r\n \r\nFrom the data presented, readers of the Statement of Net Assets are able to determine the assets available to continue the operations of the institution. They are also able to determine how much the institution owes vendors. \r\n \r\nFinally, the Statement of Net Assets provides a picture of the net assets (assets minus liabilities) and their availability for expenditure by the institution. Net assets are divided into three major categories. The first category, invested in capital assets, net of debt, provides the institution's equity in property, plant and equipment owned by the institution. The next asset category is restricted net assets. Expendable restricted net assets are available for expenditure by the institution but must be spent for purposes as determined by donors and/or external entities that have placed time or purpose restrictions on the use of the assets. The final category is unrestricted net assets. Unrestricted net assets are available to the institution for any lawful purpose of the institution. \r\nStatement of Net Assets, Condensed \r\n \r\nJune 30, 2004 \r\n \r\nJune 30, 2003 \r\n \r\nAssets Current Assets Capital Assets, Net Other Assets \r\n \r\n$ 16,349,507.20 57,806,738.27 1,863,246.96 \r\n \r\n$ 16,343,609.26 55,821,328.92 1,876,989.84 \r\n \r\nTotal Assets \r\n \r\n$ 76,019,492.43 \r\n \r\n$ 74,041,928.02 \r\n \r\nLiabilities Current Liabilities Noncurrent Liabilities \r\n \r\n$ 8,698,111.90 2,616.201.25 \r\n \r\n$ 7,480,961.89 996,329.86 \r\n \r\nTotal Liabilities \r\n \r\n$11,314,313.15 \r\n \r\n$ 8,477,291.75 \r\n \r\nNet Assets Invested in Capital Assets, Net of Debt Restricted - Expendable Unrestricted \r\n \r\n$ 56,421,479.02 2,060,580.45 6,223,119.81 \r\n \r\n$ 55,791,201.94 2,062,366.31 7,711,068.02 \r\n \r\nTotal Net Assets \r\n \r\n$64,705,179.28 \r\n \r\n$ 65.564.636.27 \r\n \r\nThe total assets of the institution increased by $1,977,564.41. The increase was primarily due to an increase of $1,985,409.35 in Capital Assets, net of accumulated depreciation. The consumption of assets follows the institutional philosophy to use available resources to acquire and improve all areas of the institution to better serve the instruction, research and public service missions of the institution. \r\n \r\n-11- \r\n \r\n The total liabilities for the year increased by $2,837,021.40. The primary cause for the increase was in current liabilities, primarily $872,873.44 in accounts payable activity due to higher volume of year end commitments and $616,461.15 increase in advance tuition and fee payments for summer semester. Noncurrent liability increased by approximately $1.6 million primarily due to a new \" Financial Commitment Agreement\" of approximately $1.7 million being reflected as deferred revenue, which will benefit future fiscal years, and a decrease of approximately $83,000 in compensated absences liability. The combination of the increase in total assets of $1,977,564.41 and the increase in total liabilities of $2,837,021.40 causes a decrease in total net assets of $859,456.99. The decrease is due primarily to the overall increase in current liabilities versus current assets and can be summarized by the increase in deferred revenue. Statement ofRevenues, Expenses and Changes in Net Assets Changes in total net assets as presented on the Statement of Net Assets are based on the activity presented in the Statement of Revenues, Expenses and Changes in Net Assets. The purpose of the statement is to present revenues received by the institution both operating and nonoperating, the expenses paid by the institution, operating and nonoperating, and any other revenues, expenses, gains and losses received or spent by the institution. Generally speaking operating revenues are received for providing goods and services to the various customers and constituencies of the institution. Operating expenses are those expenses paid to acquire or produce the goods and services provided in return for the operating revenues, and to carry out the mission of the institution. Nonoperating revenues are revenues received for which goods and services are not provided. For example state appropriations are nonoperating because they are provided by the Georgia Legislature to the institution without the Legislature directly receiving commensurate goods and services for those revenues. \r\n- 111 - \r\n \r\n Statement of Revenues, Expenses and Changes in Net Assets, Condensed \r\n \r\nJune 30, 2004 \r\n \r\nJune 30, 2003 \r\n \r\nOperating Revenues Operating Expenses \r\n \r\n$ 43,096,644.88 85,031,127.81 \r\n \r\n$ 39,571,379.45 84,742,910.22 \r\n \r\nOperating Loss \r\n \r\n$-41, 934,482.93 \r\n \r\n$-45,171,530.77 \r\n \r\nNonoperating Revenues and Expenses \r\n \r\n37,653,186.58 \r\n \r\n38,911,734.54 \r\n \r\nIncome (Loss) Before Other Revenues, Expenses, Gains or Losses \r\n \r\n$ -4,281,296.35 $ -6,259,796.23 \r\n \r\nOther Revenues, Expenses, Gains or Losses \r\n \r\n3,421,839.36 \r\n \r\n733,367.32 \r\n \r\nIncrease (Decrease) in Net Assets \r\n \r\n$ -859,456.99 $ -5,526,428.91 \r\n \r\nNet Assets at Beginning of Year \r\n \r\n65,564,636.27 \r\n \r\n71,091,065.18 \r\n \r\nNet Assets at End of Year \r\n \r\n$ 64)05!179.28 \r\n \r\n$ 65!564!636.27 \r\n \r\nThe Statement of Revenues, Expenses and Changes in Net Assets reflects an overall decrease in the net assets at the end of the year. Some highlights of the information presented on the Statement of Revenues, Expenses and Changes in Net Assets, which can be better understood with reference to the statement of Revenues by Source are, as follows: \r\n \r\n- IV - \r\n \r\n Revenue By Source For The Years Ended June 30, 2004 and June 30, 2003 \r\n \r\nOperating Revenue Tuition and Fees Grants and Contracts Rents and Royalties Sales and Services of Educational Departments Auxiliary Other \r\nTotal Operating Revenue \r\nNonoperating Revenue State Appropriations Gifts Investment Income Grants and Contracts Other \r\nTotal Nonoperating Revenue \r\nCapital Grants and Gifts State Other \r\nTotal Capital Grants and Gifts \r\nTotal Revenues \r\n \r\nJune 30, 2004 \r\n \r\nJune 30, 2003 \r\n \r\n$18,967,484.51 8,914,580.67 12,462.00 \r\n271,488.40 14,307,960.89 \r\n622,668.41 \r\n$ 43,096,644.88 \r\n \r\n$ 15,894,201.69 8,968,841.00 13,831.00 \r\n258,475.01 13,300,102.57 \r\n1,135,928.18 \r\n$ 39,571,379.45 \r\n \r\n$ 38,308,824.05 193,578.47 -288,248.11 \r\n$ 38,214,154.41 \r\n \r\n$ 39,946,637.36 4,000.00 \r\n299,599.97 10,000.00 \r\n-1,345,632.43 \r\n$ 38,914,604.90 \r\n \r\n$ 3,246,839.36 175,000.00 \r\n$ 3,421,839.36 \r\n$ 84)32!638.65 \r\n \r\n$ 161,197.90 572,169.42 \r\n$ 733,367.32 \r\n$ 79!219)51.67 \r\n \r\n- V- \r\n \r\n Expenses (By Functional Classification) For The Years Ended June 30, 2004 and June 30, 2003 \r\n \r\nJune 30, 2004 \r\n \r\nJune 30, 2003 \r\n \r\nOperating Expenses Instruction Research Public Service Academic Support Student Services Institutional Support Plant Operations and Maintenance Scholarships and Fellowships Auxiliary Enterprises \r\n \r\n$ 34,713,240.31 860,659.05 163,571.16 \r\n11,253,016.14 4,816,802.95 8,152,838.24 10,420,879.21 1,419,185.97 13,230,934.78 \r\n \r\n$ 36,759,876.31 922,986.26 176,203.62 \r\n11,215,927.25 4,470,628.32 8,055,238.59 11,594,831.66 1,626,188.09 9,921,030.12 \r\n \r\nTotal Operating Expenses \r\n \r\n$ 85,031,127.81 \r\n \r\n$ 84,742,910.22 \r\n \r\nNonoperating Expenses Interest Expense Other \r\n \r\n$ \r\n \r\n2,027.83 \r\n \r\n$ \r\n \r\n2,870.36 \r\n \r\n558,940.00 \r\n \r\nTotal Nonoperating Expenses \r\n \r\n$ 560,967.83 \r\n \r\n$_--=2i=.,8..:....:70:c.=.3:..=6 \r\n \r\nTotal Expenses \r\n \r\n$ 85,592,095.64 \r\n \r\n$ 84,745,780.58 \r\n \r\nAn overall increase in the operating revenues of over $3 .5 million was the results of the impact of a 10% ($1.6 million) tuition increase granted by the Regents of the University System of Georgia, plus an increase in fall and spring head count and credit hours. We served 10,255 students in the fall, up from 9,675 in fall 2002, resulting in an additional $1.4 million in tuition revenue. \r\n \r\nAuxiliary revenues also increased by approximately $1 million, the result of the additional students having an impact on bookstore sales, and food service revenues. During the summer of 2003, the food service facilities were completely renovated which had a significant impact on the food service program, and thus contributed to the increased revenue. \r\n \r\nNonoperating revenues decreased overall by approximately $700,000. The decrease is primarily a result of a decrease in state appropriations of $1,637,813.31 caused by a 5.5% budget cut at the state level. In addition, investment income was down by approximately $100,000, because of the continued weak economy. \r\n \r\nCapital gifts of approximately $3.3 million were booked with the construction completion of the new Adamson Hall. This building is a reproduction of the earlier Adamson, which was one of the original campus buildings constructed in 1917. It was tom down two years ago. The new building looks like the original and will be used as offices and classrooms for the Richards College of Business and the Department of Continuing Education. \r\n \r\n- Vl - \r\n \r\n Total expenditures increased by $846,315.06, with expenditure highlights as follows: \r\n A decrease in instructional expense of approximately $2.0 million, which is directly related to the decrease in the state appropriation of $1,637,813.31. \r\n An increase in academic support expense of $37,088.89 reflecting increased support costs for the additional students in the areas of library collections, and other library and instructional technology costs. \r\n Increases in the areas of institutional support and student service support reflect the costs of the additional students. \r\n Auxiliary enterprises expenditures increased by $3 .3 million reflecting the cost of generating revenue. \r\nThe compensation and employee benefits category increased by $1,460,604.58. The increase reflects a 10% increase in all health benefits and an increase in the number of faculty and staff employees. Per legislative directive and Board of Regents budgeting practice, the University did not grant any salary increases in the 2004 fiscal year. This reflects the continued poor economic conditions in the state. \r\nUtilities increased by $354,523.59 during the past year. The increase was primarily associated with a combination of increased usage because of our record headcount, more classes, a colder than normal winter, and overall rising utility costs. Also, during fiscal year 2003, we had a credit of $200,000, a rebate against our utility costs, which understated the true cost in fiscal year 2003. \r\nStatement ofCash Flows \r\nThe final statement presented by the State University of West Georgia is the Statement of Cash Flows. The Statement of Cash Flows presents detailed information about the cash activity of the institution during the year. The statement is divided into five parts. The first part deals with operating cash flows and shows the net cash used by the operating activities of the institution. The second section reflects cash flows from noncapital financing activities. This section reflects the cash received and spent for nonoperating, noninvesting, and noncapital financing purposes. The third section deals with cash flows from capital and related financing activities. This section deals with the cash used for the acquisition and construction of capital and related items. The fourth section reflects the cash flows from investing activities and shows the purchases, proceeds, and interest received from investing activities. The fifth section reconciles the net cash used to the operating income or loss reflected on the Statement of Revenues, Expenses and Changes in Net Assets. \r\n- Vll - \r\n \r\n Cash Flows for the Years Ended June 30, 2004 and June 30, 2003, Condensed \r\n \r\nJune 30, 2004 \r\n \r\nJune 30, 2003 \r\n \r\nCash Provided (Used) By: Operating Activities Noncapital Financing Activities Capital and Related Financing Activities Investing Activities \r\n \r\n$-37,366,477.39 38,999,934.51 -1,984,005.72 221,784.76 \r\n \r\n$-38,834,955.98 40,448,015.26 -3,087,678.75 279,825.92 \r\n \r\nNet Change in Cash \r\n \r\n$ -128,763.84 $ -1,194,793.55 \r\n \r\nCash, Beginning of Year \r\n \r\n$ 13,400,069.85 \r\n \r\n$ 14,594,863.40 \r\n \r\nCash, End of Year \r\n \r\n$ 13.271,306.01 \r\n \r\n$ 13.400.069.85 \r\n \r\nCapital Assets \r\n \r\nThe University had significant capital asset additions for facilities in fiscal year 2004. A new parking lot (400 vehicles) was completed at a cost of $456,000 the new Adamson Hall was completed at a cost of $3.3 million, Row Hall was renovated (mechanical systems and new windows) for $976,000; and the Z-6 and UCC food service facilities were completely renovated with our ARAMARK partners. Cost to the University was $400,000 for infrastructure improvements. \r\n \r\nFacilities projects designed to enhance campus life include the completion of our privatized University Suites housing facility (612 beds in partnership with the State University of West Georgia Foundation); a second phase of housing (602 beds) which will start construction this fall and is scheduled for completion in fall 2005; a new privatized campus center; and the Health Wellness and Lifelong Leaming Center, which we expect will start construction in the summer of 2005. All of these projects are expected to increase the number of on-campus residents and further our efforts toward positive growth and retention. \r\n \r\nFor additional information concerning Capital Assets, see Notes 1, 6, 8 and 10 in the Notes to the Financial Statements. \r\n \r\nLong-Term Debt \r\n \r\nThe University had a total Long-Term Debt of $2,067,133.81, of which $1,165,932.56 was reflected as current liability at June 30, 2004. \r\n \r\nFor additional information concerning Long-Term Debt, see Note 1 and 8 in the Notes to the Financial Statements. \r\n \r\n- Vlll - \r\n \r\n Component Units In compliance with GASB Statement No. 39, State University of West Georgia has included the financial statements and notes for all required component units for the calendar year 2003. The State University of West Georgia Foundation had endowment investments of $11,314,911 as of December 31, 2003. Details are available in Note 1, Summary of Significant Accounting Policies and Note 16, Component Units. Economic Outlook The University continues to enjoy significant growth in student headcount. Our numbers increased by 580 students, the second year in a row with an increase in the 6-7% range, and the fourth record setting year in a row. Overall, the growth comes at a time when we continue to have budget cuts. The cumulative effect on operating funds in the last three years is about 16.3%, or a total of $5.2 million. This does not include the $748,000 we lost in MRR (maintenance, repair and rehabilitation) funds in 2003. Because of the budget cuts we are having a difficult time maintaining services at our usual high levels of customer support. However, the overall market position of the university is strong, and although we have some challenges on the financial resource side, we have a strong administrative team, that pulls together even as our resources per student continue to decline. We continue to manage this institution efficiently. As we move into fiscal year 2005 we expect strong continued growth in undergraduate enrollment, a tight budget because of the weak economy, the continued need to manage our resources very efficiently, and the maintaining of our conservative approach to budget forecasting and management. \r\nBeheruz N. Sethna, President State University of West Georgia \r\nWilliam N. Gauthier, Vice President for Business and Finance State University of West Georgia \r\n- IX - \r\n \r\n BASIC FINANCIAL STATEMENTS - 1- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA STATEMENT OF NET ASSETS JUNE 30 2004 \r\n \r\nEXHIBIT\"A\" \r\n \r\nASSETS \r\nCurrent Assets Cash and Cash Equivalents Short-Term Investments Accounts Receivable, Net Federal Financial Assistance Other Pledges Receivable Prepaid Items Inventories \r\nTotal Current Assets \r\nNoncurrent Assets Investments Notes Receivable Pledges Receivable Capital Assets, Net \r\nTotal Noncurrent Assets \r\nTotal Assets \r\nLIABILITIES \r\nCurrent Liabilities Contracts Payable Salaries Payable Accounts Payable Deferred Revenue Funds Held for Others Capital Leases Compensated Absences Other Liabilities \r\nTotal Current Liabilities \r\nNoncurrent Liabilities Bonds Payable Capital Leases Compensated Absences Deferred Revenue \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\n \r\nPRIMARY GOVERNMENT \r\n \r\nCOMPONENT UNIT \r\nSTATE UNIVERSITY OF WEST GEORGIA FOUNDATION \r\n \r\n$ 13,271,306.01 $ 600,000.00 \r\n196,645.30 751,037.60 \r\n771,515.89 759,002.40 \r\n$ 16,349,507.20 $ \r\n$ $ 1,863,246.96 \r\n57 806 738.27 \r\n$ 59,669,985.23 $ $ 76,019,492.43 $ \r\n \r\n9,677,414.00 288,735.00 \r\n3,509.00 590,460.00 \r\n10,560 118.00 \r\n10,588,942.00 1,000.00 \r\n440,963.00 6,601,397.00 17,632,302.00 28,192,420.00 \r\n \r\n$ \r\n \r\n51,841.12 $ \r\n \r\n193,235.37 \r\n \r\n1,401,395.78 \r\n \r\n4,558,943.72 \r\n \r\n966,810.85 \r\n \r\n11,840.60 \r\n \r\n1,154,091.96 \r\n \r\n359,952.50 \r\n \r\n$ 8,698,111.90 $ \r\n \r\n$ \r\n \r\n$ \r\n \r\n7,358.65 \r\n \r\n893,842.60 \r\n \r\n1,715,000.00 \r\n \r\n$ 2,616,201.25 $ \r\n \r\n$ 11,314,313.15 $ \r\n \r\n$ 56,421,479.02 $ \r\n2,060,580.45 6,223,119.81 \r\n \r\n1,374,219.00 \r\n1 374,219.00 13,205,000.00 \r\n13 205,000.00 14,579,219.00 \r\n4,500.00 12,058,546.00 \r\n1,068,842.00 481,313.00 \r\n \r\nTotal Net Assets \r\n \r\n$ 64,705,179.28 $ \r\n \r\nSee Independent Accountant's Combined Report on Review of Basic Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement. \r\n-3 - \r\n \r\n13,613,201.00 \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA STATEMENT OF REVENUES EXPENSES AND CHANGES IN NET ASSETS \r\nYEAR ENDED JUNE 30 2004 \r\n \r\nEXHIBIT\"B\" \r\n \r\nOPERATING REVENUES \r\nStudent Tuition and Fees Less: Scholarship Allowances \r\nGifts and Contributions Endowment Income (Per Spending Plan) Grants and Contracts \r\nFederal State Nongovernmental Rents and Royalties Sales and Services of Educational Departments Auxiliary Enterprises Residence Halls Bookstore Food Services Parking/Transportation Health Services Intercollegiate Athletics Other Organizations Other Operating Revenues \r\nTotal Operating Revenues \r\nOPERATING EXPENSES \r\nSalaries Faculty Staff \r\nEmployee Benefits Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation Payments to or on the Behalf of State University of West Georgia \r\nTotal Operating Expenses \r\nOperating Income (Loss) \r\nNONOPERATING REVENUES (EXPENSES) \r\nState Appropriations Interest and Other Investment Income Interest Expense Other Nonoperating Expenses Other Nonoperating Revenues \r\nNet Nonoperating Revenues (Expenses) \r\nIncome (Loss) Before Other Revenues, Expenses, Gains, or Losses \r\nCapital Grants and Gifts State Local \r\nAdditions to Permanent Endowments \r\nTotal Other Revenues \r\nIncrease (Decrease) in Net Assets \r\nNet Assets - Beginning of Year \r\nNet Assets - End of Year \r\nSee Independent Accountant's Combined Report on Review of Basic Financial Statements and Supplementary Information. \r\nThe notes to the financial statements are an integral part of this statement. \r\n-5- \r\n \r\nPRIMARY GOVERNMENT \r\n \r\nCOMPONENT UNIT \r\nSTATE UNIVERSITY OF WEST GEORGIA FOUNDATION \r\n \r\n$ 24,002,585.67 -5,035, 101.16 $ \r\n7,132,705.39 713,185.45 \r\n1,068,689.83 12.462.00 \r\n271,488.40 \r\n5,578,360.65 841,499.58 \r\n3,336,414.78 568,526.38 \r\n1,326,717.80 2,214,520.44 \r\n441,921.26 622,668.41 \r\n$ 43,096,644.88 $ \r\n \r\n1,467,769.00 395,802.00 \r\n244 512.00 2,108,083.00 \r\n \r\n$ 21,989,066.52 23,084,794.47 $ 12,552,023.12 823,473.84 2,389,546.48 3,141,292.06 16,747,869.43 4,303,061.89 \r\n$ 85,031,127.81 $ \r\n$ -41,934,482.93 $ \r\n \r\n477,068.00 \r\n490,108.00 1,314,937.00 2,282,113.00 -174,030.00 \r\n \r\n$ 38,308,824.05 193,578.47 $ -2,027.83 -558,940.00 -288,248.11 \r\n37,653, 186.58 $ \r\n$--=-4=,28=1,=29-6=.35- $ \r\n$ 3,246,839.36 175,000.00 $ \r\n$ _ ___3c,:4:.2,_1,,_8=3=9=.3=6- $ $ ___-:8:5;=9,-4=56.99 $ \r\n65,564,636.27 $ \r\n \r\n1,601,073.00 \r\n1 601 073.00 1 427,043.00 \r\n1,225,709.00 1 225 709.00 2 652 752.00 10,960 449.00 \r\n \r\n$ 64,705, 179.28 $ ===~13;;;,,,;;,61;,;;3;i,;2;,;;0.;,1;,;;;0,;;,0 \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30 2004 \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 Loans Issued to Students and Employees Collection of Loans to Students and Employees Auxiliary Enterprise Charges: Residence Halls Bookstore Food Services Parking/Transportation Health Services Intercollegiate Athletics Other Organizations Other Receipts (Payments) \r\nNet Cash Provided (Used) by Operating Activities \r\nCASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES State Appropriations Agency Funds Transactions 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 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 \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\n \r\nEXHIBIT\"C\" \r\n \r\n$ 19,185,395.24 8,784,469.36 147,811.15 \r\n-33,072,615.48 -45, 136,136.85 \r\n-2,389,546.48 -481,664.59 495,407.47 \r\n5,718,612.14 841,499.58 \r\n3,336,414.78 568,526.38 \r\n1,326,717.80 2,214,520.44 \r\n441,921.26 652 190.41 \r\n$ -37,366,477.39 \r\n \r\n$ 38,308,824.05 537,557.78 153,552.68 \r\n$ 38,999,934.51 \r\n \r\n$ -1,971,050.16 -10,927.73 -2 027.83 \r\n$ -1 984 005.72 \r\n \r\n$ \r\n \r\n28,206.29 \r\n \r\n193,578.47 \r\n \r\n$ \r\n \r\n221 784.76 \r\n \r\n$ \r\n \r\n-128 763.84 \r\n \r\n$ 13,400,069.85 \r\n \r\n$ 13,271,306.01 \r\n \r\n-6- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30. 2004 \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 Notes Receivable, Net Accounts Payable Salaries Payable Deferred Revenue Other Liabilities Compensated Absences \r\nNet Cash Provided (Used) by Operating Activities \r\nNONCASH ACTIVITY NONCAPITAL FINANCING, CAPITAL AND RELATED FINANCING TRANSACTIONS AND INVESTING ACTIVITIES Capital Assets Acquired by Financial Commitment Agreement (Deferred Revenue) Gift of Capital Assets Reducing Proceeds of Capital Grants and Gifts \r\n \r\nEXHIBIT\"C\" \r\n$ -41,934,482.93 \r\n4,303,061.89 163,394.79 -81,350.27 -89,232.02 13,742.88 186,087.87 51,569.90 -31,137.91 102,577.50 -50 709.09 \r\n$ -37,366.477.39 \r\n$ -1,366,060.00 $ -3,421,839.36 \r\n \r\nSee Independent Accountant's Combined Report on Review of Basic Financial Statements and Supplementary Information. \r\nThe notes to the financial statements are an integral part of this statement. -7- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nNATURE OF OPERATIONS State University of West Georgia 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 State University of West Georgia is one of thirty-four (34) State supported member institutions of higher education in Georgia which comprise the University System of Georgia, an organizational unit of the State of Georgia. The accompanying financial statements reflect the operations of State University of West Georgia as a separate reporting entity. \r\nThe Board of Regents has constitutional authority to govern, control and manage the University System of Georgia. This authority includes but is not limited to the power to designate management, the ability to significantly influence operations, the authority to control institutions' budgets, the power to determine allotments of State funds to member institutions and the authority to prescribe accounting systems and administrative policies for member institutions. State University of West Georgia does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, State University of West Georgia is considered an organizational unit of the Board of Regents of the University System of Georgia reporting entity for financial reporting purposes because of the significance of its legal, operational, and financial relationships with the Board of Regents as defined in Section 2100 of the Governmental Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial Reporting Standards. \r\nThe Board of Regents of the University System of Georgia (and thus State University of West Georgia) is required to implement the Governmental Accounting Standards Board (GASB) Statement No. 39 Determining Whether Certain Organizations are Component Units - an amendment of Statement No. 14, for fiscal year 2004. This statement requires the inclusion of the financial statements for Foundations and affiliated organizations that qualify as component units of the institution. These statements (Statement of Net Assets and Statement of Revenues, Expenses and Changes in Net Assets) are reported discretely in the University's financial statements. For fiscal year 2004, State University of West Georgia is reporting the activity for the State University of West Georgia Foundation. \r\nSee Note 16, for additional component unit disclosures. \r\nFINANCIAL STATEMENT PRESENTATION In June 1999, the GASB issued Statement No. 34, Basic Financial Statements and Management Discussion and Analysis for State and Local Governments. This was followed in November 1999 by GASB Statement No. 35, Basic Financial Statements and Management's Discussion and Analysis for Public Colleges and Universities. The State of Georgia implemented GASB Statement No. 34 as of and for the year ended June 30, 2002. As an organizational unit of the \r\n-8- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nFINANCIAL STATEMENT PRESENTATION State of Georgia, the University also adopted GASB Statements No. 34 and No. 35 as amended by GASB Statements No. 37 and No. 38. The financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) as prescribed by the GASB and are presented as required by these standards to provide a comprehensive, entity-wide perspective of the University's assets, liabilities, net assets, revenues, expenses, changes in net assets, cash flows, and replaces the fund group perspective previously required. \r\nGAAP requires that the reporting of summer school revenues and expenses be between fiscal years rather than in one fiscal year. Due to the lack of materiality, Institutions of the University System of Georgia will continue to report summer revenues and expenses in the year in which the predominate activity takes place. \r\nBASIS OF ACCOUNTING For financial reporting purposes, the University is considered a special-purpose government engaged only in business-type activities. Accordingly, the University's financial statements have been presented using the economic resources measurement focus and the accrual basis of accounting, except as noted in the preceding paragraph. Under the accrual basis, revenues are recognized when earned, and expenses are recorded when an obligation has been incurred. All significant intra-University transactions have been eliminated. \r\nThe University has the option to apply all Financial Accounting Standards Board (FASB) pronouncements issued after November 30, 1989, unless FASB conflicts with GASB. The University has elected to not apply FASB pronouncements issued after the applicable date. \r\nCASH AND CASH EQUIVALENTS Cash and Cash Equivalents consist of petty cash, demand deposits and time deposits in authorized financial institutions, and cash management pools that have the general characteristics of demand deposit accounts. This includes the State Investment Pool and the Board of Regents Short-Term Investment Pool. \r\nSHORT-TERM INVESTMENTS Short-Term Investments consist of investments of 90 days - 13 months. This would include certificates of deposits or other time restricted investments with original maturities of six months or more when purchased. Funds are not readily available and there is a penalty for early withdrawal. \r\nINVESTMENTS The University accounts for its investments at fair value in accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools. Changes in unrealized gain (loss) on the carrying value of investments are \r\n \r\n-9- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nINVESTMENTS reported as a component of investment income in the statements of revenues, expenses and changes in net assets. The Board of Regents Legal Fund, the Board of Regents Balanced Income Fund and the Board of Regents Total Return Fund are included under Investments. \r\nACCOUNTS RECEIVABLE Accounts receivable consists of tuition and fee charges to students and auxiliary enterprise services provided to students, faculty and staff, the majority of each residing in the State of Georgia. Accounts receivable also include amounts due from the Federal government, state and local governments, or private sources, in connection with reimbursement of allowable expenditures made pursuant to the University's grants and contracts. Accounts receivable are recorded net of estimated uncollectible amounts. \r\nINVENTORIES Consumable supplies are recorded on the consumption method and are valued at cost using the weighted average method. \r\nResale Inventories are valued at cost using the first-in, first-out (\"FIFO\") method. \r\nCAPITAL ASSETS Capital assets are recorded at cost at the date of acquisition, or fair market value at the date of donation in the case of gifts. For equipment, the University's capitalization policy includes all items with a unit cost of $5,000.00 or more, and an estimated useful life of greater than one year. Renovations to buildings, infrastructure, and land improvements that exceed $100,000.00 and significantly increase the value or extend the useful life of the structure are capitalized. Routine repairs and maintenance are charged to operating expense in the year in which the expense was incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally 40 to 60 years for buildings, 20 to 25 years for infrastructure and land improvements, 10 years for library books, and 3 to 20 years for equipment. Residual values will generally be 10% of historical costs for infrastructure, buildings and building improvements, and facilities and other improvements. \r\nTo obtain the total picture of plant additions in the University System, it is necessary to look at the activities of the Georgia State Financing and Investment Commission (GSFIC) - an organization that is external to the System. GSFIC issues bonds for and on behalf of the State of Georgia, pursuant to powers granted to it in the Constitution of the State of Georgia and the Act creating the GSFIC. The bonds so issued constitute direct and general obligations of the State of Georgia, to the payment of which the full faith, credit and taxing power of the State are pledged. \r\nEffective July 1, 2001, the GSFIC retains construction in progress on their books throughout the construction period and transfers the entire project to State University of West Georgia when complete. For the year ended June 30, 2004, GSFIC transferred capital additions valued at $3,246,839.36 to State University of West Georgia. \r\n- 10 - \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nDEFERRED REVENUES Deferred revenues include (1) amounts received for tmt10n and fees and certain auxiliary activities prior to the end of the fiscal year but related to the subsequent accounting period; (2) amounts received from grant and contract sponsors that have not yet been earned; and (3) a Financial Commitment Agreement between the University and ARAMARK Educational Services, Inc. \r\nCOMPENSATED ABSENCES Employee vacation pay is accrued at year-end for financial statement purposes. The liability and expense incurred are recorded at year-end as accrued vacation payable in the Statement of Net Assets, and as a component of compensation and benefit expense in the Statements of Revenues, Expenses and Changes in Net Assets. State University of West Georgia had accrued liability for compensated absences in the amount of $2,098,643.65 as of July 1, 2003. For fiscal year 2004, $1,584,659.90 was earned in compensated absences and employees were paid $1,635,368.99, for a net decrease of $50,709.09. The ending balance as of June 30, 2004 in accrued liability for compensated absences was $2,047,934.56. Compensated absences include a current liability of $1,154,091.96. \r\nNONCURRENT LIABILITIES Noncurrent liabilities include (1) liabilities that will not be paid within the next fiscal year; (2) capital lease obligations with contractual maturities greater than one year; (3) other liabilities that, although payable within one year, are to be paid from funds that are classified as noncurrent assets; and (4) deferred revenue that will not be recognized within the next fiscal year. \r\nNET ASSETS The University's net assets are classified as follows: \r\nInvested in capital assets, net ofrelated debt: This represents the University's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. The term \"debt obligations\" as used in this definition does not include debt of the GSFIC as discussed previously in Note 1 - Capital Assets section. \r\nRestricted net assets - expendable: Restricted expendable net assets include resources in which the University is legally or contractually obligated to spend resources in accordance with restrictions imposed by external third parties. \r\nThe University's Expendable Restricted Net Assets include the following: \r\n \r\n- 11 - \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nNET ASSETS \r\n \r\nJune 30, 2004 \r\n \r\nFederal Loans Institutional Loans \r\n \r\n$ 1,811,240.96 249,339.49 \r\n \r\nTotal Restricted Expendable \r\n \r\n$ 2,060,580.45 \r\n \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 University, and may be used at the discretion of the governing board to meet current expenses for those purposes, except for unexpended state appropriations (surplus) of $21,560.69. Unexpended state appropriations must be refunded to the Board of Regents of the University System of Georgia - Administrative Central Office for remittance to the Office of Treasury and Fiscal Services. These resources also include auxiliary enterprises, which are substantially self-supporting activities that provide services for students, faculty and staff. \r\n \r\nThe University's Unrestricted Net Assets includes the following items which are quasi-restricted by management. \r\n \r\nJune 30, 2004 \r\n \r\nReserve for Encumbrances Reserve for Inventory Other Unrestricted \r\n \r\n$ 2,600,561.29 759,002.40 \r\n2,863,556.12 \r\n \r\nTotal Unrestricted Net Assets \r\n \r\n$ 6,223,119.81 \r\n \r\nWhen an expense is incurred that can be paid using either restricted or unrestricted resources, the University's policy is to first apply the expense towards unrestricted resources, and then towards restricted resources. \r\n \r\nINCOME TAXES State University of West Georgia, as a political subdivision of the State of Georgia, is excluded from Federal income taxes under Section 115(1) of the Internal Revenue Code, as amended. \r\n \r\nCLASSIFICATION OF REVENUES The University has classified its revenues as either operating or nonoperating revenues in the Statement of Revenues, Expenses and Changes in Net Assets according to the following criteria: \r\n \r\n- 12 - \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nCLASSIFICATION OF REVENUES Operating revenues: Operating revenues include actlv1tles that have the characteristics of exchange transactions, such as (1) student tuition and fees, net of scholarship allowances, (2) sales and services of auxiliary enterprises, (3) most Federal, state and local grants and contracts and Federal appropriations, and (4) interest on institutional student loans. \r\nNonoperating revenues: Nonoperating revenues include activities that have the characteristics of nonexchange transactions, such as gifts and contributions, and other revenue sources that are defined as nonoperating revenues by GASB No. 9, Reporting Cash Flows of Proprietary and Nonexpendable Trust Funds and Governmental Entities That Use Proprietary Fund Accounting, and GASB No. 34, such as state appropriations and investment income. \r\nSCHOLARSHIP ALLOWANCES Student tuition and fee revenues, and certain other revenues from students, are reported at gross with a contra revenue account of scholarship allowances in the Statement of Revenues, Expenses and Changes in Net Assets. Scholarship allowances are the difference between the stated charge for goods and services provided by the University, and the amount that is paid by students and/or third parties making payments on the students' behalf. Certain governmental grants, such as Pell grants, and other Federal, state or nongovernmental programs, are recorded as either operating or nonoperating revenues in the University's financial statements. To the extent that revenues from such programs are used to satisfy tuition and fees and other student charges, the University has recorded contra revenue for scholarship allowances. \r\nNOTE 2: CASH AND CASH EQUIVALENTS; OTHER DEPOSITS; AND INVESTMENTS \r\nSTATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belonging to the State of Georgia (and thus State University of West Georgia) 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, bill, certificates of indebtedness, notes, or other direct obligations of the United States or of the State of Georgia. \r\n2. Bonds, bills, certificates of indebtedness, notes, or other obligations of the counties or municipalities ofthe 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\n- 13 - \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 2: CASH AND CASH EQUIVALENTS; OTHER DEPOSITS; AND INVESTMENTS \r\n \r\nSTATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES 5. Bonds, bills, certificates of indebtedness, notes, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest, or 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\nAs authorized in the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies which allow agencies of the State of Georgia (and thus State University of West Georgia), the option of exempting demand deposits from the collateral requirements. \r\n \r\nThe Treasurer of the Board of Regents is responsible for all details relative to furnishing the required depository protection for all units of the University System of Georgia. \r\n \r\nCATEGORIZATION OF DEPOSITS Cash deposits are categorized by risk as follows: \r\n \r\nCategory 1 - Amounts covered by depository insurance or collateralized with securities (at fair value) held by the entity or by its agent in the entity's name. \r\n \r\nCategory 2 - Amounts collateralized with securities (at fair value) held by the pledging financial institution's trust department or agent in the entity's name. \r\n \r\nCategory 3 - Amounts collateralized with securities (at fair value) held by the pledging financial institution, or by its trust department or agent but not in the entity's name, and amounts uncollateralized. \r\n \r\nState University of West Georgia At June 30, 2004, the University's cash deposits were as follows: \r\n \r\nCash Deposits \r\n \r\nCarrying Amount \r\n \r\nBank Balances \r\n \r\nRisk Categories \r\n \r\n2 \r\n \r\n3 \r\n \r\n$ 1,589 236.74 $ 3,521,344.64 $ 201,711.26 $ 3.319 633.38 $===0==.0==0 \r\n \r\n- 14 - \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 2: CASH AND CASH EQUIVALENTS; OTHER DEPOSITS; AND INVESTMENTS \r\n \r\nCATEGORIZATION OF DEPOSITS \r\n \r\nComponent Unit At December 31, 2003, State University of West Georgia Foundation's cash deposits were as follows: \r\n \r\nCarrying Amount \r\n \r\nBank Balances \r\n \r\nRisk Categories \r\n \r\n2 \r\n \r\n3 \r\n \r\nCash Deposits Investment Portfolio \r\nAccounts \r\n \r\n$ 1,666,866.00 $ 1,640,661.00 $ 611,049.00 $ 8,010,548.00 8,010,548.00 7,721,813.00 \r\n \r\n0.00 $ 1,029,612.00 288,735.00 \r\n \r\nTotal Cash Deposits $ 9.677 414 00 $ 9,651,209.00 $ 8,332,862.00 $ \r\n \r\n0.00 $ 1.318.347.00 \r\n \r\nCATEGORIZATION OF INVESTMENTS Investments are categorized as to credit risk within the three categories described below: \r\n \r\nCategory 1 - Insured or registered, or securities held by the entity or its agent in the entity's name. \r\n \r\nCategory 2 - Uninsured and unregistered, with securities held by the counter party's trust department or agent in the entity's name. \r\n \r\nCategory 3 - Uninsured and unregistered, with securities held by the counter party, or by its trust department or agent, but not in the entity's name. \r\n \r\nState University of West Georgia At June 30, 2004, the carrying amount of the University's total investments was $12,262,894.27. These investments consisted of $10,420,651.39 in the State Investment Pool administered by the State of Georgia-Office of Treasury and Fiscal Services and $1,842,242.88 in the Board of Regent's Short-Term Fund. Funds invested in an investment pool managed by another governmental entity are not required to be categorized since the University did not own any specific identifiable investment securities of the pool. \r\n \r\nFunds invested in an investment pool managed by another governmental entity are not required to be categorized since the University did not own any specific, identifiable investment securities of the pool. \r\n \r\nComponent Unit At December 31, 2003, State University of West Georgia Foundation's investments consisted of the following: \r\n \r\n- 15 - \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 2: CASH AND CASH EQUIVALENTS; OTHER DEPOSITS; AND INVESTMENTS \r\n \r\nCATEGORIZATION OF INVESTMENTS \r\n \r\nComponent Unit \r\n \r\nType of Investments \r\nCash and Money Market Funds Corporate Bonds U.S. Government Securities Investment Accounts - Equities \r\nTotals \r\n \r\nRisk Categories \r\n \r\n2 \r\n \r\n3 \r\n \r\nCarrying Amount \r\n \r\n$ 398,302.00 $ 275,051.00 263,438.00 \r\n9.652, 151.00 \r\n \r\n0.00 $ \r\n \r\n0.00 $ 398,302.00 275,051.00 263,438.00 \r\n9,652,151.00 \r\n \r\n$ 10,588,942.00 $ \r\n \r\no.oo $.===='o=.o~o $ J0,588,942.00 \r\n \r\nNOTE 3: ACCOUNTS RECEIVABLE \r\n \r\nThe University's accounts receivable consisted of the following at June 30, 2004. \r\n \r\nStudent Tuition and Fees Auxiliary Enterprises and Other Operating Activities Federal, State and Private Funds Other \r\n \r\n$ 257,723.58 71,624.48 \r\n245,057.88 461,139.14 \r\n \r\nLess Allowance for Doubtful Accounts \r\n \r\n$ 1,035,545.08 87,862.18 \r\n \r\nNet Accounts Receivable \r\n \r\n$ 947,682.90 \r\n \r\nNOTE 4: INVENTORIES \r\n \r\nThe University's Inventories consisted of the following at June 30, 2004. \r\n \r\nBookstore Central Warehouse \r\n \r\n$ 627,127.20 131,875.20 \r\n \r\nTotal \r\n \r\n$ 759,002.40 \r\n \r\nNOTE 5: NOTES/LOANS RECEIVABLE \r\n \r\nThe University's Notes/Loans receivable consisted of the following at June 30, 2004: \r\n \r\nPerkins Loans Institutional Loans \r\n \r\n$ 1,728,941.98 134,304.98 \r\n \r\nTotal Notes/Loans Receivable \r\n \r\n$ L863.246.96 \r\n \r\n- 16 - \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 5: NOTES/LOANS RECEIVABLE \r\n \r\nThe Federal Perkins Loan Program (the Program) comprises substantially all of the loans receivable at June 30, 2004. The Program provides for cancellation of a loan at rates of 10% to 30% per year up to a maximum of 100% if the participant complies with certain provisions. The Federal government reimburses the University for amounts cancelled under these provisions. As the University determines that loans are uncollectible and not eligible for reimbursement by the Federal government, the loans are written off and assigned to the U.S. Department of Education. \r\n \r\nNOTE6: CAPITAL ASSETS \r\n \r\nFollowing are the changes in the University's capital assets for the year ended June 30, 2004: \r\n \r\nBeginning Balance July 1, 2003 \r\n \r\nAdditions \r\n \r\nReductions \r\n \r\nEnding Balance June 30, 2004 \r\n \r\nCapital Assets, Not Being Depreciated: \r\n \r\nLand \r\n \r\n$ \r\n \r\nConstruction Work-In-Progress \r\n \r\n554,184.25 \r\n \r\n$ \r\n \r\n579 680.49 $ 3,953,023.30 $ 3774316.77 \r\n \r\n554,184.25 758,387.02 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n$ 1,133,864.74 $ 3,953,023.30 $ 3,774,316.77 $ 1,312,571.27 \r\n \r\nCapital Assets, Being Depreciated: Building and Building Improvements Facilities and Other Improvements Equipment Capital Leases Library Collections Capitalized Collections \r\n \r\n$ 79,947,056.60 $ 1,376,803.34 11,195,758.14 106,915.94 12,425,015.64 \r\n48 616.00 \r\n \r\n4,735,696.28 $ 456,123.35 807,455.87 \r\n552,290.00 \r\n \r\n1,304,618.00 $ 83,378,134.88 \r\n \r\n1,832,926.69 \r\n \r\n292,764.53 11,710,449.48 \r\n \r\n106,915.94 \r\n \r\n62,634.00 12,914,671.64 \r\n \r\n35 100.00 \r\n \r\n13 516.00 \r\n \r\nTotal Assets Being Depreciated \r\n \r\n$105, JOO, 165.66 $ 6,551,565.50 $ 1,695,116.53 $109,956,614.63 \r\n \r\nLess: Accumulated Depreciation: \r\n \r\nBuildings and Building Improvements $ 32,655,068.07 $ \r\n \r\nFacilities and Other Improvements \r\n \r\n548,391.09 \r\n \r\nEquipment \r\n \r\n7,879,988.84 \r\n \r\nCapital Leases \r\n \r\n51,670.73 \r\n \r\nLibrary Collections \r\n \r\n9,263,176.71 \r\n \r\nCapitalized Collections \r\n \r\n14 406.04 \r\n \r\n2,439,405.63 $ 68,076.78 \r\n1,192,637.14 21,383.19 \r\n581,075.00 484.15 \r\n \r\n918,058.04 $ 34,176,415.66 \r\n \r\n616,467.87 \r\n \r\n265,091.82 8,807,534.16 \r\n \r\n73,053.92 \r\n \r\n62,634.00 9,781,617.71 \r\n \r\n7 531.88 \r\n \r\n7 358.31 \r\n \r\nTotal Accumulated Depreciation \r\n \r\n$ 50,412,701.48 $ 4.303,061.89 $ 1,253,315.74 $ 53,462,447.63 \r\n \r\nTotal Capital Assets, Being Depreciated, \r\n \r\nNet \r\n \r\n$ 54,687,464.18 $ 2,248,503.61 $ 441 800.79 $ 56,494,167.00 \r\n \r\nCapital Assets, Net \r\n \r\n$ 55,821,328.92 $ 6,201,526.91 $ 4,216.117.56 $ 57,806,738.27 \r\n \r\nNOTE 7: DEFERRED REVENUE \r\n \r\nIn fiscal year 2004, the University entered into a \"Financial Commitment Agreement\" with ARAMARK Educational Services, Inc., in which ARAMARK Educational Services, Inc. made a financial commitment of $2,100,000.00 to the University's Campus Food Service program for \"food service facility renovations and in the purchase and installation of food service equipment, \r\n \r\n- 17 - \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 7: DEFERRED REVENUE \r\n \r\narea treatment, signage and marketing materials and other costs associated with the Campus Food Service program\". In exchange, the University will allow ARAMARK Educational Services, Inc., to operate on the University's campus. The Financial Commitment agreement is for a period of ten years commencing September 2003 and ending August 2013. The Financial Commitment made by ARAMARK Educational Services, Inc., to the University's Campus Food Service program will be amortized by the University over the ten year period. \r\n \r\nDeferred revenue consisted of the following at June 30, 2004. \r\n \r\nFinancial Commitment Agreement Prepaid Tuition and Fees Other Deferred Revenue \r\n \r\n$ 1,925,000.00 3,164,349.70 1,184,594.02 \r\n \r\nTotals \r\n \r\n$ 6,273,943.72 \r\n \r\nCurrent Portion \r\n \r\n$ 4,558,943.72 \r\n \r\nNOTE 8: LONG-TERM LIABILITIES \r\n \r\nLong-Term liability activity for the year ended June 30, 2004 was as follows: \r\n \r\nBeginning Balance \r\nJuly 1, 2003 \r\n \r\nAdditions \r\n \r\nReductions \r\n \r\nEnding Balance June 30, 2004 \r\n \r\nCurrent Portion \r\n \r\nLeases Lease Obligations \r\n \r\n$ 30,126.98 \r\n \r\n$ 10,927.73 $ 19,199.25 $ 11,840.60 \r\n \r\nOther Liabilities Compensated Absences \r\n \r\n2,098,643.65 $ 1,584,659.90 \r\n \r\n1,635,368.99 \r\n \r\n2,047.934.56 \r\n \r\n1,154,091.96 \r\n \r\nTotal Long-Term Obligations $ 2,128 770.63 $ 1,584,659.90 $ 1,646 296. 72 $ 2,067,133.81 $ 1,165,932.56 \r\n \r\nNOTE 9: SIGNIFICANT COMMITMENTS \r\n \r\nThe University had significant unearned, outstanding, construction or renovation contracts executed in the amount of $489,052.75 as of June 30, 2004. This amount is not reflected in the accompanying basic financial statements. \r\n \r\n- 18 - \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 10: LEASE OBLIGATIONS \r\n \r\nState University of West Georgia 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 2005 and 2006. Expenses for fiscal year 2004 were $12,955.56 of which $2,027.83 represented interest. Total principal paid on capital leases was $10,927.73 for the fiscal year ended June 30, 2004. Interest rates equaled 8.05 percent. \r\n \r\nThe following is a summary of the carrying values of assets held under capital lease at June 30, 2004: \r\n \r\nEquipment \r\n \r\n$====3=3,-86=2==0.==2 \r\n \r\nCertain capital leases provide for renewal and/or purchase options. Generally purchase options at bargain prices of one dollar are exercisable at the expiration of the lease terms. \r\n \r\nOPERATING LEASES State University of West Georgia 's noncancellable operating leases having remaining terms of more than one year expire in various fiscal years from 2005 through 2010. Certain 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 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 other small business equipment. The real estate leases consist of three buildings and a rental fee for the use of a stadium. \r\n \r\nNoncancellable operating lease expenditures in 2004 were $422,734.11 for real property and equipment. \r\n \r\nFUTURE COMMITMENTS Future commitments for capital leases (which here and on the Statement of Net Assets include other installment purchase agreements) and for noncancellable operating leases having remaining terms in excess of one year as of June 30, 2004, were as follows: \r\n \r\n- 19 - \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 10: LEASE OBLIGATIONS \r\n \r\nFUTURE COMMITMENTS \r\n \r\nYear Ending June 30: 2005 2006 2007 2008 2009 2010 \r\nTotal Minimum Lease Payments \r\nLess: Interest \r\nPrincipal Outstanding \r\n \r\nCapital Leases \r\n \r\nOperating Leases \r\n \r\n$ 12,955.60 $ 350,438.63 \r\n \r\n7,557.42 \r\n \r\n309,112.23 \r\n \r\n179,676.41 \r\n \r\n131,297.06 \r\n \r\n97,170.58 \r\n \r\n68,392.53 \r\n \r\n$ 20,513.02 $ 1,136,087.44 \r\n \r\n1,313.77 \r\n \r\n19,199.25 \r\n \r\nNOTE 11: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\nPlan Description State University of West Georgia 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 State University of West Georgia who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. State University of West Georgia 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 2004, the employer contribution rate was 9.24% for covered employees. Employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\n- 20 - \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 11: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\nFunding Policy \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2004 2003 2002 \r\n \r\n100% 100% 100% \r\n \r\n$ 2,202,322.42 $ 2,191,615.93 $ 2,129,640.40 \r\n \r\nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\n \r\nPlan Description State University of West Georgia 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\n \r\nThe benefit structure of ERS is defined by State statute and was significantly modified on July 1, 1982. Unless elected 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. All other members are \"new plan\" members subject to the modified plan provisions. \r\n \r\nUnder both the old plan and new plan, members become vested after 10 years of creditable service. A member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 65. If 10 years of service is completed and age 60 is reached, the member may retire with a reduced benefit. Additionally, there are certain provisions allowing for retirement after 25 years of service regardless of age. \r\n \r\nRetirement benefits paid to members are based upon a formula which considers the monthly average of the member's highest twenty-four consecutive calendar months of salary, the number of years of creditable service, and the member's age at retirement. Postretirement cost-of-living adjustments are also made to member's benefits. 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\n \r\n- 21 - \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 11: RETIREMENT PLANS \r\nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nPlan Description In addition, the 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 ERS issues a financial report each fiscal year which may be obtained 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 University's payroll for the year ended June 30, 2004, for employees covered by ERS was $46,000.00. The University's total payroll for all employees was $45,073,860.99. \r\nUnder the old plan, member contributions consist of 7.16% of annual compensation. Of these member contributions, the employee pays the first 1.5% and the University pays the remainder on behalf of the employee. Under the new plan, member contributions consist solely of 1.5% of annual compensation paid by employee. The University also is required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation. For the year ended June 30, 2004, the ERS employer contribution rate for the University amounted to 5.66% of covered payroll and included the amounts contributed on behalf of the employee under the old plan referred to above. Employer contributions are also made on amounts paid for accumulated leave to retiring employees. \r\nTotal contributions to the plan made during fiscal year 2004 amounted to $5,523.60, of which $2,603.60 was made by the University and $2,920.00 was made by employees. These contributions met the requirements of the plan. \r\nActuarial and Trend Information Actuarial and historical trend information is presented in the ERS June 30, 2004, financial report which may be obtained through ERS. \r\n \r\n- 22 - \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 11: RETIREMENT PLANS \r\nREGENTS RETIREMENT PLAN \r\nPlan Description The Regents Retirement Plan, a single-employer defined contribution plan, is an optional retirement plan that was created/established by the Georgia General Assembly in O.C.G.A. 4721-1 et. seq. and is administered by the Board of Regents of the University System of Georgia. O.C.G.A. 47-3-68(a) defines who may participate in the Regents Retirement Plan. An \"eligible university system employee\" is a faculty member or a principal administrator, as designated by the regulations of the Board of Regents. Under the Regents Retirement Plan, a plan participant may purchase annuity contracts from four approved vendors (AIG-VALIC, American Century, Fidelity, and TIAA-CREF) for the purpose of receiving retirement and death benefits. Benefits depend solely on amounts contributed to the plan plus investment earnings. Benefits are payable to participating employees or their beneficiaries in accordance with the terms of the annuity contracts. \r\nFunding Policy State University of West Georgia makes monthly employer contributions for the Regents Retirement Plan at rates adopted by the Teachers Retirement System of Georgia Board of Trustees in accordance with State Statute and as advised by their independent actuary. The employer contributes 10.03% of the participating employee's earnable compensation. Employees contribute 5% of their earnable compensation. Amounts attributable to all plan contributions are fully vested and nonforfeitable at all times. \r\nState University of West Georgia and the covered employees made the required contributions of $1,712,671.19 (10.03%) and $853,774.27 (5%), respectively. \r\nAIG-VALIC, American Century, Fidelity, and TIAA-CREF have separately issued financial reports which may be obtained through their respective corporate offices. \r\nGEORGIA DEFINED CONTRIBUTION PLAN \r\nPlan Description State University of West Georgia participates in the Georgia Defined Contribution Plan (GDCP) which is a single-employer defined contribution plan established by the General Assembly of Georgia for the purpose of providing retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees of the Employees' Retirement System of Georgia. \r\n \r\n- 23 - \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 11: RETIREMENT PLANS \r\nGEORGIA DEFINED CONTRIBUTION PLAN \r\nBenefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board of Trustees. If a member has less than $ 3,500.00 credited to his/her account, the Board of Trustees has the option of requiring a lump sum distribution to the member in lieu of making periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary. Benefit provisions are established by State statute. \r\nContributions and Vesting Member contributions are seven and one-half percent (7.5%) of gross salary. There are no employer contributions. Contribution rates are established by State statute. Earnings are credited to each member's account in a manner established by the Board of Trustees. Upon termination of employment, the amount of the member's account is refundable upon request by the member. \r\nTotal contributions made by employees during fiscal year 2004 amounted to $68,702.76 which represents 7.5% of covered payroll. These contributions met the requirements of the plan. \r\nThe Georgia Defined Contribution Plan issues a financial report each fiscal year, which may be obtained from the ERS offices. \r\nNOTE 12: RISK MANAGEMENT \r\nThe University System of Georgia offers its employees and retirees access to two different selfinsured healthcare plan options - a PPO/PPO Consumer healthcare plan, and an indemnity healthcare plan. State University of West Georgia and participating employees and retirees pay premiums to either of the self-insured healthcare plan options to access benefits coverage. The respective self-insured healthcare plan options are included in the financial statements of the Board of Regents of the University System of Georgia - University System Office. All units of the University System of Georgia share the risk of loss for claims associated with these plans. The reserves for these two plans are considered to be a self-sustaining risk fund. Both selfinsured healthcare plan options provide a maximum lifetime benefit of $2,000,000.00 per person. The Board of Regents has contracted with Blue Cross Blue Shield of Georgia, a wholly owned subsidiary of WellPoint, to serve as the claims administrator for the two self-insured healthcare plan products. In addition to the two different self-insured healthcare plan options offered to the employees of the University System of Georgia, two fully insured HMO healthcare plan options are also offered to System employees. \r\n \r\n-24- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 12: RISK MANAGEMENT \r\nThe Department of Administrative Services (DOAS) has the responsibility for the State of Georgia of making and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS processes claims for risk of loss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' indemnification. Limited amounts of commercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. State University of West Georgia, as an organizational unit of the Board of Regents of the University System of Georgia, is part of the State of Georgia reporting entity, and as such, is covered by the State of Georgia risk management program administered by DOAS. Premiums for the risk management program are charged to the various state organizations by DOAS to provide claims servicing and claims payment. \r\nA self-insured program of professional liability for its employees was established by the Board of Regents of the University System of Georgia under powers authorized by the Official Code of Georgia Annotated Section 45-9-1. The program insures the employees to the extent that they are not immune from liability against personal liability for damages arising out of the performance of their duties or in any way connected therewith. The program is administered by DOAS as a Self-Insurance Fund. \r\nNOTE 13: 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 State University of West Georgia expects such amounts, if any, to be immaterial to its overall financial position. \r\nLitigation, claims and assessments filed against State University of West Georgia (an organizational unit of the Board of Regents of the University System of Georgia), if any, are generally considered to be actions against the State of Georgia. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 2004. \r\nNOTE 14: POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS \r\nPursuant to the general powers conferred by the Official Code of Georgia Annotated Section 203-31, the Board of Regents of the University System of Georgia has established group health and life insurance programs for regular employees of the University System of Georgia. It is the \r\n \r\n- 25 - \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 14: POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS \r\npolicy of the Board of Regents to permit employees of the University System of Georgia eligible for retirement or that become permanently and totally disabled to continue as members of the group health and life insurance programs. The policies of the Board of Regents of the University System of Georgia define and delineate who is eligible for these post-employment health and life insurance benefits. Organizational units of the Board of Regents of the University System of Georgia are on a pay as you go basis to finance the employer portion for group insurance for affected individuals. With regard to life insurance, the employer covers the total cost for $25,000.00 for basic life insurance. If an individual elects to have supplemental, and/or, dependent life insurance coverage, such costs are borne entirely by the employee. \r\nAs of June 30, 2004, there were 380 employees who had retired or were disabled that were receiving these post-employment health and life insurance benefits. For the year ended June 30, 2004, State University of West Georgia recognized as incurred $1,333,553.86 of expenses, which was net of $433,295.94 of participant contributions. \r\nNOTE 15: NATURAL CLASSIFICATIONS WITH FUNCTIONAL CLASSIFICATIONS \r\nThe University's operating expenses by functional classification are shown below: \r\n \r\n-26 - \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 15: NATURAL CLASSIFICATIONS WITH FUNCTIONAL CLASSIFICATIONS \r\n \r\nStatement of Operating Expenses - Natural vs Functional Classifications For the Fiscal Year Ended June 30, 2004 \r\n \r\nFunctional Classification \r\n \r\nNatural Classification \r\n \r\nInstruction \r\n \r\nResearch \r\n \r\nPublic Service \r\n \r\nAcademic Su1mort \r\n \r\nStudent Services \r\n \r\nSalaries Faculty Staff \r\nEmployee Benefits Travel Scholarships and \r\nFellowships Utilities Supplies and Other \r\nServices Depreciation \r\n \r\n$21,316,509.47 $ 4,138,556.10 6,163,448.25 463,164.49 \r\n9,844.37 208,811.67 \r\n-441,582.99 2,854,488.95 \r\n \r\n154,258.75 258,076.96 $ \r\n63,398.72 39,754.46 \r\n2,898.16 1,179.68 \r\n284,625.82 56,466.50 \r\n \r\n123,076.94 30,277.62 \r\n2,742.28 \r\n \r\n$ 488,155.30 5,265,971.41 1,460,731.24 127,419.37 \r\n \r\n$ 17,018.00 2,795,798.48 684,655.66 51,520.14 \r\n \r\n1,376.92 \r\n \r\n67,426.42 \r\n \r\n5,270.93 49,145.39 \r\n \r\n6,097.40 \r\n \r\n3,055,157.11 788,155.29 \r\n \r\n1,210,271.56 3,122.79 \r\n \r\nTotal Operating Expenses \r\n \r\n$ 34 713 240 31 $ 860 652.05 $ 163 51116 $ 11 253 016 14 $ 4 816 802.95 \r\n \r\nNatural Classification \r\nSalaries Faculty Staff \r\nEmployee Benefits Travel Scholarships and \r\nFellowships Utilities Supplies and Other \r\nServices Depreciation \r\nTotal Operating Expenses \r\n \r\nInstitutional Support \r\n \r\nFunctional Classification \r\n \r\nPlant \r\n \r\nOperations and Scholarships \r\n \r\nAuxiliary \r\n \r\nMaintenance and Fellowships \r\n \r\nEnterprises \r\n \r\nTotal Operating Expenses \r\n \r\n$ 3,873,547.67 $ 3,941,668.44 \r\n \r\n2,267,281.75 \r\n \r\n-851,889.13 \r\n \r\n58,452.84 \r\n \r\n10,029.32 \r\n \r\n$ 13,125.00 2,688,098.47 \r\n2,734,119.01 70,390.94 \r\n \r\n$21,989,066.52 23,084,794.47 12,552,023.12 823,473.84 \r\n \r\n333,293.61 60,579.02 \r\n \r\n$ 1,339,355.38 2,349,392.10 \r\n \r\n698,884.03 403,380.86 \r\n \r\n2,389,546.48 3,141,292.06 \r\n \r\n1,504,568.60 55 114.75 \r\n \r\n5,074,932.44 -103,253.96 \r\n \r\n79,830.59 \r\n \r\n5,973,968.90 648,967.57 \r\n \r\n16,747,869.43 4,303,061.89 \r\n \r\n$ 8 152 838.24 $ 10 420 879.21 $ 1412185.97 $ 13 230 934.78 $ 85 031127.81 \r\n \r\nNOTE 16: COMPONENT UNITS \r\n \r\nState University of West Georgia Foundation (Foundation) is a legally separate, tax-exempt component unit of State University of West Georgia (University). The Foundation acts primarily as a fund-raising organization to supplement the resources that are available to the University in support of its programs. The Foundation board consists of approximately forty members and is made up of alumni and friends of the University. Although the University does not control the timing or amount of receipts from the Foundation, the majority of resources or income thereon that the Foundation holds and invests is restricted to the activities of the University by the donors. Because these restricted resources held by the Foundation can only be used by, or for the benefit of, the University, the Foundation is considered a component unit of the University and is discretely presented in the University's financial statements. \r\n \r\nThe Foundation is a private nonprofit organization that reports under FASB standards, including FASB Statement No. 117, Financial Reporting for Not-for-Profit Organizations. As such, \r\n \r\n- 27 - \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 16: COMPONENT UNITS \r\n \r\ncertain revenue recognition criteria and presentation features are different from GASB revenue recognition criteria and presentation features. The FASB reports were reclassified to the GASB presentation for external financial reporting purposes in these financial statements. The Foundation's fiscal year is January 1 through December 31, 2003. \r\n \r\nDuring the year ended December 31, 2003, the Foundation distributed $1,314,937.00 to the University for both restricted and unrestricted purposes. Complete financial statements for the Foundation can be obtained from the Administrative Offices at 1601 Maple Street, Carrollton, Georgia 30118. \r\n \r\nInvestments for Component Units State University of West Georgia Foundation holds endowment investments in the amount of $11,314,911.00. The corpus of the endowment is nonexpendable, but the earnings on the investment may be expended as restricted by the donors. State University of West Georgia Foundation, in conjunction with the donors, has established a spending plan whereby 5% of the corpus balance earnings may be used for academic scholarships and 1% to 3% may be used for an administrative fee. The remaining balance of the earnings are set aside as a reserve. \r\n \r\nLong-Term Liabilities for Component Units Student Housing Bonds are issued by the State University of West Georgia Foundation to finance student housing on University property. The bonds, serial and term, are secured by pledges of gross receipts from student housing at State University of West Georgia. The interest rate is variable based on the Weekly Snap Index published by the Bond Market Association, adjusted weekly, with a cap of 12%. The current rate is 1.15%. \r\n \r\nChanges in long-term liabilities for component units for the fiscal year ended June 30, 2004 are shown below: \r\n \r\nRevenue Bonds Payable Student Housing \r\n \r\nBeginning Balance January I, 2003 \r\n \r\nAdditions \r\n \r\nEnding Balance Reductions December 31, 2003 \r\n \r\nAmounts Due Within \r\nOne Year \r\n \r\n$======'0'='.0-0 $ 13,205,000.00 $===='0'='.0-0 $ 13,205,000.00 $======'0\"='.0=0 \r\n \r\nAnnual debt service requirements to maturity for Student Housing revenue bonds payable are as follows: \r\n \r\n- 28 - \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 16: COMPONENT UNITS \r\nYear Ending December 31: 2004 2005 2006 2007 2008 2009 through 2013 2014 through 2018 2019 through 2023 2024 through 2028 2029 \r\n \r\nBonds Payable \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\nTotal \r\n \r\n$ 405,783.00 $ 405,783.00 \r\n \r\n405,791.00 \r\n \r\n405,791.00 \r\n \r\n$ 375,000.00 \r\n \r\n401,018.00 \r\n \r\n776,018.00 \r\n \r\n385,000.00 \r\n \r\n389,366.00 \r\n \r\n774,366.00 \r\n \r\n400,000.00 \r\n \r\n377,337.00 \r\n \r\n777,337.00 \r\n \r\n2,185,000.00 1,692,759.00 3,877,759.00 \r\n \r\n2,565,000.00 1,329,763.00 3,894,763.00 \r\n \r\n3,005,000.00 \r\n \r\n903,774.00 3,908,774.00 \r\n \r\n3,520,000.00 \r\n \r\n404,923.00 3,924,923.00 \r\n \r\n770,000.00 \r\n \r\n13,860.00 \r\n \r\n783,860.00 \r\n \r\n$13,205,000.00 $ 6,324,374.00 $19,529,374.00 \r\n \r\n- 29 - \r\n \r\n SUPPLEMENTARY INFORMATION - 31 - \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO \r\nBUDGET - (NON-GAAP BASIS} RESIDENT INSTRUCTION \r\nYEAR ENDED JUNE 30. 2004 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nState Appropriations Other Revenues Retained \r\n \r\nBUDGET \r\n \r\nACTUAL {1} \r\n \r\nVARIANCEFAVORABLE {UNFAVORABLE} \r\n \r\n$ \r\n \r\n38,308,825.00 $ 38,308,825.00 $ \r\n \r\n0.00 \r\n \r\n58,069,789.00 35,117,595.99 \r\n \r\n-22,952, 193.01 \r\n \r\n$ \r\n \r\n96,378,614.00 $ 73,426,420.99 $ -22,952, 193.01 \r\n \r\nEXPENDITURES \r\nPersonal Services: Education, General and Departmental Services Sponsored Operations \r\nOperating Expenses: Education, General and Departmental Services Sponsored Operations \r\nSpecial Funding Initiative \r\n \r\n$ \r\n \r\n49,445,447.00 $ 49,495,088.97 $ \r\n \r\n-49,641.97 \r\n \r\n2,292,836.00 \r\n \r\n1,545,370.47 \r\n \r\n747,465.53 \r\n \r\n12,158,499.00 31,462,481.00 \r\n1,019,351.00 \r\n \r\n13,943,849.33 7,247,576.43 1,019,143.62 \r\n \r\n-1,785,350.33 24,214,904.57 \r\n207.38 \r\n \r\n$ \r\n \r\n96,378,614.00 $ 73,251,028.82 $ 23,127,585.18 \r\n \r\nExcess of Revenues over Expenditures \r\n \r\n$ \r\n \r\n175,392.17 $===17=5=3=9=2.=17= \r\n \r\n(1) Actual amounts were prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Basic Financial Statements and Supplementary Information. \r\n- 33- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA RECONCILIATION OF SALARIES AND TRAVEL \r\nYEAR ENDED JUNE 30, 2004 \r\n \r\nSCHEDULE \"2\" \r\n \r\nTotals per Annual Supplement \r\n \r\nAccruals June 30, 2004 June 30, 2003 \r\n \r\nCompensated Absences June 30, 2004 June 30, 2003 \r\n \r\nPrepaid Salaries June 30, 2004 June 30, 2003 \r\n \r\nAdjustments Clark, King, Mehok, Ward, \r\n \r\nAdam Lakeia Laura Jamie \r\n \r\nUnidentified Variance \r\n \r\nSALARIES \r\n$ 45,138,617.78 $ \r\n \r\nTRAVEL 823,894.72 \r\n \r\n193,235.37 -141,665.47 \r\n \r\n1,902,400.90 -1,949,506.42 \r\n \r\n-331,264.04 268,127.37 \r\n \r\n-6,084.50 \r\n \r\n-30.48 -55.00 -275.40 -60.00 \r\n \r\n$ 45,073,860.99 $ ====82=3=,4=73==84= \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Basic Financial Statements and Supplementary Information. \r\n- 35 - \r\n \r\n SECTION II CURRENT YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2004 \r\n \r\nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nEXPENDITURES/LIABILITIES/DISBURSEMENTS Improper Contractual Obligation Finding Control Number: FS-554-04-01 \r\n \r\nCondition: \r\n \r\nThe University entered into a contractual agreement with Aramark Educational Services, Inc. (ARAMARK) for a Campus Food Service Program. The contractual agreement included a clause that provided for a contribution of $200,000.00 to be made by ARAMARK to the State University of West Georgia Foundation (foundation), which would violate the \"gratuities clause\" of the Constitution of the State of Georgia (Constitution). \r\n \r\nCriteria: \r\n \r\nThe Constitution of the State of Georgia; Article III; Section VI; Paragraph VI, Gratuities. \r\n \r\nQuestioned Costs: NIA \r\n \r\nInformation: \r\n \r\nThe University and ARAMARK entered into a Food Services Management Agreement (Agreement) whereby ARAMARK would provide a Campus Food Service Program for the University. The Agreement is for a period of ten years commencing September 2003 and ending August 2013. \r\n \r\nAccording to Paragraph 12, section H of the Agreement: \r\n \r\n\"ARAMARK shall contribute to the State University of West Georgia Foundation a total of $200,000 over the ten year Term ofthis Agreement, payable in equal installments of $20,000 each year during the Term hereof. Said contribution shall be made payable to the State University of West Georgia Foundation and paid by November 1st of each Term.\" \r\n \r\nThis type of contribution for which the University is receiving no substantial benefit would violate the \"gratuities clause\" ofthe Constitution which states in part \"(I) the General Assembly shall not have the power to grant any donation or gratuity or to forgive any debt or obligation owing to the public, and (2) the General Assembly shall not grant or authorize extra compensation to any public officer, agent, or contractor after the service has been rendered or the contract entered into\". \r\n \r\nCause: \r\n \r\nManagement of the University entered into a contractual agreement which provided for a contribution to be made by ARAMARK to the Foundation which constitutes a violation of the State's \"gratuities clause\". \r\n \r\n-I- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2004 \r\n \r\nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nEXPENDITURES/LIABILITIES/DISBURSEMENTS Improper Contractual Obligation Finding Control Number: FS-554-04-01 \r\n \r\nEffect: \r\n \r\nIn addition to the violation of the State's \"gratuities clause\", the University has placed itself in a position where the required contribution to the Foundation could become a factor in determining food service charges that could be passed on to students and faculty. \r\n \r\nRecommendation: \r\n \r\nThe University should (1) ensure that all contracts comply with all Board of Regents policies and applicable State laws; and (2) secure reimbursement from the Foundation for any and all funds received under the terms of the ARAMARK contract. \r\n \r\nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported. \r\n \r\n-2- \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bw43-b2002-h2003","title":"State University of West Georgia, Carrollton, Georgia, report on review of the financial statements for the fiscal year ended June 30, 2003","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. 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Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-bw43-b2001-h2002"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bw43-b2001-h2002"],"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":". !J \r\n \r\n.I (' , \r\n,- \r\n'( ,)J \r\n \r\n(1 I .I ,.., \r\n \r\nI \r\n \r\nI \r\n \r\n.,-,. \r\n \r\nJ \r\n \r\n'i I \r\n \r\n,.,j- \r\n \r\n\"'/. \\. \\' \"'..)v \r\n \r\n'/J '/' / 1 \r\n \r\nI ,) \r\n \r\n\\. '. \r\n \r\n\\ I -,I \r\n \r\n).., . \r\ni\" \r\n\\' 1\\ . \r\nI \r\n~I) ,I I \r\n: 1/, \r\n\" \r\n,I \r\n'f \r\n \r\n./, .\" \r\nJ \r\n/'1 I \r\n \r\n'. \r\nf, \r\n;',c\" 'L' \r\nI~ \r\n. I ~. \r\n \r\n',;' '\\. ' \r\n \r\n\\ \r\n \r\nI; \r\n \r\nf I.J )  '. 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(:. \r\n \r\nJ\". \r\n \r\nIf ~ \r\n/' \r\n \r\n\\ ',i-\" ( \r\n \r\n~ (' )',' \r\n \r\nl \r\n \r\nt~ .) -: \r\n \r\n~\\. f \\ \r\n \r\n.\\ ,'Y ': \r\n \r\n'( ,'. \r\n \r\nI \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA . - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nMANAGEMENT'S DISCUSSION AND ANALYSIS \r\n \r\n2 \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nEXHIBITS \r\n \r\nA STATEMENT OF NET ASSETS \r\n \r\n11 \r\n \r\nB STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS \r\n \r\n12 \r\n \r\nC STATEMENT OF CASH FLOWS \r\n \r\n13 \r\n \r\nD NOTES TO TIIE FINANCIAL STATEMENTS \r\n \r\n15 \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\nSCHEDULES \r\n \r\nSCHEDULES OF REVENUES AND EXPENDITURES COMPARED TO \r\n \r\nBUDGET - (NON-GAAP BASIS) \r\n \r\n1 \r\n \r\nRESIDENT INSTRUCTION \r\n \r\n33 \r\n \r\n2 \r\n \r\nLOTTERY FOR EDUCATION \r\n \r\n34 \r\n \r\n3 RECONCILIATION OF SALARIES AND TRAVEL \r\n \r\n35 \r\n \r\n4 RECONCILIATION OF PER DIEM AND FEES \r\n \r\n36 \r\n \r\nSECTION II \r\nCURRENT YEAR FINDINGS AND QUESTIONED COSTS \r\nSCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\nll.,. \r\nII: \r\nii \r\n \r\n SECTION I \r\nFINANCIAL \r\n \r\n RUSSELL W. HINTON \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.w. Suite 214 Atlanta, Georgia 30334-8400 \r\nFebruary 5, 2003 \r\n \r\nHonorable Sonny Perdue, Governor ,Members ofthe General Assembly of Georgia Members of the Board ofRegents ofthe University System ofGeorgia \r\nand Honorable Beheruz N. Sethna, President State University of West Georgia \r\nINDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \r\nLadies and Gentlemen: \r\nWe have reviewed the accompanying basic financial statements (Exhibits A thro,ugh D) of State University of West Georgia, an organizational unit of the State of Georgia, as of and for the year ended June 30, 2002, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute ofCertified Public Accountants. All information included in these financial statements is the representation of the management of State University of West Georgia. \r\nA review consists principally ofinquiries ofUniversity personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with auditing standards generally accepted in the United States of America, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an oplmon. \r\nBased on our review, with the exception ofthe matt~r discussed in the fourth paragraph, we are not aware ofany material modifications that should be made to the accompanying financial statements in order for them to be in conformity with accounting principles generally accepted in the United States of America. \r\nAs described in Note 1 to the financial statements, ,the University did not recognize June 30, 2001, encumbrances as expenses in the June 30, 2002, basic financial statements. To conform to generally accepted accounting principles, encumbrances should be recognized as 'expenses and liabilities in the period that goods and services are received. The effects on the basic financial statements of this departure from generally accepted accounting principles were not reasonably determinable. \r\n02ARL-67 \r\n\\' \r\n \r\n As described in Note I, State University ofWest Georgia adopted the provisions ofGovemmental Accounting Standards Board (GASB) Statement No. 35, Basic Financial Statements - and Management's Discussion and Analysis - for Public Colleges and Universities, as amended by GASB Statement No. 37, Basic Financial Statements - andManagements Discussion andAnalysisfor State and Local Governments, and GASB Statement No. 38, Certain Financial Statements Note Disclosures, as of July I, 2001, to implement a new financial reporting model. \r\nManagement's Discussion and Analysis is not a required part ofthe basic financial statements but is supplementary information required by the GASB. We have applied certain limited procedures, which consisted principally ofinquiries ofmanagement regarding the methods ofmeasurement and presentation ofthis supplementary information, and we are not aware ofany material modifications that should be made thereto. \r\nOur review was made for the purpose of expressing limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with accounting principles generally accepted in the United States ofAmerica. The accompanying supplementary information (Schedules I through 4) is presented for additional analysis purposes. Such information has been subjected to the inquiries and analytical procedures applied in the review ofthe financial statements, and we are not aware ofany material modifications that should be made to such data \r\nRespectfully submitted, \r\n'-'~Im.~-k Ru ell W. Hinton Sta e Auditor \r\nRWH:as 02ARL-67 \r\n \r\n REQUIRED SUPPLEMENTARY INFORMATION - 1- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA \r\nManagement's Discussion and Analysis \r\n \r\nIntroduction \r\nThe State University of West Georgia is one of the 34 institutions of the University System of Georgia. The State University of West Georgia, a charter member of the University System of Georgia, is a selectively-focused, public, comprehensive institution providing undergraduate and graduate education in arts and sciences, business and education. The University's primary recruiting area is central and Northwest Georgia. \r\n \r\nState University of West Georgia offers a range of disciplinary, interdisciplinary, and professional \r\n \r\nprograms at the baccalaureate level. The State University of West Georgia offers 112 programs of \r\n \r\nstudy, including 59 at the Bachelors level, 52 at the Masters and Specialist level, and one Doctoral \r\n \r\nprogram. It is also a major provider ofgraduate education at the master's and educational specialist's \r\n \r\nlevels; enhancing the graduate programs in Education, with an Ed.D. in School Improvement. State \r\n \r\nUniversity of West Georgia is accredited by the Southern Association of Colleges and Schools \r\n \r\n(SACS). In addition, the University has earned national accreditation or recognition in most \r\n \r\nundergraduate and graduate fields of specialization. \r\n \r\nFaculty \r\n \r\nStudents \r\n \r\nFY2002 FY2001 FY2000 \r\n \r\n344 \r\n \r\n9,030 \r\n \r\n343 \r\n \r\n.8,966 \r\n \r\n322 \r\n \r\n8,679 \r\n \r\nOverview ofthe Financial Statements and Financial Analysis \r\nThe State University ofWest Georgia is proud to present its financial statements for fiscal year 2002. The emphasis of discussions about these statements will be on current year data. There are three financial statements presented: the Statement ofNet Assets; the Statement ofRevenues, Expenses and Changes in Net Assets; and, the Statement of Cash Flows. This discussion and analysis ofthe University's financial statements provides an overview of its financial activities for the year. The State University of West Georgia has elected to not restate prior periods for purposes of providing the comparative data for this Management's Discussion and Analysis. However, in future years, when prior period information is available, a comparative analysis will be presented. \r\n \r\nStatement ofNet Assets \r\nThe Statement ofNet Assets presents the assets, liabilities, and net assets ofthe University as ofthe end of the fiscal year. The Statement of Net Assets is a point of time financial statement. The purpose ofthe Statement ofNet Assets is to present to the readers ofthe financial statements a fiscal snapshot ofthe State University ofWest Georgia. The StatementofNet Assets presents end-of-year data concerning Assets (current and non-current), Liabilities (current and non-current), and Net Assets (assets minus liabilities). The difference between current and non-current assets will be discussed in the notes to the financial statements. \r\n \r\n-2- \r\n \r\n From the data presented, readers of the Statement of Net Assets are able to determine the assets available to continue the operations ofthe institution. They are also able to determine how much the institution owes vendors, investors and lending institutions. \r\n \r\nFinally, the Statement ofNet Assets provides a picture ofthe net assets (assets minus liabilities) and their availability for expenditure by the institution. Net assets are divided into three major categories. The fIrst category, invested in capital assets, net ofdebt, provides the institution's equity in property, plant and equipment owned by the institution. The next asset category is restricted net assets. Expendable restricted net assets are available for expenditure by the institution but must be spent for purposes as determined by donors and/or external entities that have placed time or purpose restrictions on the use ofthe assets. The fInal category is unrestricted net assets. Unrestricted assets are available to the institution for any lawful purpose of the institution. \r\n \r\nStatement of Net Assets, Condensed (thousands of dollars) \r\n \r\nAssets Current Assets Capital Assets, Net Other Assets \r\n \r\n$ 18,115 55,952 1.831 \r\n \r\nTotal Assets \r\n \r\n$ 75,898 \r\n \r\nLiabilities Current Liabilities Non-Current Liabilities \r\n \r\n$ 7,169 1.059 \r\n \r\nTotal Liabilities \r\n \r\n.$ 8,228 \r\n \r\nNet Assets Invested in Capital Assets, Net ofDebt Restricted - Expendable Unrestricted \r\n \r\n$ 55,840 2,050 9,780 \r\n \r\nTotal Net Assets \r\n \r\n$ 67,670 \r\n \r\nStatement ofRevenues, Expenses and Changes in Net Assets \r\n \r\nChanges in total net assets as presented on the Statement of Net Assets m::e based on the activity presented in the Statement ofRevenues, Expenses and Changes in Net Assets. The purpose ofthe statement is to present the revenues received by the institution, both operating and nonoperating, and the expenses paid by the institution, operating and nonoperating, and any other revenues, expenses, gains and losses received or spent by the institution. Generally speaking operating revenues are rec.eived for providing goods and services to the various customers and. constituencies of the institution. Operating expenses are those expenses paid to acquire or produce the goods and services provided in return for the operating revenues, and to carry out the mission of the institution. \r\n \r\n-3- \r\n \r\n Nonoperating revenues are revenues received for which goods and services are not provided. For example state appropriations are nonoperating because they are provided by the Legislature to the institution without the Legislature directly receiving commensurate goods and services for those revenues. \r\n \r\nStatement of Revenues, Expenses and Changes in Net Assets, Condensed (thousands of dollars) \r\n \r\nOperating Revenues Operating Expenses \r\n \r\n$ 36,751 . 77,602 \r\n \r\nOperating Loss \r\n \r\n$ -40,851 \r\n \r\nNonoperating Revenues and Expenses \r\n \r\n43.300 \r\n \r\nIncome (Loss) Before Other Revenues, Expenses, Gains or Losses \r\n \r\n$ 2,449 \r\n \r\nOther Revenues, Expenses, Gains or Losses \r\n \r\n1,177 \r\n \r\nIncrease in Net Assets \r\n \r\n$ 3,626 \r\n \r\nNet Assets at Beginning of Year, as Originally Reported \r\n \r\n$131,196 \r\n \r\nCumulative Effect of Changes in Accounting Principle \r\n \r\n-67.152 \r\n \r\nNet Assets at Beginning of Year Restated \r\n \r\n$ 64,044 \r\n \r\nNet Assets at End of Year \r\n \r\n$ 67,670 \r\n \r\nThe Statement of Revenues, Expenses and Changes in Net Assets reflects a positive year with an increase in the net assets at the end ofthe year. Some highlights ofthe information presented on the Statement of Revenues, Expenses and Changes in Net Assets are as follows: \r\n \r\n-4- \r\n \r\n Revenue By Source (thousands of dollars) \r\nFor The Year Ended June 30, 2002 \r\nOperating Revenue Tuition and Fees Grants and Contracts Sales and Services ofEducational Departments Auxiliary Other \r\nTotal Operating Revenue \r\nNonoperating Revenue State Appropriations Investment Income Other \r\nTotal Nonoperating Revenue \r\nTotal Revenues \r\nExpenses (thousands of dollars) For The Year Ended June 30, 2002 \r\nOperating Expenses Instruction Research Public Service Academic Support Student Services Institutional Support Plant Operations and Maintenance Scholarships and Fellowships Auxiliary Enterprises Unallocated Depreciation \r\nTotal Operating Expenses \r\nNonoperating Expenses , Interest Expense (Capital Assets) \r\nTotal Expenses \r\n \r\n$ 15,430 8,087 466 \r\n12,274, 494 \r\n$ 36,751 \r\n$ 42,659 562 90 \r\n$ 43,311 \r\n$ 80,062 \r\n$ 32,033 877 174 \r\n8,750 4,272 7,271 6,304 2,614 10,741 4,566 \r\n$ 77,602 \r\n11 \r\n$ 77,613 \r\n \r\n- 5- \r\n \r\n Statement ofCash Flows \r\n \r\nThe final statement presented by the State University ofWest Georgia is the Statement of Cash Flows. The Statement of Cash Flows presents detailed information about the cash activity of the institution during the year. The statement is divided into five parts. The first part deals with operating cash flows and shows the net cash used by the operating activities ofthe institution. The second section reflects cash flows from non-capital financing activities. This section reflects the cash received and spent for nonoperating, non-investing, and non-capital financing pwposes. The third section reflects the cash flows from investing activities and shows the purchases, proceeds, and interest received from investing activities. The fourth section deals with cash flows from capital and related financing activities. This section deals with the cash used for the acquisition and construction ofcapital and related items. The fifth section reconciles the net cash used to the operating income or loss reflected on the Statement ofRevenues, Expenses and Changes in Net Assets. \r\n \r\nCash Flows for the Year Ended June 30, 2002, Condensed (thousands of dollars) \r\n \r\nCash Provided (Used) By: Operating Activities Non-Capital Financing Activities Investing Activities Capital and Related Financing Activities \r\n \r\n$ -40,974 42,303 1,184 -2,952 \r\n \r\nNet Change in Cash Cash, Beginning ofYear \r\n \r\n$ -439 3,083 \r\n \r\nCash, End of Year \r\n \r\n$ 2,644 \r\n \r\nCapital Assets \r\n \r\nFor additional information concerning Capital Assets, see Notes 1,6,8, and 9 in the notes to the financial statements. \r\n \r\nEconomic Outlook' \r\n \r\nThe University has weathered several years of tight budgets, followed by the severe cilts for fiscal year 2002,2.5% ($978,000) ofour state appropriation and 5% ($1,956,000) base budget cut in fiscal year 2003. Since the beginning of fiscal year 2003, the state has cut another 3.25% ($1,313,000) from our allocation. The cumulative impact of$3.3 million in base budget cuts hurts, but in spite of the cuts, the University's overall financial outlook is positive. Even with relatively flat funding from the state, the University has been able to maintain services and generate enrollment increases. This is done through good planning and conservative management. \r\n \r\n-6- \r\n \r\n One of the phenomena associated with recessions is that more people go back to school. We have just experienced an enrollment growth of over 7 percent-the largest enrollment growth in 31 years. This comes at a time when budgets have been cut by over $4 Million. Further, as the Atlanta Journal and Constitution reported a few months ago, State University ofWest Georgia had the highest proportion ofclasses taught by full-time faculty and administrators. That is consistent with our theme of Educational Excellence in a Personal Environment. We believe that the future for this University is only limited by our internal growth plans and our ability to provide support services. The expansion westward of the Atlanta metro area, oUr strong academic programs, increased attractiveness as a regional University, and our conservative planning all combine to make our future enrollment picture attractive. These programs are supported by one of the most beautiful campuses in the system. To accommodate growth, we are in the process of planning for the following new facilities: \r\n Adamson Hall, which will start construction in December,  Health Wellness, Lifelong Learning Center, which is in the fmal planning stages,  A privatized housing complex that will house 612 additional resident students,  Finally, the University is in the process ofrevising the master plan, which will allow us to \r\naddress some land use and facility issues that will help provide a growth plan for our future. Anticipated new facilities to be addressed in the master plan include a new academic instructional facility, a student recreation facility, plus an additional 1,200 new privatized beds. \r\nBeheruz N. Sethna, President State University of West Georgia \r\n-7- \r\n \r\n  BASIC FINANCIAL STATEMENTS -9- \r\n \r\n  STATE UNIVERSITY OF WEST GEORGIA STATEMENT OF NET ASSETS JUNE 30. 200Z \r\n \r\nEXHIBIT \"A\" \r\n \r\nTotal Net Assets \r\nSee Independent Accountanfs Combined Report on Review of Basic Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement. \r\n- 11 - \r\n \r\n$ 67,670.403.77 \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA \r\nSTATEMENT oF. REVENUES,-EXPENSESANp CHANGES IN NET ASSETS \r\n. YEAR ENpED JUNE 30 2002 \r\nOPERATING REVENUES \r\nStudent Tuition and Fees Less: Scholarship Allowances \r\nGrants and Contracts Federal State Nongovernmental \r\nRents and Royalties Sales and Services of Educational Departments Auxiliary Enterprises \r\nResidence Halls Bookstore Food Services ParkingfTransportation Health Services Intercollegiate Athletics Other Organizations Oltler Operating Revenues \r\nTotal Qperating Revenues \r\nOPERATING EXPENSES \r\nSalaries Faculty Staff \r\nEmployee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation \r\nTotal Operating Expenses \r\nOperating Income (Loss) \r\nNONOPERATING REVENUES \u003cEXPENSES} \r\nState Appropriations Interest and Other Investment Income Interest Expense (Capital Assets) Other Nonoperating Revenues \r\nNet Nonoperating Revenues \r\nIncome Before Other Revenues, Expenses, Gains or Losses . \r\nCapital Grants and Gifts State Nongovernmental \r\nTotal Capital Grants and Gifts \r\nIncrease/(Decrease) in Net Assets \r\nNet Assets Net Assets - Beginning of Year, as Originally Reported Cumulative Effect of Changes in Accounting Principle \r\nNet Assets - Beginning of Year, Restated \r\nNet Assets - End of Year \r\nSee Independent Accountant's Combined Report on Review of Basic Financial Statements and Supplementary Information. . \r\nThe notes to the financial statements are an integral part of this statement. \r\n- 12- \r\n \r\nEXHIBIT\"B\" \r\n \r\n$ 18,569,788.18 -3,139,810.40 \r\n6,397,855.87 645,825.30 \r\n1,043,737.61 12,320.50 \r\n468,018.63 \r\n5,149,748.23 770,122.63 \r\n2,813,506.07 442,281.80 \r\n1,139,270.37 1,901,716.29 \r\n257,888.89 481,540.59 \r\n$ 36,751,786.58 \r\n \r\n$ 20,738,897.88 21,801,411.14 11,421,822.50 151,980.00 740,093.87 3,125,620.13 2,918,211.17 12,342,924.72 4,585,975.98 \r\n$ 77,802j537.19 \r\n$ -40,850,750.83 \r\n \r\n$ 42,659,334.80 581,589.92 -11,124.73 90,202.44 \r\n \r\n$ 43,300,002.23 \r\n \r\n$ \r\n \r\n2,449,251.80 \r\n \r\n$ \r\n \r\n1,120,050.60 \r\n \r\n57,012.99 \r\n \r\n$ \r\n \r\n1,177,063.59 \r\n \r\n$ \r\n \r\n3,826,315.19 \r\n \r\n$ 131,196,179.50 -87,152;090.92 \r\n$ 84,044,088.58 \r\n \r\n$ 67,670,403.77 \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 2002 \r\n \r\nCASH FLOWS FROM OPERATING ACTIVITIES Tunion and Fees Grants and Contracts Sales and Services of Educational Departments Payments to Suppliers Payments to Employees Payments for Scholarships and Fellowships Loans Issued to Students and Employees Collection of Loans to Students and Employees AuxI1lary Enterprise Charges: Resldenca Halls Bookstore Food Services PartdngfTransportatlon Health Services Intercollegiate Athletics Other Organizations Other Receipts (Payments) \r\nNet Cash Provided (Used) by Operating Activities \r\nCASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES State Appropriations Agency Funds Transactions Other Nonoperating Receipts \r\nNet Cesh Flows Provided (Used) by Noncapltal Financing Activitias \r\nCASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES capnal Grants and Gifts Received Purchases of Capital Assets Principal Paid on Capnai Debt and Leese \r\nInterest Paid on Capital Debt Bnd Laese \r\nNet Cash Provided (Used) by Capital Bnd Related Financing AclivIlJes \r\nCASH FLOWS FROM INVESTING ACTIVITIES Proceeds from Sales and Maturitias of Investments \r\nIntarest on Investments \r\nNet Cash Provided (Used) by Investing Activitias \r\nNet Incraesa/(Decraase) In Cash \r\nCesh and Cash Equivalents - June 30, 2001 Less: Short-Tenm Investments \r\nCash end Cosh Equivalents - Beginning of Year \r\n \r\nCosh Bnd Cash Equivalents - End of Year \r\n \r\nRECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: \r\nOperating Income (Loss) Adjustmants to Raconcile Net Income (Loss) to Net Cesh \r\nProvided (Used) by Oparaling Activities Depreciation Change In Assets and liabilities: Accounts Receivables, Net Inventories Prepaid Items Notes Receivables, Net Accounts Payable Saleries Payable Payroll Wlthholdings Defenecl Revenue Other lIabirlties Compensated Absences \r\n \r\nNet Cash Provided (Used) by Operating Activities \r\n \r\nSee Independent Accountant's Combined Raport on Review of Beslc Financial Statements and Supplemantary InformetJon, \r\n \r\nThe notes to the financlal statements are an Integral part of this statement. \r\n \r\n-13- \r\n \r\nEXHIBITC \r\n \r\n$ 15,284,851,70 7,905.039,70 466,018,63 \r\n-32,960.444,42 -42.048,563,55 \r\n-3,125,620,13 -441,035,10 436,381,53 \r\n5.848,930,37 nO.122,63 \r\n2,613.506,07 442,261,80 \r\n1.139,270,37 1,901,716,29 \r\n257,666,89 535,156,37 \r\n$ -40.974,520.85 \r\n \r\n$ 42,859,334,60 -446,213,70 90,326,64 \r\n$ 42,303,447,54 \r\n \r\n$ \r\n \r\n57.012,99 \r\n \r\n-2,869,859,44 \r\n \r\n-128.430.88 \r\n \r\n-11.124,73 \r\n \r\n$ -2.952.202,06 \r\n \r\n$ \r\n \r\n1,000,000,00 \r\n \r\n164.836,79 \r\n \r\n$ \r\n \r\n1.164,836.79 \r\n \r\n$ \r\n \r\n-438,438,56 \r\n \r\n$ 16,264.981,09 -13.181.626,01 \r\n \r\n$ \r\n \r\n3.083,355,08 \r\n \r\n$ \r\n \r\n2,644.916,50 \r\n \r\n$ -40,850,750,83 \r\n4,565,975.98 \r\n-607,637.34 42,069.15 \r\n-231,562,n -4,853,57 \r\n-5,293,248,52 5,079,09 \r\n87,928,33 1,044,033,98 \r\n-23,422,38 291,687,83 \r\n$ -40,974,520,85 \r\n \r\n \" \r\n \r\n STATE UNNERSITY OF WEST GEORGIA . NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2002 \r\n \r\nEXHffiIT\"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nNATURE OF OPERATIONS State University ofWest Georgia serves the state, and national communities by providing its students with academic instruction that advances fundamentallmowledge, and by disseminating lmowledge to the people of Georgia and throughout the country. \r\n \r\nREPORTING ENTITY State University ofWest Georgia is one of thirty-four (34) State supported member institutions of higher education in Georgia which comprise the University System of Georgia, an organizational unit ofthe State ofGeorgia. The accompanying financial statements reflect the operations of State University of West Georgia as a separate reporting entity. \r\n \r\nThe Board of Regents has constitutional authority to govern, control and manage the University System ofGeorgia. This authority includes but is not limited to the power to designate management, the ability to significantly influence operations, the authority to control institutions' budgets, the power to determine allotments of State funds to member institutions and the authority to prescribe accounting syStems and administrative policies for member institutions. State University of West Georgia does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, State University ofWest Georgia is considered an organizational unit ofthe Board of Regents of the University System of Georgia reporting entity for financial reporting purposes because of the significance of its legal, operational, and financial relationships with the Board of Regents as defined in Section 2100 of the Governmental Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial Reporting Standards. \r\n \r\nFINANCIAL STATEMENT PRESENTATION \r\n \r\nIn June 1999, the GASB issued Statement No. 34, Basic Financial Statements and Management \r\n \r\nDiscussion and Analysisfor State and Local Governments. This was followed in November 1999 by \r\n \r\nGASB Statement No. 35, Basic Financial Statements and Management's Discussion and Analysis \r\n \r\nfor Public Colleges and Universities. The State of Georgia is required to implement GASB \r\n \r\nStatement No. 34 as ofand for the year ended June 30, 2002. As an organizational unit ofthe State \r\n \r\nofGeorgia, the University is also required to adopt GASB Statements No. 34 and No. 35 as amended \r\n \r\nby GASB Statements No. 37 and No. 38. The financial statement presentation required by GASB \r\n \r\nStatements No. 34 and No. 35 as amended by GASB Statements No. 37 and No. 38 provides a \r\n \r\ncomprehensive, entity-wide perspective of the University's assets, liabilities, net assets, revenues, \r\n \r\nexpenses, changes in net assets, cash flows, and replaces the fund group perspective previously \r\n \r\nrequired. \r\n \r\n., \r\n \r\nThe University has elected to not restate its 2001 financial statements to confonn with the new financial statement presentation, therefore comparative financial infonnation will not be presented for fiscal year 2002. Significant accounting changes made in order to comply with the new requirements include (l) adoption of depreciation on capital assets; and (2) recognition of compensated absences. Generally Accepted Accounting Principles (GAAP) requires that the \r\n \r\n- 15 - \r\n \r\n STATE UNNERSITY OF WEST GEORGIA \r\nto NOTES THE FINANCIAL STATEMENTS \r\nJUNE 30, 2002 \r\n \r\nEXHffiIT\"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nFINANCIAL STATEMENT PRESENTATION reporting of summer school revenues and expenses be between fiscal years rather than in one fiscal year. Due to the lack ofmateriality, Institutions ofthe University System ofGeorgia will continue to report summer revenues and expenses in the year in which the predominate activity takes place. \r\n \r\nAt June 30, 2001, encumbrances (contractual obligations for goods and services not received at fiscal year end) were recorded as expenditures by the UniverSity instead ofreservations offund balance as ' required by generally accepted accounting principles. For fiscal year 2002, the University changed its method ofrecording encumbrances such that encumbrances at June 30, 2002 were not recorded as expenses. This change is in accordance with generally accepted accounting principles. \r\n \r\nNo adjustments however,have been made on the financial statements to restate the fund balance,at July 1, 2001 for the June 30, 2001 encumbrances recorded as expenditures in fiscal year 2001. The net- effect of the above accounting treatment resulted in an understatement of expenses on the accompanying financial statements for prior year encumbrances which should have been reflected as ,expenses in the period when goods and services were received. . \r\n \r\nBASIS OF ACCOUNTING For financial reporting purposes, the University is considered a special-purpose government engaged . only in business-type activities. Accordingly, the University's financial statements have been presented using the economic resources measurement focus and the accrual basis of accounting, except as noted in the preceding paragraphs. Under the accrual basis, revenues are recognized when earned, and expenses are recorded when an obligation has been incurred. All significant intrauniversity transactions have been eliminated. \r\n \r\nThe University has the option to apply all Financial Accounting Standards Board (FASB) pronouncements issued after November 30, 1989, unless FASB conflicts with GASB. The University has elected to not apply FASB pronouncements issued after the applicable date. \r\n \r\nRESTATEMENT OF NET ASSETS - BEGINNING OF YEAR . '. \r\n \r\n. \r\n \r\nAs a result of the adoption of GASB Statement No. 34, the University was also required to make \r\n \r\ncertain changes in accounting principles, specifically (1) adoption ofdepreciation on capital assets, \r\n \r\nand (2) recording of compensated absences. GASB Statement No. 34 requires certain summer \r\n \r\nsemester revenues be recognized between fiscal years rather than the fiscal year in which the \r\n \r\nsemester was predominantly conducted. The University System ofGeorgia has chosen to continue to \r\n \r\nrecord summer revenue in the year in which the semester was predominantly conducted. Net assets at July'l, 2~01 were reduced by $67,152,090.92' for the cumulative effect of these changes. \r\n \r\n- 16- \r\n \r\n STATE UNNERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2002 \r\n \r\nEXHffiIT\"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nCASH AND CASH EQUIVALENTS/SHORT-TERM INVESTMENTS Cash and Cash Equivalents consist ofpetty cash, demand deposits and time deposits in authorized financial institutions, and cash management pools that have the general characteristics of demand deposit accounts. \r\nINVESTMENTS The University accounts for its investments .at fair value in accordance with GASB Statement No. 31, Accounting and Financial Reportingfor Certain Investments andfor External Investment Pools. Changes in unrealized gain (loss) on the carrying value ofinvestments are reported as a component of investment income in the statements of revenues, expenses, and changes in net assets. \r\nACCOUNTS RECEIVABLE Accounts receivable consists oftuition and fee charges to students and auxiliary enterprise services provided to students, faculty and staff, the majority of each residing in the State of Georgia. Accounts receivable also include amounts due from the Federal government, state and local governments, or private sources, in connection with reimbursement ofallowable expenditures made pursuant to the University's grant and contracts. Accounts receivable are recorded net ofestimated uncollectible amounts. \r\nINVENTORIES Consumable supplies are recorded on the consumption method and are valued at cost using the weighted average method. \r\nResale Inventories are valued at cost using the first-in, first-out (\"FIFO\") method. \r\nNON-CURRENT CASH AND INVESTMENTS Cash and investments that are externally restricted and cannot be used to pay current liabilities are classified as non-current assets in the statements of net assets. \r\nCAPITAL ASSETS Capital assets are recorded at cost at the date of acquisition, or fair market value at the date of donation in the case ofgifts. For equipment, the University's capitalization policy includes all items with a unit cost of $5,000.00 or more, and an estimated useful life of greater than one year. Renovations to buildings, infrastructure, and hmd improvements that exceed $100,000.00 and significantly increase the value or extend the useful life of the structure are capitalized. Routine repairs and maintenance are charged to operating expense in the year in which the expense was incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally 40 to 60 years for buildings, 20 to 25 years for infrastructure and land improvements, 10 years for library books, and 3 to 7 years for equipment. \r\n \r\n- 17 - \r\n \r\n \" STATE UNNERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2002 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nCAPITAL ASSETS To obtain the total picture ofplant additions in the University System, it is necessary to look at the activities ofthe Georgia StateFinancing and Investment Commission(GSFIC) - an organization that is external to the System. GSFIC issues bonds for and on behalfofthe State ofGeorgia, pursuant to powers granted to it in the Constitution ofthe State ofGeorgia and the Act creating the GSFIC. The bonds so issued constitute direct and general obligations ofthe State of Georgia, to the payment of whicp the full faith, credit and taxing power of the State are pledged. \r\n \r\nEffective July 1,2001, the GSFIC retains construction in progress on their books throughout the construction period and transfers the entire project to State University of West Georgia when complete. For the year ended June 30, 2002, GSFIC transferred capital additions valued at $1,120,050.60 to State University ofWest Georgia. The balance ofconstruction in progress retained by GSFIC totaled $458,183.67 at June 30, 2002. \r\n \r\nDEFERRED REVENUES . Deferred revenues include amounts received for tuition and fees 'and certain auxiliary aCtivities prior \r\nto the end ofthe fiscal year but related to the subsequent accounting period. Deferred revenues also include amounts received from grant and contract sponsors that have not yet been earned. \r\n \r\nCOMPENSATED ABSENCES \r\n \r\nEmployee vacation pay is accrued at year-end for financial statement purposes. The liability and \r\n \r\nexpense incurred are recorded at year-end as accrued vacation payable in the Statement of Net \r\n \r\nAssets, and as a component of compensation and benefit expense in the Statements of Revenues, \r\n \r\nExpenses, and Changes in Net Assets. State University of West Georgia had accrued liability for \r\n \r\ncompensated absences in the amount of $1,854,643.00 as of July 1,2001. For Fiscal Year 2002, \r\n \r\n$1,498,703.37 was earned in compensated absences and employees were paid $1,207,015.54, for a \r\n \r\nnet increase of$291,687.83. \r\n \r\n' \r\n \r\nNON-CURRENT LIABILITIES \r\n \r\n. \r\n \r\nNon-current liabilities include (1) liabilities that will not be paid within the next fiscal year; (2) \r\n \r\ncapital lease obligations with contractUal maturities greater than one year; and (3) other liabilities \r\n \r\nthat, although payable within one year, are to be paid from funds that are classified as non-current \r\n \r\nassets. \r\n \r\nNET ASSETS The University's net assets are classified as follows: \r\n \r\nInvested in capital assets, net ofrelated debt: This represents the University's total investment in capital assets, net ofoutstanding 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 ofinvested in capital assets, net ofrelated debt. (The term \"debt obligations\" as used in this definition does not include debt of the GSFIC as discussed above.) \r\n \r\n- 18 - \r\n \r\n STATE UNNERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2002 \r\n \r\nEXHIBIT\"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nNET ASSETS Restricted net assets: Restricted net assets include resources in which the University is legally or contractually obligated to spend resources in accordance with restrictions imposed by external third parties. \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 University , and may be used at the discretion of the governing board to meet current expenses for those purposes, except for unexpended state appropriations (surplus) -of $39,775.64. Unexpended state appropriations must be refunded to the Board of Regents of the University System of Georgia - Administrative Central Office for remittance to the Office of Treasury and Fiscal Services. These resources also include auxiliary enterprises, which are substantially self-supporting activities that provide services for students, faculty and staff. \r\nWhen an expense is incurred that can be paid using either restricted or unrestricted resources, the University's policy is to first apply the expense towards unrestricted resources, and then towards restricted resources. \r\nINCOME TAXES State University ofWest Georgia, as a political subdivision ofthe State ofGeorgia, is excluded from Federal income taxes under Section 115(1) of the Internal Revenue Code, as amended. \r\nCLASSIFICATION OF REVENUES The University has classified its revenues as either operating or non-operating revenues in the Statement of Revenues, Expenses, and Changes in Net Assets according to the following criteria: \r\nOperating revenues: Operating revenues include activities that have the characteristics ofexchange transactions, such as (1) student tuition and fees, net ofscholarship allowances, (2) sales and services of auxiliary enterprises, (3) most Federal, state and local grants and contracts and Federal appropriations, and (4) interest on institutional student loans. \r\nNon-operating revenues: Non-operating revenues include activities that have the characteristics of non-exchange transactions, such as gifts and contributions, and other revenue sources that are defined as non-operating revenues by GASB No.9, Reporting Cash Flows of Proprietary and Nonexpendable Trust Funds and Governmental Entities That Use Proprietary Fund Accounting, and GASB No. 34, such as state appropriations and investment income. \r\n \r\n- 19- \r\n \r\n STATEUNIVERSITY OF WEST GEORGIA NOTES TOTHEFINANCMLSTATEMENTS \r\nJUNE 30, 2002 \r\n \r\nEXHffiIT\"D\" \r\n \r\nNOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nSCHOLARSHIP ALLOWANCES \r\n \r\nStudent tuition and fee revenues, and certain other revenues from students, are reported at gross with \r\n \r\na contra revenue account of scholarship allowances in the Statement of Revenues, Expenses and \r\n \r\nChanges in Net Assets. Scholarship allowances are the difference between the stated charge for \r\n \r\ngoods and services provided by the University, and the amount that is paid by students and/or third \r\n \r\nparties making payments on the students' behalf. Certain governmental grants, such as Pell grants, \r\n \r\nandother Federal, state or nongovernmental programs, are recorded as either operating or non- \r\n \r\noperating revenues in the University's financial statements. To the extent that revenues from such \r\n \r\nprograms are used to satisfy'tuition and fees and other student charges, the University has recorded \r\n \r\ncontra revenue for scholarship allowances. \r\n \r\n.. \r\n \r\nNOTE 2: CASH AND CASH EOUNALENTS; OTHER DEPOSITS; AND INVESTMENTS \r\n \r\nSTATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES \r\n \r\nFunds belonging to the State of Georgia (and thus State University of West Georgia) cannot be \r\n \r\nplaced in a depository paying interest longer than ten days without the depository providing a surety \r\n \r\nbond to the State. In lieu of a surety bond, the depository may pledge as collateral anyone or more \r\n \r\nofthe following securities as enumerated in the Official Code ofGeorgia Annotated Section 50-17- \r\n \r\n59: \r\n \r\n. \r\n \r\n1. Bonds, bill, certificates ofindebtedness, notes, or other direct obligations ofthe United States \r\n \r\nor of the State of Georgia. \r\n \r\n. \r\n \r\n2. Bonds, bills, certificates of indebtedness, notes,or other obligations of the counties or municipalities offue State of Georgia. \r\n \r\n3. Bonds of any public aUthority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose. \r\n \r\n4. Industrial revenue bonds and bonds of devel\u003c?pment authorities created by the laws of the \r\n \r\nState of Georgia. \r\n \r\n\"' \r\n \r\n5.. Bonds, bills, certificates of indebtedness, notes, or other obligations of a subsidiary corporation ofthe United States government, which are fully guaranteed by the United States government both as to principal and interest, or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, The Federal Intennediate Credit Bank, the Central Bank for Cooperatives, the Fann Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\n6. Guarantee or insurance ofaccounts provided by the Federal Deposit Insurance Corporation. \r\n \r\n-20- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 3~, 2002 \r\n \r\nEXHffiIT\"D\" \r\n \r\nNOTE 2: CASH AND CASH EQUNALENTS; OTHER DEPOSITS; AND INVESTMENTS \r\n \r\nSTATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES As authorized in the Official Code ofGeorgia Annotated Section 50-17-53, the State Depository Board has adopted policies which allow agencies ofthe State ofGeorgia (and thus State University of West Georgia), the option of exempting demand deposits from the collateral requirements. \r\n \r\nThe Treasurer ofthe Board ofRegents is responsible for all details relative to furnishing the required depository protection for all units of the University System of Georgia. \r\n \r\nCATEGORIZATION OF DEPOSITS The University's cash deposits are categorized by risk as follows: \r\n \r\nCategory 1 - Amounts covered by depository insurance or collateralized with securities (at fair value) held by the University or by its agent in the University's name. \r\n \r\nCategory 2 - Amounts collateralized with securities (at fair value) held by the pledging financial institution's trust department or agent in the University's name. \r\n \r\nCategory 3 - Amounts collateralized with securities (at fair value) held by the pledging financial institution, or by its trust department or agent but not in the University's name, and amounts uncollateralized. \r\n \r\nCash Deposits as of June 30, 2002 are as follows: \r\n \r\nCash Deposits \r\n \r\nCarrying Amount \r\n \r\nBank Balances \r\n \r\nRisk Categories \r\n \r\n2 \r\n \r\n3 \r\n \r\n$ 3233798.74 $ 594390550 $ 301 112.53 $ 5642792 97 $,===o~.o~o \r\n \r\nCATEGORIZATION OF INVESTMENTS At June 30, 2002, the carrying amount of the University's total investments was $11,949,946.90. These investments consisted of $10,168,292.88 in the State Investment Pool administered by the . State ofGeorgia Office ofTreasury and Fiscal Services and $1,781,654.02 in the Board ofRegent's Short-Term Fund. Funds invested in an investment-pool managed by another governmental entity are not required to be categorized since the University did not own any specific identifiable investment securitiC?s of the pool. \r\n \r\n- 21 - \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2002 \r\n \r\nEXHffiIT\"D\" \r\n \r\nNOTE 3: ACCOUNTS' RECEIVABLE \r\n \r\nAccounts receivable consisted of the following at June 30, 2002: \r\n \r\nStudent Tuition and Fees Auxiliary Enterprises and Other Operating Activities Federal, State, and Private Funds Other \r\n \r\n$ 862,374.13 66,141.04 \r\n507,455.95 218,189.52 \r\n \r\n$ 1,654,160.64 \r\n \r\nLess Allowance for Doubtful Accounts \r\n \r\n55,671.27 \r\n \r\nNet Accounts Receivable \r\n \r\n$ 1.598.489.37 \r\n \r\nNOTE 4: INVENTORIES \r\n \r\nInventories consisted ofthe following at June 30, 2002: \r\n \r\nBookstore Centre Shoppe Central Warehouse \r\n \r\n$ 479,609.85 11,386.48 \r\n126,021.19 \r\n \r\nTotal \r\n \r\n$ 617.017.52 \r\n \r\nNOTE 5: NOTES/LOANS RECEIVABLE \r\n \r\nNotes/Loans receivable at June 30, 2002, primarily consist ofstudent loans made through the Federal Perkins Loan Program (the Program). The Program provides for cancellation of a 19an at rates of 10% to 30% per year up to a maximum of 100% ifthe participant complies with certain provisions. The Federal governmentreimburses the University for amounts cancelled under these provisions. As the University determines that loans are uncollectible and not eligible for reimbursement by the Federal government, theJoans are written off and assigned to the U. S. Department of Education. \r\n \r\nNOTE 6: CAPITAL ASSETS \r\n \r\nThe balance at July 1,2001 was adjusted for accounting changes required in implementing GASB Statements 34 and 35 as disclosed in Note 1. Following are the changes in capital assets for the year ended June 30, 2002: \r\n \r\n- 22- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2002 \r\n \r\nEXHffiIT\"D\" \r\n \r\nDeferred revenue consisted of the following at June 30, 2002: \r\nPrepaid Tuition and Fees Other Deferred Revenue \r\nTotals \r\n \r\n$ 3,535,211.28 1,008,124.17 \r\n$ 4,543.335.45 \r\n \r\n- 23- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30. 2002 \r\n \r\nEXHmIT \"D\" \r\n \r\nNOTE 8: LONG-TERM LIABILITIES \r\n \r\nLong-tenn liability activity for the year ended June 30, 2002, was as follows: \r\n \r\nBalance July 1, 2001 \r\n \r\nAdditions \r\n \r\nReductions \r\n \r\nBalance June 30, 2002 \r\n \r\nCurrent Portion \r\n \r\nLeases Lease Obligations \r\n \r\n$ 168,643.07 \r\n \r\n$ 128,430,88 $ 40,212.19 $ 10,085,21 \r\n \r\nOther Liabilities Compensated Absences \r\n \r\n1.854,643.00 $ 1.498,703.37 \r\n \r\n1.207,015.54 \r\n \r\n2.146,330.83 \r\n \r\n1.117.187.09 \r\n \r\nTotal Long-Term Obligations $ 2.023 286.07 $ 1.498,703.37 $ 133544642 $ 2,186543.02 $ 1 127272 30 \r\n \r\nNOTE 9: LEASE OBLIGATIONS \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 2003 and 2006. Expenses for fiscal year 2002 were $82,542.62 of which $11,124.73 represented interest. Total principal paid on capital leases was $71 ,417.89 for the fiscal year ended June 30, 2002, Interest rates range from 7.15 percent to 8.5 percent. The following is a summary ofthe carrying values of assets held under capital lease at June 30,2002: \r\n \r\nEquipment \r\n \r\n$ 218.335,28 \r\n \r\nCertain capital leases provide for renewal and/or purchase options. Generally purchase options at bargain prices of one dollar are exercisable at the expiration of the lease terms. \r\n \r\nState University of West Georgia also has various capital leases for equipment with an outstanding balance at June 30, 2002 in the amount of$40,212.19. \r\n \r\nSUMMARY OF LEASE OBLIGATION Future commitments for capital leases having remaining terms in excess of one year as of June 30, \r\n2002, were as follows: \r\n \r\n. ~ 24- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2002 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 9: LEASE OBLIGATIONS \r\n \r\nSUMMARY OF LEASE OBLIGATION \r\n \r\nCapital Leases \r\n \r\nYear Ending JUne 30: 2003 2004 2005 2006 \r\n \r\n$ 12,955.56 12,955.56 12,955.56 7,557.41 \r\n \r\nTotal Minimum Lease Payments \r\n \r\n$ 46,424.09 \r\n \r\nLess: Interest \r\n \r\n6,211.90 \r\n \r\nPrincipal Outstanding \r\n \r\n$ 40.212.19 \r\n \r\nNOTE 10: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\nPlan Description State University ofWest Georgia anticipates in the Teachers Retirement System ofGeorgia (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 ofGeorgia. TRS provides service retirement, disability retirement; and survivor's benefits for its members in accordance with State statute. The Teachers Retirement System ofGeorgia issues a separate stand alone fmancial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\nFunding Policy Employees ofState University ofWest Georgia who are covered by TRS are required by State statute to contribute 5% of their. gross earnings to TRS. State University of West Georgia 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 2002, the employer contribution rate was 9.24% for covered employees. Employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\n- 25- \r\n \r\n STATE UNNERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2002 \r\n \r\nEXHillIT I D\" \r\n \r\nNOTE 10: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\nFunding Policy Fiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2002 2001 2000 \r\n \r\n100% 100% 100% \r\n \r\n$ 2,129,640.40 $ 2,813,817.96 . $ ~,863,932.04 \r\n \r\nREGENTS RETIREMENT PLAN \r\n \r\nPlan Description The Regents Retirement Plan, a single-employer defined contribution plan, is an optional retirement plan established and administered by the Board of Regents of the University System of Georgia, under which it may purchase annuity contracts for the purpose of providing retirement and 'death benefits for eligible faculty and principal administrators. Benefits depend solely on amounts contributed to the plan plus investment earnings. Benefits are payable to participating employees or their beneficiaries in accordance with the terms of the annuity contracts. \r\n \r\nFunding Policy Member contribution requirements are established by the Board of Trustees of the Teachers Retirement System. Employer contributi~ns are established by statute and may be amended only by , the General Assembly ofthe State ofGeorgia. The employer contributes 9.62% ofthe participating. employee's earnable compensation. pmployees contribute 5% of their earnable compensation. Amounts attributable to all plan contributions are fully vested and non-forfeitable at all times. \r\n \r\nState University of West Georgia and the covered employees made the required contributions of $1,484,863.68 (9.62%) and $798,672.95 (5%), respectively. \r\n \r\nGEORGIA DEFINED CONTRIBUTION PLAN \r\n \r\nPlan Description State University of West Georgia.participates in the Georgia Defined Contribution Plan (GDCP) which is a single-employer defined contribution plan established by the General Assembly of Georgia for the purpose of providing retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees of the Employees' Retirement System of Georgia. \r\n \r\n- 26- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30. 2002 \r\n \r\nEXHIBIT\"D\" \r\n \r\nNOTE 10: RETffiEMENTPLANS \r\nGEORGIA DEFINED CONTRIBUTION PLAN \r\nBenefits A member may retire and elect to receive periodic payments after attainment ofage 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board ofTrustees. Ifa member has less than $ 3,500.00 credited to his/her account, the Board ofTrustees has the option ofrequiring a lump sum distribution to the member in lieu ofmaking periodic payments. Upon the death ofa member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary. Benefit provisions are established by State statute. \r\nContributions and Vesting Member contributions are seven and one-halfpercent (7.5%) ofgross salary. There are no employer contributions. Contribution rates are established by State statute. Earnings are credited to each member's account in a manner established by the Board of Trustees. Upon termination of employment, the amount of the member's account is refundable upon request by the member. \r\nTotal contributions made by employees during fiscal year 2002 amounted to $61,560.38 which represents 7.5% of covered payroll. These contributions met the requirements of the plan. \r\nNOTE 11: RISK MANAGEMENT \r\nState University ofWest Georgia is a participant in the Board ofRegents ofthe University System of Georgia Health Benefits Plan, which is a self-insurance program of health and dental benefits for employees and retirees ofthe University System ofGeorgia. State University ofWest Georgia and participating employees and retirees pay premiums to the Health Benefits Plan for this' health insurance coverage. The Health Benefits Plan is included in the financial statements ofthe Board of Regents of the University System of Georgia - Administrative Central Office. All units of the University System of Georgia share the risk of loss for claims of the Health Benefits Plan. The Health Benefits Plan is considered a self-sustaining risk fund that provides health coverage for its members up to a maximum lifetime benefit of$2,000,000.00 per person and dental coverage up to an annual maximum of $1,000.00 per person. The Board of Regents has contracted with Blue Cross Blue Shield ofGeorgia to process claims in accordance with the Health Benefits Plan as established by the Board ofRegents. \r\nThe Department ofAdministrative Services (DOAS) has the responsibility for the State of Georgia ofmakiI:J.g and carrying out decisions that will minimize the adverse effects ofaccidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS processes claims for risk of loss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' indemnification. Limited amounts of commercial insurance are purchased applicable to property, employee and \r\n- 27- \r\n \r\n STATE UNNERSITY OF WEST GEORGiA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2002 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 11: RISK MANAGEMENT \r\n \r\nautomobile liability, fidelity and certain other risks. State University of West Georgia, as an organizational unit ofthe Board ofRegents ofthe University System ofGeorgia, is part ofthe State of Georgia reporting entity, and as such, is covered by the State of Georgia risk management program administered by,DOAS. Premiums for the risk management program are charged to the various state organizations by DOAS to provide claims servicing and claims payment. \r\n \r\n, A self-insured program of professional liability for its employees was established by the Board of ' Regents of the University System of Georgia under powers authorized by the Official Code of Georgia Annotated Section 45-9-1. The program insures the employees to the extent that they are not immune from liability against personal liability for damages arising out of the performance of their duties or in any way connected therewith. The program is administered by DOAS as a SelfInsurance Fund. \r\n \r\nNOTE 12: CONTINGENCIES \r\n \r\nAmounts received or receivable from grantor agencies are subject to audit and adjustment by grantor \r\n \r\nagencies. This could result in 'refunds to the grantor 'agency for any expenditures which are \r\n \r\ndisallowed under grant terms. The amount ofexpenditures which may be disallowed by the grantor \r\n \r\ncannot be determined at this time although State University ofWest Georgia expects such amounts, \r\n \r\nif any, to be immaterial to its overall financial position. \r\n \r\n' \r\n \r\nLitigation, claims and assessments filed against State University ofWest Georgia (cui organizational \r\nunit ofthe Board ofRegents ofthe University System ofGeorgia), ifany, are generally considered to be actions against ~e State ofGeorgia. Accordingly, significant litigation, claims and assessments pending against the State ,of Georgia are disclosed in the State of Georgia Comprehensive Annual \r\nFinancial Report for the fiscal year ended June 30, 2002. \r\n \r\nNOTE 13: POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS \r\n \r\nPursuant to the general powers conferred by the Official Code ofGeorgia Annotated Section 20-331, the Board ofRegents of the University System ofGeorgia has established group health and life insurance programs for regular employees ofthe University System ofGeorgia. It is the policy ofthe Board ofRegents to permit employees ofthe University System ofGeorgia eligible for retirement or that become permanently and totally disabled to continue as members of the group health and life insurance programs. Employees who are eligible for retirement or disability under the criteria established by the Teachers Retirement System ofGeorgia and who have at least ten years ofservice with the University System of Georgia are eligible for these post-employment health and life insurance benefits. Organizational units of the Board of Regents of the University System of Georgia pay the employer portion for group insurance for affected individuals. \r\n \r\n- 28- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2002 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 13: POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS \r\n \r\nAs ofJune 30, 2002, there were 376 employees who had retired or were disabled that were receiving these post-employment health and life insurance benefits. For the year ended June 30, 2002, State University of West Georgia recognized as incurred $780,872.09 of expenditures, which was net of $288,256.26 ofparticipant contributions. \r\n \r\nNOTE 14: NATURAL CLASSIFICATIONS WITH FUNCTIONAL CLASSIFICATIONS \r\n \r\nThe University's operating expenses by functional classification are shown below: \r\n \r\nStatement of Operating Expenses - Natural vs Functional Classifications For the Fiscal Year Ended June 30, 2002 \r\n \r\nFunctional Classification \r\n \r\nNatural Classification \r\n \r\nInstruction \r\n \r\nResearch \r\n \r\nPublic Service \r\n \r\nAcademic Support \r\n \r\nStudent Services \r\n \r\nInstitutional Support \r\n \r\nSalaries Faculty Staff \r\nEmployee Benefits . Other Personal Services \r\nTravel Scholarships and \r\nFellowships Utilities Supplies and Other \r\nServices Depreciation \r\n \r\n$ 20,171,480.33 $ 180,605.16 \r\n \r\n$ 361,018.79 $ 15,659.00 $ \r\n \r\n5,434.40 \r\n \r\n3,764,343.79 \r\n \r\n255,728.56 $ 130,578.60 \r\n \r\n4,928,377.38 \r\n \r\n2,657,245.95 \r\n \r\n3,792,102.01 \r\n \r\n5,450.590.41 \r\n \r\n62,211.82 \r\n \r\n35,577.24 \r\n \r\n1,285,225.95 \r\n \r\n644,653.64 \r\n \r\n2,332,775.46 \r\n \r\n151.980.00 \r\n \r\n376.051.54 \r\n \r\n67,880.02 \r\n \r\n2,140.39 \r\n \r\n144,591.57 \r\n \r\n51,310.45 \r\n \r\n45.467.94 \r\n \r\n228.807.32 2,042.069.80 \r\n \r\n1,210.24 309,281.94 \r\n \r\n1,552.88 4,574.74 \r\n \r\n70,238.94 1.960,157.26 \r\n \r\n55.569.48 847,210.70 \r\n \r\n70,119.06 873.348.60 \r\n \r\nTotal Operating Expenses \r\n \r\n$ 32 033 343.19 $ 876.91774 $ 174,42385 $ 8,749,609 89 $ 427164922 $ 727122747 \r\n \r\nNatural Classification \r\nSalaries Faculty Staff \r\nEmployee Benefits Other Personal Services . Travel Scholarships and \r\nFellowships Utilities Supplies and Other \r\nServices Depreciation \r\nTotal Operating Expenses \r\n \r\nPlant. Operations and Maintenance \r\n \r\nfunctional Classjfication \r\n \r\nScholarships and FellowshiPs \r\n \r\nAuxiliary Enterprises \r\n \r\nUnallocated l\u003eeDreciation \r\n \r\nTotal Operating Expenses \r\n \r\n$ 3,813,948.73 -897,899.08 \r\n12.662.82 \r\n \r\n$ \r\n \r\n2,500.00 \r\n \r\n2,259.086.12 \r\n \r\n2,508,487.06 \r\n \r\n39,989.14 \r\n \r\n$ 20,736.697.68 21.601,411.14 11,421,622.50 151,980.00 740,093.87 \r\n \r\n$ 2,552,094.89 2,046,117.34 \r\n \r\n573,525.24 442,595.91 \r\n \r\n3.125,620.13 2,916,211.17 \r\n \r\n1,329,218.56 \r\n \r\n62,275.06 \r\n \r\n4,914,788.06 $ . 4.565,975.98 \r\n \r\n12,342,924.72 4,565,975.98 \r\n \r\n$ 630404837 $ 261436995 $ 10740971 53 $ 456597598 $ 77 602,537 19 \r\n \r\n- 29- \r\n \r\n  SUPPLEMENTARY INFORMATION \r\n- 31 - \r\n \r\n  STATE UNIVERSITY OF WEST GEORGIA SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO \r\nBUDGET - (NON-GAAP BASIS) RESIDENT INSTRUCTION \r\nYEAR ENDED JUNE 30, 2002 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nState Appropriations Other Revenues Retained \r\n \r\nBUDGET \r\n \r\nACTUAL (1) \r\n \r\nVARIANCEFAVORABLE (UNFAVORABLE) \r\n \r\n$ 42.962.164.00 $ 42,462.164,00 $ 72.096.805.00 45.256,274.25 \r\n \r\n\".500,000.00 -26.840.530.75 \r\n \r\n$ 115.058.969.00 $ 87.718.438.25 $_--:-2::.;.7l,,;:;.34....:.;0:;.:;.5~3;.;;,0;.;,.,7;:;..5 \r\n \r\nEXPENDITURES \r\nPersonal Services: Education, General and Departmental Services Sponsored Operations \r\nOperating Expenses: Education, General and Departmental Services Sponsored Operations \r\nCapital Outlay Special Funding Initiative \r\n \r\n$ 46.539,232.00 $ 46.602,491.12 $ \r\n \r\n2,085.801.00 \r\n \r\n1.439.582.74 \r\n \r\n12,171.262.00 46,712,829.00 \r\n6,149.927.00 1.399.918.00 \r\n \r\n11,830,250.28 22.344.599.22 4.598,525.47 \r\n899.918.00 \r\n \r\n-63.259.12 646.218.26 \" \r\n341.011.72 24,368,229.78 \r\n1,551,401.53 500,000.00 \r\n \r\n$ 115,058.969.00 $ 87.715.366.83 $_--:2;.;.,7:.;,.34....:.;3\"\"\".6;.,;0.;;.,2...:.;17.;.. \r\n \r\nExcess of Revenues over Expenditures \r\n \r\n$ \r\n \r\n3,071.42 $ ..........-=\"\"\"\"'3,..0=7..:1=.4=.2 \r\n \r\n(1) Actual am'ounts were prepared on a prescribed basis of accounting that demonstrates compliance with bUdgetary statutes and regulations of th~ State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. \r\n \r\nSee accompanying notes and Independent Accountanfs Combined Report on Review of Basic Financial Statements and Supplementary Information. \r\n33- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA SCHEDULE OF REVENUES AND EXPENDITlIJRES' COMPARED TO \r\nBUDGET (NGN:.GAAPBASIS) LOTIERY F0REDUCATION YEAR ENDEID JUNE 30. 2002 \r\n \r\nSCHEDULE \"2\" \r\n \r\nREVENUES State Appropriations \r\n \r\nBUDGET \r\n \r\nACTUAL (1) \r\n \r\nVARIANCEFAVORABLE (UNFAVORABLE) \r\n \r\n$ 415,080.00 $ 415,080.00 $ \r\n \r\n--=0:.:.:.0:;:..0 \r\n \r\nEXPENDITURES Equipment, Technology and Construction \r\nTrust Fund Special Funding Initiatives \r\nExcess of Revenues over Expenditures \r\n \r\n$ 274,048.00 $ 334,064.21 $ \r\n \r\n141,032.00 \r\n \r\n80,613.75 \r\n \r\n-60,016.21 60,418.25 \r\n \r\n$ \r\n \r\n415,080.00 $ 414,677.96 $ _...--_ _4.:.;0:.;:2:.:.:.04;.;. \r\n \r\n$ \r\n \r\n402.04 $====4~0=2~.04= \r\n \r\n(1) Actual amounts were prepared on a prescribed basis 'of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. \r\n \r\nSee accompanying notes and Independent Accountanrs Combined Report on Review of Basic Financial Statements and Supplementary Information. \r\n- 34- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA RECONCILIATION OF SALARIES AND TRAVEL \r\nYEAR ENDED JUNE 30. 2002 \r\n \r\nSCHEDULE \"3\" \r\n \r\nTotals per Annual Supplement \r\nAccruals June 30, 2002 June 30, 2001 \r\nCompensated Absences June 30, 2002 .June 30, 2001 \r\nPrepaid Salaries June 30, 2002 June 30, 2001 \r\nUnreconciled Variance \r\n \r\nSALARIES \r\n \r\nTRAVEL \r\n \r\n$ \r\n \r\n42,053,449.29 $ 740,093.87 \r\n \r\n127,365.93 -122,286.84 \r\n \r\n1,993,804.77 -1,722,845.33 \r\n \r\n-289,330.00 282,108.35 \r\n15,842.65 \r\n \r\n$ \r\n \r\n42,338,108.82 $ 740,093.87 \r\n \r\nSee accompanying notes and Independent AcCountant'sCombined Report on Review of Basic Financial Statements and Supplementary Information. \r\n- 35- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA RECONCILIATION OF PER DIEM AND FEES \r\nYEAR ENDE JUNE 30, 2002 \r\n \r\nSCHEDULE \"4\" \r\n \r\nTotals per Annual Supplement \r\n \r\nAdjustrTlents Allen, Fuller, Horton, Norris, Onuegbu, Phovixay, Scott, Turner, Woodward, \r\n \r\nKeri Rachael AprilS. Erin C. Patricia C. Soukie Keri KristenL. AmyD. \r\n \r\nFEE AMOUNT \r\n \r\nEXPENSE AMOUNT \r\n \r\n$ \r\n \r\n502,924.82 $ \r\n \r\n67,426.28 $ \r\n \r\nTOTAL 570,351.10 \r\n \r\n85.24 105.92 192.56 192.57 192.56 80.00 \r\n56.00 192.56 \r\n36.68 \r\n \r\n85.24 105.92 192.56 192.57 192.56 \r\n80.00 56.00 192.56 36.68 \r\n \r\n$ \r\n \r\n502,924.82 $ \r\n \r\n68,560.37 $ ='==5=:7:::::1::!:::,4:=8:;;5'.,;,;19= \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Basic Financial Statements and Supplementary Information. \r\n- 36- \r\n \r\n SECTION II CURRENT YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2002 \r\nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nACCOUNTING CONTROLS (OVERALL) Inadequate General Controls Finding Control Number: FS-554-02-01 \r\nDuring fiscal year 2002, the Board ofRegents ofthe University System ofGeorgia converted units of the University System from the College University Financial Accounting (CUPA) legacy system to \r\nthe new GeorgiaFIRST System (Financial, Information and Reporting Systems for Tomorrow). In \r\nJanuary of2002, the State University ofWest Georgia placed this accounting system into production. \r\nThe management of the State University of West Georgia is responsible for establishing and maintaining adequate controls over the operation, utilization, ~d integrity of their data processed with the GeorgiaFIRST System. We encountered problems with the financial data presented by the University. The University's failure to establish and adh~re to a final closing for the year ended June 30, 2002, created a situation where data presented for review was incomplete. Extensive review procedures were necessary to determine the validity ofthe information provided. \r\nTo reduce the risk ofreporting incomplete information, the University should work with the Board of Regents Central Office to develop procedures that will result in complete reporting ofall financial data in a more efficient and timely manner. \r\nGENERAL LEDGER Inadequacies in Control Over Subsidiary Ledgers Finding Control Number: FS-554-02-02 \r\nOur examination included a review of the procedures utilized by the State University of West \r\nGeorgia in recording transactions to the various modules comprising the GeorgiaFIRSTaccounting \r\nsystem. Our testing revealed that, at June 30, 2002, the University's generalledgei module did not balance with the subsidiary modules. This condition was primarily due to errors in posting subsidiary records during the conversion from the old College University Financial Accounting \r\n(CUPA) legacy accounting system to the new GeorgiaFIRST accounting system and due to \r\ntransaCtions being posted to the general ledger module rather than the appropriate subsidiary modules. The University did not provide a reconciliation of the general ledger balances to the subsidiary records, which resulted in extensive work by the auditors to identify reconciling items at June 30, 2002. \r\nManagement's failure to ensure that suhsidiary records are reconciled with the general ledger causes internal reports to management, generated from the subsidiary modules, to be inaccurate and misleading. This condition can lead to erroneous decisions by the University's management and result in inaccurate reporting of fmancial information. \r\n-I - \r\n \r\n STATE UNNERSITY OF WEST GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2002 \r\n \r\nFINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS \r\n \r\nGENERAL LEDGER Inadequacies in Control Over Subsidiary Ledgers Finding Control Number: FS-554-02-02 \r\n \r\nTo ensure accurate and timely reporting of financial infonnation from subsidiary records, the \r\n \r\nUniversity should post transactions correctly to the subsidiary ledgers rather than as journal entries in \r\n \r\nthe general ledger. The University shpuld develop internal accounting controls and procedures to \r\n \r\nensure that reconciliations o( subsidiary ledgers and the general ledger are perfonned on a regular \r\n \r\nbasis. \r\n \r\n. \r\n \r\nREVENUESIRECENABLES/RECEIPTS Inadequate Accounting Procedures Finding Control Number: FS-554-02-03 \r\n \r\nOur .review of the State University of' West' Georgia's accounting procedures for RevenueslReceivableslReceipts revealed the following significant deficiencies: \r\n \r\n.1) A review ofthe University's accoUnting records revealed that the Statement ofNet Assets contains approximately $702,000.00 ofaccounts receivable that pertain to Fall Semester (Fiscal Year 2003) tuition and fees. It appears that corresponding adjustments to deferred revenue accounts have been recorded; however, due to the condition ofthe University's financial records this could not be confinned. In accordance with generaliy accepted accounting principles, accounts receivable should only be recorded when revenue ~ecognition criteria has been met, therefore, the University should not have recorded accounts receivable related to Fall Semester 2003. \r\n \r\n2) The University was Ul)able to provide a reconciliation of student accounts receivable between the Banner Student Registration System aild the University's accounting system (GeorgiaFIRS1). This reconciling problem resulted in an unidentified variance of $51,831.71 on the accounts receivable reconciliation. \r\n \r\n3) The University did not have procedures in place to properly age accounts receivables as required by the Board of Regent's policy manual. \r\n \r\nThese deficiencies occurred because management failed to ensure that adequate procedures were in place and operating effectively. Management should review its system ofcontrols, initiate necessary changes, and monitor the effectiveness of controls implemented. \r\n \r\n-2- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2002 . FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS CAPITAL ASSETS Inadequacies in the Capital Asset System Finding Control Number: ,FS-554-02-04 Our review 'ofthe State University ofWest Georgia's accounting procedures for the Capital Assets Management System revealed that the University could not reconcile the capital asset balance at June 30, 2001 with the restated capital asset balance at July 1, 2001 related to equipment. An unidentifiable variance of $963,056.76 resulted. This deficiency occurred because management failed to ensure that controls were in place to properly record and reconcile capital asset activity. Management should review its system of controls, initiate necessary changes, and monitor the effectiveness ofcontrols implemented to ensure that capital assets records are accurately maintained. \r\n-3- \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bw43-b2000-h2001","title":"State University of West Georgia, Carrollton, Georgia, report on review of the financial statements for the fiscal year ended June 30, 2001","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Carroll County, Carrollton, 33.58011, -85.07661"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2000/2001"],"dcterms_description":["June 30, 2000-fiscal year ended June 30, 2004.","Title fluctuates: Audits conducted \"in accordance with generally accepted auditing standards\" are issued as: Audit report; reviews that are \"substantially less in scope than an audit in accordance with generally accepted auditing standards\" are issued as: Review.","Title from cover.","Fiscal year ended June 30, 2004, issued in 2005? (online surrogate) (Georgia Government Publications database, viewed April 20, 2020)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, GA : Georgia. Dept. of Audits and Accounts, 2001"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["State University of West Georgia--Appropriations and expenditures--Periodicals.","Education, Higher--Georgia--Auditing--Periodicals.","Education, Higher--Georgia--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["State University of West Georgia, Carrollton, Georgia, report on review of the financial statements for the fiscal year ended June 30, 2001"],"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-bw43-b2000-h2001"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bw43-b2000-h2001"],"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":"\"; ,\\: ~) \r\n \r\n/ \r\n \r\n,Lo , \r\n \r\n~l \r\n \r\n'h 'v,'\" I \r\n \r\nc \r\n'\" I \r\n \r\n1. \"! { \r\n \r\n,\\/r,' ,~ \r\n \r\n.~';S /', \r\n \r\n, \r\n \r\n'j_} i\\\\ \r\n \r\n\\ \r\n \r\nI \"_\" \r\n \r\n\" \r\n \r\n,.. \r\n \r\n, ;. \\.I. \r\ni ,y \r\n \r\n, ........- \r\n \r\n(,V,,- '~ \r\n \r\n\u003e I~~~\" ~ \r\n \r\n, . . \r\n \r\n\\.' '. 'i \r\n \r\n, \r\n \r\nI. \r\n \r\n. \"(, ~ ~ \r\n;~ \r\n \r\nt',-\\, \r\nI \r\n \r\n., ) \r\n \r\n\" \r\n( \r\n \r\n./ \r\n'. 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J ',.'\\ \r\n'\\.) . \r\n1 fI \r\nJ ')l) .~,; I \r\n \r\nV I' \r\n.1 \\, . \r\n \r\n;' )'- \r\n \r\n'\" \r\n \r\n.~. \r\n \r\n;- \r\n \r\nJ \r\n- \r\n \r\ni'~ \r\n} \r\n \r\n.. \r\n \r\n' \r\n \r\n\u003cC/ \r\n \r\n~' )--:; \r\n \r\n/' \r\n./ ,.)-, \r\n \r\n\\ \r\n \r\n.v \r\n,.. \r\nJ/' '\\l \r\n \r\n. .!( ',' \r\n.\" ~~ /' J '\" ~, \r\n \r\n:' r::, .', \r\n~, J,J. I' \r\nl.t ') \r\n( II \r\n \r\n, \\ II .' \r\n \r\n1 lV \r\n \r\n..' \\ J \"'; \r\n \r\nJ \r\n \r\n/\" \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA - TABLE OF CONTENTS - \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \r\n \r\nEXHIDITS \r\n \r\nFINANCIAL STATEMENTS \r\n \r\nA COMBINED BALANCE SHEET \r\n \r\nALL FUND GROUPS \r\n \r\n2 \r\n \r\nB COMBINED STATEMENT OF CHANGES IN FUND BALANCES \r\n \r\nALL FUND GROUPS \r\n \r\n4 \r\n \r\nC STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, \r\n \r\nAND OTHER CHANGES \r\n \r\n6 \r\n \r\nD NOTES TO THE FINANCIAL STATEMENTS \r\n \r\n7 \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\nE COMB~GBALANCESHEET \r\n \r\nCURRENT FUNDS - UNRESTRICTED \r\n \r\n20 \r\n \r\nF COMB~G STATEMENT OF CHANGES IN FUND BALANCES \r\n \r\nCURRENT FUNDS - UNRESTRICTED \r\n \r\n22 \r\n \r\nG COMB~G STATEMENT OF CURRENT FUNDS REVENUES, EXPENDmJRES, \r\n \r\nAND OTHER CHANGES \r\n \r\n. \r\n \r\nUNRESTRICTED \r\n \r\n24 . \r\n \r\nSCHEDULES \r\n \r\nSCHEDULES OF REVENUES AND EXPENDITURES COMPARED TO BUDGET \r\n \r\n1 \r\n \r\nRESIDENT INSTRUCTION \r\n \r\n26 \r\n \r\n2 \r\n \r\nLOTTERY FOR EDUCATION \r\n \r\n28 \r\n \r\n3 CHANGES IN INVESTMENT IN PLANT \r\n \r\n30 \r\n \r\n4 SCHEDULE OF FUND BALANCES \r\n \r\nCURRENT FUNDS AND PLANT FUNDS \r\n \r\n32 \r\n \r\n5 RECONCILIATION OF SALARIES AND TRAVEL \r\n \r\n34 \r\n \r\n-' \r\n \r\n FINANCIAL \r\n \r\n RUSSELL W. HINTON \r\nSTATE AUDITOR \r\n(404)6562174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street. S.W.. Suite 214 Atlanta. Georgia 30334-H400 \r\nNovember 7, 2001 \r\n \r\nHonorable Roy E. Barnes, Governor Members of the General Assembly of Georgia Members of the Board of Regents of the University System of Georgia \r\nand Honorable Beheruz N. Sethna, President State University of West Georgia \r\n \r\nINDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \r\n \r\nLadies and Gentlemen: \r\n \r\nWe have reviewed the accompanying financial statements (Exhibits A through D) ofState University of West Georgia as of and for the year ended June 30, 2001, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute ofCertified Public Accountants. All information included in these financial statements is the representation of the management of State University of West Georgia. \r\n \r\nA review consists principally ofinquiries ofUniversity personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with auditing standards generally accepted in the United States of America, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opmlOn. \r\n \r\nBased on our review, with the exception of the matters described in the fourth and fifth paragraphs, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with accounting principles generally accepted in the United States of America. \r\n \r\nc\" \r\n \r\nAs disclosed in Note 1 to the financial statements, accounting principles generally accepted in the \r\n \r\nUnited States of America require encumbrances to be recorded as a reservation offund balance. \r\n \r\nHowever, in accordance with Georgia Law and State budgetary policy, management recorded \r\n \r\nencumbrances as expenditures and liabilities. The effects of this departure from accounting \r\n \r\nprinciples generally accepted in the United States of America on the financial statements were not \r\n \r\nreasonably determinable. \r\n \r\n01ARL-67 \r\n \r\n As disclosed in Note 1 to the financial statements, the University did not report the liability and related expenditure for compensated absences in the current funds as required by accounting principles generally accepted in the United States of America. If compensated absences were reported, liabilities would be increased and fund balance would be decreased by $1,854,643.00 as of June 30, 2001, and the net change in fund balance for the year ended June 30, 2001, would be decreased by $229,653.79. \r\nOur review was made for the purpose of expressing limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with accounting principles generally accepted in the United States ofAmerica. The accompanying combining statements (Exhibits E through G) and the financial schedules (Schedules 1 through 5) are presented for supplementary analysis purposes. Such information has been subjected to the inquiries and analytical procedures applied in the review ofthe financi;l1 statements, and except for the effects of the matters discussed in the fourth and fifth paragraphs, we are not aware of any material modifications which should be made thereto. \r\nRespectfully submitted, \r\n~.~e,ll_W. H~int~on ~-:k State Auditor \r\nRWH:gp 01ARL-67 \r\n \r\n FINANCIAL STATEMENTS - 1- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA COMBINED BALANCE SHEET ALL FUND GROUPS JUNE 30, 2001 \r\n \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable Inventories Prepaid Items Investment in Plant \r\n \r\nCURRENT FUNDS UNRESTRICTED RESTRICTED \r\n \r\nLOAN FUNDS \r\n \r\n$ 9,631,091,54 $ 421,988.86 $ 273,459,69 \r\n \r\n520,132.79 \r\n \r\n311,779.18 1,826,352.28 \r\n \r\n659,086.67 \r\n \r\n465,193.42 \r\n \r\nTotal Assets \r\n \r\n$ 11,275,504.42 $ 733,768.04 $ 2,099,811,97 \r\n \r\nLIABILITIES AND FUND BALANCES \r\nLiabilities Accounts Payable Salaries Payable Student Deposits Deferred Revenue Tuition and Fees Other Deposits Held in Custody for Others \r\nTotal Liabilities \r\nFund Balances U, S. Government Grants Refundable Institutional Loans - Restricted Net Investment in Plant Restricted Unrestricted \r\nTotal Fund Balances \r\n \r\n$ 2,271,434.75 $ 122,286,84 266,765.00 \r\n2,549,275.26 237,622.39 \r\n \r\n21,364.22 \r\n \r\n$ 5,447,384.24 $ 21,364.22 \r\n \r\n$ 1,874,368.22 225,443,75 \r\n$ 712,403.82 $ 5,828,120.18 \r\n$ 5,828,120.18 $ 712,403.82 $ 2,099,811.97 \r\n \r\nTotal Liabilities and Fund Balances \r\n \r\n$ 11,275,504.42 $ 733,768.04 $ 2,099,811.97 \r\n \r\nSee Independent Accountant's Combined Report on Review of Financial Statements . and Supplementary Information. \r\nThe notes to the financial statements are an integral part of this statement. \r\n- 2- \r\n \r\n EXHIBIT \"A\" \r\n \r\nUNEXPENDED \r\n \r\nPLANT FUNDS RENEWALS AND REPLACEMENTS \r\n \r\nINVESTMENT IN PLANT \r\n \r\nAGENCY FUNDS \r\n \r\nTOTAL (Memorandum \r\nOnly) \r\n \r\n$ 2,607,629.16 $ 2,172,349.05 \r\n \r\n$ 1,158,462.79 $ 16,264,981.09 \r\n \r\n687.42 \r\n \r\n2,658,951.67 \r\n \r\n659,086.67 \r\n \r\n465,193.42 \r\n \r\n_ _ _ _ _ _ $ 121,185,595.60 \r\n \r\n12U 85,595.60 \r\n \r\n$ 2,607,629.16 $ 2,172,349.05 $ 121,185,595.60 $ U59,150.21. $ 141,233,808.45 \r\n \r\n$ 2,606,382.38 $ \r\n \r\n803,347.90 \r\n \r\n$ 2,606,382.38 $ \r\n \r\n803,347.90 \r\n \r\n$ 300,023.78 $ 6,002,553.03 122,286.84 266,765.00 \r\n \r\n859,126.43 \r\n \r\n2,549,275.26 237,622.39 859,126.43 \r\n \r\n$ 1,159,150.21 $ 10,037,628.95 \r\n \r\n$ 121,185,595.60 \r\n \r\n$ \r\n \r\n1,246.78 $ 1,369,001.15 \r\n \r\n$ \r\n \r\n1,246.78 $ 1,369,001.15 $ 121,185,595.60 \r\n \r\n$ 1,874,368.22 225,443.75 \r\n121,185,595.60 712,403.82 \r\n7,198,368.11 \r\n$ 131,196,179.50 \r\n \r\n$ 2,607,629.16 $ 2,172,349.05 $ 121,185,595.60 $ 1,159,150.21 $ 141,233,808.45 \r\n \r\n-3- \r\nI \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA COMBINED STATEMENT OF CHANGES IN FUND BALANCES \r\nALL FUND GROUPS YEAR ENDED JUNE 30, 2001 \r\n \r\nREVENUES AND OTHER ADDITIONS \r\nUnrestricted Current Fund Revenues State Appropriations \r\nRegular Lottery Proceeds Federal Grants and Contracts State Grants and Contracts Private Gifts. Grants. and Contracts Investment Income Interest on Loans Receivable Adjustments Prior Years' Expenditures/Accounts Payable Expended for Plant Facilities Current Funds Plant Funds \r\nUnexpended Renewals and Replacements Georgia State Financing and Investment Commission Other Additions Insurance Recoveries Miscellaneous \r\nTotal Revenues and Other Additions \r\nEXPENDITURES AND OTHER DEDUCTIONS \r\nEducational and General Expenditures Auxiliary Enterprises Expenditures Indirect Costs Recovered Refunded to Grantors Remittances to the Board of Regents of the \r\nUniversity System of Georgia Prior Year's Unrestricted Fund Balance (Surplus) \r\nAdjustments Prior Years' Revenues/Accounts Receivable \r\nLoan Cancellations and Write-Offs Administrative and Collection Costs Expended for Plant Facilities \r\nCapitalized Noncapitalized Disposals/Deletions/Adjustments \r\nTotal Expenditures and Other Deductions \r\nTRANSFERS BETWEEN FUNDS \r\nNonmandatory. Renewals and Replacements capital Projects \r\nTotal Transfers Between Funds \r\nNet Increase/(Deaease) for the Year \r\nFUND BALANCES JULY 1, 2000 \r\n \r\nCURRENT FUNDS UNRESTRICTED . RESTRICTED \r\n \r\nLOAN FUNDS \r\n \r\n$ 72.857,910.02 \r\n \r\n$ 19.859.360.07 $ 9.076.194.75. 1.173.201.11 \r\n21.271.51. \r\n \r\n42.123.00 \r\n3.315.00 10.875.88 38.508.90 \r\n \r\n$ 72.879.181.53 $ 30,108,755.93 $ \r\n \r\n94.822.78 \r\n \r\n$ 60.083.634.80 $ 29.855,953.42 10,387.453.80 115,952.04 12.146.00 \r\n \r\n39.614.74 600.10 \r\n \r\n$ \r\n \r\n51,069.85 \r\n \r\n15,814.62 \r\n \r\n$ 70.511.303.44 $ 29,984.051.46 $ \r\n \r\n66.884.47 \r\n \r\n$ \r\n \r\n-664,057.81 \r\n \r\n-707,187.66 \r\n \r\n$ -1.371.245.47 \r\n \r\n$ \r\n \r\n996.632.62 $ \r\n \r\n4,831 ,487.56 \r\n \r\n124,704.47 $ \r\n \r\n27.938.31 \r\n \r\n587.699.35 \r\n \r\n2.071 ,873.66 \r\n \r\nFUND BALANCES JUNE 30. 2001 \r\n \r\n$ 5,828,120,18 $ 712,403,82 $ 2,099,811.97 \r\n \r\nSee Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an Integral part of this statement. \r\n-4- \r\n \r\n EXHIBIT\"B\" \r\n \r\nUNEXPENDED \r\n \r\nPLANT FUNDS RENEWALS AND REPLACEMENTS \r\n \r\nINVESTMENT IN PLANT \r\n \r\nTOTAL (Memorandum \r\nOnly) \r\n \r\n$ 2,073,000.00 27,861.00 \r\n368,316.16 $ 13,761.28 \r\n359,797.28 $ 2,842,735.72 $ \r\n \r\n$ 72,857,910.02 \r\n \r\n$ 317,732.89 \r\n \r\n55,061.00 \r\n \r\n2,073,000.00 27,861.00 \r\n19,901,483.07 9,076,194.75 1,231,577.11 \r\n696,924.93 38,508.90 \r\n \r\n35,032.79 \r\n \r\n4,222,876.95 \r\n \r\n4,222,876.95 \r\n \r\n3,522,748.57 961,470.51 \r\n5,560,355.19 \r\n \r\n3,522,748.57 961,470.51 \r\n5,560.355.19 \r\n \r\n7,853.00 \r\n \r\n359,797.28 7,853.00 \r\n \r\n325.585.89 $ 14.322,512.22 $ 120,573,594.07 \r\n \r\n$ 89,939,588.22 10,387,453.80 115,952.04 12,146.00 \r\n \r\n$ \r\n \r\n3,788.40 \r\n \r\n3,522,748.57 $ 25,928.03 \r\n$ 3,552,465.00 $ \r\n \r\n961,470.51 144,330.74 \r\n$ \r\n1,105,801.25 $ \r\n \r\n43,403.14 \r\n \r\n600.10 51,069.85 15,814.62 \r\n \r\n875,889.24 \r\n \r\n4,484,219.08 170,258.77 875,889.24 \r\n \r\n875,889.24 $ 106,096,394.86 \r\n \r\n$ $ 707,187.66 \r\n \r\n664,057.81 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n$ 707,187.66 $ \r\n \r\n664,057.81 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n-2,541.62 $ \r\n \r\n-116,157.55 $ 13,446,622.98 $ 14,477,199.21 \r\n \r\n3,788.40 \r\n \r\n1,485,158.70 107,738,972.62 116,718,980.29 \r\n \r\n$ \r\n \r\n1,246.78 $ 1,369,001.15 $ 121,185,595.60 $ 131,196,179.50 \r\n \r\n-5- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, \r\nAND OTHER CHANGES YEAR ENDED JUNE 30, 2001 \r\n \r\nEXHIBIT \"C \r\n \r\nREVENUES \r\nState Appropriations Tuition and Fees Federal Grants and Contracts State Grants and Contracts Local Grants and Contracts Private Gifts, Grants, and Contracts Sales and Services of Educational Activities Sales and Services of Auxiliary Enterprises Other Sources \r\nTotal Revenues \r\nEXPENDITURES \r\nEducational and General Instruction Research Public Service Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships \r\nAuxiliary Enterprises Student Housing Food Services Stores and Shops Intercollegiate Athletics Other Service Units \r\nTotal Expenditures \r\nOTHER TRANSFERS AND ADDITIONS/{DEDUCTIONS\u003e \r\nExcess of Restricted Receipts over Transfers to Revenues \r\nRefunded to Grantors Transfers for Renewals and Replacements Transfers for Capital Projects Prior Period Adjustments (Net) Remittances to the Board of Regents \r\nof the University System of Georgia Prior Year's Unrestricted Fund Balance (Surplus) \r\nTotal Other Transfers and AdditionsJ(Deductions) \r\n \r\nUNRESTRICTED RESTRICTED \r\n \r\nTOTAL (Memorandum \r\nOnly) \r\n \r\n$ 39,624,989.00 \r\n \r\n$ 39,624,989,00 \r\n \r\n19,473,816.45 \r\n \r\n19,473,816.45 \r\n \r\n102,840.67 $ 19,767,944.10 \r\n \r\n19,870,784.77 \r\n \r\n9,049,422.17 \r\n \r\n9,049,422.17 \r\n \r\n28,318.42 \r\n \r\n28,318.42 \r\n \r\n1,038,587.15 \r\n \r\n1,038,587.15 \r\n \r\n123,837.18 \r\n \r\n123,837,18 \r\n \r\n11,324,366.38 \r\n \r\n11,324,366.38 \r\n \r\n2,179,741.92 \r\n \r\n2,179,741.92 \r\n \r\n$ 72,857,910.02 $ 29,855,953,42 $ 102,713,863.44 \r\n \r\n$. 29,423,541.66 $ 1,306,776.34 $ \r\n \r\n213,913.25 \r\n \r\n738,020.31 \r\n \r\n301,053.58 \r\n \r\n114,485.75 \r\n \r\n10,998,720,83 \r\n \r\n4,392,46 \r\n \r\n4,124,476.98 \r\n \r\n34,650.02 \r\n \r\n7,079,574,03 \r\n \r\n298,329.98 \r\n \r\n5,907,037.19 \r\n \r\n2,035,317.28 \r\n \r\n27,359,298.56 \r\n \r\n30,730,318.00 951,933.56 415,539.33 \r\n11,003,113.29 4,159,127.00 7,377,904.01 5,907,037.19 \r\n29,394,615.84 \r\n \r\n4,453,207.10 2,158,334.59 \r\n614,601.21 1,847,610.22 1,313,700,68 \r\n \r\n4,453,207.10 2,158,334.59 \r\n614,601.21 1,847,610.22 1,313,700.68 \r\n \r\n$ 70,471,088.60 $ 29,855,953,42 $ 100,327,042.02 \r\n \r\n$ \r\n \r\n136,850.47 $ \r\n \r\n136,850.47 \r\n \r\n-12,146.00 \r\n \r\n-12,146.00 \r\n \r\n$ \r\n \r\n-664,057.81 \r\n \r\n-664,057.81 \r\n \r\n-707,187.66 \r\n \r\n-707,187.66 \r\n \r\n20,671.41 \r\n \r\n20,671.41 \r\n \r\n-39,614.74 $ -1,390,188.80 $ \r\n \r\n-39,614.74 124,704.47 $ -1,265,484.33 \r\n \r\nNet Inaeasel(Deaease) in Fund Balances \r\n \r\n$ \r\n \r\n996,632.62 $ \r\n \r\nSee Independent Accountanfs Combined Report on Review of Finandal Statements and Supplementary Information. \r\n \r\nThe notes to the finandal statements are an integral part of this statement. -6- \r\n \r\n124,704.47 $ 1,121,337,09 \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2001 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nREPORTING ENTITY State University of West Georgia is one of thirty-four (34) State supported member institutions of higher education in Georgia which comprise the University System of Georgia, an organizational unit of the State ofGeorgia. The accompanying financial statements reflect the operations of State University of West Georgia as a separate reporting entity. \r\nThe Board of Regents has constitutional authority to govern, control and manage the University System of Georgia. This authority includes but is not limited to the power to designate management, the ability to significantly influence operations, the authority to control institutions' budgets, the power to determine allotments of State funds to member institutions and the authority to prescribe accounting systems and administrativ~ policies for member institutions. State University of West Georgia does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, State University of West Georgia is considered an organizational unit of the Board of Regents of the University System of Georgia reporting entity for fmancial reporting purposes because of the significance of its legal, operational, and financial relationships with the Board of Regents as defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards. \r\nFUND ACCOUNTING In order to ensure observance of limitations and restrictions placed on the use of the resources available to the University, the accounts of the University are maintained in accordance with the principles of fund accounting. This is the procedure by which resources for various purposes are classified for accounting and reporting purposes into funds that are in accordance with activities or objectives specified. Separate accounts are maintained for each fund; however, in the accompanying financial statements, funds that have similar characteristics have been combined into fund groups. Accordingly, all financial transactions have been recorded and reported by fund group. \r\nWithin each fund group, the University's fund balance allocations and designations represent those portions ofthe fund balances that are reserved, restricted and/or designated for specific future use by legal covenants, State policies, or institutional policies. \r\nFund groups ~d funds presented in the accompanying fmancial statements are as follows: \r\nCURRENT FUNDS \r\nUNRESTRICTED - The fund used to account for those economic resources over which the University retains full control to use for purposes of performing the primary functions of the University, e.g., instruction, research, public service, etc. \r\nRESTRICTED - The fund used to record externally restricted funds which may only be utilized in accordance with the purposes established by their source. Restricted current funds are recorded as revenues and expenditures when expended for current operating purposes. \r\n-7- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2001 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nFUND ACCOUNTING \r\nLOAN FUNDS \r\nThe fund used to account for resources which have been made available for financial loans to students. \r\nPLANT FUNDS \r\nUNEXPENDED - The fund used to account for financial resources utilized to acquire or to construct physical properties for institutional purposes. \r\nRENEWALS AND REPLACEMENTS - The fund used to account for resources set aside for the renewal and replacement of institutional properties. \r\nINVESTMENT IN PLANT - The fund which shows the total amounts representing the book value of all physical properties owned by the University. Net Investment in Plant is an equity account showing the total book value ofphysical properties belonging to the University less the amount of any indebtedness to others. \r\nAGENCY FUNDS \r\nThe fund used to account for resources held by the University as custodian or fiscal agent for individual students, faculty, staff members, and organizations. \r\nBASIS OF ACCOUNTING Except as otherwise disclosed in these notes, the financial statements are prepared on the modified accrual basis of accounting, which is materially the same as the accrual basis of accounting applicable to. colleges and universities prescribed in the American Institute of Certified Public Accountants' audit guide reporting model. The modified accrual basis ofaccounting is defined as that method ofaccounting in which expenditures, other than accrued interest on general long-term debt, are recorded at the time liabilities are incurred and revenues' are recorded when available and measurable to [mance expenditures of the fiscal period. \r\nContractual obligations for goods and services which have not been received at the end ofthe fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. This accounting practice causes expenditure-driven grant revenues to be accrued based, in part, on the unexecuted portion of contracts for goods and services. The recognition of encumbrances as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, but is not consistent with accounting principles .generally accepted in the United States ofAmerica, which provide for the recording ofencumbrances \r\n-8- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2001 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF ACCOUNTING as a reservation offund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with accounting principles generally accepted in the United States ofAmerica. \r\nCompensated absences represent obligations ofthe University relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulated annual leave in which payment is probable and can be reasonably estimated. The compensated absences liability of$1,854,643.00 and a related net current year expenditure of $229,653.79 have not been reported in the current funds as required by accounting principles generally accepted in the United States of America. \r\nPrior period adjustments and certain other items are reported as additions to and deductions from fund balances of current funds in the accompanying financial statements. This presentation is in accordance with accounting practices prescribed or permitted by statutes and regulations ofthe State ofGeorgia, but differs from accounting principles generally accepted in the United States ofAmerica in that immaterial adjustments should be reported as current period revenues and expenditures. The effect ofthis departure is deemed to be immaterial to the fair presentation ofthe financial statements. \r\nTo the extent that Current Funds and Plant Funds are used to finance plant assets, the amounts so provided are accounted for as expenditures. The balances shown on the Combined Balance Sheet as Net Investment in Plant reflect the accumulated expenditures made for plant facilities through Current Funds and Plant Funds and also include expenditures made for plant facilities expended by the Georgia State Financing and Investment Commission on behalfofthe University. Donated fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded values. No depreciation has been provided on physical plant and equipment. \r\nIt is the policy of State University ofWest Georgia to record assets acquired through capital leases as additions to. Investment in Plant as payments are made by the University. The liability for such leases at fiscal year-end is not recorded on the Combined Balance Sheet. This presentation differs from accounting principles generally accepted in the United States ofAmerica in that the assets.and the related liability resulting from capital leases should be recorded in Investment in Plant at the inception of the agreement at the net present value of the future minimum lease payments, not to exceed the fair value ofthe leased property. The effect ofthis departure is deemed to be immaterial to the fair presentation of the financial statements. \r\nThe Statement of Current Funds Revenues, Expenditures, and Other Changes is a statement of financial activities of current funds related to the current reporting period. It does not purport to present the results of operations or the net income or loss for the period as would a statement of . income or a statement ofrevenues and expenses. \r\n \r\n-9- \r\n \r\n STATE UNNERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2001 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nBUDGET The Board ofRegents ofthe University System ofGeorgia - Administrative Central Office receives State appropriation allotments for units of the University System of Georgia. The appropriated budget is adopted at the Board level and represents appropriations provided by the Amended Appropriations Act of 2000-200 1. The appropriated budget covers current funds and plant funds, except for Auxiliary Enterprises and Student Activities which are not subject to appropriation. The allocation ofthe appropriated budget is made to the University by the Administrative Central Office. In addition, the University receives Federal funds and other funds directly and includes these funds in the budget filed with the Administrative Central Office. \r\n \r\nA comparison of anticipated funds available and budgeted expenditures by budget unit object class indicates that the following object classes were overspent by the amounts identified below: \r\n \r\nResident Instruction Operating Expenses: .Sponsored Operations Special Funding Initiative \r\n \r\n$ 263,818,06 \r\n \r\n$ \r\n \r\n0.75 \r\n \r\nThese overexpenditures of budget constitute a violation of Board of Regents policy, but do not constitute statutory violations of budget authority. Statutory violations of budget authority are reported at the Board object class level. \r\n \r\nCASH AND CASH EQUIVALENTS Cash and Cash Equivalents consist of petty cash, demand deposits, certificates of deposit and temporary investments in authorized financial institutions, and cash management pools that have the general characteristics of demand deposit accounts. \r\n \r\nACCOUNTS RECEIVABLE Accounts receivable consist ofreimbursements due from Federal, State, local, and private grants and contracts, and other receivables disclosed from information .available. No provision has been made for an allowance for doubtful accounts within the accompanying financial statements. \r\n \r\nINVENTORIES Inventories of consumable supplies are recorded on the consumption method and are valued at cost on the Combined Balance Sheet using the weighted average method. \r\n \r\nInventories of goods for resale are valued at cost using the first-in, first-out method. \r\n \r\nPREPAID ITEMS \r\n \r\n. \r\n \r\n.Prepaid items are payments made to vendors in advance ofthe receipt ofgoods and services that will \r\n \r\nbenefit periods subsequent to the balance sheet date. \r\n \r\n- 10- \r\n \r\n STATE UNNERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2001 \r\n \r\nEXHIDIT\"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nMEMORANDUM ONLY - TOTAL COLUMNS The total columns on the financial statements are captioned \"Memorandum Only\" because they do not represent consolidated financial information and are presented only to facilitate financial analysis. The columns do not present information that reflects financial position or changes in financial position in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data. \r\nNOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS \r\nSTATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belonging to the State ofGeorgia 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 anyone or more ofthe following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59: \r\n(1) Bonds, bills, certificates of indebtedness, notes, or other direct obligations of the Unite\u003ci States or of the State of Georgia. \r\n(2) Bonds, bills, certificates of indebtedness, notes, or other obligations of the counties or municipali~iesof the State of Georgia. \r\n(3) Bonds of any public authority created by the laws ofthe State ofGeorgia, providing that the statute that created the authority authorized the use of the bonds for this purpose. \r\n(4) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia. \r\n(5) Bonds, bills, certificates of indebtedness, notes, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest, or 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(6) Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation. \r\nAs authorized in the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies which allow agencies of the State of Georgia (which includes organizational units of the Board of Regents of the University System of Georgia) the option of exempting demand deposits from the collateral requirements. \r\n- 11 - \r\nI \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2001 \r\n \r\nEXHIBIT liD\" \r\n \r\nNOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS \r\n \r\nSTATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES The treasurer ofthe Board ofRegents is responsible for all details relative to furnishing the required depository protection for all units of the University System of Georgia. \r\n \r\nCATEGORIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, cash deposits consist of all bank balances which include demand deposits and/or interest bearing accounts. The bank balances as of June 30, 2001, are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk: \r\n \r\nCategory 1 - Amounts covered by depository insurance or collateralized with securities (at fair value) held by the University or by its agent in the University's name. \r\n \r\nCategory 2 - Amounts collateralized with securities (at fair value) held by the pledging fmancial institution's trust department or agent in the University's name. \r\n \r\nCategory 3 - Amounts collateralized with securities (at fair value) held by the pledging financial institution, or by its trust department or agent but not in the University's name, and amounts uncollateralized. \r\n \r\nCash Deposits \r\n \r\nCarrying Amount \r\n \r\nBank Balances \r\n \r\nRisk Categories \r\n \r\n2 \r\n \r\n3 \r\n \r\n$ 3640518 JI $ 616250087 $ 301 00201 $ 586149886 $====ooO~O \r\n \r\nCATEGORIZATION OF INVESTMENTS At June 30, 2001, the carrying amount ofthe University's total investments was $12,604,912.98 and of this amount $1,700,864.10 was in the Board of Regents Short-Term Investment Fund and the balance of $1 0,904,048.88 was in the State Investment Pool administered by the State of Georgia Office of Treasury and Fiscal Services. Since the University did not own any specific identifiable securities in the pools, no categorization of investments was required. \r\n \r\nNOTE 3: INVESTMENT IN PLANT \r\n \r\nThe following is a summary of Investment in Plant fixed assets as of June 30, 2001: \r\n \r\nLand Buildings Improvements Other Than Buildings Equipment Library Books and Collections \r\n \r\n$ 554,184.25 81,357,388.26 6,291,038.59 21,924,243.41 11,058,741.09 \r\n \r\nTotal Investment in Plant \r\n \r\n$121.185595.60 \r\n \r\n- 12- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2001 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 4: RISK MANAGEMENT \r\nState University ofWest Georgia is a participant in the Board ofRegents ofthe University System of Georgia Health Benefits Plan, which is a self-insurance program of health and dental benefits for employees and retirees of the University System of Georgia. The University and participating employees and retirees pay premiums to the Health Benefits Plan for this health insurance coverage. The Health Benefits Plan is included in the financial statements of the Board of Regents of the University System of Georgia - Administrative Central Office. All units ofthe University System of Georgia share the risk of loss for claims of the Health Benefits Plan. The Health Benefits Plan is considered a self-sustaining risk fund that provides health coverage for its members up to a maximum lifetime benefit of $2,000,000.00 per person and dental coverage up to an annual .maximum of$l ,000.00 per person. Blue Cross Blue Shield ofGeorgia processes medical and dental claims in accordance with the Health Benefits Plan as established by the Board of Regents. As of January 1, 2001, Express Scripts, Incorporated was contracted with to process pharmacy drug claims in accordance with the Pharmacy Benefit Program portion of the Health Benefits Plan. \r\nThe Department of Administrative Services (DOAS) has the responsibility for the State of Georgia ofmaking and carrying out decisions that will minimize the adverse effects ofaccidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS processes claims for risk of loss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' indemnification. Limited amounts of commercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. The University, as an organizational unit ofthe Board of Regents of the University System of Georgia, is part of the State of Georgia reporting entity, and as such, is covered by the State of Georgia risk management program administered by DOAS. Premiums for the risk management program are charged to the various state organizations by DOAS to provide claims servicing and claims payment. \r\nA self-insured program of professional liability for its employees was established by the Board of Regents of the University System of Georgia under powers authorized by the Official Code of Georgia Annotated Section 45-9-1. The program insures the employees to the extent that they are not immune from liability against personal liability for damages arising out ofthe performance of their duties or in any way connected therewith. The program is administered by DOAS as a SelfInsurance Fund. \r\nNOTES: RETffiEMENTPLANS \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nPlan Description . State University ofWest Georgia participates in the Teachers Retirement System ofGeorgia (TRS), \r\na cost-sharing multiple-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose ofproviding retirement allowances and other benefits for teachers ofthe \r\n- 13- \r\n \r\n STATE UNNERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2001 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 5: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\nPlan Description 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 ofGeorgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\nFunding Policy Employees ofthe University who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The University makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTmstees in accordance with State statute and as advised by their independent actuary. For fiscal year 2001, the employer contribution rate was 11.29% for covered employees. In addition, the University contributed 2.33% to the TRS on behalf of employees electing to participate in the Regents Retirement Plan. 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\n2001 2000 1999 \r\n \r\n100% 100% . 100% \r\n \r\n$ 2,813,817.96 $ 2,863,932.04 $ 2,999,466.21 \r\n \r\nREGENTS RETIREMENT PLAN \r\n \r\nPlan Description The Regents Retirement Plan, a single:'employer defined contribution plan, is an optional retirement . plan established and administered by the Board of Regents of the University System of Georgia, under which it may purchase annuity contracts for the purpose of providing retirement and death benefits for eligible faculty and principal administrators. Benefits depend solely on amounts contributed to the plan plus investment earnings. Benefits are payable to participating employees or their beneficiaries in accordance with the terms of the annuity contracts. \r\n \r\nFunding Policy \r\n \r\n. \r\n \r\nMember contribution requirements are established by the Board of Trustees of the Teachers \r\n \r\nRetirement System. Employer contributions are established by statute and may be amended only by \r\n \r\nthe General Assembly ofthe State ofGeorgia. The employer contributes 8.81 % ofthe participating \r\n \r\nemployee's earnable compensation. Employees contribute 5% of their earnable compensation. \r\n \r\nAmounts attributable to all plan contributions are fully vested and non-forfeitable at all times. \r\n \r\n- 14- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2001 \r\n \r\nEXHffiIT\"D\" \r\n \r\nNOTE 5: RETffiEMENTPLANS \r\nREGENTS RETIREMENT PLAN \r\nFunding Policy The University and the covered employees made the required contributions of $1,167,782.82 (8.81%) and $663,157.56 (5%), respectively. \r\nGEORGIA DEFINED CONTRIBUTION PLAN \r\nPlan Description State University of West Georgia participates in the Georgia Defined Contribution Plan (GDCP) which is a single-employer defined contribution plan established by the General Assembly of Georgia for the purpose of providing retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees of the Employees' Retirement System of Georgia. \r\nBenefits A member may retire and elect to receive periodic payments after attainment ofage 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board ofTrustees. Ifa member has less than $ 3,500.00 credited to hislher account, the Board ofTrustees has the option ofrequiring a lump sum distribution to the member in lieu ofmaking periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to hislher account will be paid to the member's designated beneficiary. Benefit provisions are established by State statute. \r\nContributions and Vesting Member contributions are seven and one-halfpercent (7.5%) ofgross salary. There are no employer contributions. Contribution rates are established by State statute: Earnings are credited to each member's account in a manner established by the Board of Trustees. Upon termination of employment, the amount of the member's account is refundable upon request by the member. \r\nTotal contributions made by employees during fiscal year 2001 amounted to $63,382.19 which represents 7.5% of covered payroll. These contributions met the requirements of the plan. \r\nNOTE 6: LEAVE POLICIES \r\nEmployees earn annual leave ranging from one and one~quarter days to one and three-quarter days each month depending upon the employees' length of continuous State service with maximum accumulation of forty-five days. Employees are paid for unused accumulated annual leave upon retirement or termination of employment. See Note 1 - Basis of Accounting (Compensated Absences) \r\n \r\n- 15 - \r\n \r\n STATE UNNERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2001 \r\n \r\nEXHIDIT\"D\" \r\n \r\nNOTE 6: LEAVEPOUCffiS \r\nEmployees earn one day of sick leave each month with no maximum accumulation established. Unused accumulated sick leave does not vest with the employee and is forfeited upon retirement or termination of employment, except as noted in the subsequent paragraph. \r\nCertain employees who retire with a minimum ofthree months of unused sick leave are entitled to additional service credit in the Teachers Retirement System of Georgia. \r\nNOTE 7: CONTINGENCffiS \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 maybe disallowed by the grantor cannot be determined at this time although the University expects such amounts, if any, to be immaterial to its overall fmancial position. \r\nLitigation, claims and assessments filed against State University ofWest Georgia (an organizational unit ofthe Board ofRegents ofthe University System ofGeorgia), ifany, are generally considered to be actions against the State ofGeorgia. 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, 2001. \r\nNOTE 8: POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS \r\nPursuant to the general powers conferred by the Official Code ofGeorgia Annotated Section 20-331, the Board ofRegents ofthe University System ofGeorgia has established group health and life insurance programs for regular employees ofthe University System ofGeorgia. It is the policy ofthe Board ofRegents to permit employees ofthe University System ofGeorgia eligible for retirement or that become permanently and totally disabled to continue as members of the group health and life insurance programs. Employees who are eligible for retirement or disability under the criteria established by the Teachers Retirement System ofGeorgia and who have at least ten years ofservice with the University System of Georgia are eligible for these postemployment health and life insurance benefits. Organizational units of tpe Board of Regents of the University System of Georgia pay the employer portion for group insurance for affected individuals. \r\nAs ofJune 30, 2001, there were 327 employees who had retired or were disabled that were receiving these postemploymi:mt health and life insurance benefits. For the year ended June 30, 2001, State University of West Georgia recognized as incurred $809,209.97 of expenditures, which was net of $206,492.26 ofparticipant contributions. \r\n \r\n- 16- \r\n \r\n STATE UNNERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2001 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 9: ENROLLMENT \r\n \r\nThe equivalent full-time student enrollment of State University of West Georgia was as follows: \r\n \r\nRegular Term Fall Semester, 2000 Spring Semester, 2001 \r\n \r\n6,645 6,130 \r\n \r\nAverage \r\n \r\nSummer School, 2000 \r\n \r\n- 17 - \r\n \r\n  SUPPLEMENTARY INFORMAnON - 19- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA COMBINING BALANCE SHEET \r\nCURRENT FUNDS - UNRESTRICTED JUNE 30. 2001 \r\n \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable Inventories Prepaid Items Due from Other Funds \r\nTotal Assets \r\nLIABILITIES AND FUND BALANCES \r\nLiabilities Accounts Payable Salaries Payable Student Deposits Deferred Revenue Tuition and Fees Other Due to Other Funds \r\nTotal Liabilities \r\nFund Balances Unrestricted \r\nTotal Liabilities and Fund Balances \r\n \r\nRESIDENT INSTRUCTION \r\n \r\nLOTIERYFOR EDUCATION \r\n \r\n$ 1,701,593.72 $ 195,387.48 135.105.35 457,560.11 \r\n2.325.934.12 \r\n \r\n90.715.64 \r\n \r\n$ 4,815,580.78 $====9=0:!:::,7,.;,,1.5....6...4= \r\n \r\n$ 2,036.069.67 $ 114,507.30 5,715.00 \r\n2,133,078.10 124,574.00 \r\n \r\n90,185.45 \r\n \r\n$ 4,413,944.07 $ \r\n \r\n90,185.45 \r\n \r\n401.636.71 \r\n \r\n530.19 \r\n \r\n$ 4,815,580.78 $====9=0:!:::,7,.;,,15=.;;;;64;.. \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n20 - \r\n \r\n EXHIBIT\"E\" \r\n \r\nAUXILIARY ENTERPRISES \r\n \r\nSTUDENT ACTIVITIES \r\n \r\nTOTAL \r\n \r\n$ 7,463,256.82 $ 375,525.36 $ 9,631,091.54 \r\n \r\n324,665.31 \r\n \r\n80.00 \r\n \r\n520,132.79 \r\n \r\n523,981.32 \r\n \r\n659,086.67 \r\n \r\n6,567.31 \r\n \r\n.1,066.00 \r\n \r\n465,193.42 \r\n \r\n2,325,934.12 \r\n \r\n$ 8,318,470.76 $ 376,671.36 $ 13,601,438.54 \r\n \r\n$ 135,956.05 $ 9,223.58 $ 2,271,434.75 \r\n \r\n7,779.54 \r\n \r\n122,286.84 \r\n \r\n258,900.00 \r\n \r\n2,150.00 \r\n \r\n266,765.00 \r\n \r\n355,505.19 113,048.39 2,224,890.08 \r\n \r\n60,691.97 101,044.04 \r\n \r\n-2,549,275.26 237,622.39 \r\n2,325,934.12 \r\n \r\n$ 3,096,079.25 $ 173,109.59 $ 7,773,318.36 \r\n \r\n5,222,391.51 \r\n \r\n203,561.77 \r\n \r\n5,828,120.18 \r\n \r\n$ 8,318,470.76 $ 376,671.36 $ 13,601,438.54 \r\n \r\n- 21 - \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA \r\nCOMBINING STATEMENT OF CHANGES IN FUND BALANCES CURRENT FUNDS - UNRESTRICTED YEAR ENDED JUNE 30, 2001 \r\n \r\nFUND BALANCES JUNE 30, 2001 \r\n \r\n$ 401,636,71 $ ======5=30:=,.1..9= \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information, \r\n- 22/ \r\n \r\n EXHIBIT\"F\" \r\n \r\nAUXILIARY ENTERPRISES \r\n \r\nSTUDENT ACTIVITIES \r\n \r\nTOTAL \r\n \r\n$ 12,510,990.19 $ 648,552.64 $ 72,857,910.02 \r\n \r\n2,463.15 \r\n \r\n472.92 \r\n \r\n21,271.51 \r\n \r\n$ 12,513,453.34 $ 649,025.56 $ 72,879,181.53 \r\n \r\n$ 581,372.06 $ 60,083,634.80 \r\n \r\n$ 10,387,453.80 \r\n \r\n10,387,453.80 \r\n \r\n39,614.74 600.10 \r\n$ 10,387,453.80 $ 581,372.06 $ 70,511,303.44 \r\n \r\n$ -664,057.81 -707,187.66 \r\n \r\n$ -664,057.81 -707,187.66 \r\n \r\n$ -1 ,371 ,245.47 \r\n \r\n$ -1,371,245.47 \r\n \r\n$ 754,754.07 $ 67,653.50 $ 996,632.62 \r\n \r\n4,467,637.44 \r\n \r\n135,908.27 \r\n \r\n4,831,487.56 \r\n \r\n$ 5,222,391.51 $ 203,561.77 $ 5,828,120.18 \r\n \r\n- 23- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, \r\nAND OTHER CHANGES UNRESTRICTED \r\nYEAR ENDED JUNE 3D, 2001 \r\n \r\nNet Increase/(Decrease) in \r\n \r\nFund Balances \r\n \r\n$ \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n~ 24- \r\n \r\n173,695,56 $ ======5=29=,4=9= \r\n \r\n EXHIBIT\"G\" \r\n \r\nAUXILIARY ENTERPRISES \r\n \r\nSTUDENT ACTIVITIES \r\n \r\nTOTAL \r\n \r\n$ \r\n$ 11,324,366.38 1,186,623.81 \r\n \r\n$ 39,624,989.00 \r\n \r\n547,753.18 19,473,816.45 \r\n \r\n102,840.67 \r\n \r\n28,318.42 \r\n \r\n123,837.18 \r\n \r\n11,324,366.38 \r\n \r\n100,799.46 \r\n \r\n2,179,741.92 \r\n \r\n$ 12,510,990.19 $ 648,552.64 $ 72,857,910.02 \r\n \r\n$ 29,423,541.66 \r\n \r\n213,913.25 \r\n \r\n301,053.58 \r\n \r\n10,998,720.83 \r\n \r\n$ 581,372.06 \r\n \r\n4,124,476.98 \r\n \r\n7,079,574.03 \r\n \r\n5,907,037.19 \r\n \r\n2,035,317.28 \r\n \r\n$ 4,453,207.10 2,158,334.59 614,601.21 1,847,610.22 1,313,700.68 \r\n \r\n4,453,207.10 2,158,334.59 \r\n614,601.21 1,847,610.22 1,313,700.68 \r\n \r\n$ 10,387,453.80 $ 581,372.06 $ 70,471,088.60 \r\n \r\n$ -664,057.81 -707,187.66 2,463.15 $ \r\n \r\n$ 472.92 \r\n \r\n-664,057.81 -707,187.66 \r\n20,671.41 \r\n \r\n$ -1,368,782.32 $ \r\n \r\n-39,614.74 472.92 $ -1,390,188.80 \r\n \r\n$ 754,754.07 $ 67,653.50 $ 996,632.62 - 25- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET \r\nRESIDENT INSTRUCTION YEAR ENDED JUNE 30, 2001 \r\n \r\nREVENUES \r\nState Appropriations Other Revenues Retained \r\n \r\nCURRENT FUNDS UNRESTRICTED RESTRICTED \r\n \r\nPLANT FUNDS RENEWALS AND \r\nUNEXPENDED REPLACEMENTS \r\n \r\n$ 39,228,354.00 \r\n \r\n$ 2,073.000.00 \r\n \r\n20,073,378.19 $ 29,855,953.42 \r\n \r\n728,113.44 $ _ _.::::32~5:.L::,5~8~5.~89~ \r\n \r\n$ 59,301,732.19 $ 29,855,953.42 $ 2,801,113.44' $ _ _.;;;.;32;;.;;5..:.;:,5;.;:c8.;;;.;5'..;.89~ \r\n \r\nEXPENDITURES \r\n \r\nPersonal Services: Education, General and Departmental Services $ Sponsored Operations \r\nOperating Expenses: Education, General and Departmental Services Sponsored Operations \r\nCapital Outlay Special Funding Initiative \r\n \r\n43,878,510.30 $ . 1,250,077.36 \r\n \r\n13.866,845.88 1.360.801.75 \r\n \r\n28,605,876.06 $ \r\n \r\n3,520,816.10 $ \r\n \r\n1,105,801.25 \r\n \r\n$ 59.106,157.93 $ 29,855,953.42 $ 3,520,816.10 $_\"\"\"\"\",,1'..;.;10;;.;:5..:.;:,8;.;:c0..;.;1'.;;;25~ \r\n \r\nExcess of Revenues over Expenditures \r\n \r\n$ \r\n \r\n195,574.26 $-===--===0.;;;;;00;;,. $ -719,702.66 $==--,;,,;78=0:=;,2..1.;;;;5.=36=. \r\n \r\n(1) To eliminate tuition waivers not budgeted and to redassify current year transfers and prior year fund balances budgeted as revenues. \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n-26- \r\n \r\n SCHEDULE \"1\" \r\n \r\nTOTAL \r\n \r\nADJUSTMENTS (1) \r\n \r\nTOTAL (Budget Basis) \r\n \r\nBUDGET \r\n \r\nVARIANCEFAVORABLE (UNFAVORABLE) \r\n \r\n$ 41,301,354.00 50,983,030.94 $ \r\n \r\n$ 41,301,354.00 $ 41,301,354.00 $ \r\n \r\n0.00 \r\n \r\n-547,914.26 50,435,116.68 51,488,609.00 \r\n \r\n-1,053,492.32 \r\n \r\n$ 92,284,384.94 $ -547,914.26 $ 91,736,470.68 $ 92,789,963.00 $ -1,053,492.32 \r\n \r\n$ 43,878,510.30 1,250,077.36 \r\n \r\n$ 43,878,510.30 $ 44,063,749.00 $ \r\n \r\n1,250,077.36 \r\n \r\n1,822,237.00 \r\n \r\n13,866.845.88 $ 28.605.876.06 \r\n4.626.617.35 1.360,801.75 \r\n \r\n-2.035.317.28 \r\n \r\n11.831.528.60 28,605.876.06 4.626.617.35 \r\n1.360,801.75 \r\n \r\n12.114.864.00 28.342.058.00 \r\n5.086.254.00 1,360.801.00 \r\n \r\n185,238.70 572,159.64 \r\n283.335.40 -263.818.06 459.636.65 \r\n-0.75 \r\n \r\n$ 93,588,728.70 $ -2.035.317.28 $ 91.553,411.42 $ 92.769.963.00 $ 1.236.551.58 \r\n \r\n$ -1,304.343.76 $ 1,487,403.02 $ 183.059.26 \r\n \r\n$ -=-.....:1~83~.0::;;:5:.;:;9.~26~ \r\n \r\n- 27- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET \r\nLOTIERY FOR EDUCATION YEAR ENDED JUNE 30, 2001 \r\n \r\nREVENUES State Appropriations \r\nEXPENDITURES Equipment, Technology and Construction \r\nTrust Fund Special Funding Initiatives \r\nExcess of Revenues over Expenditures \r\n \r\nCURRENT FUNDS UNRESTRICTED \r\n \r\nPLANT FUNDS UNEXPENDED \r\n \r\n$ \r\n \r\n396,635.00 $ _---\"2~7..:.;;,8...;;.6..;.;..1..;;..;00~ \r\n \r\n$ \r\n \r\n276,635.00 $ \r\n \r\n27,860.50 \r\n \r\n119,469.81 \r\n \r\n$ \r\n \r\n396,104.81 $ _---\"2~7..:.;;,8...;;.60;;;.;,.5;;;.;0~ \r\n \r\n$ \r\n \r\n530.19 $====,0=.5..0. ,= \r\n \r\nSee accompanying notes and Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 28- \r\n \r\n SCHEDULE \"2\" \r\n \r\nTOTAL (Budget Basis) . \r\n \r\nBUDGET \r\n \r\nVARIANCEFAVORABLE (UNFAVORABLE) \r\n \r\n$ 424,496.00 $ 424,496.00 $ \r\n \r\n0. ..;..;...00'- \r\n \r\n$ 304,495.50 $ 304,496.00 $ \r\n \r\n119,469.81 \r\n \r\n120,000.00 \r\n \r\n$ 423,965.31 . $ 424,496.00 $ \r\n \r\n0.50 530.19 \r\n5_3_0._69_ \r\n \r\n$ = = = = 5...3.:=0.=69= \r\n \r\n$===5=3:=0;;;;;,.69:=. \r\n \r\n\\. \r\n- 29- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA CHANGES IN INVESTMENT IN PLANli YEAR ENDED JUNE 30, 2001 \r\n \r\nLand Buildings Improvements Other Than Buildings Equipment Library Books and Collections \r\n \r\nBALANCE JULY 1, 2000 \r\n \r\nCURRENT FUNDS UNRESTRICTED RESTRICTED \r\n \r\n$ \r\n \r\n554,184.25 \r\n \r\n72,159,545.80 \r\n \r\n5,963,594.62 \r\n \r\n18,666,379.67 $ 3,354,762.12 $ 204,642.02 \r\n \r\n10,395,268.28 \r\n \r\n663,472.~1 \r\n \r\n. $ 107,738,972.62 $ 4,018,234.93 $ 204,642.02 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 30 \r\n \r\n SCHEDULE \"3\" \r\n \r\nADDITIONS \r\nPLANT FUNDS RENEWALS AND \r\nUNEXPENDED REPLACEMENTS \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\nPRIVATE GIFTS \r\n \r\nDEDUCTIONS DISPOSALSI DELETIONSI ADJUSTMENTS \r\n \r\nBALANCE JUNE 30, 2001 \r\n \r\n$ \r\n \r\n554,184.25 \r\n \r\n$ 3,073,554.85 $ \r\n \r\n583,488.62 $ 5,550,948.19 \r\n \r\n$ \r\n \r\n10,149.20 \r\n \r\n81,357,388.26 \r\n \r\n286,767.97 \r\n \r\n44,288.08 \r\n \r\n3,612.08 \r\n \r\n6,291,038.59 \r\n \r\n162,425.75 \r\n \r\n333,693.81 \r\n \r\n9,407.00 $ 55,061.00 \r\n \r\n862,127.96 \r\n \r\n21,924,243.41 \r\n \r\n11,058,741.09 \r\n \r\n$ 3,522,748.57 $ \r\n \r\n961,470.51 $ 5,560,355.19 $ 55,061.00 $ 875,889.24 $ 121,185,595.60 \r\n \r\n- 31 - \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA SCHEDULE OF FUND BALANCES \r\nCURRENT FUNDS AND PLANT FUNDS JUNE 30. 2001 \r\n \r\nRESIDENT INSTRUCTION \r\n \r\nCURRENT FUNDS \r\n \r\nUNRESTRICTED \r\n \r\nLOTIERYFOR \r\n \r\nAUXILIARY \r\n \r\nEDUCATION \r\n \r\nENTERPRISES \r\n \r\nSTUDENT ACTIVITIES \r\n \r\nNET INVESTMENT IN PLANT \r\n \r\nInvestment in Plant Facilities \r\n \r\nRESTRICTED \r\n \r\nDesignated for Subsequent Years' Expenditures \r\n \r\nUNRESTRICTED \r\n \r\nDesignated \r\n \r\nFor Bus Replacement Reserve \r\n \r\nFor Intercollegiate Athletics \r\n \r\n$ \r\n \r\n35,794.99 \r\n \r\nFor Inventory Reserve \r\n \r\n$ 128,731.79 \r\n \r\n523,981.32 \r\n \r\nFor Renewals and Replacements Reserve \r\n \r\nFor Subsequent Years' Expenditures \r\n \r\n4,660,218.23 $ 203,481.77 \r\n \r\nFor Uncollectible Accounts \r\n \r\n56,772.49 \r\n \r\n2,396.97 \r\n \r\n80.00 \r\n \r\nSurplus \r\n \r\nRegular \r\n \r\n216,132.43 \r\n \r\nLottery for Education \r\n \r\n$ \r\n \r\n530.19 \r\n \r\n$ 401,636.71 $ \r\n \r\n530.19 $ 5,222,391.51 $ 203,561.77 \r\n \r\n$ 401,636.71 $=====5=30=.=19= $ 5,222,391.51 $ 203,561.77 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 32- \r\n \r\n SCHEDULE \"4\" \r\n \r\nRESTRICTED \r\n \r\nPLANT FUNDS \r\n \r\nUNEXPENDED \r\n \r\nLOTIERY FOR RENEWALS AND \r\n \r\nREGULAR \r\n \r\nEDUCATION REPLACEMENTS \r\n \r\nINVESTMENT IN PLANT \r\n \r\n. TOTAL \r\n \r\n$ 121,185,595.60 $ 121,185,595.60 \r\n \r\n$ 712,403.82 \r\n \r\n$ _--:.7..:,12:1,:..;.40\"\"3:.;.:.8,,,,2:... \r\n \r\n$ \r\n \r\n239,279.58 \r\n \r\n1,129,721.57 \r\n \r\n$ \r\n \r\n239,279.58 \r\n \r\n35,794.99 \r\n \r\n652,713.11 \r\n \r\n1,129,721.57 \r\n \r\n4,863,700.00 \r\n \r\n59,249.46 \r\n \r\n$ 1,246.28 ____ $ \r\n$ 1,246.28 $ \r\n \r\n- = 0..:.;50~ 0.50 $_~1'L::.36:::.:9::.t.:,O:::.::0:...:.;1.:...:;15:::... \r\n \r\n217,378.71 530.69 \r\n$ 7,198,368.11 \r\n \r\n$ 712,403.82 $ 1,246.28.$ \r\n \r\n0.50 $ \r\n \r\n1,369,001.15 $ 121,185,595.60 $ 129,096,367.53 \r\n \r\n- 33- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA RECONCILIATION OF SALARIES AND TRAVEL \r\n,YEAR ENDED JUNE 30, 2001 \r\n \r\nSCHEDULE \"5\" \r\n \r\nTotals per Annual Supplement \r\nPrepaid Salaries June 30, 2001 June 30, 2000 \r\nAccruals June 30, 2001 \r\nUnreconciled Variance \r\n \r\nSALARIES $ 39,969,929.15 $ \r\n \r\nTRAVEL 712,864.06 \r\n \r\n-282,108.35 205,298.36 \r\n \r\n122,286.84 -1,055,71 \r\n \r\n$ 40,014,350,29 $===71;,;;;2::,8=64;;;,;,,;.;06:;,. \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information, \r\n- 34- \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bw43-b1999-h2000","title":"State University of West Georgia, Carrollton, Georgia, report on the review of the financial statements for the fiscal year ended June 30, 2000","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Carroll County, Carrollton, 33.58011, -85.07661"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["1999/2000"],"dcterms_description":["June 30, 2000-fiscal year ended June 30, 2004.","Title fluctuates: Audits conducted \"in accordance with generally accepted auditing standards\" are issued as: Audit report; reviews that are \"substantially less in scope than an audit in accordance with generally accepted auditing standards\" are issued as: Review.","Title from cover.","Fiscal year ended June 30, 2004, issued in 2005? (online surrogate) (Georgia Government Publications database, viewed April 20, 2020)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, GA : Georgia. Dept. of Audits and Accounts, 2000"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["State University of West Georgia--Appropriations and expenditures--Periodicals.","Education, Higher--Georgia--Auditing--Periodicals.","Education, Higher--Georgia--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["State University of West Georgia, Carrollton, Georgia, report on the review of the financial statements for the fiscal year ended June 30, 2000"],"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-bw43-b1999-h2000"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bw43-b1999-h2000"],"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":" STATE UNNERSITY OF WEST GEORGIA - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINA.NCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \r\n \r\nEXHIBITS \r\n \r\nFINANCIAL STATEMENTS \r\n \r\nA COMBINED BALANCE SHEET \r\n \r\nALL FUND GROUPS \r\n \r\n2 \r\n \r\nB COMBINED STATEMENT OF CHANGES IN FUND BALANCES \r\n \r\nALL FUND GROUPS \r\n \r\n4 \r\n \r\nC STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, \r\n \r\nAND OTHER CHANGES \r\n \r\n7 \r\n \r\nD NOTES TO THE FINANCIAL STATEMENTS \r\n \r\n8 \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\nE COMBINING BALANCE SHEET \r\n \r\nCURRENT FUNDS - UNRESTRICTED \r\n \r\n20 \r\n \r\nF COMBINING STATEMENT OF CHANGES IN FUND BALANCES \r\n \r\nCURRENT FUNDS - UNRESTRICTED \r\n \r\n22 \r\n \r\nG COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, \r\n \r\nAND OTHER CHANGES \r\n \r\nUNRESTRICTED \r\n \r\n24 \r\n \r\nSCHEDULES \r\n \r\nSCHEDULES OF REVENUES AND EXPENDITURES COMPARED TO BUDGET \r\n \r\n1 \r\n \r\nRESIDENT INSTRUCTION \r\n \r\n26 \r\n \r\n2 \r\n \r\nLOTTERY FOR EDUCATION \r\n \r\n28 \r\n \r\n3 CHANGES IN INVESTMENT IN PLANT \r\n \r\n30 \r\n \r\n4 SCHEDULE OF FUND BALANCES \r\n \r\nCURRENT FUNDS AND PLANT FUNDS \r\n \r\n32 \r\n \r\n5 RECONCILIATION OF SALARIES AND TRAVEL \r\n \r\n34 \r\n \r\nSECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \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\n254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 \r\nSeptember 8, 2000 \r\n \r\nHonorable Roy E. Barnes, Governor Members of the General Assembly of Georgia Members of the Board of Regents of the University System of Georgia \r\nand Honorable Beheruz N. Sethna, President State University of West Georgia \r\nINDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \r\nLadies and Gentlemen: \r\nWe have reviewed the accompanying financial statements (Exhibits A through D) ofState University of West Georgia as of and for the year ended June 30, 2000, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in these financial statements is the representation of the management of State University of West Georgia. \r\nA review consists principally ofinquiries ofUniversity personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. \r\nBased on our review, with the exception ofthe matters described in the fourth and fifth paragraphs, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with generally accepted accounting principles. \r\nAs disclosed in Note 1 to the financial statements, generally accepted accounting principles require encumbrances to be recorded as a reservation offund balance. However, in accordance with Georgia Law and State budgetary policy, management recorded encumbrances as expenditures and liabilities. The effects of this departure from generally accepted accounting principles on the financial statements were not reasonably determinable. \r\n \r\nOOARL-67 \r\n \r\n As disclosed in Note 1 to the financial statements, the University did not report the liability and related expenditure for compensated absences in the current funds as required by generally accepted accounting principles. If compensated absences were reported, liabilities would be increased and fund balance would be decreased by $1,624,989.21 as of June 30, 2000, and the net change in fund balance for the year ended June 30, 2000, would be increased by $61,563.59. \r\nOur review was made for the purpose of expressing limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with generally accepted accounting principles. The accompanying combining statements (Exhibits E through G) and the financial schedules (Schedules 1 through 5) are presented for supplementary analysis purposes. Such information has been subjected to the inquiries and analytical procedures applied in the review ofthe financial statements, and except for the effects ofthe matters discussed in the fourth and fifth paragraphs, we are not aware of any material modifications which should be made thereto. \r\nRespectfully submitted, \r\n \r\nRWH:gp OOARL-67 \r\n \r\nRu sell W. Hinton State Auditor \r\n \r\n FINANCIAL STATEMENTS - 1- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA COMBINED BALANCE SHEET ALL FUND GROUPS JUNE 30, 2000 \r\n \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable Inventories Prepaid Items Investment in Plant \r\n \r\nCURRENT FUNDS UNRESTRICTED RESTRICTED \r\n \r\nLOAN FUNDS \r\n \r\n$ 7,538,060.65 $ 483,279.88 $ 264,248.94 \r\n \r\n315,166.61 \r\n \r\n200,334.95 \r\n \r\n1,807,624.72 \r\n \r\n642,811.86 \r\n \r\n417,067.53 \r\n \r\nTotal Assets \r\n \r\n$ 8,913,106.65 $ 683,614.83 $ 2,071,873.66 \r\n \r\nLIABILITIES AND FUND BALANCES \r\nLiabilities Accounts Payable Student Deposits Deferred Revenue Tuition and Fees Other Deposits Held in Custody for Others \r\nTotal Liabilities \r\nFund Balances U. S. Government Grants Refundable Institutional Loans - Restricted Net Investment in Plant Restricted Unrestricted \r\nTotal Fund Balances \r\n \r\n$ 1,192,053.91 $ \r\n279,000.00 \r\n2,316,351.50 294,213.68 \r\n \r\n95,915.48 \r\n \r\n$ 4,081,619.09 $ \r\n \r\n95,915.48 \r\n \r\n$ 1,857,879.56 \r\n213,994.10 \r\n$ 587,699.35 $ 4,831 ,487.56 \r\n$ 4,831,487.56 $ 587,699.35 $ 2,071,873.66 \r\n \r\nTotal Liabilities and Fund Balances \r\n \r\n$ 8,913,106.65 $ 683,614.83 $ 2,071,873.66 \r\n \r\nSee Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\nThe notes to the financial statements are an integral part of this statement. \r\n-2- \r\n \r\n EXHIBIT \"A\" \r\n \r\nUNEXPENDED \r\n \r\nPLANT FUNDS RENEWALS AND REPLACEMENTS \r\n \r\nINVESTMENT IN PLANT \r\n \r\nAGENCY FUNDS \r\n \r\nTOTAL (Memorandum \r\nOnly) \r\n \r\n$ 2,279,025.95 $ 1,548,832.30 \r\n \r\n$ 1,136,530.48 $ 13,249,978.20 \r\n \r\n2,323,126.28 \r\n \r\n642,811.86 \r\n \r\n417,067.53 \r\n \r\n_ _ _ _ _ _ $ 107,738,972.62 \r\n \r\n107,738,972.62 \r\n \r\n$ 2,279,025.95 $ 1,548,832.30 $ 107,738,972.62 $ 1.136,530.48 $ 124,371,956.49 \r\n \r\n$ 2,275,237.55 $ \r\n \r\n63,673.60 \r\n \r\n$ 2,275,237.55 $ \r\n \r\n63,673.60 \r\n \r\n$ 439,879.29 $ \r\n696,651.19 $ 1,136,530.48 $ \r\n \r\n4,066,759.83 279,000.00 \r\n2,316,351.50 294,213.68 696,651.19 \r\n7,652,976.20 \r\n \r\n$ 107,738,972.62 \r\n \r\n$ \r\n \r\n3,788.40 $ 1,485,158.70 \r\n \r\n$ \r\n \r\n3,788.40 $ 1,485,158.70 $ 107,738,972.62 \r\n \r\n$ 1,857,879.56 213,994.10 \r\n107,738,972.62 587,699.35 \r\n6,320,434.66 \r\n$ 116,718,980.29 \r\n \r\n$ 2,279,025.95 $ 1,548,832.30 $ 107,738,972.62 $ 1.136,530.48 $ 124,371,956.49 \r\n \r\n-3- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA COMBINED STATEMENT OF CHANGES IN FUND BALANCES \r\nALL FUND GROUPS YEAR ENDED JUNE 30. 2000 \r\n \r\nREVENUES AND OTHER ADDITIONS \r\nUnrestricted Current Fund Revenues State Appropriations \r\nRegular Lottery Proceeds Federal Grants and Contracts State Grants and Contracts Private Gifts, Grants, and Contracts Investment Income Interest on Loans Receivable Adjustments Prior Years' Expenditures/Accounts Payable Expended for Plant Facilities Current Funds Plant Funds \r\nUnexpended Renewals and Replacements Georgia State Financing and Investment Commission \r\nTotal Revenues and Other Additions \r\nEXPENDITURES AND OTHER DEDUCTIONS \r\nEducational and General Expenditures Auxiliary Enterprises Expenditures Indirect Costs Recovered Refunded to Grantors Remittances to the Board of Regents of the \r\nUniversity System of Georgia Prior Year's Unrestricted Fund Balance (Surplus) \r\nAdjustments Prior Years' Revenues/Accounts Receivable \r\nLoans Assigned to Federal Government Loan Cancellations and Write-Ofts Administrative and Collection Costs Expended for Plant Facilities \r\nCapitalized Noncapitalized Disposals/Deletions/Adjustments \r\nTotal Expenditures and Other Deductions \r\nTRANSFERS BETWEEN FUNDS \r\nNonmandatory Renewals and Replacements Capital Projects \r\nTotal Transfers Between Funds \r\nNet Increase/(Decrease) for the Year \r\nFUND BALANCES JULY 1. 1999 \r\n \r\nCURRENT FUNDS UNRESTRICTED RESTRICTED \r\n \r\nLOAN FUNDS \r\n \r\n$ 68,611,313.99 \r\n \r\n$ 18,135,683.21 $ 6,878,500.74 1,165,391.93 \r\n23,561.24 \r\n \r\n39,817.00 \r\n3,059.50 12,331.30 42,681.92 \r\n \r\n$ 68,634,875.23 $ 26,179,575.88 $ \r\n \r\n97,889.72 \r\n \r\n$ 56,730,253.91 $ 25,910,083.52 9,676,544.06 99,232.91 47,625.00 \r\n75,068.25 \r\n884.35 $ \r\n \r\n900.00 44,553.02 \r\n1,080.01 \r\n \r\n$ 66,482,750.57 $ 26,056,941.43 $ \r\n \r\n46,533.03 \r\n \r\n$ \r\n \r\n-645,919.97 \r\n \r\n-696,209.77 \r\n \r\n$ -1,342,129.74 \r\n \r\n$ \r\n \r\n809,994.92 $ \r\n \r\n4,021 ,492.64 \r\n \r\n122,634.45 $ \r\n \r\n51,356.69 \r\n \r\n465,064.90 \r\n \r\n2,020,516.97 \r\n \r\nFUND BALANCES JUNE 30. 2000 \r\n \r\n$ 4,831,487.56 $ \r\n \r\nSee Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\nThe notes to the financial statements are an integral part of this statement. \r\n \r\n-4- \r\n \r\n587,699.35 $ 2,071,873.66 \r\n \r\n EXHIBIT \"B\" \r\n \r\nUNEXPENDED \r\n \r\nPLANT FUNDS RENEWALS AND REPLACEMENTS \r\n \r\nINVESTMENT IN PLANT \r\n \r\nTOTAL (Memorandum \r\nOnly) \r\n \r\n$ 1,590,000.00 61,288.00 344,182.22 $ 11,606.20 \r\n$ 2,007,076.42 $ \r\n \r\n$ 68,611,313.99 \r\n \r\n$ 308,044.40 \r\n \r\n73,893.58 \r\n \r\n1,590,000.00 61,288.00 \r\n18,175,500.21 6,878,500.74 1,242,345.01 \r\n664,557.92 42,681.92 \r\n \r\n35,167.44 \r\n \r\n2,486,206.69 \r\n \r\n2,486,206.69 \r\n \r\n2,468,464.53 544,506.39 \r\n11,323,581.41 \r\n \r\n2,468,464.53 544,506.39 \r\n11,323,581.41 \r\n \r\n308,044.40 $ 16,896,652.60 $ 114,124,114.25 \r\n \r\n$ \r\n \r\n1,530.92 \r\n \r\n2,468,464.53 $ 231,033.26 \r\n$ 2,701,028.71 $ \r\n \r\n$ 82,640,337.43 9,676,544.06 99,232.91 47,625.00 \r\n \r\n544,506.39 23,738.90 $ \r\n568,245.29 $ \r\n \r\n76,599.17 \r\n \r\n884.35 900.00 44,553.02 1,080.01 \r\n \r\n1,433,086.36 \r\n \r\n3,012,970.92 254,772.16 \r\n1,433,086.36 \r\n \r\n1,433,086.36 $ 97,288,585.39 \r\n \r\n$ \r\n \r\n645,919.97 \r\n \r\n$ \r\n \r\n696,209.77 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n696,209.77 $ \r\n \r\n645,919.97 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n2,257.48 $ \r\n \r\n385,719.08 $ 15,463,566.24 $ 16,835,528.86 \r\n \r\n1,530.92 \r\n \r\n1,099,439.62 \r\n \r\n92,275,406.38 \r\n \r\n99,883,451.43 \r\n \r\n$ \r\n \r\n3,788.40 $ 1,485,158.70 $ 107,738,972.62 $ 116,718,980.29 \r\n \r\n-5- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, \r\nAND OTHER CHANGES YEAR ENDED JUNE 30, 2000 \r\n \r\nEXHIBIT 'C\" \r\n \r\nUNRESTRICTED RESTRICTED \r\n \r\nTOTAL (Memorandum \r\nOnly) \r\n \r\nREVENUES \r\n \r\nState Appropriations Tuition and Fees Federal Grants and Contracts State Grants and Contracts Private Gifts, Grants, and Contracts Sales and Services of Educational Activities Sales and Services of Auxiliary Enterprises Other Sources \r\n \r\n$ 38,236,201,00 \r\n \r\n$ 38,236,201.00 \r\n \r\n17,150,167.80 \r\n \r\n17,150,167,80 \r\n \r\n80,114.53 $ 18,056,826.72 \r\n \r\n18,136,941.25 \r\n \r\n448.96 \r\n \r\n6,977,781.29 \r\n \r\n6,978,230.25 \r\n \r\n18,669.42 \r\n \r\n875,475.51 \r\n \r\n894,144.93 \r\n \r\n118,859.54 \r\n \r\n118,859.54 \r\n \r\n10,968,619.44 \r\n \r\n10,968,619,44 \r\n \r\n2,038,233.30 \r\n \r\n2,038,233.30 \r\n \r\nTotal Revenues \r\n \r\n$ 68,611,313.99 $ 25,910,083.52 $ 94,521,397.51 \r\n \r\nEXPENDITURES \r\n \r\nEducational and General Instruction Research Public Service Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships \r\nAuxiliary Enterprises Student Housing Food Services Stores and Shops Intercollegiate Athletics Other Service Units \r\n \r\n$ 28,126,821.25 $ 1,093,174,11 $ 29,219,995.36 \r\n \r\n210,122.58 \r\n \r\n445,968.08 \r\n \r\n656,090.66 \r\n \r\n291,433.54 \r\n \r\n110,169.34 \r\n \r\n401,602.88 \r\n \r\n9,320,710.42 \r\n \r\n94,817.81 \r\n \r\n9,415,528.23 \r\n \r\n4,203,389,11 \r\n \r\n35,388.44 \r\n \r\n4,238,777,55 \r\n \r\n8,166,687.78 \r\n \r\n220,863.95 \r\n \r\n8,387,551.73 \r\n \r\n4,678,336.23 \r\n \r\n4,678,336.23 \r\n \r\n1,732,753.00 \r\n \r\n23,909,701.79 \r\n \r\n25,642,454.79 \r\n \r\n4,094,223.16 2,088,741.06 \r\n621,502.92 1,723,115.64 1,148,961.28 \r\n \r\n4,094,223,16 2,088,741.06 \r\n621,502,92 1,723,115.64 1,148,961.28 \r\n \r\nTotal Expenditures \r\n \r\n$ 66,406,797.97 $ 25,910,083.52 $ 92,316,881.49 \r\n \r\nOTHER TRANSFERS AND ADDITIONS/(DEDUCTIONS) \r\n \r\nExcess of Restricted Receipts over Transfers to Revenues \r\nRefunded to Grantors Transfers for Renewals and Replacements Transfers for Capital Projects Prior Period Adjustments (Net) Remittances to the Board of Regents \r\nof the University System of Georgia Prior Year's Unrestricted Fund Balance (SurplUS) \r\n \r\n$ \r\n \r\n170,259.45 $ \r\n \r\n170,259.45 \r\n \r\n-47,625.00 \r\n \r\n-47,625.00 \r\n \r\n$ \r\n \r\n-645,919.97 \r\n \r\n-645,919.97 \r\n \r\n-696,209.77 \r\n \r\n-696,209,77 \r\n \r\n22,676.89 \r\n \r\n22,676,89 \r\n \r\n-75,068.25 \r\n \r\n-75,068.25 \r\n \r\nTotal Other Transfers and Additions/(Deductions) $ -1,394,521.10 $ \r\n \r\n122,634.45 $ -1,271,886.65 \r\n \r\nNet Increase/(Decrease) in Fund Balances \r\n \r\n$ \r\n \r\n809,994.92 $ \r\n \r\n122,634.45 $ ====93=o2;,6=2,;;,;9.~37== \r\n \r\nSee Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\nThe notes to the financial statements are an integral part of this statement. -7- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2000 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nREPORTING ENTITY State University of West Georgia is one of thirty-four (34) State supported member institutions of higher education in Georgia which comprise the University System of Georgia, an organizational unit ofthe State of Georgia. The accompanying financial statements reflect the operations ofState University of West Georgia as a separate reporting entity. \r\nThe Board of Regents has constitutional authority to govern, control and manage the University System ofGeorgia. This authority includes but is not limited to the power to designate management, the ability to significantly influence operations, the authority to control institutions' budgets, the power to determine allotments of State funds to member institutions and the authority to prescribe accounting systems and administrative policies for member institutions. State University of West Georgia does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, State University ofWest Georgia is considered an organizational unit of the Board of Regents of the University System of Georgia reporting entity for financial reporting purposes because of the significance of its legal, operational, and financial relationships with the Board of Regents as defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards. \r\nFUND ACCOUNTING In order to ensure observance of limitations and restrictions placed on the use of the resources available to the University, the accounts of the University are maintained in accordance with the principles of fund accounting. This is the procedure by which resources for various purposes are classified for accounting and reporting purposes into funds that are in accordance with activities or obj ectives spedfied. Separate accounts are maintained for each fund; however, in the accompanying financial statements, funds that have similar characteristics have been combined into fund groups. Accordingly, all financial transactions have been recorded and reported by fund group. \r\nWithin each fund group, the University's fund balance allocations and designations represent those portions ofthe fund balances that are reserved, restricted and/or designated for specific future use by legal covenants, State policies, or institutional policies. \r\nFund groups and funds presented in the accompanying financial statements are as follows: \r\nCURRENT FUNDS \r\nUNRESTRICTED - The fund used to account for those economic resources over which the University retains full control to use for purposes of performing the primary functions of the University, e.g., instruction, research, public service, etc. \r\nRESTRICTED - The fund used to record externally restricted funds which may only be utilized in accordance with the purposes established by their source. Restricted current funds are recorded as revenues and expenditures when expended for current operating purposes. \r\n-8- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA \r\nNOTESTOTHEFWANC~STATEMENTS \r\nJUNE 30, 2000 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTWG POLICIES \r\nFUND ACCOUNTING \r\nLOAN FUNDS \r\nThe fund used to account for resources which have been made available for financial loans to students. \r\nPLANT FUNDS \r\nUNEXPENDED - The fund used to account for financial resources utilized to acquire or to construct physical properties for institutional purposes. \r\nRENEWALS AND REPLACEMENTS - The fund used to account for resources set aside for the renewal and replacement of institutional properties. \r\nINVESTMENT W PLANT - The fund which shows the total amounts representing the book value of all physical properties owned by the University. Net Investment in Plant is an equity account showing the total book value ofphysical properties belonging to the University less the amount of any indebtedness to others. \r\nAGENCY FUNDS \r\nThe fund used to account for resources held by the University as custodian or fiscal agent for individual students, faculty, staff members, and organizations. \r\nBASIS OF ACCOUNTING Except as otherwise disclosed in these notes, the financial statements are prepared on the modified accrual basis of accounting, which is materially the same as the accrual basis of accounting applicable to colleges and universities prescribed in the American Institute of Certified Public Accountants' audit guide reporting model. The modified accrual basis ofaccounting is defined as that method ofaccounting in which expenditures, other than accrued interest on general long-term debt, are recorded at the time liabilities are incurred and revenues are recorded when available and measurable to finance expenditures of the fiscal period. \r\nContractual obligations for goods and services which have not been received at the end ofthe fiscal year are recognized as expenditures and liabilities in the accompanying fmancial statements. This accounting practice causes expenditure-driven grant revenues to be accrued based, in part, on the unexecuted portion of contracts for goods and services. The recognition of encumbrances as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, but is not consistent with generally accepted accounting principles, which provide for the recording of encumbrances as a reservation of fund \r\n- 9- \r\n \r\n STATE UNNERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2000 \r\n \r\nEXHIBIT liD\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF ACCOUNTING balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles. \r\nCompensated absences represent obligations ofthe University relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulated annual leave in which payment is probable and can be reasonably estimated. The compensated absences liability of $1,624,989.21 and a related net reduction of current year expenditures of $61,563.59 have not been reported in the current funds as required by generally accepted accounting principles. \r\nPrior period adjustments and certain other items are reported as additions to and deductions from fund balances of current funds in the accompanying financial statements. This presentation is in accordance with accounting practices prescribed or permitted by statutes and regulations ofthe State ofGeorgia, but differs from generally accepted accounting principles in that immaterial adjustments should be reported as current period revenues and expenditures. The effect of this departure is deemed to be immaterial to the fair presentation of the financial statements. \r\nTo the extent that Current Funds and Plant Funds are used to finance plant assets, the amounts so provided are accounted for as expenditures. The balances shown on the Combined Balance Sheet as Net Investment in Plant reflect the accumulated expenditures made for plant facilities through Current Funds and Plant Funds and also include expenditures made for plant facilities expended by the Georgia State Financing and Investment Commission on behalfofthe University. Donated fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded values. No depreciation has been provided on physical plant and equipment. \r\nIt is the policy of State University ofWest Georgia to record assets acquired through capital leases as additions to Investment in Plant as payments are made by the University. The liability for such leases at fiscal year-end is not recorded on the Combined Balance Sheet. This presentation differs from generally accepted accounting principles in that the assets and the related liability resulting from capital leases should be recorded in Investment in Plant at the inception ofthe agreement at the net present value of the future minimum lease payments, not to exceed the fair value of the leased property. The effect of this departure is deemed to be immaterial to the fair presentation of the financial statements. \r\nThe Statement of Current Funds Revenues, Expenditures, and Other Changes is a statement of financial activities of current funds related to the current reporting period. It does not purport to present the results of operations or the net income or loss for the period as would a statement of income or a statement of revenues and expenses. \r\n \r\n- 10- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2000 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nBUDGET The Board ofRegents ofthe University System ofGeorgia - Administrative Central Office receives State appropriation allotments for units of the University System of Georgia. The appropriated budget is adopted at the Board level and represents appropriations provided by the Amended Appropriations Act of 1999-2000. The appropriated budget covers current funds and plant funds, except for Auxiliary Enterprises and Student Activities which are not subject to appropriation. The allocation ofthe appropriated budget is made to the University by the Administrative Central Office. In addition, the University receives Federal funds and other funds directly and includes these funds in the budget filed with the Administrative Central Office. \r\n \r\nA comparison of anticipated funds available and budgeted expenditures by budget unit object class indicates that the following object classes were overspent by the amounts identified below: \r\n \r\nResident Instruction Capital Outlay \r\n \r\n$ 1.616.455.08 \r\n \r\nThis overexpenditure of budget constitutes a violation of Board of Regents policy, but does not constitute a statutory violation of budget authority. Statutory violations of budget authority are reported at the Board object class level. \r\n \r\nCASH AND CASH EQUIVALENTS Cash and Cash Equivalents consist of petty cash, demand deposits, certificates of deposit and temporary investments in authorized financial institutions, and cash management pools that have the general characteristics of demand deposit accounts. \r\n \r\nACCOUNTS RECEIVABLE Accounts receivable consist ofreimbursements due from Federal, State, local, and private grants and contracts, and other receivables disclosed from information available. No provision has been made for an allowance for doubtful accounts within the accompanying financial statements. \r\n \r\nINVENTORIES Inventories ofconsumable supplies are recorded on the consumption method and are valued at cost on the Combined Balance Sheet using the weighted average method. \r\n \r\nInventories of goods for resale are valued at cost using the first-in, first-out method. \r\n \r\nPREPAID ITEMS Prepaid items are payments made to vendors in advance ofthe receipt ofgoods and services that will \r\nbenefit periods subsequent to the balance sheet date. \r\n \r\n- 11 - \r\n \r\n STATE UNNERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2000 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nMEMORANDUM ONLY - TOTAL COLUMNS The total columns on the financial statements are captioned \"Memorandum Only\" because they do not represent consolidated financial information and are presented only to facilitate financial analysis. The columns do not present information that reflects financial position or changes in financial position in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data. \r\nNOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS \r\nSTATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belonging to the State ofGeorgia 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 anyone or more ofthe following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59: . \r\n(1) Bonds, bills, certificates of indebtedness, notes, or other direct obligations ofthe United States or of the State of Georgia. \r\n(2) Bonds, bills, certificates of indebtedness, notes, or other obligations of the counties or municipalities of the State of Georgia. \r\n(3) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose. \r\n(4) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia. \r\n(5) Bonds, bills, certificates of indebtedness, notes, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest, or 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(6) Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation. \r\nAs authorized in the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies which allow agencies of the State of Georgia (which inCludes organizational units of the Board of Regents of the University System of Georgia) the option of exempting demand deposits from the collateral requirements. \r\n- 12- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2000 \r\n \r\nEXHlBIT \"D\" \r\n \r\nNOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS \r\n \r\nSTATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES The treasurer ofthe Board ofRegents is responsible for all details relative to furnishing the required depository protection for all units of the University System of Georgia. \r\n \r\nCATEGORIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, cash deposits consist of all bank balances which include demand deposits and/or interest bearing accounts. The bank balances as of June 30, 2000, are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk: \r\n \r\nCategory 1 - Amounts covered by depository insurance or collateralized with securities (at fair value) held by the University or by its agent in the University's name. \r\n \r\nCategory 2 - Amounts collateralized with securities (at fair value) held by the pledging financial institution's trust department or agent in the University's name. \r\n \r\nCategory 3 - Amounts collateralized with securities (at fair value) held by the pledging financial institution, or by its trust department or agent but not in the University's name, and amounts uncollateralized. \r\n \r\nCash Deposits \r\n \r\nCarrying Amount \r\n \r\nBank Balances \r\n \r\nRisk Categories \r\n \r\n2 \r\n \r\n3 \r\n \r\n$ 2,95441104 $ 5191977.25 $ 301 018.50 $==..,;Q!6!!'O~O $ 4.89095875 \r\n \r\nCATEGORIZATION OF INVESTMENTS At June 30, 2000, the carrying amount ofthe University's total investments was $10,275,967.16 and of this amount $1,595,308.44 was in the Board of Regents Short-Term Investment Fund and the balance of $8,680,658.72 was in the State Investment Pool administered by the State of Georgia Office of Treasury and Fiscal Services. Since the University did not own any specific identifiable securities in the pools, no categorization of investments was required. \r\n.) \r\nNOTE 3: INVESTMENT IN PLANT \r\n \r\nThe following is a summary of Investment in Plant fixed assets as of June 30,2000: \r\n \r\nLand Buildings Improvements Other Than Buildings Equipment Library Books and Collections \r\n \r\n$ 554,184.25 72,159,545.80 5,963,594.62 18,666,379.67 10,395,268.28 \r\n \r\nTotal Investment in Plant \r\n \r\n$107.738.972.62 \r\n \r\n- 13- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2000 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 4: RISK MANAGEMENT \r\nState University ofWest Georgia is a participant in the Board ofRegents ofthe University System of Georgia Health Benefits Plan, which is a self-insurance program of health and dental benefits for employees and retirees of the University System of Georgia. The University and participating employees and retirees pay premiums to the Health Benefits Plan for this health insurance coverage. The Health Benefits Plan is included in the financial statements of the Board of Regents of the University System ofGeorgia - Administrative Central Office. All units ofthe University System of Georgia share the risk of loss for claims of the Health Benefits Plan. The Health Benefits Plan is considered a self-sustaining risk fund that provides health coverage for its members up to a maximum lifetime benefit of $1,000,000.00 per person and dental coverage up to an annual maximum of $1,000.00 per person. The Board of Regents has contracted with Blue Cross Blue Shield of Georgia to process claims in accordance with the Health Benefits Plan as established by the Board of Regents. \r\nThe Department ofAdministrative Services (DOAS) has the responsibility for the State of Georgia ofmaking and carrying out decisions that will minimize the adverse effects ofaccidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS processes claims for risk of loss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' indemnification. Limited amounts of commercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. The University, as an organizational unit ofthe Board of Regents of the University System of Georgia, is part of the State of Georgia reporting entity, and as such, is covered by the State of Georgia risk management program administered by DOAS. Premiums for the risk management program are charged to the various state organizations by DOAS to provide claims servicing and claims payment. \r\nA self-insured program of professional liability for its employees was established by the Board of Regents of the University System of Georgia under powers authorized by the Official Code of Georgia Annotated Section 45-9-1. The program insures the employees to the extent that they are not immune from liability against personal liability for damages arising out of the performance of their duties or in any way connected therewith. The program is administered by DOAS as a SelfInsurance Fund. \r\nNOTES: RETIREMENTPLANS \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nPlan Description State University ofWest Georgia participates in the Teachers Retirement System ofGeorgia (TRS), a cost-sharing multiple-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose ofproviding retirement allowances and other benefits for teachers ofthe State of Georgia. TRS provides service retirement, disability retirement, and survivor's benefits for \r\n- 14- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2000 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 5: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\nPlan Description 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 Georgia Department of Audits and Accounts. \r\n \r\nFunding Policy Employees ofthe University who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The University makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. For fiscal year 2000, the employer contribution rate was 11.29% for covered employees. In addition, the University contributed 2.35% to the TRS on behalf of employees electing to participate in the Regents Retirement Plan. 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\n2000 1999 1998 \r\n \r\n100% 100% 100% \r\n \r\n$ 2,863,932.04 $ 2,999,466.21 $ 2,862,394.62 \r\n \r\nREGENTS RETIREMENT PLAN \r\n \r\nPlan Description The Regents Retirement Plan, a single-employer defined contribution plan, is an optional retirement plan established and administered by the Board of Regents of the University System of Georgia, under which it may purchase annuity contracts for the purpose of providing retirement and death benefits for eligible faculty and principal administrators. Benefits depend solely on amounts contributed to the plan plus investment earnings. Benefits are payable to participating employees or their beneficiaries in accordance with the terms of the annuity contracts. \r\n \r\nFunding Policy Member contribution requirements are established by the Board of Trustees of the Teachers Retirement System. Employer contributions are established by statute and may be amended only by the General Assembly ofthe State ofGeorgia. The employer contributes 8.79% ofthe participating employee's earnable compensation. Employees contribute 5% of their earnable compensation. Amounts attributable to all plan contributions are fully vested and non-forfeitable at all times. \r\n \r\nThe University and the covered employees made the required contributions of $1,097,810.32 (8.79%) and $624,454.37 (5%), respectively. \r\n \r\n- 15 - \r\n \r\n STATE UNNERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2000 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 5: RETIREMENT PLANS \r\nGEORGIA DEFINED CONTRIBUTION PLAN \r\nPlan Description State University of West Georgia participates in the Georgia Defined Contribution Plan (GDCP) which is a single-employer defined contribution plan established by the General Assembly of Georgia for the purpose of providing retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees of the Employees' Retirement System of Georgia. \r\n. Benefits A member may retire and elect to receive periodic payments after attainment ofage 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board ofTrustees. Ifa member has less than $ 3,500.00 credited to hislher account, the Board ofTrustees has the option ofrequiring a lump sum distribution to the member in lieu ofmaking periodic payments. Upon the death ofa member, a lump sum distribution equaling the amount credited to hislher account will be paid to the member's designated beneficiary. Benefit provisions are established by State statute. \r\nContributions and Vesting Member contributions are seven and one-halfpercent (7.5%) ofgross salary. There are no employer contributions. Contribution rates are established by State statute. Earnings are credited to each member's account in. a manner established by the Board of Trustees. Upon termination of employment, the amount of the member's account is refundable upon request by the member. \r\nTotal contributions made by employees during fiscal year 2000 amounted to $51,396.85 which represents 7.5% of covered payroll. These contributions met the requirements of the plan. \r\nNOTE 6: LEAVE POLICIES \r\nEmployees earn annual leave ranging from one and one-quarter days to one and three-quarter days each month depending upon the employees' length of continuous State service with maximum accumulation of forty-five days. Employees are paid for unused accumulated annual leave upon retirement or termination of employment. See Note 1 - Basis of Accounting (Compensated Absences) \r\nEmployees earn one day of sick leave each month with no maximum accumulation established. Unused accumulated sick leave does not vest with the employee and is forfeited upon retirement or termination of employment, except as noted in the subsequent paragraph. \r\nCertain employees who retire with a minimum of three months of unused sick leave are entitled to additional service credit in the Teachers Retirement System of Georgia. \r\n \r\n- 16- \r\n \r\n STATE UNNERSITY OF WEST GEORGIA NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2000 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 7: CONTINGENCrnS \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 ofexpenditures which may be disallowed by the grantor cannot be determined at this time although the University expects such amounts, if any, to be immaterial to its overall financial position. \r\n \r\nLitigation, claims and assessments filed against State University ofWest Georgia (an organizational unit ofthe Board ofRegents ofthe University System of Georgia), ifany, are generally considered to be actions against the State ofGeorgia. Accordingly, significant litigation, claims and assessments pendmg against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 2000. \r\n \r\nNOTE 8: POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS \r\n \r\nPursuant to the general powers conferred by the Official Code ofGeorgia Annotated Section 20-331, the Board ofRegents of the University System of Georgia has established group health and life insurance programs for regular employees ofthe University System ofGeorgia. It is the policy ofthe Board ofRegents to permit employees ofthe University System ofGeorgia eligible forretirement or that become permanently and totally disabled to continue as members of the group health and life insurance programs. Employees who are eligible for retirement or disability under the criteria established by the Teachers Retirement System ofGeorgia and who have at least ten years ofservice with the University System of Georgia are eligible for these postemployment health and life insurance benefits. Organizational units of the Board of Regents of the University System of Georgia pay the employer portion for group insurance for affected individuals. \r\n \r\nAs ofJune 30, 2000, there were 284 employees who had retired or were disabled that were receiving these postemployment health and life insurance benefits. For the year ended June 30, 2000, State University of West Georgia recognized as incurred $638,797.67 of expenditures, which was net of $70,880.60 of participant contributions. \r\n \r\nNOTE 9: ENROLLMENT \r\n \r\nThe equivalent full-time student enrollment of State University of West Georgia was as follows: \r\n \r\nRegular Term Fall Semester, 1999 Spring Semester, 2000 \r\n \r\n6,355 5,856 \r\n \r\nAverage \r\n \r\nSummer School, 1999 \r\n \r\n- 17 - \r\n \r\n SUPPLEMENTARY INFORMATION - 19 - \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA COMBINING BALANCE SHEET \r\nCURRENT FUNDS - UNRESTRICTED JUNE 30, 2000 \r\n \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable Inventories Prepaid Items Due from Other Funds \r\n \r\nRESIDENT INSTRUCTION \r\n \r\nLOTTERY FOR EDUCATION \r\n \r\n$ 745,787.31 $ \r\n144,975.92 181,802.34 411,967.81 1,820,583.06 \r\n \r\n946.70 \r\n \r\nTotal Assets \r\n \r\n$ 3,305,116.44 $ ====9=46:=.:=70,= \r\n \r\nLIABILITIES AND FUND BALANCES \r\nLiabilities Accounts Payable Student Deposits Deferred Revenue Tuition and Fees Other Due to Other Funds \r\nTotal Liabilities \r\nFund Balances Unrestricted \r\nTotal Liabilities and Fund Balances \r\n \r\n$ 1,070,039.23 $ \r\n8,785.00 1,887,215.17 \r\n111,135.89 \r\n$ 3,077,175.29 $ \r\n227,941.15 \r\n \r\n946.00 \r\n946.00 0.70 \r\n \r\n$ 3,305,116.44 $ =======9=4=6.=70,,== \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 20- \r\n \r\n EXHIBIT\"E\" \r\n \r\nAUXILIARY ENTERPRISES \r\n \r\nSTUDENT ACTIVITIES \r\n \r\nTOTAL \r\n \r\n$ 6,439,023.53 $ 352,303.11 $ 7,538,060.65 \r\n \r\n170,110.69 \r\n \r\n80.00 \r\n \r\n315,166.61 \r\n \r\n461,009.52 \r\n \r\n642,811.86 \r\n \r\n4,674.72 \r\n \r\n425.00 \r\n \r\n417,067.53 \r\n \r\n1,820,583.06 \r\n \r\n$ 7,074,818.46 $ 352,808.11 $ 10,733,689.71 \r\n \r\n$ \r\n \r\n92,534.90 $ 28,533.78 $ 1,192,053.91 \r\n \r\n266,215.00 \r\n \r\n4,000.00 \r\n \r\n279,000.00 \r\n \r\n365,793.73 183,077.79 1,699,559.60 \r\n \r\n63,342.60 121,023.46 \r\n \r\n2,316,351.50 294,213.68 \r\n1,820,583.06 \r\n \r\n$ 2,607,181.02 $ 216,899.84 $ 5,902,202.15 \r\n \r\n4,467,637.44 135,908.27 \r\n \r\n4,831,487.56 \r\n \r\n$ 7,074,818.46 $ 352,808.11 $ 10,733,689.71 \r\n \r\n- 21 - \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA COMBINING STATEMENT OF CHANGES IN FUND BALANCES \r\nCURRENT FUNDS - UNRESTRICTED YEAR ENDED JUNE 30. 2000 \r\n \r\nREVENUES AND OTHER ADDITIONS \r\nUnrestricted Current Fund Revenues Adjustments \r\nPrior Years' Expenditures/Accounts Payable \r\nTotal Revenues and Other Additions \r\nEXPENDITURES AND OTHER DEDUCTIONS \r\nEducational and General Expenditures Auxiliary Enterprises Expenditures Remittances to the Board of Regents of the \r\nUniversity System of Georgia Prior Year's Unrestricted Fund Balance (Surplus) \r\nAdjustments Prior Years' Revenues/Accounts Receivable \r\nTotal Expenditures and Other Deductions \r\nTRANSFERS BETWEEN FUNDS \r\nNonmandatory . Renewals and Replacements Capital Projects \r\nTotal Transfers Between Funds \r\nNet Increase/(Decrease) for the Year \r\nFUND BALANCES JULY 1. 1999 \r\nFUND BALANCES JUNE 30. 2000 \r\n \r\nRESIDENT INSTRUCTION \r\n \r\nLOTTERY FOR EDUCATION \r\n \r\n$ 55,430,799.12 $ 639.298.00 20.843.96 \r\n$ 55,451.643.08 $ _....:6:.;:3;.::.9..=.2\"\"98::.:,.0;::.:0;... \r\n \r\n$ 55,435,476.04 $ 639.297,30 \r\n \r\n67.898.06 884.35 \r\n \r\n7.170.19 \r\n \r\n$ 55.504.258.45 $ _....:6:;,..;4\"\"'6'-',4~67:..:..4..:.;9;... \r\n \r\n$ \r\n \r\n-52.615.37 $ \r\n \r\n280.556.52 \r\n \r\n-7,169.49 7,170.19 \r\n \r\n$ 227.941.15 $ ====0=,==:70= \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information, \r\n- 22- \r\n \r\n EXHIBIT\"F\" \r\n \r\nAUXILIARY ENTERPRISES \r\n \r\nSTUDENT ACTIVITIES \r\n \r\nTOTAL \r\n \r\n$ 11,943,716.84 $ 597,500.03 $ 68,611,313.99 \r\n \r\n1,318.00 \r\n \r\n1,399.28 \r\n \r\n23,561.24 \r\n \r\n$ 11,945,034.84 $ 598,899.31 $ 68,634,875.23 \r\n \r\n$ 655,480.57 $ 56,730,253.91 \r\n \r\n$ 9,676,544.06 \r\n \r\n9,676,544.06 \r\n \r\n75,068.25 884.35 \r\n$ 9,676,544.06 $ 655,480.57 $ 66,482,750.57 \r\n \r\n$ -645,919.97 -696,209.77 \r\n \r\n$ -645,919.97 -696,209.77 \r\n \r\n$ -1,342,129.74 \r\n \r\n$ -1 ,342,129.74 \r\n \r\n$ 926,361.04 $ -56,581.26 $ 809,994.92 \r\n \r\n3,541,276.40 192,489.53 \r\n \r\n4,021,492.64 \r\n \r\n$ 4,467,637.44 $ 135,908.27 $ 4,831,487.56 \r\n \r\n- 23- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, \r\nAND OTHER CHANGES UNRESTRICTED \r\nYEAR ENDED JUNE 30, 2000 \r\n \r\nREVENUES \r\nState Appropriations Tuition and Fees Federal Grants and Contracts State Grants and Contracts Private Gifts, Grants, and Contracts Sales and Services of Educational Activities Sales and Services of Auxiliary Enterprises Other Sources \r\nTotal Revenues \r\nEXPENDITURES \r\nEducational and General Instruction Research Public Service Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships \r\nAuxiliary Enterprises Student Housing Food Services Stores and Shops Intercollegiate Athletics Other Service Units \r\nTotal Expenditures \r\nOTHER TRANSFERS AND ADDITIONS/CDEDUCTIONS) \r\nTransfers for Renewals and Replacements Transfers for Capital Projects Prior Period Adjustments (Net) Remittances to the Board of Regents \r\nof the University System of Georgia Prior Year's Unrestricted Fund Balance (Surplus) \r\nTotal Other Transfers and Additions/(Deductions) \r\n \r\nRESIDENT INSTRUCTION \r\n \r\nLOTIERYFOR EDUCATION \r\n \r\n$ 37,596,903.00 $ 16,622,038.65 80,114.53 448.96 18,669.42 118,859.54 \r\n993,765.02 \r\n$ 55,430,799.12 $ \r\n \r\n639,298.00 639,298.00 \r\n \r\n$ 28,036,821.25 $ 210,122.58 291,433.54 \r\n8,771,413.12 3,547.908.54 8,166.687.78 4,678.336.23 1.732.753.00 \r\n \r\n90,000.00 549,297.30 \r\n \r\n$ 55,435,476.04 $ 639,297.30 \r\n \r\n$ \r\n \r\n19,959.61 \r\n \r\n-67.898.06 $ \r\n \r\n-7,170.19 \r\n \r\n$ \r\n \r\n-47,938.45 $ \r\n \r\n-7,170.19 \r\n \r\nNet Increase/(Decrease) in Fund Balances \r\n \r\n$ \r\n \r\n-52,615.37 $ ==-=7..1..6=:9=.4=9= \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 24- \r\n \r\n EXHIBIT\"G\" \r\n \r\nAUXILIARY ENTERPRISES \r\n \r\nSTUDENT ACTIVITIES \r\n \r\nTOTAL \r\n \r\n$ 38,236,201.00 \r\n \r\n$ 528,129.15 \r\n \r\n17,150,167.80 \r\n \r\n80,114.53 \r\n \r\n448.96 \r\n \r\n18,669.42 \r\n \r\n118,859.54 \r\n \r\n$ 10,968,619.44 \r\n \r\n10,968,619.44 \r\n \r\n975,097.40 \r\n \r\n69,370.88 \r\n \r\n2,038,233.30 \r\n \r\n$ 11,943,716.84 $ 597,500.03 $ 68,611,313.99 \r\n \r\n$ 28,126,821.25 \r\n \r\n210,122.58 \r\n \r\n291,433.54 \r\n \r\n9,320,710.42 \r\n \r\n$ 655,480.57 \r\n \r\n4,203,389.11 \r\n \r\n8,166,687.78 \r\n \r\n4,678,336.23 \r\n \r\n1,732,753.00 \r\n \r\n$ 4,094,223.16 2,088,741.06 621,502.92 1,723,115.64 1,148,961.28 \r\n \r\n4,094,223.16 2,088,741.06 \r\n621,502.92 1,723,115.64 1,148,961.28 \r\n \r\n$ 9,676,544.06 $ 655,480.57 $ 66,406,797.97 \r\n \r\n$ -645,919.97 \r\n \r\n$ -645,919.97 \r\n \r\n-696,209.77 \r\n \r\n-696,209.77 \r\n \r\n1,318.00 $ 1,399.28 \r\n \r\n22,676.89 \r\n \r\n-75,068.25 $ -1,340,811.74 $ 1,399.28 $ -1,394,521.10 \r\n \r\n$ 926,361.04 $ -56,581.26 $ ====80..9.=,9=9.4...=92== \r\n \r\n- 25- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET \r\nRESIDENT INSTRUCTION YEAR ENDED JUNE 30, 2000 \r\n \r\nREVENUES \r\nState Appropriations Other Revenues Retained \r\n \r\nCURRENT FUNDS UNRESTRICTED RESTRICTED \r\n \r\nPLANT FUNDS RENEWALS AND \r\nUNEXPENDED REPLACEMENTS \r\n \r\n$ 37,596,903.00 \r\n \r\n$ 1,590,000.00 \r\n \r\n17,833,896.12 $ 25,910,083.52 \r\n \r\n344,182.22 $ _ _-=3:..::0\"\",8,,,,,,04.:..4:..:...4,,,,,0,- \r\n \r\n$ 55,430,799.12 $ 25,910,083.52 $ 1,934,182.22 $ _ _...::3:..:0.::;8,~04.:...4;.;..4.:.:0,- \r\n \r\nEXPENDITURES \r\n \r\nPersonal Services: \r\nEducation, General and Departmental Services $ \r\nSponsored Operations Operating Expenses: \r\nEducation, General and Departmental Services Sponsored Operations Capital Outlay Special Funding Initiative Year 2000 Project \r\n \r\n43,486,586,08 $ \r\n \r\n954,523.72 \r\n \r\n10,324,739.82 \r\n1,466,902.11 157,248,03 \r\n \r\n24,955,559.80 $ \r\n \r\n2,638,209.79 $ \r\n \r\n568,245.29 \r\n \r\n$ 55,435,476.04 $ 25,910,083.52 $ 2,638,209.79 $ _ _-=5.::;68::.!:,2::.;4~5=,2=-9 \r\n \r\nExcess of Revenues over Expenditures \r\n \r\n$ \r\n \r\n-4,676.92 $ \r\n \r\n0.00 $ -704,027.57 $ ==,,;-2~6,;;;,0!520;;,;0;,;;.8~9~ \r\n \r\n(1) To eliminate tuition waivers not bUdgeted and to reclassify current year transfers and prior year fund balances budgeted as revenues. \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 26- \r\n \r\n SCHEDULE \"1\" \r\n \r\nTOTAL \r\n \r\nADJUSTMENTS (1 ) \r\n \r\nTOTAL (Budget Basis) \r\n \r\nBUDGET \r\n \r\nVARIANCEFAVORABLE (UNFAVORABLE) \r\n \r\n$ 39,186,903.00 44,396,206.26 $ \r\n \r\n$ 39,186,903.00 $ 39,186,903.00 $ \r\n \r\n0.00 \r\n \r\n-776,342.34 43,619,863.92 46,194,286.59 \r\n \r\n-2,574,422.67 \r\n \r\n$ 83,583,109.26 $ -776,342.34 $ 82,806,766.92 $ 85,381,189.59 $ -2,574,422.67 \r\n \r\n$ 43,486,586.08 954,523.72 \r\n \r\n$ 43,486,586.08 $ 43,520,240.00 $ \r\n \r\n954,523.72 \r\n \r\n2,065,618.00 \r\n \r\n33,653.92 1,111,094.28 \r\n \r\n10,324,739.82 $ 24,955,559.80 \r\n3,206,455.08 1,466,902.11 \r\n157,248.03 \r\n \r\n-1,732,753.00 \r\n \r\n8,591,986.82 24,955,559.80 \r\n3,206,455.08 1,466,902.11 \r\n157,248.03 \r\n \r\n9,017,500.00 27,558,113.00 \r\n1,590,000.00 1,470,352.00 \r\n159,366.59 \r\n \r\n425,513.18 2.602,553.20 -1,616,455.08 \r\n3,449.89 2,118.56 \r\n \r\n$ 84,552,014.64 $ -1,732,753.00 $ 82,819,261.64 $ 85,381,189.59 $ 2,561,927.95 \r\n \r\n$ -968,905.38 $ \r\n \r\n956,410.66 $ =====-1=2/:,4=94=.7=2= \r\n \r\n$ ===-1=2=,4=94=.7=2= \r\n \r\n- 27- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET \r\nLOTTERY FOR EDUCATION YEAR ENDED JUNE 30, 2000 \r\n \r\nREVENUES State Appropriations \r\nEXPENDITURES Equipment, Technology and Construction \r\nTrust Fund Special Funding Initiatives \r\nExcess of Revenues over Expenditures \r\n \r\nCURRENT FUNDS UNRESTRICTED \r\n \r\nPLANT FUNDS UNEXPENDED \r\n \r\n$ \r\n \r\n639,298.00 $------'6'-1-,'2-8'-8;.:0.0... \r\n \r\n$ \r\n \r\n529,298.00 $ \r\n \r\n61,288.00 \r\n \r\n109,999.30 \r\n \r\n$ \r\n \r\n639,297.30 $_ _6_1-'-,2_8..;...8._00;:.... \r\n \r\n$ \r\n \r\n0.70 $,=====0.=00= \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 28- \r\n \r\n SCHEDULE \"2\" \r\n \r\nTOTAL (Budget Basis) \r\n \r\nBUDGET \r\n \r\nVARIANCEFAVORABLE (UNFAVORABLE) \r\n \r\n$ 700,586.00 $ 700,586.00 $ \r\n \r\n0.00 \r\n \r\n$ 590,586.00 $ 590,586.00 $ \r\n \r\n0.00 \r\n \r\n109,999.30 110,000.00 \r\n \r\n0.70 \r\n \r\n$ 700,585.30 $ 700,586.00 $ \r\n \r\n0.70 \r\n \r\n$=====,0=.7=0= \r\n \r\n$=====0.=70,,= \r\n \r\n- 29- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA CHANGES IN INVESTMENT IN PLANT YEAR ENDED JUNE 30, 2000 \r\n \r\nLand Buildings Improvements Other Than Buildings Equipment Library Books and Collections \r\n \r\nBALANCE JULY 1, 1999 \r\n \r\nCURRENT FUNDS UNRESTRICTED RESTRICTED \r\n \r\n$ 554,184.25 \r\n \r\n58,558,984.26 \r\n \r\n5,485,970.48 \r\n \r\n17,875,850.75 $ 1,735,227.31 $ 156,127.74 \r\n \r\n9,800,416.64 \r\n \r\n594,851.64 \r\n \r\n$ 92,275,406.38 $ 2,330,078.95 $ 156,127.74 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 30- \r\n \r\n SCHEDULE \"3\" \r\n \r\nADDITIONS \r\nPLANT FUNDS RENEWALS AND \r\nUNEXPENDED REPLACEMENTS \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\nPRIVATE GIFTS \r\n \r\nDEDUCTIONS DlSPOSALSI DELETIONSI ADJUSTMENTS \r\n \r\nBALANCE JUNE 30, 2000 \r\n \r\n$ \r\n \r\n554,184.25 \r\n \r\n$ 1,859,192.26 $ \r\n \r\n423,184.87 $ 11,323,581.41 \r\n \r\n$ \r\n \r\n5,397.00 \r\n \r\n72,159,545.80 \r\n \r\n478,451.51 \r\n \r\n2,314.03 \r\n \r\n3,141.40 \r\n \r\n5,963,594.62 \r\n \r\n130,820.76 \r\n \r\n119,007.49 \r\n \r\n$ 73,893.58 \r\n \r\n1,424,547.96 \r\n \r\n18,666,379.67 \r\n \r\n10,395,268.28 \r\n \r\n$ 2,468,464.53 $ \r\n \r\n544,506.39 $ 11,323,581.41 $ 73,893.58 $ 1,433,086.36 $ 107,738,972.62 \r\n \r\n- 31 - \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA SCHEDULE OF FUND BALANCES \r\nCURRENT FUNDS AND PLANT FUNDS JUNE 30, 2000 \r\n \r\nNET INVESTMENT IN PLANT Investment in Plant Facilities \r\nRESTRICTED Designated for Subsequent Years' Expenditures \r\nUNRESTRICTED Designated For Bus Replacement Reserve For Intercollegiate Athletics For Inventory Reserve For Renewals and Replacements Reserve For Subsequent Years' Expenditures For Uncollectible Accounts Surplus Regular Lottery for Education \r\n \r\nRESIDENT INSTRUCTION \r\n \r\nCURRENT FUNDS \r\n \r\nUNRESTRICTED \r\n \r\nLOTIERY FOR \r\n \r\nAUXILIARY \r\n \r\nEDUCATION ENTERPRISES \r\n \r\n$ 135,000.00 \r\n \r\n$ \r\n \r\n30,199.11 \r\n \r\n461,009.52 \r\n \r\n53,327.11 \r\n \r\n3,974,031.84 2,396.97 \r\n \r\n39,614.04 _____ $ $ 227,941.15 $ \r\n \r\n.....:0::.,:..7.:.,:0::.......:0::.,:..7.:.,:0::..-$ 4,467,637.44 \r\n \r\n$ 227,941.15 $====0;;,;.7=0= $ 4,467,637.44 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 32- \r\n \r\n SCHEDULE \"4\" \r\n \r\nSTUDENT ACTIVITIES \r\n \r\nRESTRICTED \r\n \r\nUNEXPENDED REGULAR \r\n \r\nPLANT FUNDS RENEWALS AND REPLACEMENTS \r\n \r\nINVESTMENT IN PLANT \r\n \r\nTOTAL \r\n \r\n$ 107,738,972.62 $ 107,738,972.62 \r\n \r\n$ 587,699.35 \r\n \r\n$ _-...:5::.:::8~7,~6.:::.:99~.3.:::.:5,,- \r\n \r\n$ 135,828.27 80.00 \r\n \r\n$ \r\n \r\n160,079.16 \r\n \r\n1,325,079.54 \r\n \r\n$ \r\n \r\n160,079.16 \r\n \r\n30,199.11 \r\n \r\n596,009.52 \r\n \r\n1,325,079.54 \r\n \r\n4,109,860.11 \r\n \r\n55,804.08 \r\n \r\n$ 135,908.27 \r\n \r\n$ \r\n \r\n3,788.40 \r\n \r\n$ \r\n \r\n3,788.40 $ 1,485,158.70 \r\n \r\n43,402.44 0.70 \r\n$ 6,320,434.66 \r\n \r\n$ 135.908.27 $ 587,699.35 $ \r\n \r\n3,788.40 $ 1,485,158.70 $ 107,738,972.62 $ 114,647,106.63 \r\n \r\n- 33- \r\n \r\n STATE UNIVERSITY OF WEST GEORGIA RECONCILIATION OF SALARIES AND TRAVEL \r\nYEAR ENDED JUNE 30. 2000 \r\n \r\nSCHEDULE \"5\" \r\n \r\nTotals per Annual Supplement \r\nPrepaid Salaries June 30,2000 June 30, 1999 \r\nUnreconciled Variance \r\n \r\nSALARIES $ 38,565,992.38 $ \r\n \r\nTRAVEL 711,905.96 \r\n \r\n-205,298.36 144,852.96 \r\n-811.79 \r\n \r\n$ 38,504,735.19 $ 711,905.96 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 34- \r\n \r\n SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n STATE UNNERSITY OF WEST GEORGIA AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30, 2000 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFA-554-97-01 FA-554-97-02 \r\n \r\nFurther Action Not Warranted Further Action Not Warranted \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":5,"first_page?":true,"last_page?":true},"facets":[{"name":"type_facet","items":[{"value":"Text","hits":5}],"options":{"sort":"count","limit":16,"offset":0,"prefix":null}},{"name":"creator_facet","items":[{"value":"Georgia. 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