{"response":{"docs":[{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bs25-b1998-h99","title":"Audit report, state of Georgia, Savannah State University, Savannah, Georgia, year ended June 30, 1999","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["year ended June 30, 1996: Georgia. Department of Audits, issuing body.","year ended June 30, 1997-year ended June 30, 1999: Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, Chatham County, 31.97402, -81.09243"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["1998/1999"],"dcterms_description":["Began with: Year ended June 30, 1996; ceased with: Year ended June 30, 1999.","Report year ends June 30.","Description based primarily on print version record.","Year ended June 30, 1999, released in 2000? (Georgia Government Publications database, viewed January 9, 2024)."],"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":["Savannah State University (Ga.)--Appropriations and expenditures","Financial statements--Georgia","Auditors' reports--Georgia"],"dcterms_title":["Audit report, state of Georgia, Savannah State University, Savannah, Georgia, year ended June 30, 1999"],"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-bs25-b1998-h99"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bs25-b1998-h99"],"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":"A~oc \r\n. p\" \r\nSl5\"\" \r\ni qq~ -')q \r\n \r\nAUDIT REPORT STATE OF GEORGIA SAVANNAH STATE UNIVERSITY SAVANNAH, GEORGIA YEAR ENDED JUNE 30,1999 \r\n \r\nSTATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 WASHINGTON STREET \r\nATLANTA, GEORGIA 30334-8400 \r\nI \r\n \r\n SAVANNAH STATE UNIVERSITY - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL 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\n21 \r\n \r\nG COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, \r\n \r\nAND OTHER CHANGES \r\n \r\nUNRESTRICTED \r\n \r\n23 \r\n \r\nSCHEDULES \r\n \r\n1 SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n24 \r\n \r\nSCHEDULES OF REVENUES AND EXPENDITURES COMPARED TO BUDGET \r\n \r\n2 \r\n \r\nRESIDENT INSTRUCTION \r\n \r\n26 \r\n \r\n3 \r\n \r\nLOTTERY FOR EDUCATION \r\n \r\n29 \r\n \r\n4 CHANGES IN INVESTMENT IN PLANT \r\n \r\n30 \r\n \r\n5 SCHEDULE OF FUND BALANCES \r\n \r\nCURRENT FUNDS AND PLANT FUNDS \r\n \r\n32 \r\n \r\n6 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 SAVANNAH STATE UNIVERSITY - TABLE OF CONTENTS - \r\nSECTION ill 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) 6562174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \r\nFebruary 2,2000 \r\n \r\nHonorable Roy E. Barnes, Governor Members ofthe General Assembly of Georgia Members ofthe Board ofRegents ofthe University System of Georgia \r\nand Honorable Carlton E. Brown, President Savannah State University \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL STATEMENTS \r\nAND SUPPLEMENTARY INFORMATION \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements (Exhibits A through D) ofSavannah State University as of and for the year ended June 30, 1999. These financial statements are the responsibility of the University's management. Our responsibility is to express an opinion on these financial statements based on our audit. \r\nWe conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. \r\nAs described in Note 1 to the financial statements, Georgia Law and State budgetary policy require the University to prepare its financial statements on a basis which is not consistent with generally accepted accounting principles with respect to the recording of encumbrances as expenditures and liabilities. To conform with generally accepted accounting principles, encumbrances should be recorded as a reservation of fund balance. The effects on the financial statements ofthis departure from generally accepted accounting principles were not reasonably determinable, but are believed to be material. \r\nAs disclosed in Note I 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. Ifcompensated absences were reported, liabilities would be increased and fund balance would \r\n99ARL-62 \r\n \r\n be decreased by $930,533.35 as of June 30, 1999, and the net change in fund balance for the year ended \r\n \r\nJune 30, 1999, would be decreased by $35,359.98. \r\n \r\n. \r\n \r\nIn our opinion, except for the effects on the financial statements of the matters discussed in the third and fourth paragraphs, the financial statements referred to above present fairly, in all material respects, the financial position of Savannah State University as ofJune 30, 1999, and the changes in fund balances and the current operating funds revenues, expenditures, and other changes for the year then ended in conformity with generally accepted accounting principles. \r\n \r\nThe year 2000 supplementary information on Schedule \"1\" is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries ofmanagement regarding the methods ofmeasurement and presentation ofthe supplementary information. However we did not audit the information and do not express an opinion on it. fu addition, we do not provide assurance that Savannah State University is or will become year 2000 compliant, that the University's year 2000 remediation efforts will be successful in whole or in part, or that parties with which Savannah State University does business are or will become year 2000 compliant. \r\n \r\nOur audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying combining statements (Exhibits E through G) and the financial schedules (Schedules 2 through 6) are presented for purposes of additional analysis and are not a required part of the financial statements of Savannah State University. Such information has been subjectedto the auditing procedures applied in the audit ofthe financial statements and, in our opinion, except for the effects ofthe matters discussed in the third and fourth paragraphs, such information is fairly presented in all material respects in relation to the financial statements taken as a whole. \r\n \r\nRespectfully submitted, \r\n~~..J~ Russell W. Hinton State Auditor \r\n \r\nRWH:jb 99ARL-62 \r\n \r\n FINANCIAL STATEMENTS - 1- \r\n \r\n SAVANNAH STATE UNIVERSITY COMBINED BALANCE SHEET ALL FUND GROUPS . JUNE 30.1999 \r\n \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable Inventories Prepaid Items Due from Other Fund Groups Investment in Plant \r\nTotal Assets \r\nLIABILITIES AND FUND BALANCES \r\nliabilities Accounts Payable Salaries Payable Student Deposits Deferred Revenue Tuition and Fees Deposits Held in Custody for Others Due to Other Fund Groups \r\nTotal LiabirIties \r\nFund Balances U. S. Government Grants Refundable Institutional Loans - Restricted Endowment Term Endowment Net Investment in Plant Restricted Unrestricted \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\nCURRENT FUNDS \r\n \r\nUNRESTRICTED \r\n \r\nRESTRICTED \r\n \r\nLOAN FUNDS \r\n \r\n$ \r\n \r\n1.064.933.24 \r\n \r\n585,629.58 $ \r\n \r\n679.064.04 \r\n \r\n76.134.41 \r\n \r\n550.223.94 \r\n \r\n$ 731.537.74 \r\n \r\n41.918.03 848.707.82 \r\n \r\n$ \r\n \r\n2,955,985.21 $ \r\n \r\n731.537.74 $ ===8=:9=:0=,6:=25=.8=5= \r\n \r\n$ \r\n \r\n1.208.684.21 \r\n \r\n5.637.71 \r\n \r\n93.075.00 \r\n \r\n682.597.42 \r\n \r\n$ \r\n \r\n$ \r\n \r\n1.989.994.34 $ \r\n \r\n550.223.94 550.223.94 \r\n$ \r\n \r\n815.499.79 75.126.06 \r\n \r\n$ \r\n \r\n181,313.80 \r\n \r\n$ \r\n \r\n965.990.87 \r\n \r\n$ \r\n \r\n965.990.87 $ \r\n \r\n181.313.80 $ \r\n \r\n890,625.85 \r\n \r\n.$ \r\n \r\n2,955.985.21 $ \r\n \r\n731.537.74 $ _ .........8;a9.0.!.ii.6.25 .8;;;;;5... \r\n \r\nThe notes to the financial statements are an integral part of this statement -2- \r\n \r\n ENDOWMENT AND SIMILAR \r\nFUNDS \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$ \r\n \r\n845,694.94 $ \r\n \r\n2,151,958.40 $ \r\n \r\n638,349.13 \r\n \r\n$ \r\n \r\n543,3n.46 $ \r\n \r\n5,286,231.20 \r\n \r\n7,875.00 \r\n \r\n2,173,750.14 \r\n \r\n679,064.04 \r\n \r\n76,134.41 \r\n \r\n- - - - - $ 67,975,984.30 \r\n \r\n550,223.94 67,975,984.30 \r\n \r\n$ \r\n \r\n845,694.94 $ \r\n \r\n2,159,833.40 $ \r\n \r\n638,349.13 $ 67,975,984.30 $ \r\n \r\n543,377.46 $ \r\n \r\n76,741,388.03 \r\n \r\n$ \r\n \r\n2,166,038.30 \r\n \r\n$ \r\n \r\n2,166,038.30 \r\n \r\n$ \r\n \r\n149,392.35 $ \r\n \r\n3,524,114.86 \r\n \r\n5,637.71 \r\n \r\n93,075.00 \r\n \r\n393,985.11 \r\n \r\n682,597.42 393,985.11 550,223.94 \r\n \r\n$ \r\n \r\n543,3n.46 $ \r\n \r\n5,249,634.04 \r\n \r\n$ \r\n \r\n632,563.52 \r\n \r\n213,131.42 \r\n \r\n$ \r\n \r\n$ \r\n \r\n845,694.94 $ \r\n \r\n-6,204.90 $ -6,204.90 $ \r\n \r\n$ 638,349.13 638,349.13 $ \r\n \r\n67,975,984.30 67,975,984.30 \r\n \r\n$ \r\n \r\n815,499.79 \r\n \r\n75,126.06 \r\n \r\n632,563.52 \r\n \r\n213,131.42 \r\n \r\n67,975,984.30 \r\n \r\n181,313.80 \r\n \r\n1,598,135.10 \r\n \r\n$ \r\n \r\n71,491,753.99 \r\n \r\n$ \r\n \r\n845,694.94 $ \r\n \r\n2,159,833.40 $ \r\n \r\n638,349.13 $ 67,975,984.30 $ \r\n \r\n543,3n.46 $ 76,741,388.03 \r\n \r\n-3- \r\n \r\n SAVANNAH STATE UNIVERSITY \r\nCOMBINED STATEMENT OF CHANGES IN FUND BALANCES \r\nALL FUNp GROUpS \r\nYEAR ENDEp JUNE 30. 1999 \r\n \r\n EXHIBIT\"B\" \r\n \r\nENDOWMENT AND SIMILAR \r\nFUNDS \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$ \r\n \r\n28,611,541.59 \r\n \r\n$ \r\n \r\n1,903,068.00 \r\n \r\n96,624.32 \r\n \r\n$ \r\n \r\n12,158.05 \r\n \r\n1,903,068.00 16,365,135.62 \r\n587,637.66 17,883.95 \r\n392,343.14 \r\n \r\n27.349.73 \r\n \r\n6,337.14 $ \r\n \r\n19,120.00 \r\n \r\n30,698.49 25,457.14 32,811.28 10,935.53 \r\n \r\n133.13 \r\n \r\n23,886.72 \r\n \r\n197,408.03 9,915.57 \r\n \r\n$ \r\n \r\n1,471,903.93 \r\n \r\n1,471,903.93 \r\n \r\n1,954,014.72 9,343.00 \r\n7,514,373.30 \r\n \r\n1,954,014.72 9,343.00 \r\n7,514,373.30 \r\n \r\n2,748.00 \r\n \r\n$ \r\n \r\n39,507.78 $ \r\n \r\n2,006,162.59 $ \r\n \r\n43,006.72 $ \r\n \r\n10,949,634.95 $ \r\n \r\n59,137,218.95 \r\n \r\n$ \r\n \r\n41,899,599.87 \r\n \r\n4,184,108.76 \r\n \r\n212,483.19 \r\n \r\n$ \r\n \r\n3,605.50 \r\n \r\n93,038.60 \r\n \r\n7,007.03 \r\n \r\n9,137.51 5,914.28 6,276.13 \r\n \r\n1,954,014.72 $ 51,345.74 \r\n \r\n9,343.00 8,453.48 \r\n$ \r\n \r\n455,028.02 \r\n \r\n1,963,357.72 59,799.22 \r\n455,028.02 \r\n \r\n$ \r\n \r\n2,015,972.99 $ \r\n \r\n17,796.48 $ \r\n \r\n455,028.02 $ \r\n \r\n48,888,743.30 \r\n \r\n$ \r\n \r\n1,903.98 \r\n \r\n$ \r\n \r\n1,903.98 \r\n \r\n$ \r\n \r\n41,411.76 $ \r\n \r\n804.283.18 \r\n \r\n$ \r\n \r\n845,694.94 $ \r\n \r\n$ $ -9,810.40 $ 3.605.50 \r\n \r\n213,804.44 213.804.44 239,014.68 $ 399,334.45 \r\n \r\n$ \r\n$ 10,494,606.93 $ 57,481,3n.37 \r\n \r\n0.00 0.00 0.00 10,248,475.65 61,243,278.34 \r\n \r\n-6,204.90 $ \r\n \r\n638,349.13 $ \r\n \r\n67,975,984.30 $ \r\n \r\n71,491,753.99 \r\n \r\n-5- \r\n \r\n SAVANNAH STATE UNIVERSITY STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, \r\nAND OTHER CHANGES \r\nYEAR ENDED JUNE 30. 1999 \r\n \r\nEXHIBIT\"C\" \r\n \r\nNet InaeaseJ(Deaease) In Fund Balances \r\n \r\n$ \r\n \r\nThe notes to the finandal statements are an integral part of this statement -7- \r\n \r\n179,628.40 $ \r\n \r\n-711,758,81 $ ===-5=3=:2=,1=30=:,4=1= \r\n \r\n SAVANNAH STATE UNNERSITY \r\nNOTES TO THE FINANCIAL STATEMENTS JUNE 30. 1999 \r\n \r\nEXHIBIT \"0\" \r\n \r\nNOTE 1: SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nREPORTING ENTITY Savannah State University is one ofthirty-four (34) State supported member institutions ofhigher 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 Savannah State University as a separate reporting entity. \r\n \r\nThe Board ofRegents 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. Savannah State University does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, Savannah State University is considered an organizational unit ofthe Board ofRegents ofthe 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 Accountin~ and Financial ~ortin~ Standards. \r\n \r\nFUND ACCOUNTING In order to ensure observance of limitations and restrictions placed on the use ofthe 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\n \r\nWithin each fund group, the University's fund balance allocations and designations represent those portions ofthe fun4 balances that are reserved, restricted and/or designated for specific future use by legal covenants, State policies, or institutional policies. \r\n \r\nFund groups and funds presented in the accompanying financial statements are as follows: \r\n \r\nCURRENT FUNDS \r\n \r\nUNRESTRICTED - The fund used to account for those economic resources over which the University \r\n \r\nretains full control to use for purposes of perfoIming the primary functions of the University, e.g., \r\n \r\ninstruction, research, public service, etc. \r\n \r\n. \r\n \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 \r\n-8- \r\n \r\n SAVANNAH STATE UNNERSITY \r\nNOTES TO THE FINANCIAL STATEMENTS JUNE 3D. 1999 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nFUND ACCOUNTING \r\n \r\nLOAN FUNDS \r\n \r\nThe fund used to account for resources which have been made available for financial loans to students. \r\n \r\nENDOWMENT AND SIMILAR FUNDS \r\n \r\n. \r\n \r\nThe fund used to account for endowment funds and tenn endowment funds. Endowment funds are subject \r\n \r\nto the restrictions ofgift instruments requiring that the principal be invested in perpetuity and income only \r\n \r\nbe utilized. Term endowment funds are similar to endowment funds except that upon the passage of a \r\n \r\nstated period oftime or the occurrence ofa particular event, all or part of the principal may be expended. \r\n \r\nPLANT FUNDS \r\n \r\nUNEXPENDED - The fund used to account for financial resources utilized to acquire or to construct physical properties for institutional purposes. \r\n \r\nRENEWALS AND REPLACEMENTS - The fund used to account for resources set aside for the renewal and replacement ofinstitutional properties. \r\n \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\n \r\nAGENCY FUNDS \r\n \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\n \r\nBASIS OF ACCOUNTING Except as otherwise disclosed in these notes, the financial statements are prepared on the modified accrual basis ofaccounting, which is materially the same as the accrual basis ofaccounting applicable to colleges and universities prescribed in the American Institute ofCertified 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 generallong-tenn 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\n \r\nContractual obligations for goods and services which have not been received at the end of the 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 ofcontracts \r\n \r\n-9- \r\n \r\n SAVANNAH STATE UNNERSITY \r\nNOTES TO THE FINANCIAL STATEMENTS JUNE 30. 1999 \r\n \r\nEXHIBIT \"0\" \r\n \r\nNOTE 1; SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF ACCOUNTING for goods and services. The recognition of encumbrances as expenditures and liabilities is in confonnity with accounting practices prescribed or pennitted by statutes and regulations ofthe State of Georgia, but is not consistent with generally accepted accounting principles, which provide for the recording of encumbrances as a reservation offund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures detennined in accordance with generally accepted accounting principles. \r\nCompensated absences represent obligations of the 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 $930,533.35 and a related net current year expenditure of$35,359.98 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 pennitted by statutes and regulations ofthe State of Georgia, 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 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\nThe Statement of Current Funds Revenues, Expenditures, and Other Changes is a statement of financial activities ofcurrent 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 ofincome or a statement ofrevenues and expenses. \r\nBUDGET The Board of Regents of the University System of Georgia - Administrative Central Office receives State appropriation allotments for units ofthe University System of Georgia. The appropriated budget is adopted at the Board level and represents appropriations provided by the Amended Appropriations Act of 1998-1999. The appropriated budget covers current funds and plant funds, except for Auxiliary Enterprises and Student Activities which are not subject to appropriation. The allocation of the 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-10- \r\n \r\n SAVANNAH STATE UNNERSITY \r\nNOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1999 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nBUDGET A 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 Year 2000 Project \r\n \r\n$ 434.353.43 $ 6,180.63 $ 12,673.00 \r\n \r\nLottery for Education Equipment, Technology and Construction Trust Fund \r\n \r\n$ 6,790.01 \r\n \r\nThese overexpenditures of budget constitute a violation of Board of Regents policy, but do not constitute statutory violations ofbudget 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 of allotments due from the Board of Regents of the University System of Georgia - Administrative Central Office, reimbursements due from Federal, State, local, and private grants and contracts, and other receivables disclosed from infonnation 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 ofgoods 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 of goods and services that will benefit periods subsequent to the balance sheet date. \r\n \r\nMEMORANDUM ONLY - TOTAL COLUMNS The total columns on the financial statements are captioned \"Memorandum Only\" because they do not represent consolidated financial infonnation and are presented only to facilitate financial analysis. The columns do not present infonnation that reflects financial position or changes in financial position in \r\n \r\n-11- \r\n \r\n SAVANNAH STATE UNNERSITY \r\nNOTES TO THE FlNANCIAL STATEMENTS JUNE 30. 1999 \r\n \r\nEXIllBIT \"D\" \r\n \r\nNOTE1: SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES \r\nMEMORANDUM ONLY - TOTAL COLUMNS conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. \r\nNOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS \r\nSTATE OF GEORGIA COLLATERALlZATION STATUTES AND POLICmS Funds belonging to the State of 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 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 ofany 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(4) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws of the State of .Georgia. . \r\n(5) Bonds, bills, certificates ofindebtedness, 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 Intennediate 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\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\n-12 - \r\n \r\n SAvANNAH STATE UNNBRSITY \r\nNOTES TO THE FINANCIAL STATEMENTS ruNE 30. 1999 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS \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 ofJune 30, 1999, 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\nTotal Cash Deposits \r\n \r\nCarrying \r\nAmount \r\n \r\nBank Balances \r\n \r\nRisk Categories \r\n \r\n2 \r\n \r\n3 \r\n \r\n$ 4,229,796,34 $ 5,684,378.87 $ 296,260.42 $ 370,903.62 $ 5,017,214,83 \r\n \r\nCATEGORIZATION OF INVESTMENTS The carrying amounts of investment balances as ofJune 30, 1999, are as :follows: \r\n \r\nBoard ofRegents Short-Term Fund Total Return Fund \r\nTotal Investments \r\n \r\n$. 232,297.60 815.990.85 \r\n$ 1.048,288,45 \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 ofthe pool. \r\n \r\nNOTE 3: INVESTMENT IN PLANT . \r\n \r\nThe following is a summary ofInvestment in Plant fixed assets as of June 30, 1999: \r\n \r\nLand Buildings Improvements Other Than Buildings Equipment Library Books and Collections \r\nTotal Investment in Plant \r\n \r\n$ 325,975.16 44,775,694.48 7,725,366,94 10,449,035,83 4.699,911.89 \r\n$67,975,984.30 \r\n \r\n-13 - \r\n \r\n SAVANNAH STATE UNIVERSITY \r\nNOTES TO THE FINANCIAL STATEMENTS \r\nruNE 30.1999 \r\n \r\nEXHIBIT \"0\" \r\n \r\nNOTE 4: RISKMANAGEMENT \r\nSavannah State University is a participant in the Board ofRegents ofthe University System ofGeorgia Health Benefits Plan, which is a self-insurance program ofhealth 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 ofthe Board ofRegents ofthe University System of Georgia - Administrative Central Office. All units ofthe University System of Georgia share the risk ofloss for claims ofthe 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 ofRegents has contracted with Blue Cross Blue Shield of Georgia to process claims in accordaIice with the Health Benefits Plan as established by the Board ofRegents. \r\nThe Department ofAdministrative Services (DOAS) has the re~onsibility for the State of Georgia ofmaking and carrying out decisions that will minimjze the adverse effects of accidenta110sses 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 ofRegents ofthe 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 ofprofessional 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 Self-Insurance Fund. \r\nNOTE 5: RETIREMENT PLANS \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nPlan Description Savannah State University participates in the Teachers Retirement System of Georgia (IRS), a cost-sharing multiple-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances and either benefits for teachers of the State of Georgia. IRS 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 Georgia Department of Audits and Accounts. \r\n \r\n-14- \r\n \r\n SAVANNAH STAIE UNNERSITY \r\nNOTES TO THE FINANCIAL STATEMENTS JUNE 30. 1999 \r\n \r\nEXHIBIT \"0\" \r\n \r\nNOTE 5: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \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 1999, the employer contribution rate was 11.95% for covered employees. In addition, the University contributed 3.46% 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\n1999 1998 1997 \r\n \r\n100% 100% 100% \r\n \r\n$ 1,462,909.44 $ 1,474,701.16 $ 1,590,288.68 \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 ofRegents of the University System of Georgia, under which it may purchase annuity contracts for the purpose ofproviding 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 ofthe 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 oIlly by the General Assembly ofthe State of Georgia. The employer contributes 8.34% 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 $291,322.93 (8.34%) and $174,752.02 (5%), respectively. \r\n \r\n-15 - \r\n \r\n SAVANNAH STATE UNIVERSITY \r\nNOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30.1999 \r\n \r\nEXHIBIT \"0\" \r\n \r\nNOTE 5: RETIREMENT PLANS \r\n \r\nGEORGIA DEFINED .CONTRIBUTION PLAN \r\n \r\nPlan Description Savannah State University participates in the Georgia Defined Contribution Plan (GDCP) which is a singleemployer defined contribution plan established by the General Assembly of Georgia for the purpose of providing retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees of the Employees' Retirement System of Georgia. \r\n \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 ofTrustees. Ifa member has less than $ 3,500.00 credited to his/her account, the Board ofTrustees has the option of requiring 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 his/her account will be paid to the member's designated beneficiary. Benefit provisions are established by State statute. \r\n \r\nContributions and Vesting \r\n \r\nMember contributions are seven and one-half percent (7.5%) of gross salary. There are no employer \r\n \r\ncontributions. Contribution rates are established by State statute. Earnings are credited to each member's \r\n \r\naccount in a manner established by the Board ofTrustees. Upon tennination of employment, the amount of \r\n \r\nthe member's account is refundable upon request by the member. \r\n \r\n. \r\n \r\nTotal contributions made by employees during fiscal year 1999 amounted to $35,950.15 which represents 7.5% of covered payroll. These contributions met the requirements ofthe plan. \r\nNOIE 6: LEAVE POLICIES \r\n \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\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\n \r\nCertain employees who retire with a minimum ofthree months ofunused sick leave are entitled to additional service credit in the Teachers Retirement System of Georgia. \r\n \r\n-16 - \r\n \r\n SAVANNAH STATE UNIVERSITY . \r\nNOTES TO THE FINANCIAL STATEMENTS ruNE 30. 1999 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE7: CONTWGENCmS \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 tenns. The amount ofexpenditures which may be disallowed by the grantor cannot be detemrined 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 Savannah State University (an organizational unit of the Board ofRegents ofthe University System of Georgia), ifany, 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, 1999. \r\n \r\nNOTE 8: POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS \r\n \r\nPursuant to the general powers conferred by the Official Code of Georgia Annotated Section 20-3-31,the Board of Regents of the University System of Georgia has established group health and life insurance programs for regular employees ofthe University System of Georgia. It is the policy ofthe Board ofRegents to pennit employees ofthe University System of Georgia eligible for retirement or that become permanently and totally disabled to continue as members ofthe group health and life insurance programs. Employees who are eligible for retirement or disability under the criteria established by the Teachers Retirement System of Georgia and who have at least ten years ofservice with the University System ofGeorgia 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 of June 30, 1999, there were 129 employees who had retired or were disabled that were receiving these postemployment health and life insurance benefits. For the year ended June 30, 1999, Savannah State University recognized as incurred $285,265.83 of expenditures, which was net of $86,622.07 ofparticipant contributions. \r\n \r\nNOTE 9 : ENROLLMENT \r\n \r\nThe equivalent full-time student enrollment of Savannah State UniverSity was as follows: \r\n \r\nRegular Term Fall Semester, 1998 Spring Semester, 1999 \r\n \r\n1,646 \r\nU12 \r\n \r\nAverage \r\n \r\nSummer School, 1998 \r\n \r\n-17 - \r\n \r\n  SUPPLEMENTARY INFORMATION -19 - \r\n \r\n SAVANNAH STATE UNIVERSITY COMBINING BALANCE SHEET CURRENT FUNDS - UNRESTRICTED \r\nJUNE 30.1999 \r\n \r\nEXHIBIT -E\" \r\n \r\n~ \r\nCash and Cash Equivalents Accounts Receivable Inventories Prepaid Items Due from Other Fund Groups \r\n \r\nRESIDENT INSTRUCTION \r\n \r\nLOITERYFOR EDUCATION \r\n \r\nAUXILIARY ENTERPRISES \r\n \r\nSTUDENT ACTIVITIES \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n811,244.29 $ \r\n \r\n122,261.24 \r\n \r\n$ \r\n \r\n131,427.71 $ 1,064,933.24 \r\n \r\n308,245.02 \r\n \r\n$ \r\n \r\n270,758.78 \r\n \r\n6,625.78 \r\n \r\n585,629.58 \r\n \r\n134,959.70 \r\n \r\n544,104.34 \r\n \r\n679,064.04 \r\n \r\n72,674.41 \r\n \r\n3,460.00 \r\n \r\n76,134.41 \r\n \r\n642,697.93 \r\n \r\n642,697.93 \r\n \r\nTotal Assets \r\n \r\n$ 1,969,821.35 $ \r\n \r\n122,261.24 $ \r\n \r\n818,323.12 $ \r\n \r\n138,053.49 $ 3,048,459.20 \r\n \r\nLIABILITIES AND FUND BALANCES \r\n \r\nLiabilities \r\n \r\nAccounts Payable \r\n \r\n$ \r\n \r\nSalaries Payable \r\n \r\nStudent Deposits \r\n \r\nDeferred Revenue \r\n \r\nTuition and Fees \r\n \r\nDue to Other Fund Groups \r\n \r\nTotal Liabilities \r\n \r\n$ \r\n \r\nFund Balances \r\n \r\nUnrestricted \r\n \r\n1,074,741.34 $ 5,637.71 \r\n450,294.90 \r\n1,530,673.95 $ 439,147.40 \r\n \r\n121,385.04 $ \r\n121,385.04 $ 876.20 \r\n \r\n5,576.98 $ 93,075.00 199,208.20 92,473.99 390,334.17 $ 427,988.95 \r\n \r\n6,980.85 $ \r\n33,094.32 40,075.17 $ 97,978.32 \r\n \r\n1,208,684.21 5,637.71 \r\n93,075.00 \r\n682,597.42 92,473.99 \r\n2,082,468.33 \r\n965,990.87 \r\n \r\nTotal Liabilities and Fund Balances $ 1,969,821.35 $ \r\n \r\n122,261.24 $ \r\n \r\n818,323.12 $ \r\n \r\n138,053.49 $ 3,048,459.20 \r\n \r\nsee notes to the financial statements. \r\n \r\n-20- \r\n \r\n SAVANNAH STATE UNIVERSITY COMBINING STATEMENT OF CHANGES IN FUND BALANCES \r\nCURRENT FUNDS - UNRESTRICTED \r\nYEAR ENDED JUNE 30, 1999 \r\n \r\nEXHIBIT\"P \r\n \r\nREVENUES AND OTHER ADDITIONS \r\nUnrestricted Current Fund Revenues Adjustments \r\nPrior Years' Expenditures/Accounts Payable Prior Years' Checks Voided \r\nTotal Revenues and Other Additions \r\nEXPENDITURES AND OTHER DEDUCTIONS \r\nEducational and General Expenditures Auxiliary Enterprises Expenditures \r\nRemittances 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 \r\nNet Increasel(Decrease) for the Year \r\nFUND BALANCES JULY 1,1998 \r\n \r\nRESIDENT INSTRUCTION \r\n \r\nLOTTERY FOR EDUCATION \r\n \r\nAUXILIARY ENTERPRISES \r\n \r\nSTUDENT ACTMTIES \r\n \r\nTOTAL \r\n \r\n$ 23,738,701,89 $ \r\n131,969.25 7,124.90 \r\n$ 23,877,796.04 $ \r\n \r\n279,500.00 $ 279,500.00 $ \r\n \r\n4,360,268,07 $ \r\n6,284,92 700.73 \r\n4,367,253,72 $ \r\n \r\n233,071.63 $ 28,611,541,59 \r\n \r\n35,134,01 2,089.94 \r\n \r\n173,388,18 9,915.57 \r\n \r\n270,295.56 $ 28,794,845,34 \r\n \r\n$ 23,603,596,25 $ \r\n \r\n285,414.18 $ \r\n \r\n$ 4,184,108.76 \r\n \r\n236,729,73 $ 24,125,740,16 4,184;108.76 \r\n \r\n89,433,10 1,500.26 \r\n \r\n657,22 \r\n \r\n-27,00 \r\n \r\n89,433,10 2,130.48 \r\n \r\n$ 23,694,529,61 $ \r\n \r\n285,414,18 $ 4,184,765.98 $ \r\n \r\n236,702.73 $ 28,401,412,50 \r\n \r\n$ \r\n \r\n183,266.43 $ \r\n \r\n255,880.97 \r\n \r\n$ -5,914.18 $ 6,790,38 \r\n \r\n-213,804.44 -31,316.70 $ 459,305.65 \r\n \r\n$ 33,592.85 $ 64,385.47 \r\n \r\n-213,804.44 179,628.40 786,362.47 \r\n \r\nFUND BALANCES JUNE 30. 1999 \r\n \r\n$ \r\n \r\n439,147.40 $ \r\n \r\n876.20 $ \r\n \r\n427,988.95 $ \r\n \r\n97,978,32 $ \r\n \r\n965,990,87 \r\n \r\nsee notes to the fInanclal statements, \r\n \r\n21 \r\n \r\n See notes to the financial statements. \r\n \r\n-23- \r\n \r\n SAVANNAH STATE UNIVERSITY \r\n \r\nSCHEDULE \"1\" \r\n \r\nSCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n. YEAR 2000 DISCLOSURES \r\n \r\nYEAR ENDED JUNE 30. 1999 \r\n \r\nThe year 2000 issue is the result of shortcomings in many electronic data processing systems and other equipment that may adversely affect the government's operation beyond calendar year 1999. \r\n \r\nSavannah State University is a member ofthe University System of Georgia. As such, most of the mission critical systems of the institution are supported by the central office of the Board of Regents Office of Information and fustructional Technology. Savannah State University however, has inventoried computer systems and other equipment not supported by the central office. Systems not found to be year 2000 compliant were either replaced or upgraded. The University assigned the duty of identifying, reporting and remediating year 2000 issues to a task force comprised of Information Technology professionals and department managers. The task force is managed and coordinated by a Professor of Computer Sciences and the Director ofComputer Services. The following stages have been identified as necessary to implement year 2000 compliant systems. \r\n \r\nAwareness Stage - Encompasses establishing a budget and project plan for dealing with the year 2000 Issue. \r\n \r\nAssessment Stage - The actual process ofidentifying all systems and individual components ofsystems to check for compliance. \r\n \r\nRemediation Stage - The time when changes are made to systems and equipment. \r\n \r\nValidationffesting Stage - The process of ensuring that the changes made to systems and equipment \r\n \r\nwill produce a year 2000 compliant system. \r\n \r\n. \r\n \r\nIt will be necessary for the University to progress through all four ofthese stages for each computer and/or electronic system, not already year 2000 compliant, in order to assure that these systems will not be adversely affected. \r\n \r\nThe status of year 2000 issues for mission critical systems are as follows: \r\n \r\nSystems Supported by the Board of Regents \r\n \r\nThe College and University Fund Accounting System has been remediated, validated and tested. \r\n \r\nThe Regents Budget Reporting System is reportedly year 2000 compliant. The awareness, assessment, validation/testing phases were completed in 1997. \r\n \r\nThe Regents Payrol1/Personnel System has been remediated, validated and tested. \r\n \r\nSee notes to the financial statements. \r\n \r\n-24- \r\n \r\n SAYANNAB STATE UNNERSITY \r\n \r\nSCHEDULE \"1\" \r\n \r\nSCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nYEAR 2000 DISCLOSURES \r\n \r\nYEAR ENDED ruNE 30. 1999 \r\n \r\nSystems Supported by the Board of Regents \r\nThe Regents Property Inventory System is reportedly year 2000 compliant. The awareness, assessment,. validation/testing phases were completed in 1997. \r\nThe Banner Student Information System is supported by SCT Banner, Inc. The year 2000 version has been released and distributed to the University. \r\nSystems Supported by Savannah State University \r\nUniversity computer center mainframe hardware systems are reportedly year 2000 compliant. \r\nPrograms of institutional operating systems in support of student information system and financial systems are reportedly year 2000 compliant. \r\nA written contingency plan has been developed for all mission critical systems. Management required that all systems be compliant and the written contingency plan developed and tested between all critical areas. \r\nBecause ofthe unprecedented nature ofthe year 2000 issue, its effects and the success ofrelated remediation efforts will not be fully determinable until year 2000 and thereafter. While management is confident that the University will be year 2000 ready, it cannot assume that its remediation efforts will be successful in whole or in part, or that parties with whom the University does business will be year 2000 ready. \r\n \r\nSee notes to the.financial statements. \r\n \r\n-25 - \r\n \r\n SAVANNAH STATE UNIVERSITY SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUpGET \r\nRESIDENT INSTRUCTION YEAR ENDED JUNE 30. 1999 \r\n \r\nREVENUES \r\nState Appropriations Other Revenues Retained \r\n \r\nCURRENT FUNDS \r\n \r\nUNRESTRICTED \r\n \r\nRESTRICTED \r\n \r\nPLANT FUNDS \r\n \r\nRENEWALS AND \r\n \r\nUNEXPENDED \r\n \r\nREPLACEMENTS \r\n \r\n$ \r\n \r\n18.073.787.00 \r\n \r\n$ \r\n \r\n5.664.914.89 $ _ _.....:1..:.7.r.:.n.:.:3~.8:::5::::9:.:..7..:..1 \r\n \r\n1,903,068.00 102,961.46 $ \r\n \r\n..;.;1.9...1,;.;:;2O=.00~ \r\n \r\n$ \r\n \r\n23.738.701.89 $ \r\n \r\n17.n3.859.71 $ \r\n \r\n2.006,029.46 $ \r\n \r\n. ;.;19;.:.,1;.;;;20. ;.;.\", 00, - \r\n \r\nEXPENDITURES \r\n \r\nPersonal Services: \r\n \r\nEducation. General and Departmental Services \r\n \r\n$ \r\n \r\nSponsored Operations \r\n \r\nOperating Expenses: \r\n \r\nEducation. General and Departmental Services \r\n \r\nSponsored Operations \r\n \r\nCapital Outlay \r\n \r\nSpecial Funding Initiative \r\n \r\nYear 2000 Project \r\n \r\n$ \r\n \r\nExcess of Revenues over Expenditures \r\n \r\n$ \r\n \r\n18.556.090.52 $ \r\n4.611.213.10 \r\n373.569.63 . 62.723.00 \r\n23.603.596.25 $ \r\n135.105.64 $ \r\n \r\n1,704.751.28 16,069,108.43 \r\n$ \r\n17,n3,859.71 $ 0.00 $ \r\n \r\n2,005.360.46 $ \r\n \r\n17,796.48 \r\n \r\n2,005.360.46 $ 669.00 $ \r\n \r\n1..;.;7..:.:,7..;;96.~..;.;48,,1.,.3;;;;2.352. . \r\n \r\n(1) To eliminate tuition waivers not budgeted \r\n \r\nSee notes to the financial statements. \r\n \r\n-26- \r\n \r\n SCHEDULE .Z' \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$ \r\n \r\n19,976,855.00 \r\n \r\n$ \r\n \r\n19,976,855.00 $ 19,976,855.00 $ \r\n \r\n0.00 \r\n \r\n23.560,856.06 $ \r\n \r\n-260,887.69 \r\n \r\n23,299.968.37 \r\n \r\n24.639,6n.OO \r\n \r\n-1,339.708.63 \r\n \r\n$ \r\n \r\n43.537,711.06 $ \r\n \r\n-260,887.69 $ \r\n \r\n43,276.823.37 $ 44.616.532.00 $ \r\n \r\n-1,339,708.63 \r\n \r\n$ \r\n \r\n18.556,090.52 \r\n \r\n1,704,751.28 \r\n \r\n$ \r\n \r\n18,556.090.52 $ 18.659,280.00 $ \r\n \r\n1,704.751.28 \r\n \r\n3,024,231.00 \r\n \r\n4.611,213.10 $ 16,069,108.43 2.023,156.94 \r\n373,569.63 62.723.00 \r\n \r\n-260.887.69 \r\n \r\n4,350,325.41 16,069.108.43 2,023.156.94 \r\n373.569.63 62,723.00 \r\n \r\n4,384.649.00 15.634,755.00 \r\n2.496,178.00 367,389.00 50.050.00 \r\n \r\n103,189.48 1,319.479.72 \r\n34.323.59 -434.353.43 473,021.06 \r\n-6.180.63 -12,673.00 \r\n \r\n$ \r\n \r\n43,400,612.90 $ \r\n \r\n-260.887.69 $ \r\n \r\n43.139,725.21 $ 44,616,532.00 $ \r\n \r\n1,476.806.79 \r\n \r\n$ \r\n \r\n137,098.16 $ \r\n \r\n0.00 $ \r\n \r\n137,098.16 \r\n \r\n$ \r\n \r\n137.098.16 \r\n \r\n-Xl- \r\n \r\n SAVANNAH STATE UNIVERSITY SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET \r\nLOTTERY FOR EDUCATION YEAR ENDED JUNE 30,1999 \r\n \r\nSCHEDULE \"3\" \r\n \r\nREVENUES State Appropriations \r\nEXPENDITURES Equipment, Technology and Construction \r\nTrust Fund Special Funding Initiatives \r\n \r\nCURRENT FUNDS UNRESTRICTED \r\n \r\nBUDGET \r\n \r\nVARIANCEFAVORABLE (UNFAVORABLE) \r\n \r\n$ \r\n \r\n- - - - - - - 279,500.00 $ \r\n \r\n279,500.00 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n180,790.01 $ \r\n \r\n174,000,00 $ \r\n \r\n104,624.17 \r\n \r\n105,500.00 \r\n \r\n$ \r\n \r\n285,414.18 $ \r\n \r\n279,500.00 $ \r\n \r\n-6,790.01 875.83 \r\n-_5.;....9_14_.1_8_ \r\n \r\nExcess of Revenues over Expenditures \r\n \r\n$ ===-=5:::,9=14:=.1=8= \r\n \r\n$ ===-=5=,9::::14,;,;,,1=8= \r\n \r\nSee notes to the financial statements, \r\n \r\n-29- \r\n \r\n SAVANNAH STATE UNIVERSITY CHANGES IN INVESTMENT IN PLANT \r\nYEAR ENDED JUNE 30,1999 \r\n \r\nLand Buildings Improvements Other Than Buildings Equipment Library Books and Collections \r\n \r\nBALANCE JULY 1,1998 \r\n \r\nCURRENT FUNDS \r\n \r\nUNRESTRICTED \r\n \r\nRESTRICTED \r\n \r\n$ \r\n \r\n325,975,16 \r\n \r\n35,389,112,81 \r\n \r\n7,654,672.59 \r\n \r\n9,657,291,24 $ \r\n \r\n852,734.85 $ \r\n \r\n373,819,96 \r\n \r\n4,454,325,57 \r\n \r\n245,349.12 \r\n \r\n$ \r\n \r\n57,481,377,37 $ \r\n \r\n1,098,083.97 $ ===3=7::3:5,8=19=:,9=:6= \r\n \r\nSee notes to the financial statements. \r\n \r\n- 30- \r\n \r\n SCHEDULE \"4\" \r\n \r\nADDITIONS \r\n \r\nPLANT FUNDS \r\n \r\nRENEWALS AND \r\n \r\nUNEXPENDED \r\n \r\nREPLACEMENTS \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\nDEDUCTIONS DISPOSALS! DELETIONS! ADJUSTMENTS \r\n \r\n$ \r\n \r\n$ \r\n \r\n1,883,320.37 \r\n \r\n$ \r\n \r\n7,514,373.30 $ \r\n \r\n11,112.00 \r\n \r\n70,694.35 \r\n \r\n$ \r\n \r\n9,343.00 \r\n \r\n444,153.22 \r\n \r\n-237.20 \r\n \r\nBALANCE JUNE 30,1999 \r\n325,975.16 44,775,694.48 \r\n7,725,366.94 10,449,035.83 4,699,911.89 \r\n \r\n$ \r\n \r\n1,954,014.72 $ \r\n \r\n9,343.00 $ \r\n \r\n7,514,373.30 $ \r\n \r\n455,028.02 $ ====67=,=:97:=5::::,9,;,84=.3;;;;;0,= \r\n \r\n- 31 - \r\n \r\n SAVANNAH STATE UNIVERSITY SCHEDULE OF FUND BALANCES CURRENT FUNDS AND PLANT FUNDS \r\nJUNE 30.1999 \r\n \r\nRESIDENT INSTRUCTION \r\n \r\nCURRENT FUNDS \r\n \r\nUNRESTRICTED \r\n \r\nLOTTERY FOR \r\n \r\nAUXILIARY \r\n \r\nEDUCATION \r\n \r\nENTERPRISES \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\n-190,452.99 \r\n \r\nFor Inventory Reserve \r\n \r\n$ \r\n \r\n132,528.42 \r\n \r\n544,104.34 \r\n \r\nFor Renewals and Replacements Reserve \r\n \r\nFor Subsequent Years' Expenditures \r\n \r\n41,841.49 $ \r\n \r\nFor Year 2000 Project \r\n \r\n7.327.00 \r\n \r\nFor Uncollectible Accounts \r\n \r\n28.398.89 \r\n \r\n32.496.11 \r\n \r\nSurplusJDeflcit \r\n \r\nRegular Lottery for Education \r\n \r\n270.893.09 ______ $ \r\n \r\n$ \r\n \r\n439,147.40 $ \r\n \r\n--.;8;:;.:7..:,6.::20:_ 876.20 $ \r\n \r\n427.988.95 $ \r\n \r\nSTUDENT ACTIVITIES \r\n97,978.32 ..:9::.,:7.z::.9:.:.7,::8.:::::32:.. \r\n \r\n$ \r\n \r\n439,147.40 $ \r\n \r\n876.20 $ \r\n \r\n427.988.95 $ .....-=-=_9.7.,l;.9.7,;;;;8.;;:32:o., \r\n \r\nSee notes to the financial statements. \r\n \r\n-32- \r\n \r\n SCHEDULE \"5\" \r\n \r\nRESTRICTED \r\n \r\nUNEXPENDED \r\n \r\nPLANT FUNDS RENEWALS AND REPLACEMENTS \r\n \r\nINVESTMENT IN PLANT \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n67,975,984.30 $ _--:.67:..r.,9::.:7~5J.:,9;::,84.:.:..3::::0~ \r\n \r\n$ _ _-..:.:18;;.:1~,3:.:.13:::.:.:::80::... \r\n \r\n$ _ _-\"\",18,-,1,1.;;,3;\";.13,,,,.8;;.;0,- \r\n \r\n$ \r\n \r\n$ \r\n \r\n$ \r\n \r\n181,313.80 $ \r\n \r\n$ \r\n \r\n44,260.22 \r\n \r\n594,088.91 \r\n \r\n$ \r\n \r\n44,260.22 \r\n \r\n-190,452.99 \r\n \r\n676,632.76 \r\n \r\n594,088.91 \r\n \r\n139,819.81 \r\n \r\n7,327.00 \r\n \r\n60,895.00 \r\n \r\n-6,204.90 \r\n \r\n-6,204.90 $ \r\n \r\n638,349.13 \r\n \r\n264,688.19 \r\n \r\n876.20 \r\n \r\n$ \r\n \r\n1,598,135.10 \r\n \r\n-6,204.90 $ \r\n \r\n638,349.13 $ \r\n \r\n67,975,984.30 $ \r\n \r\n69,755,433.20 \r\n \r\n-33- \r\n \r\n SAVANNAH STATE UNIVERSITY RECONCILIATION OF SALARIES AND TRAVEL \r\nYEAR ENDED JUNE 30,1999 \r\n \r\nSCHEDULE \"6\" \r\n \r\nTotals per Annual Supplement \r\n \r\nAccruals June 30, 1998 June 30, 1999 \r\n \r\nAdjustments \r\n \r\nShared Services on Jointly Staffed Personnel \r\n \r\nArmstrong Atlantic State University \r\n \r\nEason, \r\n \r\nThomas \r\n \r\nRichardson, Joseph \r\n \r\nGeorgia Southem University \r\n \r\nWinston, \r\n \r\nCraig \r\n \r\nAtlanta Metropolitan College \r\n \r\nSilver, \r\n \r\nJoseph \r\n \r\nSALARIES \r\n \r\n$ \r\n \r\n17,188,839.53 $ \r\n \r\nTRAVEL 353,612.84 \r\n \r\n-10,719.88 5,637.71 \r\n \r\n-10,523,61 -6,723,00 \r\n-2,000.00 \r\n-538.25 \r\n \r\n$ \r\n \r\n17,163,972.50 $ ====35=3::::,6=:12:=.84=== \r\n \r\nSee notes to the financial statements. \r\n \r\n- 34- \r\n \r\n SECTIONll AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n--- \r\n \r\n SAVANNAH STATE UNIVERSITY \r\nAUDITEE'SRESPONSE \r\nSUMMARY SCHEPULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 1999 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\n548-96-01 548-96-02 548-96-03 FS-548-98-01 FS-548-98-02 FS-548-98-03 FS-548-98-04 FS-548-98-05 FS-548-98-06 FS-548-98-07 FS-548-98-08 \r\n \r\nPartially Resolved - See Corrective Action/Responses Further Action Not Warranted Further Action Not Warranted Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Partially Resolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Partially Resolved - See Corrective Action/Responses Partially Resolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTIONIRESPONSES \r\n \r\nREVENUES/RECEIVABLEIRECEIPTS Student Accounts Receivable Not Supported by Financial Aid Finding Control Number: 548-96-01 \r\n \r\nThe University has increased its collection efforts to reduce accounts receivable. Uncollectible debts under $100.00 will be gradually written offunder House Bi111536, a.C.G.A. Section 50-1617. Surplus funds will he used to increase the reserve for uncollectible debts in excess of$100.00. The institution has put controls in place to ensure deferments are supported by Financial Aid. \r\n \r\nCASH AND CASH EQUIVALENTS Inadequate Accounting Procedures Finding Control Number: FS-548-98-01 \r\n \r\nThe University has obtained software from its bank that enables the University to have real time access to its accounts. Procedures have been put in place to utilize this software to post entries in a more timely manner and reduce the number of reconciling items. The bank statements will continue to be monitored to ensure items are not allowed to remain unresolved for extended periods of time. \r\n \r\nAdditionally, the University has a policy to void checks over ninety (90) days old. The bank statement will be monitored to ensure this policy is adhered to by the appropriate personnel. \r\n \r\n- 1- \r\n \r\n SAVANNAB STATE lJNNERSITY AUDITEE'S RESPONSE \r\nSUMMARy SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 1999 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nCORRECTIVE ACTIONIRESPONSES \r\nEXPENDITURESILIABILITIESIDISBURSEMENTS Deficit Cash Balance Finding Control Number: FS-548-98-02 \r\nA dollar limit has been established for annual scholarship distribution and a source of funding has been identified to fund the deficit for the Naval Reserve Officers Training Corps Room and Board Scholarship. The program is extremely important to the Institution and must continue. Equally important is the identification of funds to reduce the deficit systematically. Management has established a goal of eliminating the deficit over a five year period. \r\nEXPENDITURESILIABILITIESIDISBURSEMENTS Failure to Monitor Accounts Payable Finding Control Number: FS-548-98-03 \r\nThe Director of Financial Services is now meeting with the Accounts Payable staff on a weekly basis. These meetings serve as both a training session for personnel and a means to monitor the process. The Director reviews the Accounts Payable list on a monthly basis to ensure outstanding balances are liquidated and the appropriate journal entries are made, ifnecessary. \r\nFUND BALANCE Deficit to be Funded from Subsequent Years' Operation Finding Control Number: FS-548-98-Q4 \r\nThe Vice President ofBusiness and Finance, the Director ofBudget and Financial Analysis and the Athletics Director have met through most of fiscal year 1999 on a monthly basis to monitor the University's Intercollegiate Athletics' budget. The deficitdid not grow in fiscal year 1999 and a small amount was applied from this year's activities to reduce it. Additionally, the new Athletic Director has secured new sources of revenue, inclusive of the creation of an athletic foundation. Management fully expects a more aggressive reduction in the deficit as it moves forward. \r\nGENERAL LEDGER Deficiencies in Accounting Procedures Finding Control Number: FS-548-98-05 \r\nProcedures have been devised to secure the necessary documentation required to make immediate postings to the appropriate account without having to channel these funds through the clearing account. In the event this is not possible, this account will be monitored on a monthly basis and researched to take the appropriate action. Additionally, the University's bookstore error brought to \r\n-2- \r\n \r\n SAVANNAH STATE UNIVERSITY AUDIIEE'S RESPONSE \r\nSUMMARy SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED ruNE 30. 1999 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nCORRECTIVE ACTIONIRESPONSES \r\nGENERAL LEDGER Deficiencies in Accounting Procedures Finding Control Number: FS-548-98-05 \r\nthe auditor's attention by Savannah State University's personnel has been corrected by a change in accounting procedure for recording sales to ensure the revenue is not duplicated. Procedures have been established to channel all adjustments for Restricted Funds to the Director of Contracts and Grants. The Director also has access to various reports for monitoring. Procedures have been established to fOlWard copies of all documentation on revenue received to the Director ofFinancial Services. The Director monitors the receipt ofrevenue on a monthly basis to ensure it is posted . correctly. Accounting personnel will appropriately label all auditor's reports as such and place in a secure location for presentation during the audit. \r\nGENERAL LEDGER Dormant Restricted Funds Finding Control Number: FS-548-98-06 \r\nProcedures will be established to more diligently monitor grant accounts to ensure that funding is spent within the specified time period and to return any unspent funds to the grantor in a timely fashion. \r\nGENERAL LEDGER Inadequacies in Travel Advances/Prepaid Travel Finding Control Ntimber:FS-548-98-07 \r\nProcedures have been established to monitor the travel advances and prepaid travel accounts on a monthly basis. All employees receiving a travel advance will be required to sign an authorization for a reduction in payroll for the amount ofthe advance ifit is not cleared within three business days subsequent to return from travel. This policy will be enforced. Additionally, letters are sent to employees on a monthly basis related to outstanding travel authorizations notifying them of the University's intent to cancel unless expenses are claimed. The Director of Financial Services monitors the General Ledger History on a quarterly basis to ensure items are posted correctly. \r\n-3- \r\n \r\n SAVANNAH STATE UNNERSITY \r\nAUDITEE'SRESPONSE \r\nSUMMARy SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS .YEAR ENDED ruNE 30. 1999 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nCORRECTIVE ACTIONIRESPONSES \r\n \r\nGENERAL LEDGER Inadequate Documentation of Journal Entries Finding Control Number: FS-548-98-08 \r\n \r\nThe University has procedures to ensure documentation is attached to all journal entries. This policy will be enforced. During the year under review, several journal entries could not be located. The University will perform periodic audits ofjournal entries and enforce existing procedures to ensure journal entries are filed correctly and signed out when in use by University personnel. \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFA-548-98-01 FA-548-98-02 FA-548-98-03 FA-548-98-04 FA-548-98-05 FA-548-98-06 FA-548-98-07 \r\n \r\nPreviously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Partially Resolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented Partially Resolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTIONIRESPONSES \r\n \r\nALLOWABLE COSTS/COST PRINCIPLES Employee Compensation Deficiencies Higher Education - Institutional Aid (CFDA 84.031) Finding Control Number: FA-548-98-02 \r\n \r\nThe Institution will establish and enforce procedures to ensure that time and effort reports are the basis for salaries charged to the Title ill program. Additionally, action will be taken to ensure that all required information is included on the time and effort reports. Procedures will be established to document and communicate to the appropriate personnel that release time has been granted. \r\n \r\n-4- \r\n \r\n SAVANNAH STATE UNWERSITY AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED ruNE 30. 1999 \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nCORRECTIVE ACTIONIRESPONSES \r\nDAVIS-BACON ACT Payment ofPrevailing Wage Rates Not Monitored Higher Education - Institutional Aid (CFDA 84.031) Finding Control Number: FA-548-98-03 \r\nAll affected personnel have been made aware of this requirement. A procedure is being established to make sure that the locality wage information is secured from the U.. S. Department ofLabor and that a comparison is made to wages paid on the project to ensure compliance with the Davis-Bacon Act. \r\nEQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation ofProperty Management System Higher Education -Institutional Aid (CFDA 84.031) Finding Control Number: FA-548-98-04 \r\nThe inventory control system has been revised to include Federal agency source code and program titles. Records from July 1996 to the present have been revised to include the aforementioned information. The University will continue in its efforts to revise records prior to July 1996 where possible. Physical inventories are diligently conducted every tWo years, with one being held as of June 1999. The University is in the process of drafting a procedure manual for Federal equipment disposal. The University has policies and procedures to ensure that Title ill equipment purchases are utilized for the Title ill program. Additionally, as areas within the University undergo renovations, items are stored in the central warehouse until the ordering department is ready to receive them. This practice will continue. The two computers identified in the finding were being used by the Title ill program for which they were intended. To further ensure that items are being used for the purpose for which they were intended, the Director ofTitle ill will conduct a physical check on a sample ofitems twice a year to enhance the procedures. \r\nPERIOD OF AVAILABILIIY Unallowable Expenditures Higher Education -Institutional Aid (CFDA 84.031) Finding Control Number: FA-548-98-05 \r\nProcedures will be established to more diligently monitor grant accounts to ensure that funding is spent within the specified time period and to return any unspent funds to the grantor in a timely fashion. \r\n-5- \r\n \r\n SAVANNAH STATE UNIVERSITY AUDlTEE'S RESPONSE \r\nSUMMARy SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED ruNE 30. 1999 \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND Q!JESTIONED COSTS \r\nCORRECTIVE ACTIONIRESPONSES REPORTING Final Performance Report Prepared with Budget Figures Higher Education - fustitutional Aid (CFDA 84.031) Finding Control Number: FA-548-98-07 This was a deviation from past practices as a result ofturnover in personnel. Future reporting will resume the historical practice ofreflecting actual expenditure~. \r\n-6- \r\n \r\n SECTION ill CURRENT YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n SAVANNAH STATE UNIVERSITY \r\nSCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30. 1999 \r\n \r\nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nCASH AND CASH EQUIVALENTS Inadequate Accounting Procedures Finding Control Number: FS-548-99-0I \r\n \r\nFor the year under review, the University's accounting procedures were insufficient to provide for adequate \r\n \r\ninternal control over the cash accounts and the bank reconciliation process. The following deficiencies were \r\n \r\nnoted: \r\n \r\n) \r\n \r\n1) The cash balance on the operating bank statement was not accurately reconciled to the general ledger at June 30, 1999. An audit adjustment was necessary to correct the general ledger cash balance. \r\n \r\n2) Quarterly bank statements for the Dr. K. B. Raut Endowment bank account were not obtained by the University, therefore the interest earned was not recorded on the general ledger. \r\n \r\n3) Numerous book errors disclosed through the bank reconciliation process were carried as reconciling items for extended periods oftime. \r\n \r\nThese deficiencies were the result ofmanagement's failure to establish internal control procedures which are necessary to adequately safeguard and report the cash and cash equivalents ofthe University. The University should implement appropriate procedures and controls to ensure that bank statements are obtained and reconciled with the accounting records and that required adjustment are' identified and recorded in a timely manner. \r\n \r\nEXPENDITURESILIABlllTIESIDISBURSEMENTS Failure to Monitor Accounts Payable Finding Control Number: FS-548-99-02 \r\nAn examination ofthe accounts payable subsidiary records was performed to test transactions for validity and accuracy. The following deficiencies related to accounts payable were disclosed: \r\n \r\n1) Payments of accounts payable were incorrectly charged to expenditure accounts rather than as liquidation ofaccounts payable. \r\n \r\n2) Residual accounts payable balances were not transferred to the University's surplus account after final payment of all associated invoices. \r\n \r\nThese deficiencies occurred because of the University's failure to have procedures in place to adequately monitor accounts payable. The University should develop and implement policies and procedures to ensure that accounts payable are adequately monitored and properly liquidated on a timely basis. \r\n \r\n- 1- \r\n \r\n SAVANNAH STAIE UNIVERSITY \r\nSCHEDULE OF FINrnNGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 1999 \r\n. FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nEMPLOYEE COMPENSATION Inadequate Payroll Procedures Questioned Cost: $3,926.75 Finding Control Number: FS-548-99-03 \r\nFor the year under review, our examination of employee compensation records for twenty-five employees revealed the following deficiencies: \r\n1) A systematic computer error allowed all ten month employeesto accrue additional leave during the summer months that they were not eligible to receive. According to policy, ten month employees are not eligible to earn leave over the summer months. \r\n2) The vacation and sick leave report revealed that: \r\na) two employees were not charged for leave taken although their personnel files indicate leave was taken. \r\nb) two employees were charged for leave taken; however, no documentation was available to indicate leave was taken. \r\n3) Documentation in one employees personnel file noted that the employee was on leave for an extended illness; however, this documentation did not indicate the specific dates the employee was on leave. \r\n4) One employee received $1,250.00 in compensation in excess of their contract amount without adequate documentation to support the payment. \r\n5) A review of one employees weekly time sheets for six months revealed that: \r\na) one time sheet lacked approval. \r\nb) one time sheet was approved fifty-five days late. \r\nc) three time sheets lacked prior approval for overtime and four time sheets lacked any approval for overtime. \r\nAccording to the Employees Handbook, overtime must have prior approval by the Vice President ofBusiness and Finance before being worked. \r\n6) For the pay period tested, we could not locate two ofthe four checks issued to employees not on direct deposit. \r\n-2- \r\n \r\n SAVANNAH STATE UNNERSITY \r\nSCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED ruNE 3Q. 1999 \r\n \r\nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nEMPLOYEE COMPENSATION Inadequate Payroll Procedures Questioned Cost: $3,926.75 Finding Control Number: FS-548-99-03 \r\n \r\n7) Upon tennination, an employee on direct deposit was also issued a hand drawn check resulting in an overpayment of $2,676.75. \r\n \r\nThese deficiencies were the result ofthe University's failure to have policies and procedures in place and operational to detennine that personnel files contained adequate documentation, sick leave was correctly calculated and recorded, time sheets and overtime were properly authorized, and canceled checks were properly maintained. The University should implement policies and procedures to ensure that personnel files are properly maintained. The University should determine the excessive sick leave hours granted to ten month employees and make the necessary corrections. The University should also take appropriate action to resolve the questioned cost. \r\n \r\nGENERAL LEDGER Balance Sheet Accounts Not Supported by Detail Listings Finding Control Number: FS-548-99-04 \r\n \r\nFor the year under review, the University failed to reconcile the Banner System to the general ledger and could not provide adequate supporting documentation for balance sheet clearing accounts comprised of an accounts receivable balance of$65,005.66, an accounts payable balance of$22,054.39, a financial aid balance of $26,970.31, a returned check balance of $3,233.39 and an unapplied cash balance of (-)$194,897.26. Detail subsidiary records are necessary to support these amounts recorded on the accounting records and financial statements. \r\n \r\nThese account balances resulted from interfaces between the University's Banner Student Registration System \r\n \r\nand the University's accounting system. Management was unable to produce subsidiary records from the \r\n \r\nBanner Student Registration System to support the balances recorded on the accounting system's general \r\n \r\nledger. \r\n \r\n- \r\n \r\nThe University should investigate the balances in the Banner clearing accounts, determine the cause and make the appropriate adjustments to the accounting records to ensure that assets and liabilities are accurately represented on the accounting records. Procedures should be implemented to ensure that detailed subsidiary records are generated fonn the Banner Student Registration System that support the balances on the general ledger. \r\n \r\n-3- \r\n \r\n SAVANNAH STATE UNNERSITY \r\nSCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED ruNE 30. 1999 \r\nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nGENERAL LEDGER Deficiencies in Accounting Procedures Finding Control Number: FS-548-99-05 \r\nOur examination and testing for the year under review revealed the following deficiencies in accounting for financial transactions by Savannah State University: \r\n1) Numerous journal entries to cancel prior year accounts payables were made in Restricted Funds without the approval or knowledge of the Director of Contracts and Grants. A journal entry to cancel a prior year accounts payable was made eleven times. An audit adjustment of $29,202.00 was made to correct these entries. \r\n2) Rental income was incorrectly recorded in the Agency Fund. An audit adjustment of $22,064.50 was made to correctly record the revenue in the Resident Instruction Fund. \r\n3) The University failed to honor a garnishment of $1 ,054.40 issued by the Magistrate Court against an employee which resulted in a lien being placed on the University's bank account. The University subsequently disbursed the funds as required by the court but failed to recover the funds from the employee. An audit adjustment was made to set up an accounts receivable for this amount. \r\n4) Bookstore and athletic ticket sales were inaccurately recorded resulting in an overpayment of sales tax. \r\n5) Numerous audit adjustments were necessary to reconcile salary and travel amounts reported to the Georgia Department of Audits with the amounts recorded as salaries and travel in the general ledger. \r\n6), Various auditing procedures disclosed ten expenditure vouchers could not be located and therefore were not available for examination. \r\nThese deficiencies occurred because the University failed to have adequate accounting policies and procedures in place and operational. The University should review current accounting policies and \r\nprocedures, identify weaknesses and implement procedures to ensure that the accounting records are \r\nmonitored, revenue is properly recorded and salaries and travel are properly reconciled. \r\nGENERAL LEDGER Failure to Correctly Maintain Payroll Operation Agency Funds Finding Control Number: FS-548-99-06 \r\nDuring the year under review, management failed to correctly maintain the Payroll Deductions and Employer Liability Accounts as follows: \r\n-4- \r\n \r\n SAVANNAH STATE UNIVERSITY \r\n \r\nSCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n. \r\n \r\nYEAR ENDED JUNE 30. 1999 \r\n \r\nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nGENERAL LEDGER Failure to Correctly Maintain Payroll Operation Agency Funds Finding Control Number: FS-548-99-06 \r\n1) Variances existed between monthly receipts and disbursements for many of the Payroll Operation Agency Accounts. Management failed to perfonn monthly reconciliations and. to identify variances. \r\n2) The Employee Payroll Deduction (Health, Life and Dental) Accounts had a net deficit of $22,013.87. Also, the U. S. Savings Bond Account had a deficit balance of$I,076.25. \r\n3) The Employer Liability (Health and Life) Accounts had a net balance of $146,194.27 which was not identified as obligated. \r\nThe deficiencies were the result of the management's failure to properly monitor and reconcile the Payroll Operation Agency Funds. Management should implement policies and procedures to ensure payroll changes and adjustments are made timely and monthly reconciliationsofreceipts and disbursements are perfonned. \r\nGENERAL LEDGER Donnant Restricted Funds Finding Control Number: FS-548-99-07 \r\nFor the year under review, eleven restricted fund projects had no activity. It was noted that the grant period had ended on all eleven projects; however, fund balances remained at June 30, 1999. \r\nThese donnant accounts are a result ofmanagement's failure to monitor the activity occurring in the Restricted Funds and failure to return excess funds promptly to the grantor when the project is complete. The University should implement procedures that will provide proper monitoring ofthe Restricted Funds and grant periods to ensure that funds are returned to the grantor when the project is complete. The University should contact the grantors to detennine ifthe donnant account funds are to be returned. \r\nGENERAL LEDGER Inadequate Documentation ofJoumal Entries Finding Control Number: FS-548-99-08 \r\nFor the year under review, numerous journal entries were not available for examination and others lacked adequate documentation. In addition, the University failed to retain computer generated journal entry transactions for six months. These situations occurred because of the University's failure to ensure that journal entries were properly documented and maintained. The University should develop procedures to ensure that all journal entry transactions are properly maintained and supported by adequate documentation. \r\n \r\n-5- \r\n \r\n SAVANNAH STATE UNIVERSITY \r\nSCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 1999 \r\n \r\nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nGENERAL LEDGER Inadequacies in Travel AdvanceslPrepaid Travel Finding Control Number: FS-548-99-09 \r\n \r\nAn examination of prepaid travel and travel advances for the year under review revealed the following deficiencies: \r\n \r\n1) Travel advances and prepaid travel to employees were not monitored thrO\\lghout the year. As a result, outstanding balances for travel advances and prepaid travel were not cleared in a timely manner. \r\n \r\n2) Travel advances were incorrectly recorded between funds. In some cases, travel advances were recorded in one fund and the offsetting credits to clear the advances were incorrectly recorded in another fund. \r\n \r\nThe deficiencies occurred because of management's disregard of the University's travel policy and management's failure to properly account for travel advances and prepaid travel. The University's travel policy states \"advances must be cleared within three days subsequent to returning to campus or the conclusion of the event\". The University should follow policies and procedures to ensure that travel advances and prepaid travel are correctly recorded in the proper fund, monitored and cleared in a timely manner. \r\n \r\nGENERAL LEDGER Report Not Reconciled to Accounting Records Finding Control Number: FS-548-99-10 \r\n \r\nFor the year under review, the University's H.O.P.E. Scholarship Program reconciliation report, which was provided to the Georgia Sttident Finance Commission, did not reconcile with the accounting records as indicated below: \r\n \r\nReport Item \r\n \r\nPer H.O.P.E. Reconciliation \r\n \r\nPer Accounting \r\nRecords \r\n \r\nUnreconciled Difference \r\n \r\nAmount Awarded to Students \r\n \r\n$472,347.00 \r\n \r\n$468,755.52 $ 3,591.48 \r\n \r\nThe unreconciled difference identified above occurred because management failed to reconcile accounting records to the H.O.P.E. Scholarship Program reconciliation report at year end. \r\n \r\nProcedures should be established to ensure that all H.O.P.E. Scholarship Program reconciliation reports are reconciled to the University's formal accounting records. The University should contact the Georgia Student Finance Commission regarding resolution of this finding. \r\n \r\n-6- \r\n \r\n SAVANNAH STATE UNNERSITY \r\nSCHEDULE OF FlNPINGS AND QlJESTIONED COSTS \r\nYEARENPED JUNE 30.1999 \r\nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nALLOWABLE COSTS/COST PRINCIPLES Employee Compensation Deficiencies Questioned Costs: $81,444.33 Finding Control Number: FA-548-99-01 \r\nOur examination of salaries for ten employees charged to various Federal programs revealed the following deficiencies: \r\n1) It was detennined that salaries were charged to Federal programs based on budgeted amounts rather than actual time and effort reports. An examination oftime and effort reports revealed the following problems: \r\na. The time and effort reports for nine employees were not available for examination or were incomplete. \r\nb. Time and effort reports for two employees disclosed that those employees worked on Federal programs other than the programs charged. \r\nc. A summer salary for one individual was charged to a Federal program but was not documented by time and effort reports. Determination could not be made as to whether the employee actually worked on the Federal program. \r\nd. The percentage of effort as reflected on time and effort reports for four employees failed to support the salary distributions between Federal programs and non Federal programs. \r\nOMB Circular A-21, requires that activity reports or other payroll documents used as original documentation for payroll charges be prepared and signed by the employee and the responsible official when salaries are charged to a Federal program. Time and effort reports should reflect 100% of an individual's time spent on all activities performed and should be supported by other documentation such as class schedules. \r\n2) Three employees were paid stipends that were incorrectly charged to Federal programs. The stipends were in addition to regular salaries; however, the work performed was part of the employees' regular departmental workload. Also, summer stipends paid for work beyond normal duties were not documented by appropriate time and effort reports. \r\nOMB Circular A-21, requires that additional compensation paid to employees above the base salary is allowed only in cases where the duties are in addition to the regular departmental workload. \r\nThe deficiencies described above resulted in questioned costs, for the following Federal Programs: \r\n-7- \r\n \r\n SAVANNAH STATE UNNERSITY \r\nSCHE])ULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 1999 \r\n \r\nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nALLOWABLE COSTS/COST PRINCIPLES Employee Compensation Deficiencies Questioned Costs: $81,444.33 Finding Control Number: FA-548-99-01 \r\n \r\nFederal Program \r\n \r\nCFDA \r\n \r\nQuestioned Cost \r\n \r\nNational Science Foundation Water Quality Management Planning Program Higher Education Institutional Aid Health Career Opportunity Program Blood Diseases and Resources Research Extramural Associate Research Development \r\n \r\n47.0FA 66.454 84.031 93.822 93.839 93.865 \r\n \r\n$ 3,612.74 16,533.20 . 29,272.79 13,149.50 12,615.10 6.261.00 \r\n \r\nTotal \r\n \r\n$.81 a444.33 \r\n \r\nThese conditions occurred because of management's failure to ensure that all time and effort reports were being properly prepared by employees and that salaries were correctly paid to individuals who performed the services. Management should ensure that complete time and effort sheets are prepared by all employees whose salaries are charged to a Federal program. Time and effort reports should contain all required elements so that management can rely on the reports to support accounting and payroll records. Management should ensure that stipends paid to employees for work in addition to employees' regular departmental workloads are properly documented. The University should contact the grantor agencies to resolve these questioned costs. \r\n \r\nFederal Programs/Awards Affected: Higher Education - Institutional Aid (CFDA 84.031) \r\nU. S. Department of Education Researc~ and Development Cluster Programs \r\nNational Science Foundation Other Financial Assistance (CFDA 47.0FA) \r\nEnvironmental Protection Agency Water Quality Management Planning Program (CFDA 66.454) \r\nU. S. Department of Health and Human Services Health Career Opportunity Program (CFDA 93.822) Blood Diseases and Resources Research (CFDA 93.839) Extramural Associate Research Development (CFDA 93.865) \r\n \r\n-8- \r\n \r\n SAVANNAH STAIB UNNERSITY \r\nSCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 1999 \r\n, FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nDAVIS-BACON ACT Payment ofPrevailing Wage Rates Not Monitored Higher Education - Institutional Aid (CFDA 84.031) Finding Control Number: FA-548-99-02 \r\ncm For the year under review, it was noted that the University did not monitor the wages paid by two contractors \r\nworking on Title ill construction projects. Federal regulations, as reflected in Appendix A to 34 74, require that all laborers employed by the contractor who work on construction contracts in excess of $2,000.00 financed by Federal assistance funds must be paid wages not less than those established for the locality ofthe project (prevailing wage rates). This condition resulted from management's failure to ensure that (1) all individuals at the University were aware oftheir responsibilities regarding the Davis-Bacon Act and (2) the requirements ofthe Davis-Bacon Act were being met. The University should take steps to ensure that wages paid for construction projects financed with Federal funds are monitored and are in compliance with the provisions of the Davis-Bacon Act. \r\nELIGffiILITY Overpayment of Student Financial Aid Weaknesses in Internal Control Structure Student Financial Aid Cluster Program Questioned Cost: $6,321.05 Finding Control Number: FA-548-99-03 \r\nA sample of twenty six student files was selected to determine if financial aid was properly calculated, awarded and disbursed to eligible students. The items sampled contained financial aid disbursements of \r\n$306,372.60 out ofa population of$14,676,506.73. Our examination revealed overpayments to five students \r\nwho were disbursed a total of$6,321.05 in excess ofneed based on estimated cost of attendance. TitleN of the Higher Education Act of 1986 states an institution must coordinate Title N programs with other Federal and non Federal student financial aid programs it administers and must establish controls to preclude the awarding of assistance in excess of a student's financial need. These errors were caused by management's failure to review awards before disbursements were made. A projection ofthese errors to the total population resulted in likely questioned cost in excess of $10,000.00. \r\nIn addition, one student's Promissory Note was not signed until after the disbursement date of the loan. This deficiency occurred because of management's failure to implement procedures that would prevent the disbursing of funds prior to obtaining a signed promissory note as required by the Student Financial Aid Handbook. \r\nThe University should develop and implement policies and procedures to ensure that adequate controls over the eligibility process are in place and that student financial aid awards are properly reviewed and approved prior to disbursement. Also, the University should develop and implement a monitoring process to ensure that the controls are being followed. The University should contact the U. S. Department of Education regarding resolution ofthis finding. \r\n-9- \r\n \r\n SAVANNAH STATE UNIVERSITY \r\nSCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 1999 \r\nFEI\u003eERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nELIGffiILITY Overpayment of Student Financial Aid Weaknesses in Internal Control Structure Student Financial Aid Cluster Program Questioned Cost: $6,321.05 Finding Control Number: FA-548-99-03 \r\nFederal ProlU\"ams/Awards Affected: Student Financial Aid Cluster Programs \r\nU. S. Department ofEducation Federal Supplemental Education Opportunity Grant (CFDA 84.007) Federal Work-Study Program (CFDA 84.033) Federal Perkins Loan Program (CFDA 84.038) Federal Pell Grant Program (CFDA 84.063) Federal Direct Student Loan Program (CFDA 84.268) \r\nELIGffiILITY Failure to Conduct Meetings for Satisfactory Academic Progress Appeals Student Financial Aid Cluster Program Finding Control Number: FA-548-99-04 \r\nFor the year under review, student :financial aid-satisfactory academic progress appeals were approved by the Assistant Financial Aid Director rather than the University's Student Financial Aid Appeals Committee. The University's Student Financial Aid Appeals Committee failed to meet once each semester to hear student appeals of:financial aid suspension as prescribed in the University's 1998-2000 General Catalog. Information regarding the time, place and decisions ofthe Committee's meetings was not available. \r\nThis deficiency resulted from the Committee's failure to meet as required to review student financial aid satisfactory academic progress appeals and make-its recommendations. Management should establish controls to ensure that meetings are conducted once each semester to hear financial aid appeals and that adequate documentation ofthe Appeals Committee decisions is maintained. -. \r\nFederal ProlU\"ams/Awards Affected: Student Financial Aid Cluster Programs \r\nU. S. Department ofEducation Federal Supplemental Education Opportunity Grant (CFDA 84.007) Federal Work-Study Program (CFDA 84.033) Federal Pell Grant Program (CFDA 84.063) Federal D,irect Student Loan Program (CFDA 84.268) \r\n-10 - \r\n \r\n SAVANNAH STATE UNNERSITY \r\nSCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1999 \r\nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nEQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation ofProperty Management System Higher Education - Institutional Aid (CFDA 84.031) Questioned Cost: $6,030.12 Finding Control Number: FA-548-99-05 \r\nFor the year under review, our examination included a review ofthe internal accounting controls utilized by the University in maintaining their property management system. Our examination also included testing the system for compliance with Federal laws and regulations. The following conditions existed: \r\n1) The University's response to a prior year finding concerning equipment and real property management, indicated that the inventory control system had been revised to include Federal agency source code and program titles. However, as ofJune 30, 1999, the property management system had not been updated to identify Federal equipment purchases by program title or award number. This deficiency is systemwide and affects all Federal awards. \r\n2) The University was unable to ensure appropriate Federal agencies were notified when disposing of equipment. This occurred because the property management system did not identify equipment purchased by grant award number in the property management records. \r\n3) A sample of58 current year equipment purchases from Title ill funds was examined. This examination \r\nrevealed one printer purchased in June 1999 at a cost $1,298.12 was still in its original shipping container as ofthe last day offieldwork. \r\n4) The audit report for June 30, 1998, indicated that two computers were not being used by the Title ill program for which they were acquired. The University has responded that the computers were being utilized in the Title ill program as required. However, our examination noted that these computers were not being utilized in the Title ill program as indicated by the University. The cost ofthese computers was $4,732.00. \r\nThe deficiencies above occurred because the University did not have internal controls in place to ensure compliance with Federal requirements for equipment as set forth in 34 CFR 74 and OMB Circular A-IlO, Subpart C.34. The University should establish policies and procedures to ensure that equipment purchases are properly identified in the property records and are maintained in accordance with Federal requirements. Also, the University should establish policies and procedures to ensure Title ill equipment purchases are utilized for the Title ill program. The U. S. Department of Education should review these matters and determine appropriate action by the University to resolve this finding. \r\n-11- \r\n \r\n SAVANNAH STATE UNNERSITY \r\nSCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED ruNE 30. 1999 \r\n. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nPERIOD OF AVAILABILITY Failure to Properly Refund to Grantor Agency Federal Direct Student Loan Program (CFDA 84.268) Finding Control Number: FA-548-99-06 \r\nAt June 30, 1999, the University's accounting records reflected $27,687.85 ofFederal. Direct Student Loan proceeds that had accumulated as a result of student withdrawals for the 1996 program award. These funds had not been refunded to the grantor as required by 34 CPR 685.211(d). \r\nThis condition occurred because ofmanagement's failure to have written policies and procedures in place to ensure that refunds are returned to the grantor agency as required by Federal regulations. Management should implement procedures to ensure that refunds are remitted in a tiJpely manner according to Federal regulations. \r\nREPORTING Expenditures in Excess ofAuthorization Federal Pell Grant Program (CFDA 84.063) Finding Control Number: FA-548-99-07 \r\nThe Student Payment Summary (SPS) report and the Statement ofAccount report Federal Pell Grant Program expenditures to the U. S. Department of Education. These reports were not reconciled to the accounting records for the year under review as required by Federal regulations. The Statement of Account report indicated that the University was authorized to expend $3,503,150.00 in Federal Pell Grant Program funds in the state fiscal year 1999. The University's accounting records however, reflect $3,566,619.11 for fiscal year 1999 Pell Grant expenditures. As a result the University expended $63,469.11 in excess of the authorized amount. In order to be reimbursed for the excess Pell Grant Program expenditures, the University, in conformity with Federal Statutes, must certify the validity of these payments to the U. S. Department of Education. The Federal agency can then provide appropriate adjustments ofthe fiscal year 1999 authorized amount in order to make the funds available to the University. \r\nREPORTING Inaccurate Reporting Student Financial Aid Cluster Programs Finding Control Number: FA-548-99-08 \r\nThe University's Fiscal Operations and Application to Participate (FISAP) report due October 1, 1999, included fiscal year 1998 enrollment data instead of fiscal year 1999 enrollment data. The Blue Book, Chapter 6, Sec. 2.2.3 requires the University to ensure that the information reported is accurate. The enrollment data is used to determine the Federal Campus - Based program allocations. \r\nIn addition, the Federal Pell Grant expenditures reported on the FISAP report did not agree with the final Grants Administration and Payment System (GAPS) report as required by the Blue Book, Chapter 6, Sec. 2.2.4. \r\n-12- \r\n \r\n SAVANNAH STATE UNIVERSITY \r\nSCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 3Q. 1999 \r\nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nREPORTING Inaccurate Reporting Student Financial Aid Cluster Programs Finding Control Number: FA-548-99-08 \r\nThe inaccurate reporting described above was the result ofmanagement's failure to obtain correct data from which to prepare the FISAP. The University should implement procedures to ensure that the infonnation reported on the FISAP is accurate. \r\nFederal Programs/Awards Affected: Student Financial Aid Cluster Programs \r\nU. S. Department of Education Federal Supplemental Educational Opportunity Grant (CFDA 84.007) Federal Work-Study Program (CFDA 84.033) Federal Pell Grant Program (CFDA 84.063) \r\nREPORTING Failure to Prepare Reconciliations Federal Direct Student Loan Program (CFDA 84.268) Finding Control Number: FA-548-99-09 \r\nFor the year under review, the University failed to perfonn monthly reconciliations ofFederal Direct Loan disbursements recorded on the College and University Fund Accounting System (CUFA) to the Loan Origination Center (LOC) Direct Loan School Account Statement as required by Chapter 11 of the Federal Student Financial Aid Handbook. \r\nThese deficiencies were a result ofmanagement's failure to comply with Chapter 11 of the Federal Student Financial Aid Handbook. The University should implement adequate controls to ensure that the reconciliations are accurately completed on a timely basis and supported by the accounting records. Documentation should be maintained to support any variances. \r\nSPECIAL TEST AND PROVISIONS Failure to Disclose Federal Funding in Public Announcement Higher Education - Institutional Aid (CFDA 84.031) Finding Control Number: FA-548-99-1 0 \r\nFor the year under review, the University issued two bid solicitations that did not disclose the dollar amount ofFederal funds for the project and the percentage ofthe total cost ofthe project to be financed with Federal funds as required by Attachment S of the Federal Grant Award. Management should review Attachment S of the Federal Grant Award and comply with the conditions under Public Law 105-78, Sec. 508. \r\n- 13 - \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bs25-b1997-h98","title":"Audit report, state of Georgia, Savannah State University, Savannah, Georgia, year ended June 30, 1998","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["year ended June 30, 1996: Georgia. Department of Audits, issuing body.","year ended June 30, 1997-year ended June 30, 1999: Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, Chatham County, 31.97402, -81.09243"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["1997/1998"],"dcterms_description":["Began with: Year ended June 30, 1996; ceased with: Year ended June 30, 1999.","Report year ends June 30.","Description based primarily on print version record.","Year ended June 30, 1999, released in 2000? (Georgia Government Publications database, viewed January 9, 2024)."],"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":["Savannah State University (Ga.)--Appropriations and expenditures","Financial statements--Georgia","Auditors' reports--Georgia"],"dcterms_title":["Audit report, state of Georgia, Savannah State University, Savannah, Georgia, year ended June 30, 1998"],"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-bs25-b1997-h98"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bs25-b1997-h98"],"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":"IT/\\ \r\nA100 \r\n,(\\1 \r\n$?'c; {q~1-1g \r\n \r\nAUDIT REPORT STATE OF GEORGIA SAVANNAH STATE UNIVERSITY SAVANNAH, GEORGIA YEAR ENDED JUNE 30,1998 \r\n \r\nSTATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 WASHINGTON STREET \r\nATLANTA, GEORGIA 30334-8400 \r\n \r\n SAVANNAH STATE UNIVERSITY - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \r\n \r\nEXIllBITS \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 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\n21 \r\n \r\nG COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, \r\n \r\nAND OTHER CHANGES \r\n \r\nUNRESTRICTED \r\n \r\n23 \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\n24 \r\n \r\n2 \r\n \r\nLOTTERY FOR EDUCATION \r\n \r\n27 \r\n \r\n3 CHANGES IN INVESTMENT IN PLANT \r\n \r\n28 \r\n \r\n4 SCHEDULE OF FUND BALANCES \r\n \r\nCURR, ENT FUNDS AND PLANT FUNDS \r\n \r\n30 \r\n \r\n5 RECONCILIATION OF SALARIES AND TRAVEL \r\n \r\n32 \r\n \r\nSECTIONll AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n SAVANNAH STATE UNIVERSITY - TABLE OF CONTENTS - \r\n.SECTION ill \r\nCURRENT YEAR FINDINGS AND QUESTIONED COSTS  \r\nSCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n CLAUDE L. VICKERS \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\nDecember 15, 1998 \r\n \r\nGovernor ofthe State of Georgia Members ofthe General Assembly of Georgia Members ofthe Board of Regents ofthe University System of Georgia \r\nand Honorable Carlton E. Brown, President Savannah State University \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements (Exhibits A through D) of Savannah State University as of and for the year ended June 30, 1998. These financial statements are the responsibility of the University's management. Our responsibility is to express an opinion on these fmancial statements based on our audit. \r\nExcept as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perfonn the audit to obtain reasonable assurance about whether the fmancial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. \r\nGovernmental Accounting Standards Board Technical Bulletin 98-1, Disclosures About Year 2000 Issues, \r\nrequires disclosure of certain matters regarding the year 2000 issue. Savannah State University has included such disclosures in the Notes to the Financial Statements. Because of the unprecedented nature of the year 2000 issue, its effects and the success ofrelated remediation efforts will not be fully determinable until year 2000 and thereafter. Accordingly, insufficient audit evidence exists to support Savannah State University's disclosures with respect to the year 2000 issue made in the Notes to the Financial Statements. Further, we do not provide assurance that Savannah State University is or will be year 2000 ready, that Savannah State University's year 2000 remediation efforts will be successful in whole or in part, or that parties with which Savannah State University does business will be year 2000 ready. \r\n98ARL-62A \r\n \r\n As described in Note 1 to the financial statements, Georgia Law and State budgetary policy require the University to prepare its financial statements on a basis which is not consistent with generally accepted accounting principles with respect to the recording of encumbrances as expenditures and liabilities. To conform with generally accepted accounting principles, encumbrances should be recorded as a reservation of fund balance. The effects on the financial statements ofthis departure from generally accepted accounting principles were not reasonably determinable, but are believed to be material. \r\nAs disclosed in Note 1 to the fmancial 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 $895,173.37 as of June 30, 1998, and the net change in fund balance for the year ended June 30, 1998, would be decreased by $30,402.18. \r\nIn our opinion, except for the effects of such adjustments, if any, as might have been determined to be necessary had we been able to examine sufficient evidence regarding year 2000 disclosures, and except for the effects on the financial statements ofthe matters discussed in the fourth and fifth paragraphs, the financial statements referred to above present fairly, in all material respects, the financial position of Savannah State University as of June 30, 1998, and the changes in fund balances and the current operating funds revenues, expenditures, and other changes for the year then ended in conformity with generally accepted accounting principles. \r\nOur audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplementary information (Exhibits E through G and Schedules 1 through 5) is presented for purposes of additional analysis and is not a required part of the financial statements of Savannah State University. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, except for the effects of such adjustments, ifany, as might have been determined to be necessary had we been able to examine sufficient evidence regarding year 2000 disclosures, and except for the effects ofthe matters discussed in the fourth and fifth paragraphs, such information is fairly presented in all material respects in relation to the financial statements taken as a whole. \r\nRespectfully submitted, \r\n~~ \r\nClaude L. Vickers State Auditor \r\nCLV:gp 98ARL-62A \r\n \r\n FINANCIAL STATEMENTS - 1- \r\n \r\n SAVANNAH STATE UNIVERSITY COMBINED BALANCE SHEET ALL FUND GROUPS JUNE 30, 1998 \r\n \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable Inventories Prepaid Items Due from Other Fund Groups Investment in Plant \r\nTotal Assets \r\nLIABILITIES AND FUND BALANCES \r\nLiabilities Accounts Payable Salaries Payable Student Deposits Deferred Revenue Tuition and Fees Deposits Held in Custody for Others Due to Other Fund Groups \r\nTotal Liabilities \r\nFund Balances U. S. Government Grants Refundable Institutional Loans - Restricted Endowment Term Endowment Net Investment in Plant Restricted Unrestricted \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\nCURRENT FUNDS \r\n \r\nUNRESTRICTED \r\n \r\nRESTRICTED \r\n \r\nLOAN FUNDS \r\n \r\n$ \r\n \r\n1.899.364.59 $ \r\n \r\n393.325,71 \r\n \r\n692,443.81 \r\n \r\n14,060.55 \r\n \r\n12,027.73 \r\n \r\n112,368.26 780,704,35 $ \r\n \r\n887.270.49 \r\n \r\n$ \r\n \r\n3.011.222.39 $ \r\n \r\n893,072.61 $ _ ......8.8.7.2=70....4..9= \r\n \r\n$ \r\n \r\n1,459,238.79 \r\n \r\n10,719,88 \r\n \r\n94.239,00 \r\n \r\n660.662.25 \r\n \r\n$ \r\n \r\n2,224,859.92 \r\n \r\n$ \r\n \r\n12.027,73 \r\n \r\n$ \r\n \r\n12,027.73 \r\n \r\n$ \r\n \r\n800,125.38 \r\n \r\n75,117.38 \r\n \r\n$ \r\n \r\n893.072.61 \r\n \r\n$ \r\n \r\n786,362.47 \r\n \r\n$ \r\n \r\n786,362.47 $ \r\n \r\n893,072,61 $ \r\n \r\n875.242.76 \r\n \r\n$ \r\n \r\n3.011.222.39 $ \r\n \r\n893.072.61 $ ====.8=8..7.2.7..0....4..9. \r\n \r\nThe notes to the financial statements are an integral part of this statement. -2- \r\n \r\n EXHIBIT \"A\" \r\n \r\nENDOWMENT AND SIMILAR \r\nFUNDS \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$ \r\n \r\n804.283.18 $ \r\n \r\n765.022.70 $ \r\n \r\n453.426.69 \r\n \r\n$ \r\n \r\n350.849.78 $ \r\n \r\n4.385.315.20 \r\n \r\n164.958.64 \r\n \r\n10.533.56 \r\n \r\n2.236.792.75 \r\n \r\n692.443.81 \r\n \r\n14.060.55 \r\n \r\n12.027.73 \r\n \r\n$ 57.481.3n.37 . \r\n \r\n57.481.377.37 \r\n \r\n$ \r\n \r\n804.283.18 $ \r\n \r\n929.981.34 $ \r\n \r\n453.426.69 $ \r\n \r\n57.481.377.37 $ \r\n \r\n361.383.34 $ .........0;64;;;;82;;;;20.1.7..4..1.... \r\n \r\n$ \r\n \r\n926.375.84 $ \r\n \r\n54.092.24 \r\n \r\n$ \r\n \r\n926.375.84 $ \r\n \r\n54.092.24 \r\n \r\n$ \r\n \r\n153.314.09 $ \r\n \r\n2.593.020.96 \r\n \r\n10.719.88 \r\n \r\n94.239.00 \r\n \r\n208.069.25 \r\n \r\n660.662.25 208.069.25 \r\n12.027.73 \r\n \r\n$ \r\n \r\n361.383.34 $ \r\n \r\n3.578.739.07 \r\n \r\n$ \r\n \r\n599.554.96 \r\n \r\n204.728.22 \r\n \r\n$ \r\n \r\n$ \r\n \r\n804.283.18 $ \r\n \r\n3.605.50 $ 3.605.50 $ \r\n \r\n$ 399.334.45 399.334.45 $ \r\n \r\n57.481.377.37 57.481.377.37 \r\n \r\n$ \r\n \r\n800.125.38 \r\n \r\n75.117.38 \r\n \r\n599.554.96 \r\n \r\n204.728.22 \r\n \r\n57.481.3n.37 \r\n \r\n893.072.61 \r\n \r\n1.189.302.42 \r\n \r\n$ \r\n \r\n61,243.278.34 \r\n \r\n$ \r\n \r\n804.283.18 $ \r\n \r\n929.981.34 $ \r\n \r\n453.426.69 $ 57.481.3n.37 $ \r\n \r\n361.383.34 $ -===.....,;;;64;;;;82;;;;2;;,;.0.1,;,;7.41.... \r\n \r\n-3- \r\n \r\n SAVANNAH STATE UNIVERSITY COMBINED STATEMENT OF CHANGES IN FUND BALANCES \r\nAlL FUND GROUPS YEAR ENDED JUNE 30. 1998 \r\n \r\n EXHIBIT-B- \r\n \r\nENDOWMENT AND SIMILAR \r\nFUNDS \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$ \r\n \r\n$ \r\n \r\n145,803.72 \r\n \r\n226.39 \r\n \r\n$ \r\n \r\n146,030.11 $ \r\n \r\n1,332,127.00 38,015.00 66,345.10 \r\n22,690.01 $ 3,577.26 \r\n1,462.754.37 $ \r\n \r\n$ 17,760.00 \r\n17,760.00 $ \r\n \r\n$ \r\n41,608.00 \r\n1,884,614.02 1.427,896.80 \r\n113,529.91 589,577.00 4,057,225.73 $ \r\n \r\n29,233,587.60 \r\n1,332,127.00 38,015.00 \r\n17,672,789.00 445,287.63 55,080.12 472,463.28 \r\n37,356.56 42,400.60 \r\n328.10 11,217.41 \r\n133,641.91 5,722.41 \r\n1,884,614.02 \r\n1,427,896.80 113,529.91 589,577.00 \r\n2.898.00 \r\n53,498,532.35 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n42,084,505.73 \r\n \r\n4,368,715.01 \r\n \r\n191,606.92 \r\n \r\n47,364.08 \r\n \r\n2,165.00 2,219.53 \r\n316.96 \r\n \r\n$ \r\n \r\n1,427,896.80 $ \r\n \r\n113,529.91 \r\n \r\n1,541,426.71 \r\n \r\n31,252.07 \r\n \r\n52,893.50 \r\n \r\n84,145.57 \r\n \r\n$ \r\n \r\n153,099.57 \r\n \r\n153,099.57 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n1,459.148.87 $ \r\n \r\n166,423.41 $ \r\n \r\n153,099.57 $ \r\n \r\n48,475,565.08 \r\n \r\n$ \r\n \r\n15,862.81 \r\n \r\n$ \r\n \r\n15,862.81 \r\n \r\n$ \r\n \r\n161,892.92 $ \r\n \r\n642,390.26 \r\n \r\n$ \r\n \r\n804,283.18 $ \r\n \r\n$ $ 3,605.50 $ 0.00 \r\n3,605.50 $ \r\n \r\n221,134.18 221,134.18 \r\n72,470.77 $ 326,863.68 \r\n \r\n$ \r\n$ 3,904,126.16 $ 53,577',251.21 \r\n \r\n0.00 0.00 0.00 5,022,967.27 56,220,311.07 \r\n \r\n399,334.45 $ \r\n \r\n57.481,377.37 $ \r\n \r\n61,243,278.34 \r\n \r\n-5- \r\n \r\n SAVANNAH STATE UNIVERSITY STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, \r\nAND OTHER CHANGES YEAR ENDED JUNE 30, 1998 \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 Endowment Income Sales and Services of Educational Activities Sales and Services of Auxiliary Enterprises Other Sources \r\nTotal Revenues \r\nEXPENDITURES AND MANDATORY TRANSFERS \r\nEducational and General Instruction Research Public Service Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships Mandatory Transfers for: Investment Income for Endowment Principal \r\nAuxiliary Enterprises Student Housing Faculty and Staff Housing Food Services Stores and Shops Intercollegiate Athletics Other Service Units \r\nTotal Expenditures and Mandatory Transfers \r\nOTHER TRANSFERS AND ADDITIONS/(DEDUCTIONSl \r\nExcess of Restricted Receipts over Transfers to Revenues \r\nTransfers for Renewals and Replacements 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\nUNRESTRICTED RESTRICTED \r\n \r\nTOTAL (Memorandum \r\nOnly) \r\n \r\n$ 18,003,027,00 \r\n \r\n$ 18,003,027.00 \r\n \r\n5,816,831,15 \r\n \r\n5,816,831.15 \r\n \r\n191,606,92 $ 16,801,098.28 \r\n \r\n16,992,705,20 \r\n \r\n540,973,63 \r\n \r\n540,973,63 \r\n \r\n54,442.71 \r\n \r\n54,442.71 \r\n \r\n283,492,52 \r\n \r\n283,492,52 \r\n \r\n4,950,00 \r\n \r\n4,950,00 \r\n \r\n38,617,04 \r\n \r\n38,617.04 \r\n \r\n4,713,000.19 \r\n \r\n4,713,000,19 \r\n \r\n470,505,30 \r\n \r\n470,505,30 \r\n \r\n$ 29,233,587,60 $ 17,684,957,14 $ 46,918,544,74 \r\n \r\n$ 11,258,451.n $ 454,750,68 $ 11,713,202.45 \r\n \r\n24,573,00 \r\n \r\n446,960,59 \r\n \r\n471,533.59 \r\n \r\n763,596,63 \r\n \r\n1,260,519.46 \r\n \r\n2,024,116,09 \r\n \r\n2,470,153.34 \r\n \r\n598,001,89 \r\n \r\n3,068,155.23 \r\n \r\n2,086,421,81 \r\n \r\n2,086,421,81 \r\n \r\n4,607,804,94 \r\n \r\n885,n1.14 \r\n \r\n5,493,576,08 \r\n \r\n2,996,359.47 \r\n \r\n2,996,359.47 \r\n \r\n192,187.63 \r\n \r\n14,038,953.38 \r\n \r\n14,231,141.01 \r\n \r\n15,862,81 \r\n \r\n15,862,81 \r\n \r\n1,387,351,94 14,388,57 \r\n1,304,806,50 168,620,40 \r\n1,176,432.34 317,115,26 \r\n \r\n1,387,351.94 14,388.57 \r\n1,304,806.50 168,620.40 \r\n1,176,432.34 317,115,26 \r\n \r\n$ 28,768,263.60 $ 17,700,819.95 $ 46,469,083.55 \r\n \r\n$ 548,657,39 $ 548,657,39 \r\n \r\n$ \r\n \r\n-221,134,18 \r\n \r\n-221,134,18 \r\n \r\n133,622,06 \r\n \r\n133,622,06 \r\n \r\n-47,364.08 \r\n \r\n-47,364,08 \r\n \r\n$ .134,876,20 $ 548,657,39 $ 413,781.19 \r\n \r\nNet IncreaseJ(Decrease) in Fund Balances \r\n \r\n$ \r\n \r\nThe notes to the financial statements are an integral part of this statement -6- \r\n \r\n330,447,80 $ 532,794.58 $ 863,242.38 \r\n \r\n SAVANNAH STATE UNNERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30. 1998 \r\n \r\nEXHIBIT liD\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nREPORTING ENTITY Savannah State University is one ofthirty-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 Savannah State University as a separate reporting entity. \r\nThe Board of Regents has constitutional authority to govern, control and manage the University System of Georgia. This authority includes but is not limited to the power to designate management, the ability to significantly influence operations, the authority to control institutions' budgets, the power to determine allotments of State funds to member institutions and the authority to prescribe accounting systems and administrative policies for member institutions. Savannah State University does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, Savannah State University is considered an organizational unit of the Board ofRegents of the University System of Georgia reporting entity for financial reporting purposes because of the significance of its legal, operational, and fmancial 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 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-7- \r\n \r\n SAVANNAH STATE UNNERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30. 1998 \r\n \r\nEXHlBIT\"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\nENDOWMENT AND SIMILAR FUNDS \r\n~ The fund used to account for endowment funds and tenn endowment funds. Endowment funds are subject to the restrictions ofgift instruments requiring that the principal be invested in perpetuity and income only be utilized. Term endowment funds are similar to endowment funds except that upon the passage of a stated period oftime or the occurrence ofa particular event, all or part ofthe principal may be expended. \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 tptal 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 of physical 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, staffmembers, and organizations. \r\nBASIS OF ACCOUNTING Except as otherwise disclosed in these notes, the financial statements are prepared on the modified accrual basis ofaccounting, which is materially the same as the accrual basis ofaccounting applicable to colleges and universities prescribed in the American Institute ofCertified 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 generallong-tenn debt, are recorded at the time liabilities are incurred and revenues are recorded when available and measurable to finance expenditures ofthe fiscal period. \r\n \r\n-8- \r\n \r\n SAVANNAH STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30. 1998 \r\n \r\nEXHIBIT\"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF ACCOUNTING Contractual obligations for goods and services which have not been received at the end of the 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 generally accepted accounting principles, which provide for the recording of encumbrances as a reservation of fund 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 of the 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 $895,173.37 and the related net current year expenditure of $30,402.18 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 of Georgia, 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 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\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\nRESTATEMENT OF PRIOR YEAR FUND BALANCE In fiscal year 1998, Savannah State University implemented GASB Statement 31, \"Accounting and Financial Reporting for Certain Investments and for External Investment Pools\". The statement requires certain investments to be reported at fair value rather than at cost. As a result, the beginning fund balance of the Current Funds- Restricted fund has been decreased by $914.64 to implement this change in accounting \r\n-9- \r\n \r\n SAVANNAH STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1998 \r\n \r\nEXHIBIT\"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nRESTATEMENT OF PRIOR YEAR FUND BALANCE principle. The beginning fund balance ofthe Endowment and Similar Funds has been increased by $249.77 for this change in accounting principle. \r\n \r\nBUDGET The Board of Regents of the University System of Georgia - Administrative Central Office receives State appropriation allotments for units ofthe University System of Georgia. The appropriated budget is adopted at the departmental level and represents appropriations provided by the Amended Appropriations Act of 19971998. The appropriated budget covers current funds and plant funds, except for Auxiliary Enterprises and Student Activities which are not subject to appropriation. The allocation of the appropriated budget is made to the University by the Administrative Central Office. In addition, the University receives Federal funds and other funds directly and includes these funds in the budget filed with the Administrative Central Office. \r\n \r\nA comparison ofanticipated funds available and budgeted expenditures by budget unit object class indicates that the following object classes were overspent by the amounts identified below: \r\n \r\nResident Instruction Personal Services: Sponsored Operations Operating Expenses: Education, General and Departmental Services Sponsored Operations \r\n \r\n$ 236.955.76 \r\n$ 12.046.06 $ 3.452.883.38 \r\n \r\nLottery for Education Equipment, Technology and Construction Trust Fund \r\n \r\n$ 1.299.72 \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 departmental 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 of allotments due from the Board of Regents of the University System of Georgia - Administrative Central Office, reimbursements 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\n- 10- \r\n \r\n SAVANNAH STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1998 \r\n \r\nEXHIBIT\"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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\nInventories of goods for resale are valued at cost using the first-in, first-out method. \r\nPREPAID ITEMS Prepaid items are payments made to vendors in advance ofthe receipt ofgoods and services that will benefit periods subsequent to the balance sheet date. \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 fmancial analysis. The columns do not present information that reflects financial position or changes in fmancial 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 of this 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(l) Bonds, bills, certificates of indebtedness, notes, or other direct obligations of the 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 ofany public authority created by the laws ofthe State ofGeorgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose. \r\n(4) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws of the State of Georgia. \r\n \r\n- 11 - \r\n \r\n SAVANNAH STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1998 \r\n \r\nEXHIBIT\"D\" \r\n \r\nNOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS \r\n \r\nSTATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES (5) Bonds, bills, certificates ofindebtedness, notes, or other obligations ofa 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\n(6) 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 (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 \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 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, 1998, 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 agentin 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\nTotal Cash 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$ 3539,361 94 $ 5,844,33085 $ 280950,41 $ 370,335,75 $ 5,193,044 69 \r\n \r\n- 12- \r\n \r\n SAVANNAH STATE UNNERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1998 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS \r\n \r\nCATEGORIZATION OF INVESTMENTS At June 30, 1998, the carrying amount ofthe University's total investments was $840,682.12 and consisted entirely of funds in the State Investment Pool administered by the State of Georgia Office of Treasury and Fiscal Services which are not required to be categorized since the University did not own any specific identifiable securities in the pool. \r\n \r\nNOTE 3: INVESTMENT IN PLANT \r\n \r\nThe following is a summary ofInvestment in Plant fixed assets as of June 30, 1998: \r\n \r\nLand Buildings Improvements Other Than Buildings Equipment Library Books and Collections \r\n \r\n$ 325,975.16 35,389,112.81 7,654,672.59 9,657,291.24 4.454.325.57 \r\n \r\nTotal Investment in Plant \r\n \r\n$57.481.377.37 \r\n \r\nNOTE 4: RISK MANAGEMENT \r\n \r\nSavannah State University is a participant in the Board ofRegents ofthe University System ofGeorgia 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 audit report of the 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 $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 ofRegents. \r\n \r\nThe Department ofAdministrative Services (DOAS) has the responsibility for the State ofGeorgia ofmaking 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. The University, as an organizational unit ofthe Board ofRegents ofthe 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\n \r\n- 13- \r\n \r\n SAVANNAH STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30. 1998 \r\n \r\nEXHIBIT\"D\" \r\n \r\nNOTE 4: RISK MANAGEMENT \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 oftheir duties or in any way connected therewith. The program is administered by DOAS as a Self-Insurance Fund. \r\nNOTE 5: DEFERRED COMPENSATION PLAN \r\nThe State of Georgia offers its employees a deferred compensation plan in accordance with Internal Revenue Code Section 457. The plan, available to employees ofthe State of Georgia and county health departments, permits such employees to defer a portion of their salary until future years. Participation in the plan is optional. Participants choose the option or options in which they wish ~o participate. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts ofcompensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights ofthe State ofGeorgia subject only to the claims ofthe State's general creditors. Participants' rights under the plan are equal to those of a general creditor of the State of Georgia in an amount equal to the fair market value ofthe deferred account for each participant. Financial information relative to the plan will be presented in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1998. \r\nA change in the Internal Revenue Code Section 457, effective August 20,1996, requires that by January 1, 1999, all existing eligible deferred compensation plans must be held in trust for the exclusive benefit of participants and their beneficiaries. The State ofGeorgia's plan was converted effective July 1, 1998. \r\nNOTE6: RETIREMENT PLANS \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nPlan Description Savannah State University 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 ~d 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 ofGeorgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department ofAudits and Accounts. \r\nFunding Policy \r\nEmployees ofthe University who are covered by TRS are required by State statute to contribute 5% oftheir 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 \r\n- 14- \r\n \r\n SAVANNAH STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1998 \r\n \r\nEXHIBIT\"D\" \r\n \r\nNOTE 6: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\nFunding Policy fiscal year 1998, the employer contribution rate was 11.81% for covered employees. In addition, the University contributed 3.91% 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\n1998 \r\n \r\n100% \r\n \r\n$ 1,474,701.16 \r\n \r\n1997 \r\n \r\n100% \r\n \r\n$ 1,590,288.68 \r\n \r\n1996 \r\n \r\n100% \r\n \r\n$ 1,480,684.29 \r\n \r\nREGENTS RETIREMENT PLAN \r\n \r\nPlan Description The Regents Retirement Plan, a single-employer defmed 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 ofproviding 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 7.75% ofthe participating employee's earnable compensation. Employees contribute 5% oftheir 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 $249,495.54 (7.75%) and $160,964.73 (5%), respectively. \r\n \r\nGEORGIA DEFINED CONTRIBUTION PLAN \r\n \r\nPlan Description Savannah State University participates in the Georgia Defined Contribution Plan (GDCP) which is a single- \r\nemployer defined contribution plan established by the General Assembly of Georgia for the purpose of providing retirement coverage for State e~ployees who are temporary, seasonal, and part-time and are not \r\n \r\n- 15 - \r\n \r\n SAYANNAB STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1998 \r\n \r\nEXHIBIT \"0\" \r\n \r\nNOTE 6: RETIREMENT PLANS \r\nGEORGIA DEFINED CONTRIBUTION PLAN \r\nPlan Description members of a public retirement or pension system. GOCP is administered by the Board ofTrustees of the Employees' Retirement System of Georgia. \r\nBenefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board ofTrustees. Ifa member has less than $ 3,500.00 credited to his/her account, the Board ofTrustees 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 ofTrustees. Upon termination ofemployment, the amount of the member's account is refundable upon request by the member. \r\n. Total contributions made by employees during fiscal year 1998 amounted to $37,318.50 which represents 7.5% of covered payroll. These contributions met the requirements ofthe plan. \r\nNOTE 7: LEAVEPOUCffiS \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\nEffective July 1, 1998, certain 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 SAVANNAH STATE UNNERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30. 1998 \r\n \r\nEXHIBIT\"D\" \r\n \r\nNOTE 8: 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 ofexpenditures which may be disallowed by the grantor cannot be detennined at this time although the University expects such amounts, if any, to be immaterial to its overall financial position. \r\nLitigation, claims and assessments filed against Savannah State University (an organizational unit of the Board ofRegents ofthe 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, 1998. \r\nNOTE 9: POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS \r\nPursuant to the general powers conferred by the Official Code of Georgia Annotated Section 20-3-31, the Board of Regents of the University System of Georgia has established group health and life insurance programs for regular employees ofthe University System of Georgia. It is the policy ofthe Board ofRegents to pennit employees ofthe University System of Georgia eligible for retirement or that become permanently and totally disabled to continue as members ofthe group health and life insurance programs. Employees who are eligible for retirement or disability under the criteria established by the Teachers Retirement System of Georgia and who have at least ten years ofservice with the University System ofGeorgia 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\nAs of June 30, 1998, there were 123 employees who had retired or were disabled that were receiving these postemployment health and life insurance benefits. For the year ended June 30, 1998, Savannah State University recognized as incurred $99,181.55 of expenditures, which was net of $39,057.08 ofparticipant contributions. \r\nNOTE 10: YEAR 2000 SYSTEMS READINESS \r\nThe year 2000 issue is the result of shortcomings in many electronic data processing systems and other electronic equipment that may adversely affect the University's operations as early as calendar year 1999. The University has identified computer systems and other electronic equipment that may be affected by the year 2000 issue and are necessary to conducting UtrlversitY operations. The following stages have been identified as necessary to implement year 2000 compliant systems. \r\nAwareness Stage - Encompasses establishing a budget and project plan for dealmg with the year 2000 issue. \r\nAssessment Stage - The actual process ofidentifying all systems and individual components ofsystems to check for compliance. \r\n- 17 - \r\n \r\n SAVANNAH STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30. 1998 \r\n \r\nEXHIBIT\"D\" \r\n \r\nNOTE 10: YEAR 2000 SYSTEMS READINESS \r\n \r\nRemediation Stage - The time when changes are made to systems and equipment. \r\nvalidationffesting Stage - The process of ensuring that the changes made to systems and equipment . \r\nwill produce a year 2000 compliant system. \r\n \r\nIt will be necessary for the University to progress through all four ofthese stages for each computer and/or electronic system, not already year 2000 compliant, in order to assure that these systems will not be adversely affected. \r\n \r\nThe following financial systems utilized by the University are supported by the Board ofRegents, University System of Georgia. The Board intends to remediate all systems which it maintains for use by its member institutions. \r\n \r\nThe College and University Fund Accounting System is in the remediation stage and final testing is scheduled for April, 1999. \r\n \r\nThe Regents Budget Reporting System and Property Inventory System are beyond the validation/testing stage and management considers them year 2000 compliant. \r\n \r\nThe Regents Payrol1/Personnel System is in the remediation stage with validation and testing scheduled for completion in July, 1999. \r\n \r\nThe Banner Student Information System is supported by SCT Banner, Inc. Their Banner2000 product is year 2000 compliant. All institutions whose systems are supported by the Board of Regents are scheduled to install Banner2000 by May 16, 1999. \r\n \r\nBecause ofthe unprecedented nature ofthe year 2000 issue, its effects and the success ofrelated remediation efforts will not be fully determinable until year 2000 and thereafter. While management is confident that the University will be year 2000 ready, it cannot assume that its remediation efforts will be successful in whole or in part, or that parties with whom the University does business will be year 2000 ready. \r\n \r\nNOTE 11: ENROLLMENT \r\n \r\nThe equivalent full-time student emollment of Savannah State University was as follows: \r\n \r\nRegular Term Fall Quarter, 1997 Winter Quarter, 1998 Spring Quarter, 1998 Average \r\nSummer School, 1997 \r\n \r\n2,705 2,563 2,523 \r\n \r\n- 18- \r\n \r\n SUPPLEMENTARY INFORMATION -19 - \r\n \r\n SAVANNAH STATE UNIVERSITY COMBINING BALANCE SHEET CURRENT FUNDS UNRESTRICTED \r\nJUNE 30, 1998 \r\n \r\nEXHIBIT \"I:\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable Inventories . Prepaid Items Due from Other Fund Groups \r\n \r\nRESIDENT \r\n \r\nLOTTERY FOR \r\n \r\nAUXILIARY \r\n \r\nSTUDENT \r\n \r\nINSTRUCTION EDUCATION ENTERPRISES ACTMTIES \r\n \r\nTOTAL \r\n \r\n$ 1,711,647,69 $ 198,730,85 137,559,83 14,060,55 12,027,73 \r\n \r\n42,637,57 $ \r\n \r\n18,541,53 $ 126,537,80 $ 1,899,364,59 \r\n \r\n190,466,59 \r\n \r\n4,128,27 \r\n \r\n393,325,71 \r\n \r\n554,883,98 \r\n \r\n692,443,81 \r\n \r\n14,060,55 \r\n \r\n12,027,73 \r\n \r\nTotal Assets \r\n \r\n$ 2,074,026,65 $ 42,637,57 $ 763,892,10 $ 130,666,07 $ 3,011 ,222,39 \r\n \r\nLIABILITIES AND FUND BALANCES \r\nUabilities Accounts Payable Salaries Payable Student Deposits Deferred Revenue Tuition and Fees \r\nTotal Uabilities \r\nFund Balances Unrestricted \r\n \r\n$ 1,366,661,02 $ 10,719,88 \r\n440,764,78 $ 1,818,145,68 $ \r\n \r\n35,847,19 $ 35,847,19 $ \r\n \r\n9,739,68 $ 46,990,90 $ 1,459,238,79 \r\n \r\n10,719,88 \r\n \r\n94,239,00 \r\n \r\n94,239,00 \r\n \r\n200,607.77 \r\n \r\n19,289,70 \r\n \r\n660,662,25 \r\n \r\n304,586,45 $ 66,280,60 $ 2,224,859,92 \r\n \r\n255,880,97 \r\n \r\n6,790,38 \r\n \r\n459,305,65 \r\n \r\n64,385,47 \r\n \r\n786,362,47 \r\n \r\nTotal Uabilities and Fund Balances \r\n \r\n$ 2,074,026,65 $ 42,637,57 $ 763,892,10 $ 130,666,07 $ 3,011,222,39 \r\n \r\nSee notes to the financial statements, \r\n \r\n-20 \r\n \r\n see notes to the financial statements. \r\n \r\n- 21 - \r\n \r\n THIS PAGE LEFT BLANK \r\n \r\n see notes to the finanCial statements. \r\n \r\n-23- \r\n \r\n SAVANNAH STATE UNIVERSITY SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET \r\nRESIDENT INSTRUCTION YEAR ENDED JUNE 30, 1998 \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$ 17,721,037.00 \r\n \r\n$ 1,332,127,00 \r\n \r\n6,118.882.52 $ 17,684.957.14 \r\n \r\n89,035.11 $ _ _---.;1.;.7,\"\"\"76.;;.;0;.;;.0:.,:0'- \r\n \r\n$ 23,839,919.52 $ 17,684,957.14 $ 1,421,162,11 $ _ _-.,;..;17..:.;,7~6,;;.;0,,;;.;00~ \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 Office of Minority Business Enterprise \r\n \r\n$ 18,389,727.76 $ 1,627,034.76 \r\n \r\n4,484,4n.06 \r\n384,144.04 518,692.n \r\n \r\n16,057,922.38 $ 1,421,161.11 $ \r\n \r\n166,423.41 \r\n \r\nExcess of Revenues over Expenditures \r\n \r\n- - - - ' - - - $ 23,7n,041.63 $ 17,684,957.14 $ 1,421,161.11 $ \r\n \r\n166,423.41 \r\n \r\n$ \r\n \r\n62,8n.89 $ \r\n \r\n0.00 $ \r\n \r\n1.00 $ ===-1..4.=8,=66=3;,;\".4;,,;1= \r\n \r\n(1) To eliminate tuition waivers not bUdgeted and to reclassify prior year fund balances bUdgeted as revenues. \r\n \r\nsee notes to the financial statements. \r\n \r\n-24- \r\n \r\n TOTAL \r\n \r\nADJUSTMENTS (1) \r\n \r\nTOTAL (Budget Basis) \r\n \r\nBUDGET \r\n \r\nVARIANCEFAVORABLE (UNFAVORABLE) \r\n \r\n$ 19.053.164.00 \r\n \r\n$ 19.053.164.00 $ 19.053.164.00 $ \r\n \r\n23,910.634.n $ _ _--=3..97:8..5=9~ 23.906.656.18 \r\n \r\n21.388.767.00 \r\n \r\n0.00 2.517.889.18 \r\n \r\n$ 42.963.798.n $ \r\n \r\n-3.978.59 $ 42.959.820.18 $ 40.441.931.00 $ \r\n \r\n2.517.889.18 \r\n \r\n$ 18.389.727.76 1.627.034.76 \r\n4.484.4n.06 $ 16.057.922.38 \r\n1.587.584.52 384.144.04 518.692.n \r\n \r\n$ 18.389.727.76 $ 18,423.225.00 $ \r\n \r\n1.627.034.76 \r\n \r\n1.390.079.00 \r\n \r\n-152.642.00 \r\n \r\n4.331.835.06 16.057.922.38 \r\n1.587.584.52 384.144.04 518.692.n \r\n \r\n4.319.789.00 12.605.039.00 2.684.201.00 \r\n469.598.00 550.000.00 \r\n \r\n33.497.24 -236.955.76 \r\n-12.046.06 -3.452.883.38 1.096.616.48 \r\n85.453.96 31.307.23 \r\n \r\n$ 43,049.583.29 $ \r\n \r\n-152.642.00 $ 42.896.941.29 $ 40,441.931.00 $ -2.455.010.29 \r\n \r\n$ \r\n \r\n-85,784.52 $ \r\n \r\n148.663.41 $ =====6.2.=..8:::;78.8;;;;9... \r\n \r\n$ = .......6;0;;2;;;;.8.7...8..8..9... \r\n \r\n-25- \r\n \r\n THIS PAGE LEFT BLAHK \r\n \r\n SAVANNAH STATE UNIVERSITY SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET \r\nLOTTERY FOR EDUCATION YEAR ENDED JUNE 30, 1998 \r\n \r\nSCHEDULE \"2- \r\n \r\nREVENUES State Appropriations \r\n \r\nCURRENT FUNDS UNRESTRICTED \r\n \r\nPLANT FUNDS UNEXPENDED \r\n \r\nTOTAL (Budget Basis) \r\n \r\nBUDGET \r\n \r\nVARIANCEFAVORABLE (UNFAVORABLE) \r\n \r\n$ \r\n \r\n281,990,00 $ \r\n \r\n38,015,00 $ 320,005,00 $ 320,005.00 $ \r\n \r\n0.:.;.:.;00:,.. \r\n \r\nEXPENDITURES \r\n \r\nEquipment. Technology and Construction \r\n \r\nTrust Fund \r\n \r\n$ \r\n \r\nSpecial Funding Initiatives \r\n \r\n$ \r\n \r\nExcess of Revenues over Expenditures \r\n \r\n$ \r\n \r\n137,311.96 $ 146,005,00 \r\n \r\n37,987.76 $ 175,299.72 $ 174,000.00 $ 146,005,00 146,005.00 \r\n \r\n-1,299.72 0.00 \r\n \r\n283,316.96 $ \r\n \r\n37,987.76 $ 321,304,72 $ 320,005,00 $ \r\n \r\n-1,299.72 \r\n \r\n----:.;;,.,;..;;.;,;.;;.,. \r\n \r\n-1,326.96 $ \r\n \r\n27.24 $ _.....-.1..,2;,;;9.9,.72== \r\n \r\n$ ==\"\"\"\"\"-11,12ii=99;;,;.7.2== \r\n \r\nsee notes to the financial statements, \r\n \r\n-27- \r\n \r\n SAVANNAH STATE UNIVERSIIX CHANGES IN INVESTMENT IN PLANT \r\nYEAR ENDED JUNE 30, 1998 \r\n \r\nLand Buildings Improvements Other Than Buildings Equipment Library Books and Collections \r\n \r\nBALANCE JULY 1,1997 \r\n \r\nCURRENT FUNDS \r\n \r\nUNRESTRICTED \r\n \r\nRESTRICTED \r\n \r\n$ \r\n \r\n325,975,16 \r\n \r\n33,329,411.11 \r\n \r\n7,611,129.58 \r\n \r\n8,081,249,50 $ 1,229,498.65 $ \r\n \r\n423,275,66 \r\n \r\n4,229,485,86 \r\n \r\n231,839,71 \r\n \r\n$ \r\n \r\n53,577,251.21 $ 1,461,338,36 $ \r\n \r\n42;;;;;3.,2;,;,7=5,=6.6 . \r\n \r\nSee notes to the financial statements. \r\n \r\n-28- \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\n$ 1,384,353.79 $ 43,543.01 \r\n \r\n85,770.91 $ \r\n \r\n589,577.00 \r\n \r\n27,759.00 \r\n \r\n$ \r\n \r\nPRIVATE GIFTS \r\n \r\nDEDUCTIONS DISPOSALS! DELETIONS! ADJUSTMENTS \r\n \r\nBALANCE JUNE 30,1998 \r\n \r\n$ \r\n \r\n325,975.16 \r\n \r\n35,389,112.81 \r\n \r\n7,654,672.59 \r\n \r\n41,608.00 $ \r\n \r\n146,099.57 \r\n \r\n9,657,291.24 \r\n \r\n7,000.00 \r\n \r\n4,454,325.57 \r\n \r\n$ 1,427,896.80 $ \r\n \r\n113,529.91 $ \r\n \r\n589,577.00 $ \r\n \r\n41,608.00 $ \r\n \r\n153,099.57 $ 57,481,377.37 \r\n \r\n-29- \r\n \r\n SAVANNAH STATE UNIVERSITY SCHEDULE OF FUND BALANCES CURRENT FUNDS AND PLANT FUNDS \r\nJUNE 30, 1998 \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 EqUipment, Technology and Construction Trust Fund 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\nLOTTERY FOR \r\n \r\nAUXILIARY \r\n \r\nEDUCATION ENTERPRISES \r\n \r\nSTUDENT ACTMTIES \r\n \r\n$ $ 137,624,83 \r\n \r\n6,790.38 $ \r\n \r\n-195,282,46 554,883,98 \r\n \r\n28,823.04 \r\n \r\n67,189,02 $ 32,515.11 \r\n \r\n64,385.47 \r\n \r\n89,433,10 \r\n \r\n$ 255,880.97 $ \r\n \r\n6,790.38 $ 459,305,65 $ \r\n \r\n64,385.47 \r\n \r\n$ 255,880,97 $ \r\n \r\n6,790,38 $ 459,305.65 $ =-=64::=,3=8=5,=47= \r\n \r\nSee notes to the financial statements, \r\n \r\n-30- \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 \r\n \r\nREPLACEMENTS \r\n \r\nINVESTMENT IN PLANT \r\n \r\nTOTAL \r\n \r\n$ 57,481,377.37 $ 57,481,377.37 \r\n \r\n$ 893,072.61 \r\n \r\n$ 893,072.61 \r\n \r\n$ \r\n \r\n2,610.90 \r\n \r\n396,723.55 \r\n \r\n$ \r\n \r\n2,610.90 \r\n \r\n6,790.38 -195,282.46 692,508.81 396,723.55 131,574.49 \r\n61,338.15 \r\n \r\n$ \r\n \r\n3,578.26 \r\n \r\n_ _ _ _ $ _ _--=2::.,:7.:.24:_ \r\n \r\n$ \r\n \r\n3,578.26 $ \r\n \r\n27.24 $ _ _.::39::.::9:.L:,3::::.34~.4.:.:5:... \r\n \r\n93,011.36 27.24 \r\n$ 1,189,302.42 \r\n \r\n$ 893,072.61 $ \r\n \r\n3,578.26 $ \r\n \r\n27.24 $ \r\n \r\n399,334.45 $ 57,481,3n.37 $ 59,563,752.40 \r\n \r\n- 31 - \r\n \r\n SAVANNAH STATE UNIVERSITY RECONCILIATION OF SALARIES AND TRAVEL \r\nYEAR ENDED JUNE 30. 1998 \r\n \r\nSCHEDULE \"5\" \r\n \r\nTotals per Annual Supplement \r\n \r\nAccruals June 30, 1998 \r\n \r\nAdjustments \r\n \r\nShared Services on Jointly Staffed Personnel \r\n \r\nArmstrong Atlantic State University \r\n \r\nAwan, \r\n \r\nIjaz \r\n \r\nEason, \r\n \r\nThomas \r\n \r\nOther \r\n \r\nBruce, \r\n \r\nDexter \r\n \r\nCohen, \r\n \r\nRufus \r\n \r\nFrome, \r\n \r\nJean \r\n \r\nRahming, \r\n \r\nTamica \r\n \r\nRoberson, \r\n \r\nJeffrey \r\n \r\nRosen, \r\n \r\nJoel \r\n \r\nSALARIES $ 17,341,119.03 $ \r\n \r\nTRAVEL 368,556.78 \r\n \r\n10,719.88 \r\n \r\n-3,670.00 -10,309.76 \r\n-154.50 -55.00 665.00 \r\n-132.00 -5.25 \r\n1,614.75 \r\n \r\n$ 17,339,792.15 $_====36=8=,5=56=:..7.8.;,., \r\n \r\nSee notes to the financial statements. \r\n \r\n-32- \r\n \r\n SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n SAVANNAH STATE UNIVERSITY AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 1998 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\n548-96-01 548-96-02 548-96-03 548-96-05 FS-548-97-01 \r\n \r\nPartially Resolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented \r\n \r\nCORRECTIVE ACTIONIRESPONSES \r\n \r\nREVENUE/RECEIVABLES/RECEIPTS Student Accounts Receivable Not Supported by Financial Aid Finding Control Number: 548-96-01 \r\n \r\nThe University has increased its collection efforts to reduce accounts receivable. Uncollectible debts under $100 will be gradually written offunder.House Bill 1536, O.C.G.A. Section 50-16-17. Surplus funds will be used to increase the reserve for uncollectible debts in excess of $1 00. The institution will examine internal operations and put controls in place to ensure that deferments awarded are supported by Financial Aid. \r\n \r\nEXPENDITURESILIABILITIESIDISBURSEMENTS Deficit Cash Balance Finding Control Number: 548-96-02 \r\n \r\nTo eliminate this deficit, the University will continue to monitor the awarding ofthe Naval Science Scholarship and increase fund raising efforts. The $20,000 donation from ARAMARK will be applied to the deficit. In addition, at the end ofthe fiscal year, a portion ofthe General Scholarship Funds will be redirected to Naval Science Scholarships to further reduce the deficit. \r\n \r\nFUND BALANCE Deficit to be Funded from Subsequent Years' Operation Finding Control Number: 548-96-03 \r\n \r\nThe University will continue to apply future annual surplus of the Athletic Program to the deficit until full satisfaction. Though probably small in amount, we are projecting a surplus from this year's operation which will serve to reduce the deficit. Prior year purchase orders cancelled totalling $10,059.53 has been applied to the deficit. \r\n \r\n SECTION ill CURRENT YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n SAVANNAH STATE UNNERSITY SCHEDULE OF FINDINGS AND OUESTIONED COSTS \r\nYEAR ENDED JUNE 30. 1998 \r\nFINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS \r\nCASH AND CASH EQUNALENTS Inadequate Accounting Procedures Finding Control Number: FS-548-98-01 \r\nFor the year under review, the University's accounting procedures were insufficient to provide for adequate internal control over the cash accounts and the bank reconciliation process. The following deficiencies were noted: \r\n1) Quarterly bank statements for the Dr. K.B. Raut Endowment bank account were not obtained by the University, therefore the interest earned was not recorded on the general ledger. \r\n2) Numerous book errors disclosed through the bank reconciliation process were carried as reconciling items for extended periods oftime. \r\n3) Checks totaling $4,069.18 were carried as outstanding on the bank reconciliations for periods in excess of six (6) months. \r\nThese deficiencies were the result ofmanagement's failure to establish the proper internal control procedures over cash and bank reconciliations which are necessary to adequately safeguard and report the cash and cash equivalents of the University. The Univer~ity should implement appropriate procedures and controls to ensure that bank statements are obtained and reconciled with the accounting records and that required adjustments are identified and recorded in a timely manner. \r\nEXPENDlTURESILIABILITIESIDISBURSEMENTS Deficit Cash Balance Finding Control Number: FS-548-98-02 \r\nOur examination ofRestricted Funds revealed that the University had a deficit cash balance of$158,703.25 in the locally funded Naval Reserve Officers Training Corps Room and Board Scholarship Account that was not supported by a valid accounts receivable. The deficit occurred because management failed to provide local funding for the awarding ofthese scholarships. \r\nThe University should implement procedures to ensure that funds are available prior to disbursement. The University should take appropriate action to secure funding to liquidate this deficit cash balance. \r\n- 1- \r\n \r\n SAVANNAH STATE UNIVERSITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30. 1998 \r\nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nEXPENDITURESILIABILITIESIDISBURSEMENTS Failure to Monitor Accounts Payable Finding Control Number: FS-548-98-03 \r\nFor the year under review, an examination of the accounts payable subsidiary records was performed to test transactions for validity and accuracy. The following deficiencies related to accounts payable were disclosed: \r\n1) Payments of accounts payable were incorrectly charged to expenditure accounts rather than as liquidation of accounts payable. \r\n2) Remaining accounts payable balances were not transferred to surplus after final payment ofinvoices. \r\nThese deficiencies occurred because of the University's failure to have procedures in place to adequately monitor accounts payable. The University should develop and implement policies and procedures to ensure that accounts payable are adequately monitored and properly liquidated on a timely basis. \r\nFUND BALANCE Deficit to be Funded from Subsequent Years' Operations Finding Control Number: FS-548-98-04 \r\nAt June 30, 1998, the University's Intercollegiate Athletics had a deficit balance of $195,282.46. The deficit was a result ofthe University's lack ofsufficient funds to meet obligations on a current basis. The Board of Regents Policy Manual Section 702.02 states that auxiliary enterprises \"will be placed on a self-supporting basis, and the State will not make an appropriation to finance its operation\". \r\nThe University should take appropriate action to ensure the deficit is funded. \r\nGENERAL LEDGER Deficiencies in Accounting Procedures Finding Control Number: FS-548-98-05 \r\nOur examination and testing for the year under review revealed the following deficiencies in accounting for financial transactions by Savannah State University. \r\n1) Receipts were recorded in an Agency-clearing/holding account and were not disbursed in a timely manner to the proper funds Adjustments in the amount of $78,631.40 were necessary to correctly reflect receipts/revenue in the proper fund. \r\n2) Bookstore revenue was recorded twice in the amount of $136,491.52. Adjustment was made to correct this duplicate recording ofrevenue. \r\n-2- \r\n \r\n SAVANNAH STATE UNIVERSITY SCHEDULE OF FINDINGS AND OUESTIONED COSTS \r\nYEAR ENDED JUNE 30. 1998 \r\nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nGENERAL LEDGER Deficiencies in Accounting Procedures Finding Control Number: FS-548-98-05 \r\n3) Numerous journal entries were improperly prepared and incorrectly recorded in Restricted Funds without the approval or knowledge of the Director of Contracts and Grants. \r\n4) Rental income was incorrectly recorded in the Agency Fund. An adjustment for $10,000.00 was made to correctly record the revenue in the Resident Instruction Fund. \r\n5) Restricted Fund revenues were not recognized in an amount equivalent to the Restricted Fund expenditures. Variances were identified and adjustments were made. \r\n6) Two different general ledgers and associated reports with different printing dates were presented for audit; however, this financial information was not used to prepare the University's fmancial statements. A third set ofreports were obtained that supported the financial statements prepared by the University. \r\n7) Expenditures for the Board of Regents Opportunity Grant were improperly recorded in Restricted Funds. \r\n8) An improper transfer of$23,100.31 was made from a Restricted Fund to cover deficit balances in scholarship funds in the Restricted and Agency Funds. \r\nThese deficiencies occurred because the University failed to have adequate accounting policies and procedures, to adhere to current policies and procedures, to monitor accounting records, to correctly identify and record revenue and to identify the final printing of the general ledger and associated reports presented for audit. The University should review current accounting policies and procedures, identify weaknesses, and implement procedures to ensure that the accounting records are monitored and revenue is properly recorded in accordance with the Board ofRegents Business Procedures Manual. \r\nGENERAL LEDGER Dormant Restricted Funds Finding Control Number: FS-548-98-06 \r\nFor the year under review, ten restricted fund projects had no activity. It was noted that the grant period had ended on all ten projects, however fund balances remained at June 30, 1998. \r\nThese dormant accounts are a result ofmanagement's failure to monitor the activity occurring in the Restricted Funds and failure to return excess funds promptly to the grantor when the project is complete. The University should implement procedures that will provide proper monitoring ofthe Restricted Funds and grant periods \r\n- 3- \r\n \r\n SAVANNAH STATE UNIVERSITY SCHEDULE OF FINDINGS AND OUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 1998 \r\nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nGENERAL LEDGER Dormant Restricted Funds Finding Control Number: FS-548-98-06 \r\nto ensure that funds are returned to the grantor when the project is complete. The University should contact the grantors to deterrillne if the dormant account funds are to be returned. \r\nGENERAL LEDGER Inadequacies in Travel Advances/Prepaid Travel Finding Control Number: FS-548-98-07 \r\nFor the year under review, an examination of prepaid travel and travel advances revealed the following deficiencies: \r\n1) Travel advances to employees were not cleared in a timely manner. The employees involved failed to submit a travel expense report for more than six months, which is a violation of the University's policies and procedures for advances mid travel. \r\n2) Travel advances were incorrectly recorded between funds. In some cases, travel advances were . recorded in one fund and the offsetting credits to clear the advances were incorrectly recorded in another fund. \r\n3) Travel advances to employees were not monitored throughout the year. As a result, prepaid travel and travel advances were outstanding for individuals that were no longer employees of the University. \r\nThe deficiencies occurred because of management's disregard of the University's travel policy and management's failure to properly account for travel advances and prepaid travel. The University's travel policy states \"advances must be cleared within three days subsequent to returning to campus or the conclusion of the event\". The University should follow policies and procedures to ensure that travel advances and prepaid travel are correctly recorded in the proper fund, monitored, and cleared in a timely manner. \r\nGENERAL LEDGER Inadequate Documentation ofJournal Entries Finding Control Number: FS-548-98-08 \r\nFor the year under review, numerous journal entries were made with little or no documentation. This situation occurred because of the University's failure to ensure that journal entries were properly documented and approved by appropriate supervisory personnel. The University should develop procedures to ensure that all journal entry transactions are properly maintained and supported by adequate documentation. \r\n-4- \r\n \r\n SAVANNAH STATE UNIVERSITY SCHEDULE OF FINDINGS AND OUESTIONED COSTS \r\nYEAR ENDED JUNE 30. 1998 \r\nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nALLOWABLE COSTS/COST PRINCIPLES Budget Amendments Not Posted to the Accounting Records Higher Education - Institutional Aid (CFDA 84.031) Finding Control Number: FA-548-98-01 \r\nThe accounting records presented for audit ofthe Title ill Federal program did not reflect the final approved budget for Title ill projects. The University recorded original budget information at the beginning of the fiscal year, but failed to record budget amendments as they were approved. This deficiency resulted in a lack of control over expenditures due to the absence ofcorrect budget information. Federal regulations contained in 34 CFR 74.21 require that the Institution maintain a financial management system which, in part, provides for effective control over the accountability of Federal funds including a comparison of outlays to budget amounts for Federal awards. This condition is a result ofmanagement's failure to require budget amendments be posted to the accounting records. Management should require that all budget amendments be posted to the accounting records to ensure control over expenditures. \r\nALLOWABLE COSTS/COST PRINCIPLES Employee Compensation Deficiencies Higher Education - Institutional Aid (CFDA 84.031) Questioned Cost: $16,500.00 Finding Control Number: FA-548-98-02 \r\nFor the year under review, our examination of salaries charged to the Title ill program revealed the following deficiencies: \r\n1) It was determined that salaries were charged to the Title ill program based on budgeted amounts rather than actual time and effort reports. An examination of time and effort reports noted the following problems: \r\na. Time and effort reports for the Title ill Coordinator and six hourly employees who worked on Title ill activities were not available for examination. \r\nb. Time and effort reports for other personnel who worked on Title ill activities failed to contain all the required elements such as the employee's signature, the Title ill Coordinator's signature, and the percentage of time spent on all activities during the period. \r\nc. Although reasonable, one employee's time and effort reports were not consistent with the employee's class schedules. \r\nd. A summer salary of $2,000.00 for one individual was charged to Title ill program but was not documented by time and effort reports. Determination could not be made as to whether the employee actually worked on the Title ill program. \r\n-5- \r\n \r\n SAVANNAH STATE UNIVERSITY SCHEDULE OF FINDINGS AND OUESTIONED COSTS \r\nYEAR ENDED JUNE 30. 1998 \r\nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nALLOWABLE COSTS/COST PRINCIPLES Employee Compensation Deficiencies Higher Education - Institutional Aid (CFDA 84.031) Questioned Cost: $16,500.00 Finding Control Number: FA-548-98-02 \r\nAccording to OMB Circular A-21, activity reports or other payroll documents used as original documentation for payroll and payroll charges should be prepared and signed by the employee and the responsible official when salaries are charged to Title ill. Time and effort reports should reflect 100% of an individual's time spent on all activities performed during the period. The reports should also be supported by other documentation such as class schedules. \r\n2) Stipends for four individuals in the total amount of $2,750.00 were incorrectly charged to the Title ill program. The stipends were in addition to regular salaries; however, the work performed for Title ill was not in addition to their regular departmental workloads. Also, $1,750.00 in stipends for another individual charged to the Title ill program were not documented by appropriate time and effort reports. \r\nAccording to OMB Circular A-21, additional compensation above the base salary is only allowed in cases where the Title ill duties are in addition to the regular departmental load. \r\n3) Salaries of $10,000.00 were charged to the Title ill program for two employees ($5,000.00 each) who were to receive release time from their normal duties to work on Title ill activities. However, the individuals did not actually receive release time to work for the Title ill program. \r\nSalaries should not be charged to the Title ill program for release time unless the individual is actually released from normal duties and carries out the Title ill duties. \r\nThese conditions occurred because of management's failure to ensure that all time and effort reports were properly prepared by Title ill employees and that Title ill salaries were correctly paid to individuals who performed Title ill services. Management should ensure that complete time and effort reports are prepared by all employees whose salaries are charged to the Title ill program. Time and effort reports should contain all required elements so that management can rely on the reports to support accounting and payroll records. Management should also ensure that Title ill activities are in addition to employees' regular departmental workloads before Title ill stipends are paid to employees. Lastly, management should ensure that Title ill employees are actually receiving release time from their departments before charging salaries to the Title ill program. \r\n-6- \r\n \r\n SAYANNAB STATE UNIVERSITY SCHEDULE OF FINDINGS AND OUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 1998 \r\nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nDAVIS-BACON ACT Payment ofPrevailing Wage Rates Not Monitored Higher Education - Institutional Aid (CFDA 84.031) Finding Control Number: FA-548-98-03 \r\nFor the year under review, wages paid by a contractor associated with a Title ill construction project of $25,013.00 were not monitored by the University. Federal regulations as reflected in Appendix A to 34 CFR 74 require that all laborers employed bythe contractor who work on construction contracts in excess of $2,000.00 financed by Federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates). This condition resulted because of management's failure to ensure that all individuals at the University were aware of their responsibilities regarding the Davis-Bacon Act. The University should take steps to ensure that wages paid for construction projects fInanced with Federal funds are monitored and are in compliance with the provisions ofthe Davis-Bacon Act. \r\nEQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System Higher Education - Institutional Aid (CFDA 84.031) Finding Control Number: FA-548-98-04 \r\nOur examination included a review of the internal accounting controls utilized by the University in maintaining their property management system and testing the system for compliance with Federal laws and regulations. The following conditions existed: \r\n1) The University failed to maintain a property management system that identifIed Federal equipment purchases by award number. The University only identifIed the source of the equipment as federal. This defIciency is system-wide and affects all Federal awards. \r\n2) A physical inventory was not conducted within the last two years. \r\n3) The University was unable to ensure appropriate Federal Agencies were notifIed when disposing of equipment due to inadequacies in identifying equipment by fund source and grant award number in the property management records. \r\n4) A sample of 39 equipment items identifIed from current year purchases were examined. This examination revealed three computers and monitors purchased in March 1998 at a cost $6,933.00 were not in use as of the last day of fIeldwork. The three computers were not in the location as identifIed by the Title ill Director; however, they were located in the central warehouse in their original shipping container. In addition, two other computers and monitors purchased during the period under review with a total cost of $4,732.00 were not being used in the Title ill project or program for which they were acquired. \r\n-7- \r\n \r\n SAVANNAH STATE UNNERSITY SCHEDULE OF FINDINGS AND OUESTIONED COSTS \r\nYEAR ENDED JUNE 30.1998 \r\nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nEQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System Higher Education - Institutional Aid (CFDA 84.031) Finding Control Number: FA-548-98-04 \r\nThe University failed to have internal controls in place and operational to ensure compliance with Federal requirements for equipment as set forth in 34 CFR 74 and OMB Circular A-110, Subpart C.34. The University should establish policies and procedures to ensure that equipment purchases are identified by fund sources and grant award numbers, property records are maintained in accordance with Federal requirements and physical inventories are conducted at least once every two years.. Also, the University should establish policies and procedures to ensure Title ill equipment purchases are utilized for the Title ill program. The U. S. Department ofEducation should review these matters and determine appropriate action by the University to resolve this finding. \r\nPERIOD OF AVAILABILITY Unallowable Expenditures Higher Education - Institutional Aid (CFDA 84.031) Questioned Cost: $41,121.19 Finding Control Number: FA-548-98-05 \r\nA test of transactions was made to determine if underlying obligations occurred during the period of availability and if obligations were liquidated not later than 90 calendar days after the budget period. Our testing revealed the following deficiencies: \r\n1) Expenditures in the amount of $12,139.65 were incurred and were charged to the program for up to nine months after the budget period ended September 30, 1997. \r\n2) Obligations in the amount of $26,501.54 were not liquidated within the required 90 calendar days after the end ofthe budget period. \r\n3) One voucher package in the amount of $2,480.00 was missing and a determination could not be made if the expenditures occurred in the budget period. \r\nThese deficiencies occurred because management failed to have written policies and procedures in place and operational to ensure that the University was in compliance with- requirements for the period of availability ofFederal funds as set forth in 34 CFR 74.28 and 34 CFR 74.71 as well as in OMB Circular A-II0, Subpart C.28 and SubpartD.71. \r\nManagement should implement policies and procedures to ensure that the Universityis in compliance with Federal regulations, expenditures are incurred within the budget period and obligations are liquidated within 90 calendar days after the budget period. The University should contact the U. S. Department ofEducation for resolution ofthe $41,121.19 in questioned cost. \r\n-8- \r\n \r\n SAVANNAH STATE UNIVERSITY SCHEDULE OF FINDINGS AND OUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 1998 \r\n \r\nFEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nPROCUREMENT AND SUSPENSIONIDEBARMENT Failure to Obtain Suspension/Debannent Certification Higher Education - Institutional Aid (CFDA 84.031) Finding Control Number: FA-548-98-06 \r\n \r\nOur testing of contracts revealed that controls were not in place and operational to determine if any \r\n \r\ncontractors paid from Federal funds had been debarred, suspended or otherwise excluded from participation \r\n \r\nin Federal assistance programs, other than those appearing on the State suspension list. This noncompliance \r\n \r\noccurred because procurement personnel were not aware of the Federal requirement and failed to obtain \r\n \r\ncopies ofFederal listings of debarred and suspended parties. The University should implement policies and \r\n \r\nprocedures to ensure Federal compliance requirements are met as contained in 34 CFR 85 and Appendix A \r\n \r\nto 34 CFR 74. \r\n \r\n. \r\n \r\nREPORTING' Final Performance Report Prepared with Budget Figures Higher Education - Institutional Aid (CFDA 84.031) Finding Control Number: FA-548-98-07 \r\n \r\nThe Final Performance Report submitted to the U. S. Department of Education for Federal fiscal year ended September 30, 1997 reported that the University incurred $1,386,465.00 in Title ill expenditures. However, the University's accounting records reflected $1,267,857.30 in expenditures for the same budget period. This condition occurred because management prepared the financial portion ofthe Final Performance Report from the approved budget instead of preparing the report from the accounting records. According to Federal regulation 34 CFR 74.21, the University's fmancial management system should provide for accurate and complete disclosure of fmancial results of the Title ill program consistent with the reporting requirements established in 34 CFR 74.52. Management should ensure that the financial portion ofthe Final Performance Report is prepared from accounting records which reflect actual exp~nditures rather than budgeted amounts. \r\n \r\n-9- \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bs25-b1996-h97","title":"Audit report, state of Georgia, Savannah State University, Savannah, Georgia, year ended June 30, 1997","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["year ended June 30, 1996: Georgia. Department of Audits, issuing body.","year ended June 30, 1997-year ended June 30, 1999: Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, Chatham County, 31.97402, -81.09243"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["1996/1997"],"dcterms_description":["Began with: Year ended June 30, 1996; ceased with: Year ended June 30, 1999.","Report year ends June 30.","Description based primarily on print version record.","Year ended June 30, 1999, released in 2000? (Georgia Government Publications database, viewed January 9, 2024)."],"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":["Savannah State University (Ga.)--Appropriations and expenditures","Financial statements--Georgia","Auditors' reports--Georgia"],"dcterms_title":["Audit report, state of Georgia, Savannah State University, Savannah, Georgia, year ended June 30, 1997"],"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-bs25-b1996-h97"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bs25-b1996-h97"],"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":"GA \r\nAWJo \r\n,Rl \r\nszs \r\nIqqk~7 \r\n \r\nAUDIT REPORT STATE OF GEORGIA SAVANNAH STATE UNIVERSITY SAVANNAH, GEORGIA YEAR ENDED JUNE 30, 1997 \r\n \r\nSTATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 WASHINGTON STREET \r\nATLANTA, GEORGIA 30334-8400 \r\n \r\n SAVANNAH STATE UNNERSITY - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL 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\n6 \r\n \r\nD NOTES TO THE FINANCIAL STATEMENTS \r\n \r\n7 \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\n21 \r\n \r\nG COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, \r\n \r\nAND OTHER CHANGES \r\n \r\nUNRESTRICTED \r\n \r\n23 \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\n24 \r\n \r\n2 \r\n \r\nLOTTERY FOR EDUCATION \r\n \r\n27 \r\n \r\n3 CHANGES IN INVESTMENT IN PLANT \r\n \r\n28 \r\n \r\n4 SCHEDULE OF FUND BALANCES \r\n \r\nCURRENT FUNDS AND PLANT FUNDS \r\n \r\n30 \r\n \r\n5 RECONCILIATION OF SALARIES AND TRAVEL \r\n \r\n32 \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 SAVANNAH STATE UNNERSITY - TABLE OF CONTENTS - \r\nSECTION III CURRENT YEAR FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n CLAUDE L. VICKERS \r\nSTATE AUDITOR (404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 \r\nDecember 5, 1997 \r\n \r\nHonorable Zell Miller, Governor Members of the General Assembly of Georgia Members of the Board of Regents of the University System of Georgia \r\nand Honorable Carlton E. Brown, President Savannah State University \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \r\nLadies and Gentlemen: \r\nWe have audited the accompanying fmancial statements (Exhibits A through D) of Savannah State University as of and for the year ended June 30, 1997. These financial statements are the responsibility of the University's management. Our responsibility is to express an opinion on these financial statements based on our audit. \r\nWe conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fmancial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. \r\nAs described in Note 1 to the financial statements, Georgia Law and State budgetary policy require the University to prepare its financial statements on a basis which is not consistent with generally accepted accounting principles with respect to the recording of encumbrances as expenditures and liabilities. To conform with generally accepted accounting principles, encumbrances should be recorded as a reservation of fund balance. The effects on the financial statements of this departure from generally accepted accounting principles were not reasonably determinable, but are believed to be material. \r\n \r\n97ARL-62 \r\n \r\n As disclosed in Note 1 to the financial statements, the University did not report the liability and related eXJ?enditure 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 $864,771.19 as of June 30, 1997, and the net change in fund balance for the year ended June 30, 1997, would be decreased by $106,157.60. \r\nIn our opinion, except for the effects on the financial statements of the matters discussed in the third and fourth paragraphs, the financial statements referred to above present fairly, in all material respects, the financial position of Savannah State University as ofJune 30, 1997, and the changes in fund balances and the current operating funds revenues, expenditures, and other changes for the year then ended in conformity with generally accepted accounting principles. \r\nOur audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplementary information (Exhibits E through G and Schedules 1 through 5) is presented for purposes of additional analysis and is not a required part of the fmancial statements of Savannah State University. Such information has been subjected to the auditing procedures applied in the audit of the fmancial statements and, in our opinion, except for the effects of the matters discussed in the third and fourth paragraphs, such information is fairly presented in all material respects in relation to the financial statements taken as a whole. \r\n \r\nCLV:gp 97ARL-62 \r\n \r\nClaude L. Vickers State Auditor \r\n \r\n FINANCIAL STATEMENTS - 1- \r\n \r\n SAVANNAH STATE UNIVERSITY COMBINED BALANCE SHEET ALL FUND GROUPS JUNE 30.1997 \r\n \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable Inventories Prepaid Items Due from Other Fund Groups Investment in Plant \r\nTotal Assets \r\nLIABILITIES AND FUND BALANCES \r\nLiabilities Cash Overdraft Accounts Payable Student Deposits Deferred Revenue Tuition and Fees Deposits Held in Custody for Others Due to Other Fund Groups \r\nTotal Liabilities \r\nFund Balances U. S. Government Grants Refundable Institutional Loans - Restricted Endowment Term Endowment Net Investment in Plant Restricted Unrestricted \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\nCURRENT FUNDS UNRESTRICTED RESTRICTED \r\n \r\nLOAN FUNDS \r\n \r\n$ \r\n \r\n18,098.66 \r\n \r\n$ \r\n \r\n867,265.87 $ 969,200.62 \r\n \r\n839,514.56 \r\n \r\n583,380.91 \r\n \r\n9,954.16 \r\n \r\n519,937.99 \r\n \r\n$ 1,980,538.93 $ 969,200.62 $ 857,613.22 \r\n \r\n$ \r\n \r\n72,169.25 $ \r\n \r\n88,069.96 \r\n \r\n746,343.19 \r\n \r\n80,370.00 \r\n \r\n625,741.82 \r\n \r\n519,937.99 \r\n \r\n$ 1,524,624.26 $ 608,007.95 \r\n \r\n$ 783,101.39 74,511.83 \r\n \r\n$ 361,192.67 \r\n \r\n$ \r\n \r\n455,914.67 \r\n \r\n$ \r\n \r\n455,914.67 $ 361,192.67 $ 857,613.22 \r\n \r\n$ 1,980,538.93 $ 969,200.62 $ 857,613.22 \r\n \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\nENDOWMENT AND SIMILAR \r\nFUNDS \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$ 642,140.49 $ 597,655.88 $ \r\n \r\n385,745.52 \r\n \r\n$ 350,776.02 $ 1,994,416.57 \r\n \r\n138,383.64 \r\n \r\n431.73 2,814,796.42 \r\n \r\n583,380.91 \r\n \r\n9,954.16 \r\n \r\n519,937.99 \r\n \r\n_ _ _ _ _ _ $ 53,577,251.21 \r\n \r\n53,577,251.21 \r\n \r\n$ 642,140.49 $ 736,039.52 $ \r\n \r\n385,745.52 $ 53,577,251.21 $ 351,207.75 $ 59,499,737.26 \r\n \r\n$ 736,039.52 $ \r\n \r\n$ 736,039.52 $ \r\n \r\n$ 443,180.89 198,959.60 \r\n$ $ 642,140.49 $ \r\n \r\n0.00 $ 0.00 $ \r\n \r\n58,881.84 58,881.84 \r\n \r\n$ 160,239.21 $ 192,241.85 1,733,506.40 \r\n80,370.00 \r\n \r\n158,965.90 \r\n \r\n625,741.82 158,965.90 519,937.99 \r\n \r\n$ 351,207.75 $ 3,278,761.32 \r\n \r\n$ 53,577,251.21 326,863.68 326,863.68 $ 53,577,251.21 \r\n \r\n$ 783,101.39 74,511.83 \r\n443,180.89 198,959.60 53,577,251.21 361,192.67 782,778.35 \r\n$ 56,220,975.94 \r\n \r\n$ 642,140.49 $ 736,039.52 $ \r\n \r\n385,745.52 $ 53,577,251.21 $ 351,207.75 $ 59,499,737.26 \r\n \r\n-3- \r\n \r\n SAVANNAH STATE UNIVERSITY COMBINED STATEMENT OF CHANGES IN FUND BALANCES \r\nALL FUND GROUPS YEAR ENDED JUNE 30,1997 \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 Local Grants and Contracts Private Gifts, Grants, and Contracts Investment Income Endowment Other Interest on Loans Receivable Adjustments Prior Years' Expenditures/Accounts Payable Prior Years' Checks Voided Expended for Plant Facilities Current Funds Plant Funds \r\nUnexpended Renewals and Replacements Georgia State Financing and Investment Commission Other Additions Recovery of Prior Years' Cancelled Loans \r\nTotal Revenues and Other Additions \r\nEXPENDITURES AND OTHER DEDUCTIONS \r\nEducational and General Expenditures Auxiliary Enterprises Expenditures Indirect Costs Recovered 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 DisposalslDeletionS/Adjustments \r\nTotal Expenditures and Other Deductions \r\nTRANSFERS BETWEEN FUNDS \r\nMandatory Investment Income for Principal \r\nNonmandatory Renewals and Replacements Capital Projects \r\nTotal Transfers Between Funds \r\nNet Increase/(Decrease) for the Year \r\nFUND BALANCES JULY 1, 1996 \r\nFUND BALANCES JUNE 30,1997 \r\nThe notes to the financial statements are an integral part of this statement. \r\n-4- \r\n \r\nCURRENT FUNDS UNRESTRICTED RESTRICTED \r\n \r\nLOAN FUNDS \r\n \r\n$ 27,800,295,10 \r\n \r\n$ 15,005,335,71 $ 546,326,59 8,000,00 292,732,15 \r\n33,541,08 \r\n39,018.43 5,517,99 \r\n \r\n8,940,00 2,626,97 \r\n322,00 \r\n8,936,21 \r\n \r\n3,172,00 $ 27,844,831,52 $ 15,885,935,53 $_--=23~,9:::.:9:.:.7~,1~8 \r\n \r\n$ 23,463,903.42 $ 15,492,639,05 4,351,689,13 173,603,67 \r\n49,468,14 \r\n5,000,56 $ \r\n \r\n3,661,27 2,028,20 \r\n \r\n$ 27,870,061.25 $ 15,666,242.72 $ _ _5::J.,6;:,:8:,::9,-,.4.:..7 \r\n \r\n$ -14,173.15 \r\n \r\n$ \r\n \r\n-191,730.35 \r\n \r\n-45,345.00 \r\n \r\n$ \r\n \r\n-237,075.35 $ -14,173.15 \r\n \r\n$ \r\n \r\n-262,305.08 $ 205,519.66 $ \r\n \r\n18,307.71 \r\n \r\n718,219.75 \r\n \r\n155,673.01 \r\n \r\n839,305,21 \r\n \r\n$ \r\n \r\n455,914.67 $ 361.192.67 $ 857,613.22 \r\n \r\n EXHIBIT\"B\" \r\n \r\n'ENDOWMENT AND SIMILAR \r\nFUNDS \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$ 1,346,660.00 40,500.00 \r\n481,856.64 \r\n \r\n$ \r\n \r\n13,575.00 \r\n \r\n22,715.67 $ \r\n \r\n3,095.67 \r\n \r\n$ \r\n \r\n13,575.00 $ 1,894,827.98 $ \r\n \r\n$ 27,800,295.10 \r\n \r\n1,346,660.00 40,500.00 \r\n15,496,132.35 546,326.59 10,626.97 306,629.15 \r\n \r\n17,895.18 \r\n \r\n33,541.08 40,610.85 \r\n8,936.21 \r\n \r\n1,123.00 \r\n \r\n43,237.10 5,517.99 \r\n \r\n$ 1,709,798.07 1,709,798.07 \r\n \r\n1,698,040.17 282,906.95 510,143.00 \r\n \r\n1,698,040.17 282,906.95 510,143.00 \r\n \r\n3,172.00 \r\n \r\n19,018.18 $ 4,200,888.19 $ 49,883,073.58 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n$ 38,956,542.47 4,351,689.13 173,603.67 \r\n \r\n$ \r\n \r\n96,332.75 \r\n \r\n145,800.89 \r\n \r\n38,494.25 \r\n \r\n43,494.81 3,661.27 2,028.20 \r\n \r\n1,698,040.17 $ 203,638.56 \r\n \r\n282,906.95 $ \r\n \r\n311,057.10 \r\n \r\n1,980,947.12 203,638.56 311,057.10 \r\n \r\n$ \r\n \r\n0.00 $ 2,036,505.73 $ \r\n \r\n282,906.95 $ 311,057.10 $ 46,172,463.22 \r\n \r\n$ \r\n \r\n14,173.15 \r\n \r\n$ \r\n \r\n$ \r\n \r\n14,173.15 $ \r\n \r\n$ \r\n \r\n27,748.15 $ \r\n \r\n614,392.34 \r\n \r\n$ 45,345.00 45,345.00 $ -96,332.75 $ 96,332.75 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n191,730.35 \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n191,730.35 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n-72,158.42 $ 3,889,831.09 $ 3,710,610.36 \r\n \r\n399,022.10 49,687,420.12 52,510,365.58 \r\n \r\n$ 642,140.49 $ \r\n \r\n0.00 $ \r\n \r\n326,863.68 $ 53,577,251.21 $ 56,220,975.94 \r\n \r\n-5- \r\n \r\n SAVANNAH STATE UNIVERSITY STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, \r\nAND OTHER CHANGES YEAR ENDED JUNE 30,1997 \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 Endowment Income Sales and Services of Educational Activities Sales and Services of Auxiliary Enterprises Other Sources \r\nTotal Revenues \r\nEXPENDITURES AND MANDATORY TRANSFERS \r\nEducational and General Instruction Research Public Service Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships Mandatory Transfers for: Investment Income for Endowment Principal \r\nAuxiliary Enterprises Student Housing Faculty and Staff Housing Food Services Stores and Shops Intercollegiate Athletics Other Service Units \r\nTotal Expenditures and Mandatory Transfers \r\nOTHER TRANSFERS AND ADDITIONS/lDEDUCTIONS) \r\nExcess of Restricted Receipts over Transfers to Revenues Transfers for Renewals and Replacements Transfers for Capital Projects Prior Period Adjustments (Net) Remittances to the Board of Regents of the \r\nUniversity System of Georgia Prior Year's Unrestricted Fund Balance (Surplus) \r\nTotal Other Transfers and Additions/(Deductions) \r\n \r\nUNRESTRICTED RESTRICTED \r\n \r\nTOTAL (Memorandum \r\nOnly) \r\n \r\n$ 17,126,215.00 \r\n \r\n$ 17,126,215.00 \r\n \r\n5,775,937.75 \r\n \r\n5,775,937.75 \r\n \r\n175,631.87 $ 14,703,896.44 14,879,528.31 \r\n \r\n540,206.54 \r\n \r\n540,206.54 \r\n \r\n1,157.81 \r\n \r\n1,157.81 \r\n \r\n234,464.26 \r\n \r\n234,464.26 \r\n \r\n12,914.00 \r\n \r\n12,914.00 \r\n \r\n33,527.77 \r\n \r\n33,527.77 \r\n \r\n4,310,434.35 \r\n \r\n4,310,434.35 \r\n \r\n378,548.36 \r\n \r\n378,548.36 \r\n \r\n$ 27,800,295.10 $ 15,492,639.05 $ 43,292,934.15 \r\n \r\n$ 10,472,555.06 $ 253,149.38 $ 10,725,704.44 \r\n \r\n44,537.77 \r\n \r\n368,773.13 \r\n \r\n413,310.90 \r\n \r\n594,994.09 \r\n \r\n1,220,729.98 \r\n \r\n1,815,724.07 \r\n \r\n2,764,190.80 \r\n \r\n929,733.66 \r\n \r\n3,693,924.46 \r\n \r\n2,051,573.38 \r\n \r\n2,051,573.38 \r\n \r\n4,242,285.73 \r\n \r\n1,019,645.19 \r\n \r\n5,261,930.92 \r\n \r\n3,179,999.93 \r\n \r\n3,179,999.93 \r\n \r\n113,766.66 11,700,607.71 11,814,374.37 \r\n \r\n14,173.15 \r\n \r\n14,173.15 \r\n \r\n1,280,215.75 19,055.78 \r\n1,337,309.63 195,155.19 \r\n1,088,536.88 431,415.90 \r\n \r\n1,280,215.75 19,055.78 \r\n1,337,309.63 195,155.19 \r\n1,088,536.88 431,415.90 \r\n \r\n$ 27,815,592.55 $ 15,506,812.20 $ 43,322,404.75 \r\n \r\n$ 219,692.81 $ 219,692.81 \r\n \r\n$ \r\n \r\n-191,730.35 \r\n \r\n-191,730.35 \r\n \r\n-45,345.00 \r\n \r\n-45,345.00 \r\n \r\n39,535.86 \r\n \r\n39,535.86 \r\n \r\n-49,468.14 \r\n \r\n-49,468.14 \r\n \r\n$ \r\n \r\n-247,007.63 $ 219,692.81 $ \r\n \r\n-27,314.82 \r\n \r\nNet Increase/(Decrease) in Fund Balances \r\n \r\n$ \r\n \r\nThe notes to the financial statements are an integral part of this statement. \r\n \r\n-6- \r\n \r\n-262,305.08 $ \r\n \r\n205,519.66 $ ==-=5.=!6,=78;;,;;;5=.4~2 \r\n \r\n SAVANNAB STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1997 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nREPORTING ENTITY Savannah State University 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 Savannah State University as a separate reporting entity. \r\nThe Board of Regents has constitutional authority to govern, control and manage the University System of Georgia. This authority includes but is not limited to the power to designate management, the ability to significantly influence operations, the authority to control institutions' budgets, the power to determine allotments of State funds to member institutions and the authority to prescribe accounting systems and administrative policies for member institutions. Savannah State University does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, Savannah State University is considered an organizational unit of the Board of Regents of the University System of Georgia reporting entity for financial reporting purposes because of the significance of its legal, operational, and financial relationships with the Board of Regents as defined in Section 2100 of the Governmental Accounting Standards Board 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 of the 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-7- \r\n \r\n SAVANNAH STATE UNNERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1997 \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\nENDOWMENT AND SIMILAR FUNDS \r\nThe fund used to account for endowment funds and term endowment funds. Endowment funds are subject to the restrictions of gift instruments requiring that the principal be invested in perpetuity and income only be utilized. Term endowment funds are similar to endowment funds except that upon the passage of a stated period of time or the occurrence of a particular event, all or part of the principal may be expended. \r\nPLANT FUNDS \r\nUNEXPENDED - The fund used to account for fmancial 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 of physical 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 ofaccounting, which is materially the same as the accrual basis ofaccounting applicable to colleges and universities prescribed in the American Institute of Certified Public Accountants' audit guide reporting model. The modified accrual basis ofaccounting is defmed 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 ofthe fiscal period. \r\n \r\n-8- \r\n \r\n SAVANNAH STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1997 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF ACCOUNTING Contractual obligations for goods and services which have not been received at the end of the 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 generally accepted accounting principles, which provide for the recording of encumbrances as a reservation of fund 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 of the 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 $864,771.19 and the related current year expenditure of $106,157.60 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 fmancial statements. This presentation is in accordance with accounting practices prescribed or permitted by statutes and regulations ofthe State of Georgia, 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 behalf ofthe 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\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\nBUDGET The Board of Regents of the University System of Georgia - Administrative Central Office receives State appropriation allotments for units of the University System of Georgia. The appropriated budget is adopted at the departmental level and represents appropriations provided by the Amended Appropriations Act of 19961997. The appropriated budget covers current funds and plant funds, except for Auxiliary Enterprises and Student Activities which are not subject to appropriation. The budget allocation and disbursement of these \r\n- 9- \r\n \r\n SAVANNAH STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1997 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nBUDGET funds is made to the various organizational units by the Administrative Central Office. In addition, the organizational units receive Federal funds and other funds directly and include 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 Personal Services: Sponsored Operations Operating Expenses: Education, General and Departmental Services \r\n \r\n$ 16.420.35 $ 170,136.15 \r\n \r\nLOTTERY FOR EDUCATION Equipment, Technology and Construction Trust Fund Special Funding Initiatives \r\n \r\n$ 40.872.31 $ 26,540.18 \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 departmental 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 fmancial institutions, and cash management pools that have the general characteristics of demand deposit accounts. \r\n \r\nACCOUNTS RECEIVABLE Accounts receivable consist of allotments due from the Board of Regents of the University System of Georgia - Administrative Central Office, reimbursements 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 Prepaid items are payments made to vendors in advance of the receipt of goods and services that will benefit periods subsequent to the balance sheet date. \r\n \r\n- 10- \r\n \r\n SAVANNAH STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1997 \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 of this 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 of 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 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 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 of development authorities created by the laws of the 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 \r\n- 11 - \r\n \r\n SAVANNAH STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30,1997 \r\n \r\nEXHIBIT \"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 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 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, 1997, 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 'I - Amounts covered by depository insurance or collateralized with securities (at market value) held by the University or by its agent in the University's name. \r\n \r\nCategory 2 - Amounts collateralized with securities (at market 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 market 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\nTotal Cash 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$ Ll24Q4Q31 $ 2511.32759 $ 252113.41 $ 62198557 $ 1637.22861 \r\n \r\nCATEGORIZATION OF INVESTMENTS At June 30, 1997, the carrying amount and market value of the University's total investments were $702,827.05 and $702,162.18 respectively, and consisted entirely of funds in the Board of Regents ShortTerm Investment Fund Investment Pool which are not required to be categorized since the University did not own any specific identifiable securities in the pool. \r\n \r\nNOTE 3: INVESTMENT IN PLANT \r\n \r\nThe following is a summary oflnvestment in Plant fixed assets as of June 30, 1997: \r\n \r\nLand Buildings Improvements Other Than Buildings Equipment Library Books and Collections \r\n \r\n$ 325,975.16 33,329,411.11 7,611,129.58 8,081,249.50 4,229,485.86 \r\n \r\nTotal Investment in Plant \r\n \r\n$53,577,251.21 \r\n \r\n- 12- \r\n \r\n SAVANNAB STATE UNNERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1997 \r\n \r\nEXHIBIT\"D\" \r\n \r\nNOTE 4: RISK MANAGEMENT \r\nSavannah State University 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 audit report of the 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$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 ofRegents. \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 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. The University, as an organizational unit ofthe Board of Regents ofthe 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 5: DEFERRED COMPENSATION PLAN \r\nThe State of Georgia offers its employees a deferred compensation plan in accordance with Internal Revenue Code Section 457. The plan, available to employees of the State of Georgia and county health departments, permits such employees to defer a portion of their salary until future years. Participation in the plan is optional. Participants choose the option or options in which they wish to participate. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights ofthe State of Georgia subject only to the claims of the State's general creditors. Participants' rights under the plan are equal to those of a general creditor of \r\n \r\n- 13 - \r\n \r\n SAVANNAH STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1997 \r\n \r\nEXHIBIT\"D\" \r\n \r\nNOTE 5: DEFERRED COMPENSATION PLAN \r\nthe State of Georgia in an amount equal to the fair market value of the deferred account for each participant. Financial information relative to the plan will be presented in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1997. \r\nA change in the Internal Revenue Code Section 457, effective August 20, 1996, requires that by January 1, 1999, all existing eligible deferred compensation plans must be held in trust for the exclusive benefit of participants and their beneficiaries. The State of Georgia's plan will be converted effective July 1, 1998. \r\nNOTE 6: RETIREMENTPLANS \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nPlan Description Savannah State University participates in the Teachers Retirement System of Georgia (TRS), a cost-sharing multiple-employer public employee retirement system (PERS) established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia. \r\nTRS provides service retirement, disability retirement, and survivor's benefits for its members. A member is eligible for service retirement after the member (1) has attained the age of 60 years and has at least ten years of creditable service, or (2) has at least 25 years of creditable service. For those members with 30 years of service or those age 60 with at least ten years of service, normal retirement benefits are equal to 2% of the average ofthe member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. Early retirement benefits are reduced by the lesser of 1/12 of 7% for each month the member is below age 60, or by 7% for each year or fraction thereof by which the member has less than 30 years of service. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death. \r\nRetirement benefits also include death and disability benefits whereby the disabled member or surviving \r\n spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability \r\nretirement, whichever is greater. The benefit is based on member's creditable service (minimum of 1 years of service) and compensation up to the date of death or up to the time of disability. \r\nMembers become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest. \r\nFunding Policy Employees of the University who are covered by TRS are required to pay 5% oftheir gross earnings to TRS. The University makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1997, the employer contribution rate was 11.81% for \r\n- 14- \r\n \r\n SAVANNAH STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1997 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 6: RETIREMENT PLANS \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFunding Policy covered employees. In addition, the University contributed 4.24% to the TRS on behalfof employees electing to participate in the Regents Retirement Plan. The interest rate assumption (rate of return on investments) was 7.50%. The University's payroll for the year ended June 30, 1997, for employees covered by TRS was $12,384,184.77. The University's total payroll for all employees was $16,860,110.79. \r\nTotal contributions to the plan made during fiscal year 1997 amounted to $2,206,275.96, of which $1,590,288.68 was made by the University and $615,987.28 was made by employees. These contributions represented 12.84% (University) and 5% (employees) of covered payroll. \r\nTotal contributions from all employers to TRS for the year ended June 30, 1997, were $652,928,555.00. The University's contribution for the year ended June 30, 1997, of$I,590,288.68 was actuarially determined and represented .2436% of total contributions made by all participating employers. \r\nActuarial and Trend Information Actuarial and historical trend information is presented in the TRS June 30, 1997, financial report which can be obtained through TRS. \r\nREGENTS RETIREMENT PLAN \r\nPlan Description The State of Georgia provides optional pension benefits for eligible faculty and principal administrators through a defined contribution plan. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. \r\nFunding Policy State legislation requires that prior to January 1, 1997, the employer contribute 4% of the participating employee's earnable compensation, and on and after January 1, 1997, an amount equal to the normal cost contribution determined by the TRS Board of Trustees. Since January 1, 1997, the employer contribution rate was 7.42%. Employees contribute 5% of their earnable compensation. Amounts attributable to all plan contributions are fully vested and non-forfeitable at all times. The University's payroll for employees covered by the Regents Retirement Plan for the year ended June 30, 1997, was $3,166,056.60. The University's total payroll for all employees was $16,860,110.79. \r\nThe University and the covered employees made the required contributions of $190,182.58 (5.69%) and $158,094.49 (5%), respectively. \r\n \r\n- 15 - \r\n \r\n SAVANNAH STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1997 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 6: RETIREMENT PLANS \r\nGEORGIA DEFINED CONTRIBUTION PLAN \r\nPlan Description Savannah State University participates in the Georgia Defined Contribution Plan (GDCP) which is a singleemployer defined contribution plan established by the General Assembly of Georgia for the purpose of providing retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees of the Employees' Retirement System of Georgia. \r\nBenefits A member may' retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board of Trustees. If a member has less than $ 3,500.00 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\nThe Employees' Retirement System of Georgia issues a financial report each fiscal year which may be obtained through ERS. \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. The University's payroll for the year ended June 30, 1997, for employees covered by GDCP was $508,457.69. The University's total payroll for all employees was $16,860,110.79. \r\nTotal contributions made by employees during fiscal year 1997 amounted to $38,134.87 which represents 7.5% of covered payroll. These contributions met the requirements of the plan. \r\nNOTE 7: 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. \r\n- 16- \r\n \r\n SAVANNAH STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1997 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 8: CONTINGENCIES \r\n \r\nAmounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. This could result in refunds to the grantor agency for any expenditures which are disallowed under grant terms. The amount of expenditures which may be disallowed by the grantor cannot be determined at this time although the University expects such amounts, if any, to be immaterial to its overall financial position. \r\n \r\nLitigation, claims and assessments filed against Savannah State University (an organizational unit of the Board of Regents of the University System of Georgia), ifany, 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, 1997. \r\n \r\nNOTE 9: POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS \r\n \r\nPursuant to the general powers conferred by the Official Code of Georgia Annotated Section 20-3-31, the Board of Regents of the University System of Georgia has established group health and life insurance programs for regular employees ofthe University System of Georgia. It is the policy ofthe 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. Employees who are eligible for retirement or disability under the criteria established by the Teachers Retirement System of Georgia and who have at least ten years of service with the University System ofGeorgia 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 of June 30, 1997, there were 123 employees who had retired or were disabled that were receiving these postemployment health and life insurance benefits. For the year ended June 30, 1997, Savannah State University recognized as incurred $98,445.61 of expenditures, which was net of $40,299.50 of participant contributions. \r\n \r\nNOTE 10: ENROLLMENT \r\n \r\nThe equivalent full-time student enrollment of Savannah State University was as follows: \r\n \r\nRegular Term Fall Quarter, 1996 Winter Quarter, 1997 Spring Quarter, 1997 \r\n \r\n2,783 2,749 2,663 \r\n \r\nAverage \r\n \r\nSummer School, 1996 \r\n \r\n- 17 - \r\n \r\n THIS PAGE LEFT BLAHK \r\n \r\n SUPPLEMENTARY INFORMAnON - 19- \r\n \r\n SAVANNAH STATE UNIVERSITY COMBINING BALANCE SHEET \r\nCURRENT FUNDS - UNRESTRICTED JUNE 30, 1997 \r\n \r\nEXHIBIT\"E\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable Inventories Prepaid Items Due from Other Fund Groups \r\n \r\nRESIDENT \r\n \r\nLOTIERYFOR \r\n \r\nAUXILIARY \r\n \r\nSTUDENT \r\n \r\nINSTRUCTION EDUCATION ENTERPRISES ACTIVITIES \r\n \r\nTOTAL \r\n \r\n$ 119,630,82 $ 119,630,82 \r\n \r\n$ 611,838.47 $ 102,000,00 $ 146,809,03 \r\n \r\n6,618,37 \r\n \r\n867,265,87 \r\n \r\n55,477.91 \r\n \r\n527,903,00 \r\n \r\n583,380,91 \r\n \r\n9,954,16 \r\n \r\n9,954,16 \r\n \r\n519,937,99 \r\n \r\n519,937,99 \r\n \r\nTotal Assets \r\n \r\n$ 1,197,208,53 $ 102,000,00 $ 674.712,03 $ 126,249,19 $ 2,100,169.75 \r\n \r\nLIABILITIES AND FUND BALANCES \r\nLiabilities Cash Overdraft Accounts Payable Student Deposits Deferred Revenue Tuition and Fees \r\nTotal Liabilities \r\nFund Balances Unrestricted \r\n \r\n$ $ 632,328.28 \r\n437,071.00 $ 1,069,399.28 $ \r\n127,809,25 \r\n \r\n45,042.36 $ 48,840,30 \r\n93,882.66 $ \r\n \r\n146,757.71 24,639.09 $ 80,370,00 \r\n \r\n$ 40,535.52 \r\n \r\n191,800.07 746,343.19 \r\n80,370,00 \r\n \r\n165,087.82 \r\n \r\n23,583.00 \r\n \r\n625,741.82 \r\n \r\n416,854,62 $ 64,118,52 $ 1,644,255.08 \r\n \r\n8,117.34 \r\n \r\n257,857.41 \r\n \r\n62,130.67 \r\n \r\n455,914.67 \r\n \r\nTotal Liabilities and Fund Balances \r\n \r\n$ 1,197,208,53 $ 102,000,00 $ 674,712.03 $ 126,249.19 $ 2,100,169.75 \r\n \r\nSee notes to the financial statements. \r\n \r\n20 - \r\n \r\n SAVANNAH STATE UNIVERSITY COMBINING STATEMENT OF CHANGES IN FUND BALANCES \r\nCURRENT FUNDS - UNRESTRICTED YEAR ENDED JUNE 3D. 1997 \r\n \r\nEXHIBIT\"F\" \r\n \r\nFUND BALANCES JUNE 30.1997 \r\n \r\n$ 127,809.25 $ \r\n \r\n8,117.34 $ 257,857.41 $ 62,130.67 $ 455,914.67 \r\n \r\nSee notes to the financial statements. \r\n \r\n- 21 - \r\n \r\n THIS PAGE LEFT BLAHK \r\n \r\n SAVANNAH STATE UNIVERSITY COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, \r\nAND OTHER CHANGES UNRESTRICTED \r\nYEAR ENDED JUNE 30.1997 \r\n \r\nEXHIBIT\"G\" \r\n \r\nREVENUES \r\nState Appropriations Tuition and Fees Federal 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 Faculty and Staff Housing Food Services Stores and Shops Intercollegiate Athletics Other Service Units \r\nTotal Expenditures \r\nOTHER TRANSFERS AND ADDITIONS/ \u003cDEDUCTIONS) \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 \r\n \r\nLOTIERYFOR \r\n \r\nAUXILIARY \r\n \r\nINSTRUCTION EDUCATION ENTERPRISES \r\n \r\nSTUDENT ACTIVITIES \r\n \r\nTOTAL \r\n \r\n$ 16,803,715,00 $ 5,529,796,00 175,631,87 33,527,77 \r\n310,314,64 \r\n$ 22,852,985,28 $ \r\n \r\n322,500,00 $ \r\n \r\n$ \r\n4,310,434,35 6,803,65 \r\n \r\n$ 246,141,75 \r\n61A30,07 \r\n \r\n17,126,215,00 5,775,937,75 \r\n175,631,87 33,527,77 4,310,434,35 378,548,36 \r\n \r\n322,500,00 $ 4,317,238,00 $ 307,571,82 $ 27,800,295,10 \r\n \r\n$ 10,437,004,72 $ 44,537,77 594,994,09 \r\n2,486,152,65 1,774,753,59 4,213,356,73 3,179,999,93 \r\n89,346,00 \r\n$ 22,820,145,48 $ \r\n \r\n35,550,34 \r\n278,038,15 2,050,00 \r\n28,929,00 \r\n \r\n$ 10A72,555,06 \r\n \r\n44,537,77 \r\n \r\n594,994,09 \r\n \r\n2,764,190,80 \r\n \r\n$ 274,769,79 2,051,573,38 \r\n \r\n4,242,285,73 \r\n \r\n3,179,999,93 \r\n \r\n24,420,66 \r\n \r\n113,766,66 \r\n \r\n$ 1,280,215,75 19,055,78 \r\n1,337,309,63 195,155,19 \r\n1,088,536,88 431A15,90 \r\n \r\n1,280,215,75 19,055,78 \r\n1,337,309,63 195,155,19 \r\n1,088,536,88 431A15,90 \r\n \r\n344,567,49 $ 4,351 ,689,13 $ 299,190.45 $ 27,815,592,55 \r\n \r\n$ -191,730,35 \r\n \r\n$ -191,730,35 \r\n \r\n$ -45,345,00 \r\n \r\n-45,345,00 \r\n \r\n$ \r\n \r\n28,358,98 \r\n \r\n4,246,00 $ 6,930,88 \r\n \r\n39,535,86 \r\n \r\n-49A68,14 \r\n \r\n-49A68,14 \r\n \r\n$ -21,109,16 $ -45,345,00 $ -187,484,35 $ 6,930,88 $ -247,007,63 \r\n \r\nNet Increase/(Decrease) in Fund Balances \r\n \r\n$ \r\n \r\n11,730,64 $ -67A12.49 $ -221,935.48 $ 15,312,25 $ -262,305,08 \r\n \r\nSee notes to the financial statements. \r\n \r\n- 23- \r\n \r\n SAVANNAH STATE UNIVERSITY SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET \r\nRESIDENT INSTRUCTION YEAR ENDED JUNE 30,1997 \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$ 16,803.715.00 \r\n \r\n$ 1,346,660.00 \r\n \r\n6.049,270.28 $ 15,492,639,05 \r\n \r\n504.572.31 $ _ _---'-'17'\"\"',8=9=5,;...;.18~ \r\n \r\n$ 22,852.985.28 $ 15,492,639.05 $ 1,851.232,31 $ _ _---.:...;17....:..:.8:..::9.=.;5,~18~ \r\n \r\nEXPENDITURES \r\n \r\nPersonal Services: \r\n \r\nEducation. General and Departmental Services $ 18,306.135.07 \r\n \r\nSponsored Operations \r\n \r\n$ 1,479.621,35 \r\n \r\nOperating Expenses: \r\n \r\nEducation. General and Departmental Services \r\n \r\n3,884,176.15 \r\n \r\nSponsored Operations \r\n \r\n14,013,017.70 \r\n \r\nCapital Outlay \r\n \r\n$ 1.815.833,73 $ \r\n \r\nSpecial Funding Initiative \r\n \r\n251.213.70 \r\n \r\nOffice of Minority Business Enterprise \r\n \r\n378.620.56 \r\n \r\n282,906,95 \r\n \r\n$ 22,820,145,48 $ 15,492,639.05 $ 1,815,833.73 $ _ _..;2.;.;82;.:,9.;.;0;..;,6..;,9_5 \r\n \r\nExcess of Revenues over Expenditures \r\n \r\n$ \r\n \r\n32.839,80 $ \r\n \r\n0,00 $ \r\n \r\n35.398.58 $ ==-=2\"\"'65=,0...1...1._,7.7... \r\n \r\n(1) To eliminate tuition waivers not budgeted and to reclassify prior year fund balances budgeted as revenues, \r\n \r\nSee notes to the financial statements, \r\n \r\n- 24- \r\n \r\n SCHEDULE \"1\" \r\n \r\nTOTAL \r\n \r\nADJUSTMENTS \r\n \r\nTOTAL \r\n \r\n(1) \r\n \r\n(Budget Basis) \r\n \r\nBUDGET \r\n \r\nVARIANCEFAVORABLE (UNFAVORABLE) \r\n \r\n$ 18,150,375.00 22,064,376.82 $ \r\n \r\n$ 18,150,375.00 $ 18,150,375.00 $ \r\n \r\n0.00 \r\n \r\n175,665.77 22,240,042.59 23,441,965.00 \r\n \r\n-1,201,922.41 \r\n \r\n$ 40,214,751.82 $ 175,665.77 $ 40,390,417.59 $ 41,592,340.00 $ -1,201,922.41 \r\n \r\n$ 18,306,135.07 1,479,621.35 \r\n3,884,176.15 $ 14,013,017.70 2,098,740.68 \r\n251,213.70 378,620.56 \r\n \r\n$ 18,306,135.07 $ 18,326,165.00 $ 1,479,621.35 1,463,201.00 \r\n \r\n-89,346.00 \r\n \r\n3,794,830.15 14,013,017.70 2,098,740.68 \r\n251,213.70 378,620.56 \r\n \r\n3,624,694.00 14,839,802.00 2,536,453.00 \r\n252,025.00 550,000.00 \r\n \r\n20,029.93 -16,420.35 \r\n-170,136.15 826,784.30 437,712.32 \r\n811.30 171,379.44 \r\n \r\n$ 40,411,525.21 $ \r\n \r\n-89,346.00 $ 40,322,179.21 $ 41,592,340.00 $ 1,270,160.79 \r\n \r\n$ -196,773.39 $ \r\n \r\n265,011.77 $ \r\n \r\n68,238.38 \r\n \r\n$ \r\n \r\n6.8.,.23..8.,;;;.3-=8 \r\n \r\n- 25- \r\n \r\n THIS PAGE LEFT BLANK \r\n \r\n SAVANNAH STATE UNIVERSITY SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET \r\nLOTIERY FOR EDUCATION YEAR ENDED JUNE 30. 1997 \r\n \r\nSCHEDULE \"2\" \r\n \r\nREVENUES State Appropriations \r\n \r\nCURRENT FUNDS PLANT FUNDS \r\n \r\nTOTAL \r\n \r\nUNRESTRICTED UNEXPENDED (Budget Basis) \r\n \r\nBUDGET \r\n \r\nVARIANCEFAVORABLE (UNFAVORABLE) \r\n \r\n$ \r\n \r\n322,500.00 $ \r\n \r\n40,500.00 $ 363,000.00 $ 363,000.00 $ \r\n \r\n0.00 \r\n \r\nEXPENDITURES \r\n \r\nEquipment, Technology and Construction \r\n \r\nTrust Fund \r\n \r\n$ \r\n \r\nSpecial Funding Initiatives \r\n \r\n159,027.31 $ 185,540.18 \r\n \r\n85,845.00 $ 244,872.31 $ 204,000.00 $ \r\n \r\n185,540.18 \r\n \r\n159,000.00 \r\n \r\n-40,872.31 -26,540.18 \r\n \r\n$ \r\n \r\n344,567.49 $ \r\n \r\n85,845.00 $ 430,412.49 $ 363,000.00 $ \r\n \r\n-67,412.49 \r\n \r\nExcess of Revenues over Expenditures \r\n \r\n$ \r\n \r\n-22,067.49 $ -45,345.00 $ -67,412.49 \r\n \r\n$ \r\n \r\n-67,412.49 \r\n \r\nSee notes to the financial statements. \r\n \r\n- 27- \r\n \r\n SAVANNAH STATE UNIVERSITY CHANGES IN INVESTMENT IN PLANT \r\nYEAR ENDED JUNE 30,1997 \r\n \r\nLand Buildings Improvements Other Than Buildings Equipment Library Books and Collections \r\n \r\nBALANCE JULY 1, 1996 \r\n \r\nCURRENT FUNDS UNRESTRICTED RESTRICTED \r\n \r\n$ 325,975.16 \r\n \r\n31,255,432.49 \r\n \r\n7,194,018.08 \r\n \r\n6,894,473.31 $ \r\n \r\n750,816.00 $ 740,017.29 \r\n \r\n4,017,521.08 \r\n \r\n218,964.78 \r\n \r\n$ 49,687,420.12 $ \r\n \r\n969,780.78 $ 740,017,29 \r\n \r\nSee notes to the financial statements. \r\n \r\n- 28- \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\nDEDUCTIONS DISPOSALS! DELETIONS! ADJUSTMENTS \r\n \r\nBALANCE JUNE 30, 1997 \r\n \r\n$ 325,975.16 \r\n \r\n$ 1,485,005.67 $ \r\n \r\n262,972.95 $ \r\n \r\n326,000.00 \r\n \r\n33,329,411.11 \r\n \r\n213,034.50 \r\n \r\n19,934.00 \r\n \r\n184,143.00 \r\n \r\n7,611,129.58 \r\n \r\n$ \r\n \r\n304,057.10 \r\n \r\n8,081,249.50 \r\n \r\n7,000.00 \r\n \r\n4,229,485.86 \r\n \r\n$ 1,698,040.17 $ \r\n \r\n282,906.95 $ \r\n \r\n510,143.00 $ \r\n \r\n311,057.10 $ 53,577,251.21 \r\n \r\n- 29- \r\n \r\n SAVANNAH STATE UNIVERSITY SCHEDULE OF FUND BALANCES CURRENT FUNDS AND PLANT FUNDS \r\nJUNE 30, 1997 \r\n \r\nRESIDENT INSTRUCTION \r\n \r\nCURRENT FUNDS UNRESTRICTED LOTIERYFOR AUXILIARY EDUCATION ENTERPRISES \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 Equipment, Technology and Construction Trust Fund \r\n \r\n$ \r\n \r\n8,117,34 \r\n \r\nFor Intercollegiate Athletics \r\n \r\n$ -139,495.28 \r\n \r\nFor Inventory Reserve \r\n \r\n$ \r\n \r\n55,477.91 \r\n \r\n527,903.00 \r\n \r\nFor Renewals and Replacements Reserve \r\n \r\nFor SUbsequent Years' Expenditures \r\n \r\n-159,566.72 $ \r\n \r\n62,130.67 \r\n \r\nFor Uncollectible Accounts \r\n \r\n24,967.26 \r\n \r\n29,016.41 \r\n \r\nSurplus \r\n \r\nRegular \r\n \r\n47,364.08 \r\n \r\nLottery for Education \r\n \r\n$ 127,809.25 $ \r\n \r\n8,117.34 $ 257,857.41 $ \r\n \r\n62,130.67 \r\n \r\n$ 127,809.25 $ \r\n \r\n8,117.34 $ 257,857.41 $ ====62=:'.,;,;13=0=.6=7 \r\n \r\nSee notes to the financial statements. \r\n \r\n- 30- \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\nTOTAL \r\n \r\n$ 53,577,251.21 $ 53,577,251.21 \r\n \r\n$ 361,192.67 \r\n \r\n$ 36U92.67 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n_____ $ \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n$ 361,192.67 $ \r\n \r\n0.00 $ \r\n \r\n$ \r\n \r\n22,184.83 \r\n \r\n304,678.85 \r\n \r\n$ \r\n \r\n22,184.83 \r\n \r\n8,117.34 -139,495.28 583,380.91 304,678.85 \r\n-97,436.05 53,983.67 \r\n \r\n...::O\"\",.O~O \r\n0.00 $ _ _.:::32;:.:6:J.:,8::.;:6;.::;3':.::;68:::. \r\n \r\n47,364.08 0.00 \r\n$ 782,778.35 \r\n \r\n0.00 $ \r\n \r\n326,863.68 $ 53,577,251.21 $ 54,721,222.23 \r\n \r\n- 31 - \r\n \r\n SAVANNAH STATE UNIVERSITY RECONCILIATION OF SALARIES AND TRAVEL \r\nYEAR ENDED JUNE 30, 1997 \r\n \r\nSCHEDULE \"5\" \r\n \r\nTotals per Annual Supplement \r\n \r\nAccruals June 30,1996 \r\n \r\nAdjustments \r\n \r\nShared Services on Jointly Staffed Personnel \r\n \r\nArmstrong Atlantic State University \r\n \r\nAwan, \r\n \r\nIjaz \r\n \r\nEason, \r\n \r\nThomas \r\n \r\nStewart, \r\n \r\nMerolyn \r\n \r\nOther \r\n \r\nImmele, \r\n \r\nRene \r\n \r\nMalachi, \r\n \r\nKaren \r\n \r\nRichardson, \r\n \r\nJoseph \r\n \r\nTotals per Report \r\n \r\nSALARIES $ 16,899,042.88 $ \r\n \r\nTRAVEL 318,067.35 \r\n \r\n-23,019.70 \r\n \r\n-2,000.00 -8,715.00 \r\n-25.00 \r\n-300,00 -90.39 \r\n-4,782.00 \r\n$ 16,860,110.79 $ 318,067.35 \r\n \r\nDISTRIBUTION BY FUND \r\nCURRENT FUNDS Unrestricted Resident Instruction Regular Special Funding Initiative Office of Minority Business Enterprise Auxiliary Enterprises Student Activities Restricted Resident Instruction \r\n \r\n$ 14,093,566.11 $ 124,325.20 189,392.98 \r\n1,245,678.17 \r\n1,207,148.33 \r\n \r\n149,315.65 2,900.17 \r\n24,029.19 47,718.59 \r\n295.00 \r\n93,808,75 \r\n \r\n$ 16,860,110.79 $ 318,067.35 \r\n \r\nSee notes to the financial statements. \r\n \r\n- 32- \r\n \r\n SECTION II AUDlTEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n SAVANNAH STATE UNIVERSITY AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1997 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\n548-96-01 548-96-02 548-96-03 548-96-04 548-96-05 548-96-06 \r\n \r\nPartially Resolved - See Corrective ActionlResponses Unresolved - See Corrective ActionlResponses Partially Resolved - See Corrective Action Implemented Previously Reported Corrective Action Implemented Unresolved - See Corrective ActionlResponses Previously Reported Corrective Action Implemented \r\n \r\nCORRECTIVE ACTIONIRESPONSES \r\n \r\nREVENUES/RECEIVABLES/RECEIPTS Student Accounts Receivable Not Supported by Financial Aid Finding Control Number 548-96-01 \r\n \r\nThe University used the services of its local collection agency and the loan Collection Clerk to assist with the collection efforts of accounts receivables. To further reduce accounts receivable, the University wrote-off uncollectible debts of $100 or less under House Bill 1536 (codified as O.C.G.A. Section 50-16-17). The University also used a portion of its surplus funds to increase the reserve for uncollectible debts in excess of $100. The Financial Aid Deferment Memo form was used to assist with managing quarterly deferments. \r\n \r\nEXPENDITURESILIABILITIESIDISBURSEMENTS Deficit Cash Balance Finding Control Number 548-96-02 \r\n \r\nTo gradually eliminate this deficit over a period oftime, the University's corrective action plan was to apply a portion of its annual General Scholarship Funds to the Naval Science Scholarship account. A portion of these funds were applied to the deficit. However, the amount applied was relatively small compared to the size of the deficit. The University has plans to significantly increase its fund raising efforts in the future to generate a substantial amount of funds for the General Scholarship Fund. A portion of these funds will be applied to the deficit. \r\n \r\nFUND BALANCE Deficit to be Funded from Subsequent Years' Operation Finding Control Number 548-96-03 \r\n \r\nThe corrective action taken was to apply the annual surplus balance of the Athletic Program to the deficit balance until it is paid in full. The Athletic Program realized a surplus of $68,549.02 as of June 30, 1997. This reduced the deficit to $139,102.93. It is projected that the Athletic Program will continue to realize a surplus balance of $25,000 to $60,000 at June 30, 1998. The University \r\n \r\n- 1- \r\n \r\n SAVANNAH STATE UNIVERSITY AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30, 1997 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nCORRECTIVE ACTIONIRESPONSES \r\n \r\nFUND BALANCE Deficit to be Funded from Subsequent Years' Operation Finding Control Number 548-96-03 \r\n \r\nwill continue to apply surplus balances until the deficit is eliminated. Increased external athletic fund raising efforts to assist with the deficit and overall operations of the Athletic Program will contiIlUe to be a top priority of the University. \r\n \r\nINVENTORIES Inadequate Supply/Resale Inventory Records Finding Control Number 548-96-05 \r\n \r\nOn February 20 and 24, 1997, the University developed and implemented written policies and procedures to ensure that inventories are properly maintained for Concession, Bookstore and Plant Operations. However, policies and procedures were not properly implemented, resulting in an overstatement of the Bookstore inventory. It also resulted in Plant Operations inventory not being recorded in the accounting records for fiscal year 1996-97. This matter will be properly addressed with the appropriate personnel to ensure that all inventories are correct and properly recorded in the accounting records. \r\n \r\nPRIOR YEAR FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\n548-96-07 \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\n-2- \r\n \r\n SECTION ill CURRENT YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n SAVANNAH STATE UNIVERSITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 1997 \r\nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nINVENTORIES Inadequate Supply/Resale Inventory Records Finding Control Number FS-548-97-01 \r\nFor the year under review, the supply/resale inventory records revealed that the internal accounting control procedures for the supply and resale perpetual inventory system were deficient. The following is a summary ofthe deficiencies: \r\n(1) The physical inventory counts for the bookstore inventory at fiscal year end were not performed in an orderly and efficient manner. \r\n(2) Plant operations perpetual inventory system was not operational. The amounts based on the inventory listing at June 30, 1997, were not recorded on the general ledger. Audit adjustments were made to reflect this inventory on the University's financial statements. \r\n(3) The bookstore inventory was recorded incorrectly on the general ledger at retail price rather than at cost. Audit adjustments were necessary to reduce the inventory valuation to cost. \r\nThese deficiencies are a result ofmanagement's failure to follow written policies and procedures and to ensure inventories are properly maintained. The University should implement procedures to ensure that physical inventory counts are performed in a reliable manner and are included in the general ledger. \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bs25-b1995-h96","title":"Audit report, state of Georgia, Savannah State University, Savannah, Georgia, year ended June 30, 1996","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["year ended June 30, 1996: Georgia. Department of Audits, issuing body.","year ended June 30, 1997-year ended June 30, 1999: Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, Chatham County, 31.97402, -81.09243"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["1995/1996"],"dcterms_description":["Began with: Year ended June 30, 1996; ceased with: Year ended June 30, 1999.","Report year ends June 30.","Description based primarily on print version record.","Year ended June 30, 1999, released in 2000? (Georgia Government Publications database, viewed January 9, 2024)."],"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":["Savannah State University (Ga.)--Appropriations and expenditures","Financial statements--Georgia","Auditors' reports--Georgia"],"dcterms_title":["Audit report, state of Georgia, Savannah State University, Savannah, Georgia, year ended June 30, 1996"],"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-bs25-b1995-h96"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bs25-b1995-h96"],"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":"C; A \r\nA~OO \r\n\"RJ \r\n~~S \\qQS -90 \r\nAUDIT REPORT STATE OF GEORGIA SAVANNAH STATE UNIVERSITY SAVANNAH, GEORGIA YEAR ENDED JUNE 3D, 1996 \r\n \r\n SAVANNAH STATE UNIVERSITY - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL 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\n6 \r\n \r\nD NOTES TO THE FINANCIAL STATEMENTS \r\n \r\n7 \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\n21 \r\n \r\nG COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, \r\n \r\nAND OTH, ER CHANGES \r\n \r\nUNRESTRICTED \r\n \r\n23 \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\n24 \r\n \r\n2 \r\n \r\nLOTTERY FOR EDUCATION \r\n \r\n26 \r\n \r\nSCHEDULES OF OPERATIONS \r\n \r\n3 \r\n \r\nLOAN FUNDS \r\n \r\n27 \r\n \r\n4 \r\n \r\nENDOWMENT AND SIMILAR FUNDS \r\n \r\n28 \r\n \r\n5 SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS \r\n \r\nAGENCY FUNDS \r\n \r\n29 \r\n \r\n6 CASH AND CASH EQUIVALENTS \r\n \r\n31 \r\n \r\n7 ACCOUNTS RECEIVABLE \r\n \r\n33 \r\n \r\n8 CHANGES IN INVESTMENT IN PLANT \r\n \r\n34 \r\n \r\n9 SCHEDULE OF FUND BALANCES \r\n \r\nCURRENT FUNDS AND PLANT FUNDS \r\n \r\n36 \r\n \r\n SAVANNAH STATE UNIVERSITY - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\nSCHEDULES \r\n \r\n10 SCHEDULE OF REVENUES \r\n \r\nCURRENT FUNDS \r\n \r\n38 \r\n \r\nSCHEDULES OF EXPENDITURES BY OBJECT \r\n \r\n11 \r\n \r\nCURRENT FUNDS \r\n \r\n40 \r\n \r\n12 \r\n \r\nPLANT FUNDS \r\n \r\n44 \r\n \r\n13 RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL \r\n \r\n45 \r\n \r\n14 RECONCILIATION OF PER DIEM AND FEES \r\n \r\n46 \r\n \r\nSECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n CLAUDE L. VICKERS \r\nSTATE AUDITOR (404) 6562174 \r\n \r\nDEPARTMENT OF AUDITS \r\n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \r\nDecember 11, 1996 \r\n \r\nHonorable Zell Miller, Governor Members ofthe General Assembly of Georgia Members ofthe Board ofRegents ofthe University System of Georgia \r\nand Honorable John T. Wolfe, President Savannah State University \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements (Exhibits A through D) of Savannah State University as ofand for the year ended June 30, 1996. These financial statements are the responsibility of the University's management. Our responsibility is to express an opinion on these financial statements based on our audit. \r\nWe conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. \r\nAs described in Note 1 to the financial statements, Georgia Law and State budgetary policy require the University to prepare its financial statements on a basis which is not consistent with generally accepted accounting principles with respect to the recording of encumbrances as expenditures and liabilities. To conform with generally accepted accounting principles, encumbrances should be recorded as a reservation of fund balance. The effects on the financial statements of this departure from generally accepted accounting principles were not reasonably determinable, but are believed to be material. \r\n \r\n96ARL-62 \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. Ifcompensated absences were reported, liabilities would be increased and fund balance would be decreased by $758,613.59 as ofJune 30, 1996, and the net change in fund balance for the year ended June 30, 1996, would be decreased by $15,811.85. \r\nIn our opinion, except for the effects on the financial statements ofthe matters discussed in the third and fourth paragraphs, the financial statements referred to above present fairly, in all material respects, the financial position of Savannah State University as ofJune 30, 1996, and the changes in fund balances and the current operating funds revenues, expenditures, and other changes for the year then ended in conformity with generally accepted accounting principles. \r\nOur audit was made for the purpose offorming an opinion on the financial statements taken as a whole. The accompanying supplementary information (Exhibits E through G and Schedules 1 through 14) is presented for purposes of additional analysis and is not a required part of the financial statements of Savannah State University. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, except for the effects of the matters discussed in the third and fourth paragraphs, such information is fairly presented in all material respects in relation to the financial statements taken as a whole. \r\nRespectfully submitted, \r\nt:L~ \r\nClaude L. Vickers State Auditor \r\nCLV:gp 96ARL-62 \r\n \r\n FINANCIAL STATEMENTS - 1- \r\n \r\n SAVANNAH STATE UNIVERSITY COMBINED BALANCE SHEET ALL FUND GROUPS JUNE 30,1996 \r\n \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable Inventories Prepaid Items Due from Other Fund Groups Investment in Plant \r\nTotal Assets \r\nLIABILITIES AND FUND BALANCES \r\nLiabilities Accounts Payable Salaries Payable Student Deposits Deferred Revenue Tuition and Fees Deposits Held in Custody for Others Due to Other Fund Groups \r\nTotal Liabilities \r\nFund Balances U. S. Government Grants Refundable Institutional Loans - Restricted Endowment Term Endowment Net Investment in Plant Restricted Unrestricted \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\nCURRENT FUNDS UNRESTRICTED RESTRICTED \r\n \r\nLOAN FUNDS \r\n \r\n$ \r\n \r\n488,135.48 \r\n \r\n$ \r\n \r\n50,057.96 \r\n \r\n234,635.81 $ 1,090,874.82 \r\n \r\n789,247.55 \r\n \r\n688,401.76 \r\n \r\n8,706.96 \r\n \r\n935,201.81 \r\n \r\n$ 2,355,081.82 $ 1,090,874.82 $ 839,305.51 \r\n \r\n$ \r\n \r\n922,989.87 \r\n \r\n23,019.70 \r\n \r\n63,660.00 \r\n \r\n627,192.50 \r\n \r\n$ 935,201.81 \r\n \r\n$ 1,636,862.07 $ 935,201.81 \r\n \r\n$ 764,912.92 74,392.59 \r\n \r\n$ 155,673.01 \r\n \r\n$ \r\n \r\n718,219.75 \r\n \r\n$ \r\n \r\n718,219.75 $ 155,673.01 $ 839,305.51 \r\n \r\n$ 2,355,081.82 $ 1,090,874.82 $ 839,305.51 \r\n \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\nENDOWMENT AND SIMILAR \r\nFUNDS \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$ 614,392.34 $ 185,706.97 $ \r\n \r\n467,916.10 \r\n \r\n$ 267,023.95 $ 2,073,232.80 \r\n \r\n1,046,874.26 \r\n \r\n697.29 3,162,329.73 \r\n \r\n688,401.76 \r\n \r\n8,706.96 \r\n \r\n935,201.81 \r\n \r\n_ _ _ _ _ _ $ 49,687,420.12 \r\n \r\n49,687,420.12 \r\n \r\n$ 614,392.34 $ 1,232,581.23 $ \r\n \r\n467,916.10 $ 49,687,420.12 $ 267,721.24 $ 56,555,293.18 \r\n \r\n$ 1,136,248.48 $ \r\n \r\n$ 1,136,248.48 $ \r\n \r\n$ 420,746.11 193,646.23 \r\n \r\n$ \r\n \r\n96,332.75 $ \r\n \r\n$ 614,392.34 $ 96,332.75 $ \r\n \r\n68,894.00 68,894.00 \r\n \r\n$ 172,165.89 $ 2,300,298.24 23,019.70 63,660.00 \r\n \r\n95,555.35 \r\n \r\n627,192.50 95,555.35 \r\n935,201.81 \r\n \r\n$ 267,721.24 $ 4,044,927.60 \r\n \r\n$ 49,687,420.12 399,022.10 399,022.10 $ 49,687,420.12 \r\n \r\n$ 764,912.92 74,392.59 \r\n420,746.11 193,646.23 49,687,420.12 155,673.01 1,213,574.60 \r\n$ 52,510,365.58 \r\n \r\n$ 614,392.34 $ 1,232,581.23 $ \r\n \r\n467,916.10 $ 49,687,420.12 $ 267,721.24 $ 56,555,293.18 \r\n \r\n-3- \r\n \r\n SAVANNAH STATE UNIVERSITY COMBINED STATEMENT OF CHANGES IN FUND BALANCES \r\nAI.l FUND GROUPS YEAR ENDED JUNE 30, 1996 \r\n \r\n EXHIBIT \"8\" \r\n \r\nENDOWMENT AND SIMILAR \r\nFUNDS \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$ 181,239.00 1,1n.593.00 338,046.40 \r\n \r\n109.147.83 \r\n \r\n$ \r\n \r\n5.000.00 \r\n \r\n34,335.00 \r\n \r\n13,201.78 $ \r\n \r\n3.729.00 \r\n \r\n$ \r\n \r\n5,000.00 $ 1,857.292.01 $ \r\n \r\n$ 26.351,267.47 \r\n \r\n181,239.00 1.177,593.00 13,704,203.86 \r\n687.187.01 109,147.83 133.171.31 \r\n \r\n19,449.14 \r\n \r\n33,4n.29 32.698.52 15,389.93 \r\n \r\n7,637.01 \r\n \r\n20,316.38 6,608.54 \r\n \r\n$ 1.605,074.17 1,605,074.17 \r\n \r\n1,760.959.26 490,853.34 210,958.75 \r\n \r\n1,760,959.26 490,853.34 210,958.75 \r\n \r\n4,795.00 \r\n \r\n27,086.15 $ 4,067,845.52 $ 46,524,941.66 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n$ 35.907,163.45 4.286,695.n 199,921.06 \r\n \r\n$ \r\n \r\n75,746.14 \r\n \r\n90,372.49 \r\n \r\n1,026.00 4,936.19 3,734.18 \r\n \r\n1,760,959.26 $ \r\n \r\n490.853.34 $ \r\n \r\n550,099.05 \r\n \r\n2,251.812.60 550,099.05 \r\n \r\n$ \r\n \r\n0.00 $ 1,836,705.40 $ \r\n \r\n490,853.34 $ 550,099.05 $ 43,295,760.74 \r\n \r\n$ \r\n \r\n14,384.60 \r\n \r\n$ \r\n \r\n14,384.60 \r\n \r\n$ \r\n \r\n19.384.60 $ \r\n \r\n595,007.74 \r\n \r\n$ $ 20,586.61 $ 75,746.14 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n196,055.15 \r\n \r\n0.00 \r\n \r\n196,055.15 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n-267.712.04 $ 3,517.746.47 $ 3,229,180.92 \r\n \r\n666,734.14 46,169,673.65 49,281,184.66 \r\n \r\n$ 614,392.34 $ \r\n \r\n96,332.75 $ \r\n \r\n399,022.10 $ 49,687,420.12 $ 52,510,365.58 \r\n \r\n-5- \r\n \r\n Net Increase/(Decrease) in Fund Balances \r\n \r\n$ \r\n \r\nThe notes to the financial statements are an integral part of this statement. \r\n-6- \r\n \r\n9,026.60 $ -81,413.48 $ -72,386.88 \r\n \r\n SAVANNAH STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30.1996 \r\n \r\nEXHIBIT\"D\" \r\n \r\nNOTE 1: SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES \r\nREPORTING ENTITY Savannah State University (fonnerly Savannah State College) 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 of Savannah State University as a separate reporting entity. \r\nThe Board of Regents has constitutional authority to govern, control and manage the University System of Georgia. This authority includes but is not limited to the power to designate management, the ability to significantly influence operations, the authority to control institutions' budgets, the power to determine allotments of State funds to member institutions and the authority to prescribe accounting systems and administrative policies for member institutions. Savannah State University does not have authority to retain unexpended State funds (surplus) for any given fiscal year. Accordingly, Savannah State University is considered an organizational unit ofthe Board ofRegents ofthe University System of Georgia reporting entity for financial reporting purposes because ofthe 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 oflimitations and restrictions placed on the use of the resources available to the University, the accounts ofthe University are maintained in accordance with the principles offund 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 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, auxiliary enterprises, and student activities. \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 SAVANNAH STATE UNIVERSITY \r\nNOTES TO THE FINANCIAL STATEMENTS JUNE 30. 1996 \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\nENDOWMENT AND SIMllAR FUNDS \r\nThe fund used to account for endowment funds and term endowment funds. Endowment funds are subject to the restrictions ofgift instruments requiring that the principal be invested in perpetuity and income only be utilized. Term endowment funds are similar to endowment funds except that upon the passage of a stated period oftime or the occurrence of a particular event, all or part of the principal may be expended. \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 ofinstitutional 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\n. BASIS OF ACCOUNTING Except as otherwise disclosed in these notes, the financial statements are prepared on the modified accrual basis ofaccounting, which is materially the same as the accrual basis ofaccounting 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 of accounting 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\n \r\n- 8- \r\n \r\n SAVANNAH STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30. 1996 \r\n \r\nEXHIBIT liDII \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF ACCOUNTING Contractual 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 ofencumbrances 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 offund 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 of the 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 $758,613.59 and the related current year expenditure of $15,811.85 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 of the State of Georgia, 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 behalf of the 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\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\nBUDGET The Board of Regents of the University System of Georgia - Administrative Central Office receives State appropriation allotments for units of the University System of Georgia. The appropriated budget is adopted at the departmental level and represents appropriations provided by the Amended Appropriations Act of 19951996. The appropriated budget covers current funds and plant funds, except for Auxiliary Enterprises and \r\n- 9- \r\n \r\n SAYANNAB STATE UNIVERSITY \r\nNOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 3D. 1996 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUM:MAR.Y OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nBUDGET Student Activities which are not subject to appropriation. The budget allocation and disbursement ofthese funds is made to the various organizational units by the Administrative Central Office. In addition, the organizational units receive Federal funds and other funds directly and include these funds in the budget filed with the Administrative Central Office. \r\n \r\nA comparison ofanticipated 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 Personal Services: Education, General and Departmental Services Sponsored Operations \r\n \r\n$ 21.854.13 $ 18,144.64 \r\n \r\nThese overexpenditures of budget constitute a violation of Board ofRegents policy, but do not constitute statutory violations of budget authority. Statutory violations of budget authority are reported at the departmental 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 ofgoods for resale are valued at cost using the first-in, first-out method. \r\n \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\n \r\n- 10 - \r\n \r\n SAVANNAH STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1996 \r\n \r\nEXHIBIT \"D\" \r\n \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 ofindebtedness, notes, .or other direct obligations of the United States or ofthe State of Georgia. \r\n(2) Bonds, bills, certificates ofindebtedness, notes, or other obligations of the counties or municipalities of the State of Georgia. \r\n(3) Bonds ofany 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 of development authorities created by the laws of the State of Georgia. \r\n(5) Bonds, bills, certificates ofindebtedness, notes, or other obligations ofa 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 ofthe University System of Georgia) the option of exempting demand deposits from the collateral requirements. \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\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, 1996, are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk: \r\n \r\n- 11 - \r\n \r\n SAVANNAH STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30. 1996 \r\n \r\nEXHIBIT \"0\" \r\n \r\nNOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS \r\n \r\nCATEGORIZATION OF DEPOSITS Category 1 - Amounts covered by depository insurance or collateralized with securities (at market value) held by the University or by its agent in the University's name. \r\n \r\nCategory 2 - Amounts collateralized with securities (at market 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 market 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$ 1388998 10 $ 4091 171 79 $ 300 000 00 $ 589733 50 $ 3,201 438.29 \r\n \r\nIncluded in Category 3 above were certificates of deposit in the amount of $31,436.01 that were uncollateralized. Exemption from the State collateralization requirements granted by the State Depository Board extends only to demand deposits. \r\n \r\nCATEGORIZATION OF INVESTMENTS At June 30, 1996, the carrying amount and market value of the University's total investments were $667,474.70 and $664,703.89 respectively, and consisted entirely offunds in the Board ofRegents ShortTerm Investment Fund Investment Pool which are not required to be categorized since the University did not own any specific identifiable securities in the pool. \r\n \r\nNOTE 3: INVESTMENT IN PLANT \r\n \r\nTh~ following is a summary ofInvestment in Plant fixed assets as ofJune 30, 1996: \r\n \r\nLand Buildings Improvements Other Than Buildings Equipment Library Books and Collections \r\n \r\n$ 325,975.16 31,255,432.49 7,194,018.08 6,894,473.31 4,017,521.08 \r\n \r\nTotal Investment in Plant \r\n \r\n$49,687420.12 \r\n \r\nNOTE 4: RISK MANAGEMENT \r\n \r\nSavannah State University is a participant in the Board ofRegents of the University System of Georgia Health Benefits Plan, which is a self-insurance program ofhealth and dental benefits for employees and retirees ofthe University System ofGeorgia. The University and participating employees and retirees pay premiums to the \r\n \r\n- 12 - \r\n \r\n SAVANNAH STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1996 \r\n \r\nEXHIBIT\"D\" \r\n \r\nNOTE 4: RISK MANAGEMENT \r\nHealth Benefits Plan for this health insurance coverage. The Health Benefits Plan is included in the audit report ofthe Board ofRegents ofthe University System ofGeorgia - Administrative Central Office. All units ofthe University System ofGeorgia share the risk ofloss for claims ofthe 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 ofRegents. \r\nThe Department ofAdministrative 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. The University, as an organizational unit of the Board of Regents of the University System of Georgia, is part of the State of Georgia reporting entity, and as such, is covered by the State of Georgia risk management program administered by DOAS. Premiums for the risk management program are charged to the various state organizations by DOAS to provide claims servicing and claims payment. \r\nA self-insured program of professional liability for its employees was established by the Board ofRegents of the University System ofGeorgia 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 oftheir duties or in any way connected therewith. The program is administered by DOAS as a Self-Insurance Fund. \r\nNOTE 5: DEFERRED COMPENSATION PLAN \r\nThe State ofGeorgia offers its employees a deferred compensation plan in accordance with Internal Revenue Code Section 457. The plan, available to employees of the State of Georgia and county health departments, permits such employees to defer a portion oftheir salary until future years. Participation in the plan is optional. Participants choose the option or options in which they wish to participate. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the State of Georgia subject only to the claims of the State's general creditors. Participants' rights under the plan are equal to those of a general creditor of the State of Georgia in an amount equal to the fair market value of the deferred account for each participant. Financial information relative to the plan will be presented in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1996. \r\n \r\n- 13 - \r\n \r\n SAVANNAH STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30.1996 \r\n \r\nEXHIBIT liDII \r\n \r\nNOTE 6: RETIREMENT PLANS \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nPlan Description Savannah State University participates in the Teachers Retirement System of Georgia (TRS), a cost-sharing multiple-employer public employee retirement system (PERS) established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia. The University's payroll for the year ended June 30, 1996, for employees covered by TRS was $11,352,163.51. The University's total payroll for all employees was $15,682,207.26. \r\nBenefits TRS provides service retirement, disability retirement, and survivor's benefits for its members. A member is eligible for service retirement after the member (1) has attained the age of 60 years and has at least ten years ofcreditable service, (2) has at least 30 years ofcreditable service, regardless of age, or (3) has attained the age of55 years and has at least 25 years of creditable service. For those members with 30 years ofservice or those age 60 with at least ten years of service, retirement benefits are equal to 2% of the average of the member's two consecutive highest paid years ofservice multiplied by the number of years ofcreditable service up to 40 years. Any member who has between 25 and 30 years of creditable service and is at least 55 years ofage shall receive a benefit which is reduced by the lessor of 1/12 of 7% for each month the member is below age 60, or by 7% for each year or fraction thereofby which the member has less than 30 years of service. The nonnal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death. \r\nRetirement benefits also include death and disability benefits whereby the disabled member or surviving spouse is entitled' to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The benefit is based on member's creditable service (minimum of 10 years of service) and compensation up to the date of death or up to the time of disability. \r\nMembers become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest. \r\nContributions Required and Contributions Made Employees ofthe University who are covered by TRS are required to pay 5% of their gross earnings to TRS. The University makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1996, the employer contribution rate was 11.81% for covered employees. In addition, the University contributed 4.87% to the TRS on behalf of employees electing to participate in the Regents Retirement Plan. The interest rate assumption (rate ofretum on investments) was 7.50%. \r\nTotal contributions to the plan made during fiscal year 1996 amounted to $2,043,976.70, of which $1,480,684.29 was made by the University and $563,292.41 was made by employees. These contributions represented 13.04% (University) and 5% (employees) of covered payroll. \r\n- 14 - \r\n \r\n SAVANNAH STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30,1996 \r\n \r\nEXHIBIT liDII \r\n \r\nNOTE 6: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\nFunding Status and Progress Pension Benefit Obligation \r\nThe amount of the total pension benefit obligation is based on a standardized measurement established by Statement No.5 of the Governmental Accounting Standards Board (GASB) that is required to be used for reporting purposes. The standardized measurement is the actuarial present value ofcredited projected benefits. This pension valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date and is adjusted for the effects of projected salary increases and any step-rate benefits. A standardized measure of the pension benefit obligation was adopted by the GASB to enable readers ofthe PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among similar PERS. \r\n \r\nThe total unfunded pension benefit obligation ofTRS as ofJune 30, 1995, which was the latest information available, was as follows: \r\n \r\nTotal pension benefit obligation \r\n \r\n$ 17,442,607,000.00 \r\n \r\nNet assets available for benefits, at cost \r\n \r\n15,857,066,000.00 \r\n \r\nUnfunded pension benefit obligation \r\n \r\n$ 1.585,541.000.00 \r\n \r\nThe measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1995. Net assets available for benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers. \r\n \r\nRetirement System Contributions Total contributions from all employers to TRS for the year ended June 30, 1996, were $607,274,559.00. The University's contribution for the year ended June 30, 1996, of$1,480,684.29 was actuarially determined and represented .2438% of total contributions made by all participating employers. \r\n \r\nTrend Information Historical trend information is presented in the TRS June 30, 1996, financial report. This information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. \r\n \r\nREGENTS RETIREMENT PLAN \r\n \r\nThe State of Georgia provides optional pension benefits for eligible faculty and principal administrators through a defined contribution plan. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. \r\n \r\n- 15 - \r\n \r\n SAVANNAH STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30. 1996 \r\n \r\nEXHIBIT \"0\" \r\n \r\nNOTE 6: RETIREMENT PLANS \r\nREGENTS RETIREMENT PLAN \r\nState legislation requires that the employer contnoute 4% and the employee contribute 5% ofthe participating employee's earnable compensation. Amounts attributable to all plan contributions are fully vested and nonforfeitable at all times. The University's payroll for employees covered by the Regents Retirement Plan for the year ended June 30, 1996, was $2,782,996.60. The University's total payroll for all employees was $15,682,207.26. \r\nThe University and the covered employees made the required contributions of $111,319.87 (4%) and $139,149.83 (5%), respectively. \r\nGEORGIA DEFINED CONTRIBUTION PLAN \r\nPlan Description Savannah State University participates in the Georgia Oefined Contribution Pl~ (GOCP) which is a singleemployer defined contribution plan established by the General Assembly of Georgia for the purpose of providing retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GOCP is administered by the Board of Trustees of the Employees'Retirement System of Georgia. The University's payroll for the year ended June 30, 1996, for employees covered by GOCP was $582,377.66. The University's total payroll for all employees was $15,682,207.26. \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. Ifa 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 ofmaking 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. \r\nContributions and Vesting Member contributions are seven and one-half percent (7.5%) of gross salary. There are no employer contributions. Earnings are credited to each member's account in a manner established by the Board of Trustees. Upon termination of employment, the amount ofthe member's account is refundable upon request by the member. \r\nTotal contributions made by employees during fiscal year 1996 amounted to $43,679.29 which represents 7.5% of covered payroll. These contributions met the requirements of the plan. \r\n \r\n- ;1.6 - \r\n \r\n SAVANNAH STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 3D. 1996 \r\n \r\nEXHIBIT\"D\" \r\n \r\nNOTE 7: LEAVB POLICIES \r\nEmployees earn armuaI leave ranging from one and one-quarter days to one and three-quarter days each month depending upon the employees' length ofcontinuous State service with maximum accumulation offorty-five days. Employees are paid for unused accumulated armualleave upon retirement or termination ofemployment. 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. \r\nNOTE 8: 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 carmot be determined at this time although the University expects such amounts, if any, to be immaterial to its overall financial position. \r\nLitigation, claims and assessments filed against Savannah State University (as an organizational unit of the . Board ofRegents ofthe University System of Georgia), if any, are generally considered to be actions against \r\nthe State ofGeorgia. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State ofGeorgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1996. \r\nNOTE 9: POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS \r\nPursuant to the general powers conferred by the Official Code of Georgia Annotated Section 20-3-31, the Board ofRegents ofthe University System ofGeorgia has established group health and life insurance programs for regular employees ofthe University System of Georgia. It is the policy of the Board ofRegents to permit employees ofthe University System ofGeorgia eligible for retirement or that become permanently and totally disabled to continue as members ofthe group health and life insurance programs. Employees who are eligible for retirement or disability under the criteria established by the Teachers Retirement System of Georgia and who have at least ten years of service 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\nAs ofJune 30, 1996, there were 115 employees who had retired or were disabled that were receiving these postemployment health and life insurance benefits. For the year ended June 30, 1996, Savarmah State University recognized as incurred $170,560.92 of expenditures, which was net of$68,429.76 of participant contributions. \r\n \r\n- 17 - \r\n \r\n SAVANNAH STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30. 1996 \r\n \r\nEXHIBIT\"D\" \r\n \r\nNOTE 10: BONDING INFORMATION \r\n \r\nThe President and all employees of Savannah State University are bonded under a Public Employees Blanket Bond written by the Employers Insurance ofWausau, their Bond No. 1450-02-110723, on which the premium was paid to October 1, 1996. Under this agreement, the public employee dishonesty coverage insures Savannah State University to a maximum of $1,000,000.00 against loss sustained through fraudulent or dishonest acts by its. employees. The faithful performance of duty coverage insures the University to a maximum of $1,000,000.00 against loss sustained from failure of its employees to perform faithfully their duties or to account properly for all monies and property received by virtue oftheir position or employment. \r\n \r\nAll employees ofSavannah State University are also bonded under Commercial Crime Policies written by the United States Fire Insurance Company, their Policy Nos. 626 011675 2 and 626 012294 4, on which the premiums were paid to October 1, 1996. Under these additional public employee dishonesty coverages, the policies insure the University to a maximum of $9,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees and from failure ofits employees to perform faithfully. \r\n \r\nNOTE 11: ENROLLMENT \r\n \r\nThe equivalent full-time student enrollment of Savannah State University was as follows: \r\n \r\nRegular Term Fall Quarter, 1995 Winter Quarter, 1996 Spring Quarter, 1996 \r\n \r\n3,035 2,954 2.812 \r\n \r\nAverage \r\n \r\nSummer School, 1995 \r\n \r\n- 18 - \r\n \r\n SUPPLEMENTARY INFORMATION - 19 - \r\n \r\n SAVANNAH STATE UNIVERSITY COMBINING BALANCE SHEET CURRENT FUNDS - UNRESTRICTEP \r\nJUNE 30 1996 \r\n \r\nEXHIBIT \"E- \r\n \r\nSee notes to the financial statements. \r\n \r\n- 20- \r\n \r\n SAVANNAH STATE UNIVERSITY COMBINING STATEMENT OF CHANGES IN FUND BALANCES \r\nCURRENT FUNDS - UNRESTRICTED yEAR ENDED JUNE 30. 1996 \r\n \r\nEXHIBIT -P \r\n \r\nREVENUES AND OTHER ADDITIONS \r\nUnrestricted Current Fund Revenues Adjustments \r\nPriorYears' ExpencfltureslAccounts Payable Prior Years' Checks Voided \r\nTotal Revenues and Other Additions \r\nEXPENDITURES AND OTHER DEDUCTIONS \r\nEducational and General Expenditures Auxiliary Enterprises Expenditures Remittances to the Board of Regents of the \r\nUniversity System of Georgia Prior Year's Unrestricted Fund Balance (SurplUS) \r\nAdjustments Prior Years' Revenues/Accounts Receivable \r\nTotal Expenditures and Other Deductions \r\nTRANSFERS BETWEEN FUNPS \r\nNonmandatory Renewals and Replacements \r\nNet Increasel(Decrease) for the Year \r\nFUNp BALANCES JULy 1. 1995 \r\n \r\nRESIDENT LOITERYFOR AUXILIARY \r\n \r\nSTUDENT \r\n \r\nINSTRUCTION EDUCATION ENTERPRISES ACTIVITIES \r\n \r\nTOTAL \r\n \r\n$ 21,357,327.99 $ 275,867.00 $ 4,475,344.61 $ 242,727.87 $ 26,351,267.47 \r\n \r\n1,643.40 1,792.74 \r\n \r\n147.24 1,085.00 \r\n \r\n7,159.73 3,730.80 \r\n \r\n8,950.37 6,608.54 \r\n \r\n$ 21,360,764.13 $ 275,867.00 $ 4,476,576.85 $ 253,618.40 $ 26,366,826.38 \r\n \r\n$ 21,330,945.38 $ 246,839.24 \r\n \r\n$ 281,611.94 $ 21,859,396.56 \r\n \r\n$ 4,286,695.72 \r\n \r\n4,286,695.72 \r\n \r\n14,626.35 \r\n \r\n207.00 \r\n \r\n819.00 \r\n \r\n14,626.35 1,026.00 \r\n \r\n$ 21 .345,571.73 $ 246,839.24 $ 4.286.902.72 $ 282,430.94 $ 26,161 .744.63 \r\n \r\n$ -196,055.15 \r\n \r\n$ -196.055.15 \r\n \r\n$ \r\n \r\n15,192.40 $ 29,027.76 $ \r\n \r\n-6,381.02 $ -28,812.54 $ \r\n \r\n9,026.60 \r\n \r\n100.886.21 \r\n \r\n46,502.07 \r\n \r\n486,173.91 \r\n \r\n75,630.96 \r\n \r\n709,193.15 \r\n \r\nFUND BALANCES JUNE 30. 1996 \r\n \r\n$ 116,078.61 $ 75,529.83 $ 479,792.89 $ 46,818.42 $ 718,219.75 \r\n \r\nsee notes to the financial statements. \r\n \r\n- 21 - \r\n \r\n  SAVANNAH STATE UNIVERSITY COMBINING STATEMENT OF CURRENT FUNpS REyENUES EXPENPITURES, \r\nANp OTHER CHANGES UNRESTRICTED \r\nYEAR ENDED JUNE 30,1996 \r\n \r\nREyENUES \r\nState Appropriations Tuition and Fees Federal Grants and Contracts \r\nsales and Services of Educational Activities \r\nSales 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 Faculty and Staff Housing Food Services Stores and Shops InterCOllegiate Athletics Other Service Units \r\nTotal Expenditures \r\nOTHER TRANSFERS AND ADDITIONSI \u003cDEDUCTIONS) \r\nTransfers for Renewals and Replacements 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 Additionsl(Deductions) \r\n \r\nRESIDENT LOTTERY FOR AUXILIARY \r\n \r\nSTUDENT \r\n \r\nINSTRUCTION EDUCATION ENTERPRISES ACTIVITIES \r\n \r\nTOTAL \r\n \r\n$ 15,248,855.00 $ 5,620,910.93 203,390.31 31,320.60 \r\n252,851.15 \r\n$ 21,357,327.99 $ \r\n \r\n275,867.00 $ \r\n \r\n$ \r\n4,466,887.07 8,457.54 \r\n \r\n$ 15,524,722.00 \r\n \r\n217,328.70 5,838,239.63 \r\n \r\n203,390.31 \r\n \r\n31,320.60 \r\n \r\n4,466,887.07 \r\n \r\n25,399,17 \r\n \r\n286,707.86 \r\n \r\n275,867.00 $ 4,475,344.61 $ 242,727.87 $ 26,351,267.47 \r\n \r\n$ 9,893,nO.00 $ 4,901.47 \r\n447,406.80 2,195,298.60 1,625,580.71 3,981,708.75 3,032,079.05 \r\n150,200.00 \r\n$ 21,330,945.38 $ \r\n \r\n24,564.78 \r\n121,726.82 100,547.64 \r\n \r\n$ 9,918,334.78 \r\n \r\n4,901.47 \r\n \r\n447,406.80 \r\n \r\n2,317,025.42 \r\n \r\n$ 259,671.29 1,885,252.00 \r\n \r\n4,082,256.39 \r\n \r\n3,032,079.05 \r\n \r\n21,940.65 \r\n \r\n172,140.65 \r\n \r\n$ 1,275,222.98 18,612.91 \r\n1,494,486.08 166,265.49 997,180.91 334,927.35 \r\n \r\n1,275,222.98 18,612.91 \r\n1,494,486.08 166,265.49 997,180.91 334,927.35 \r\n \r\n246,839.24 $ 4,286,695,72 $ 281,611.94 $ 26,146,092.28 \r\n \r\n$ \r\n \r\n3,436.14 \r\n \r\n-14,626.35 $ -11,190.21 \r\n \r\n$ -196,055.15 \r\n \r\n$ -196,055.15 \r\n \r\n1,025.24 $ 10,071.53 \r\n \r\n14,532,91 \r\n \r\n-14,626.35 $ -195,029.91 $ 10,071.53 $ -196,148,59 \r\n \r\nNet Increasel(Decrease) in \r\n \r\nFund Balances \r\n \r\n$ \r\n \r\n29p27.76 $ \r\n \r\n-6.381.02 $ -28.812,54 $ _ _9..\".,0.2.6;;,;;;;,,;;,..60. \r\n \r\nSee notes to the financial statements. \r\n \r\n- 23- \r\n \r\n SAVANNAHSTATEUN~RSrrv \r\n \r\n \r\n \r\nSCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET \r\n \r\nRESIDENT INSTRUCTION \r\n \r\nYEAR ENDED JUNE 30,1996 \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$ 15.248.855.00 \r\n \r\n$ 1,177.593.00 \r\n \r\n6,108.472.99 $ 14,047.766,89 \r\n \r\n494,731.01 $ _ _.....:.;19::.l.,44~9,:.:.14~ \r\n \r\n$ 21,357,327.99 $ 14,047,766,89 $ 1,672,324,01 $ \r\n \r\n1;.;;.9.:..;..44....;.;9....;.;,1~4 \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 Office of Minority Business Enterprise \r\n \r\n$ 16,947.007.13 $ 1.525,373,64 \r\n \r\n3.847,684.03 \r\n279,966.19 256,288,03 \r\n \r\n12,522,393.25 $ 1.579,720.26 $ \r\n \r\n490,853.34 \r\n \r\n$ 21,330,945,38 $ 14,047,766,89 $ 1,579,720.26 $ _ _..;4,.;.,90;.:,.8;.,;;5,.;.,3.,.;.,34.,;. \r\n \r\nExcess of Revenues over Expenditures \r\n \r\n$ \r\n \r\n26.382,61 $ \r\n \r\n(1) To eliminate tuition waivers not bUdgeted and to reclassify prior year \r\nfund balances budgeted as revenues, \r\n \r\n0,00 $ \r\n \r\n92,603,75 $ -===-4.7..1..,.4...0..4=';;;;,20= \r\n \r\nSee notes to the financial statements, \r\n \r\n-24- \r\n \r\n TOTAL \r\n \r\nADJUSTMENTS .. TOTAL \r\n \r\n(1) \r\n \r\n(Budget Basis) \r\n \r\nBUDGET \r\n \r\nVARIANCE FAVORABLE (UNFAVORABLE) \r\n \r\n$ 16,426,448.00 20,670.420.03 $ \r\n \r\n$ 16.426,448.00 $ 16,426,448.00 $ 321,204.20 20,991,624.23 21,312,480.00 \r\n \r\n0.00 -32O,855.n \r\n \r\n$ 37,096,868.03 $ \r\n \r\n321,204.20 $ 37,418,072.23 $ 37,738,928.00 $ _ _-3;;;;2O~':.;.85;;.;;5..;.;,.n.;.. \r\n \r\n$ 16,947,007.13 1,525,373.64 \r\n3,847,684.03 $ 12,522,393.25 2,070,573.60 \r\n279,966.19 256,288.03 \r\n \r\n$ 16,947,007.13 $ 16,925,153.00 $ \r\n \r\n1,525,373.64 \r\n \r\n1,507,229.00 \r\n \r\n-150,200.00 \r\n \r\n3,697,484.03 12,522,393.25 2,070,573.60 \r\n279,966.19 256,288.03 \r\n \r\n3,708,773.00 12,823,759.00 2,167,672.00 \r\n306,342.00 300,000.00 \r\n \r\n-21,854.13 -18,144.64 \r\n11,288.97 301,365.75 97,098.40 26,375.81 43,711.97 \r\n \r\n$ 37,449,285.87 $ -150,200.00 $ 37,299,085.87 $ 37,738,928.00 $ _ _4_3-,9,,-84_2_.1_3 \r\n \r\n$ -352,417.84 $ \r\n \r\n471,404.20 $ 118,986.36 \r\n \r\n$ -=........1..1.=8.=9.8.6.=.36= \r\n \r\n-25- \r\n \r\n SAVANNAH STATE UNIVERSITY SCHEDULE OF REVENUES AND EXpENDITURES COMPARED TO BUDGET \r\nLOTTERY FOR EDUCATION YEAR ENDEP JUNE 30. 1996 \r\n \r\nSCHEDULE WZ' \r\n \r\nSee notes to the financial statements. \r\n \r\n-26 - \r\n \r\n SAVANNAH STATE UNIVERSITY SCHEDULE OF OPERATIONS LOAN FUNDS YEAR ENDED JUNE 30, 1996 \r\n \r\nSCHEDULE \"3\" \r\n \r\nSee notes to the financial statements. \r\n \r\n-27 - \r\n \r\n $ \r\n \r\n595,007.74 $ \r\n \r\n19,384.60 $ \r\n \r\n0.00 $ --=====6;,.;,14.:.1,=390;;;2;;,;;..34. \r\n \r\nSee notes to the financial statements. \r\n \r\n- 28- \r\n \r\n SAVANNAH STATE UNIVERSITY SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS \r\nAGENCY FUNDS YEAR ENDED JUNE 30,1996 \r\n \r\nSCHEDULE M!r \r\n \r\nFUND \r\nPAYROLL DEDUCTIONS \r\nFederal Income Tax State Income Tax F./.CA Retirement Group Insurance Tax Deferred Annuities Savings Bonds Rents Wage Earners Deductions Garnishments Credit Union Internal Revenue Service Miscellaneous \r\nEMPLOYER'S CONTRIBUTIONS \r\nF'/,CA Retirement Group Insurance \r\nOTHER FUNDS \r\nAlumni Support Program Banquet - Dr. Black Baptist Student Union Baseball Fund-Raising Program Business Advisory Board Campus Chest Career Week Program Clearing Account Community Support Program Developmental Studies Honors Program DLS Retirement Club Engineers Faculty Club Football Support Program Fours and Nines Activities Graduate Studies Hass Functions HCOP Awards Banquet International Visitor Program Library Deposits Mass Communications Fund Raising National Society of Black Engineers Olympic Legacy Passport to Export Pei-Ling Trust Pell Recoveries - Prior Year \r\nSee notes to the financial statements. \r\n \r\nBALANCE JULY 1,1995 \r\n \r\nRECEIPTS \r\n \r\nBALANCE DISBURSEMENTS JUNE 30,1996 \r\n \r\n$ \r\n \r\n-92,89 $ 1,656,184.64 $ \r\n \r\n547,779.92 \r\n \r\n-37.47 \r\n \r\n1,099,070,00 \r\n \r\n80,354.10 \r\n \r\n755,007.76 \r\n \r\n32,486.09 \r\n \r\n553,622.71 \r\n \r\n1,249.09 \r\n \r\n394,738.61 \r\n \r\n522.50 \r\n \r\n21,243.03 \r\n \r\n10,125.00 \r\n \r\n50,600.00 \r\n \r\n836.50 \r\n \r\n58,607.50 \r\n \r\n-282.20 \r\n \r\n65,827.01 \r\n \r\n1,034,48 \r\n \r\n875,959,00 \r\n \r\n14,989,29 \r\n \r\n652,50 \r\n \r\n16.485.91 \r\n \r\n$ 126,847,70 $ 6,110,115,38 $ \r\n \r\n1,656,091.75 547,810.73 $ \r\n1,099,032.53 831,595.03 532,698.38 396,654,18 21,200.00 60,725.00 58,105.50 64,860.51 876,993,48 14,878.02 17,100.91 \r\n6,177,746.02 $ \r\n \r\n-30.81 \r\n3,766.83 53,410.42 \r\n-666,48 565.53 \r\n1,338,50 684.30 \r\n111.27 37.50 \r\n59,217.06 \r\n \r\n$ \r\n \r\n-1.46 $ 1,099,070.06 $ \r\n \r\n220.496,64 \r\n \r\n1,596,494.07 \r\n \r\n94,543.85 \r\n \r\n1,617,742.10 \r\n \r\n$ 315,039.03 $ 4,313,306.23 $ \r\n \r\n1,099,068,54 $ 1,804,233.63 1,612,791.55 \r\n4,516,093.72 $ \r\n \r\n0,06 12,757.08 99.494.40 \r\n112,251.54 \r\n \r\n$ \r\n \r\n5,274.30 $ \r\n \r\n2,000.00 \r\n \r\n$ \r\n \r\n7,274.30 \r\n \r\n330.00 \r\n \r\n330.00 \r\n \r\n207.00 \r\n \r\n207.00 \r\n \r\n700,00 \r\n \r\n700.00 \r\n \r\n1,501.49 \r\n \r\n9,449.77 $ \r\n \r\n6,224.73 \r\n \r\n4,726,53 \r\n \r\n110.39 \r\n \r\n110.39 \r\n \r\n134.83 \r\n \r\n134.83 \r\n \r\n6,477,456.00 \r\n \r\n6,477,456.00 \r\n \r\n100.00 \r\n \r\n100.00 \r\n \r\n983.14 \r\n \r\n983.14 \r\n \r\n893.37 \r\n \r\n890.30 \r\n \r\n3.07 \r\n \r\n350.75 \r\n \r\n48.65 \r\n \r\n302.10 \r\n \r\n4,285.00 \r\n \r\n4,285.00 \r\n \r\n35.00 \r\n \r\n35.00 \r\n \r\n151.60 \r\n \r\n26.72 \r\n \r\n124,88 \r\n \r\n904.00 \r\n \r\n790.54 \r\n \r\n113.46 \r\n \r\n346.00 \r\n \r\n346.00 \r\n \r\n700.00 \r\n \r\n700.00 \r\n \r\n517.53 \r\n \r\n50.00 \r\n \r\n50.00 \r\n \r\n517.53 \r\n \r\n1,440.12 \r\n \r\n1,440.12 \r\n \r\n25.00 \r\n \r\n25.00 \r\n \r\n846.84 \r\n \r\n2,300.00 \r\n \r\n1,700.00 \r\n \r\n1,446.84 \r\n \r\n118.00 \r\n \r\n70.00 \r\n \r\n48.00 \r\n \r\n2,941.11 \r\n \r\n2,682.88 \r\n \r\n258.23 \r\n \r\n2,279.00 \r\n \r\n2,279.00 \r\n \r\n- 29- \r\n \r\n SAVANNAH STATE UNIVERSITY SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS \r\nAGENCY FUNDS YEAR ENDED JUNE 30, 1996 \r\n \r\nSCHEDULE \"5\" \r\n \r\nFUND \r\nOTHER FUNDS \r\nPresidenfs Discretionary Fund Press Institute Psychology Club Quiz Bowl Radio Station Fund Raising Recruiters' Fair Regenfs Global Center Resident Hall Association Resident Hall Renovation Retired Employees~ Insurance SBS - International Forum Scholarships \r\nGeorgia Student Incentive Grants Regents' Scholarship Fund Other Scholarships (List on File) Science and Technology Program Senior Class Small Business Conference Social Work Programs SSC Alumni Weekend SSC Archives - Honors Program SSC Dance Ensemble Student Deposits Tiger Booster Club U. S. Cultural Program \r\n \r\nBALANCE JULY 1.1995 \r\n \r\nRECEIPTS \r\n \r\nBALANCE DISBURSEMENTS JUNE 30, 1996 \r\n \r\n$ \r\n \r\n1,660.00 $ \r\n \r\n$ \r\n \r\n3,959.72 \r\n \r\n5,305.00 \r\n \r\n193.38 \r\n \r\n5,514.50 \r\n \r\n93.97 \r\n \r\n962.00 \r\n \r\n80.00 \r\n \r\n2,952.84 \r\n \r\n15,100.00 \r\n \r\n74,607.01 \r\n \r\n575.80 \r\n \r\n20.00 \r\n \r\n300.00 \r\n \r\n11,979.91 \r\n \r\n87,341.49 \r\n \r\n504.00 \r\n \r\n179.48 \r\n41,364.16 378.35 \r\n7,284.03 -600.68 1,041.64 \r\n41.19 5.00 \r\n23,392.91 56.44 \r\n789.00 \r\n \r\n144,842.00 3,900.00 \r\n257,670.29 \r\n14,085.10 600.68 \r\n100.00 1,323.00 406,919.42 \r\n90.00 \r\n \r\n$ 122,957.80 $ 7,508,084.07 $ \r\n \r\n520.13 $ 6,386.66 \r\n193.38 2,661.35 \r\n836.02 3,032.84 86,194.80 \r\n235.05 \r\n88,135.65 504.00 \r\n143,195.00 3,400.00 \r\n283,439.32 378.35 \r\n20,688.24 \r\n1,041.64 41.19 \r\n.399,782.30 56.44 \r\n7,535,486.52 $ \r\n \r\n1,139.87 2,878.06 \r\n2,853.15 219.95 \r\n3.512.21 360.75' 300,00 \r\n11,185.75 \r\n1,826.48 500.00 \r\n15,595.13 \r\n680.89 \r\n105.00 1,323.00 30,530.03 \r\n879.00 \r\n95,555.35 \r\n \r\n$ 564,844.53 $ 17,931,505.68 $ 18,229,326.26 $ 267,023.95 \r\n \r\nSee notes to the financial statements. \r\n \r\n- 30- \r\n \r\n SAVANNAH STATE UNIVERSITY CASH AND CASH EQUIVALENTS \r\nJUNE 30, 1996 \r\n \r\nSCHEDULE \"6\" \r\n \r\nINTEREST BEARING ACCOUNTS \r\nCarver State Bank, Savannah, Georgia \r\nCertificates of Deposit (4.29% - 4.48%) \r\nSunTrust Bank, Savannah, Georgia \r\nN.O.W. Account. (2.12%) \r\nSunTrust Bank, Atlanta, Georgia \r\nCash Management Pool Board of Regents Short-Term Investment Fund \r\nOTHER \r\nCash on Hand Petty Cash \r\n \r\n$ 469,294.51 919,703.59 667,474.70 $ 2,056,472.80 \r\n16,760.00 $ 2,073,232.80 \r\n \r\nSee notes to the financial statements. \r\n \r\n- 31 - \r\n \r\n  SAVANNAH STATE UNI\\IERSITY \r\nACCOUNTS RECEIVABLE JUNE30 1996 \r\n \r\nSCHEDULE \"r \r\n \r\nCURRENT FUNDS UNRESTRICTED RESTRICTED \r\n \r\nLOAN FUNDS \r\n \r\nPLANT FUNDS UNEXPENDED \r\n \r\nAGENCY FUNDS \r\n \r\nTOTAL \r\n \r\nFederal Grants and Contracts Research and Instruction Student Aid Plant Additions \r\n \r\n$ 617,440.28 421,829.53 \r\n \r\n$ 476,083.68 \r\n \r\n$ 617,440.28 421,829.53 476,083.68 \r\n \r\nState Grants and Contracts Research and Instruction \r\n \r\n29,835.74 \r\n \r\n29,835.74 \r\n \r\nLocal Grants and Contracts Plant Additions \r\n \r\n532,296.33 \r\n \r\n532,296.33 \r\n \r\nPrivate Gifts, Grants, and Contracts Research and Instruction \r\n \r\n21,769.27 \r\n \r\n21,769.27 \r\n \r\nOther \r\n \r\nDeparbnent of Administrative Services \r\n \r\n$ \r\n \r\nGeorgia State Financing and Investment \r\n \r\nCommission \r\n \r\nReturned Checks \r\n \r\nStudent Accounts \r\n \r\nStudent Notes \r\n \r\nOther \r\n \r\n2,141.78 \r\n45,784.90 17,708.63 128,713.50 \r\n40,287.00 \r\n \r\n$ 789,247.55 \r\n \r\n38,494.25 $ \r\n \r\n697.29 \r\n \r\n2,141.78 \r\n84,279.15 17,708.63 128,713.50 789,247.55 40,984.29 \r\n \r\n$ \r\n \r\n234,635.81 $ 1,090,874.82 $ 789,247.55 $ 1,046,874.26 $ _ _=69;.;,,7;;;,.29= $ 3,162,329.73 \r\n \r\nSee notes to the financial statements. \r\n \r\n- 33- \r\n \r\n SAVANNAH STATE UNIVERSITY CHANGES IN INVESTMENT IN PLANT \r\nYEAR ENDED JUNE 30, 1996 \r\n \r\nLand Buildings Improvements Other Than Buildings Equipment Library Books and Collections \r\n \r\nBALANCE JULY 1! 1995 \r\n \r\nCURRENT FUNDS UNRESTRICTED' RESTRICTED \r\n \r\n$ 325,975.16 \r\n \r\n29,851,598.37 \r\n \r\n6,548,050.76 \r\n \r\n5,709,085,42 $ \r\n \r\n821 ,428.36 $ 494,088.67 \r\n \r\n3,734,963.94 \r\n \r\n270,862.94 \r\n \r\n18,694.20 \r\n \r\n$ 46,169,673.65 $ 1,092.291.30 $ 512,782.87 \r\n \r\nSee notes to the financial statements. . \r\n \r\n- 34- \r\n \r\n SCHEDULE \"8\" \r\n \r\nADDITIONS \r\n \r\nGEORGIA STATE \r\n \r\nPLANT FUNDS \r\n \r\nFINANCING AND \r\n \r\nRENEWALS AND INVESTMENT \r\n \r\nUNEXPENDED REPLACEMENTS' COMMISSION \r\n \r\nDEDUCTIONS DISPOSALSI DELETIONSI ADJUSTMENTS \r\n \r\nBALANCE JUNE 30. 1996 \r\n \r\n$ 325,975.16 \r\n \r\n$ 933,381.77 $ \r\n \r\n259,493.60 $ \r\n \r\n210,958.75 \r\n \r\n31,255,432.49 \r\n \r\n634,792.67 \r\n \r\n11,174.65 \r\n \r\n7,194,018.08 \r\n \r\n192,784.82 \r\n \r\n220,185.09 \r\n \r\n$ \r\n \r\n543,099.05 \r\n \r\n6,894,473.31 \r\n \r\n7,000.00 \r\n \r\n4.017,521.08 \r\n \r\n$ 1.760.959.26 $ \r\n \r\n490.853.34 $ \r\n \r\n210,958.75 $ \r\n \r\n550,099.05 $ 49,687.420.12 \r\n \r\n- 35- \r\n \r\n SAVANNAH STATE UNIVERSITY SCHEDULE OF FUND BALANCES CURRENT FUNDS AND PLANT FUNDS \r\nJUNE 30,1996 \r\n \r\nNET INVESTMENT IN PLANT Investment in Plant Facirlties \r\nRESTRICTED Designated for Subsequent Years' Expenditures \r\nUNRESTRICTED Designated For Bus Replacement Reserve For Equipment, Technology and Construction Trust Fund For Special Funding Initiatives For Intercollegiate Athletics For Inventory Reserve For Renewals and Replacements Reserve For SUbsequent Years' Expenditures For Uncollectible Accounts Undesignated Surplus Regular Lottery for Education \r\n \r\nRESIDENT INSTRUCTION \r\n \r\nCURRENT FUNDS UNRESTRICTED LOTIERYFOR AUXILIARY EDUCATION ENTERPRISES \r\n \r\nSTUDENT ACTIVITIES \r\n \r\n$ \r\n \r\n48,989.65 \r\n \r\n26,540.18 \r\n \r\n$ -208,044.30 \r\n \r\n$ \r\n \r\n55,787.n \r\n \r\n632,613.99 \r\n \r\n10,822.70 \r\n \r\n25,266.06 $ 29,957.14 \r\n \r\n46,818.42 \r\n \r\n49,468.14 $ 116,078.61 $ \r\n \r\n0.00 75,529.83 $ \r\n \r\n479l92.89 $ \r\n \r\n46,818.42 \r\n \r\n$ 116,078.61 $ \r\n \r\n75,529.83 $ 479,792.89 $===4=6,:=81=8,;,,;.4.2... \r\n \r\nSee notes to the financial statements. \r\n \r\n- 36- \r\n \r\n SCHEDULE \"9\" \r\n \r\nRESTRICTED \r\n \r\nPLANT FUNDS \r\n \r\nUNEXPENDED \r\n \r\nLOTIERY FOR RENEWALS AND \r\n \r\nREGULAR \r\n \r\nEDUCATION REPLACEMENTS \r\n \r\nINVESTMENT IN PLANT \r\n \r\nTOTAL \r\n \r\n$ 49,687,420.12 $ 49,687,420.12 \r\n \r\n$ 155,673.01 \r\n \r\n$ 155,673.01 \r\n \r\n$ \r\n \r\n20,715.32 \r\n \r\n378,306.78 \r\n \r\n$ \r\n \r\n20,715.32 \r\n \r\n48,989.65 26,540.18 -208,044.30 688,401.76 378,306.78 72,084.48 40,779.84 \r\n \r\n$ \r\n \r\n96,332.75 \r\n \r\n_____ $ \r\n \r\n$ \r\n \r\n96,332.75 $ \r\n \r\n$ 155,673.01 $ \r\n \r\n96,332.75 $ \r\n \r\n---=0\"\"\"0.=.O 0.00 $ _ _...::3.;:.;99:J.,O::.:2::2:..:..1.=..0 \r\n \r\n145,800.89 0.00 \r\n$ 1,213,574.60 \r\n \r\n0.00 $ \r\n \r\n399,022.10 $ 49,687,420.12 $ 51,056,667.73 \r\n \r\n- 37- \r\n \r\n SAVANNAH STATE UNIVERSITY SCHEDULE OF REVENUES CURRENT FUNDS YEAR ENDED JUNE 30, 1996 \r\n \r\nSee notes to the financial statements. \r\n \r\n$ 21,357,327.99 $ 275,867.00 $ 4,475,344.61 - 38- \r\n \r\n SCHEDULE \"10\" \r\n \r\nSTUDENT ACTIVITIES \r\n \r\nTOTAL \r\n \r\n. RESTRICTED RESIDENT \r\nINSTRUCTION \r\n \r\nTOTAL \r\n \r\n$ 14,642,513.00 306,342.00 300,000.00 275,867.00 \r\n$ 15,524,722.00 \r\n \r\n$ 14,642,513.00 306,342.00 300,000.00 275,867.00 \r\n$ 15,524,722.00 \r\n \r\n$ 5,470,710.93 \r\n \r\n$ 217,328.70 \r\n \r\n367,528.70 \r\n \r\n$ 5,470,710.93 367,528.70 \r\n \r\n$ 3,368,415.44 9,808,022.33 \r\n203,390.31 \r\n \r\n3,368,415.44 9,808,022.33 \r\n203,390.31 \r\n \r\n139,701.78 540,792.10 \r\n \r\n139,701.78 540,792.10 \r\n \r\n95,584.74 93,620.50 \r\n \r\n95,584.74 93,620.50 \r\n \r\n31,320.60 4,466,887.07 \r\n \r\n1,630.00 \r\n \r\n1,630.00 31,320.60 4,466,887.07 \r\n \r\n25,399.17 \r\n \r\n29,916.00 37.82 \r\n112,609.42 14,015.97 22,597.50 1,761.00 \r\n105,770.15 \r\n \r\n29,916.00 37.82 \r\n112,609.42 14,015.97 22,597.50 1,761.00 \r\n105,770.15 \r\n \r\n$ 242,727.87 $ 10,826,545.47 $ 14,047,766.89 $ 24,874,312.36 \r\n \r\n$ 242,727.87 $ 26,351,267.47 $ 14,047,766.89 $ 40,399,034.36 - 39- \r\n \r\n SAVANNAH STATE UNIVERSITY SCHEDULE OF EXPENDITURES BY OBJECT \r\nCURRENT FUNDS YEAR ENDED JUNE 30,1996 \r\n \r\nRESIDENT INSTRUCTION \r\n \r\nLOTTERY FOR EDUCATION \r\n \r\nUNRESTRICTED AUXILIARY \r\nENTERPRISES \r\n \r\n STUDENT ACTIVITIES \r\n \r\nTOTAL \r\n \r\nRESTRICTED RESIDENT \r\nINSTRUCTION \r\n \r\nTOTAL \r\n \r\n$ 14,155,498.07 $ 1,249,756.73 $ 15,405,254.80 \r\n \r\n998,706.35 1,450,331.74 1,527,198.40 \r\n160,176.33 7,736.00 \r\n122,958.00 \r\n \r\n82,435.99 121,823.47 71,357.45 \r\n \r\n1,081,142.34 1,572,155.21 1,598,555.85 \r\n160,176.33 7,736.00 \r\n122,958.00 \r\n \r\n$ 18,422,604.89 $ 1,525,373.64 $ 19,947,978.53 \r\n \r\n$ \r\n \r\n2,286.76 $ 229,409.47$ \r\n \r\n79,597.22 $ 309,006.69 \r\n \r\n62,829.42 \r\n \r\n62,829.42 \r\n \r\n41,915.26 \r\n \r\n651,651.94 \r\n \r\n109,196.76 \r\n \r\n760,848.70 \r\n \r\n2,320.45 \r\n \r\n425,350.10 \r\n \r\n57,507.73 \r\n \r\n482,857.83 \r\n \r\n1,120,081.26 \r\n \r\n1,120,081.26 \r\n \r\n8,948.98 \r\n \r\n75,968.29 \r\n \r\n8,334.44 \r\n \r\n84,302.73 \r\n \r\n210.00 \r\n \r\n86,516.41 \r\n \r\n1,270.25 \r\n \r\n87,786.66 \r\n \r\n21,940.65 85,744.50 25,541.46 \r\n \r\n57,078.00 584,048.85 611,725.04 138,393.93 \r\n \r\n308,415.97 10,444,064.93 \r\n378,525.85 14,811.31 \r\n \r\n365,493.97 11,028,113.78 \r\n990,250.89 153,205.24 \r\n \r\n5,930.98 884.32 \r\n3,500.00 1,310.92 \r\n \r\n201,483.76 18,191.n 6,500.00 254,152.41 \r\n \r\n161,686.08 71,282.04 \r\n17,116.91 \r\n \r\n363,169.84 89,473.81 6,500.00 271,269.32 \r\n \r\n65,420.19 \r\n \r\n316,499.94 1,336,417.33 \r\n \r\n117,006.68 240,794.21 \r\n \r\n433,506.62 1,5n,211.54 \r\n \r\n15,657.47 \r\n \r\n1,500.00 762,596.01 \r\n \r\n28,500.00 484,282.87 \r\n \r\n30,000.00 1,246,878.88 \r\n \r\n$ 281,611.94 $ 6,940,393.93 $ 12,522,393.25 $ 19,462,787.18 \r\n \r\n$ \r\n \r\n38.00 \r\n \r\n4,893.50 2,002.00 \r\n \r\n140,578.92 \r\n \r\n$ 147,512.42 \r\n \r\n$ 204,790.55 \r\n13,265.69 19,994.66 15,473.85 \r\n$ 253,524.75 \r\n \r\n$ \r\n \r\n38.00 \r\n \r\n4,893.50 2,002.00 \r\n \r\n140,578.92 \r\n \r\n$ 147,512.42 \r\n \r\n$ 204,790.55 \r\n13,265.69 19,994.66 15,473.85 \r\n$ 253,524.75 \r\n \r\n- 41 - \r\n \r\n SAVANNAH STATE UNIVERSITY SCHEDULE OF EXPENDITURES BY OBJECT \r\nCURRENT FUNDS yEAR ENDED JUNE 30. 1996 \r\n \r\nUNRESTRICTED \r\n \r\nRESIDENT LOTIERY FOR \r\n \r\nAUXILIARY \r\n \r\nINSTRUCTION EDUCATION ENTERPRISES \r\n \r\nSPECIAL FUNDING INITIATIVES Other Costs Travel SuppUes and Materials Repairs and Maintenance Rents (Other than Real Estate) Other Expenses Publications and Printing Equipment Non-Inventory Telecommunications Equipment Inventory \r\nOFFICE OF MINORITY BUSINESS ENTERPRISE Personal Services Salaries and Wages Employer's Contributions for: F.I.C.A. Retirement Group Insurance \r\nOther Costs Travel Supplies and Materials Repairs and Maintenance Rents (Other than Real Estate) Other Expenses Publications and Printing Equipment Non-Inventory Software Telecommunications Per Diem, Fees and Contracts Per Diem and Fees EqUipment Motor Vehicle Purchases Inventory \r\n \r\ns \r\n \r\n5.961.44 \r\n \r\n4,625.69 \r\n \r\n818.47 S \r\n \r\n2,824.00 \r\n \r\n702.00 \r\n \r\n2,564.00 \r\n \r\n980.00 \r\n \r\n2,369.66 2,070.18 \r\n \r\n5,053.59 5,442.70 \r\n \r\n6.350.00 \r\n \r\n86.006.53 \r\n \r\ns \r\n \r\n279,966.19 $_.....;:;99;:;.\u0026.~326=.8=-2 \r\n \r\n$ \r\n \r\n72.161.91 \r\n \r\n5,420.41 6,510.60 3.317.80 \r\n \r\n$ \r\n \r\n87,410.72 \r\n \r\n13.953.20 13,452.73 6,690.56 5.500.45 5,534.15 \r\n432.00 \r\n \r\n12,999.67 480.00 \r\n12,928.09 \r\n \r\n1.646.62 \r\n \r\n32.492.00 62,767.84 \r\n \r\n$ 256,288.03 \r\n \r\n$ 536,254.22 $ \r\n \r\n246.839.24 \r\n \r\n$ 21,330,945.38 $ 246,839.24 $ 4,286,695.72 \r\n \r\nSee notes to the financial statements. \r\n \r\n-42- \r\n \r\n SCHEDULE-W \r\n \r\nSTUDENT ACTIVITIES \r\n \r\nTOTAL \r\n \r\nRESTRICTED RESIDENT \r\nINSTRUCTION \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n5,961.44 \r\n \r\n4,625.69 \r\n \r\n3,642.47 \r\n \r\n702.00 \r\n \r\n2,564.00 \r\n \r\n980.00 \r\n \r\n7,423.25 7,512.88 \r\n \r\n92,356.53 \r\n \r\n$ 379,293.01 \r\n \r\n$ \r\n \r\n5,961.44 \r\n \r\n4,625.69 \r\n \r\n3,642.47 \r\n \r\n702.00 \r\n \r\n2,564.00 \r\n \r\n980.00 \r\n \r\n7,423.25 7,512.88 \r\n \r\n92,356.53 \r\n \r\n$ 379,293.01 \r\n \r\n$ \r\n \r\n72,161.91 \r\n \r\n5,420.41 6,510.60 3,317.80 \r\n \r\n$ \r\n \r\n87,410.72 \r\n \r\n13,953.20 13,452.73 6,690.56 5,500.45 5,534.15 \r\n432.00 \r\n \r\n12,999.67 480.00 \r\n12,928.09 \r\n \r\n1,646.62 \r\n \r\n32,492.00 62,767.84 \r\n \r\n$ 256,288.03 \r\n \r\n$ 783,093.46 \r\n \r\n$ \r\n \r\n72,161.91 \r\n \r\n5,420.41 6,510.60 3,317.80 \r\n \r\n$ \r\n \r\n87,410.72 \r\n \r\n13,953.20 13,452.73 6,690.56 5,500.45 5,534.15 \r\n432.00 \r\n \r\n12,999.67 480.00 \r\n12,928.09 \r\n \r\n1,646.62 \r\n \r\n32,492.00 62,767.84 \r\n \r\n$ 256,288.03 \r\n \r\n$ 783,093.46 \r\n \r\n$ 281,611.94 $ 26,146,092.28 $ 14,047,766.89 $ 40,193,859.17 \r\n \r\n-43- \r\n \r\n SAVANNAH STATE UNIVERSITY SCHEDULE OF EXPENDITURES BY OBJECT \r\nPLANT FUNDS \r\nYEAR ENDED JUNE 30, 1996 \r\n \r\nCAPITAL OUTLAY \r\nSupplies and Materials Repairs and Maintenance Other Expenses Software Equipment \r\nNon-Inventory Per Diem, Fees and Contracts \r\nPer Diem and Fees Equipment \r\nInventory \r\n \r\nUNEXPENDED \r\n \r\nLOTIERY FOR \r\n \r\nREGULAR \r\n \r\nEDUCATION \r\n \r\nRENEWALS AND REPLACEMENTS \r\n \r\nTOTAL \r\n \r\n$ $ 1,496,000,73 \r\n448,32 40,275.00 42,996.21 \r\n \r\n1,186,82 $ 13,520,00 \r\n258.72 3,07522 13,409,63 \r\n149,788.61 \r\n \r\n95,184,38 $ 107,748,30 \r\n2,192,00 \r\n \r\n96,37120 1,617,269,03 \r\n2,450,72 3,075,22 \r\n \r\n61,080,56 \r\n \r\n74,938,51 \r\n \r\n4,463.01 \r\n \r\n44,738,01 \r\n \r\n220,185.09 \r\n \r\n412,969,91 \r\n \r\n$ 1,579,720.26 $ 181,239.00 $ \r\n \r\n490,853.34$ 2,251,812,60 \r\n \r\nSee notes to the financial statements. \r\n \r\n- 44- \r\n \r\n SAVANNAH STATE UNIVERSITY RECONCILIATION OF SALARIES AND WAGES. AND TRAVEL \r\nYEAR ENDED JUNE 30.1996 \r\n \r\nSCHEDULE -13- \r\n \r\nTotals per Annual Supplement \r\n \r\nAccruals June 30,1996 June 30,1995 \r\n \r\nAdjustments \r\n \r\nShared Services on Jointly Staffed Personnel \r\n \r\nArmstrong State College \r\n \r\nAwan, \r\n \r\nIjaz A. \r\n \r\nEason, \r\n \r\nThomas E. \r\n \r\nIde, \r\n \r\nChristopher \r\n \r\nRichardson, Joseph \r\n \r\nSmith, \r\n \r\nSteven \r\n \r\n. Tapp, \r\n \r\nCarl \r\n \r\nThomas, \r\n \r\nGeorge \r\n \r\nWashington, Daniel \r\n \r\nGeorgia Southern University \r\n \r\nImmele, \r\n \r\nRene \r\n \r\nOliver, \r\n \r\nChristine \r\n \r\nOther \r\n \r\nCampbell, \r\n \r\nRobert \r\n \r\nSALARIES AND WAGES \r\n$ 15,701,014.17 $ \r\n \r\nTRAVEL 328,832.83 \r\n \r\n23,019.70 -11,194.50 \r\n \r\n-2,150.00 -9,742.00 \r\n-10.00 -11,152.41 \r\n-75.00 -1,650.00 \r\n-187.50 \r\n~27.50 \r\n-1,200.00 -4,437.70 \r\n \r\n88.50 \r\n \r\nTotals per Report \r\n \r\n$ 15,682,207.26 $ 328,921.33 \r\n \r\nDISTRIBUTION BY FUND \r\nCURRENT FUNDS Unrestricted Resident Instruction Regular Special Funding Initiative Office of Minority Business Enterprise Auxiliary Enterprises Student Activities Restricted Resident Instruction \r\n \r\n$ 12,971,036.96 $ 204,790.55 72,161.91 \r\n1,184,461.11 \r\n1,249,756.73 \r\n \r\n167,943.85 5,961.44 \r\n13,953.20 59,178.86 \r\n2,286.76 \r\n79,597.22 \r\n \r\n$ 15,682,207.26 $ 328,921.33 . \r\n \r\nSee notes to the financial statements. \r\n \r\n- 45- \r\n \r\n SAVANNAH STATE UNIVERSITY RECONCILIATION OF PER DIEM AND FEES \r\nYEAR ENDED JUNE 30,1996 \r\n \r\nTotals per Annual Supplement \r\nAdjustments C \u0026 M Environmental \u0026 Geotechnical Services Hanson Architects PC Keaton Land Surveying \r\n \r\nTYPE PAYMENT \r\nConsultant Consultant Consultant \r\n \r\nFEE AMOUNT \r\n \r\nEXPENSE AMOUNT \r\n \r\n$ 403,350.12 $ 48,003.92 $ \r\n \r\nTOTAL 451,354.04 \r\n \r\n4,950.00 21,704.20 \r\n1,883.01 \r\n \r\n4,950.00 21,704.20 \r\n1,883.01 \r\n \r\nTotals per Report \r\n \r\n$ 431,887.33 $ 48,003.92 $ 479,891.25 \r\n \r\nDISTRIBUTION BY FUND \r\nCURRENT FUNDS Unrestricted Resident Instruction Regular Office of Minority Business Enterprise Auxiliary Enterprises Student Activities Restricted Resident Instruction \r\nPLANT FUNDS Unexpended RegUlar Renewals and Replacements \r\n \r\n$ 164,648.41 1,646,62 \r\n86,431,34 65,420.19 \r\n117,006.68 \r\n40,275.00 4,463.01 \r\n \r\n$ 479,891.25 \r\n \r\nSee notes to the financial statements. \r\n \r\n-46- \r\n \r\n SECTIONn FINDINGS AND IMPROPER OR QUESTIONED COSTS \r\n \r\n SAVANNAH STATE UNIVERSITY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 1996 \r\n \r\nSTATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR QUESTIONED COSTS \r\n \r\nThe status of the findings disclosed in the review report for the year ended June 30, 1995, is summarized below: \r\n \r\nAudit Control Number \r\n \r\nStatus ofFindings \r\n \r\n548-95-01 548-95-02 548-95-03 548-95-04 \r\n \r\nSee Audit Control Number 548-96-01 See Audit Control Number 548-96-02 See Audit Control Number 548-96-03 Corrective Action Implemented \r\n \r\nPRIOR YEAR \r\n \r\nREVENUEIRECEIVABLESIRECEIPTS Student Accounts Receivable Not Supported by Financial Aid Financial Statements Audit Control Number 548-96-01 \r\n \r\nThe review report for the year ended June 30, 1995, disclosed that Savannah State University had $53,973.09 in student accounts receivable which were not supported by approved financial aid. On June 30, 1996, the balance had decreased to $47,832.90. There is no provision in the policies of the Board of Regents for deferments ofstudent accounts without the student having approved financial aid at the time of registration. \r\n \r\nCollections ofstudent accounts receivable should be made on at least a quarterly basis, and no student should be granted a deferment without having approved financial aid. It is recommended that legal means be used to collect all student accounts receivable, if necessary. \r\n \r\nPRIOR YEAR/CURRENT YEAR \r\n \r\nEXPENDITURESILIABILITIESIDISBURSEMENTS Deficit Cash Balance Financial Statements Audit Control Number 548-96-02 \r\n \r\nThe review report for the year ended June 30, 1995, disclosed that Savannah State University had a negative fund balance of $133,898.56 in the Restricted Funds - Naval Science Scholarship Account that was not supported by a valid accounts receivable. On June 30, 1996, the account had a negative fund balance of $135,938.56. The negative balance occurred because the University awarded Naval Science Scholarships without obtaining funding approval. \r\n \r\nThe University should implement procedures to fund this deficit and ensure that Naval Science Scholarships are not awarded until funds are available. \r\n \r\n- 1- \r\n \r\n SAVANNAH STATE UNIVERSITY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS \r\nYEAR ENDED JUNE 30. 1996 \r\nPRIOR YEAR/CURRENT YEAR \r\nFUND BALANCE Deficit to be Funded from Subsequent Years' Operations Financial Statements Audit Control Number 548-96-03 \r\nThe review report for the year ended June 30, 1995, disclosed that Intercollegiate Athletics had a deficit fund balance of $318,347.18. At June 30, 1996, a deficit of $208,044.30 continued to exist. This deficit is the result ofthe University's lack ofsufficient funds to meet obligations on a current basis. The Board ofRegents' Policy Manu~ Section 702.02 states that auxiliary enterprises \"shall be placed on a self-supporting basis, and the State will not make an appropriation to finance its operations\". \r\nThe University should take appropriate action to fund this deficit. \r\nCURRENT YEAR \r\nCASH AND CASH EQUIVALENTS Uncollateralized Deposits Financial Statements Audit Control Number 548-96-04 \r\nAt June 30, 1996, the University failed to have its certificates of deposit fully collateralized as provided for by the Official Code of Georgia Annotated Section 50-17-59. \r\nThis noncompliance occurred due to management's failure to adequately monitor the collateralization of balances at individual banks. The University should implement adequate procedures to monitor the collateralization of bank balances to ensure compliance at all times with State Laws governing deposits. \r\nINVENTORIES Inadequate SupplylResale Inventory Records Financial Statements Audit Control Number 548-96-05 \r\nA review of the supply/resale inventory reco~ds as of June 30, 1996, revealed that the internal accounting control procedures for the supply and resale perpetual inventory system were deficient. The following is a summary ofthe deficiencies: \r\n(1) The University does not have written policies and procedures for the concession, bookstore, and plant operations inventories. \r\n(2) The method used for physical inventory counts for the bookstore inventory and plant operations inventory at fiscal year end were ineffective and therefore could not be relied upon. \r\n- 2- \r\n \r\n SAVANNAH STATE UNIVERSITY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS \r\nYEAR ENDED JUNE 30. 1996 \r\n \r\nCURRENT YEAR \r\n \r\nINVENTORIES Inadequate SupplylResale Inventory Records Financial Statements Audit Control Number 548-96-05 \r\n \r\nThese deficiencies are a result ofmanagement's failure to have written policies and procedures and to ensure inventories are properly maintained. The University should develop and implement procedures to ensure that iriventories are properly maintained and that physical inventory counts are performed in a reliable manner. \r\n \r\nGENERAL FIXED ASSETSIPROPERTY MANAGEMENT General Ledger Not Supported by Subsidiary Records Financial Statements Audit Control Number 548-96-06 \r\n \r\nA review of the subsidiary equipment inventory records as of June 30, 1996, revealed that an unidentified variance of$364,089.76 existed between the subsidiary equipment inventory records and the general ledger. The University was unable to provide a reconciliation to account for the variance. \r\n \r\nThis variance was a result ofmanagement's failure to properly record inventory transactions on the subsidiary records and their failure to reconcile the subsidiary equipment inventory records to the general ledger. The University should implement procedures to ensure that the subsidiary equipment inventory records are reconciled to the general ledger accounting records. \r\n \r\nFEDERAL FINANCIAL REPORTS Federal Cash Transactions Report Not Reconciled to Accounting Records Pell Grant Program (CFDA 84.063) Federal Financial Assistance Audit Control Number 548-96-07 \r\n \r\nFor the year under review, our examination of the University's Federal financial reports disclosed that the expenditures reported through June 30, 1996, on the Federal Cash Transactions Report (Form PMS 272-A) were not in agreement with the accounting records as indicated below: \r\n \r\nGrant Program \r\n \r\nExpenditures Per \r\nReport (pMS 272-A) \r\n \r\nExpenditures Per \r\nAccounting Records \r\n \r\nDifference \r\n \r\nPell FY96 \r\n \r\n$3,272,759.44 $3,495,774.64 $ -223,015.20 \r\n \r\n- 3- \r\n \r\n SAVANNAH STATE UNIVERSITY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS \r\nYEAR ENDED JUNE 30. 1996 CURRENT YEAR FEDERAL FINANCIAL REPORTS Federal Cash Transactions Report Not Reconciled to Accounting Records Pell Grant Program (CFDA 84.063) Federal Financial Assistance Audit Control Number 548-96-07 T.he $223,015.20 difference for the FY 96 Pell Grant Program was the result of management's failure to reconcile reports to the U. S. Department ofEducation with the accounting records. The University should implement procedures to ensure that reported expenditures are reconciled to the UniversitYs formal accounting records. The University should contact the Federal grantor agency regarding resolution ofthe unreconciled difference. \r\n- 4- \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":4,"first_page?":true,"last_page?":true},"facets":[{"name":"type_facet","items":[{"value":"Text","hits":4}],"options":{"sort":"count","limit":16,"offset":0,"prefix":null}},{"name":"creator_facet","items":[{"value":"Georgia. Department of Audits and Accounts","hits":4}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"subject_facet","items":[{"value":"Auditors' reports--Georgia","hits":4},{"value":"Financial statements--Georgia","hits":4},{"value":"Savannah State University (Ga.)--Appropriations and expenditures","hits":4}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"location_facet","items":[{"value":"United States, Georgia, Chatham County, 31.97402, -81.09243","hits":4}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"counties_facet","items":[{"value":"Chatham","hits":4}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"year_facet","items":[{"value":"1996","hits":2},{"value":"1997","hits":2},{"value":"1998","hits":2},{"value":"1995","hits":1},{"value":"1999","hits":1}],"options":{"sort":"count","limit":100,"offset":0,"prefix":null},"min":"1995","max":"1999","count":8,"missing":0},{"name":"medium_facet","items":[{"value":"state government records","hits":4}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"fulltext_present_b","items":[{"value":"true","hits":4}],"options":{"sort":"count","limit":100,"offset":0,"prefix":null}},{"name":"rights_facet","items":[{"value":"http://rightsstatements.org/vocab/InC/1.0/","hits":4}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"collection_titles_sms","items":[{"value":"Georgia Government Publications","hits":4}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"serial_titles_sms","items":[{"value":"Audit report, Savannah State University, Savannah, Georgia","hits":4},{"value":"Audit report, State of Georgia. Savannah State University, Savannah, Georgia.","hits":4},{"value":"Savannah State University","hits":4}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"provenance_facet","items":[{"value":"University of Georgia. Map and Government Information Library","hits":4}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"call_numbers_sms","items":[{"value":"A800 .R1 S25","hits":4},{"value":"A800 .R1 S25 1995-96","hits":1},{"value":"A800 .R1 S25 1996-97","hits":1},{"value":"A800 .R1 S25 1997-98","hits":1},{"value":"A800 .R1 S25 1998-99","hits":1}],"options":{"sort":"count","limit":100,"offset":0,"prefix":null}},{"name":"class_name","items":[{"value":"Item","hits":4}],"options":{"sort":"count","limit":100,"offset":0,"prefix":null}},{"name":"geojson","items":[{"value":"{\"type\":\"Feature\",\"geometry\":{\"type\":\"Point\",\"coordinates\":[-81.09243, 31.97402]},\"properties\":{\"placename\":\"United States, Georgia, Chatham County\"}}","hits":4}],"options":{"sort":"index","limit":-2,"offset":0,"prefix":null}},{"name":"placename","items":[{"value":"United States, Georgia, Chatham County","hits":4}],"options":{"sort":"count","limit":100,"offset":0,"prefix":null}}]}}