{"response":{"docs":[{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bn64-b1998-h99","title":"Review report, state of Georgia, North Georgia College and State University, Dahlonega, Georgia, year ended June 30, 1999","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Lumpkin County, Dahlonega, 34.53259, -83.98491"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["1998/1999"],"dcterms_description":["Fiscal year ended June 30, 2000-","Title from cover.","Title fluctuates: Audits conducted \"in accordance with generally accepted auditing standards\" are issued as: Audit report; reviews that are \"substantially less in scope than an audit in accordance with generally accepted auditing standards\" are issued as: Review or Management report or Independent accountant's report on applying agreed-upon procedures","Year ended June 30, 2006."],"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":["North Georgia College \u0026 State University--Appropriations and expenditures","Financial statements--Georgia","Auditors' reports--Georgia"],"dcterms_title":["Review report, state of Georgia, North Georgia College and State University, Dahlonega, 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-bn64-b1998-h99"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bn64-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~{)~ \r\nR. \\ \r\nN~A \r\nl,~il-qq \r\n \r\nREVIEW REPORT \r\n \r\nSTATE OF GEORGIA \r\n \r\nNORTH GEORGIA COLLEGE AND STATE UNIVERSITY \r\n \r\nDAHLONEGA, GEORGIA \r\n \r\n, \r\n \r\nYEAR ENDED JUNE 30, 1999 \r\n \r\nl~ \r\n \r\n/ \r\n \r\nSTATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 WASHINGTON STREET \r\nATLANTA, GEORGIA 30334-8400 \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY - TABLE OF CONTENTS - \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT ACCOUNTANTS COMBINED REPORT ON REVIEW OF 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 COMBINI~\"G STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, \r\n \r\nAND OTHER CHANGES \r\n \r\nUNRESTRICTED \r\n \r\n22 \r\n \r\nSCHEDULES \r\n \r\n1 SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n23 \r\n \r\nSCHEDULES OF REVENUES AND EXPENDrnJRES COMPARED TO BUDGET \r\n \r\n2 \r\n \r\nRESIDENT INSTRUCTION \r\n \r\n24 \r\n \r\n3 \r\n \r\nLOITERY FOR EDUCATION \r\n \r\n27 \r\n \r\n4 CHANGES IN INVESTMENT IN PLANT \r\n \r\n28 \r\n \r\n5 SCHEDULE OF FUND BALANCES \r\n \r\nCURRENT FUNDS AND PLANT FUNDS \r\n \r\n30 \r\n \r\n6 RECONCILIATION OF SALARIES AND TRAVEL \r\n \r\n32 \r\n \r\n FINANCIAL \r\n \r\n RUSSELL W. HINTON \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 \r\nAugust 19, 1999 \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 Nathaniel Hansford, President North Georgia College and State University \r\n \r\nINDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SupPLEMENTARY INFORMATION \r\n \r\nLadies and Gentlemen: \r\n \r\nWe have reviewed the accompanying financial statements (Exhibits A through D) of North Georgia College and State University as of and for the year ended June 30, 1999, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in these financial statements is the representation of the management ofNorth Georgia College and State University. \r\n \r\nA review consists principally of inquiries of University personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective ofwhich is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. \r\n \r\nBased on our review, with the exception ofthe matters described in the fourth and fifth paragraphs, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with generally accepted accounting principles. \r\n \r\nAs disclosed in Note 1 to the financial statements, generally accepted accounting principles require \r\n \r\nencumbrances to be recorded as a reservation of fund balance. However, in accordance with Georgia Law \r\n \r\nand State budgetary policy, management recorded encumbrances as expenditures and liabilities. The effects \r\n \r\nof this departure from generally accepted accounting principles on the financial statements were not \r\n \r\nreasonably determinable. \r\n \r\n. \r\n \r\n99ARL-67 \r\n \r\n As disclosed in Note 1 to the financial statements, the University did not report the liability and related expenditure for compensated absences in the current funds as required by generally accepted accounting principles. If compensated absences were reported, liabilities would be increased and fund balance would be decreased by $821,356.89 as of June 30, 1999, and the net change in fund balance for the year ended June 30, 1999, would be decreased by $59,600.04. \r\nOur review was made for the purpose ofexpressing limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with generally accepted accounting principles. The year 2000 supplementary infonnation on Schedule\"1\" is not a required part of the basic financial statements but is supplementary infonnation required by the Governmental Accounting Standards Board. The accompanying combining statements (Exhibits -E through G) and the financial schedules (Schedules 2 through 6) are presented for supplementary analysis purposes. Such infonnation has been subjected to the inquiries and analytical procedures applied in the review ofthe financial statements~ and except for the effects of the matters discussed in the fourth and fifth paragraphs, we are not aware of any material modifications which should be made thereto. \r\nRespectfully submitted, \r\n~4.01t.Q.~ R sell W. Hinton State Auditor \r\nRWH:gp 99ARL-67 \r\n \r\n FINANCIAL STATEMENTS - 1- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY COMBINED BALANCE SHEET ALL FUND GROUPS JUNE 30.1999 \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable Inventories Prepaid Items Due from Other Fund Groups Investment in Plant \r\nTotal Assets \r\nLIABILITIES AND FUND BALANCES \r\nLiabilities Accounts Payable Student Deposits Deferred Revenue Tuition and Fees Other Deposits Held in Custody for Others Due to Other Fund Groups \r\nTotal Liabilities \r\nFund Balances U. S. Government Grants Refundable Institutional Loans - Restricted Endowment Net Investment in Plant Restricted Unrestricted \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\nCURRENT FUNDS UNRESTRICTED RESTRICTED \r\n \r\nLOAN FUNDS \r\n \r\n$ 2,820,426.67 $ 100,559.04 $ 75,984.10 \r\n \r\n3,204.30 \r\n \r\n541,087.94 \r\n \r\n51,238.33 \r\n \r\n912,019.41 \r\n \r\n895,051.77 \r\n \r\n14,757.97 \r\n \r\n807,490.27 \r\n \r\n$ 5,078,814.62 $ 151,797.37 $ 991,207.81 \r\n \r\n$ \r\n \r\n652,256.30 \r\n \r\n155,849.02 \r\n \r\n969,767.00 238,284.21 \r\n \r\n$ 2,016,156.53 \r\n$ 735,835.61 \r\n255,372.20 \r\n$ 151,797.37 $ 3,062,658.09 $ 3,062,658.09 $ 151,797.37 $ 991,207.81 \r\n \r\n$ \r\n \r\n5,07~,814.62 $ 151,797.37 $ 991,207.81 \r\n \r\nSee Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\nTile notes to the financial statements are an integral part of this statement. -2- \r\n \r\n EXHIBIT \"A\" \r\n \r\nENDOWMENT FUNDS \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$ 240,196.65 $ 2,242,279.85 9,372.49 \r\n \r\n1,353,706.26 $ \r\n \r\n1,613,118.63 \r\n \r\n$ 108,954.81 $ 6,312,946.16 \r\n \r\n2,245,484.15 \r\n \r\n17,242.80 \r\n \r\n4,823.81 \r\n \r\n1,535,784.78 \r\n \r\n895,051.77 \r\n \r\n14,757-;97 \r\n \r\n807,490.27 \r\n \r\n_ _ _ _ _ _ $ 55,019,892.90 \r\n \r\n55,019,892.90 \r\n \r\n$ 2,491,848.99 $ 1,370,949.06 $ \r\n \r\n1,613,118.63 $ 55,019,892.90 $ 113,778.62 $ 66,831,408.00 \r\n \r\n$ 562,956.84 $ \r\n \r\n423,857.39 / \r\n \r\n807,490.27 $ 1,370,447.11 $ \r\n \r\n423,857.39 \r\n \r\n$ 62,220.03 $ 1,701,290.56 155,849.02 \r\n \r\n51,558.59 \r\n \r\n969,767.00 238,284.21 \r\n51,558.59 807,490.27 \r\n \r\n$ 113,778.62 $ 3,924,239.65 \r\n \r\n$ 2,491,848.99 \r\n$ $ 2,491,848.99 $ \r\n \r\n501.95 $ 501.95 $ \r\n \r\n$ 55,019,892.90 1,189,261.24 1,189,261.24 $ 55,019,892.90 \r\n \r\n$ 735,835.61 255,37220 \r\n2,491,848.99 55,019,892.90 \r\n151,797.37 4,252,421.28 \r\n$ 62,907,168.35 \r\n \r\n$ 2,491,848.99 $ 1,370,949.06 $ \r\n \r\n1,613,118.63 $ 55,019,892.90 $ 113,778.62 $ 66,831,408.00 \r\n \r\n-3- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY COMBINED STATEMENT OF CHANGES IN FUND BALANCES \r\nALL FUND GROUPS YEAR ENDED JUNE 30.1999 \r\n \r\nREVENUES AND OTHER ADDITIONS \r\nUnrestricted Current Fund Revenues State Appropriations \r\nRegular Federal Grants and Contracts State Grants and Contracts Local Grants and Contracts Private Gifts, Grants, and Contracts Investment Income \r\nEndowment Other Net Increase/Decrease in Fair Value of Investments 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 Insurance Recoveries Proceeds from Sale of Plant Assets Late Fees \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\nLoans Assigned to Federal Govemment Loan 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 . Investment Income Allocated for Loans \r\nNonmandatory Renewals and Replacements Capital Projects General Operations \r\nTotal Transfers Between Funds \r\nNet Increase/(Decrease) for the Year \r\nFUND BALANCES JULY 1, 1998 \r\nFUND BALANCES JUNE 30, 1999 \r\nSee Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\nThe notes to the financial statements are an integral part of this statement. \r\n-4- \r\n \r\nCURRENT FUNDS UNRESTRICTED RESTRICTED \r\n \r\nLOAN FUNDS \r\n \r\n$ 29,779,352.57 \r\n \r\n$ 1,363,824.38 $ 2,926,379.87 96,888.58 448,471.16 19,712.33 \r\n22,757.64 226.27 \r\n \r\n37,459.34 \r\n14,329.47 \r\n102,591.01 -104.05 \r\n20,393.42 \r\n \r\n$ 29,802,336.48 $ 4,855,276.32 $ \r\n \r\n1,632.27 176,301.46 \r\n \r\n$ 23,698,117.77 $ 4,857,143.98 4,834,944.93 19,920.64 \r\n \r\n7,321.08 \r\n \r\n$ \r\n \r\n441.00 \r\n \r\n18,653.52 \r\n \r\n-13,147.89 \r\n \r\n$ 28,540,383.78 $ 4,877,064.62 $ _--:5:.t;,9:;.:4\",,6':.::;6=-3 \r\n \r\n$ \r\n \r\n-695.81 $ \r\n \r\n-9,529.24 \r\n \r\n-5,302.66 \r\n \r\n5,302.66 \r\n \r\n$ \r\n \r\n-339,405.76 \r\n \r\n-54,269.56 \r\n \r\n5,410.93 \r\n \r\n-5,410.93 \r\n \r\n$ \r\n \r\n-388,264.39 $ -11,409.40 $ \r\n \r\n-4,226.58 \r\n \r\n$ \r\n \r\n873,688.31 $ -33,197.70 $ 166,128.25 \r\n \r\n2,188,969.78 \r\n \r\n184,995.07 \r\n \r\n825,079.56 \r\n \r\n$ 3,062,658.09 $ 151,797.37 $ 991,207.81 \r\n \r\n EXHIBIT\"B\" \r\n \r\nENDOWMENT FUNDS \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$ 1,532,000.00 \r\n \r\n$ \r\n \r\n82,723.16 \r\n \r\n2,275.00 153,000.00 $ \r\n501.95 \r\n \r\n39,667.59 585.68 \r\n \r\n$ \r\n \r\n82,723.16 $ 1,728,030.22 $ \r\n \r\n$ 29,779,352.57 \r\n \r\n1,532,000.00 \r\n \r\n1,401,283.72 \r\n \r\n2,926,379.87 \r\n \r\n96,888.58 \r\n \r\n$ \r\n \r\n31,816.00 \r\n \r\n496,891.63 \r\n \r\n42,499.83 \r\n \r\n19,712.33 298,090.84 \r\n82,619.11 20,393.42 \r\n \r\n91.85 \r\n \r\n23,351.44 226.27 \r\n \r\n1,049,888.07 \r\n \r\n1,049,888.07 \r\n \r\n1,744,498.66 382,732.89 \r\n2,542,870.22 \r\n \r\n1,744,498.66 382,732.89 \r\n2,542,870.22 \r\n \r\n39,667.59 585.68 \r\n1,632.27 \r\n \r\n42,591.68 $ 5,751,805.84 $ 42,439,065.16 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n$ 28,555,261.75 4,834,944.93 19,920.64 \r\n \r\n$ \r\n \r\n6,208.81 \r\n \r\n13,529.89 441.00 \r\n18,653.52 -13,147.89 \r\n \r\n1,744,498.66 $ 37,299.17 \r\n \r\n382,732.89 227,015.85 \r\n$ \r\n \r\n513,412.21 \r\n \r\n2,127,231.55 264,315.02 513,412.21 \r\n \r\n$ \r\n \r\n0.00 $ 1,788,006.64 $ \r\n \r\n609,748.74 $ 513,412.21 $ 36,334,562.62 \r\n \r\n$ \r\n \r\n10,225.05 \r\n \r\n$ \r\n \r\n$ \r\n \r\n10,225.05 $ \r\n \r\n$ 92,948.21 $ \r\n \r\n2,398,900.78 \r\n \r\n$ 54,269.56 \r\n54,269.56 $ -5,706.86 $ 6,208.81 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n339,405.76 \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n339,405.76 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n-227,751.30 $ 5,238,393.63 $ 6,104,502.54 \r\n \r\n1,417,012.54 49,781,499.27 56,802,665.81 \r\n \r\n$ 2,491,848.99 $ \r\n \r\n501.95 $ \r\n \r\n1,189,261.24 $ 55,019,892.90 $ 62,907,168.35 \r\n \r\n-5- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, \r\nAND OTHER CHANGES YEAR ENDED JUNE 30,1999 \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 \" Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships Mandatory Transfers for: Investment Income for Endowment Principal Investment Income Allocated for Loans \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 ADDITIONSICDEDUCTIONSl \r\nExcess of Restricted Receipts over Transfers to Revenues \r\nTransfers for Renewals and Replacements Transfers for capital Projects Transfers for General Operations Prior Period Adjustments (Net) Remittances to the Board of Regents \r\n.of the University System of Georgia Prior Year's Unrestricted Fund Balance (Surplus) \r\nTotal Other Transfers and Additions/(Deductions) \r\n \r\nUNRESTRICTED \r\n \r\nRESTRICTED \r\n \r\nTOTAL (Memorandum \r\nOnly) \r\n \r\n$ 16,499,431,00 6,978,790.00 22,783.94 $ \r\n15,039,35 5,713,891,01 \r\n549,417.27 $ 29,n9,352.57 $ \r\n \r\n$ 1,313,784.87 2,923,843.30 \r\n92,359,50 514,595.02 \r\n12,561.29 \r\n4,857,143.98 $ \r\n \r\n16,499,431,00 6,978,790,00 1,336,568.81 2,923,843.30 \r\n92,359.50 514,595.02 \r\n12,561.29 15,039.35 5,713,891.01 549,417.27 \r\n34,636,496,55 \r\n \r\n$ 12,915,356,05 $ 2,534,017,95 2,490,846.07 3,198,657.75 2,063,155.95 496,084.00 \r\n1,645,356,98 82,100.22 \r\n1,801,835.83 278,592.63 525,268.16 501,791.11 \r\n$ 28,533,062.70 $ \r\n \r\n566,913.78 $ 19,903.04 168,193,02 \r\n4,102,134.14 695.81 \r\n5,302,66 \r\n4,863,142,45 $ \r\n \r\n13,482,269.83 2,534,017.95 2,510,749.11 3,366,850.n 2,063,155.95 4,598,218,14 \r\n695.81 5,302.66 \r\n1,645,356.98 82,100,22 \r\n1,801,835.83 278,592.63 525,268.16 501,791.11 \r\n33,396,205.15 \r\n \r\n$ \r\n \r\n$ \r\n \r\n-339,405.76 \r\n \r\n-54,269.56 \r\n \r\n5,410.93 \r\n \r\n22,983.91 \r\n \r\n-21,788.30 $ -5,410.93 \r\n \r\n-21,788.30 -339,405.76 \r\n-54,269.56 0.00 \r\n22,983.91 \r\n \r\n-7,321.08 \r\n \r\n$ \r\n \r\n-372,601,56 $ \r\n \r\n-27,199.23 $ \r\n \r\n-7,321.08 -399,800.79 \r\n \r\nNet Increasel(Decrease) in Fund Balances \r\n \r\n$ \r\n \r\n873,688,31 $ \r\n \r\n-33,197,70 $ \r\n \r\n840,490.61 \r\n \r\nSee Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information, The notes to the financial statements are an integral part of this statement.. \r\n-6- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNNERSITY \r\nNOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1999 \r\n \r\nEXHIBIT\"D\" \r\n \r\nNOTE 1: SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nREPORTING ENTITY North Georgia College and 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 ofGeorgia. The accompanying financial statements reflect the operations ofNorth Georgia College and State University as a separate reporting entity. \r\n \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. North Georgia College and State University does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, North Georgia College and 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 ofRegents as defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Remorting Standards. \r\n \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. Accorditigly, all financial transactions have been recorded and reported by fund group. \r\n \r\nWithin each fund group, the University's fundbalance 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\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 performing 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-7- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNNERSITY \r\nNOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 3D. 1999 \r\n \r\nEXHlBIT \"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 FUNDS \r\nThe fund used to account for endowment funds that are subject to the restrictions of gift instruments requiring that the principal be invested in perpetuity and income only be utilized. \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 of institutional properties. \r\n \r\nINVESTMENT IN PLANT - The fund which shows the total amounts representing the book value of all \r\n \r\nphysical properties owned by the University. Net Investment in Plant is an equity account showing the \r\n \r\ntotal book value of physical properties belonging to the University less the amount of any indebtedness \r\n \r\nto others. \r\n \r\n- \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, staffmembers, and organizations. \r\n \r\nBASIS OF ACCOUNTING Except as otherwise disclosed in these notes, the financial statements are prepared on the modified accrual bas~s of accounting, which is materially the same as the accrual basis of accounting 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 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\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 of contracts for goods and services. The recognition of encumbrances as expenditures and liabilities is in conformity with \r\n \r\n-8- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNNERSITY \r\nNOTES TO THE FINANCIAL STATEMENTS \r\nruNE 30.1999 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF ACCOUNTING 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 principies. \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$821,356.89 and a related net current year expenditure of$59,600.04 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 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 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 Am~ded 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 \r\n-9- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNNERSITY \r\nNOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30. 1999 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nBUDGET \r\n \r\n, \r\n \r\nA comparison of anticipated funds available and budgeted expenditures by budget unit object class indicates \r\n \r\nthat the following object classes were overspent by the amounts identified below: \r\n \r\nResident Instruction Personal Services: Education, General and Departmental Services Year 2000 Project \r\n \r\n$ \r\n \r\n380.57 \r\n \r\n$ 37.331.62 \r\n \r\nThese overexpenditures of budget constitute a violation of Board of Regents policy, but do not constitute statutory violations of budget authority. Statutory violations of budget authority 'are reported at the Board object class level. \r\n \r\nCASH AND CASH EQUIVALENTS Cash and Cash Equivalents consist of petty cash, demand deposits, certificates of deposit and temporary investments in authorized financial institutions, and cash management pools that have the general characteristics of demand deposit accounts. \r\n \r\nINVESTMENTS Investments are reported at fair value. Funds received by the University as endowments or for restricted purposes are invested according to conditions stipulated by the donor, grantor, or in accordance with the Board ofRegents authorizing resolutions. Gains and losses on investment transactions are accounted for in the funds where such assets are recorded. \r\nACCOUNTS RECEIVABLE \r\nAccounts 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 first-in, first-out method. \r\n \r\nInventories of goods for resale are valued at cost using the last-in, first-out method. \r\n \r\nPREPAID ITEMS \r\n \r\nPrepaid items are payments made to vendors in advance ofthe receipt of goods and services that will benefit \r\n \r\nperiods subsequent to the balance sheet date. \r\n \r\n. \r\n \r\n- 10- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY \r\nNOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30. 1999 \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 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 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 of the bonds for this purpose. \r\n(4) Industrial revenue bonds and bonds of development authorities created by the laws ofthe 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 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 50-1'7-53, 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 NORTH GEORGIA COLLEGE AND STATE UNIVERSITY \r\nNOTES TO THE FWANCIAL STATEMENTS \r\nJUNE 30. 1999 \r\n \r\nEXHIBIT \"0\" \r\n \r\nNOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS \r\n \r\nSTATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES \r\n \r\nThe treasurer of the Board of Regents is responsible for all details relative to furnishing the required \r\n \r\ndepository protection for all units of the University System of Georgia. \r\n \r\n. \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, 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\nCash Deposits \r\n \r\nCarrying Amount \r\n \r\nBank Balances \r\n \r\nRisk Categories \r\n \r\n2 \r\n \r\n3 \r\n \r\n$ 1.869,047.91 $ 2,629,734.57 $ 141.079.18 $ 2,488,655.39 $==~O,O~O \r\n \r\nCATEGORIZATION OF INVESTMENTS \r\n \r\nInvestments are summarized and classified as to custodial credit risk within the three categories described \r\n \r\nb~ow: \r\n \r\n. \r\n \r\nCategory 1 - Insured or registered, or securities held by the University or its agent in the University's name. \r\n \r\nCategory 2 - Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the University's name. \r\n \r\nCategory 3 - Uninsured and unregistered, with .securities held by the counterparty, or by its trust department or agent but not in the University's name. \r\n \r\nThe carrying amounts of investment balances as ofJune 30, 1999, are categorized below: \r\n \r\n- 12- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNNERSITY \r\nNOTES TO THE FINANCIAL STATEMENTS \r\nruNE 30, 1999 \r\n \r\nEXHIBIT\"D\" \r\n \r\nNOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS \r\n \r\nCATEGORIZATION OF INVESTMENTS \r\n \r\nT)1le of Investment Common Stock State of Georgia Securities U. S. Government Securities \r\nInvestments Not Subject to Categorizations: State Investment Pool \r\nTotal Investments \r\n \r\nRisk Categories \r\n \r\n1 \r\n \r\n2 \r\n \r\n$ 507,294.85 $ \r\n1,734,985.00 3,204.30 \r\n \r\n0.00 $ \r\n \r\n$ 2,245.484.15 $ \r\n \r\n0.00 $ \r\n \r\nCanying \r\n \r\n3 \r\n \r\nAmount \r\n \r\n0.00 $ 507,294.85 1,734,985.00 3,204.30 \r\n \r\n0.00 $ 2,245,484.15 \r\n \r\n4,426,978.25 $ 6,672.462.40 \r\n \r\nFunds invested in an investment pool managed by another governmental entity are not required to be categorized since the University did not own any specific, identifiable investment securities of the pool. \r\n \r\nNOTE 3: INVESTMENT IN PLANT \r\n \r\nThe following is a summary of Investment in Plant fixed assets as ofJune 30, 1999: \r\n \r\nLand Buildings Improvements Other Than Buildings Equipment Library Books and Collections \r\n \r\n$ 941,876.68 38,255,593.94 4,955,766.94 7,639,319,28 3,227.336.06 \r\n \r\nTotal Investment in Plant \r\n \r\n$55,019,892.90 \r\n \r\nNOTE 4: RISK MANAGEMENT \r\n \r\nNorth Georgia College and State University is a participant in the Board ofRegents ofthe University System of Georgia Health Benefits Plan, which is a self-insurance program of health and dental benefits for employees and retirees ofthe University System of Georgia The University and participating employees and retirees pay premiums to the Health Benefits Plan for this health insurance coverage. The Health Benefits Plan is included in the financial statements of the Board ofRegents of the University System of Georgia Administrative Central Office. All units ofthe University System of Georgia share the risk ofloss for claims ofthe Health Benefits Plan. The Health Benefits Plan is considered a self-sustaining risk fund that provides health coverage for its members up to a maximum lifetime benefit of$I,OOO,OOO.OO per person and dental \r\n. coverage up to an annual maximum of$1 ,000.00 per person. The Board ofRegents has contracted with Blue \r\n \r\n- 13- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE QNNERSITY \r\nNOTES TO THE FWANCIAL STATEMENTS \r\nJUNE 30. 1999 \r\n \r\nEXHIBIT\"D\" \r\n \r\nNOTE 4: RISK MANAGEMENT \r\nCross 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 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\nA self-insured program of professional liability for its employees was established by the Board ofRegents 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 perfonnance of their duties or in any way connected therewith. The program is administered by DOAS as a Self-Insurance Fund. \r\nNOTE 5: RETmEMENIPLANS \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nPlan Description North Georgia College and State University participates in the Teachers Retirement System ofGeorgia (TRS), a cost-sharing multiple-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia. TRS provides service retirement, disability retirement, and survivor's benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department ofAudits and Accounts. \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-14 - \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30. 1999 . \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 5: RETmEMENIPLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\nFunding Policy \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n1999 1998 1997 \r\n \r\n100% 100% 100% \r\n \r\n$ 1,463,070.87 $ 1,328,952.34 $ 1,284,767.87 \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 ofthe 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 tenns 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 only 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 $285,014.64 (8.34%) and $170,872.23 (5%), respectively. \r\n \r\nGEORGUDEFlNEDCONTIDrnunONPLAN \r\n \r\nPlan Description North Georgia College and State University participates in the Georgia Defined Contribution Plan (GDCP) which is a single-employer defined contribution plan established by the General Assembly of Georgia for the purpose ofproviding retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees of the Employees' Retirement System of Georgia. \r\n \r\n- 15 - \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNNERSITY \r\nNOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30. 1999 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 5: RETIREMENT PLANS \r\nGEORGIA DEFINED CONTRIBUTION PLAN \r\nBenefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board of Trustees. 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. 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 of employment, the amount of the member's account is refundable upon request by the member. \r\nTotal contributions made by employees during fiscal year 1999 amounted to $31,894.52 which represents 7.5% of covered payroll. These contributions met the requirements ofthe plan. \r\nNOTE 6: LEAVE POLICIES \r\nEmployees earn annual leave ranging from one and one-quarter days to one and three-quarter days each month depending upon the employees' length of continuous State service with maximum accumulation of forty-five days. Employees are paid for unused accumulated annual leave upon retirement or termination of employment. See Note 1- Basis of Accounting (Compensated Absences) \r\nEmployees earn one day of sick leave each month with no maximum accumulation established. Unused accumulated sickleave does not vest with the employee and is forfeited upon retirement or termination of employment, except as noted in the subsequent paragraph. \r\nCertain employees who retire with a minimum ofthree months ofunused sick leave are entitled to additional service credit in the Teachers Retirement System of Georgia. \r\nNOTE 7: CONTINGENCIES \r\nAmounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. This could result in refunds to the grantor agency for any expenditures which are disallowed under grant terms. The amount of expenditures which may be disallowed by the grantor cannot be determined at this time although the University expects such amounts, if any, to be immaterial to its overall financial position. \r\n \r\n- 16- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY \r\nNOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30. 1999 \r\n \r\nEXHlBIT \"D\" \r\n \r\nNOTE 7: CONTINGENCIES \r\n \r\nLitigation, claims and assessments filed against North Georgia College and State University (an organizational unit of the Board of Regents of the University System of Georgia), if any, are generally considered to be actions against the State of Georgia. Accordingly, significant litigation, claims and assessments pending against the State ofGeorgia are disclosed in the State ofGeorgia 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 permit 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 147 employees who had retired or were disabled that were receiving these postemployment health and life insurance benefits. For the year ended June 30, 1999, North Georgia College and State University recognized as incurred $315,295.32 of expenditures, which was net of $90,409.20 of participant contributions. \r\n \r\nNOTE 9: ENROLLMENT \r\n \r\nThe equivalent full-time student enrollment ofNorth Georgia College and State University was as follows: \r\n \r\nRegular Term Fall Semester, 1998 Spring Semester, 1999 \r\n \r\n2,730 2,572 \r\n \r\nAverage \r\n \r\nSummer School, 1998 \r\n \r\n- 17 - \r\n \r\n SUPPLEMENTARY INFORMATION - 19- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY COMBINING BALANCE SHEET \r\nCURRENT FUNDS UNRESTRICTED JUNE 30,1999 \r\n \r\nEXHIBIT \"E\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable Inventories Prepaid Items Due from Other Fund Groups \r\n \r\nRESIDENT \r\n \r\nLOTIERYFOR \r\n \r\nINSTRUCTION EDUCATION \r\n \r\nAUXILIARY ENTERPRISES \r\n \r\nSTUDENT ACTIVITIES \r\n \r\nTOTAL \r\n \r\n$ 407,962.31 $ 90,713.43 52,497.65 3,707.65 874,262.29 \r\n \r\n1,550.70 $ \r\n \r\n2,163,050.01 $ 247,863.65 $ 2,820,426.67 \r\n \r\n447,914.17 \r\n \r\n2,460.34 \r\n \r\n541,087.94 \r\n \r\n842,554.12 \r\n \r\n895,051.n \r\n \r\n11,050.32 \r\n \r\n:14,757.97 \r\n \r\n874,262.29 \r\n \r\nTotal Assets \r\n \r\n$ 1,429,143.33 $ \r\n \r\n1,550.70 $ 3,464,568.62 $ 250,323.99 $ 5,145,586.64 \r\n \r\nLIABILITIES AND FUND BALANCES \r\nLiabilities Accounts Payable Student Deposits Deferred Revenue Tuition and Fees Other Due to Other Fund Groups \r\nTotal Liabilities \r\nFund Balances Unrestricted \r\n \r\n$ 533,820.02 $ 811,231.00 \r\n$ 1,345,051.02 $ 84,092.31 \r\n \r\n1,550.70 $ 1,550.70 $ \r\n \r\n55,189.78 $ 61,695.80 $ 652,256.30 \r\n \r\n155,849.02 \r\n \r\n155,849.02 \r\n \r\n109,760.50 218,753.21 66,n2.02 \r\n \r\n48,n5.50 19,531.00 \r\n \r\n969,767.00 238,284.21 66,n2.02 \r\n \r\n606,324.53 $ 130,002,30 $ 2,082,928.55 \r\n \r\n0.00 \r\n \r\n2,858,244.09 120,321.69 3,062,658.09 \r\n \r\nTotal Liabilities and Fund Balances \r\n \r\n$ 1,429,143.33 $ \r\n \r\n1,550.70 $ 3,464,568.62 $ 250,323.99 $ 5,145,586.64 \r\n \r\nSee accompanying notes and Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 20- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY COMBINING STATEMENT OF CHANGES IN FUND BALANCES \r\nCURRENT FUNDS UNRESTRICTED YEAR ENDED JUNE 30, 1999 \r\n \r\nEXHIBIT\"F\" \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n21 - \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY COMBINING STATEMENT OF CURRENT FUNDS REVENUES EXPENDITURES, \r\nAND OTHER CHANGES UNRESTRICTED \r\nYEAR ENDED JUNE 30,1999 \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 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 ADDITIONSIlDEDUCTIONSl \r\nTransfers for Renewals and Replacements Transfers for Capital Projects Transfers for General Operations Prior Period Adjustments (Net) Remittances to the Board of Regents \r\nof the University System of Georgia Prior Year's Unrestricted Fund Balance (Surplus) \r\nTotal Other Transfers and Additions/(Deductions) \r\n \r\nRESIDENT INSTRUCTION \r\n \r\nLOTIERYFOR EDUCATION \r\n \r\nAUXILIARY ENTERPRISES \r\n \r\nSTUDENT ACTIVITIES \r\n \r\nTOTAL \r\n \r\n$ 16.277.931,00 $ 6.566.365,06 22.783,94 15.039,35 \r\n82.334,90 \r\n$ 22.964.454,25 $ \r\n \r\n221.500,00 $ \r\n \r\n$ 16.499.431,00 \r\n \r\n$ 412.424,94 \r\n \r\n6.978.790,00 \r\n \r\n22.783,94 \r\n \r\n15.039,35 \r\n \r\n5.713.891,01 \r\n \r\n5.713.891,01 \r\n \r\n418.661,59 \r\n \r\n48.420,78 \r\n \r\n549,417,27 \r\n \r\n221.500,00 $ 6.132.552,60 $ 460.845,72 $ 29.779.352,57 \r\n \r\n$ 12.695.046,69 $ 2.532.827,31 1.979.636,96 3.198.657,75 2.063.155,95 496.084,00 \r\n$ 22.965,408,66 $ \r\n \r\n220.309,36 1.190,64 \r\n \r\n$ 12.915.356,05 \r\n \r\n2.534.017,95 \r\n \r\n$ 511.209,11 \r\n \r\n2,490.846,07 \r\n \r\n3.198.657,75 \r\n \r\n2.063.155,95 \r\n \r\n496.084,00 \r\n \r\n$ 1.645.356,98 82.100,22 \r\n1.801.835,83 278.592,63 525.268,16 501.791,11 \r\n \r\n1.645.356,98 82.100,22 \r\n1.801.835,83 278.592,63 525.268.16 501.791,11 \r\n \r\n221.500,00 $ 4.834,944,93 $ 511.209.11 $ 28.533.062.70 \r\n \r\n$ \r\n \r\n5.410.93 \r\n \r\n21.474,64 \r\n \r\n$ -339.405,76 -54.269,56 \r\n1.173.74 $ \r\n \r\n$ 335,53 \r\n \r\n-339.405,76 -54.269,56 5.410.93 22.983,91 \r\n \r\n-7.321,08 \r\n \r\n$ \r\n \r\n19.564,49 \r\n \r\n-7,321,08 \r\n \r\n$ -392.501,58 $ \r\n \r\n335,53 $ -372.601,56 \r\n \r\nNet Increasel(Decrease) in Fund Balances \r\n \r\n$ \r\n \r\n18.610.08 $ \r\n \r\n0,00 $ 905.106,09 $ -50.027.86 $ 873.688.31 \r\n \r\nSee accompanying notes and Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information, \r\n-22 - \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNNERSITY SCHEDULE \"1\" SCHEDULE OF REQUIRED SupPLEMENTARY INFORMATION \r\nYEAR 2000 DISCLOSURES \r\nYEAR ENDED JUNE 30. 1999 \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 beyond calendar year 1999. North Georgia College and State University has completed an inventory of computer systems and other electronic equipment that may be effected by the year 2000 issue and that are necessary to conducting institutional operations. The following stages have been identified as necessary to implement year 2000 compliant systems. \r\n~wareness Stage - Encompasses establishing a budget and project plan for dealing with the year 2000 Issue. \r\nAssessment Stage - The actual process of identifying all systems and individual components ofsystems to check for compliance. \r\nRemediation Stage - The time when changes are made to systems and equipment. \r\nValidation/Testing Stage - The process of ensuring that the changes made to systems and equipment will produce a year 2000 compliant system. \r\nIt will be necessary for the University to progress through all four of these 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\nNorth Georgia College and State University has identified the following financial systems requiring year 2000 remediation that are supported by the Board of Regents, University System of Georgia and have been remediated by the Board. \r\nThe College and University Fund Accounting System has been remediated, validated and tested. \r\nThe Regents Budget Reporting System is reportedly year 2000 compliant. The awareness, assessment and validation/testing phases were completed in 1997. \r\nThe Regents Payroll/Personnel System is remediated, validated and tested. \r\nThe Regents Property Inventory System is reportedly year 2000 compliant. The awareness, assessment and validation/testing phases were completed in 1997. \r\nThe Banner Student Information System is supported by SCT Banner, Inc. Their year 2000 version has been released and distributed to the University. \r\nBecause ofthe unprecedented nature ofthe year 2000 issue, its effects and the success ofrelated remediation efforts will not be fully determined 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\nSee accompanying notes and Independent Accountant's Combined Report on Review ofFinancial Statements and Supplementary Information. \r\n- 23- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET \r\nRESIDENT INSTRUCTION \r\nYEAR ENDED JUNE 30, 1999 \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$ 16,277,931.00 \r\n \r\n$ 1,532,000.00 \r\n \r\n6,686,523.25 $ 4,857,143.98 \r\n \r\n195,528.27 $ _ _.....;,;42;;.:.,4.;.;;9.;;.;9..;;.;83~ \r\n \r\n---....;.,.-- $ 22,964,454.25 $ 4,857,143.98 $ 1,727,528.27 $ \r\n \r\n42,499.83 \r\n \r\nEXPENDITURES \r\n \r\nPersonal Services: \r\n \r\nEducation, General and Departmental Services $ 18,419,809.57 \r\n \r\nSponsored Operations \r\n \r\n$ 277,264.85 \r\n \r\nOperating Expenses: \r\n \r\nEducation, General and Departmental Services \r\n \r\n4,226,816.26 \r\n \r\nSponsored Operations \r\n \r\n4,579,879.13 \r\n \r\nCapital Outlay \r\n \r\n$ 1,781,797.83 $ \r\n \r\nSpecial Funding Initiative \r\n \r\n221,737.21 \r\n \r\nYear 2000 Project \r\n \r\n97,045.62 \r\n \r\n609,748.74 \r\n \r\n$ 22,965,408.66 $ 4,857,143.98 $ 1,781,797.83 $ \r\n \r\n6_09...;,,7_4_8,_74_ \r\n \r\nExcess of Revenues over Expenditures \r\n \r\n$ \r\n \r\n-954.41 $ \r\n \r\n0.00 $ -54,269.56 $ _====-5:;;,67i::!i,2=4:;;,8':;;,9=1 \r\n \r\n(1) To eliminate tuition waivers not budgeted and to reclassify QJrrent year \r\ntransfers and prior year fund balances budgeted as revenues. \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n-24- \r\n \r\n SCHEDULE \"2\" \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$ 17,809,931.00 11,781 ,695.33 $ \r\n \r\n$ 17,809,931.00 $ 17,809,931.00 $ \r\n \r\n125,434.47 \r\n \r\n11,907,129.80 \r\n \r\n13,765,790.00 \r\n \r\n0.00 -1,858,660.20 \r\n \r\n$ 29,591,626.33 $ \r\n \r\n125,434.47 $ 29,717,060.80 $ 31,575,721.00 $ -1,858,660.20 \r\n \r\n$ 18,419,809.57 2n,264.85 \r\n4,226,816.26 $ 4,579,879.13 2,391,546.57 \r\n221,737.21 97,045.62 \r\n \r\n$ 18,419,809.57 $ 18,419,429.00 $ \r\n \r\n2n,264.85 \r\n \r\n384,475.00 \r\n \r\n-496,084.00 \r\n \r\n3,730,73226 4,579,879.13 2,391,546.57 \r\n221,737.21 97,045.62 \r\n \r\n3,927,659.00 5,147,452.00 3,410,609.00 \r\n226,383.00 59,714.00 \r\n \r\n-380.57 107,210.15 \r\n196,926.74 567,572.87 1,019,062.43 \r\n4,645.79 -37,331.62 \r\n \r\n$ 30,214,099.21 $ \r\n \r\n-496,084.00 $ 29,718,015.21 $ 31,575,721.00 $ _--..;.;1,:.;.,85;..;,7.:.;,,7...;.,05;..;,.7...;9_ \r\n \r\n$ -622,472.88 $ \r\n \r\n621,518.47 $ =======-9..5.4=.=41= \r\n \r\n$ ==-=-==-9:=5.4...=41= \r\n \r\n-25 - \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET \r\nLOTTERY FOR EDUCATION \r\nYEAR ENDED JUNE 30,1999 \r\n \r\nSCHEDULE \"3\" \r\n \r\nREVENUES State Appropriations \r\n \r\nCURRENT FUNDS UNRESTRICTED \r\n \r\nBUDGET \r\n \r\nVARIANCEFAVORABLE (UNFAVORABLE) \r\n \r\n$ \r\n \r\n221.500.00 $ \r\n \r\n221,500.00 $ \r\n \r\nO~.~OO~ \r\n \r\nEXPENDITURES \r\nEquipment, Technology and Construction Trust Fund \r\nSpecial Funding Initiatives \r\n \r\n$ \r\n \r\n116.000.00 $ \r\n \r\n116,000.00 $ \r\n \r\n105,500.00 \r\n \r\n105.500.00 \r\n \r\n$ \r\n \r\n221,500.00 $ \r\n \r\n221 ,500.00 $ \r\n \r\n0.00 0.00 \r\n.....,.._O~.O~O;... \r\n \r\nExcess of Revenues over Expenditures \r\n \r\n$ =====0.=00= \r\n \r\n$=====0:=.00= \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 27- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY CHANGES IN INVESTMENT IN PLANT YEAR ENDED JUNE 30,1999 \r\n \r\nLand Buildings Improvements Other Than Buildings Equipment Library Books and Collections \r\n \r\nBALANCE JULY 1,1998 \r\n \r\nCURRENT FUNDS UNRESTRICTED RESTRICTED \r\n \r\n$ 938,500.31 \r\n \r\n34,634,498.43 \r\n \r\n4,122,971.51 \r\n \r\n7,112,555.91 $ \r\n \r\n750,207.03 $ 33,180.09 \r\n \r\n2,972,973.11 \r\n \r\n266,500.95 \r\n \r\n$ 49,781,499.27 $ 1,016,707.98 $ 33,180.09 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 28- \r\n \r\n SCHEDULE \"4\" \r\n \r\nADDITIONS \r\nPLANT FUNDS RENEWALS AND \r\nUNEXPENDED REPLACEMENTS \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\nPRIVATE GIFTS \r\n \r\nDEDUCTIONS DISPOSALS! DELETIONS! ADJUSTMENTS \r\n \r\nBALANCE JUNE 30, 1999 \r\n \r\n$ \r\n \r\n3,376.37 \r\n \r\n$ 941,876.68 \r\n \r\n815,413.90 $ \r\n \r\n262,811.39 $ \r\n \r\n2,542,870.22 \r\n \r\n38,255,593.94 \r\n \r\n832,795.43 \r\n \r\n4,955,766.94 \r\n \r\n92,912.96 \r\n \r\n119,921.50 \r\n \r\n$ 29,116.00 $ \r\n \r\n498,574.21 \r\n \r\n7,639,319.28 \r\n \r\n2,700.00 \r\n \r\n14,838.00 \r\n \r\n3,227,336.06 \r\n \r\n$ 1,744,498.66 $ \r\n \r\n382,732.89 $ \r\n \r\n2,542,870.22 $ 31,816.00 $ \r\n \r\n513,412.21 $ 55,019,892.90 \r\n \r\n-29 - \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY SCHEDULE OF FUND BALANCES \r\nCURRENT FUNDS AND PLANT FUNDS JUNE 30.1999 \r\n \r\n$ \r\n \r\n84,092.31 $ ====0.=00.... $ 2,858,244.09 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 30- \r\n \r\n SCHEDULE \"5\" \r\n \r\nSTUDENT ACTIVITIES \r\n \r\nRESTRICTED \r\n \r\nUNEXPENDED REGULAR \r\n \r\nPLANT FUNDS RENEWALS AND REPLACEMENTS \r\n \r\nINVESTMENT IN PLANT \r\n \r\nTOTAL \r\n \r\n$ 55,019,892.90 $ 55,019,892.90 \r\n \r\n$ 151,797.37 \r\n \r\n$ \r\n \r\n151,797.37 \r\n \r\n$ 120,321.613 \r\n \r\n$ \r\n \r\n95,645.91 \r\n \r\n1,093,615.33 \r\n \r\n$ \r\n \r\n95,645.91 \r\n \r\n16,337.85 \r\n \r\n897,554.12 \r\n \r\n1,093,615.33 \r\n \r\n2,119,673.81 \r\n \r\n5,234.32 \r\n \r\n$ 120,321.69 \r\n \r\n$ \r\n \r\n501.95 \r\n \r\n$ \r\n \r\n501.95 $ _~1~,18.;;.,;9;.:;;,2;;,,;;6..;,;1.=24.;.... \r\n \r\n24,359.94 0.00 \r\n$ 4,252,421.28 \r\n \r\n$ 120,321.69 $ 151,797.37 $ \r\n \r\n501.95 $ \r\n \r\n1,189,261.24 $ 55,019,892.90 $ 59,424,111.55 \r\n \r\n- 31 - \r\n \r\n .. \r\n \r\nNORTH GEORGIA COLLEGE AND STATE UNIVERSITY \r\n \r\nSCHEDULE \"6\" \r\n \r\nRECONCILIATION OF SALARIES AND TRAVEL \r\n \r\nYEAR ENDED JUNE 30.1999 \r\n \r\nTotals per Annual Supplement \r\n \r\nAdjustments \r\n \r\nShared Services on Jointly Staffed Personnel \r\n \r\nCoastal Georgia Community College \r\n \r\nChapman, Joe C. \r\n \r\nGainesville College \r\n \r\nHill, \r\n \r\nBryan \r\n \r\nGeorgia State University \r\n \r\nDay, \r\n \r\nSherman R. \r\n \r\nUniversity of Georgia \r\n \r\nMitchell, Lawrence \r\n \r\nSALARIES \r\n \r\n$ \r\n \r\n15,926,397.91 $ \r\n \r\nTRAVEL 259,687.22 \r\n \r\n-325.12 -1,672.09 182,882.10 -27,053.47 \r\n \r\n$ \r\n \r\n16,080,229.33 $===2=:5=9::,6=87:::::.2:=2= \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 32- \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bn64-b1997-h98","title":"Review report, state of Georgia, North Georgia College and State University, Dahlonega, Georgia, year ended June 30, 1998","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Lumpkin County, Dahlonega, 34.53259, -83.98491"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["1997/1998"],"dcterms_description":["Fiscal year ended June 30, 2000-","Title from cover.","Title fluctuates: Audits conducted \"in accordance with generally accepted auditing standards\" are issued as: Audit report; reviews that are \"substantially less in scope than an audit in accordance with generally accepted auditing standards\" are issued as: Review or Management report or Independent accountant's report on applying agreed-upon procedures","Year ended June 30, 2006."],"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":["North Georgia College \u0026 State University--Appropriations and expenditures","Financial statements--Georgia","Auditors' reports--Georgia"],"dcterms_title":["Review report, state of Georgia, North Georgia College and State University, Dahlonega, 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-bn64-b1997-h98"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bn64-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":"\"h \r\n~OO \r\nRi \r\n'1 b4- \r\nI~~ '1-1~ \r\nREVIEW REPORT STATE OF GEORGIA NORTH GEORGIA COLLEGE AND STATE UNIVERSITY DAHLONEGA, GEORGIA YEAR ENDED JUNE 30, 1998 \r\nSTATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 WASHINGTON STREET \r\nATLANTA, GEORGIA 30334-8400 \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY - TABLE OF CONTENTS - \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \r\n \r\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\nLOITERY 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\n 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\nSeptember 23, 1998 \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 Sherman R. Day, President North Georgia College and State University \r\nINDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \r\nLadies and Gentlemen: \r\nWe have reviewed the accompanying financial statements (Exhibits A through D) of North Georgia College and State University as of and for the year ended June 30, 1998, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in these fmancial statements is the representation of the management of North Georgia College and State University. \r\nA review consists principally of inquiries of University personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. \r\nBased on our review, with the exception of the matters described in the fourth and fifth paragraphs, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with generally accepted accounting principles. \r\nAs disclosed in Note 1 to the financial statements, generally accepted accounting principles require encumbrances to be recorded as a reservation of fund balance. However, in accordance with Georgia Law and State budgetary policy, management recorded encumbrances as expenditures and liabilities. The effects of this departure from generally accepted accounting principles on the financial statements were not reasonably determinable. \r\n \r\n98ARL-67 \r\n \r\n As disclosed in Note 1 to the financial statements, the University did not report the liability and related expenditure for compensated absences in the current funds as required by generally accepted accounting principles. If compensated absences were reported, liabilities would be increased and fund balance would be decreased by $761,756.85 as of June 30, 1998, and the net change in fund balance for the year ended June 30, 1998, would be decreased by $1,805.46. \r\nOur review was made for the purpose of expressing limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with generally accepted accounting principles. The accompanying supplementary information (Exhibits E through G and Schedules 1 through 5) is presented only for supplementary analysis purposes. Such information has been subjected to the inquiries and analytical procedures applied in the review of the financial statements, and except for the effects of the matters discussed in the fourth and fifth paragraphs, we are not aware of any material modifications which should be made thereto. \r\nRespectfully submitted, \r\n~~ \r\nClaude L. Vickers State Auditor \r\nCLV:gp 98ARL-67 \r\n \r\n FINANCIAL STATEMENTS - 1- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY COMBINED BALANCE SHEET ALL FUND GROUPS JUNE 30. 1998 \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable Inventories Prepaid Items Investment in Plant \r\nTotal Assets \r\nLIABILITIES AND FUND BALANCES \r\nLiabilities Accounts Payable Student Deposits Deferred Revenue Tuition and Fees Other Deposits Held in Custody for Others \r\nTotal Liabilities \r\nFund Balances U. S. Government Grants Refundable Institutional Loans - Restricted Endowment Net Investment in Plant Restricted Unrestricted \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\nCURRENT FUNDS \r\n \r\nUNRESTRICTED \r\n \r\nRESTRICTED \r\n \r\nLOAN FUNDS \r\n \r\n$ \r\n \r\n2,606,906.85 $ \r\n \r\n962,271.27 767,802.58 \r\n19,003.24 \r\n \r\n107,907.19 $ 77,087.88 \r\n \r\n15,671.75 3,308.35 \r\n806,099.46 \r\n \r\n$ \r\n \r\n4,355,983.94 $ \r\n \r\n184,995.07 $ =====8=25=,0=7=9.=56= \r\n \r\n$ \r\n \r\n953,961.43 \r\n \r\n156,691.73 \r\n \r\n809,811.00 246,550.00 \r\n \r\n$ \r\n \r\n2,167,014.16 \r\n \r\n$ \r\n \r\n$ \r\n \r\n2,188,969.78 \r\n \r\n$ 2,188,969.78 $ \r\n \r\n$ \r\n \r\n684,051.89 \r\n \r\n141,027.67 \r\n \r\n184,995.07 \r\n \r\n184,995.07 $ \r\n \r\n825,079.56 \r\n \r\n$ \r\n \r\n4,355,983.94 $ \r\n \r\n184,995.07 $ =====82=:5=,0=7==:9.==:56= \r\n \r\nSee Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\nThe notes to the financial statements are an integral part of this statement. -2- \r\n \r\n EXHIBIT \"A\" \r\n \r\nENDOWMENT FUNDS \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$ 227,270.06 $ \r\n2,161,023.69 10,607.03 \r\n \r\n396,628.71 $ \r\n \r\n1,534,624.54 \r\n \r\n$ \r\n \r\n_ _ _ _ _ _ $ 49,781,499.27 \r\n \r\n329,827.99 $ 5,218,837.09 \r\n \r\n2,164,332.04 \r\n \r\n22,819.34 \r\n \r\n1,878,884.98 \r\n \r\n767,802.58 \r\n \r\n19,003.24 \r\n \r\n49,781,499.27 \r\n \r\n$ 2,398,900.78 $ \r\n \r\n396,628.71 $ \r\n \r\n1,534,624.54 $ 49,781,499.27 $ 352,647.33 $ 59,830,359.20 \r\n \r\n$ \r\n \r\n390,419.90 $ \r\n \r\n$ \r\n \r\n390,419.90 $ \r\n \r\n$ 2,398,900.78 \r\n$ $ 2,398,900.78 $ \r\n \r\n6,208.81 $ 6,208.81 $ \r\n \r\n117,612.00 117,612.00 \r\n \r\n$ 229,921.29 $ 1,691,914.62 \r\n156,691.73 \r\n \r\n122,726.04 \r\n \r\n809,811.00 246,550.00 122,726.04 \r\n \r\n$ 352,647.33 $ 3,027,693.39 \r\n \r\n$ 49,781,499.27 \r\n1,417,012.54 \r\n1,417,012.54 $ 49,781,499.27 \r\n \r\n$ \r\n \r\n684,051.89 \r\n \r\n141,027.67 \r\n \r\n2,398,900.78 \r\n \r\n49,781,499.27 \r\n \r\n184,995.07 \r\n \r\n3,612,191.13 \r\n \r\n$ 56,802,665.81 \r\n \r\n$ 2,398,900.78 $ \r\n \r\n396,628.71 $ \r\n \r\n1,534,624.54 $ 49,781,499.27 $ 352,647.33 $ 59,830,359.20 \r\n \r\n-3- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY COMBINED STATEMENT OF CHANGES IN FUND BALANCES \r\nALL FUND GROUPS YEAR ENDED JUNE 30,1998 \r\n \r\nREVENUES AND OTHER ADDITIONS \r\nUnrestricted Current Fund Revenues State Appropriations \r\nRegular Federal Grants and Contracts State Grants and Contracts Local Grants and Contracts Private Gifts, Grants, and Contracts Investment Income \r\nEndowment Other Net Increase/Decrease in Fair Value of Investments 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 Proceeds from Sale of Plant Assets Late Fees \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\nLoans Assigned to Federal Govemment Loan Cancellations and Write-Ofts Administrative and Collection Costs Expended for Plant Facilities \r\nCapitaliZed Noncapitalized Disposals/Deletions/Adjustments \r\nTotal Expenditures and Other Deductions \r\nTRANSFERS BETWEEN FUNDS \r\nMandatory Investment Income for Principal Investment Income Allocated for Loans Unspent Loan Funds for Principal \r\nNonmandatory Renewals and Replacements Capital Projects General Operations \r\nTotal Transfers Between Funds \r\nNet Increase/(Decrease) for the Year \r\nFUND BALANCES JULY 1,1997 (Restated - See Note 1) \r\nFUND BALANCES JUNE 30 1998 \r\nSee Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\nThe notes to the financial statements are an integral part of this statement. \r\n-4- \r\n \r\nCURRENT FUNDS \r\n \r\nUNRESTRICTED \r\n \r\nRESTRICTED \r\n \r\nLOAN FUNDS \r\n \r\n$ 27,576,065,97 \r\n \r\n$ \r\n \r\n1,111,137,35 \r\n \r\n2,698,347.01 \r\n \r\n60,976.90 \r\n \r\n477,064,38 $ \r\n \r\n20,133.14 \r\n \r\n11,651.54 2,515.11 \r\n \r\n10,538.95 \r\n62,683.27 154,45 \r\n18,416.81 \r\n \r\n$ 27,590,232.62 $ \r\n \r\n1,339.13 4,367,658,78 $ _ _---'9;.::3....,,1.::;32:;.=-61:... \r\n \r\n$ 21,764,719.74 $ 4,499,826,32 \r\n \r\n4,321,937.99 6,318,75 \r\n \r\n16,454.11 \r\n9,846.00 $ \r\n \r\n414,57 14,388,83 14,668.23 \r\n \r\n$ 26,290,846.17 $ \r\n \r\n4,328,256.74 $ _ _--::2:.:;9.L.,;,4;;;,,;7.;.:1.;;;,,;63:... \r\n \r\n$ \r\n \r\n$ \r\n \r\n-556,122.28 \r\n \r\n-941,214.91 \r\n \r\n14,895.49 \r\n \r\n$ -1,482,441.70 $ \r\n \r\n$ \r\n \r\n-183,055.25 $ \r\n \r\n2,372,025.03 \r\n \r\n-356.38 -921.24 $ \r\n-14,895.49 -16,173.11 $ 23,228.93 $ 161,766.14 \r\n \r\n921.24 -62,691.13 \r\n-61?69.89 1,891.09 \r\n823,188.47 \r\n \r\n$ 2,188,969.78 $ \r\n \r\n184,995.07 $ \r\n \r\n825,079.56 \r\n \r\n EXHIBIT\"B\" \r\n \r\nENDOWMENT FUNDS \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$ 1,222,741.00 \r\n \r\n$ \r\n \r\n191,454.83 \r\n \r\n64,532.00 107,966.50 $ \r\n6,208.81 \r\n \r\n38,717.00 \r\n \r\n$ \r\n \r\n191.454.83 $ 1,440,165.31 $ \r\n \r\n$ 65,274.72 \r\n71.38 \r\n65,346.10 $ \r\n \r\n$ 27,576,065.97 \r\n \r\n49,532.57 \r\n \r\n1,222,741.00 1,111,137.35 2,698,347.01 \r\n60,976.90 601,667.90 \r\n \r\n20,133.14 235,924.49 191,609.28 \r\n18,416.81 \r\n \r\n17,931.73 2,515.11 \r\n \r\n1,304,509.36 \r\n \r\n1,304,509.36 \r\n \r\n2,336,391.53 300,362.43 994,543.27 \r\n \r\n2,336,391.53 300,362.43 994,543.27 \r\n \r\n38,717.00 1,339.13 \r\n \r\n4,985,339.16 $ 38,733,329.41 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n$ 26,086,657.73 4,499,826.32 6,318.75 \r\n \r\n$ \r\n \r\n6,221.10 \r\n \r\n22,675.21 \r\n \r\n9,846.00 414.57 \r\n14,388.83 14,668.23 \r\n \r\n2,336,391.53 $ 38,779.88 \r\n \r\n300,362.43 4,518.19 $ \r\n \r\n624,873.47 \r\n \r\n2,636,753.96 43,298.07 \r\n624,873.47 \r\n \r\n$ \r\n \r\n0.00 $ 2.381,392.51 $ \r\n \r\n304,880.62 $ \r\n \r\n624,873.47 $ 33,959,721.14 \r\n \r\n$ \r\n \r\n356.38 \r\n \r\n62,691.13 \r\n \r\n$ \r\n \r\n$ \r\n \r\n63,047.51 $ \r\n \r\n$ \r\n \r\n254,502.34 $ \r\n \r\n2,144,398.44 \r\n \r\n$ 941,214.91 \r\n941,214.91 $ -12.29 $ \r\n6,221.10 \r\n \r\n556,122.28 \r\n556,122.28 316,587.76 $ 1,100,424.78 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n0.00 0.00 0.00 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n4,360,465.69 $ 4,773,608.27 \r\n \r\n45,421 ,033.58 \r\n \r\n52,029,057.54 \r\n \r\n$ 2,398,900.78 $ \r\n \r\n6,208.81 $ \r\n \r\n1,417,012.54 $ 49,781,499.27 $ 56,802,665.81 \r\n \r\n- 5- \r\n \r\n NORTH GEORGIA COLLEGE AND 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\n \r\nUNRESTRICTED \r\n \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\n \r\n$ \r\n \r\n14,771,153,00 \r\n \r\n6,718,496.65 \r\n \r\n20,874,80 $ \r\n \r\n20,453,01 5,345,901.21 \r\n699,187,30 \r\n \r\nTotal Revenues \r\n \r\n$ \r\n \r\n27,576,065.97 $ \r\n \r\nEXPENDITURES AND MANDATORY TRANSFERS \r\n \r\nEducational and General Instruction Academic Support Student Services Institutional Support Operation and Maintenance of Plant Scholarships and Fellowships Mandatory Transfers for: Investment Income for Endowment Principal Investment Income Allocated for Loans \r\nAuxiliary Enterprises Student Housing Faculty and Staff Housing Food Services Stores and Shops Intercollegiate Athletics Other Service Units \r\n \r\n$ \r\n \r\n11,965,485.25 $ \r\n \r\n2,205,959.15 \r\n \r\n2,251,344.95 \r\n \r\n2,935,133,95 \r\n \r\n2,050,571.44 \r\n \r\n356,225.00 \r\n \r\n1,590,718.98 78,619.24 \r\n1,572,533,83 270,566.74 491,923.82 495,463.71 \r\n \r\nTotal Expenditures and Mandatory Transfers \r\n \r\n$ \r\n \r\n26,264,546.06 $ \r\n \r\nOTHER TRANSFERS AND ADDITIONS/(DEDUCTIONS) \r\n \r\nExcess of Restricted Receipts over \r\n \r\nTransfers to Revenues \r\n \r\n$ \r\n \r\nTransfers for Renewals and Replacements \r\n \r\n$ \r\n \r\n-556,122.28 \r\n \r\nTransfers for Capital Projects \r\n \r\n-941,214.91 \r\n \r\nTransfers for General Operations \r\n \r\n14,895.49 \r\n \r\nPrior Period Adjustments (Net) \r\n \r\n4,320.65 \r\n \r\nRemittances to the Board of Regents of the \r\n \r\nUniversity System of Georgia \r\n \r\nPrior Year's Unrestricted Fund Balance (SurplUS) \r\n \r\n-16,454.11 \r\n \r\nTotal Other Transfers and Additions/(Deductions) $ \r\n \r\n-1,494,575.16 $ \r\n \r\nRESTRICTED \r\n$ \r\n1,102,812.80 2,694,198.58 \r\n104,838.03 412,131.47 \r\n7,957,11 \r\n4,321,937.99 $ \r\n519,199,49 $ \r\n1,427.63 12,905.99 153,812.14 3,634,592.74 \r\n356.38 921.24 \r\n4,323,215.61 $ \r\n39,402,04 $ -14,895.49 \r\n24,506.55 $ \r\n \r\nTOTAL (Memorandum \r\nOnly) \r\n14,771,153,00 6,718,496.65 1,123,687.60 2,694,198.58 104,838.03 412,131.47 7,957.11 20,453,01 5,345,901,21 699,187.30 \r\n31,898,003.96 \r\n12,484,684,74 2,207,386.78 2,264,250,94 3,088,946.09 2,050,571.44 3,990,817.74 \r\n356.38 921.24 \r\n1,590,718.98 78,619.24 \r\n1,572,533.83 270,566,74 491,923.82 495,463.71 \r\n30,587,761.67 \r\n39,402.04 -556,122,28 -941,214.91 \r\n0.00 4,320.65 \r\n-16,454.11 \r\n-1,470,068.61 \r\n \r\nNet Increase/(Decrease) in Fund Balances \r\n \r\n$ \r\n \r\n-183,055.25 $ \r\n \r\n23,228.93 $ ===-::i:15=9O:!:i,8=2:;;;;6.:;;;;32= \r\n \r\nSee Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\nThe notes to the financial statements are an integral part of this statement. -6- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1998 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nREPORTING ENTITY North Georgia College and 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 ofNorth Georgia College and 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. North Georgia College and State University does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, North Georgia College and 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 oflimitations 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, academic support, 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 NORTH GEORGIA COLLEGE AND STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1998 \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 FUNDS \r\nThe fund used to account for endowment funds that are subject to the restrictions of gift instruments requiring that the principal be invested in perpetuity and income only be utilized. \r\nPLANT FUNDS \r\nUNEXPENDED - The fund used to account for financial resources utilized to acquire or to construct physical properties for institutional purposes. \r\nRENEWALS AND REPLACEMENTS - The fund used to account for resources set aside for the renewal and replacement of institutional properties. \r\nINVESTMENT IN PLANT - The fund which shows the total amounts representing the book value of all physical properties owned by the University. Net Investment in Plant is an equity account showing the total book value 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 of accounting, which is materially the same as the accrual basis of accounting applicable to colleges and universities prescribed in the American Institute ofCertified Public Accountants' audit guide reporting model. The modified accrual basis of accounting 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 fmance expenditures of the fiscal period. \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 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 \r\n-8- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1998 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF ACCOUNTING 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 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$76l,756.85 and a related net current year expenditure of$1,805.46 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 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\nRESTATEMENT OF PRIOR YEAR FUND BALANCE In fiscal year 1998, North Georgia College and 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 Loan Funds has been increased by $2,685.15 and the beginning fund balance of the Endowment Funds has been increased by $232,655.95 to implement this change in accounting principle. \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 \r\n- 9- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1998 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBUDGET 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 budget allocation and disbursement of these 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\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\nINVESTMENTS Investments are reported at fair value. Funds received by the University as endowments or for restricted purposes are invested according to conditions stipulated by the donor, grantor, or in accordance with the Board of Regents authorizing resolutions. Gains and losses on investment transactions are accounted for in the funds where such assets are recorded. \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\nINVENTORIES Inventories of consumable supplies are recorded on the consumption method and are valued at cost on the Combined Balance Sheet using the first-in, first-out method. \r\nInventories of goods for resale are valued at cost using the last-in, first-out method. \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\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\n- 10- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1998 \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 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 of the 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\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\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\n- 11 - \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS JUNE 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 DEPOSITS Category 1 - Amounts covered by depository insurance or collateralized with securities (at fair value) held by the University or by its agent in the University's name. \r\n \r\nCategory 2 - Amounts collateralized with securities (at fair value) held by the pledging financial institution's trust department or agent in the University's name. \r\n \r\nCategory 3 - Amounts collateralized with securities (at fair value) held by the pledging financial institution, or by its trust department or agent but not in the University's name, and amounts uncollateralized. \r\n \r\nCash Deposits \r\n \r\nCarrying Amount \r\n \r\nBank Balances \r\n \r\nRisk Categories \r\n \r\n2 \r\n \r\n3 \r\n \r\n$ 562759.02 $ 913.558 11 $ 147756.71 $ 765801 40 $'====,0~0e\u003c;0 \r\n \r\nCATEGORIZATION OF INVESTMENTS Investments are summarized and classified as to custodial credit risk within the three categories described below: \r\n \r\nCategory 1 - Insured or registered, or securities held by the University or its agent in the University's name. \r\n \r\nCategory 2 - Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the University's name. \r\n \r\nCategory 3 - Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent but not in the University's name. \r\n \r\nThe carrying amounts of investment balances as of June 30, 1998, are categorized below: \r\n \r\nType ofInvestment Common Stock State of Georgia Securities U. S. Government Securities \r\nInvestments Not Subject to Categorizations: State Investment Pool \r\nTotal Investments \r\n \r\nRisk Categories \r\n \r\n2 \r\n \r\n3 \r\n \r\nCarrying Amount \r\n \r\n$ 452,072.69 $ 1,708,951.00 3,308.35 \r\n \r\n0.00 $ \r\n \r\n0.00 $ 452,072.69 1,708,951.00 3.308.35 \r\n \r\n$ 2.164.332.04 $ \r\n \r\n0,00 $====\",!O~.O~O $ 2,164,332.04 \r\n \r\n4,639,158.07 $ 6,803.490.11 \r\n \r\n- 12- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS JUNE 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 Funds invested in an investment pool managed by another governmental entity are not required to be categorized since the University did not own any specific, identifiable investment securities of the pool. \r\n \r\nNOTE 3: INVESTMENT IN PLANT \r\n \r\nThe following is a summary of Investment 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$ 938,500.31 34,634,498.43 4,122,971.51 7,112,555.91 2,972,973.11 \r\n \r\nTotal Investment in Plant \r\n \r\n$49,781.499.27 \r\n \r\nNOTE 4: RISK MANAGEMENT \r\n \r\nNorth Georgia College and State University is a participant in the Board of Regents of the University System of Georgia Health Benefits Plan, which is a self-insurance program of health and dental benefits for employees and retirees ofthe University System 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 $1,000,000.00 per person and dental coverage up to an annual maximum of$l,OOO.OO per person. The Board of Regents has contracted with Blue Cross Blue Shield of Georgia to process claims in accordance with the Health Benefits Plan as established by the Board of Regents. \r\n \r\nThe Department of Administrative Services (DOAS) has the responsibility for the State of Georgia of making and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS processes claims for risk of loss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' indemnification. Limited amounts of commercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. 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\n \r\n- 13 - \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS JUNE 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 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 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, 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 of Georgia's plan was converted effective July 1, 1998. \r\nNOTE 6: RETIREMENT PLANS \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nPlan Description North Georgia College and 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 and other benefits for teachers of the State of Georgia. TRS provides service retirement, disability retirement, and survivor's benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \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 of Trustees in accordance with State statute and as advised by their independent actuary. For \r\n- 14- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS JUNE 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\n1998 1997 1996 \r\nREGENTS RETIREMENT PLAN \r\n \r\nPercentage Contributed \r\n100% 100% 100% \r\n \r\nRequired Contribution \r\n$ 1,328,952.34 $ 1,284,767.87 $ 1,233,608.80 \r\n \r\nPlan Description The Regents Retirement Plan, a single-employer defined contribution plan, is an optional retirement plan established and administered by the Board of Regents of the University System of Georgia, under which it may purchase annuity contracts for the purpose of providing retirement and death benefits for eligible faculty and principal administrators. Benefits depend solely on amounts contributed to the plan plus investment earnings. Benefits are payable to participating employees or their beneficiaries in accordance with the terms of the annuity contracts. \r\n \r\nFunding Policy Member contribution requirements are established by the Board of Trustees of the Teachers Retirement System. Employer contributions are established by statute and may be amended only by the General Assembly of the State of Georgia. The employer contributes 7.75% 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 $210,961.98 (7.75%) and $118,104.95 (5%), respectively. \r\n \r\nGEORGIA DEFINED CONTRIBUTION PLAN \r\n \r\nPlan Description North Georgia College and State University participates in the Georgia Defined Contribution Plan (GDCP) which is a single-employer defmed contribution plan established by the General Assembly of Georgia for the purpose ofproviding retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees of the Employees' Retirement System of Georgia. \r\n \r\n- 15 - \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1998 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 6: RETIREMENT PLANS \r\nGEORGIA DEFINED CONTRIBUTION PLAN \r\nBenefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board of Trustees. If a member has less than $ 3,500.00 credited to his/her account, the Board of Trustees has the option of requiring a lump sum distribution to the member in lieu of making periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary. Benefit provisions are established by State statute. \r\nContributions and Vesting Member contributions are seven and one-half percent (7.5%) of gross salary. There are no employer contributions. Contribution rates are established by State statute. Earnings are credited to each member's account in a manner established by the Board of Trustees. Upon termination of employment, the amount of the member's account is refundable upon request by the member. \r\nTotal contributions made by employees during fiscal year 1998 amounted to $36,526.37 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, 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\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 ofexpenditures which may be disallowed by the grantor cannot be determined at this time although the University expects such amounts, if any, to be immaterial to its overall financial position. \r\n \r\n- 16 - \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1998 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 8: CONTINGENCIES \r\n \r\nLitigation, claims and assessments filed against North Georgia College and State University (an organizational unit of the Board of Regents of the University System of Georgia), if any, are generally considered to be actions against the State of Georgia. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1998. \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 of the Board of Regents to permit employees of the University System of Georgia eligible for retirement or that become permanently and totally disabled to continue as members 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\n \r\nAs of June 30, 1998, there were 141 employees who had retired or were disabled that were receiving these postemployment health and life insurance benefits. For the year ended June 30, 1998, North Georgia College and State University recognized as incurred $279,357.24 of expenditures, which was net of $63,320.40 of participant contributions. \r\n \r\nNOTE 10: ENROLLMENT \r\n \r\nThe equivalent full-time student enrollment of North Georgia College and State University was as follows: \r\n \r\nRegular Term Fall Quarter, 1997 Winter Quarter, 1998 Spring Quarter, 1998 \r\n \r\n3,015 2,990 2,859 \r\n \r\nAverage \r\n \r\nSummer School, 1997 \r\n \r\n- 17 - \r\n \r\n THIS PAGE LEFT BLANK \r\n \r\n SUPPLEMENTARY INFORMATION - 19- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY COMBINING BALANCE SHEET \r\nCURRENT FUNDS - UNRESTRICTED JUNE 30,1998 \r\n \r\nEXHIBIT\"E\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable Inventories Prepaid Items \r\n \r\nRESIDENT INSTRUCTION \r\n \r\nLOTTERY FOR EDUCATION \r\n \r\nAUXILIARY ENTERPRISES \r\n \r\nSTUDENT ACTIVITIES \r\n \r\nTOTAL \r\n \r\n$ 902.377,63 $ 580.727.97 50.439.92 1.307.30 \r\n \r\n67,497.92 $ \r\n \r\n1.391 ,403.08 378.544.55 717.362.66 17.695.94 \r\n \r\n$ 245,628,22 2.998,75 \r\n \r\n$ 2.606.906,85 962.271.27 767.802.58 19.003.24 \r\n \r\nTotal Assets \r\n \r\n$ 1.534.852.82 $ \r\n \r\n67.497.92 $ 2.505.006.23 $ 248.626.97 $ 4.355.983.94 \r\n \r\nLIABILITIES AND FUND BALANCES \r\n \r\nLiabilities Accounts Payable Student Deposits Deferred Revenue Tuition and Fees Other \r\n \r\n$ 731.760.59 $ 737.610.00 \r\n \r\nTotal Liabilities \r\n \r\n$ 1.469.370.59 $ \r\n \r\nFund Balances Unrestricted \r\n \r\n65,482.23 \r\n \r\n67.497.92 $ 67.497.92 $ \r\n \r\n130,575.50 $ 24.127.42 $ 953.961.43 \r\n \r\n156.691.73 \r\n \r\n156.691.73 \r\n \r\n36.680.00 227.921.00 \r\n \r\n35.521.00 18.629.00 \r\n \r\n809.811.00 246.550.00 \r\n \r\n551.868.23 $ 78,277.42 $ 2.167.014.16 \r\n \r\n0.00 \r\n \r\n1.953.138.00 \r\n \r\n170.349.55 \r\n \r\n2.188.969.78 \r\n \r\nTotal Liabilities and Fund Balances \r\n \r\n$ 1.534.852.82 $ \r\n \r\n67,497.92 $ 2.505.006.23 $ 248.626.97 $ 4.355.983.94 \r\n \r\nSee accompanying notes and Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 20- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY COMBINING STATEMENT OF CHANGES IN FUND BALANCES \r\nCURRENT FUNDS - UNRESTRICTED YEAR ENDED JUNE 30, 1998 \r\n \r\nEXHIBIT\"F\" \r\n \r\nRESIDENT INSTRUCTION \r\n \r\nLOTTERY FOR EDUCATION \r\n \r\nAUXILIARY ENTERPRISES \r\n \r\nSTUDENT ACTIVITIES \r\n \r\nTOTAL \r\n \r\nREVENUES AND OTHER ADDITIONS \r\n \r\nUnrestricted Current Fund Revenues Adjustments \r\nPrior Years' Expenditures/Accounts Payable Prior Years' Checks Voided \r\n \r\n$ 21,054,480.67 $ \r\n3,940.97 2,136,05 \r\n \r\n278,633.00 $ 5,791,462.53 $ 451,489.77 $ 27,576,065.97 \r\n \r\n7,710.57 272.39 \r\n \r\n106.67 \r\n \r\n11,651.54 2,515.11 \r\n \r\nTotal Revenues and Other Additions $ 21,060,557.69 $ 278,633.00 $ 5,799,445.49 $ 451,596.44 $ 27,590,232.62 \r\n \r\nEXPENDITURES AND OTHER DEDUCTIONS \r\n \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\n \r\n$ 21,067,232.10 $ \r\n16,454.11 900.00 \r\n \r\n278,633.00 \r\n \r\n$ 418,854.64 $ 21,764,719.74 \r\n \r\n$ 4,499,826.32 \r\n \r\n4,499,826.32 \r\n \r\n8,946.00 \r\n \r\n16,454.11 9,846.00 \r\n \r\nTotal Expenditures and Other Deductions \r\n \r\n$ 21,084,586.21 $ 278,633.00 $ 4,508,772.32 $ 418,854.64 $ 26,290,846.17 \r\n \r\nTRANSFERS BETWEEN FUNDS \r\n \r\nNonmandatory Renewals and Replacements Capital Projects General Operations \r\n \r\n$ \r\n \r\n14,895.49 \r\n \r\n$ -556,122.28 -941,214.91 \r\n \r\n$ -556,122.28 -941,214.91 14,895.49 \r\n \r\nTotal Transfers Between Funds \r\n \r\n$ \r\n \r\n14,895.49 \r\n \r\n$ -1,497,337.19 \r\n \r\n$ -1,482,441.70 \r\n \r\nNet Increase/(Decrease) for the Year $ \r\n \r\n-9,133.03 $ \r\n \r\n0.00 $ -206,664.02 $ 32,741.80 $ -183,055.25 \r\n \r\nFUND BALANCES JULY 1, 1997 \r\n \r\n74,615.26 \r\n \r\n0.00 \r\n \r\n2,159,802.02 \r\n \r\n137,607.75 \r\n \r\n2,372,025.03 \r\n \r\nFUND BALANCES JUNE 30.1998 \r\n \r\n$ \r\n \r\n65,482.23 $ ====0.=00,= $ 1,953,138.00 $ 170,349.55 $ 2,188,969.78 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 21 - \r\n \r\n THIS PAGE LEn BLANK \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY COMBINING STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES, \r\nAND OTHER CHANGES UNRESTRICTED \r\nYEAR ENDED JUNE 30,1998 \r\n \r\nEXHIBIT\"G\" \r\n \r\nRESIDENT INSTRUCTION \r\n \r\nLOTTERY FOR EDUCATION \r\n \r\nAUXILIARY ENTERPRISES \r\n \r\nSTUDENT ACTIVITIES \r\n \r\nTOTAL \r\n \r\nREVENUES \r\n \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\n \r\n$ 14,492,520.00 $ 6,312,986.05 20,874.80 20,453.01 \r\n207,646.81 \r\n \r\n278,633.00 $ \r\n \r\n$ 14,771,153.00 \r\n \r\n$ 405,510.60 \r\n \r\n6,718,496.65 \r\n \r\n20,874.80 \r\n \r\n20,453.01 \r\n \r\n5,345,901.21 \r\n \r\n5,345,901.21 \r\n \r\n445,561.32 \r\n \r\n45,979.17 \r\n \r\n699,187.30 \r\n \r\nTotal Revenues \r\n \r\n$ 21,054,480.67 $ 278,633.00 $ 5,791,462.53 $ 451,489.77 $ 27,576,065.97 \r\n \r\nEXPENDITURES \r\n \r\nEducational and General Instruction 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\n \r\n$ 11,692,852.25 $ 2,199,959.15 1.832,490.31 2,935,133.95 2,050,571.44 356.225.00 \r\n \r\n272,633.00 6,000.00 \r\n \r\n$ 11,965,485.25 \r\n \r\n2,205,959.15 \r\n \r\n$ 418,854.64 \r\n \r\n2,251.344.95 \r\n \r\n2,935.133.95 \r\n \r\n2,050,571.44 \r\n \r\n356,225.00 \r\n \r\n$ 1,590,718.98 78,619.24 \r\n1,572,533.83 270,566.74 491,923.82 495,463.71 \r\n \r\n1,590,718.98 78,619.24 \r\n1,572,533.83 270,566.74 491,923.82 495,463.71 \r\n \r\nTotal Expenditures \r\n \r\n$ 21,067.232.10 $ 278,633.00 $ 4,499,826.32 $ 418,854.64 $ 26,264,546.06 \r\n \r\nOTHER TRANSFERS AND ADDITIONS/IDEDUCTIONSl \r\n \r\nTransfers for Renewals and Replacements \r\n \r\nTransfers for Capital Projects \r\n \r\nTransfers for General Operations \r\n \r\n$ \r\n \r\nPrior Period Adjustments (Net) \r\n \r\nRemittances to the Board of Regents of the \r\n \r\nUniversity System of Georgia \r\n \r\nPrior Year's Unrestricted Fund Balance (SurplUS) \r\n \r\n14,895.49 5,177.02 \r\n-16,454.11 \r\n \r\n$ -556,122.28 -941,214.91 \r\n-963.04 $ \r\n \r\n$ 106.67 \r\n \r\n-556,122.28 -941,214.91 \r\n14,895.49 4.320.65 \r\n \r\n-16,454.11 \r\n \r\nTotal Other Transfers and Additions/(Deductions) \r\n \r\n$ \r\n \r\n3,618.40 \r\n \r\n$ -1,498,300.23 $ \r\n \r\n106.67 $ -1,494,575.16 \r\n \r\nNet Increase/(Decrease) in Fund Balances \r\n \r\n$ \r\n \r\n-9,133.03 $ \r\n \r\n0.00 $ -206,664.02 $ 32,741.80 $ -183,055.25 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 23- \r\n \r\n NORTH GEORGIA COLLEGE AND 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 \r\n \r\nUNRESTRICTED \r\n \r\nRESTRICTED \r\n \r\nPLANT FUNDS RENEWALS AND \r\nUNEXPENDED REPLACEMENTS \r\n \r\n$ 14,492,520.00 6,561,960.67 $ \r\n \r\n$ 1,222,741.00 \r\n \r\n4,321,937.99 \r\n \r\n211,215.50 $ \r\n \r\n6; ,.:;5;.:,; ,2;,;,.74,.;..;.;.,;72;;.,.. \r\n \r\n$ 21,054,480.67 $ \r\n \r\n4,321,937.99 $ 1,433,956.50 $ \r\n \r\n6_5..:..,2_74_._72_ \r\n \r\nEXPENDITURES \r\n \r\nPersonal Services: Education, General and Departmental Services $ Sponsored Operations \r\nOperating Expenses: Education, General and Departmental Services Sponsored Operations \r\nCapital Outlay Special Funding Initiative \r\n \r\n16,572,331.87 $ \r\n4,394,207.04 \r\n100,693.19 \r\n \r\n244,577.87 \r\n4,077,360.12 $ 2,375,171.41 $ \r\n \r\n304,880.62 \r\n \r\n$ 21,067,232.10 $ \r\n \r\n4,321,937.99 $ 2,375,171.41 $ _ _-.,;;.,304;;\",,;.:.:,8;...:.8.;;,;0'.;;,;62~ \r\n \r\nExcess of Revenues over Expenditures \r\n \r\n$ \r\n \r\n-12,751.43 $ \r\n \r\n0.00 $ -941,214.91 $ ===-2=:3::::9=,6\"\",05....9=:0,= \r\n \r\n(1) To eliminate tuition waivers not budgeted and to reclassify current year transfers and prior year fund balances budgeted as revenues. \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 24- \r\n \r\n SCHEDULE \"1\" \r\n \r\nTOTAL \r\n \r\nADJUSTMENTS (1 ) \r\n \r\nTOTAL (Budget Basis) \r\n \r\nBUDGET \r\n \r\nVARIANCEFAVORABLE (UNFAVORABLE) \r\n \r\n$ 15,715,261.00 11,160,388.88 $ \r\n \r\n$ 15,715,261.00 $ 15,715,261.00 $ \r\n \r\n824,595.81 \r\n \r\n11,984,984.69 \r\n \r\n13,153,169.00 \r\n \r\n0.00 -1,168,184.31 \r\n \r\n$ 26,875,649.88 $ \r\n \r\n824,595.81 $ 27,700,245.69 $ 28,868,430.00 $ -1,168,184.31 \r\n \r\n$ 16,572,331.87 244,577.87 \r\n4,394,207.04 $ 4,077,360.12 2,680,052.03 \r\n100,693.19 \r\n \r\n$ 16,572,331.87 $ 16,574,321.00 $ \r\n \r\n244,577.87 \r\n \r\n373,139.00 \r\n \r\n-356,225.00 \r\n \r\n4,037,982.04 4,077,360.12 2,680,052.03 \r\n100,693.19 \r\n \r\n4,203,001.00 4,486,300.00 3,124,658.00 \r\n107,011.00 \r\n \r\n1,989.13 128,561.13 \r\n165,018.96 408,939.88 444,605.97 \r\n6,317.81 \r\n \r\n$ 28,069,222.12 $ \r\n \r\n-356,225.00 $ 27,712,997.12 $ 28,868,430.00 $ _---.:1,~15.:....:5~,4;.:.3::.;2..:;.,88~ \r\n \r\n$ -1,193,572.24 $ \r\n \r\n1,180,820.81 $ ==-1=2=,7=5=1.4,,;;3= \r\n \r\n$ ===-.,;,;12;;;,7..5.:.1.4...3= \r\n \r\n- 25- \r\n \r\n TIDS PAGE LEFT BLANK \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET \r\nLOTIERY 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\nBUDGET \r\n \r\nVARIANCE FAVORABLE (UNFAVORABLE) \r\n \r\n$ \r\n \r\n278,633,00 $ 278,633,00 $ \r\n \r\n..:.;0,..:,.00:.... \r\n \r\nEXPENDITURES \r\nEquipment, Technology and Construction Trust Fund \r\nSpecial Funding Initiatives \r\n \r\n$ \r\n \r\n126,000,00 $ 126,000,00 $ \r\n \r\n152,633,00 \r\n \r\n152,633,00 \r\n \r\n$ \r\n \r\n278,633,00 $ 278,633,00 $ \r\n \r\n0,00 0,00 \r\n.:. ;,0,.:.:00:. . \r\n \r\nExcess of Revenues over Expenditures \r\n \r\n$=======0';;;.;00;;,.. \r\n \r\n$====,;;,;,0';;;.;00;;,.. \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Infonnation, \r\n- 27- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY CHANGES IN INVESTMENT IN PLANT YEAR 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\nPLANT UNEXPENDED \r\n \r\n$ \r\n \r\n468,968,31 \r\n \r\n$ \r\n \r\n469,532,00 \r\n \r\n32,415,671.62 \r\n \r\n945,209,71 \r\n \r\n3,241,158.77 \r\n \r\n881,812.74 \r\n \r\n6,576,693.70 $ \r\n \r\n966,635.37 $ \r\n \r\n77,492.06 \r\n \r\n39,837.08 \r\n \r\n2,718,541.18 \r\n \r\n260,381.93 \r\n \r\n$ \r\n \r\n45,421,033.58 $ 1,227,017.30 $ \r\n \r\n77,492,06 $ ====2,.3.3.==:6=,3:=9=1,.5..3= \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information, \r\n- 28- \r\n \r\n SCHEDULE \"3\" \r\n \r\nADDITIONS \r\nFUNDS RENEWALS AND REPLACEMENTS \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\n$ \r\n \r\n284,409.43 $ \r\n \r\n994,543.27 \r\n \r\n15,953.00 \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\n938,500.31 \r\n \r\n$ \r\n \r\n5,335.60 \r\n \r\n34,634,498.43 \r\n \r\n4,122,971.51 \r\n \r\n43,132.57 \r\n \r\n607,187.87 \r\n \r\n7,112,555.91 \r\n \r\n6,400.00 \r\n \r\n12,350.00 \r\n \r\n2,972,973.11 \r\n \r\n$ \r\n \r\n300,362.43 $ \r\n \r\n994,543.27 $ \r\n \r\n49,532.57 $ \r\n \r\n624,873.47 $ =====4.9..,.7.8.=:1::!:::,4:=99=:.2=:7= \r\n \r\n- 29- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY SCHEDULE OF FUND BALANCES \r\nCURRENT FUNDS AND PLANT FUNDS JUNE 3D. 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 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\nLOTIERYFOR \r\n \r\nAUXILIARY \r\n \r\nEDUCATION \r\n \r\nENTERPRISES \r\n \r\n$ \r\n \r\n55,000.00 \r\n \r\n3,161.15 \r\n \r\n7,321.08 \r\n \r\n$ \r\n \r\n$ \r\n \r\n65,482.23 $ \r\n \r\n$ \r\n \r\n12,869.11 \r\n \r\n717,362.66 \r\n \r\n1,222,906.23 $ \r\n \r\n0.00 0.00 $ \r\n \r\n1,953,138.00 $ \r\n \r\nSTUDENT ACTIVITIES \r\n170,349.55 170,349.55 \r\n \r\n$ \r\n \r\n65,482.23 $ \r\n \r\n0.00 $ \r\n \r\n1,953,138.00 $ ===17=0;,;:,3.4..9....5=5,=: \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 30- \r\n \r\n SCHEDULE \"4\" \r\n \r\nRESTRICTED \r\n \r\nPLANT FUNDS \r\n \r\nUNEXPENDED \r\n \r\nLOTIERYFOR \r\n \r\nRENEWALS 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$ 49,781,499.27 $ 49,781,499.27 \r\n \r\n$ _ _~18:..,:4...:,9~95::..:.:;.;07~ \r\n \r\n$ _........:.;:184:..:...:,9~95::.:..0.:;.;7~ \r\n \r\n$ \r\n \r\n6,208.81 \r\n \r\n______ $ \r\n \r\n$ \r\n \r\n6,208.81 $ \r\n \r\n$ \r\n \r\n184,995.07 $ \r\n \r\n6,208.81 $ \r\n \r\n$ \r\n \r\n86,139.37 \r\n \r\n1,330,873.17 \r\n \r\n$ \r\n \r\n86,139.37 \r\n \r\n12,869.11 \r\n \r\n772,362.66 \r\n \r\n1,330,873.17 \r\n \r\n1,393,255.78 \r\n \r\n3,161.15 \r\n \r\n=.:0.=.:00::.... 0.00 $ _ _-\"'1,...;.41.;..;7..:.;,0:..,:1\"\"'2...;.54\"'- \r\n \r\n13,529.89 0.00 \r\n$ 3,612,191.13 \r\n \r\n0.00 $ \r\n \r\n1,417,012.54 $ 49,781,499.27 $ 53,578,685.47 \r\n \r\n- 31 - \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY RECONCILIATION OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 1998 \r\n \r\nSCHEDULE \"5\" \r\n \r\nTotals per Annual Supplement \r\n \r\nAdjustments \r\n \r\nShared Services on Jointly Staffed Personnel \r\n \r\nGainesville College \r\n \r\nMarler, \r\n \r\nJoan \r\n \r\nGeorgia Southwestem State University \r\n \r\nFore, \r\n \r\nDavid \r\n \r\nJones, \r\n \r\nJoseph \r\n \r\nGeorgia State University \r\n \r\nDay, \r\n \r\nShennan R. \r\n \r\nUniversity of Georgia \r\n \r\nMitchell, \r\n \r\nLawrence \r\n \r\nSALARIES \r\n \r\n$ \r\n \r\n14,319,241.42 $ \r\n \r\nTRAVEL 206,779.59 \r\n \r\n2,000.00 -50.00 -50.00 \r\n171,857.30 -23,011.00 \r\n \r\n$ \r\n \r\n14,469,987,72 $ =======20=6=,7=7=:9,=:59= \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Infonnation. \r\n- 32- \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bn64-b1996-h97","title":"Review report, state of Georgia, North Georgia College and State University, Dahlonega, Georgia, year ended June 30, 1997","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Lumpkin County, Dahlonega, 34.53259, -83.98491"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["1996/1997"],"dcterms_description":["Fiscal year ended June 30, 2000-","Title from cover.","Title fluctuates: Audits conducted \"in accordance with generally accepted auditing standards\" are issued as: Audit report; reviews that are \"substantially less in scope than an audit in accordance with generally accepted auditing standards\" are issued as: Review or Management report or Independent accountant's report on applying agreed-upon procedures","Year ended June 30, 2006."],"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":["North Georgia College \u0026 State University--Appropriations and expenditures","Financial statements--Georgia","Auditors' reports--Georgia"],"dcterms_title":["Review report, state of Georgia, North Georgia College and State University, Dahlonega, 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-bn64-b1996-h97"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bn64-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":"REVIEW REPORT STATE OF GEORGIA NORTH GEORGIA COLLEGE AND STATE UNIVERSITY DAHLONEGA, GEORGIA YEAR ENDED JUNE 30, 1997 \r\nSTATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 WASHINGTON STREET \r\nATLANTA, GEORGIA 30334-8400 \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF 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\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\nSECTIONll AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n 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\nSeptember 16, 1997 \r\n \r\nHonorable Zell Miller, Governor Members ofthe General Assembly of Georgia Members of the Board of Regents of the University System of Georgia \r\nand Honorable Sherman R. Day, Acting President North Georgia College and State University \r\nINDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \r\nLadies and Gentlemen: \r\nWe have reviewed the accompanying financial statements (Exhibits A through D) of North Georgia College and State University as of and for the year ended June 30, 1997, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in these fmancial statements is the representation of the management of North Georgia College and State University. \r\nA review consists principally of inquiries of University personnel and analytical procedures applied to fmancial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. \r\nBased on our review, with the exception of the matters described in the fourth and fifth paragraphs, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with generally accepted accounting principles. \r\nAs disclosed in Note I to the financial statements, generally accepted accounting principles require encumbrances to be recorded as a reservation of fund balance. However, in accordance with Georgia Law and State budgetary policy, management recorded encumbrances as expenditures and liabilities. The effects of this departure from generally accepted accounting principles on the financial statements were not reasonably determinable. \r\n97ARL-67 \r\n \r\n As disclosed in Note I 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 $759,951.39 as of June 30, 1997, and the net change in fund balance for the year ended June 30, 1997, would be decreased by $61,710.98. \r\nOur review was made for the purpose ofexpressing limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with generally accepted accounting principles. The accompanying supplementary information (Exhibits E through G and Schedules 1 through 5) is presented only for supplementary analysis purposes. Such information has been subjected to the inquiries and analytical procedures applied in the review of the financial statements, and except for the effects of the matters discussed in the fourth and fifth paragraphs, we are not aware of any material modifications which should be made thereto. \r\nRespectfully submitted, \r\n~~ \r\nClaude 1. Vickers \r\nState Auditor \r\nCLV:gp 97ARL-67 \r\n \r\n FINANCIAL STATEMENTS - 1- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY COMBINED BALANCE SHEET ALL FUND GROUPS JUNE 30,1997 \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable Inventories Prepaid Items Due from Other Fund Groups Investment in Plant \r\nTotal Assets \r\nLIABILITIES AND FUND BALANCES \r\nLiabilities Accounts Payable Student Deposits Deferred Revenue Tuition and Fees Other Deposits Held in Custody for Others Due to Other Fund Groups \r\nTotal Liabilities \r\nFund Balances U, S. Government Grants Refundable Institutional Loans - Restricted Endowment Net Investment in Plant Restricted Unrestricted \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\nCURRENT FUNDS UNRESTRICTED RESTRICTED \r\n \r\nLOAN FUNDS \r\n \r\n$ 2,561,815,89 $ \r\n \r\n42,704.64 $ \r\n \r\n62,885.91 \r\n \r\n468.75 \r\n \r\n801,724.19 \r\n \r\n312,224.89 \r\n \r\n757,148.66 \r\n \r\n623,652.30 \r\n \r\n61,900.26 \r\n \r\n193,163.39 \r\n \r\n$ 4,242,256.03 $ 354,929.53 $ 820,503.32 \r\n \r\n$ \r\n \r\n610,550.97 \r\n \r\n178,918,03 \r\n \r\n935,827.50 144,934.50 \r\n \r\n$ 193,163.39 \r\n \r\n$ 1,870,231.00 $ 193,163.39 \r\n \r\n$ 695,163.04 125,340.28 \r\n \r\n$ 161,766.14 $ 2,372,025.03 \r\n$ 2,372,025.03 $ 161,766.14 $ 820,503.32 \r\n \r\n$ 4,242,256.03 $ 354,929.53 $ 820,503.32 \r\n \r\nSee Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\nThe notes to the financial statements are an integral part of this statement. \r\n-2- \r\n \r\n EXHISIT\"A\" \r\n \r\nENDOWMENT FUNDS \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$ 315,583.04 $ 1,580,794.95 15,364.50 \r\n \r\n437,517.48 $ \r\n \r\n1,474,805.86 \r\n \r\n$ \r\n \r\n_ _ _ _ _ _ $ 45,421,033.58 \r\n \r\n188,764.11 $ 5,084,076.93 \r\n \r\n1,581,263.70 \r\n \r\n2,300.50 \r\n \r\n1,888,762.74 \r\n \r\n623,652.30 \r\n \r\n61,900.26 \r\n \r\n193,163.39 \r\n \r\n45,421,033.58 \r\n \r\n$ 1,911,742.49 $ 437,517.48 $ \r\n \r\n1,474,805.86 $ 45,421,033.58 $ 191,064.61 $ 54,853,852.90 \r\n \r\n$ 431,296.38 $ \r\n \r\n374,381.08 \r\n \r\n$ 431,296.38 $ \r\n \r\n374,381.08 \r\n \r\n$ \r\n \r\n96,899.49 $ 1,513,127.92 \r\n \r\n178,918.03 \r\n \r\n94,165.12 \r\n \r\n935,827.50 144,934.50 94,165.12 193,163.39 \r\n \r\n$ 191,064.61 $ 3,060,136.46 \r\n \r\n$ 1,911,742.49 \r\n$ $ 1,911,742.49 $ \r\n \r\n6,221.10 $ 6,221.10 $ \r\n \r\n$ 45,421,033.58 1,100,424.78 1,100,424.78 $ 45,421,033.58 \r\n \r\n$ 695,163.04 125,340.28 \r\n1,911,742.49 45,421,033.58 \r\n161,766.14 3,478,670.91 \r\n$ 51.793,716.44 \r\n \r\n$ 1,911,742.49 $ 437,517.48 $ \r\n \r\n1,474,805.86 $ 45,421,033.58 $ 191,064.61 $ 54,853,852.90 \r\n \r\n-3- \r\n \r\n NORTH GEORGIA COLLEGE AND 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\nUnrestrictecl Current Fund Revenues State Appropriations \r\nRegular Lottery Proceeds Federal Grants and Contracts State Grants and Contracts Local Grants and Contracts Privata Gifts, Grants, and Contracts Investment Income Endowment Other Intarest on Loans Receivable Adjustments Prior Years' Expenditures/Accounts Payable Prior Yeers' Checks Voided Expended for Plant Facilities Current Funds Plant Funds \r\nUnexpended Renewals and Replacements Georgia State Financing and Investment Commission Other Additions Insurance Recoveries Late Fees Proceeds from Sale of Plant Assets \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 Yeer's Unrestricted Fund Balance (Surplus) \r\nLoans Assigned to Federal Govemment Loan 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 Investment Income Allocated for Loans Unspent Loan Funds for Principal \r\nNonmandatory Renewals and Replacements Capital Projects General Operations \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\nSee Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\nThe notes to the financial statements are an integral part of this statement. \r\n-4- \r\n \r\nCURRENT FUNDS UNRESTRICTED RESTRICTED \r\n \r\nLOAN FUNDS \r\n \r\n$ 25,833,146.19 \r\n \r\n$ 1,108,101.17 $ 2,561,003.39 116,118.00 276,157.57 \r\n16,870.00 \r\n10,888.24 2,065.05 \r\n \r\n9,167.00 \r\n-1,321.32 \r\n121,524,48 19,122.98 \r\n \r\n1,564.84 $ 25,846,099.48 $ 4,078,250.13 $ 150,057,98 \r\n \r\n$ 20,215,527.73 $ 4,125,689,58 4,369,373.73 6,559,13 \r\n \r\n4,494,79 \r\n \r\n$ \r\n \r\n5,169.00 \r\n \r\n16,976.10 \r\n \r\n15,513.74 \r\n \r\n$ 24,589,396.25 $ 4,132,248.71 $_---'3::.:7...:,6:::5:.:8\"',84~ \r\n \r\n$ \r\n$ -703,588.63 nO,488.26 10,240,16 \r\n$ -1,463,836.73 $ $ -207,133.50 $ \r\n2,579,158.53 \r\n \r\n-279.86 -547.79 $ \r\n \r\n547,79 -121,524,48 \r\n \r\n-10,240.16 \r\n \r\n-11,067.81 $ -120,976.69 \r\n \r\n-65,066.39 $ \r\n \r\n-8,577,55 \r\n \r\n226,832.53 \r\n \r\n829,080.87 \r\n \r\n$ 2,372,025.03 $ 161,766.14 $ 820,503.32 \r\n \r\n EXHIBIT\"B\" \r\n \r\nENDOWMENT FUNDS \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$ 25,833,146.19 \r\n \r\n$ 876,800.00 100,000.00 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n876,800.00 \r\n \r\n100,000.00 \r\n \r\n1,117,268.17 \r\n \r\n2,561,003.39 \r\n \r\n116,118.00 \r\n \r\n$ 22,054.81 \r\n \r\n296,891.06 \r\n \r\n67,344.60 $ \r\n \r\n43,256.50 \r\n \r\n16,870.00 232,125.58 \r\n19,122.98 \r\n \r\n1,717.39 \r\n \r\n7.70 \r\n \r\n12,613.33 2,065.05 \r\n \r\n1,012,405.03 1,012,405.03 \r\n \r\n2,014,267.80 174,712.56 106,439.63 \r\n \r\n2,014,267.80 174,712.56 106,439.63 \r\n \r\n261,621.14 6,624.85 \r\n \r\n261,621.14 1,564.64 6,624.85 \r\n \r\n$ \r\n \r\n0.00 $ 1,314, 107.98 $ \r\n \r\n43,264.20 $ 3,329.879.83 $ 34,761 ,659.60 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n$ 24,341,217.31 4,369,373.73 6,559.13 \r\n \r\n$ \r\n \r\n4,773.62 \r\n \r\n9,268.41 5,169.00 16,976.10 15,513.74 \r\n \r\n2,014,267.80 $ 64,107.34 \r\n \r\n174,712.56 265,894.60 \r\n$ \r\n \r\n138,346.46 \r\n \r\n2,188,980.36 330,001.94 138,346.46 \r\n \r\n$ \r\n \r\n0.00 $ 2,083,148.76 $ \r\n \r\n440,607.16 $ 138,346.46 $ 31.421.406.18 \r\n \r\n$ \r\n \r\n279,86 \r\n \r\n121,524,48 \r\n \r\n$ $ 770,488.26 \r\n \r\n$ 121,804.34 $ $ 121,804.34 $ \r\n1,789,938.15 \r\n \r\n770,488.26 $ 1,447.48 $ 4,773.62 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n703,588.63 \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n703,588.63 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n306,245.67 $ 3,191,533.37 $ 3,340,253.42 \r\n \r\n794,179.11 42,229,500.21 48,453,463.02 \r\n \r\n$ 1,911,742.49 $ \r\n \r\n6,221.10 $ UOO.424.78 $ 45.421,033.58 $ 51 ?93?16.44 \r\n \r\n-5- \r\n \r\n NORTH GEORGIA COLLEGE AND 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\nNet Increase/(Decrease) in Fund Balances \r\n \r\n$ \r\n \r\nSee Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \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-207,133.50 $ \r\n \r\n-65,066.39 $ -272,199.89 \r\n \r\n NORTH GEORGIA COLLEGE AND 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 North Georgia College and 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 ofNorth Georgia College and 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 detennine allotments of State funds to member institutions and the authority to prescribe accounting systems and administrative policies for member institutions. North Georgia College and State University does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, North Georgia College and 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 ofRegents 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 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 fmancial statements, funds that have similar . characteristics have been combined into fund groups. Accordingly, all fmancial 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 fmancial statements are as follows: \r\nCURRENT FUNDS \r\nUNRESTRICTED - The fund used to account for those economic resources over which the University retains full control to use for purposes of performing the primary functions of the University, e.g., instruction, 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 NORTH GEORGIA COLLEGE AND STATE UNIVERSITY NOTES TO THE FWANCIAL STATEMENTS JUNE 30, 1997 \r\n \r\nEXHIBIT\"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTWG POLICIES \r\nFUND ACCOUNTING \r\nLOAN FUNDS \r\nThe fund used to account for resources which have been made available for financial loans to students. \r\nENDOWMENT \r\nThe fund used to account for endowment funds that are subject to the restrictions of gift instruments requiring that the principal be invested in perpetuity and income only be utilized. \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 W PLANT - The fund which shows the total amounts representing the book value of all physical properties owned by the University. Net Investment in Plant is an equity account showing the total book value 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 of accounting, which is materially the same as the accrual basis of accounting applicable to colleges and universities prescribed in the American Institute of Certified Public Accountants' audit guide reporting model. The modified accrual basis ofaccounting is defined as that method ofaccounting in which expenditures, other than accrued interest on general long-term debt, are recorded at the time liabilities are incurred and revenues are recorded when available and measurable to finance expenditures of the fiscal period. \r\nContractual obligations for goods and services which have not been received at the end 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 \r\n-8- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30. 1997 \r\n \r\nEXHIBIT\"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF ACCOUNTING accounting practices prescribed or pennitted 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 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 $759,95 1.39 and the related current year expenditure of$61,710.98 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 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 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 fmancial 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 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- 9- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30. 1997 \r\n \r\nEXlllBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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\nINVESTMENTS Investments are recorded at cost or in the case of gifts at fair market value on the date of the gift. Funds received by the University as endowments or for restricted purposes are invested according to conditions stipulated by the donor, grantor, or in accordance with the Board of Regents authorizing resolutions. Gains and losses on investment transactions are accounted for in the funds where such assets are recorded. \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\nINVENTORIES Inventories of consumable supplies are recorded on the consumption method and are valued at cost on the Combined Balance Sheet using the first-in, first-out method. \r\nInventories of goods for resale are valued at cost using the last-in, first-out method. \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\nMEMORANDUM ONLY - TOTAL COLUMNS The total columns on the financial statements are captioned \"Memorandum Only\" because they do not represent consolidated [mancial 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 of the following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59: \r\n- 10- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1997 \r\n \r\nEXlllBIT \"D\" \r\n \r\nNOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS \r\nSTATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES (1) Bonds, bills, certificates of indebtedness, notes, or other direct obligations of the United States or ofthe 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 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 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\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\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\nCategory 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\nCategory 2 - Amounts collateralized with securities (at market value) held by the pledging fmancial institution's trust department or agent in the University's name. \r\n- 11 - \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1997 \r\n \r\nEXInBIT\"D\" \r\n \r\nNOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS \r\n \r\nCATEGORIZATION OF DEPOSITS Category 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 \r\nBalances \r\n \r\nRisk Categories \r\n \r\n2 \r\n \r\n3 \r\n \r\n$ 44581068 $ 192263895 $ 15298334 $ 1.011 56200 $ 758,09361 \r\n \r\nCATEGORIZATION OF INVESTMENTS Investments are summarized and classified as to custodial credit risk within the three categories described below: \r\n \r\nCategory 1 - Insured or registered, or securities held by the University or its agent in the University's name. \r\n \r\nCategory 2 - Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the University's name. \r\n \r\nCategory 3 - Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent but not in the University's name. \r\n \r\nThe carrying amounts of investment balances as of June 30, 1997, are categorized below: \r\n \r\nType ofInvestment Common Stock State of Georgia Securities U. S. Government Securities \r\nInvestments Not Subject to Categorizations: State Investment Pool \r\nTotal Investments \r\n \r\nRisk Categories 2 \r\n \r\n$ 78,404.40 $ 1,502,390.55 468.75 \r\n \r\n0,00 $ \r\n \r\n$ 158126370 $ \r\n \r\n0.00 $ \r\n \r\nCarrying \r\n \r\nMarket \r\n \r\n3 \r\n \r\nAmount \r\n \r\nValue \r\n \r\n0.00 $ 78,404.40 $ 315,426.25 \r\n \r\n1,502,390.55 1,478,221.00 \r\n \r\n468.75 \r\n \r\n3,153.90 \r\n \r\n000 $ 1,581,263.70 $ 1,796,801.15 \r\n \r\n4,616.571.43 4,616.571.43 $ 619783513 $ 6413 372 58 \r\n \r\nFunds invested in an investment pool managed by another governmental entity are not required to be categorized since the University did not own any specific, identifiable investment securities of the pool. \r\n \r\n- 12- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 1997 \r\n \r\nEXHIBIT\"D\" \r\n \r\nNOTE 3: INVESTMENT IN PLANT \r\n \r\nThe following is a summary of Investment in Plant fixed assets as of June 30, 1997: \r\n \r\nLand Buildings Improvements Other Than Buildings Equipment Library Books and Collections \r\n \r\n$ 468,968.31 32,415,671.62 3,241,158.77 6,576,693.70 2,718,541.18 \r\n \r\nTotal Investment in Plant \r\n \r\n$45.421.033.58 \r\n \r\nNOTE 4: RISK MANAGEMENT \r\n \r\nNorth Georgia College and State University is a participant in the Board of Regents ofthe University System of Georgia Health Benefits Plan, which is a self-insurance program of health and dental benefits for employees and retirees ofthe University System 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 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 $1,000,000.00 per person and dental coverage up to an annual maximum of$I,OOO.OO per person. The Board ofRegents has contracted with Blue Cross Blue Shield of Georgia to process claims in accordance with the Health Benefits Plan as established by the Board of Regents. \r\n \r\nThe Department ofAdministrative Services (DOAS) has the responsibility for the State of Georgia ofmaking and carrying out decisions that will minimize the adverse effects 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\n \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\n \r\n- 13 - \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY \r\nNOTES TO THE FINANCIAL STATEMENTS JUNE 30,1997 \r\n \r\nEXHIBIT\"D\" \r\n \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 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, 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\nNOTE6: RETIREMENT PLANS \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nPlan Description North Georgia College and State University participates in the Teachers Retirement System ofGeorgia (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% ofthe average ofthe member's two consecutive highest paid years of service multiplied by the number ofyears of creditable service up to 40 years. Early retirement benefits are reduced by the lesser of 1/12 of7% 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 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\n- 14- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY \r\nNOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1997 \r\n \r\nEXHlBIT\"D\" \r\n \r\nNOTE6: RETIREMENT PLANS \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nPlan Description Members 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 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 ofTrustees as advised by their independent actuary. For fiscal year 1997, the employer contribution rate was 11.81% for covered employees. In addition, the University contributed 4.24% to the TRS on behalfofemployees 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 $10,054,106.20. The University's total payroll for all employees was $13,727,543.40. \r\nTotal contributions to the plan made during fiscal year 1997 amounted to $1,787,473.18, of which $1,284,767.87 was made by the University and $502,705.31 was made by employees. These contributions represented 12.78% (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,284,767.87 was actuarially determined and represented .1967% 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 TRSBoard 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 \r\n \r\n- 15 - \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNNERSITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30. 1997 \r\n \r\nEXlllBIT \"D\" \r\n \r\nNOTE 6: RETIREMENTPLANS \r\n \r\nREGENTS RETIREMENT PLAN \r\n \r\nFunding Policy 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 $2,296,648.53. The University's total payroll for all employees was $13,727,543.40. \r\n \r\nThe University and the covered employees made the required contributions of $139,023.01 (6.0%) and $114,696.87 (5%), respectively. \r\n \r\nGEORGIA DEFINED CONTRIBUTION PLAN \r\n \r\nPlan Description North Georgia College and State University participates in the Georgia Defmed Contribution Plan (GDCP) which is a single-employer defined contribution plan established by the General Assembly of Georgia for the purpose ofproviding 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. 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\n \r\nThe Employees' Retirement System of Georgia issues a fmancial report each fiscal year which may be \r\n \r\nobtained through ERS. \r\n \r\n. \r\n \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 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 GnCp was $459,811.55. The University's total payroll for all employees was $13,727,543.40. \r\n \r\nTotal contributions made by employees during fiscal year 1997 amounted to $34,486.72 which represents 7.5% of covered payroll. These contributions met the requirements of the plan. \r\n \r\n- 16- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30. 1997 \r\n \r\nEXHIBIT\"D\" \r\n \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. \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 determined at this time although the University expects such amounts, if any, to be immaterial to its overall fmancial position. \r\nLitigation, claims and assessments filed against North Georgia College and State University (an organizational unit of the Board of Regents of the University System of Georgia), if any, are generally considered to be actions against the State of Georgia. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1997. \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 permit 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 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 of June 30, 1997, there were 141 employees who had retired or were disabled that were receiving these postemployment health and life insurance benefits. For the year ended June 30, 1997, North Georgia College and State University recognized as incurred $279,747.60 of expenditures, which was net of $62,504.40 of participant contributions. \r\n \r\n- 17 - \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1997 \r\n \r\nEXHIBIT\"D\" \r\n \r\nNOTE 10: ENROLLMENT \r\n \r\nThe equivalent full-time student emollment ofNorth Georgia College and State University was as follows: \r\n \r\nRegular Term Fall Quarter, 1996 Winter Quarter, 1997 Spring Quarter, 1997 \r\n \r\n2,884 2,889 2,749 \r\n \r\nAverage \r\n \r\nSummer School, 1996 \r\n \r\n- 18 - \r\n \r\n SUPPLEMENTARY INFORMAnON - 19- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY COMBINING BALANCE SHEET \r\nCURRENT FUNDS UNRESTRICTED JUNE 30,1997 \r\n \r\nEXHIBIT\"E\" \r\n \r\nASSETS \r\nCash and Cash EqUivalents Accounts Receivable Inventories Prepaid Items Due from Other Fund Groups \r\n \r\nRESIDENT \r\n \r\nLOTTERY FOR AUXILIARY \r\n \r\nSTUDENT \r\n \r\nINSTRUCTION EDUCATION ENTERPRISES ACTIVITIES \r\n \r\nTOTAL \r\n \r\n$ 455,644.44 $ 571,651.99 51,817.52 44,622,65 193,163,39 \r\n \r\n42,286.01 $ \r\n \r\n1,829,783.37 $ 227,076.45 571,834.78 17,117.63 \r\n \r\n234,102.07 $ 2,995.75 \r\n159.98 \r\n \r\n2,561,815.89 801,724.19 623,652.30 61,900.26 193,163.39 \r\n \r\nTotal Assets \r\n \r\n$ 1,316,899.99 $ \r\n \r\n42,286.01 $ 2,645,812.23 $ 237,257.80 $ 4,242,256.03 \r\n \r\nLIABILITIES AND FUND BALANCES \r\nLiabilities Accounts Payable StUdent Deposits Deferred Revenue Tuition and Fees Other \r\nTotal Liabilities \r\nFund Balances Unrestricted \r\n \r\n$ 487,023.73 $ 755,261.00 \r\n$ 1,242,284.73 $ 74,615,26 \r\n \r\n42,286.01 $ 42,286.01 $ \r\n \r\n37,854.18 $ 43,387.05 $ 610,550.97 \r\n \r\n178,918.03 \r\n \r\n178,918.03 \r\n \r\n180,566.50 88,671.50 \r\n \r\n56,263.00 \r\n \r\n935,827.50 144,934.50 \r\n \r\n486,010.21 $ 99,650.05 $ 1,870,231.00 \r\n \r\n0.00 \r\n \r\n2,159,802.02 \r\n \r\n137,607.75 2,372,025.03 \r\n \r\nTotal Liabilities and Fund Balances \r\n \r\n$ 1,316,899.99 $ \r\n \r\n42,286.01 $ 2,645,812.23 $ 237,257.80 $ 4,242,256.03 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n20 \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY COMBINING STATEMENT OF CHANGES IN FUND BALANCES \r\nCURRENT FUNDS - UNRESTRICTED YEAR ENDED JUNE 30,1997 \r\n \r\nEXHIBIT\"F\" \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 Remittances to the Board of Regents of the \r\nUniversity System of Georgia Prior Year's Unrestricted Fund Balance (Surplus) \r\nTotal Expenditures and Other Deductions \r\nTRANSFERS BETWEEN FUNDS \r\nNonmandatory Renewals and Replacements Capital Projects General Operations \r\nTotal Transfers Between Funds \r\nNet Increase/(Decrease) for the Year \r\nFUND BALANCES JULY 1. 1996 \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$ 19,543,639,19 $ 193,000.00 $ 5,655,918.52 $ 440,588,48 $ 25,833,146,19 \r\n \r\n8,888,96 \r\n \r\n1,990.27 1,705.05 \r\n \r\n9.01 360.00 \r\n \r\n10,888.24 2,065.05 \r\n \r\n$ 19,552,528.15 $ 193,000,00 $ 5,659,613.84 $ 440,957.49 $ 25,846,099.48 \r\n \r\n$ 19,543,479.76 $ \r\n \r\n193,000.00 \r\n \r\n$ 479,047.97 $ 20,215,527.73 \r\n \r\n$ 4,369,373.73 \r\n \r\n4,369,373.73 \r\n \r\n4,494.79 \r\n \r\n4,494.79 \r\n \r\n$ 19,547,974.55 $ 193,000.00 $ 4,369,373.73 $ 479,047.97 $ 24,589,396.25 \r\n \r\n$ \r\n \r\n10,240.16 \r\n \r\n$ \r\n \r\n10,240.16 \r\n \r\n$ \r\n \r\n14,793.76 $ \r\n \r\n59,821.50 \r\n \r\n$ -703,588.63 -770,488.26 \r\n \r\n$ -703,588.63 -770,488.26 10,240.16 \r\n \r\n$ -1 ,474,076.89 \r\n \r\n$ -1 ,463,836.73 \r\n \r\n0.00 $ -183,836.78 $ -38,090.48 $ -207,133.50 \r\n \r\n0.00 \r\n \r\n2,343,638.80 \r\n \r\n175,698.23 \r\n \r\n2,579,158.53 \r\n \r\nFUND BALANCES JUNE 30.1997 \r\n \r\n$ \r\n \r\n74,615.26 $====,,0=.0=0 $ 2,159,802.02 $ 137,607.75 $ 2,372,025.03 \r\n \r\nsee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 21 - \r\n \r\n THIS PAGE LEn BLANK \r\n \r\n NORTH GEORGIA COLLEGE AND 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 Private Gifts, Grants, and Contracts Sales and Services of Educational Activities Sales and Services of Auxiliary Enterprises Other Sources \r\nTotal Revenues \r\nEXPENDITURES \r\nEducational and General Instruction 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 Transfers for General Operations 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\nLOTTERY FOR \r\n \r\nAUXILIARY \r\n \r\nINSTRUCTION EDUCATION ENTERPRISES \r\n \r\nSTUDENT ACTIVITIES \r\n \r\nTOTAL \r\n \r\n$ 13,723,311,00 $ 5,561,390,15 21,698.63 \r\n19,778.57 \r\n217,460.84 \r\n$ 19,543,639,19 $ \r\n \r\n193,000,00 $ \r\n \r\n345,482,00 $ \r\n7,000.00 \r\n4,879,506,89 423,929.63 \r\n \r\n$ 13,916,311,00 \r\n \r\n391,913,40 \r\n \r\n6,298,785.55 \r\n \r\n21,698.63 \r\n \r\n7,000.00 \r\n \r\n19,778.57 \r\n \r\n4,879,506.89 \r\n \r\n48,675.08 \r\n \r\n690,065,55 \r\n \r\n193,000.00 $ 5,655,918.52 $ 440,588.48 $ 25,833,146.19 \r\n \r\n$ 10,888,362.03 $ 2,010,033.66 1,560,017.69 2,896,244.94 1,988,320.44 200,501.00 \r\n$ 19,543,479.76 $ \r\n \r\n162,000.00 31,000.00 \r\n \r\n$ 11,050,362.03 \r\n \r\n2,041,033.66 \r\n \r\n$ 479,047.97 \r\n \r\n2,039,065.66 \r\n \r\n2,896,244.94 \r\n \r\n1,988,320.44 \r\n \r\n200,501.00 \r\n \r\n$ 1,391,098.58 86,809.95 \r\n1,642,113.61 275,475.19 400,922.40 572,954.00 \r\n \r\n1,391,098.58 86,809.95 \r\n1,642,113.61 275,475.19 400,922.40 572,954.00 \r\n \r\n193,000.00 $ 4,369,373.73 $ 479,047.97 $ 24,584,901.46 \r\n \r\n$ \r\n \r\n10,240.16 \r\n \r\n8,888.96 \r\n \r\n-4,494.79 \r\n \r\n$ \r\n \r\n14,634.33 \r\n \r\n$ -703,588.63 -770,488.26 \r\n3,695.32 $ \r\n \r\n$ 369.01 \r\n \r\n-703,588.63 -770,488.26 \r\n10,240.16 12,953.29 \r\n \r\n-4,494.79 \r\n \r\n$ -1,470,381.57 $ \r\n \r\n369.01 $ -1,455,378.23 \r\n \r\nNet Increase/(Decrease) in Fund Balances \r\n \r\n$ \r\n \r\n14,793.76 $ \r\n \r\n0.00 $ -183,836.78 $ -38,090.48 $ -207,133.50 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 23- \r\n \r\n NORTH GEORGIA COLLEGE AND 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$ 13.723.311.00 \r\n \r\n$ \r\n \r\n5.820.328.19 $ 4.125.689.58 \r\n \r\n876,800.00 335.590.59 $ \r\n \r\n4,;:,:3:.1:.2:.:5;.:,6:,:::.50::.. \r\n \r\n- - - - \" ' - - - $ 19,543.639.19 $ 4,125.689.58 $ 1.212,390.59 $ \r\n \r\n43.256.50 \r\n \r\nEXPENDITURES \r\n \r\nPersonal Services: \r\n \r\nEducation, General and Departmental Services $ 15,783.183.32 \r\n \r\nSponsored Operations \r\n \r\n$ 300,485.14 \r\n \r\nOperating Expenses: \r\n \r\nEducation, General and Departmental Services \r\n \r\n3,638,602.84 \r\n \r\nSponsored Operations \r\n \r\n3,825,204.44 \r\n \r\nCapital Outlay \r\n \r\n$ 1,978.375.14 $ \r\n \r\nSpecial Funding Initiative \r\n \r\n121,693.60 \r\n \r\n440,607.16 \r\n \r\n$ 19,543,479.76 $ 4.125.689.58 $ 1,978.375.14 $ _ _....;,44...;.;0;.:.;.6;.;;0..;..;7.~16;.,. \r\n \r\nExcess of Revenues over Expenditures \r\n \r\n$ \r\n \r\n159.43 $ \r\n \r\n..;;;0,;,;;;,0,;,0 $ -765.984.55 $ _ _-\":3;;;,;9.7..3_5.0..;;;;,66\",, \r\n \r\n(1) To eliminate tuition waivers not bUdgeted and to reclassify current year transfers and prior year fund balances bUdgeted as revenues. \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n-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$ 14,600,111.00 10,324,864.86 $ \r\n \r\n$ 14,600,111.00 $ 14,600,111.00 $ \r\n \r\n0.00 \r\n \r\n967,337.92 11,292,202.78 13,293,868.00 \r\n \r\n-2,001,665.22 \r\n \r\n$ 24,924,975.86 $ 967,337.92 $ 25,892,313.78 $ 27,893,979.00 $ -2,001,665.22 \r\n \r\n$ 15,783,183.32 300,485.14 \r\n3,638,602.84 $ 3,825,204.44 2,418,982.30 \r\n121,693.60 \r\n \r\n$ 15,783,183.32 $ 15,816,012.00 $ \r\n \r\n300,485.14 \r\n \r\n537,205.00 \r\n \r\n-200,501.00 \r\n \r\n3,438,101.84 3,825,204.44 2,418,982.30 \r\n121,693.60 \r\n \r\n3,492,804.00 5,068,665.00 2,852,828.00 \r\n126,465.00 \r\n \r\n32,828.68 236,719.86 \r\n54,702.16 1,243,460.56 \r\n433,845.70 4,771.40 \r\n \r\n$ 26,088,151.64 $ -200,501.00 $ 25,887,650.64 $ 27,893,979.00 $ 2,006,328.36 \r\n \r\n$ -1,163,175.78 $ 1,167,838.92 $ \r\n \r\n4,.66..3.....,.1-.4 \r\n \r\n$ _ _...4\",\"\",.6.6.3...1..=4 \r\n \r\n- 25- \r\n \r\n THIS PAGE LEn BLANK \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET \r\nLOTTERY 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\n193,000.00 $ 100,000.00 $ 293,000.00 $ 293,000.00 $ \r\n \r\n....;;o.;.:.o~O \r\n \r\nEXPENDITURES \r\n \r\nEquipment, Technology and Construction \r\n \r\nTrust Fund \r\n \r\n$ \r\n \r\n134,000.00 \r\n \r\n$ 134,000.00 $ 134.000,00 $ \r\n \r\n0.00 \r\n \r\nSpecial Funding Initiatives \r\n \r\n59,000.00 $ 100,000.00 \r\n \r\n159,000.00 159,000.00 \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n193,000.00 $ 100,000.00 $ 293,000.00 $ 293,000.00 $ \r\n \r\n0.00 \r\n \r\nExcess of Revenues over Expenditures \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 27- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY CHANGES IN INVESTMENT IN PLANT YEAR 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\nPLANT UNEXPENDED \r\n \r\n$ 464,9n.55 \r\n \r\n$ \r\n \r\n3,990.76 \r\n \r\n31,076,279.64 \r\n \r\n1,103,523.79 \r\n \r\n2,646,900.01 \r\n \r\n592,603.76 \r\n \r\n5,483,901.95 $ \r\n \r\n791,954.00 $ \r\n \r\n49,715.41 \r\n \r\n314,149.49 \r\n \r\n2,557,441.06 \r\n \r\n169,305.79 \r\n \r\n1.429.83 \r\n \r\n$ 42,229,500.21 $ \r\n \r\n961,259.79 $ \r\n \r\n51,145.24 $ 2,014,267.80 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 28- \r\n \r\n SCHEDULE \"3\" \r\n \r\nADDITIONS \r\nFUNDS RENEWALS AND REPLACEMENTS \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\nPRIVATE GIFTS \r\n \r\nDEDUCTIONS DISPOSALSI DELETIONSI ADJUSTMENTS \r\n \r\nBALANCE JUNE 30, 1997 \r\n \r\n$ 468,968.31 \r\n \r\n$ \r\n \r\n131,083.56 $ \r\n \r\n106,439.63 \r\n \r\n$ \r\n \r\n1,655.00 32,415,671.62 \r\n \r\n-1,655.00 \r\n \r\n3,241,158.n \r\n \r\n43,629.00 \r\n \r\n$ \r\n \r\n15,412.81 \r\n \r\n122,068.96 \r\n \r\n6,576,693.70 \r\n \r\n6,642.00 \r\n \r\n16,2n.50 \r\n \r\n2,718,541.18 \r\n \r\n$ \r\n \r\n174,712.56 $ \r\n \r\n106,439.63 $ \r\n \r\n22,054.81 $ \r\n \r\n138,346.46 $ 45,421,033.58 \r\n \r\n- 29- \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY SCHEDULE OF FUND BALANCES \r\nCURRENT FUNDS AND PLANT FUNDS JUNE 30, 1997 \r\n \r\nRESIDENT INSTRUCTION \r\n \r\nCURRENT FUNDS UNRESTRICTED LOTIERY FOR 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 Intercollegiate Athletics \r\n \r\n$ \r\n \r\n52,328.16 \r\n \r\nFor Inventory Reserve \r\n \r\n$ 55,000.00 \r\n \r\n571,834.78 \r\n \r\nFor Renewals and Replacements Reserve \r\n \r\nFor Subsequent Years' Expenditures \r\n \r\n1,535,639.08 $ 137,607.75 \r\n \r\nFor Uncollectible Accounts \r\n \r\n3,161.15 \r\n \r\nSurplus \r\n \r\nRegular Lottery for Education \r\n \r\n16,454.11 _____ $ \r\n \r\n. ::0:. :.l:'0::::,.0 \r\n \r\n$ 74,615.26 $ \r\n \r\n...::0:.:,:.0=0 $ 2,159,802.02 $ 137,607.75 \r\n \r\n$ 74,615.26 $====0;;,;.0..0... $ 2,159,802.02 $ 137,607.75 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 30- \r\n \r\n SCHEDULE \"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$ 45.421,033.58 $ 45.421,033.58 \r\n \r\n$ \r\n \r\n$ 161,766.14 \r\n \r\n$ \r\n \r\n6,221.10 \r\n \r\n_____ $ \r\n \r\n$ \r\n \r\n$ 161,766.14 $ \r\n \r\n6,221.10 $ \r\n \r\n$ \r\n \r\n78,516.65 \r\n \r\n1,021,908.13 \r\n \r\n$ \r\n \r\n78,516.65 \r\n \r\n52,328.16 \r\n \r\n626,834.78 \r\n \r\n1,021,908.13 \r\n \r\n1,673,246.83 \r\n \r\n3,161.15 \r\n \r\n...:::0,:.:.0.:...0 0.00 $ \r\n \r\n1,100.424.78 \r\n \r\n22,675.21 0.00 \r\n$ 3.478,670.91 \r\n \r\n0.00 $ 1,100.424.78 $ 45.421,033.58 $ 49,061.470.63 \r\n \r\n- 31 - \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY RECONCILIATION OF SALARIES AND TRAVEL YEAR ENDED JUNE 30. 1997 \r\n \r\nSCHEDULE \"5\" \r\n \r\nTotals per Annual Supplement \r\n \r\nAdjustments \r\n \r\nShared Services on Jointly Staffed Personnel \r\n \r\nGainesville College \r\n \r\nMcLeod, \r\n \r\nGlenda \r\n \r\nSauret, \r\n \r\nBelinda \r\n \r\nStrickland, \r\n \r\nBrad \r\n \r\nGeorgia College and State University \r\n \r\nGaddis, \r\n \r\nMarshall \r\n \r\nGeorgia Southwestern State University \r\n \r\nJones, \r\n \r\nJoseph \r\n \r\nRobinson, \r\n \r\nBonnie Jean \r\n \r\nGeorgia State University \r\n \r\nDay, \r\n \r\nSherman R. \r\n \r\nKennesaw State University \r\n \r\nEnter, \r\n \r\nJack \r\n \r\nUniversity of Georgia \r\n \r\nMitchell, \r\n \r\nLawrence \r\n \r\nTotals per Report \r\n \r\nSALARIES \r\n$ 13,603,018.87 $ \r\n \r\nTRAVEL 222,143.14 \r\n \r\n3,229.50 3,229.50 3,229.50 6,847.88 -100.00 -200.00 134,062.15 -4,065.00 -21,709.00 \r\n$ 13,727,543.40 $ 222,143.14 \r\n \r\nDISTRIBUTION BY FUND \r\nCURRENT FUNDS Unrestricted Resident Instruction Regular Special Funding Initiative Lottery for Education EqUipment, Technology and Construction Trust Fund Auxiliary Enterprises Student Activities Restricted Resident Instruction \r\n \r\n$ 12,109,862.22 $ 55,752.69 \r\n1,235,570.08 59,236.01 \r\n267,122.40 \r\n \r\n179,558.39 14,176.77 \r\n123.50 9,052.15 1,492.01 \r\n17,740.32 \r\n \r\n$ 13,727,543.40 $ 222,143.14 \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. \r\n- 32- \r\n \r\n SECTION II AUDlTEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n NORTH GEORGIA COLLEGE AND STATE UNIVERSITY AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\nYEAR 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\n545-96-01 \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\nPRIQR YEAR FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\n545-96-01 \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\n 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