{"response":{"docs":[{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bg6-b2010-h2011","title":"Gordon College, Barnesville, Georgia, independent accountant's report on applying agreed-upon procedures for fiscal year ended June 30, 2011","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Lamar County, Barnesville, 33.05457, -84.15575"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2010/2011"],"dcterms_description":["Began with fiscal year ended June 30, 2000; ceased with year ended June 30, 2011.","Fiscal year ended June 30, 2000 (online surrogate); title from PDF cover (Georgia Government Publications database, viewed August 11, 2017).","Year ended June 30, 2011 (online surrogate); (Georgia Government Publications database, viewed August 11, 2017)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, GA : Georgia. Dept. of Audits and Accounts, 2011"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Gordon College (Barnesville, Ga.)--Appropriations and expenditures","Financial statements--Georgia","Auditors' reports--Georgia"],"dcterms_title":["Gordon College, Barnesville, Georgia, independent accountant's report on applying agreed-upon procedures for fiscal year ended June 30, 2011"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-bg6-b2010-h2011"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bg6-b2010-h2011"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"GORDON COLLEGE \r\nBARNESVILLE, GEORGIA \r\nINDEPENDENT ACCOUNTANT'S \r\nREPORT ON APPLYING AGREED- \r\nUPON PROCEDURES \r\nFOR FISCAL YEAR ENDED \r\nJUNE 30,2011 \r\n-Georgia Depaxtment of Audits andAccounts \r\nLL \r\nState Auditux \r\n \r\n GORDON COLLEGE \r\n- TABLE OF CONTENTS - \r\n \r\nINDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES \r\nEXH IBlTS \r\nA SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT \r\nB STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE \r\nC STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE \r\n \r\nPage \r\n1 2 \r\n \r\n RUSSELLW. HINTON \r\nSTATE AUDITOR \r\n(404) 166-2174 \r\n \r\nDEPARTMENOTF AUDITSAND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-1 56 Atlanta, Georgia 30334-8400 \r\nDecember 1 4 , 2 0 1 1 \r\n \r\nMembers of the State Board of Regents of the UniversitySystem of Georgia \r\nand Honorable Shelley Nickel, Interim President Gordon College \r\nIndependent Accountant's Report on A ~ ~ l y i nARareed-Upon Procedures \r\nLadies and Gentlemen: \r\nWe have performed the procedures enumerated below, which were agreed to by the College and the University System Office (Oversight Unit) of the Board of Regents of the University System of Georgia, solely to assist you in assessing the accuracy of the financial information reported to the University System Office in the College's 2 0 1 1Annual Financial Report for inclusion in the University System of Georgia's Annual Financial Repo/t;the State of Georgia's ComprehensiveAnnual Financial Reptt ((CAFR) and Single Audit Repo/S and to assist you in assessing the accuracy of the budget basis information provided in the Summary Budget Compadmn and Surplus Analysis Report; Siatement of Funds Available \r\nand Expenditures Compared to Budget By Progtam and Funding Source, and the Statement of Changes \r\nTo Fund Balance By P q r a m and Funding Source which are attached as Exhibits A, B and C, respectively. Gordon College's management is responsible for the financial information reported to the University System Office in the College's Annual Financial Report. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of the parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. \r\nThe procedures and the associated findings are as follows: \r\n1. Review selected balance sheet items reported on the Annual Financial Report (cash, accounts receivable, accounts payable, deferred revenues, net assets). Confirm that these items have adequate supporting documentation and are properly reconciled to the College's general ledger. \r\nWe did not note any exceptions as a result of our procedures. \r\n2. Obtain the College's GAAP basis Statement of Net Assets and Statement of Revenues hpenses and Changes in Net Assets (SRECNA) submitted for inclusion in the State's CAFR and Single Audit. Utilizing test scripts, confirm that financial information presented in these statements properly supports activity reported in the College's accounting records. \r\nWe did not note any exceptions as a result of our procedures. \r\n \r\n 3. Obtain the College's Statement of Cash Flows submitted for inclusion in the State's CAFR and Single Audit. Utilizing cash flow worksheets, confirm information reported on Statement of Cash Flows. \r\nWe did not note any exceptions as a result of our procedures. \r\n4. Obtain the College's Notes to the Financial Statements submitted for inclusion in the State's CAFR and Single Audit. Utilizing notes worksheets and other supporting documentation confirm that note disclosures related to Cash, Investments, Accounts Receivable, Capital Assets, LongTerm Debt, Lease Obligations and Retirement Plans have been properly reported. \r\nbceptions were noted as a result of our procedures performed on Notes to the Financial Statements. \r\n- Note l b Detail of Unrestricted Net Assets was correct in total, but R \u0026 R Reserve \r\nwas overstated and Reservefor Encumbranceswas understatedfor $24,980. \r\nNote 11- Retirement Plans Table summarizingthe College's contributions by defined benefit plan had $21,049 for 2009 ERS RequiredContributioninstead of correct amount of $17,792. \r\n5. Review the College's year end GAAP basis journal entries. Obtain documentation for GAAP journal entries and confirm that the entries were posted to the College's Annual Financial Report. \r\nWe did not note any exceptions as a result of our procedures. \r\n6. Confirm that State Appropriation revenues, receivables and remittances of prior year surplus balances have been properly recorded in the College's financial records. Prior year surplus balances should be netted against State Appropriation revenues in the GAAP basis financial statements; however, prior year surplus balances should be reflected as fund balance adjustments on the Budget basis financial statements. \r\nWe did not note any exceptions as a result of our procedures. \r\n7. Obtain listing of write-off requests for accounts receivable less than $3,000.00 for fiscal year 2011. Confirm that these write-off requests have been approved by the State Accounting Officer and have been posted to the College's financial statements. \r\nWe did not note any exceptions as a result of our procedures. \r\n8. Verify that the listing of salaries and travel reported to the Department of Audits is in accordance with O.C.G.A. 50-6-27 and reconciles to amounts recorded in the College's financial statements. \r\nWe did not note any exceptions as a result of our procedures. \r\n \r\n 9. Review year end Budgetary Statements including the Summary Budget Comparison and Surplus Analysjs Report (Exhibit A), Statement of Funds Available and Expenditures Cumpared to Budget By Program and Funding Source (Exhibit 6) and the Statement of Changes To Fund Balance By Program and Funding Source (Exhibit C). Confirm that budget information presented in these statements supports activity reported in the College's accounting records and determine if any budget overexpenditures exist. \r\nA portion of Fiscal Year 2012 activity was incorrectly included in Fiscal Year 2011 Budgetary Statements. Cash was understated by $54,479.62 and Expenditures \r\nwere overstated by $54,479.62. This exception caused Unreserved - Surplus to be \r\nunderstated$10,774.60. Adjusting entrieswere made to correctthe error. \r\n10. Obtain documentation for Budget basis reserves reported by College on the Summary Budget Comparjson and Surplus Analysis Report(Exhibit A). Confirm that the reserves are properly documented, valid and appropriate. \r\nA portion of Fiscal Year 2012 activity was incorrectly included in Fiscal Year 2011 Budgetary Statements. The Reserve for Tuition Carry-Over was understated by $41.442.49. The Reserve for Technology Fees was understated by $2,262.53. An adjustingentry was madeto correctthe error. \r\n11. Review the H.O.P.E. Scholarship Program reconciliation between the College and the Georgia Student Finance Commission. Confirm that information reported to the Georgia Student Finance Commission has been reconciled with H.O.P.E. Scholarship activity reported on the College's financial records. \r\nWe did not note any exceptions as a result of our procedures. \r\n12. Review the Schedule of Expendituresof Federal Awards information submitted by the College for inclusion in the Statewide Single Audit. Confirm that the information is properly presented and supported by the College's accounting records. \r\nWe did not note any exceptions as a result of our procedures. \r\n13. Review capital asset records to ensure that (1)subsidiary ledgers are appropriately reconciled to the ledgers, (2) capitalization thresholds are being properly followed, and (3) a complete annual physical equipment inventory is being conducted and that issues noted during the physical inventory are being properly addressed by management. \r\nWe did not note any exceptions as a result of our procedures. \r\n14. Review bank reconciliations during the year under review to ensure that management is preparing them timely and that reconciling items are being addressed by management timely and in an appropriate manner. \r\nWe did not note any exceptions as a result of our procedures. \r\n15. Review documentation to ensure that all subsidiary modules including BANNER are reconciled to the general ledger at least quarterly in accordance with the Business Procedures Manual Section 10.6.2. and ensure that reconciling items are adequately explained and resolved in a timely manner. \r\nWe did not note any exceptions as a result of our procedures. \r\n \r\n These agreed-upon procedures do not constitute an audit of the financial statements or any part thereof, the objective of which is to express an opinion on the financial statements or a part thereof. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. \r\nThis report is intended solely for the information and use of the specified users listed above and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n~ u s i e lWl . Hinton, CPA, CGFM State Auditor \r\n \r\n EXHIBITS \r\n \r\n GORDON COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT \r\nYEAR ENDEDJUNE 3 0 , 2 0 1 1 \r\n \r\nREVENUES \r\nState Appropriation State General Funds \r\nOther Funds \r\nTotal Revenues \r\nADJUSTMENTS AND PROGRAM TRANSFERS \r\nCARRY-OVER FROM PRIOR YEARS \r\nTransfers from Reserved Fund Balance \r\nTotal Funds Available \r\nEXPENDITURES \r\nTeaching Excess of Funds Available over Expenditures \r\nFUND BALANCE JULY 1 \r\nResewed Unreserved \r\nADJUSTMENTS \r\nPrior Year Payables/Expenditures Unreserved Fund Balance (Surplus) Returned \r\nto Board of Regents - Univers~tySystem Office \r\nYear Ended June 3 0 , 2 0 1 0 Early Return of Surplus in Current Fiscal Year Prior Year Reserved Fund Balance Included in Funds Available FUND BALANCEJUNE 3 0 \r\nSUMMARY OF FUND BALANCE \r\nReserved Department Sales and Services Technology Fees Restr~cted/SponsoredFunds Uncollectible Accounts Receivable fuitlon Carry-Over \r\nTotal Reserved \r\nUnreserved Surplus \r\nTotal Fund Balance \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\nVARIANCE FAVORABLE (UNFAVORABLE) \r\n \r\n GORDON COLLEGE STATEMENT OF FUNDS AVAILABLE AND WPENDITURESCOMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE \r\nYEAR ENDED JUNE 3 0 . 2 0 1 1 \r\n \r\nTeaching State Appropriat~on State General Funds Federal Funds American Recovety and ReinvestmentAct Federal Stabilization Funds Other Funds \r\nTotal Teaching \r\n \r\nOrlgtnal Appropriation \r\n \r\nAmended Appropr~ation \r\n \r\nF~nal Budget \r\n \r\nCurrent Year Revenues \r\n \r\n Funds Available Compared to Budget \r\n \r\nPrior Year \r\n \r\nAdju~tmentsand \r\n \r\nTotal \r\n \r\nCarry-Over \r\n \r\nProgram Transfers Funds Available \r\n \r\nvariance Posltlve (Negative) \r\n \r\nExpenditures Compared to Budget \r\n \r\nVariance \r\n \r\nActual \r\n \r\nPosltlve (Negat~ve) \r\n \r\nExcess (Deficiency) of Funds Available \r\nOver/fUnder) Expenditures \r\n \r\n GORDON COLLEGE STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE \r\nYEAR ENDED JUNE 30,2011 \r\n \r\nTeaching State Appropriation State General Funds Federal Funds American Recovery and Reinvestment Act Federal Stabilization Funds Other Funds \r\nTotal Teachfng \r\nPrior Year Resewes Not Available for Expenditure Uncollectible Accounts Receivable \r\n \r\nB e g n n ~ n gFund Balance/(Deficit) \r\nJuly 1 \r\n \r\nFund Balance Carried Over from \r\nPrior Perfod as Funds Avaflable \r\n \r\nReturn of FfscalYear 2010 \r\nSurplus \r\n \r\nPrfor Period Adjustments \r\n \r\nBudget U n ~Ttotals \r\n \r\n Other Adjustments \r\n \r\nEarly Return F~scaYl ear 2011 \r\nSurplus \r\n \r\nExcess (Deficiency) of Funds Available \r\nOver/(Under) Expenditures \r\n \r\nEndlng Fund Balance/(Defic~t) \r\nJune 3 0 \r\n \r\nAnalysis of Ending Fund Balance \r\n \r\nReserved \r\n \r\nSurplus/(Deficit) \r\n \r\nTotal \r\n \r\nSummary of Endlng Fund Balance Resewed \r\nDepartment Sales and Serv~ces Technology Fees Restrlcted/Sponsored Funds Uncollectible Accounts Receivable Tu~tionCarry-Over Unreserved Surplus \r\nTotal EndingFund Balance June 3 0 \r\n \r\n$ \r\n \r\n100,840.43 \r\n \r\n123.753.04 \r\n \r\n289.907.10 \r\n \r\n54.076.67 \r\n \r\n293.713.57 \r\n \r\n$ \r\n \r\n100.840.43 \r\n \r\n123.753.04 \r\n \r\n289,907.10 \r\n \r\n54.076.67 \r\n \r\n293,713.57 \r\n \r\n$ \r\n \r\n11.952.60 \r\n \r\n11,952.60 \r\n \r\n$ \r\n \r\n- - 862.290.81 $ \r\n \r\n11.952.60 $ \r\n \r\n874,243.41 \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bg6-b2009-h2010","title":"Gordon College, Barnesville, Georgia, independent accountant's report on applying agreed-upon procedures for fiscal year ended June 30, 2010","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Lamar County, Barnesville, 33.05457, -84.15575"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2009/2010"],"dcterms_description":["Began with fiscal year ended June 30, 2000; ceased with year ended June 30, 2011.","Fiscal year ended June 30, 2000 (online surrogate); title from PDF cover (Georgia Government Publications database, viewed August 11, 2017).","Year ended June 30, 2011 (online surrogate); (Georgia Government Publications database, viewed August 11, 2017)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, GA : Georgia. Dept. of Audits and Accounts, 2010"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Gordon College (Barnesville, Ga.)--Appropriations and expenditures","Financial statements--Georgia","Auditors' reports--Georgia"],"dcterms_title":["Gordon College, Barnesville, Georgia, independent accountant's report on applying agreed-upon procedures for fiscal year ended June 30, 2010"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-bg6-b2009-h2010"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bg6-b2009-h2010"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"GORDON COLLEGE \r\nBARNESVILLE, GEORGIA \r\nINDEPENDENT ACCOUNTANT'S \r\nREPORT ON APPLYING AGREED- \r\nUPON PROCEDURES FOR EISCAL YEAR ENDED \r\nJUNE 30,2010 \r\nGeorgia Department of Audits and Hccounts \r\n4i Russell W. Hinton State Auditor I \r\n \r\n GORDON COLLEGE - TABLE OF CONTENTS - \r\nINDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES EXHIBITS \r\nA SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT B STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING \r\nSOURCE COMPARED TO BUDGET \r\n \r\n RUSSELLW. HINTON \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMEONFTAUDITASND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1- 156 \r\nAtlanta, Georgia 30334-8400 \r\nNovember 18,2010 \r\n \r\nMembers of the State Board of Regents of the University System of Georgia Honorable Shelley Nickel, Interim President Gordon College \r\nIndependent Accountant's R e ~ o rotn ADDlvinR Agreed-U~onProcedures \r\nLadies and Gentlemen: \r\nWe have performed the procedures enumerated below, which were agreed to by the College and the University System Office (Oversight Unit) of the Board of Regents of the University System of Georgia, solely to assist you in assessing the accuracy of the financial information reported to the University System Office in the College's 2010 Annual Financial Report for inclusion in the University System of \r\nGeorgia's Annual Financial Report, the State of Georgia's ComprehensiveAnnual Financial Report (CAFR) \r\nand Single Audit Repo/t; and to assist you in assessing the accuracy of the budget basis information provided in the Summary Budget Comparison and Surplus Analysis Report and Statement of Program Revenues and Expenditures by Funding Source Compared to Budget which are attached as Exhibits A and B, respectively. Gordon College's management is responsible for the financial information reported to the University System Office in the College's Annual Financial Report. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of the parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. \r\nThe procedures and the associated findings are as follows: \r\n1. Review selected balance sheet items reported on the Annual Financial Report (cash, accounts receivable, accounts payable, deferred revenues, net assets). Confirm that these items have adequate supporting documentation and are properly reconciled to the College's general ledger. \r\nWe noted exceptions as a result of our procedures performed on the balance sheet \r\nitems. Prepaid Items were understated by $18,512and Accounts Payable was overstated by $5,522due to fiscal year 2011 activity being included on the general \r\nledger. \r\nAdditionally, we noted an overstatement of Accounts Receivable- Other and Deferred Revenue of $4,366. \r\n \r\n 2. Obtain the College's GAAP basis Statement of Net Assets and Statement of Revenues, Expenses and Changes in Net Assets (SRECNA) submitted for inclusion in the State's CAFR and Single Audit. Utilizing test scripts, confirm that financial information presented in these statements properly supports activity reported in the College's accounting records. \r\nImmaterial amounts of fiscal year 2 0 1 1 activity were incorrectly included in the College's Annual Financial Report for fiscal year 2010. Expenses were overstated by $24,034. \r\n3. Obtain the College's Statement of Cash Flows submitted for inclusion in the State's CAFR and Single Audit. Utilizing cash flow worksheets, confirm information reported on Statement of Cash Flows. \r\nWe did not note any exceptionsas a result of our procedures. \r\n4. Obtain the College's Notes to the Financial Statements submitted for inclusion in the State's CAFR and Single Audit. Utilizing notes worksheets and other supporting documentation confirm that note disclosures related to Cash, Investments, Accounts Receivable, Capital Assets, LongTerm Debt, Lease Obligationsand Retirement Plans have been properly reported. \r\nWe did not note any exceptions as a result of our procedures. \r\n5. Review the College's year end GAAP basis journal entries. Obtain documentation for GAAP journal entries and confirm that the entries were posted to the College's Annual Financial Report. \r\nThe GAAP entry related to local grant revenue was not posted correctly. Accounts \r\n- Receivable Other and Deferred Revenue were overstated by $4,366 on the \r\nStatements of Net Assets. \r\n6. Confirm that State Appropriation revenues, receivables and remittances of prior year surplus balances have been properly recorded in the College's financial records. Prior year surplus balances should be netted against State Appropriation revenues in the GAAP basis financial statements; however, prior year surplus balances should be reflected as fund balance adjustments on the Budget basis financial statements. \r\nWe did not note any exceptions as a result of our procedures. \r\n7. Obtain listing of write-off requests for accounts receivable less than $3,000.00 for fiscal year 2010. Confirm that these write-off requests have been approved by the State Accounting Officer and have been posted to the College's financial statements. \r\nWe did not note any exceptions as a result of our procedures. \r\n8. Verify that the listing of salaries, travel, and professional services reported to the Department of Audits is in accordance with O.C.G.A. 50-6-27 and reconciles to amounts recorded in the College's financial statements. \r\nWe did not note any exceptions as a result of our procedures. \r\n \r\n 9. Review year end Budgetary Statements including the Summary Budget Comparison and Surplus Analysis Report (Exhibit A) and Statement of Program Revenues and Expenditures by Funding Source Compared to Budget (Exhibit B). Confirm that budget information presented in these statements supports activity reported in the College's accounting records and determine if any budget overexpenditures exist. \r\nA portion of fiscal year 2011 activity was incorrectly included in fiscal year 2010 Budgetary Statements. Cash was understated by $18,411.12,Prepaid Items were overstated by $174,Accounts Payable was overstated $5,522.00,and Expenditures were overstated by $23,759.12.This exception caused Unreserved - Surplus to be understated by $11,427.12.The College resubmitted the budgetary statements to \r\nBoard of Regents. \r\n10. Obtain documentation for Budget basis reserves reported by College on the Summary Budget Comparison and Surplus Analysis Report (Exhibit A). Confirm that the reserves are properly documented, valid and appropriate. \r\nA portion of fiscal year 2011 activity was incorrectly included in fiscal year 2010 \r\nBudgetary Statements. The reserve for Tuition Carry-Over was understated by \r\n$12,332.The College resubmitted the budgetary statements to Board of Regents. \r\n11.Review the H.O.P.E. Scholarship Program reconciliation between the College and the Georgia Student Finance Commission. Confirm that information reported to the Georgia Student Finance Commission has been reconciled with H.O.P.E. Scholarship activity reported on the College's financial records. \r\nWe did not note any exceptions as a result of our procedures. \r\n12. Review the Schedule of Expenditures of Federal Awards information submitted by the College for inclusion in the Statewide Single Audit. Confirm that the information is properly presented and supported by the College's accounting records. \r\nWe did not note any exceptions as a result of our procedures. \r\n13. Review capital asset records to ensure that (1) subsidiary ledgers are appropriately reconciled to the ledgers, (2) capitalization thresholds are being properly followed, and (3) a complete annual physical equipment inventory is being conducted and that issues noted during the physical inventory are being properly addressed by management. \r\nWe did not note any exceptions as a result of our procedures. \r\n14. Review bank reconciliations during the year under review to ensure that management is preparing them timely and that reconciling items are being addressed by management timely and in an appropriate manner. \r\nWe did not note any exceptions as a result of our procedures. \r\n15. Review documentation to ensure that all subsidiary modules including BANNER are reconciled to the general ledger at least quarterly in accordance with the Business Procedures Manual Section 10.6.2. and ensure that reconciling items are adequately explained and resolved in a timely manner. \r\nWe did not note any exceptions as a result of our procedures. \r\n \r\n These agreed-upon procedures do not constitute an audit of the financial statements or any part thereof, the objective of which is to express an opinion on the financial statements or a part thereof. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. \r\nThis report is intended solely for the information and use of the specified users listed above and is not intended to be and should not be used by anyone other than these specified parties. \r\nRes~ectfullsvubmitted. \r\n~ u d s e lWl . Hinton, CPA, CGFM State Auditor \r\n \r\n EXHIBITS \r\n \r\n GORDON COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT \r\nYEAR ENDED JUNE 30.2010 \r\n \r\nREVENUES \r\nState Appropr~at~on State General Funds \r\nFederal Funds Other Funds \r\nTotal Revenues \r\nCARRY-OVER FROM PRIOR YEAR \r\nTransfer from Reserved Fund Balance \r\nTotal Funds Ava~lable \r\nEXPENDITURES \r\nTeaching \r\nExcess of Funds Ava~lableover Expenditures \r\nFUND BALANCE JULY 1 \r\nReserved Unreserved \r\nADJUSTMENTS \r\nPr~oYr ear Payables/Expend~tures Pr~oYr ear Rece~vables/Revenues Unreserved Fund Balance (Surplus) Returned \r\nto Board of Regents - Unlverslty System Offlce \r\nYear Ended June 30,2009 Early Rern~ttanceof Surplus In Current F~scaYl ear Non-Mandatory Transfers Pr~oYr ear Reserved Fund Balance Included In Funds Ava~lable \r\nFUND BALANCE JUNE 3Q \r\nSUMMARY OF FUND BALANCE \r\nReserved Department Sales and Services Technology Fees Uncollect~bleAccounts Receivable Tu~tionCarry-Over \r\nTotal Reserved \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\nVARIANCE - \r\nFAVORABLE (UNFAVORABLE) \r\n \r\nTotal Fund Balance \r\n \r\n Special Funding Initlativa state npproprlauon State General Funds \r\n \r\nGORDON COLLEGE STATEMENTOF PROGRAM REVENUESAND EXPENDITURES BY FUNDING SOURCE COMPARED TO B U f f i E l \r\nYEAR ENDEDJUNE3O. 2010 \r\n \r\nOrQnal Approprlabon \r\n \r\nFinal Budget \r\n \r\nCurrent Year Revenues \r\n \r\nFunds Available Compared to nudger \r\n \r\nPrior Year carrpover \r\n \r\nTotal ~ u n d~svallable \r\n \r\nVarnance Posltlve (Negat~ve) \r\n \r\nTaachlng State Appropriat~on State General Funds Federal Funds Amerloan Recoveryand ReinvestmentAct of 2009 Federal Stabtltrauon Funds Other Funds \r\nTotal Teach~ng \r\n \r\nGrand Totals -All Programs \r\n \r\n Expendturescnmpared to Budget \r\n \r\nVar~ance \r\n \r\nPositive \r\n \r\nActual \r\n \r\n(Negative) \r\n \r\nActual FundsAw~labls \r\nOver/(lJnder) Expenditures \r\n \r\nPmr Penod bd~ustments \r\n \r\nMher Adjustments \r\n \r\nEarly Rcrn~ttance ofSurplus \r\n \r\nprogram Fund \r\nBalances \r\n \r\nTransfers \r\n \r\nProgram Fund Balances \r\n \r\nResewe \r\n \r\nSurplus \r\n \r\nTotal Fund Balance \r\n \r\nUnexpendsble Reserves Uncollecuble Accounts Rece~vable \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bg6-b2008-h2009","title":"Gordon College, Barnesville, Georgia, independent accountant's report on applying agreed-upon procedures for fiscal year ended June 30, 2009","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Lamar County, Barnesville, 33.05457, -84.15575"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2008/2009"],"dcterms_description":["Began with fiscal year ended June 30, 2000; ceased with year ended June 30, 2011.","Fiscal year ended June 30, 2000 (online surrogate); title from PDF cover (Georgia Government Publications database, viewed August 11, 2017).","Year ended June 30, 2011 (online surrogate); (Georgia Government Publications database, viewed August 11, 2017)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, GA : Georgia. Dept. of Audits and Accounts, 2009"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Gordon College (Barnesville, Ga.)--Appropriations and expenditures","Financial statements--Georgia","Auditors' reports--Georgia"],"dcterms_title":["Gordon College, Barnesville, Georgia, independent accountant's report on applying agreed-upon procedures for fiscal year ended June 30, 2009"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-bg6-b2008-h2009"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bg6-b2008-h2009"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"GORDON COLLEGE \r\nBARNESVILLE, GEORGIA \r\nINDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREEDUPON PROCEDURES FOR FISCAL YEAR ENDED JUNE 30, 2009 \r\nGeorgia Department of Audits and Accounts Russell W. Hinton State Auditor \r\n \r\n GORDON COLLEGE - TABLE OF CONTENTS - \r\n \r\nINDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES \r\n \r\nEXHIBITS \r\n \r\nA SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT \r\n \r\nB STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING \r\n \r\nSOURCE COMPARED TO BUDGET \r\n \r\n2 \r\n \r\n RUSSELL W. HINTON \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nDecember 1, 2009 \r\n \r\nMembers of the State Board of Regents of the University System of Georgia Honorable Lawrence Weill, President Gordon College \r\nIndependent Accountant's Report on Applying Agreed-Upon Procedures \r\nLadies and Gentlemen: \r\nWe have performed the procedures enumerated below, which were agreed to by the College and the University System Office (Oversight Unit) of the Board of Regents of the University System of Georgia, solely to assist you in assessing the accuracy of the financial information reported to the University System Office in the College's 2009 Annual Financial Report for inclusion in the State of Georgia's Comprehensive Annual Financial Report (CAFR) and Single Audit Report; and to assist you in assessing the accuracy of the budget basis information provided in the Summary Budget Comparison and Surplus Analysis Report and Statement ofProgram Revenues and Expenditures by Funding Source Compared to Budget which are attached as Exhibits A and B, respectively. Gordon College's management is responsible for the financial information reported to the University System Office in the College's Annual Financial Report. This agreedupon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of the parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. \r\nThe procedures and the associated findings are as follows: \r\n1. Review selected balance sheet items reported on the Annual Financial Report (cash, accounts receivable, accounts payable, deferred revenues, net assets). Confirm that these items have adequate supporting documentation and are properly reconciled to the College's general ledger. \r\nWe did not note any exceptions as a result of our procedures. \r\n \r\n 2. Obtain the College's GAAP basis Statement of Net Assets and Statement of Revenues Expenses and Changes in Net Assets (SRECNA) submitted for inclusion in the State's CAFR and Single Audit. Utilizing test scripts, confirm that financial information presented in these statements properly supports activity reported in the College's accounting records. \r\nWe did not note any exceptions as a result of our procedures. \r\n3. Obtain the College's Statement of Cash Flows submitted for inclusion in the State's CAFR and Single Audit. Utilizing cash flow worksheets, confirm information reported on Statement of Cash Flows. \r\nWe did not note any exceptions as a result of our procedures. \r\n4. Obtain the College's Notes to the Financial Statements submitted for inclusion in the State's CAFR and Single Audit. Utilizing notes worksheets and other supporting documentation confirm that note disclosures related to Cash, Investments, Accounts Receivable, Capital Assets, Long-Term Debt, Lease Obligations and Retirement Plans have been properly reported. \r\nWe did not note any exceptions as a result of our procedures. \r\n5. Review the College's year end GAAP basis journal entries. Obtain documentation for GAAP journal entries and confirm that the entries were posted to the College's Annual Financial Report. \r\nWe did not note any exceptions as a result of our procedures. \r\n6. Confirm that State Appropriation revenues, receivables and remittances of prior year surplus balances have been properly recorded in the College's financial records. Prior year surplus balances should be netted against State Appropriation revenues in the GAAP basis financial statements; however, prior year surplus balances should be reflected as fund balance adjustments on the Budget basis financial statements. \r\nWe did not note any exceptions as a result of our procedures. \r\n7. Obtain listing of write-off requests for accounts receivable less than $3,000.00 for fiscal year 2009. Confirm that these write-off requests have been approved by the State Accounting Officer and have been posted to the College's financial statements. \r\nWe did not note any exceptions as a result of our procedures. \r\n8. Verify that the listing of salaries, travel, and professional services reported to the Department of Audits is in accordance with O.C.G.A. 50-6-27 and reconciles to amounts recorded in the College's financial statements. \r\nWe did not note any exceptions as a result of our procedures. \r\n \r\n 9. Review year end Budgetary Statements including the Summary Budget Comparison and Surplus Analysis Report (Exhibit A) and Statement of Program Revenues and Expenditures by Funding Source Compared to Budget (Exhibit B). Confirm that budget information presented in these statements supports activity reported in the College's accounting records and determine if any budget overexpenditures exist. \r\n \r\nWe did not note any exceptions as a result of our procedures. \r\n \r\n10. Obtain documentation for Budget basis reserves reported by College on the Summary Budget Comparison and Surplus Analysis Report (Exhibit A). Confirm that the reserves are properly documented, valid and appropriate. \r\n \r\nWe did not note any exceptions as a result of our procedures. \r\n \r\n11. Review the H.O.P.E. Scholarship Program reconciliation between the College and the Georgia Student Finance Commission. Confirm that information reported to the Georgia Student Finance Commission has been reconciled with H.O.P.E. Scholarship activity reported on the College's financial records. \r\n \r\nWe did not note any exceptions as a result of our procedures. \r\n \r\n12. Review the Schedule of Expenditures of Federal Awards information submitted by the College for inclusion in the Statewide Single Audit. Confirm that the information is properly presented and supported by the College's accounting records. \r\n \r\nWe did not note any exceptions as a result of our procedures. \r\n \r\n13. Review capital asset records to ensure that (1) subsidiary ledgers are appropriately reconciled to the ledgers, (2) capitalization thresholds are being properly followed, and (3) a complete annual physical equipment inventory is being conducted and that issues noted during the physical inventory are being properly addressed by management. \r\n \r\nWe did not note any exceptions as a result of our procedures. \r\n \r\n14. Review bank reconciliations during the year under review to ensure that management is \r\n \r\npreparing them timely and that reconciling items are being addressed by management timely \r\n \r\nand in an appropriate manner. \r\n \r\n \r\n \r\nWe did not note any exceptions as a result of our procedures. \r\n \r\n15. Review documentation to ensure that all subsidiary modules including BANNER are reconciled to the general ledger at least quarterly in accordance with BPM 10.6.2. and ensure that reconciling items are adequately explained and resolved in a timely manner. \r\n \r\nWe did not note any exceptions as a result of our procedures. \r\n \r\n These agreed-upon procedures do not constitute an audit of the financial statements or any part thereof, the objective of which is to express an opinion on the financial statements or a part thereof. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. \r\nThis report is intended solely for the information and use of the specified users listed above and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n \r\nRWH:as \r\n \r\n~len ~ - Q Q _ U J . ~ w. Hinton, CPA, CGFM State Auditor \r\n \r\n EXHIBITS \r\n \r\n GORDON COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT \r\nYEAR ENDED JUNE 30, 2009 \r\n \r\nEXHIBIT\"A\" \r\n \r\nREVENUES \r\nState Appropriation State General Funds \r\nFederal Funds Other Funds \r\nTotal Revenues \r\nCARRY-OVER FROM PRIOR YEAR \r\nTransfer from Reserved Fund Balance \r\nTotal Funds Available \r\nEXPENDITURES \r\nSpecial Funding Initiative Teaching \r\nTotal Expenditures \r\nExcess of Funds Available over Expenditures \r\nFUND BALANCE JULY 1 \r\nReserved Unreserved \r\nADJUSTMENTS \r\nPrior Year Payables/Expenditures Unreserved Fund Balance (Surplus) Returned \r\nto Board of Regents - University System Office Year Ended June 30, 2008 \r\nNon-Mandatory Transfers Prior Year Reserved Fund Balance Included in Funds Available \r\nFUND BALANCE JUNE 30 \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\nVARIANCEFAVORABLE (UNFAVORABLE} \r\n \r\n$ 11,873,592.00 $ 11,873,592.00 $ \r\n \r\n121,398.00 \r\n \r\n121,398.00 \r\n \r\n17 786 794.00 \r\n \r\n1615761318.05 \r\n \r\n$ 29,781,784.00 $ 28,571,308.05 $ \r\n \r\n0.00 0.00 -11210,475.95 \r\n-1,210,475.95 \r\n \r\n0.00 \r\n \r\n168,559.30 \r\n \r\n$ 29i181 i784.00 $ 2817391867.35 $ \r\n \r\n1681559.30 -11041,916.65 \r\n \r\n$ \r\n \r\n12,642.00 $ \r\n \r\n12,642.00 \r\n \r\n29?69, 142.00 \r\n \r\n281678,890.60 \r\n \r\n$ 29i781 i784.00 $ 28,6911532.60 $ \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n48,334.75 \r\n \r\n0.00 1,090,251.40 \r\n1,090,251.40 \r\n \r\n196,153.32 4,143.06 \r\n \r\n6,275.36 \r\n \r\n-4,143.06 189,067.00 -168,559.30 \r\n \r\n$ \r\n \r\n2711271.13 \r\n \r\nSUMMARY OF FUND BALANCE \r\nReserved Departmental Sales and Services Technology Fees Restricted/Sponsored Funds Uncollectible Accounts Receivable Tuition Carry-Over \r\nTotal Reserved \r\nUnreserved Surplus \r\nTotal Fund Balance \r\n \r\n$ \r\n \r\n32,088.08 \r\n \r\n6,156.05 \r\n \r\n-1,844.54 \r\n \r\n21,890.75 \r\n \r\n204i749.86 \r\n \r\n$ \r\n \r\n263,040.20 \r\n \r\n8,230.93 \r\n \r\n$ \r\n \r\n271,271.13 \r\n \r\n-1- \r\n \r\n GORDON COLLEGE STATEMENT OF PROGRAM REVENUES ANO EXPENDITURES BY FUNDING SOURCE COMPARED TO BUDGET \r\nYEAR ENDED JUNE 30, 2009 \r\n \r\nSpecial Funding Initiative State Appropriation State General Funds \r\n \r\nOriginal Appropriation \r\n \r\nFinal Budget \r\n \r\nFunds Available Com11ared to Budget \r\n \r\nCurrent Year Revenues \r\n \r\nPrior Year Carry-Over \r\n \r\nTotal Funds Available \r\n \r\nVariance Positive {Negative) \r\n \r\n$ \r\n \r\n18 359.00 $ \r\n \r\n12 642.00 $ \r\n \r\n121642.00 $ \r\n \r\n0.00 $ \r\n \r\n12,642.00 \r\n \r\n0.00 \r\n \r\nTeaching State Appropriation State General Funds Federal Funds American Recovery and Reinvestment Act of 2009 Federal Stabilization Funds Other Funds \r\nTotal Teaching \r\n \r\n13,495,559.00 $ 11,860,950.00 $ 11,860,950.00 $ \r\n \r\n0.00 $ 11,860,950.00 $ \r\n \r\n0.00 \r\n \r\n0.00 11 987143.00 \r\n \r\n121,398.00 17 786 794.00 \r\n \r\n$ 25 482 702.00 $ 29,769 142.00 \r\n \r\n121,398.00 16 576 318.05 \r\n \r\n0.00 168 559.30 \r\n \r\n28 558 666.05 $ 168.559.30 $ \r\n \r\n121,398.00 16 744 877.35 \r\n \r\n0.00 -1,041,916.65 \r\n \r\n28 727 225.35 $ -1 041 916.65 \r\n \r\nGrand Totals - All Programs \r\n \r\n$ 25,501,061.00 $ 29,781,784.00 $ 28,571,308.05 $ 168,559.30 $ 28,739,867.35 $ -1,041,916.65 \r\n \r\n-2- \r\n \r\n EXHIBIT\"B\" \r\n \r\nExpenditures Compared to Budget \r\n \r\nVariance \r\n \r\nPositive \r\n \r\nActual \r\n \r\n/Negative) \r\n \r\nActual Funds Available \r\nOver/(Under) Expenditures \r\n \r\nPrior Period Adjustments \r\n \r\nOther Adjustments \r\n \r\nProgram Fund \r\nBalances \r\n \r\n~ \r\n \r\nProgram Fund Balances \r\n \r\nReserve \r\n \r\n~ \r\n \r\nTotal Fund Balance \r\n \r\n12 642.00 $ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\no.oo $ \r\n \r\no.oo $=~====o=.o=o s ~ s===,,~o~.o=o s~ s~===o=.oo= \r\n \r\n$ 12,048,940.02 $ \r\n \r\n-187,990.02 $ \r\n \r\n187,990.02 $ \r\n \r\n6,275.36 $ 189,067.00 $ 7,352.34 $ \r\n \r\n0.00 $ \r\n \r\n0.00 $ 7,352.34 $ 7,352.34 \r\n \r\n121,398.00 16 508 552.58 \r\n28 678 890.60 $ \r\n \r\n0.00 1278241.42 \r\n1090251.40 $ \r\n \r\n0.00 236 324.77 \r\n48,334.75 \r\n \r\n0.00 0.00 \r\n6 275.36 \r\n \r\n0.00 5 703.27 \r\n194.770.27 \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n242 028.04 ...._._Q_\u0026Q_ \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n241 149.45 ~ \r\n \r\n0.00 242 028.04 \r\n \r\n249 380.38 $ ~ $ 241 149.45 $ 8 230.93 $ 249 380.38 \r\n \r\n$ 28,691,532.60 $ \r\n \r\n1 090,251.40 $ \r\n \r\n48,334.75 $ \r\n \r\n6,275.36 $ 194,77027 $ 249,380.38 $ ~ $ 241,149.45 $ 8,230.93 $ 249,380.38 \r\n \r\nUnexpendable Reserves Uncollectable Accounts Receivable \r\n \r\n21 890.75 271 271.13 \r\n \r\n- 3- \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bg6-b2007-h2008","title":"Gordon College, Barnesville, Georgia, independent accountant's report on applying agreed-upon procedures for the fiscal year ended June 30, 2008","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Lamar County, Barnesville, 33.05457, -84.15575"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2007/2008"],"dcterms_description":["Began with fiscal year ended June 30, 2000; ceased with year ended June 30, 2011.","Fiscal year ended June 30, 2000 (online surrogate); title from PDF cover (Georgia Government Publications database, viewed August 11, 2017).","Year ended June 30, 2011 (online surrogate); (Georgia Government Publications database, viewed August 11, 2017)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, GA : Georgia. Dept. of Audits and Accounts, 2008"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Gordon College (Barnesville, Ga.)--Appropriations and expenditures","Financial statements--Georgia","Auditors' reports--Georgia"],"dcterms_title":["Gordon College, Barnesville, Georgia, independent accountant's report on applying agreed-upon procedures for the fiscal year ended June 30, 2008"],"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-bg6-b2007-h2008"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bg6-b2007-h2008"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS \r\nGORDON COLLEGE BARNESVILLE, GEORGIA \r\nINDEPENDENT ACCOUNTANTS REPORT ON APPLYING AGREED-UPON PROCEDURES \r\nFOR THE FISCAL YEAR ENDED JUNE 30, 2008 \r\nRussell W. Hinton State Auditor \r\n \r\n GORDON COLLEGE - TABLE OF CONTENTS - \r\n \r\nINDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES \r\n \r\nEXHIBITS \r\n \r\nA SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT \r\n \r\n1 \r\n \r\nB STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING \r\n \r\nSOURCECOMPAREDTOBUDGET \r\n \r\n2 \r\n \r\n RUSSELL W. HINTON \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nDecember 8, 2008 \r\n \r\nMembers ofthe State Board of Regents of the University System of Georgia Honorable Lawrence Weill, President Gordon College \r\nIndependent Accountant's Report on Applying Agreed-Upon Procedures \r\nLadies and Gentlemen: \r\nWe have performed the procedures enumerated below, which were agreed to by the College and the University System Office (Oversight Unit) of the Board of Regents of the University System of Georgia, solely to assist you in assessing the accuracy of the financial information reported to the University System Office in the College's 2008 Annual Financial Report for inclusion in the State of Georgia's Comprehensive Annual Financial Report (CAFR) and Single Audit Report; and to assist you in assessing the accuracy of the budget basis information provided in the Summary Budget Comparison and Surplus Analysis Report and Statement ofProgram Revenues andExpenditures by Funding Source Compared to Budget which are attached as Exhibits A and B, respectively. Gordon College's management is responsible for the financial information reported to the University System Office in the College's Annual Financial Report. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute ofCertified Public Accountants. The sufficiency of these procedures is solely the responsibility of the parties specified in this report. Consequently, we make no representation regarding the sufficiency ofthe procedures described below either for the purpose for which this report has been requested or for any other purpose. \r\nThe procedures and the associated findings are as follows: \r\n1. Review selected balance sheet items reported on the Annual Financial Report (cash, accounts receivable, accounts payable, deferred revenues, net assets). Confirm that these items have adequate supporting documentation and are properly reconciled to the College's general ledger. \r\nWe did not note any exceptions as a result of our procedures. \r\n \r\n 2. Obtain the College's GAAP basis Statement ofNet Assets and Statement ofRevenues, Expenses and Changes in Net Assets (SRECNA) submitted for inclusion in the State's CAFR and Single Audit. Utilizing test scripts, confirm that financial information presented in these statements properly supports activity reported in the College's accounting records. \r\nThe College incorrectly classified a grant in the amount of$18,752.91 as Federal revenue instead of Other revenue on the SRECNA. \r\n3. Obtain the College's Statement of Cash Flows submitted for inclusion in the State's CAFR and Single Audit. Utilizing cash flow worksheets, confirm information reported on Statement of Cash Flows. \r\nWe did not note any exceptions as a result of our procedures. \r\n4. Obtain the College's Notes to the Financial Statements submitted for inclusion in the State's CAFR and Single Audit. Utilizing notes worksheets and other supporting documentation confirm that note disclosures related to Cash, Investments, Accounts Receivable, Capital Assets, Long-Term Debt, Lease Obligations and Retirement Plans have been properly reported. \r\nWe did not note any exceptions as a result of our procedures. \r\n5. Review the College's year end GAAP basis journal entries. Obtain documentation for GAAP journal entries and confirm that the entries were posted to the College's Annual Financial Report. \r\nWe did not note any exceptions as a result of our procedures. \r\n6. Confirm that State Appropriation revenues, receivables and remittances of prior year surplus balances have been properly recorded in the College's financial records. Prior year surplus balances should be netted against State Appropriation revenues in the GAAP basis financial statements; however, prior year surplus balances should be reflected as fund balance adjustments on the Budget basis financial statements. \r\nWe did not note any exceptions as a result of our procedures. \r\n7. Obtain listing of write-off requests for accounts receivable less than $3,000.00 for fiscal year 2008. Confirm that these write-offrequests have been approved by the State Accounting Officer and have been posted to the College's financial statements. \r\nWe did not note any exceptions as a result of our procedures. \r\n8. Verify that the listing of salaries, travel, and professional services reported to the Department of Audits is in accordance with O.C.G.A. 50-6-27 and reconciles to amounts recorded in the College's financial statements. \r\nWe did not note any exceptions as a result of our procedures. \r\n \r\n 9. Review year end Budgetary Statements including the Summary Budget Comparison andSurplus Analysis Report (Exhibit A) and Statement ofProgram Revenues and Expenditures by Funding Source Compared to Budget (Exhibit B). Confirm that budget information presented in these statements supports activity reported in the College's accounting records and determine if any budget overexpenditures exist. \r\nThe College's budget comparison reflected an overexpenditure of$4,551,196.38 in Teaching. This was due to the College's failure to budget Georgia State Financing and Investment Commission (GSFIC) activity. See Exhibits A and B. \r\nI0. Obtain documentation for Budget basis reserves reported by the College on the Summary Budget Comparison and Surplus Analysis Report (Exhibit A). Confirm that the reserves are properly documented, valid and appropriate. \r\nWe did not note any exceptions as a result of our procedures. \r\nII. Review the H.0 .P.E. Scholarship Program reconciliation between the College and the Georgia Student Finance Commission. Confirm that information reported to the Georgia Student Finance Commission has been reconciled with H.O.P.E. Scholarship activity reported on the College's financial records. \r\nWe did not note any exceptions as a result of our procedures. \r\nI2. Review the Schedule ofExpenditures of Federal Awards information submitted by the College for inclusion in the Statewide Single Audit. Confirm that the information is properly presented and supported by the College's accounting records. \r\nThe College's Schedule ofExpenditures ofFederal Awards (SEFA) submitted to the State Accounting Office for inclusion in the Statewide Single Audit did not agree with the Federal expenditure activity reflected on the College's accounting records. The College failed to include $9,000.00 in Federal Work Study program expenditures on the SEFA. This omission was corrected by our department. \r\nI3. Review capital asset records to ensure that (I) subsidiary ledgers are appropriately reconciled to the ledgers, (2) capitalization thresholds are being properly followed, and (3) a complete annual physical equipment inventory is being conducted and that issues noted during the physical inventory are being properly addressed by management. \r\nWe did not note any exceptions as a result of our procedures. \r\nI4. Review bank reconciliations during the year under review to ensure that management is preparing them timely and that reconciling items are being addressed by management timely and in an appropriate manner. \r\nWe did not note any exceptions as a result of our procedures. \r\n \r\n These agreed-upon procedures do not constitute an audit of the financial statements or any part thereof, the objective ofwhich is to express an opinion on the financial statements or a part thereof. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. \r\nThis report is intended solely for the information and use of the specified users listed above and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n~--- mv\\)4~ \r\nR~nton, CPA, CGFM \r\nState Auditor \r\nRWH:gp \r\n \r\n EXHIBITS \r\n \r\n GORDON COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT \r\nYEAR ENDED JUNE 30, 2008 \r\n \r\nEXHIBIT\"A\" \r\n \r\nREVENUES \r\n \r\nState Appropriation \r\n \r\nState General Funds \r\n \r\n$ \r\n \r\nOther Funds \r\n \r\nTotal Revenues \r\n \r\n$ \r\n \r\nCARRY-OVER FROM PRIOR YEAR \r\n \r\nTransfer from Reserved Fund Balance \r\n \r\nTotal Funds Available \r\n \r\n$ \r\n \r\nEXPENDITURES \r\n \r\nSpecial Funding Initiatives \r\n \r\n$ \r\n \r\nTeaching \r\n \r\nTotal Expenditures \r\n \r\n$ \r\n \r\nExcess of Funds Available over Expenditures \r\n \r\n$ \r\n \r\nFUND BALANCE JULY 1 \r\n \r\nReserved Unreserved \r\n \r\nADJUSTMENTS \r\n \r\nPrior Year Payables/Expenditures Prior Year Receivables/Revenues Unreserved Fund Balance (Surplus) Returned \r\nto Board of Regents - University System Office Year Ended June 30, 2007 \r\nPrior Year Reserved Fund Balance Included in Funds Available Non-Mandatory Transfers \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\nBUDGET \r\n13,089,350.00 $ 10,343,266.00 23,432,616.00 $ \r\n0.00 23,432,616.00 $ \r\n16,263.00 $ 23,416,353.00 23,432,616.00 $ \r\n0.00 $ \r\n$ \r\n \r\nACTUAL \r\n \r\nVARIANCEFAVORABLE (UNFAVORABLE) \r\n \r\n13,089,350.00 $ 14,804,195.15 \r\n27,893,545.15 $ \r\n \r\n0.00 4,460,929.15 \r\n4,460,929.15 \r\n \r\n56,237.90 27,949,783.05 $ \r\n \r\n56,237.90 4,517,167.05 \r\n \r\n16,263.00 $ 27,967,549.38 \r\n27,983,812.38 $ \r\n-34,029.33 $ \r\n \r\n0.00 -4,551,196.38 \r\n-41551 I196.38 \r\n-34,029.33 \r\n \r\n97,430.90 9,900.11 \r\n \r\n1,961.71 2,104.00 \r\n-9,900.11 -56,237.90 189 067.00 \r\n200,296.38 \r\n \r\nSUMMARY OF FUND BALANCE \r\nReserved Departmental Sales and Services Technology Fees Uncollectible Accounts Receivable Tuition Carry-Over \r\nTotal Reserved \r\nUnreserved Surplus \r\n \r\n$ \r\n \r\n11,920.08 \r\n \r\n41,118.88 \r\n \r\n27,594.02 \r\n \r\n115,520.34 \r\n \r\n$ \r\n \r\n196,153.32 \r\n \r\n4 143.06 \r\n \r\nTotal Fund Balance \r\n \r\n$ ===20=0\u0026,2=96=.3=8= \r\n \r\n- 1- \r\n \r\n GORDON COLLEGE STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING SOURCE COMPARED TO BUDGET \r\nYEAR ENDED JUNE 30, 2008 \r\n \r\nSpecial Funding Initiative \r\nState Appropriation State General Funds \r\n \r\nOriginal Appropriation \r\n \r\nFinal Budget \r\n \r\nFunds Available Comeared to Budget \r\n \r\nCurrent Year Revenues \r\n \r\nPrior Year Carry-Over \r\n \r\nTotal Funds Available \r\n \r\nVariance Positive (Negative) \r\n \r\n$ \r\n \r\n16,263.00 $ \r\n \r\n16,263.00 $ \r\n \r\n16,263.00 $ \r\n \r\n0.00 $ \r\n \r\n16,263.00 $ \r\n \r\n0.00 \r\n \r\nTeaching State Appropriation State General Funds Other Funds \r\nTotal Teaching \r\n \r\n$ 12,786,143.00 $ 13,073,087.00 $ 13,073,087.00 $ \r\n \r\n0.00 \r\n \r\n9,814,580.00 \r\n \r\n10,343,266.00 \r\n \r\n14 804 195.15 \r\n \r\n56,237.90 \r\n \r\n$ 22,600:123.00 \r\n \r\n23,416,353.00 $ 27,877 282.15 $ 56,237.90 $ \r\n \r\n13,073,087.00 $ \r\n \r\n0.00 \r\n \r\n14,860,433.05 4 517167.05 \r\n \r\n27,933,520.05 $ 4 517 167.05 \r\n \r\nGrand Totals  All Programs \r\n \r\n$ 22,616,986.00 $ 23,432,616.00 $ 27,893,545.15 $ 56,237.90 $ 27,949,783.05 $ 4,517,167.05 \r\n \r\n2 \r\n \r\n EXHIBIT\"B\" \r\n \r\nExpenditures Compared to Budget \r\n \r\nVariance \r\n \r\nPositive \r\n \r\nActual \r\n \r\n(Negative) \r\n \r\nActual Funds Available \r\nOver/(Under) Expenditures \r\n \r\nPrior Period Adjustments \r\n \r\nOther Adjustments \r\n \r\nProgram Fund \r\nBalances \r\n \r\nTransfers \r\n \r\nProgram Fund Balances \r\n \r\nReserve \r\n \r\n~ \r\n \r\nTotal Fund Balance \r\n \r\n16,263.00 $ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n0.00 $ ~$ \r\n \r\n0.00 \r\n \r\n13,288,112.29 $ 14 679 437.09 \r\n$ 27,967,549.38 \r\n \r\n-215,025.29 $ -4 336 171.09 \r\n-4 551196.38 \r\n \r\n-215,025.29 $ 180 995.96 \r\n-34 029.33 $ \r\n \r\n0.00 $ 189,067.00 $ -25,958.29 $ 25,958.29 $ \r\n \r\n4 065.71 \r\n \r\n13 598.98 198,660.65 -25,958.29 \r\n \r\n4 065.71 $ 202,665.98 172,702.36 $ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\n168,559.30 4 143.06 \r\n \r\n172 702.36 \r\n \r\n168,559.30 $ 4 143.06 $ 172,702.36 \r\n \r\n$ 27,983,812.38 $ -4,551,196.38 $ \r\n \r\n-34,029.33 $ \r\n \r\n4,065.71 $ 202,665.98 $ 172,702.36 $ \r\n \r\n0.00 $ 168,559.30 $ ~$ 172,702.36 \r\n \r\nUnexpendable Reserves Uncollectible Accounts Receivable \r\n \r\n27 594.02 200,296.38 \r\n \r\n-3- \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bg6-b2006-h2007","title":"Gordon College, Barnesville, Georgia, independent accountant's report on applying agreed-upon procedures for the fiscal year ended June 30, 2007","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Lamar County, Barnesville, 33.05457, -84.15575"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2006/2007"],"dcterms_description":["Began with fiscal year ended June 30, 2000; ceased with year ended June 30, 2011.","Fiscal year ended June 30, 2000 (online surrogate); title from PDF cover (Georgia Government Publications database, viewed August 11, 2017).","Year ended June 30, 2011 (online surrogate); (Georgia Government Publications database, viewed August 11, 2017)."],"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":["Gordon College (Barnesville, Ga.)--Appropriations and expenditures","Financial statements--Georgia","Auditors' reports--Georgia"],"dcterms_title":["Gordon College, Barnesville, Georgia, independent accountant's report on applying agreed-upon procedures for the fiscal year ended June 30, 2007"],"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-bg6-b2006-h2007"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bg6-b2006-h2007"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS \r\nGORDON COLLEGE BARNESVILLE, GEORGIA \r\nINDEPENDENT ACCOUNTANTS REPORT ON APPLYING AGREED-UPON PROCEDURES \r\nFOR THE FISCAL YEAR ENDED JUNE 30, 2007 \r\nRussell W. Hinton State Auditor \r\n \r\n GORDON COLLEGE - TABLE OF CONTENTS - \r\nINDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES EXHIBIT \r\nA BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT \r\n \r\n RUSSELL W. HINTON \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nNovember 20, 2007 \r\n \r\nMembers of the Board of Regents of the University System of Georgia Honorable Lawrence Weill, President Gordon College \r\nIndependent Accountant's Report on Applying Agreed-Upon Procedures \r\nLadies and Gentlemen: \r\nWe have performed the procedures enumerated below, which were agreed to by the College and the University System Office (Oversight Unit) of the Board of Regents of the University System of Georgia, solely to assist you in assessing the accuracy of the financial information reported to the University System Office in the College's 2007 Annual Financial Report for inclusion in the State of Georgia's Comprehensive Annual Financial Report (CAFR) and Single Audit Report; and to assist you in assessing the accuracy of the budget basis information provided in the Budget Comparison and Surplus Analysis Report, which is attached as Exhibit A. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of the parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. \r\n1. Review selected balance sheet items reported on the Annual Financial Report (cash, accounts receivable, accounts payable, deferred revenues, net assets). Confirm that these items have adequate supporting documentation and are properly reconciled to the College's general ledger. \r\nWe did not note any exceptions as a result of our procedures. \r\n \r\n 2. Obtain the College's GAAP basis Statement of Net Assets and Statement of Revenues, Expenses and Changes in Net Assets (SRECNA) submitted for inclusion in the State's CAFR and Single Audit. Utilizing test scripts, confirm that financial information presented in these statements properly supports activity reported in the College's accounting records. \r\nWe did not note any exceptions as a result of our procedures. \r\n3. Obtain the College's Statement of Cash Flows submitted for inclusion in the State's CAFR and Single Audit. Utilizing cash flow worksheets, confirm information reported on Statement of Cash Flows. \r\nWe did not note any exceptions as a result of our procedures. \r\n4. Obtain the College's Notes to the Financial Statements submitted for inclusion in the State's CAFR and Single Audit. Utilizing notes worksheets and other supporting documentation confirm that note disclosures related to Cash, Investments, Accounts Receivable, Capital Assets, Long-Term Debt, Lease Obligations and Retirement Plans have been properly reported. \r\nWe did not note any exceptions as a result of our procedures. \r\n5. Review the College's year end GAAP basis journal entries. Obtain documentation for GAAP journal entries and confirm that the entries were posted to the College's Annual Financial Report. \r\nWe did not note any exceptions as a result of our procedures. \r\n6. Confirm that State Appropriation revenues, receivables and remittances ofprior year surplus balances have been properly recorded in the College's financial records. Prior year surplus balances should be netted against State Appropriation revenues in the GAAP basis financial statements; however, prior year surplus balances should be reflected as fund balance adjustments on the Budget basis financial statements. \r\nWe did not note any exceptions as a result of our procedures. \r\n7. Obtain listing ofwrite-offrequests for accounts receivable less than $3,000.00 for fiscal year 2007. Confirm that these write-off requests have been approved by the State Accounting Officer and have been posted to the College's financial statements. \r\nThe College wrote off accounts receivable of $99,709.73 with write-off request approval from the State Accounting Office. However, the College was unable to provide documentation to support that due diligence bad been performed on $14,955.65 of these accounts receivable. The College should reinstate these accounts receivable within the College's accounting records and write them off only after adequate due diligence bas been performed. \r\n \r\n 8. Verify that the listing ofsalaries, travel, and per diem and fees reported to the Department of Audits is in accordance with O.C.G.A. 50-6-27 reconciles to amounts recorded in the College's financial statements. \r\nWe did not note any exceptions as a result of our procedures. \r\n9. Review year end Budgetary Statements including the Budget Comparison and Surplus Analysis Report (Exhibit A). Confirm that budget information presented in these statements supports activity reported in the College's accounting records and determine if any budget overexpenditures exist. \r\nThe College's budget comparison reflected an overexpenditure of$106,479.48 in Teaching Expenditures. See Exhibit A. \r\n10. Obtain documentation for Budget basis reserves reported by College on the Budget Comparison and Surplus Analysis Report (Exhibit A). Confirm that the reserves are properly documented, valid and appropriate. \r\nThe College's reserve for Inventories was improperly calculated. The reserve was in excess of the quarterly average inventory balance by $8,297.31. \r\n11. Review the H.O.P.E. Scholarship Program reconciliation between the College and the Georgia Student Finance Commission. Confirm that information reported to the Georgia Student Finance Commission has been reconciled with H.O.P.E. Scholarship activity reported on the College's financial records. \r\nWe did not note any exceptions as a result of our procedures. \r\n12. Review the Schedule of Expenditures of Federal Awards information submitted by the College for inclusion in the Statewide Single Audit. Confirm that the information is properly presented and supported by the College's accounting records. \r\nThe College's Schedule ofExpenditures ofFederal Awards information did not agree with the Federal expenditure activity reflected on the College's accounting records. The College failed to report a Federal Highway Safety Grant with expenditures of $10,290.23 and a refund of $6,738.87, related to Pell Grant activity on the Schedule of Expenditures of Federal Awards (SEFA). Additionally, nonmonetary activity of $4,729,252.43 related to the Federal Family Education Loans Program (CFDA 84.032) was not reported on the SEFA. The College's SEFA information was corrected to properly reflect this activity. \r\nThese agreed-upon procedures do not constitute an audit of the financial statements or any part thereof, the objective ofwhich is to express an opinion on the financial statements or a part thereof. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. \r\n \r\n This report is intended solely for the information and use of the specified users listed above and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n~~~ \r\nRussell W. Hinton, CPA, CGFM State Auditor \r\nRWH:as \r\n \r\n EXHIBIT \r\n \r\n GORDON COLLEGE BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT \r\nYEAR ENDED JUNE 30, 2007 \r\n \r\nEXHIBIT\"A\" \r\n \r\nREVENUES \r\nState Appropriation State General Funds \r\nFederal Funds Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nPublic Service/Special Funding Initiatives Teaching \r\nTotal Expenditures \r\nExcess of Funds Available over Expenditures \r\nFUND BALANCE JULY 1 \r\nReserved \r\nADJUSTMENTS \r\nPrior Year Payables/Expenditures Prior Year Receivables/Revenues Unreserved Fund Balance (Surplus) Returned \r\nto Office of Treasury and Fiscal Services Year Ended June 30, 2006 \r\nNonmandatory Transfers \r\nFUND BALANCE JUNE 30 \r\nSUMMARY OF FUND BALANCE \r\nReserved Department Sales and Services Inventories Technology Fees Uncolleclible Accounts Receivable \r\nTotal Reserved \r\nUnreserved Surplus \r\nTotal Fund Balance \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\nVARIANCEFAVORABLE (UNFAVORABLE) \r\n \r\n$ 11,556,842.00 $ 11,556,842.00 $ \r\n \r\n4,106,600.00 \r\n \r\n4,102,685.63 \r\n \r\n6,871,845.00 \r\n \r\n6,831,349.18 \r\n \r\n$ 22,535,287.00 $ 22,490,876.81 $ \r\n \r\n0.00 -3,914.37 -40,495.82 \r\n-44410.19 \r\n \r\n$ \r\n \r\n263,923.00 $ 263,802.13 $ \r\n \r\n22,271,364.00 \r\n \r\n22,377,843.48 \r\n \r\n$ 22,535,287.00 $ 22,641,645.61 $ \r\n \r\n$ \r\n \r\n0.00 $ -150,768.80 $ \r\n \r\n120.87 -106479.48 \r\n-106,358.61 \r\n-150,768.80 \r\n \r\n90,325.99 \r\n \r\n11,192.61 -2, 104.00 \r\n \r\n-30,381.79 189,067.00 \r\n \r\n$ \r\n \r\n107,331.01 \r\n \r\n$ \r\n \r\n8,368.78 \r\n \r\n25,683.80 \r\n \r\n47,869.12 \r\n \r\n15,509.20 \r\n \r\n$ \r\n \r\n97,430.90 \r\n \r\n9900.11 \r\n \r\n$ ==1=0=7-,3,..31==01... \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bg6-b2005-h2006","title":"Management report Gordon College, Barnesville, an organizational unit of the state of Georgia year ended June 30, 2006","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Lamar County, Barnesville, 33.05457, -84.15575"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2005/2006"],"dcterms_description":["Began with fiscal year ended June 30, 2000; ceased with year ended June 30, 2011.","Fiscal year ended June 30, 2000 (online surrogate); title from PDF cover (Georgia Government Publications database, viewed August 11, 2017).","Year ended June 30, 2011 (online surrogate); (Georgia Government Publications database, viewed August 11, 2017)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, GA : Georgia. Dept. of Audits and Accounts, 2006"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Gordon College (Barnesville, Ga.)--Appropriations and expenditures","Financial statements--Georgia","Auditors' reports--Georgia"],"dcterms_title":["Management report Gordon College, Barnesville, an organizational unit of the state of Georgia year ended June 30, 2006"],"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-bg6-b2005-h2006"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bg6-b2005-h2006"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS \r\nMANAGEMENT REPORT GORDON COLLEGE \r\nBARNESVILLE, GEORGIA \r\nAN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA YEAR ENDED JUNE 30, 2006 \r\nRussell W. Hinton State Auditor \r\n \r\n GORDON COLLEGE - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nLETTER OF TRANSMITTAL \r\n \r\nSELECTED FINANCIAL INFORMATION \r\n \r\nEXHIBITS \r\n \r\nA STATEMENT OF NET ASSETS- (GAAP BASIS) \r\n \r\n2 \r\n \r\nB STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - \r\n \r\n(GAAP BASIS) \r\n \r\n3 \r\n \r\nC STATEMENT OF CASH FLOWS - (GAAP BASIS) \r\n \r\n4 \r\n \r\nD SELECTED FINANCIAL NOTES \r\n \r\n5 \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\nSCHEDULES \r\n \r\n1 BALANCE SHEET- (STATUTORY BASIS) BUDGET FUND \r\n \r\n16 \r\n \r\n2 BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT \r\n \r\n(STATUTORY BASIS) BUDGET FUND \r\n \r\n17 \r\n \r\n3 RECONCILIATION OF SALARIES AND TRAVEL \r\n \r\n19 \r\n \r\nSECTION II FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nSeptember 7, 2006 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly of Georgia Members ofthe State Board of Regents ofthe University System of Georgia \r\nand Honorable Lawrence V. Weill, President Gordon College \r\nLadies and Gentlemen: \r\nAs part ofour agreed upon procedures engagement on the statutory basis financial statements ofthe State of Georgia and our audit ofthe basic financial statements ofthe State of Georgia presented in the State of Georgia Comprehensive Annual Financial Report, and the issuance of a State of Georgia Single Audit Report pursuant to the Single Audit Act Amendments, as of and for the year ended June 30, 2006, we have performed certain audit procedures at Gordon College. Accordingly, the financial statements and compliance activities of Gordon College were examined to the extent considered necessary in order to express an opinion as to the fair presentation of the financial statements contained in the foregoing documents and to issue reports on compliance and internal control as required by the Single Audit Act Amendments of 1996. \r\nThis Management Report contains information pertinent to the financial and compliance activities of Gordon College as ofand for the year ended June 30, 2006. Information contained in this report is a by-product ofour engagement that is the representation ofmanagement, and accordingly, we do not express an opinion or any other form of assurance on it. The particular information provided is enumerated in the Table of Contents. \r\nThis report is intended solely for the information and use of the management of Gordon College, members of the Board of Regents of the University System of Georgia and the appropriate accrediting regulatory agency and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n~~~~ Russell W. Hinton State Auditor \r\nRWH:gp \r\n \r\n SELECTED FINANCIAL INFORMATION - 1- \r\n \r\n GORDON COLLEGE STATEMENT OF NET ASSETS - (GAAP BASIS) \r\nJUNE 30, 2006 \r\nASSETS \r\nCurrent Assets Cash and Cash Equivalents Accounts Receivable, Net (Note 3) Federal Financial Assistance Other Inventories Prepaid Items \r\nTotal Current Assets \r\nNoncurrent Assets Notes Receivable, Net Capital Assets, Net (Note 4) \r\nTotal Noncurrent Assets \r\nTotal Assets \r\nLIABILITIES \r\nCurrent Liabilities Accounts Payable Salaries Payable Deposits Deferred Revenue (Note 5) Other Liabilities Funds Held for Others Compensated Absences \r\nTotal Current Liabilities \r\nNoncurrent Liabilities Compensated Absences \r\nTotal Liabilities \r\nNET ASSETS \r\nInvested in Capital Assets, Net of Related Debt Restricted for: \r\nExpendable Unrestricted \r\nTotal Net Assets \r\n \r\nEXHIBIT\"A\" \r\n \r\n$ 5,868,773.63 \r\n174.00 642,562.02 259,948.83 \r\n6,836.19 \r\n$ 6,778,294.67 \r\n \r\n$ \r\n \r\n10,632.54 \r\n \r\n29,561,575.74 \r\n \r\n$ 29,572,208.28 \r\n \r\n$ 36,350,502.95 \r\n \r\n$ \r\n \r\n573,743.93 \r\n \r\n100,451.11 \r\n \r\n217,000.00 \r\n \r\n603,737.89 \r\n \r\n83,163.16 \r\n \r\n207,616.43 \r\n \r\n298,371.77 \r\n \r\n$ 2,084,084.29 \r\n \r\n60,011.78 $ 2,144,096.07 \r\n \r\n$ 29,561,575.74 \r\n13,052.91 4,631,778.23 \r\n \r\n$ 34,206,406.88 \r\n \r\n-2- \r\n \r\n GORDON COLLEGE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - (GAAP BASIS) \r\nYEAR ENDED JUNE 30, 2006 \r\n \r\nEXHIBIT \"B\" \r\n \r\nOPERATING REVENUES \r\nStudent Tuition and Fees Less: Scholarship Allowances \r\nGrants and Contracts Federal \r\nSales and Services of Educational Departments Rents and Royalties Auxiliary Enterprises \r\nResidence Halls Bookstore Food Services Parking/Transportation Intercollegiate Athletics Other Organizations Other Operating Revenues \r\nTotal Operating Revenues \r\nOPERATING EXPENSES \r\nSalaries Faculty Staff \r\nEmployee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation \r\nTotal Operating Expenses \r\nOperating Income (Loss) \r\nNONOPERATING REVENUES (EXPENSES) \r\nState Appropriations Gifts Interest and Other Investment Income \r\nNet Nonoperating Revenues \r\nIncome (Loss) Before Other Revenues, Expenses, Gains, or Losses \r\nCapital Grants and Gifts State \r\nIncrease (Decrease) in Net Assets \r\nNet Assets - Beginning of Year \r\nNet Assets - End of Year \r\n-3- \r\n \r\n$ \r\n \r\n5,459,430.35 \r\n \r\n-1,909,042.36 \r\n \r\n3,594,461.09 76,983.79 19,181.64 \r\n \r\n2,871,716.29 1,671,928.04 1,466,128.23 \r\n65,600.52 301,747.95 \r\n38,662.28 1,071,935.24 \r\n \r\n$ 14,728,733.06 \r\n \r\n$ \r\n \r\n6,016,175.89 \r\n \r\n4,523,898.36 \r\n \r\n2,785,209.57 \r\n \r\n589.00 \r\n \r\n144,482.10 \r\n \r\n1,812,876.33 \r\n \r\n1,597,799.56 \r\n \r\n7,174,313.80 \r\n \r\n1,272,959.49 \r\n \r\n$ 25,328,304.10 \r\n \r\n$ -10,599,571.04 \r\n \r\n$ 11,007,927.67 194,237.00 243,496.79 \r\n \r\n$ 11,445,661.46 \r\n \r\n$ \r\n \r\n846,090.42 \r\n \r\n$ \r\n \r\n1,364,071.11 \r\n \r\n$ \r\n \r\n2,210,161.53 \r\n \r\n$ 31,996,245.35 \r\n \r\n$ 34,206,406.88 \r\n \r\n GORDON COLLEGE STATEMENT OF CASH FLOWS - (GAAP BASIS) \r\nYEAR ENDED JUNE 30, 2006 \r\nCASH FLOWS FROM OPERATING ACTIVITIES Tuition and Fees Grants and Contracts Sales and Services of Educational Departments Payments to Suppliers Payments to Employees Payments for Scholarships and Fellowships Auxiliary Enterprise Charges: Residence Halls Bookstore Food Services Parking/Transportation Intercollegiate Athletics Other Organizations Other Receipts (Payments) \r\nNet Cash Provided (Used) by Operating Activities \r\nCASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES State Appropriations Agency Funds Transactions Gifts and Grants Received for Other than Capital Purposes \r\nNet Cash Flows Provided (Used) by Noncapital Financing Activities \r\nCASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchases of Capital Assets \r\nCASH FLOWS FROM INVESTING ACTIVITIES Interest on Investments \r\nNet Increase (Decrease) in Cash \r\nCash and Cash Equivalents - Beginning of Year \r\nCash and Cash Equivalents - End of Year \r\nRECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: \r\nOperating Income (Loss) Adjustments to Reconcile Net Income (Loss) to Net Cash \r\nProvided (Used) by Operating Activities Depreciation Change in Assets and Liabilities: Accounts Receivable, Net Inventories Prepaid Items Accounts Payable Deferred Revenue Other Liabilities Compensated Absences \r\nNet Cash Provided (Used) by Operating Activities \r\nNONCASH ACTIVITY Gift of Capital Assets Reducing Proceeds of Capital Grants and Gifts \r\n-4- \r\n \r\nEXHIBIT\"C\" \r\n \r\n$ 3,559,520.01 3,594,742.70 68,290.34 \r\n-11,528,993.72 -10,439,980.21 \r\n-1,812,876.33 \r\n2,897,757.93 517,901.81 \r\n1,462,453.23 65,600.52 303,344.27 38,662.28 \r\n2,001,882.58 \r\n$ -9,271,694.59 \r\n \r\n$ 11,007,927.67 -772,771.12 194,237.00 \r\n$ 10.429,393.55 \r\n \r\n$ -1,310.414.45 \r\n \r\n$ \r\n \r\n243,496.79 \r\n \r\n$ \r\n \r\n90,781.29 \r\n \r\n5.777,992.34 \r\n \r\n$ ==5,=86=8il=7' =7=3.=63= \r\n \r\n$ -10,599,571.04 \r\n1,272,959.49 -193,953.49 \r\n35,552.91 -481.59 \r\n250,053.45 -64,806.10 -40,717.43 69,269.21 \r\n$ -9,271,694.59 \r\n$ -1364071.11 \r\n \r\n GORDON COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nREPORTING ENTITY Gordon College is one of thirty-five (35) State supported member institutions of higher education in Georgia which comprise the University System of Georgia, an organizational unit of the State of Georgia. The accompanying financial statements reflect the operations of Gordon College 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. Gordon College does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, Gordon College is considered an organizational unit of the Board of Regents of the University System of Georgia reporting entity for financial reporting purposes because of the significance of its legal, operational, and financial relationships with the Board of Regents as defined in Section 2100 of the Governmental Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial Reporting Standards. \r\nNET ASSETS The College's net assets are classified as follows: \r\nInvested in capital assets, net of related debt: This represents the College's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. The term \"debt obligations\" as used in this definition does not include debt of the GSFIC as discussed previously in Note 1 - Capital Assets section. \r\nRestricted net assets - expendable: Restricted expendable net assets include resources in which the College is legally or contractually obligated to spend resources in accordance with restrictions imposed by external third parties. \r\nUnrestricted net assets: Unrestricted net assets represent resources derived from student tuition and fees, state appropriations, and sales and services of educational departments and auxiliary enterprises. These resources are used for transactions relating to the educational and general operations of the College and may be used at the discretion of the governing board to meet current expenses for those purposes, except for unexpended state appropriations (surplus) of $30,381.79. Unexpended state appropriations must be refunded to the Board of Regents of the University System of Georgia, University System Office for remittance to the Office of Treasury and Fiscal Services. These resources also include auxiliary enterprises, which are substantially self-supporting activities that provide services for students, faculty and staff. \r\n \r\n-5- \r\n \r\n GORDON COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 2: DEPOSITS AND INVESTMENTS \r\nDEPOSITS The custodial credit risk for deposits is the risk that in the event of a bank failure, the College's deposits may not be recovered. Funds belonging to the State of Georgia (and thus the college) cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral any one or more of the following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59: \r\n1. Bonds, bills, notes, certificates of indebtedness, or other direct obligations of the United States or of the State of Georgia. \r\n2. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia. \r\n3. Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose. \r\n4. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia. \r\n5. Bonds, bills, certificates of indebtedness, notes or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association and the Federal National Mortgage Association. \r\n6. Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation. \r\nThe Treasurer of the Board of Regents is responsible for all details relative to furnishing the required depository protection for all units of the University System of Georgia. \r\nAt June 30, 2006, $1,071,556.84 of the College's deposits were uninsured. Of these uninsured deposits, $1,071,556.84 were collateralized with securities held by the financial institution, by its trust department or agency, but not in the College's name. \r\nINVESTMENTS At June 30, 2006, the carrying value of the College's investment was $4,829,987.99, which is materially the same as fair value. These investments were comprised entirely of funds invested in the Board of Regents investment pools as follows: \r\n \r\n-6- \r\n \r\n GORDON COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 2: DEPOSITS AND INVESTMENTS \r\n \r\nINVESTMENTS \r\n \r\nInvestment Pool \r\n \r\nBoard of Regents Short-Term Fund \r\n \r\n$ 4,829.987 .99 \r\n \r\nThe Board of Regents Investment Pool is not registered with the Securities and Exchange Commission as an investment company. The fair value of investments is determined daily. The pool does not issue shares. Each participant is allocated a pro rata share of each investment at fair value along with a pro rata share of the interest that it earns. Participation in the Board of Regents Investment Pool is voluntary. The Board of Regents Short-Term Fund is reported as Cash and Cash Equivalents on Exhibit \"A\" of this report. \r\n \r\nNOTE 3: ACCOUNTS RECEIVABLE \r\n \r\nAccounts receivable consisted of the following at June 30, 2006. \r\n \r\nStudent Tuition and Fees Auxiliary Enterprises and Other Operating Activities Federal, State and Private Funds Other \r\n \r\n$ 22,033.02 25,982.72 174.00 606,113.28 \r\n \r\nLess Allowance for Doubtful Accounts \r\n \r\n$ 654,303.02 11,567.00 \r\n \r\nNet Accounts Receivable \r\n \r\n$ 642,736.02 \r\n \r\nNOTE 4: CAPITAL ASSETS \r\n \r\nFollowing are the changes in the College's capital assets for the year ended June 30, 2006: \r\n \r\n-7- \r\n \r\n GORDON COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 4: CAPITAL ASSETS \r\n \r\nBeginning Balance July 1, 2005 \r\n \r\nAdditions \r\n \r\nReductions \r\n \r\nEnding Balance June 30, 2006 \r\n \r\nCapital Assets, Not Being Depreciated: \r\n \r\nLand \r\n \r\n$ \r\n \r\nCapitalized Collections \r\n \r\nConstruction Work-In-Progress \r\n \r\n348,207.04 $ 1,083.33 \r\n19,158.75 \r\n \r\n60,667.00 $ 297,968.61 \r\n \r\n0.00 $ \r\n \r\n408,874.04 1,083.33 \r\n317,127.36 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n$ 368,449.12 $ 358,635.61 $ \r\n \r\n0.00 $ 727,084.73 \r\n \r\nCapital Assets, Being Depreciated: Infrastructure Building and Building Improvements Facilities and Other Improvements Equipment Library Collections \r\n \r\n$ 2,699,055.85 32,993,424.62 $ 1,362,167.35 3,706,487.64 2,498,975.99 \r\n \r\n2,0 I0,420.46 $ \r\n206,444.66 98,984.84 \r\n \r\n$ 2,699,055.85 0.00 35,003,845.08 \r\n1,362,167.35 3,912,932.30 2,597,960.83 \r\n \r\nTotal Assets Being Depreciated \r\n \r\n$ 43,260,111.45 $ 2,315,849.96 $ \r\n \r\n0.00 $ 45,575,961.41 \r\n \r\nLess: Accumulated Depreciation: \r\n \r\nInfrastructure \r\n \r\n$ 1,378,212.81 $ \r\n \r\nBuilding and Building Improvements \r\n \r\n8,907,332.40 \r\n \r\nFacilities and Other Improvements \r\n \r\n853,088.25 \r\n \r\nEquipment \r\n \r\n2,253,960.99 \r\n \r\nLibrary Collections \r\n \r\n2,075,916.46 \r\n \r\n96,098.52 $ 750,164.77 41,885.51 304,689.61 \r\n80,121.08 \r\n \r\n0.00 $ \r\n \r\n1,474,311.33 9,657,497.17 \r\n894,973.76 2,558,650.60 2,156,037.54 \r\n \r\nTotal Accumulated Depreciation \r\n \r\n$ 15,468,510.91 $ 1,272,959.49 $ \r\n \r\n0.00 $ 16,741,470.40 \r\n \r\nTotal Capital Assets, Being Depreciated, \r\n \r\nNet \r\n \r\n$ 27,791,600.54 $ 1,042,890.47 $ \r\n \r\n0.00 $ 28,834,491.01 \r\n \r\nCapital Assets, Net \r\n \r\n$ 28.160.049.66 $ 1.401 526 08 $ \r\n \r\n0.00 $ 29.561,575.74 \r\n \r\nNOTE 5: DEFERRED REVENUE \r\n \r\nDeferred revenue consisted of the following at June 30, 2006. \r\n \r\nPrepaid Tuition and Fees Other Deferred Revenue \r\n \r\n$ 601,007.23 2,730.66 \r\n \r\nTotals \r\n \r\n$ 603,737.89 \r\n \r\nNOTE 6: LONG-TERM LIABILITIES \r\n \r\nThe College's Long-Term liability activity for the year ended June 30, 2006 was as follows: \r\n \r\nOther Liabilities Compensated Absences \r\n \r\nBeginning Balance July 1, 2005 \r\n \r\nAdditions \r\n \r\nReductions \r\n \r\nEnding Balance June 30, 2006 \r\n \r\nCurrent Portion \r\n \r\n$ 2891 H.34 $ 352,737.09 $ 283.467 88 $ 358,383.55 $ 298,371.77 \r\n \r\n-8- \r\n \r\n GORDON COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 7: NET ASSETS \r\n \r\nChanges in Net Asset activity for the year ended June 30, 2006 are as follows: \r\n \r\nInvested in Capital Assets Net of Related Debt \r\nRestricted Net Assets Unrestricted Net Assets Total Net Assets \r\nNOTE 8: RETIREMENT PLANS \r\n \r\nBalance July 1, 2005 \r\n \r\nAdditions \r\n \r\nReductions \r\n \r\nBalance June 30, 2006 \r\n \r\n$ 28,160,049.66 $ 1,401,526.08 \r\n \r\n$ 29,561,575.74 \r\n \r\n13,052.91 \r\n \r\n13,052.91 \r\n \r\n3,823,142.78 26,136,939.55 $25,328,304.10 \r\n \r\n4,631,778.23 \r\n \r\n$ 31 226,245,35 $21,538,465 63 $25 328 3Q4, IQ $ 34,2Q6,4Q6,88 \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\nPlan Description Gordon College participates in the Teachers Retirement System of Georgia (TRS), a cost-sharing multiple-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia. TRS provides service retirement, disability retirement, and survivor's benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the TRS offices or the Georgia Department of Audits and Accounts. \r\n \r\nFunding Policy Employees of Gordon College who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. Gordon College makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. For fiscal year 2006, the employer contribution rate was 9.24% for covered employees. Employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2006 \r\n \r\n100% \r\n \r\n$ 543,410.66 \r\n \r\n2005 \r\n \r\n100% \r\n \r\n$ 472,048.55 \r\n \r\n2004 \r\n \r\n100% \r\n \r\n$ 466,188.64 \r\n \r\n- 9- \r\n \r\n GORDON COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 8: RETIREMENT PLANS \r\nEMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\nPlan Description Gordon College participates in the Employees' Retirement System of Georgia (ERS), a singleemployer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances for employees in the State of Georgia. \r\nThe benefit structure of ERS is defined by State statute and was significantly modified on July 1, 1982. Unless elected otherwise, an employee who currently maintains membership with ERS based upon State employment that started prior to July 1, 1982, is an \"old plan\" member subject to the plan provisions in effect prior to July 1, 1982. All other members are \"new plan\" members subject to the modified plan provisions. \r\nUnder both the old plan and new plan, members become vested after 10 years of creditable service. A member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60. Additionally, there are certain provisions for retirement after 25 years of service regardless of age. Retirement benefits paid to members are based upon a formula which considers the monthly average of the member's highest twentyfour consecutive months of salary, the number of years of creditable service, and the member's age at retirement. Postretirement cost-of-living adjustments are also made to member's benefits. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension at reduced rates to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. \r\nIn addition, the ERS Board of Trustees created the Supplemental Retirement Benefit Plan (SRBP) effective January 1, 1998. The SRBP was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion ofERS. The purpose of SRBP is to provide retirement benefits to employees covered by ERS whose benefits are otherwise limited by IRC 415. \r\nThe ERS issues a financial report each fiscal year, which may be obtained through ERS. \r\nFunding Policy As established by State statute, all full-time employees of the State of Georgia and its political subdivisions, who are not members of other state retirement systems, are eligible to participate in the ERS. Both employer and employee contributions are established by State statute. The College's payroll for the year ended June 30, 2006, for employees covered by ERS was $109,088.50. The College's total payroll for all employees was $10,540,074.25. \r\n \r\n- 10 - \r\n \r\n GORDON COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 8: RETIREMENT PLANS \r\nEMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\nFunding Policy Under the old plan, member contributions consist of 7.41 % of annual compensation. Of these member contributions, the employee pays the first 1.5% and the College pays the remainder on behalf of the employee. Under the new plan, member contributions consist solely of 1.5% of annual compensation paid by employee. The College also is required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation. For the year ended June 30, 2006, the ERS employer contribution rate for the College amounted to 10.41% of covered payroll and included the amounts contributed on behalf of the employees under the old plan referred to above. Employer contributions are also made on amounts paid for accumulated leave to retiring employees. \r\nTotal contributions to the plan made during fiscal year 2006 amounted to $13,056.35, of which $8,549.44 was made by the College and $4,506.91 was made by employees. These contributions met the requirements of the plan. \r\nActuarial and Trend Information Actuarial and historical trend information is presented in the ERS June 30, 2006, financial report, which may be obtained through ERS. \r\nREGENTS RETIREMENT PLAN \r\nPlan Description The Regents Retirement Plan, a single-employer defined contribution plan, is an optional retirement plan that was created/established by the Georgia General Assembly in O.C.G.A. 4721-1 et. seq. and is administered by the Board of Regents of the University System of Georgia. O.C.G.A. 47-3-68(a) defines who may participate in the Regents Retirement Plan. An \"eligible university system employee\" is a faculty member or a principal administrator, as designated by the regulations of the Board of Regents. Under the Regents Retirement Plan, a plan participant may purchase annuity contracts from four approved vendors (AIG-VALIC, American Century, Fidelity, and TIAA-CREF) for the purpose of receiving retirement and death benefits. Benefits depend solely on amounts contributed to the plan plus investment earnings. Benefits are payable to participating employees or their beneficiaries in accordance with the terms of the annuity contracts. \r\nFunding Policy Gordon College makes monthly employer contributions for the Regents Retirement Plan at rates adopted by the Teachers Retirement System of Georgia Board of Trustees in accordance with State Statute and as advised by their independent actuary. The employer contributes 9.65% of the participating employee's eamable compensation. Employees contribute 5% of their eamable compensation. Amounts attributable to all plan contributions are fully vested and nonforfeitable at all times. \r\n- 11 - \r\n \r\n GORDON COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 8: RETIREMENT PLANS \r\nREGENTS RETIREMENT PLAN \r\nFunding Policy Gordon College and the covered employees made the required contributions of $333,701.13 (9.65%) and $172,903.11 (5%), respectively. \r\nAIG-VALIC, American Century, Fidelity, and TIAA-CREF have separately issued financial reports which may be obtained through their respective corporate offices. \r\nGEORGIA DEFINED CONTRIBUTION PLAN \r\nPlan Description Gordon College participates in the Georgia Defined Contribution Plan (GDCP) which is a singleemployer defined contribution plan established by the General Assembly of Georgia for the purpose of providing retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees of the Employees' Retirement System of Georgia. \r\nBenefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board of Trustees. If a member has less than $3,500.00 credited to his/her account, the Board of Trustees has the option of requiring a lump sum distribution to the member in lieu of making periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary. Benefit provisions are established by State statute. \r\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 2006 amounted to $26,067.53 which represents 7.5% of covered payroll. These contributions met the requirements of the plan. \r\nThe Georgia Defined Contribution Plan issues a financial report each fiscal year, which may be obtained from the ERS offices. \r\n \r\n- 12 - \r\n \r\n GORDON COLLEGE SELECTED FINANCIAL NOTES \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 9: 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 Gordon College expects such amounts, if any, to be immaterial to its overall financial position. \r\nLitigation, claims and assessments filed against Gordon College (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, 2006. \r\nNOTE 10: AFFILIATED ORGANIZATIONS \r\nThe Gordon College Foundation is a legally separate, tax exempt organization whose activities primarily support students attending Gordon College. This affiliated organization is considered a potential component unit of the State of Georgia in accordance with GASB Statement No. 39, Determining Whether Certain Organizations are Component Units. Therefore, the financial statements of this affiliated organization is not included in these financial statements. Copies of the financial statements for the affiliated organization may be obtained from Gordon College. \r\n \r\n- 13 - \r\n \r\n (This page left intentionally blank) \r\n \r\n SUPPLEMENTARY INFORMATION - 15 - \r\n \r\n GORDON COLLEGE BALANCE SHEET- (STATUTORY BASIS) \r\nBUDGET FUND JUNE 30, 2006 \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable \r\nFederal Financial Assistance Other Prepaid Expenditures Inventories \r\nTotal Assets \r\nLIABILITIES AND FUND EQUITY \r\nLiabilities Accrued Payroll Accounts Payable Deferred Revenue \r\nTotal Liabilities \r\nFund Balances Reserved Department Sales and Services Technology Fees Uncollectible Accounts Receivable Inventories Unreserved Undesignated Surplus Regular \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\nSCHEDULE \"1\" \r\n \r\n$ 2,162,414.37 -2,556.66 \r\n432,703.64 6,836.19 \r\n19,330.86 \r\n$ ==2='=61=8=7,=2=8.=40= \r\n \r\n$ \r\n \r\n91,268.97 \r\n \r\n1,897,009.73 \r\n \r\n540,123.71 \r\n \r\n$ 2,528,402.41 \r\n \r\n$ \r\n \r\n7,847.03 \r\n \r\n14,846.37 \r\n \r\n11,567.00 \r\n \r\n25,683.80 \r\n \r\n30,381.79 \r\n \r\n$ \r\n \r\n90,325.99 \r\n \r\n$ 2,618,728.40 \r\n \r\nStatutory Basis financial information was prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. \r\n- 16 - \r\n \r\n GORDON COLLEGE BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT (STATUTORY BASIS) \r\nBUDGET FUND YEAR ENDED JUNE 30, 2006 \r\n \r\nSCHEDULE \"2\" \r\n \r\nREVENUES \r\nState Appropriation State General Funds \r\nFederal Funds Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nPublic Service/Special Funding Initiatives Teaching \r\nTotal Expenditures \r\nExcess of Funds Available over Expenditures \r\nFUND BALANCE JULY 1 \r\nReserved Unreserved \r\nADJUSTMENTS \r\nPrior Year Payables/Expenditures Prior Year Receivables/Revenues Unreserved Fund Balance (Surplus) Returned \r\nto Board of Regents - Administrative Central Office Year Ended June 30, 2005 \r\nNon-Mandatory Transfers \r\nFUND BALANCE JUNE 30 \r\nRESERVED \r\nDepartment Sales and Services Technology Fees Uncollectible Accounts Receivable Inventories \r\nTotal Reserved \r\nUnreserved (Surplus) \r\nTotal Fund Balance \r\n \r\nFINAL BUDGET \r\n \r\nACTUAL \r\n \r\nVARIANCE \r\n \r\n$ 11,008,074.00 $ 11,008,074.00 $ \r\n \r\n3,161,523.00 \r\n \r\n3,594,461.09 \r\n \r\n6,145 327.00 \r\n \r\n6,555,261.14 \r\n \r\n$ 20,314,924.00 $ 21,157,796.23 $ \r\n \r\n0.00 -432,938.09 -409 934.14 \r\n-842 872.23 \r\n \r\n$ \r\n \r\n173,172.00 $ \r\n \r\n173,170.97 $ \r\n \r\n20,141,752.00 \r\n \r\n21,201,753.53 \r\n \r\n$ 20,314,924.00 $ 21,374,924.50 $ \r\n \r\n$ \r\n \r\n0.00 $ -217, 128.27 $ \r\n \r\n1.03 -1 060 001.53 \r\n-1 060 000.50 \r\n217 128.27 \r\n \r\n98,272.98 146.33 \r\n \r\n12,597.28 7,517.00 \r\n \r\n-146.33 189 067.00 \r\n \r\n$ \r\n \r\n90 325.99 \r\n \r\n$ \r\n \r\n7,847.03 \r\n \r\n14,846.37 \r\n \r\n11,567.00 \r\n \r\n25 683.80 \r\n \r\n$ \r\n \r\n59,944.20 \r\n \r\n30 381.79 \r\n \r\n$ ===90=!=32=5=.9=9= \r\n \r\nStatutory Basis financial information was prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. \r\n- 17 - \r\n \r\n {This page left intentionally blank) \r\n \r\n GORDON COLLEGE RECONCILIATION OF SALARIES AND TRAVEL \r\nYEAR ENDED JUNE 30, 2006 \r\n \r\nSCHEDULE \"3\" \r\n \r\nTotals per Annual Supplement \r\n \r\nAccruals June 30, 2006 June 30, 2005 \r\n \r\nCompensated Absences June 30, 2006 June 30, 2005 \r\n \r\nAdjustments \r\n \r\nShared Services on Jointly Staffed Personnel \r\n \r\nDarton College \r\n \r\nPowell, \r\n \r\nShirley \r\n \r\nGeorgia Perimeter College \r\n \r\nMeadows, Danny \r\n \r\nUniversity of Georgia \r\n \r\nMilewicz, Mark \r\n \r\nUnidentified Variance \r\n \r\nSALARIES $ 10,477,485.82 $ \r\n \r\nTRAVEL 144,482.10 \r\n \r\n100,451.11 -55,456.72 \r\n \r\n332,915.51 -268,568.82 \r\n \r\n-18,638.43 -4,521.30 -5,917.92 \r\n-17,675.00 \r\n$ 10,540,074.25 $===14=4=,4=8=2.=10= \r\n \r\n- 19 - \r\n \r\n SECTION II FINDINGS AND QUESTIONED COSTS \r\n \r\n GORDON COLLEGE SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2006 \r\nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No findings or matters related to management were reported. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No findings or matters related to management were reported. \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bg6-b2004-h2005","title":"Management report Gordon College, Barnesville, an organizational unit of the state of Georgia year ended June 30, 2005","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Lamar County, Barnesville, 33.05457, -84.15575"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2004/2005"],"dcterms_description":["Began with fiscal year ended June 30, 2000; ceased with year ended June 30, 2011.","Fiscal year ended June 30, 2000 (online surrogate); title from PDF cover (Georgia Government Publications database, viewed August 11, 2017).","Year ended June 30, 2011 (online surrogate); (Georgia Government Publications database, viewed August 11, 2017)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, GA : Georgia. Dept. of Audits and Accounts, 2005"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Gordon College (Barnesville, Ga.)--Appropriations and expenditures","Financial statements--Georgia","Auditors' reports--Georgia"],"dcterms_title":["Management report Gordon College, Barnesville, an organizational unit of the state of Georgia year ended June 30, 2005"],"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-bg6-b2004-h2005"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bg6-b2004-h2005"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS \r\nMANAGEMENT REPORT GORDON COLLEGE \r\nBARNESVILLE, GEORGIA \r\nAN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA YEAR ENDED JUNE 30, 2005 \r\nRussell W. Hinton State Auditor \r\n \r\n GORDON COLLEGE - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nLETTER OF TRANSMITTAL \r\n \r\nSELECTED FINANCIAL INFORMATION \r\n \r\nEXHIBITS \r\n \r\nA BALANCE SHEET- (STATUTORY BASIS) \r\n \r\n\"A\" RESIDENT INSTRUCTION \r\n \r\n3 \r\n \r\nB ANALYSIS OF CHANGES IN FUND BALANCE-(STATUTORY BASIS) \r\n \r\n\"A\" RESIDENT INSTRUCTION \r\n \r\n4 \r\n \r\nC STATEMENT OF REVENUES AND EXPENDITURES COMPARED TO \r\n \r\nBUDGET - (STATUTORY BASIS) \r\n \r\n\"A\" RESIDENT INSTRUCTION \r\n \r\n5 \r\n \r\nD RECONCILIATION OF SALARIES AND TRAVEL \r\n \r\n7 \r\n \r\nSECTION II FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nOctober 5, 2005 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly of Georgia Members of the State Board of Regents of the University System of Georgia \r\nand Honorable Lawrence V. Weill, President Gordon College \r\nLadies and Gentlemen: \r\nAs part ofour audit ofthe statutory basis financial statements ofthe State ofGeorgia presented in the State ofGeorgia Report ofthe State Auditor, the basic financial statements ofthe State of Georgia presented in the State ofGeorgia Comprehensive Annual Financial Report, and the issuance of a State ofGeorgia Single Audit Report pursuant to the Single Audit Act Amendments, as ofand for the year ended June 30, 2005, we have performed certain audit procedures at Gordon College. Accordingly, the financial statements and compliance activities ofGordon College were examined to the extent considered necessary in order to express an opinion as to the fair presentation of the financial statements contained in the foregoing documents and to issue reports on compliance and internal control as required by the Single Audit Act Amendments of 1996. \r\nThis Management Report contains information pertinent to the financial and compliance activities of Gordon College as of and for the year ended June 30, 2005. Information contained in this report is a by-product of our engagement that is the representation ofmanagement, and accordingly, we do not express an opinion or any other form of assurance on it. The particular information provided is enumerated in the Table of Contents. \r\nThis report is intended solely for the information and use ofthe management ofGordon College, and members ofthe Board ofRegents ofthe University System of Georgia and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n \r\nRWH:gp \r\n \r\nState Auditor \r\n \r\n SELECTED FINANCIAL INFORMATION - 1- \r\n \r\n GORDON COLLEGE BALANCE SHEET (STATUTORY BASIS) \r\n\"A\" RESIDENT INSTRUCTION JUNE 30. 2005 \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable \r\nFederal Financial Assistance Other Prepaid Expenditures Inventories \r\nTotal Assets \r\nLIABILITIES AND FUND EQUITY \r\nLiabilities Accrued Payroll Accounts Payable Deferred Revenue Other Liabilities \r\nTotal Liabilities \r\nFund Balances Reserved Inventories Continuing Education Technology Fees Uncollectible Accounts Receivable Unreserved Undesignated Surplus Regular \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\nEXHIBIT\"A\" \r\n \r\n$ 2,101,501.42 27,725.53 \r\n135,455.32 5,551.00 \r\n35 217.74 \r\n$ 2,305,451.01 \r\n \r\n$ \r\n \r\n54,170.91 \r\n \r\n1,480,131.90 \r\n \r\n548,178.51 \r\n \r\n124,550.38 \r\n \r\n$ 2,207,031.70 \r\n \r\n$ \r\n \r\n37,611.06 \r\n \r\n19,891.39 \r\n \r\n36,720.53 \r\n \r\n4,050.00 \r\n \r\n146.33 \r\n \r\n$ \r\n \r\n98,419.31 \r\n \r\n$ 2,305,451.01 \r\n \r\nStatutory Basis financial information was prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. \r\n-3 - \r\n \r\n GORDON COLLEGE ANALYSIS OF CHANGES IN FUND BALANCE - (STATUTORY BASIS) \r\n\"A\" RESIDENT INSTRUCTION YEAR ENDED JUNE 30. 2005 \r\n \r\nEXHIBIT \"B\" \r\n \r\nFUND BALANCE - JULY 1. 2004 Reserved Surplus \r\nADDITIONS Adjustments to Prior Year's Expenditures/Payables Non-Mandatory Transfers Excess of Funds Available over (under) Expenditures Exhibit \"C\" \r\nDEDUCTIONS Unreserved Fund Balance (Surplus) Returned to Board of Regents - Administrative Central Office Year Ended June 30, 2004 Adjustments to Prior Year's Revenues/Receivables \r\nFUND BALANCE - JUNE 30, 2005 \r\n \r\n$ 88,169.16 12,289.52 \r\n$ 100,458.68 \r\n \r\n$ \r\n \r\n376.27 \r\n \r\n189,067.00 \r\n \r\n-117185.15 \r\n \r\n$ 72,258.12 \r\n \r\n$ 12,289.52 62,007.97 \r\n$ 74,297.49 \r\n$ ==9=8=,4=1=9=.3=1 \r\n \r\nStatutory Basis financial information was prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. \r\n-4 - \r\n \r\n GORDON COLLEGE STATEMENT OF REVENUES AND EXPENDITURES COMPARED TO \r\nBUDGET - (STATUTORY BASIS) \"A\" RESIDENT INSTRUCTION YEAR ENDED JUNE 30. 2005 \r\n \r\nEXHIBIT \"C\" \r\n \r\nREVENUES \r\nState Appropriations Other Revenues Retained \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\nVARIANCE FAVORABLE (UNFAVORABLE) \r\n \r\n$ 10,103,609.00 $ 10,103,609.00 $ \r\n \r\n9,715,217.00 \r\n \r\n8,506,835.36 \r\n \r\n0.00 -1,208,381.64 \r\n \r\n$ 19,818,826.00 $ 18,610,444.36 $ _ ____;-1-'=,2=-=-08:.!.,3.:..:8:..:.1:..:.6..:..4 \r\n \r\nEXPENDITURES \r\nPersonal Services: Education, General and Departmental Services \r\nOperating Expenses: Education, General and Departmental Services Sponsored Operations \r\nCapital Outlay Special Funding Initiative \r\n \r\n$ 11,364,626.00 $ 10,636,357.31 $ \r\n \r\n3,727,941.00 4,500,000.00 \r\n25,000.00 201,259.00 \r\n \r\n3,760,668.72 3,393,219.75 \r\n739,000.00 198,383.73 \r\n \r\n728,268.69 \r\n-32,727.72 1,106,780.25 -714,000.00 \r\n2 875.27 \r\n \r\n$ 19,818,826.00 $ 18,727,629.51 $ _ _--'1,.:.09.:..1;.,_,1.;..:9c..:.6.:_.4c.:..9 \r\n \r\nExcess of Revenues over Expenditures \r\n \r\n$ -117 185. 15 $ ===-,,;,1,;,,17;,,.,;,,;18;;,;;5~1. ;,;;5 \r\n \r\nStatutory Basis financial information was prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. \r\n-5- \r\n \r\n GORDON COLLEGE RECONCILIATION OF SALARIES AND TRAVEL \r\nYEAR ENDED JUNE 30, 2005 \r\n \r\nEXHIBIT\"D\" \r\n \r\nTotals per Annual Supplement \r\nAccruals June 30, 2005 June 30, 2004 \r\nCompensated Absences June 30, 2005 June 30, 2004 \r\nTotals per GAAP Basis as Reported in the Consolidated Annual Financial Report \r\n \r\nSALARIES \r\n$ 9,105,376.69 $ \r\n \r\nTRAVEL 112,035.28 \r\n \r\n55,456.72 -47,972.28 \r\n \r\n268,568.82 -225,976.57 \r\n \r\n$ 9,155,453.38 $ ======11=2,l,,;;,0=3=5=28= \r\n \r\n-7- \r\n \r\n SECTION II FINDINGS AND QUESTIONED COSTS \r\n \r\n GORDON COLLEGE SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2005 \r\nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bg6-b2003-h2004","title":"Gordon College, Barnesville, Georgia, report on review of the financial statements for the fiscal year ended June 30, 2004","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Lamar County, Barnesville, 33.05457, -84.15575"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2003/2004"],"dcterms_description":["Began with fiscal year ended June 30, 2000; ceased with year ended June 30, 2011.","Fiscal year ended June 30, 2000 (online surrogate); title from PDF cover (Georgia Government Publications database, viewed August 11, 2017).","Year ended June 30, 2011 (online surrogate); (Georgia Government Publications database, viewed August 11, 2017)."],"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":["Gordon College (Barnesville, Ga.)--Appropriations and expenditures","Financial statements--Georgia","Auditors' reports--Georgia"],"dcterms_title":["Gordon College, Barnesville, Georgia, report on review of the financial statements for the fiscal year ended June 30, 2004"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-bg6-b2003-h2004"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bg6-b2003-h2004"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS \r\nGORDON COLLEGE \r\nBARNESVILLE, GEORGIA REPORT ON REVIEW \r\nOF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \r\nRussell W. Hinton State Auditor \r\n \r\n GORDON COLLEGE - TABLE OF CONTENTS - \r\n \r\nSECTION I FINANCIAL INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION REQUIRED SUPPLEMENTARY INFORMATION MANAGEMENT'S DISCUSSION AND ANALYSIS BASIC FINANCIAL STATEMENTS EXHIBITS A STATEMENT OF NET ASSETS B STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS C STATEMENT OF CASH FLOWS D NOTES TO THE FINANCIAL STATEMENTS \r\nSUPPLEMENTARY INFORMATION SCHEDULES \r\n1 SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO BUDGET - (NON-GAAP BASIS) RESIDENT INSTRUCTION \r\n2 RECONCILIATION OF SALARIES AND TRAVEL \r\n \r\nPage \r\n3 4 5 6 \r\n27 29 \r\n \r\nSECTION II CURRENT YEAR FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \r\nDecember 3, 2004 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly of Georgia Members of the Board of Regents of the University System of Georgia \r\nand Honorable Lawrence V. Weill, President Gordon College \r\nINDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \r\nLadies and Gentlemen: \r\nWe have reviewed the accompanying basic financial statements of Gordon College, an organizational unit ofthe State of Georgia, and its' aggregate discretely presented component unit, as of and for the year ended June 30, 2004, as listed in the table of contents, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. We did not review the financial statements of Gordon College's discretely presented component unit. Those financial statements were audited by other auditors whose report thereon has been furnished to us and the results of our review expressed herein, insofar as it relates to the amounts included for Gordon College Foundation is based solely upon the report of the other auditors. All information included in these financial statements is the representation of the management of Gordon College. \r\nA review consists principally of inquiries of Gordon College personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with auditing standards generally accepted in the United States of America, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. \r\nBased on our review and the report of other auditors discussed above, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with accounting principles generally accepted in the United States of America. \r\n04ARL-66 \r\n \r\n As discussed in Note 1, the College adopted the provisions of the Governmental Accounting Standards Board, Statement Number 39, Determining Whether Certain Organizations are Component Units during the year ended June 30, 2004. \r\nManagement's Discussion and Analysis is not a required part ofthe basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. We and other auditors have applied certain limited procedures, which consisted principally of inquiries ofmanagement regarding the methods ofmeasurement and presentation of this supplementary information, and we are not aware ofany material modifications that should be made thereto. \r\nOur review was made for the purpose of expressing limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with accounting principles generally accepted in the United States ofAmerica. The accompanying supplementary information (Schedules 1 and 2) is presented for additional analysis purposes. Such information has been subjected to the inquiries and analytical procedures applied in the review ofthe financial statements, and we are not aware ofany material modifications that should be made to such data. \r\nRespectfully submitted, \r\n\u003c\"~400~~ \r\nRussell W. Hinton State Auditor \r\nRWH:as 04ARL-66 \r\n \r\n REQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n GORDON COLLEGE \r\nManagement's Discussion and Analysis \r\n \r\nIntroduction \r\n \r\nGordon College is one of the 34 institutions of the University System of Georgia. The College, located in Barnesville, Georgia, was founded in 1852 and has become known for its quality instructional programs. The College offers Associate degrees in a wide variety of subjects. This wide range of educational opportunities attracts a highly qualified faculty and a student body of more than 3,400 students each year. The institution continues to grow as shown by the comparison numbers that follow. \r\n \r\nFaculty \r\n \r\nStudents \r\n \r\nFY2004 FY2003 FY2002 \r\n \r\n89 \r\n \r\n3,470 \r\n \r\n87 \r\n \r\n3,416 \r\n \r\n76 \r\n \r\n3,074 \r\n \r\nOverview ofthe Financial Statements and Financial Analysis \r\n \r\nGordon College is proud to present its financial statements for fiscal year 2004. The emphasis of discussions about these statements will be on current year data. There are three financial statements presented: the Statement of Net Assets; the Statement of Revenues, Expenses and Changes in Net Assets; and, the Statement of Cash Flows. This discussion and analysis of the College's financial statements provides an overview of its financial activities for the year. Comparative data is provided for fiscal year 2003 and fiscal year 2004. \r\n \r\nStatement ofNet Assets \r\n \r\nThe Statement of Net Assets presents the assets, liabilities, and net assets of the College as of the end of the fiscal year. The Statement of Net Assets is a point of time financial statement. The purpose of the Statement of Net Assets is to present to the readers of the financial statements a fiscal snapshot of Gordon College. The Statement of Net Assets presents end-of-year data concerning Assets (current and noncurrent), Liabilities (current and noncurrent), and Net Assets (assets minus liabilities). The difference between current and noncurrent assets will be discussed in the Notes to the Financial Statements. \r\n \r\nFrom the data presented, readers of the Statement of Net Assets are able to determine the assets available to continue the operations of the institution. They are also able to determine how much the institution owes vendors. \r\n \r\nFinally, the Statement of Net Assets provides a picture of the net assets (assets minus liabilities) and their availability for expenditure by the institution. Net assets are divided into three major categories. The first category, invested in capital assets, net of debt, provides the institution's equity in property, plant and equipment owned by the institution. The next asset category is \r\n \r\n- 1- \r\n \r\n restricted net assets. Expendable restricted net assets are available for expenditure by the institution but must be spent for purposes as determined by donors and/or external entities that have placed time or purpose restrictions on the use of the assets. The final category is unrestricted net assets. Unrestricted net assets are available to the institution for any lawful purpose of the institution. \r\n \r\nStatement of Net Assets, Condensed (thousands of dollars) \r\n \r\nJune 30, 2004 \r\n \r\nJune 30, 2003 \r\n \r\nAssets Current Assets Capital Assets, Net Other Assets \r\n \r\n$ \r\n \r\n6,348 \r\n \r\n$ \r\n \r\n5,289 \r\n \r\n27,081 \r\n \r\n27,928 \r\n \r\n10 \r\n \r\n11 \r\n \r\nTotal Assets \r\n \r\n$ \r\n \r\n33 439 \r\n \r\n$ \r\n \r\n33,228 \r\n \r\nLiabilities Current Liabilities Noncurrent Liabilities \r\n \r\n$ \r\n \r\n2,628 \r\n \r\n$ \r\n \r\n1,905 \r\n \r\n40 \r\n \r\n102 \r\n \r\nTotal Liabilities \r\n \r\n$ \r\n \r\n2,668 \r\n \r\n$ \r\n \r\n2 007 \r\n \r\nNet Assets \r\n \r\nInvested in Capital Assets, Net of Debt \r\n \r\n$ \r\n \r\n27,081 \r\n \r\n$ \r\n \r\n27,928 \r\n \r\nRestricted - Expendable \r\n \r\n13 \r\n \r\n13 \r\n \r\nUnrestricted \r\n \r\n3 677 \r\n \r\n3,280 \r\n \r\nTotal Net Assets \r\n \r\n$ \r\n \r\n30 771 \r\n \r\n$ \r\n \r\n31,221 \r\n \r\nThe total assets of the institution increased by $211,546.42. This increase was due to an increase in current assets. \r\n \r\nThe total liabilities for the year increased by $661,433.20. The primary cause for the increase was in current liabilities. The change from prior year of $825,613.03 in funds held for other organizations contributed to the increase in total liabilities. The combination of the increase in total assets of $211,546.42 and the increase in total liabilities of $661,433.20 yields a decrease in total net assets of $449,886.78. The decrease in total net assets is primarily in the category of invested in capital assets, net of debt which decreased by $847,435.65. \r\n \r\nStatement ofRevenues, Expenses and Changes in Net Assets \r\n \r\nChanges in total net assets as presented on the Statement of Net Assets are based on the activity presented in the Statement of Revenues, Expenses and Changes in Net Assets. The purpose of the statement is to present the revenues received by the institution, both operating and nonoperating, and the expenses paid by the institution, operating and nonoperating, and any other \r\n \r\n- 11 - \r\n \r\n revenues, expenses, gains and losses received or spent by the institution. Generally speaking operating revenues are received for providing goods and services to the various customers and constituencies of the institution. Operating expenses are those expenses paid to acquire or produce the goods and services provided in return for the operating revenues, and to carry out the mission of the institution. Nonoperating revenues are revenues received for which goods and services are not provided. For example state appropriations are nonoperating because they are provided by the Legislature to the institution without the Legislature directly receiving commensurate goods and services for those revenues. \r\n \r\nStatement of Revenues, Expenses and Changes in Net Assets, Condensed (thousands of dollars) \r\n \r\nJune 30, 2004 \r\n \r\nJune 30, 2003 \r\n \r\nOperating Revenues Operating Expenses \r\n \r\n$ \r\n \r\n9,950 \r\n \r\n$ \r\n \r\n9,137 \r\n \r\n20,736 \r\n \r\n19 891 \r\n \r\nOperating Loss \r\n \r\n$ \r\n \r\n-10,786 \r\n \r\n$ \r\n \r\n-10,754 \r\n \r\nNonoperating Revenues and Expenses \r\n \r\n10,336 \r\n \r\n10,375 \r\n \r\nOther Revenues, Expenses, Gains or Losses \r\n \r\n12,037 \r\n \r\nIncrease (Decrease) in Net Assets \r\n \r\n$ \r\n \r\n-450 \r\n \r\n$ \r\n \r\n11,658 \r\n \r\nNet Assets at Beginning of Year, as Originally Reported \r\n \r\n$ \r\n \r\n31,221 \r\n \r\n$ \r\n \r\n18,600 \r\n \r\nPrior Period Adjustment \r\n \r\n963 \r\n \r\nNet Assets at Beginning of Year Restated \r\n \r\n$ \r\n \r\n31,221 \r\n \r\n$ \r\n \r\n19 563 \r\n \r\nNet Assets at End of Year \r\n \r\n$ \r\n \r\n30 771 \r\n \r\n$ \r\n \r\n31,221 \r\n \r\nThe Statement of Revenues, Expenses and Changes in Net Assets reflects a decrease in the net assets at the end of the year. Some highlights of the information presented on the Statement of Revenues, Expenses and Changes in Net Assets are as follows: \r\n \r\n- lll - \r\n \r\n Revenue By Source (thousands of dollars) For The Years Ended June 30, 2004 and June 30, 2003 \r\n \r\nJune 30, 2004 \r\n \r\nJune 30, 2003 \r\n \r\nOperating Revenue Tuition and Fees Grants and Contracts Rents and Royalties Sales and Services of Educational Departments Auxiliary Other \r\n \r\n$ \r\n \r\n2,892 \r\n \r\n$ \r\n \r\n2,707 \r\n \r\n3,243 \r\n \r\n3,090 \r\n \r\n2 \r\n \r\n3,474 339 \r\n \r\n15 3,274 \r\n51 \r\n \r\nTotal Operating Revenue \r\n \r\n$ \r\n \r\n9 950 \r\n \r\n$ \r\n \r\n9137 \r\n \r\nNonoperating Revenue State Appropriations Investment Income Other \r\n \r\n$ \r\n \r\n10,367 \r\n \r\n$ \r\n \r\n10,486 \r\n \r\n51 \r\n \r\n112 \r\n \r\n-82 \r\n \r\n-223 \r\n \r\nTotal Nonoperating Revenue \r\n \r\n$ \r\n \r\n10,336 \r\n \r\n$ \r\n \r\n10 375 \r\n \r\nCapital Gifts and Grants State Other \r\n \r\n$ \r\n \r\n0 \r\n \r\n$ \r\n \r\n12,016 \r\n \r\n21 \r\n \r\nTotal Capital Gifts and Grants \r\n \r\n$ \r\n \r\n0 \r\n \r\n$ \r\n \r\n12,037 \r\n \r\nTotal Revenues \r\n \r\n$ \r\n \r\n20,286 \r\n \r\n$ \r\n \r\n31 549 \r\n \r\nExpenses (By Functional Classification) (thousands of dollars) For The Years Ended June 30, 2004 and June 30, 2003 \r\n \r\nJune 30, 2004 \r\n \r\nJune 30, 2003 \r\n \r\nOperating Expenses Instruction Public Service Academic Support Student Services Institutional Support Plant Operations and Maintenance Scholarships and Fellowships Auxiliary Enterprises \r\n \r\n$ \r\n \r\n7,084 \r\n \r\n$ \r\n \r\n8,293 \r\n \r\n5 \r\n \r\n1,657 \r\n \r\n1,418 \r\n \r\n1,399 \r\n \r\n1,388 \r\n \r\n2,155 \r\n \r\n2,245 \r\n \r\n3,757 \r\n \r\n2,273 \r\n \r\n1,522 \r\n \r\n1,480 \r\n \r\n3 157 \r\n \r\n2 794 \r\n \r\nTotal Operating Expenses \r\n \r\n$ \r\n \r\n20.736 \r\n \r\n$ \r\n \r\n19 891 \r\n \r\n- IV - \r\n \r\n The increase in operating revenue is due in large part to increases in tuition and fees as a result of increased enrollment. With the tuition and fee increases for Fiscal Year 2004 Gordon College's revenue reflects an increase of $277,722.66, helping to offset the increased expenditures due to improvements in technology and generally higher costs. \r\n \r\nThe compensation and employee benefits category increased by approximately $238,337.93. The increase reflects an increased cost of health insurance for the employees of the institution. \r\n \r\nUtilities decreased by $48,022.16 during the past year. The decrease was primarily associated with the negotiation of a new contract with the gas utility company. \r\n \r\nUnder nonoperating revenues (expenses) state appropriations decreased by $118,821.33. The reduction of state appropriations system-wide, due to a sluggish economy, has created a challenge for all institutions of the University System of Georgia and, thus, for Gordon College. We are hopeful that the economy is now on an upward trend. \r\n \r\nStatement of Cash Flows \r\n \r\nThe final statement presented by Gordon College is the Statement of Cash Flows. The Statement of Cash Flows presents detailed information about the cash activity of the institution during the year. The statement is divided into five parts. The first part deals with operating cash flows and shows the net cash used by the operating activities of the institution. The second section reflects cash flows from noncapital financing activities. This section reflects the cash received and spent for nonoperating, noninvesting, and noncapital financing purposes. The third section deals with cash flows from capital and related financing activities. This section deals with the cash used for the acquisition and construction of capital and related items. The fourth section reflects the cash flows from investing activities and shows the purchases, proceeds, and interest received from investing activities. The fifth section reconciles the net cash used to the operating income or loss reflected on the Statement of Revenues, Expenses and Changes in Net Assets. \r\n \r\nCash Flows for the Years Ended June 30, 2004 and June 30, 2003, Condensed (thousands of dollars) \r\n \r\nJune 30, 2004 \r\n \r\nJune 30, 2003 \r\n \r\nCash Provided (Used) By: \r\n \r\nOperating Activities \r\n \r\n$ \r\n \r\nNoncapital Financing Activities \r\n \r\nCapital and Related Financing Activities \r\n \r\nInvesting Activities \r\n \r\n-9,135 \r\n \r\n$ \r\n \r\n11,586 \r\n \r\n-539 \r\n \r\n51 \r\n \r\n-9,711 10,373 -1,860 \r\n112 \r\n \r\nNet Change in Cash Cash, Beginning of Year \r\n \r\n$ \r\n \r\n1,963 \r\n \r\n$ \r\n \r\n-1,086 \r\n \r\n3 728 \r\n \r\n4 814 \r\n \r\nCash, End of Year \r\n \r\n$====5=6=9-1 \r\n \r\n$===3~72=8 \r\n \r\n-v- \r\n \r\n Capital Assets The College had no significant capital asset additions in fiscal year 2004. For additional information concerning Capital Assets, see Notes 1 and 6 in the Notes to the Financial Statements. Long-Term Debt Gordon College had a total Long-Term Debt of $243,263.84 of which $202,944.94 was reflected as current liability at June 30, 2004. For additional information concerning Long-Term Debt see Notes 1 and 8 in the Notes to the Financial Statements. Component Units In compliance with GASB Statement No. 39, Gordon College has included the financial statements and notes for all required component units for fiscal year 2004. The Gordon College Foundation had unrestricted assets of $4,696,760 as of December 31, 2003. Details are available in Note 1, Summary of Significant Accounting Policies and Note 14, Component Units. Economic Outlook The College is not aware of any currently known facts, decisions, or conditions that are expected to have a significant effect on the financial position or results of operations during this fiscal year beyond those unknown variations having a global effect on virtually all types of business operations. The College's overall financial position is strong. The College anticipates the current fiscal year will be much like last and will maintain a close watch over resources to maintain the College's ability to react to unknown internal and external issues. \r\nDr. Lawrence V. Weill, President Gordon College \r\n- Vl - \r\n \r\n BASIC FINANCIAL STATEMENTS - 1- \r\n \r\n GORDON COLLEGE STATEMENT OF NET ASSETS \r\nJUNE 30. 2004 \r\nASSETS \r\nCurrent Assets Cash and Cash Equivalents Investments Accounts Receivable, Net Federal Financial Assistance Other Prepaid Items Inventories \r\nTotal Current Assets \r\nNoncurrent Assets Notes Receivable Capital Assets, Net \r\nTotal Noncurrent Assets Total Assets \r\nLIABILITIES \r\nCurrent Liabilities Salaries Payable Accounts Payable Deferred Revenue Funds Held for Others Compensated Absences Other Liabilities \r\nTotal Current Liabilities \r\nNoncurrent Liabilities Compensated Absences Long-Term Liabilities \r\nTotal Noncurrent Liabilities \r\nTotal Liabilities \r\nNET ASSETS \r\nInvested in Capital Assets, Net of Related Debt Restricted for: \r\nExpendable Un restricted \r\nTotal Net Assets \r\n \r\nEXHIBIT \"A\" \r\n \r\nPRIMARY GOVERNMENT \r\n \r\nCOMPONENT UNIT \r\nGORDON COLLEGE FOUNDATION \r\n \r\n$ 5,690,998.56 $ 253,613.00 4,520,844.00 \r\n39,015.98 321,185.31 \r\n9,048.06 287,999.36 \r\n$ 6,348,247.27 $ 4,774,457.00 \r\n \r\n$ \r\n \r\n10,632.54 \r\n \r\n27,080,721.92 $ \r\n \r\n148,562.00 \r\n \r\n$ 27,091,354.46 $ 148,562.00 \r\n \r\n$ 33,439,601.73 $ 4,923,019.00 \r\n \r\n$ \r\n \r\n47,972.28 \r\n \r\n681,747.25 $ \r\n \r\n641,350.85 \r\n \r\n921,171.99 \r\n \r\n202,944.94 \r\n \r\n132,686.22 \r\n \r\n$ 2,627,873.53 $ \r\n \r\n10,486.00 10,486.00 \r\n \r\n$ \r\n \r\n40,318.90 \r\n \r\n$ \r\n \r\n$ \r\n \r\n40,318.90 $ \r\n \r\n$ 2,668,192.43 $ \r\n \r\n67,211.00 67,211.00 77,697.00 \r\n \r\n$ 27,080,721.92 $ 148,562.00 \r\n \r\n13,052.91 3,677,634.47 \r\n \r\n4,696,760.00 \r\n \r\n$ 30,771,409.30 $ 4,845,322.00 \r\n \r\nSee Independent Accountant's Combined Report on Review of Basic Financial Statements and Supplementary Information. \r\nThe notes to the financial statements are an integral part of this statement. -3- \r\n \r\n GORDON COLLEGE STATEMENT OF REVENUES. EXPENSES AND CHANGES IN NET ASSETS \r\nYEAR ENDED JUNE 30. 2004 \r\n \r\nEXHIBIT\"B\" \r\n \r\nOPERATING REVENUES \r\nStudent Tuition and Fees Less: Scholarship Allowances \r\nGifts and Contributions Grants and Contracts \r\nFederal Rents and Royalties Auxiliary Enterprises \r\nResidence Halls Bookstore Food Services Parking/Transportation Intercollegiate Athletics Other Operating Revenues \r\nTotal Operating Revenues \r\nOPERATING EXPENSES \r\nSalaries Faculty Staff \r\nEmployee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation Payments to or on Behalf of Gordon College \r\nTotal Operating Expenses \r\nOperating Income (Loss) \r\nNONOPERATING REVENUES (EXPENSES) \r\nState Appropriations Interest and Other Investment Income Other Nonoperating Revenues \r\nNet Nonoperating Revenues \r\nIncrease (Decrease) in Net Assets \r\nNet Assets - Beginning of Year \r\n \r\nPRIMARY GOVERNMENT \r\n \r\nCOMPONENT UNIT \r\nGORDON COLLEGE FOUNDATION \r\n \r\n$ 4,530,251.29 -1,637,772.54 $ \r\n3,243,010.59 1,653.50 \r\n711,666.14 1,488,432.34 \r\n943,073.08 84,789.24 \r\n246,135.13 339,387.10 \r\n$ 9,950,625.87 $ \r\n \r\n78,423.00 \r\n289.00 78,712.00 \r\n \r\n$ 5,009,111.87 3,688,906.75 2,217,985.05 2,225.00 92,515.33 1,674,097.23 1,051,055.24 5,709,371.80 $ 1,290,912.86 \r\n$ 20,736,181.13 $ \r\n$ -10,785,555.26 $ \r\n \r\n17,442.00 121,980.00 139,422.00 -60,710.00 \r\n \r\n$ 10,367,465.85 50,970.38 $ -82,767.75 \r\n \r\n710,113.00 \r\n \r\n$ 10,335,668.48 $ 710,113.00 \r\n \r\n$ \r\n \r\n-449,886.78 $ \r\n \r\n649,403.00 \r\n \r\n31,221,296.08 \r\n \r\n4,195,919.00 \r\n \r\nNet Assets - End of Year \r\nSee Independent Accountant's Combined Report on Review of Basic Financial Statements and Supplementary Information. \r\nThe notes to the financial statements are an integral part of this statement. -4- \r\n \r\n$ 30,771,409.30 $ 4,845,322.00 \r\n \r\n GORDON COLLEGE STATEMENT OF CASH FLOWS \r\nYEAR ENDED JUNE 30, 2004 \r\nCASH FLOWS FROM OPERATING ACTIVITIES Tuition and Fees Grants and Contracts Payments to Suppliers Payments to Employees Payments for Scholarships and Fellowships Auxiliary Enterprise Charges: Residence Halls Bookstore Food Services Parking/Transportation Intercollegiate Athletics Other Receipts (Payments) \r\nNet Cash Provided (Used) by Operating Activities \r\nCASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES State Appropriations Agency Funds Transactions \r\nNet Cash Flows Provided (Used) by Noncapital Financing Activities \r\nCASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from Sale of Capital Assets Purchases of Capital Assets \r\nNet Cash Provided (Used) by Capital and Related Financing Activities \r\nCASH FLOWS FROM INVESTING ACTIVITIES Interest on Investments \r\nNet Increase (Decrease) in Cash \r\nCash and Cash Equivalents - Beginning of Year \r\nCash and Cash Equivalents - End of Year \r\nRECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: \r\nOperating Income (Loss) Adjustments to Reconcile Net Income (Loss) to Net Cash \r\nProvided (Used) by Operating Activities Depreciation Change in Assets and Liabilities: Accounts Receivable, Net Inventories Prepaid Items Accounts Payable Salaries Payable Deferred Revenue Other Liabilities Compensated Absences \r\nNet Cash Provided (Used) by Operating Activities \r\nSee Independent Accountant's Combined Report on Review of Basic Financial Statements and Supplementary Information. \r\nThe notes to the financial statements are an integral part of this statement. - 5- \r\n \r\nEXHIBIT\"C\" \r\n \r\n$ 2.920,531.81 3. 745.686 60 -9.131.098.85 -8.755,627.80 -1,674,097.23 \r\n711,666.14 1,488,432.34 \r\n943,073.08 84,789.24 \r\n246,135.13 285,398.68 \r\n$ -9, 135,110.86 \r\n \r\n$ 10,367,465.85 1,218,677.31 \r\n$ 11,586,143.16 \r\n \r\n$ \r\n \r\n2,037.51 \r\n \r\n-541,247.36 \r\n \r\n$ \r\n \r\n-539,209.85 \r\n \r\n$ \r\n \r\n50,970.38 \r\n \r\n$ 1,962,792.83 \r\n \r\n$ 3,728,205.73 \r\n \r\n$ 5,690,998.56 \r\n \r\n$ -10,785,555.26 \r\n1,290,912.86 \r\n467,082.66 33,572.09 -6,716.06 -87,784.21 12,962.97 19,615.52 -8,629.28 -70,572.15 \r\n$ -9, 135,110.86 \r\n \r\n GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nNATURE OF OPERATIONS Gordon College serves the state, and national communities by providing its students with academic instruction that advances fundamental knowledge, and by disseminating knowledge to the people of Georgia and throughout the country. \r\nREPORTING ENTITY Gordon College is one of thirty-four (34) State supported member institutions of higher education in Georgia which comprise the University System of Georgia, an organizational unit of the State of Georgia. The accompanying financial statements reflect the operations of Gordon College 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. Gordon College does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, Gordon College is considered an organizational unit of the Board of Regents of the University System of Georgia reporting entity for financial reporting purposes because of the significance of its legal, operational, and financial relationships with the Board of Regents as defined in Section 2100 of the Governmental Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial Reporting Standards. \r\nThe Board of Regents of the University System of Georgia (and thus Gordon College) is required to implement the Governmental Accounting Standards Board (GASB) Statement No. 39 Determining Whether Certain Organizations are Component Units - an amendment of Statement No. 14, for fiscal year 2004. This statement requires the inclusion of the financial statements for Foundations and affiliated organizations that qualify as component units of the institution. These statements (Statement of Net Assets and Statement of Revenues, Expenses and Changes in Net Assets) are reported discretely in the College's financial statements. For fiscal year 2004, Gordon College is reporting the activity for the Gordon College Foundation. \r\nSee Note 14, for additional component unit disclosures. \r\nFINANCIAL STATEMENT PRESENTATION In June 1999, the GASB issued Statement No. 34, Basic Financial Statements and Management Discussion and Analysis for State and Local Governments. This was followed in November 1999 by GASB Statement No. 35, Basic Financial Statements and Management's Discussion and Analysis for Public Colleges and Universities. The State of Georgia implemented GASB Statement No. 34 as of and for the year ended June 30, 2002. As an organizational unit of the State of Georgia, the College also adopted GASB Statements No. 34 and No. 35 as amended by \r\n-6- \r\n \r\n GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nFINANCIAL STATEMENT PRESENTATION GASB Statements No. 37 and No. 38. The financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) as prescribed by the GASB and are presented as required by these standards to provide a comprehensive, entity-wide perspective of the College's assets, liabilities, net assets, revenues, expenses, changes in net assets, cash flows, and replaces the fund group perspective previously required. \r\nGAAP requires that the reporting of summer school revenues and expenses be between fiscal years rather than in one fiscal year. Due to the lack of materiality, Institutions of the University System of Georgia will continue to report summer revenues and expenses in the year in which the predominate activity takes place. \r\nBASIS OF ACCOUNTING For financial reporting purposes, the College considered a special-purpose government engaged only in business-type activities. Accordingly, the College's financial statements have been presented using the economic resources measurement focus and the accrual basis of accounting, except as noted in the preceding paragraph. Under the accrual basis, revenues are recognized when earned, and expenses are recorded when an obligation has been incurred. All significant intra-College transactions have been eliminated. \r\nThe College has the option to apply all Financial Accounting Standards Board (FASB) pronouncements issued after November 30, 1989, unless FASB conflicts with GASB. The College has elected to not apply FASB pronouncements issued after the applicable date. \r\nCASH AND CASH EQUIVALENTS Cash and Cash Equivalents consist of petty cash, demand deposits and time deposits in authorized financial institutions, and cash management pools that have the general characteristics of demand deposit accounts. This includes the Board of Regents Short-Term Investment Pool. \r\nINVESTMENTS The University accounts for its investments at fair value in accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools. Changes in unrealized gain (loss) on the carrying value of investments are reported as a component of investment income in the statements of revenues, expenses and changes in net assets. \r\nACCOUNTS RECEIVABLE Accounts receivable consists of tuition and fee charges to students and auxiliary enterprise services provided to students, faculty and staff, the majority of each residing in the State of Georgia. Accounts receivable also include amounts due from the Federal government, state and \r\n \r\n-7- \r\n \r\n GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nACCOUNTS RECEIVABLE local governments, or private sources, in connection with reimbursement of allowable expenditures made pursuant to the College's grants and contracts. Accounts receivable are recorded net of estimated uncollectible amounts. \r\nINVENTORIES Consumable supplies are carried at the lower of cost or market using the weighted average method. \r\nResale Inventories are valued at cost using the average-cost basis. \r\nCAPITAL ASSETS Capital assets are recorded at cost at the date of acquisition, or fair market value at the date of donation in the case of gifts. For equipment, the College's capitalization policy includes all items with a unit cost of $5,000.00 or more, and an estimated useful life of greater than one year. Renovations to buildings, infrastructure, and land improvements that exceed $100,000.00 and significantly increase the value or extend the useful life of the structure are capitalized. Routine repairs and maintenance are charged to operating expense in the year in which the expense was incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally 40 to 60 years for buildings, 20 to 25 years for infrastructure and land improvements, 10 years for library books, and 3 to 20 years for equipment. Residual values will generally be 10% of historical costs for infrastructure, buildings and building improvements, and facilities and other improvements. \r\nTo obtain the total picture of plant additions in the University System, it is necessary to look at the activities of the Georgia State Financing and Investment Commission (GSFIC) - an organization that is external to the System. GSFIC issues bonds for and on behalf of the State of Georgia, pursuant to powers granted to it in the Constitution of the State of Georgia and the Act creating the GSFIC. The bonds so issued constitute direct and general obligations of the State of Georgia, to the payment of which the full faith, credit and taxing power of the State are pledged. \r\nEffective July 1, 2001, the GSFIC retains construction in progress on their books throughout the construction period and transfers the entire project to Gordon College when complete. For the year ended June 30, 2004, GSFIC did not transfer any capital additions to Gordon College. \r\nDEFERRED REVENUES Deferred revenues include amounts received for tuition and fees and certain auxiliary activities prior to the end of the fiscal year but related to the subsequent accounting period. Deferred revenues also include amounts received from grant and contract sponsors that have not yet been earned. \r\n \r\n-8- \r\n \r\n GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nCOMPENSATED ABSENCES Employee vacation pay is accrued at year-end for financial statement purposes. The liability and expense incurred are recorded at year-end as accrued vacation payable in the Statement of Net Assets, and as a component of compensation and benefit expense in the Statements of Revenues, Expenses and Changes in Net Assets. Gordon College had accrued liability for compensated absences in the amount of $313,835.99 as of July 1, 2003. For fiscal year 2004, $273,172.18 was earned in compensated absences and employees were paid $343,744.33, for a net decrease of $70,572.15. The ending balance as of June 30, 2004 in accrued liability for compensated absences was $243,263.84. Compensated absences include a current liability of $202,944.94. \r\n \r\nNONCURRENT LIABILITIES Noncurrent liabilities include (1) liabilities that will not be paid within the next fiscal year; and (2) other liabilities that, although payable within one year, are to be paid from funds that are classified as noncurrent assets. \r\n \r\nNET ASSETS The College's net assets are classified as follows: \r\n \r\nInvested in capital assets, net of related debt: This represents the College's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. The term \"debt obligations\" as used in this definition does not include debt of the GSFIC as discussed previously in Note 1 - Capital Assets section. \r\n \r\nRestricted net assets - expendable: Restricted expendable net assets include resources in which the College is legally or contractually obligated to spend resources in accordance with restrictions imposed by external third parties. \r\n \r\nExpendable Restricted Net Assets include the following: \r\n \r\nJune 30, 2004 \r\n \r\nFederal Loans \r\n \r\n$====13'=\"',==05==2=='9. ==1 \r\n \r\nUnrestricted net assets: Unrestricted net assets represent resources derived from student tuition and fees, state appropriations, and sales and services of educational departments and auxiliary enterprises. These resources are used for transactions relating to the educational and general operations of the College, and may be used at the discretion of the governing board to meet current expenses for those purposes, except for unexpended state appropriations (surplus) of \r\n \r\n-9- \r\n \r\n GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nNET ASSETS $12,289.52. Unexpended state appropriations must be refunded to the Board of Regents of the University System of Georgia - Administrative Central Office for remittance to the Office of Treasury and Fiscal Services. These resources also include auxiliary enterprises, which are substantially self-supporting activities that provide services for students, faculty and staff. \r\n \r\nUnrestricted Net Assets includes the following items which are quasi-restricted by management. \r\n \r\nJune 30, 2004 \r\n \r\nR\u0026 RReserve Reserve for Encumbrances Reserve for Inventory Other Unrestricted \r\n \r\n$ 2,523,320.87 1,801,675.22 42,355.49 -689,717.11 \r\n \r\nTotal Unrestricted Net Assets \r\n \r\n$ 3,677,634.47 \r\n \r\nWhen an expense is incurred that can be paid using either restricted or unrestricted resources, the College's policy is to first apply the expense towards unrestricted resources, and then towards restricted resources. \r\n \r\nINCOME TAXES Gordon College, as a political subdivision of the State of Georgia, is excluded from Federal income taxes under Section 115(1) of the Internal Revenue Code, as amended. \r\n \r\nCLASSIFICATION OF REVENUES The College has classified its revenues as either operating or nonoperating revenues in the Statement of Revenues, Expenses and Changes in Net Assets according to the following criteria: \r\n \r\nOperating revenues: Operating revenues include activities that have the characteristics of exchange transactions, such as (1) student tuition and fees, net of scholarship allowances, (2) sales and services of auxiliary enterprises, (3) most Federal, state and local grants and contracts and Federal appropriations, and (4) interest on institutional student loans. \r\n \r\nNonoperating revenues: Nonoperating revenues include activities that have the characteristics of nonexchange transactions, such as gifts and contributions, and other revenue sources that are defined as nonoperating revenues by GASB No. 9, Reporting Cash Flows of Proprietary and Nonexpendable Trust Funds and Governmental Entities That Use Proprietary Fund Accounting, and GASB No. 34, such as state appropriations and investment income. \r\n \r\nSCHOLARSHIP ALLOWANCES Student tuition and fee revenues, and certain other revenues from students, are reported at gross with a contra revenue account of scholarship allowances in the Statement of Revenues, Expenses \r\n \r\n- 10 - \r\n \r\n GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nSCHOLARSHIP ALLOWANCES and Changes in Net Assets. Scholarship allowances are the difference between the stated charge for goods and services provided by the College, and the amount that is paid by students and/or third parties making payments on the students' behalf. Certain governmental grants, such as Pell grants, and other Federal, state or nongovernmental programs, are recorded as either operating or nonoperating revenues in the College's financial statements. To the extent that revenues from such programs are used to satisfy tuition and fees and other student charges, the College has recorded contra revenue for scholarship allowances. \r\nNOTE 2: CASH AND CASH EQUIVALENTS; OTHER DEPOSITS; AND INVESTMENTS \r\nSTATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belonging to the State of Georgia (and thus Gordon College) cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral any one or more of the following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59: \r\n1. Bonds, bill, certificates of indebtedness, notes, or other direct obligations of the United States or of the State of Georgia. \r\n2. Bonds, bills, certificates of indebtedness, notes, or other obligations of the counties or municipalities of the State of Georgia. \r\n3. Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose. \r\n4. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia. \r\n5. Bonds, bills, certificates of indebtedness, notes, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest, 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\n6. 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 (and thus Gordon College), the option of exempting demand deposits from the collateral requirements. \r\n- 11 - \r\n \r\n GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 2: CASH AND CASH EQUIVALENTS; OTHER DEPOSITS; AND INVESTMENTS \r\n \r\nSTATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES The Treasurer of the Board of Regents is responsible for all details relative to furnishing the required depository protection for all units of the University System of Georgia. \r\n \r\nCATEGORIZATION OF DEPOSITS Cash deposits are categorized by risk as follows: \r\n \r\nCategory 1 - Amounts covered by depository insurance or collateralized with securities (at fair value) held by the entity or by its agent in the entity's name. \r\n \r\nCategory 2 - Amounts collateralized with securities (at fair value) held by the pledging financial institution's trust department or agent in the entity's name. \r\n \r\nCategory 3 - Amounts collateralized with securities (at fair value) held by the pledging financial institution, or by its trust department or agent but not in the entity's name, and amounts uncollateralized. \r\n \r\nGordon College At June 30, 2004, the College's cash deposits were as follows: \r\n \r\nCash Deposits \r\n \r\nCarrying Amount \r\n \r\nBank Balances \r\n \r\nRisk Categories \r\n \r\n2 \r\n \r\n3 \r\n \r\n$ I 121,005.73 $ I 094,248.89 $ 100,000.00 $ 994 248 89 $.===0=.0-0 \r\n \r\nComponent Unit At June 30, 2004, Gordon College Foundation's cash deposits were as follows: \r\n \r\nCash Deposits \r\n \r\nCarrying Amount \r\n \r\nBank Balances \r\n \r\nRisk Categories \r\n \r\n2 \r\n \r\n3 \r\n \r\n$ 253,613.00 $ 253,613.00 $ 100 000 00 $ 153 613.00 $===0\"'=0\"\"\"0 \r\n \r\nCATEGORIZATION OF INVESTMENTS Investments are categorized as to credit risk within the three categories described below: \r\n \r\nCategory 1 - Insured or registered, or securities held by the entity or its agent in the entity's name. \r\nCategory 2 - Uninsured and unregistered, with securities held by the counter party's trust department or agent in the entity's name. \r\nCategory 3 - Uninsured and unregistered, with securities held by the counter party, or by its trust department or agent, but not in the entity's name. \r\n \r\n- 12 - \r\n \r\n GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 2: CASH AND CASH EQUIVALENTS; OTHER DEPOSITS; AND INVESTMENTS \r\n \r\nCATEGORIZATION OF INVESTMENTS \r\n \r\nGordon College At June 30, 2004, the College's investments consisted of the following: \r\n \r\nType of Investments \r\n \r\nCarrying Amount \r\n \r\nInvestments Not Subject to Categorizations: Board of Regents \r\nShort-Term Fund \r\n \r\n$ 4,567,767.83 \r\n \r\nFunds invested in an investment pool managed by another governmental entity are not required to be categorized since the College did not own any specific, identifiable investment securities of the pool. \r\n \r\nComponent Unit At June 30, 2004, Gordon College Foundation's investments consisted of the following: \r\n \r\nType of Investments \r\n \r\nCarrying \r\n \r\n2 \r\n \r\n3 \r\n \r\nAmount \r\n \r\nCorporate Bonds Corporate Obligations \r\n \r\n$ 200,000.00 $ 14,722.00 $ 2,706,122.00 \r\n \r\n0.00 $ 214,722.00 2,706,122.00 \r\n \r\nTotals \r\n \r\n$ 200 000.00 $ 2 720 844 00 $====0'.0~0 $ 2,920,844.00 \r\n \r\nInvestments Not Subject to Categorizations: Short-Term Investments \r\n \r\n1,600,000.00 \r\n \r\nTotal Investments \r\n \r\n$ 4,520 844 00 \r\n \r\nNOTE 3: ACCOUNTS RECEIVABLE \r\n \r\nAccounts receivable consisted of the following at June 30, 2004. \r\n \r\nStudent Tuition and Fees Auxiliary Enterprises and Other Operating Activities Federal, State and Private Funds Other \r\n \r\n$ 30,872.37 4,598.22 \r\n289,191.84 39,879.86 \r\n \r\nLess Allowance for Doubtful Accounts \r\n \r\n$ 364,542.29 4,341.00 \r\n \r\nNet Accounts Receivable \r\n \r\n$ 360,201.29 \r\n \r\n- 13 - \r\n \r\n GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 4: INVENTORIES \r\n \r\nInventories consisted of the following at June 30, 2004. \r\n \r\nBookstore Other \r\n \r\n$ 241,599.24 46,400.12 \r\n \r\nTotal \r\n \r\n$ 287,999.36 \r\n \r\nNOTE 5: NOTES/LOANS RECEIVABLE \r\n \r\nNotes/Loans receivable consisted of the following at June 30, 2004: \r\n \r\nPerkins Loans Nursing Loans \r\n \r\n$ \r\n \r\n8,916.49 \r\n \r\n1,716.05 \r\n \r\nTotal Notes/Loans Receivable \r\n \r\n$ 10,632.54 \r\n \r\nThe Federal Perkins Loan Program (the Program) comprise substantially all of the loans receivable at June 30, 2004. The Program provides for cancellation of a loan at rates of 10% to 30% per year up to a maximum of 100% if the participant complies with certain provisions. The Federal government reimburses the College for amounts cancelled under these provisions. As the College determines that loans are uncollectible and not eligible for reimbursement by the Federal government, the loans are written off and assigned to the U. S. Department of Education. \r\n \r\nNOTE 6: CAPITAL ASSETS \r\n \r\nFollowing are the changes in capital assets for the year ended June 30, 2004: \r\n \r\n- 14 - \r\n \r\n GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 6: CAPITAL ASSETS \r\n \r\nBeginning Balance July 1, 2003 \r\n \r\nAdditions \r\n \r\nReductions \r\n \r\nEnding Balance June 30, 2004 \r\n \r\nCapital Assets, Not Being Depreciated: \r\n \r\nLand \r\n \r\n$ 287,541.04 $ \r\n \r\nConstruction Work-In-Progress \r\n \r\n834,859.44 \r\n \r\n60,666.00 \r\n \r\n$ 348,207.04 \r\n \r\n6,592.50 $ 836,539.44 \r\n \r\n4,912.50 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n$ 1. 122,400.48 $ 67,258.50 $ 836,539.44 $ 353,119.54 \r\n \r\nCapital Assets, Being Depreciated: Infrastructure Building and Building Improvements Facilities and Other Improvements Equipment Library Collections \r\n \r\n$ 2,699,055.85 30,107,530.92 $ 1,125,187.35 3,803,747.97 2,328,616.55 \r\n \r\n998,706.44 \r\n218,926.03 $ 79 930.94 \r\n \r\n415,169.12 5,672.00 \r\n \r\n$ 2,699,055.85 31,106,237.36 1,125,187.35 3,607,504.88 2,402,875.49 \r\n \r\nTotal Assets Being Depreciated \r\n \r\n$ 40,064,138.64 $ 1,297,563.41 $ 420,841.12 $ 40,940,860.93 \r\n \r\nLess: Accumulated Depreciation: \r\n \r\nInfrastructure \r\n \r\n$ 1,183,177.21 $ \r\n \r\nBuildings and Building Improvements 7,546,897.06 \r\n \r\nFacilities and Other Improvements \r\n \r\n753,958.46 \r\n \r\nEquipment \r\n \r\n1,872,948.36 \r\n \r\nLibrary Collections \r\n \r\n1,901,400.46 \r\n \r\n97,595.74 662,867.89 \r\n60,199.45 375,874.98 $ \r\n94,374.80 \r\n \r\n330,363.86 5,672.00 \r\n \r\n$ 1,280,772.95 8,209,764.95 814,157.91 \r\n1,918,459.48 1,990,103.26 \r\n \r\nTotal Accumulated Depreciation \r\n \r\n$ 13,258,381.55 $ 1,290,912.86 $ 336,035.86 $14,213,258.55 \r\n \r\nTotal Capital Assets, Being Depreciated, \r\n \r\nNet \r\n \r\n$26,805,757.09 $ \r\n \r\n6,650.55 $ 84,805.26 $26,727,602.38 \r\n \r\nCapital Assets, Net \r\n \r\n$ 27 928.157.57 $ 73 909 05 $ 921 344 70 $ 27 080 721.92 \r\n \r\nNOTE 7: DEFERRED REVENUE \r\n \r\nDeferred revenue consisted of the following at June 30, 2004. \r\n \r\nPrepaid Tuition and Fees \r\n \r\n$ 641,350.85 \r\n \r\nNOTE 8: LONG-TERM LIABILITIES \r\n \r\nLong-Term liability activity for the year ended June 30, 2004 was as follows: \r\n \r\nOther Liabilities Compensated Absences \r\n \r\nBeginning \r\nBalance \r\nJuly 1. 2003 \r\n \r\nAdditions \r\n \r\nReductions \r\n \r\nEnding Balance June 30, 2004 \r\n \r\nCurrent Portion \r\n \r\n$ 313 835 99 $ 273 172.18 $ 343 744 33 $ 243 263 84 $ 202 944.94 \r\n \r\n- 15 - \r\n \r\n GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 9: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\nPlan Description Gordon College participates in the Teachers Retirement System of Georgia (TRS), a cost-sharing multiple-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia. TRS provides service retirement, disability retirement, and survivor's benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the TRS offices or the Georgia Department of Audits and Accounts. \r\n \r\nFunding Policy Employees of Gordon College who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. Gordon College makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. For fiscal year 2004, the employer contribution rate was 9.24% for covered employees. Employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2004 \r\n \r\n100% \r\n \r\n$ 466,188.64 \r\n \r\n2003 \r\n \r\n100% \r\n \r\n$ 456,222.56 \r\n \r\n2002 \r\n \r\n100% \r\n \r\n$ 414,185.31 \r\n \r\nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\n \r\nPlan Description Gordon College participates in the Employees' Retirement System of Georgia (ERS), a singleemployer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances for employees of the State of Georgia. \r\n \r\nThe benefit structure of ERS is defined by State statute and was significantly modified on July 1, 1982. Unless elected otherwise, an employee who currently maintains membership with ERS based upon State employment that started prior to July 1, 1982, is an \"old plan\" member subject to the plan provisions in effect prior to July 1, 1982. All other members are \"new plan\" members subject to the modified plan provisions. \r\n \r\n- 16 - \r\n \r\n GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 9: RETIREMENT PLANS \r\nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nPlan Description Under both the old plan and new plan, members become vested after 10 years of creditable service. A member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 65. If 10 years of service is completed and age 60 is reached, the member may retire with a reduced benefit. Additionally, there are certain provisions allowing for retirement after 25 years of service regardless of age. \r\nRetirement benefits paid to members are based upon a formula which considers the monthly average of the member's highest twenty-four consecutive calendar months of salary, the number of years of creditable service, and the member's age at retirement. Postretirement cost-of-living adjustments are also made to member's benefits. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension at reduced rates to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. \r\nIn addition, the ERS Board of Trustees created the Supplemental Retirement Benefit Plan (SRBP) effective January 1, 1998. The SRBP was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion ofERS. The purpose of SRBP is to provide retirement benefits to employees covered by ERS whose benefits are otherwise limited by IRC 415. \r\nThe ERS issues a financial report each fiscal year which may be obtained through ERS. \r\nFunding Policy As established by State statute, all full-time employees of the State of Georgia and its political subdivisions, who are not members of other state retirement systems, are eligible to participate in the ERS. Both employer and employee contributions are established by State statute. The College's payroll for the year ended June 30, 2004, for employees covered by ERS was $56,327.00. The College's total payroll for all employees was $8,698,018.62. \r\nUnder the old plan, member contributions consist of 7.16% of annual compensation. Of these member contributions, the employee pays the first 1.5% and the College pays the remainder on behalf of the employee. Under the new plan, member contributions consist solely of 1.5% of annual compensation paid by employee. The College also is required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation. For the year ended June 30, 2004, the ERS employer contribution rate for the College amounted to 10.51% of covered payroll and included the amounts contributed on behalf of the employee under the old plan referred to above. Employer contributions are also made on amounts paid for accumulated leave to retiring employees. \r\n- 17 - \r\n \r\n GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 9: RETIREMENT PLANS \r\nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nFunding Policy Total contributions to the plan made during fiscal year 2004 amounted to $6,765.50, of which $5,920.54 was made by the College and $844.96 was made by employees. These contributions met the requirements of the plan. \r\nActuarial and Trend Information Actuarial and historical trend information is presented in the ERS June 30, 2004, financial report which may be obtained through ERS. \r\nREGENTS RETIREMENT PLAN \r\nPlan Description The Regents Retirement Plan, a single-employer defined contribution plan, is an optional retirement plan that was created/established by the Georgia General Assembly in O.C.G.A. 4721-1 et. seq. and is administered by the Board of Regents of the University System of Georgia. O.C.G.A. 47-3-68(a) defines who may participate in the Regents Retirement Plan. An \"eligible university system employee\" is a faculty member or a principal administrator, as designated by the regulations of the Board of Regents. Under the Regents Retirement Plan, a plan participant may purchase annuity contracts from four approved vendors (AIG-VALIC, American Century, Fidelity, and TIAA-CREF) for the purpose of receiving retirement and death benefits. Benefits depend solely on amounts contributed to the plan plus investment earnings. Benefits are payable to participating employees or their beneficiaries in accordance with the terms of the annuity contracts. \r\nFunding Policy Gordon College makes monthly employer contributions for the Regents Retirement Plan at rates adopted by the Teachers Retirement System of Georgia Board of Trustees in accordance with State Statute and as advised by their independent actuary. The employer contributes 10.03% of the participating employee's earnable compensation. Employees contribute 5% of their eamable compensation. Amounts attributable to all plan contributions are fully vested and nonforfeitable at all times. \r\nGordon College and the covered employees made the required contributions of $279,471.23 (10.03%) and $139,318.47 (5%), respectively. \r\nAIG-VALIC, American Century, Fidelity, and TIAA-CREF have separately issued financial reports which may be obtained through their respective corporate offices. \r\n \r\n- 18 - \r\n \r\n GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 9: RETIREMENT PLANS \r\nGEORGIA DEFINED CONTRIBUTION PLAN \r\nPlan Description Gordon College participates in the Georgia Defined Contribution Plan (GDCP) which is a singleemployer defined contribution plan established by the General Assembly of Georgia for the purpose of providing retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees of the Employees' Retirement System of Georgia. \r\nBenefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board of Trustees. If a member has less than $ 3,500.00 credited to his/her account, the Board of Trustees has the option of requiring a lump sum distribution to the member in lieu of making periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary. Benefit provisions are established by State statute. \r\nContributions and Vesting Member contributions are seven and one-half percent (7.5%) of gross salary. There are no employer contributions. Contribution rates are established by State statute. Earnings are credited to each member's account in a manner established by the Board of Trustees. Upon termination of employment, the amount of the member's account is refundable upon request by the member. \r\nTotal contributions made by employees during fiscal year 2004 amounted to $20,623.56 which represents 7.5% of covered payroll. These contributions met the requirements of the plan. \r\nThe Georgia Defined Contribution Plan issues a financial report each fiscal year, which may be obtained from the ERS offices. \r\nNOTE 10: RISK MANAGEMENT \r\nThe University System of Georgia offers its employees and retirees access to two different selfinsured healthcare plan options - a PPO/PPO Consumer healthcare plan, and an indemnity healthcare plan. Gordon College and participating employees and retirees pay premiums to either of the self-insured healthcare plan options to access benefits coverage. The respective self-insured healthcare plan options are included in the financial statements of the Board of Regents of the University System of Georgia - University System Office. All units of the University System of Georgia share the risk of loss for claims associated with these plans. The reserves for these two plans are considered to be a self-sustaining risk fund. Both self-insured \r\n- 19 - \r\n \r\n GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 10: RISK MANAGEMENT \r\nhealthcare plan options provide a maximum lifetime benefit of $2,000,000.00 per person. The Board of Regents has contracted with Blue Cross Blue Shield of Georgia, a wholly owned subsidiary of WellPoint, to serve as the claims administrator for the two self-insured healthcare plan products. In addition to the two different self-insured healthcare plan options offered to the employees of the University System of Georgia, two fully insured HMO healthcare plan options are also offered to System employees. \r\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. Gordon College, as an organizational unit of the Board of Regents of the University System of Georgia, is part of the State of Georgia reporting entity, and as such, is covered by the State of Georgia risk management program administered by DOAS. Premiums for the risk management program are charged to the various state organizations by DOAS to provide claims servicing and claims payment. \r\nA self-insured program of professional liability for its employees was established by the Board of Regents of the University System of Georgia under powers authorized by the Official Code of Georgia Annotated Section 45-9-1. The program insures the employees to the extent that they are not immune from liability against personal liability for damages arising out of the performance of their duties or in any way connected therewith. The program is administered by DOAS as a Self-Insurance Fund. \r\nNOTE 11: CONTINGENCIES \r\nAmounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. This could result in refunds to the grantor agency for any 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 Gordon College expects such amounts, if any, to be immaterial to its overall financial position. \r\nLitigation, claims and assessments filed against Gordon College (an organizational unit of the Board of Regents of the University System of Georgia), if any, are generally considered to be actions against the State of Georgia. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 2004. \r\n- 20 - \r\n \r\n GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 12: POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS \r\nPursuant to the general powers conferred by the Official Code of Georgia Annotated Section 203-31, the Board of Regents of the University System of Georgia has established group health and life insurance programs for regular employees of the University System of Georgia. It is the policy of the Board of Regents to permit employees of the University System of Georgia eligible for retirement or that become permanently and totally disabled to continue as members of the group health and life insurance programs. The policies of the Board of Regents of the University System of Georgia define and delineate who is eligible for these post-employment health and life insurance benefits. Organizational units of the Board of Regents of the University System of Georgia are on a pay as you go basis to finance the employer portion for group insurance for affected individuals. With regard to life insurance, the employer covers the total cost for $25,000.00 for basic life insurance. If an individual elects to have supplemental, and/or, dependent life insurance coverage, such costs are borne entirely by the employee. \r\nAs of June 30, 2004, there were 23 employees who had retired or were disabled that were receiving these post-employment health and life insurance benefits. For the year ended June 30, 2004, Gordon College recognized as incurred $75,952.14 of expenses, which was net of $18,012.40 of participant contributions. \r\nNOTE 13: NATURAL CLASSIFICATIONS WITH FUNCTIONAL CLASSIFICATIONS \r\nThe College's operating expenses by functional classification are shown below: \r\n \r\n- 21 - \r\n \r\n GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 13: NATURAL CLASSIFICATIONS WITH FUNCTIONAL CLASSIFICATIONS \r\n \r\nStatement of Operating Expenses - Natural vs Functional Classifications For the Fiscal Year Ended June 30, 2004 \r\n \r\nFunctional Classification \r\n \r\nNatural Classification \r\nSalaries Faculty Staff \r\nEmployee Benefits Other Personal Services Travel Scholarships and \r\nFellowships Utilities Supplies and Other \r\nServices Depreciation \r\nTotal Operating Expenses \r\n \r\nInstruction \r\n \r\nPublic Service \r\n \r\nAcademic Su1mort \r\n \r\nStudent Services \r\n \r\nInstitutional Su1mort \r\n \r\n$ 5,00I,793.37 247,079.78 \r\n1,247,679.59 $ \r\n28,686.15 \r\n49,831.75 \r\n395,202.30 114 037.76 \r\n$ 7 084 310.70 $ \r\n \r\n$ 751,208.81 $ 749,788.18 $ 916,192.76 \r\n \r\n192.14 \r\n \r\nI9I,826.08 \r\n \r\nI99,71 l.55 \r\n \r\n30I,996.97 \r\n \r\n1,280.00 \r\n \r\n7,637.15 \r\n \r\n25,242.30 \r\n \r\n23,285.75 \r\n \r\n25,042.47 \r\n \r\n26,209.73 \r\n \r\n84,743.55 31,693.87 \r\n \r\n4,199.42 \r\n \r\n550,376.68 130,996.10 \r\n \r\n398,353.69 \r\n \r\n795,613.09 \r\n \r\n4 391.56 $ I 657 087 29 $ I 399 305.45 $ 2 154 805.99 \r\n \r\nNatural Classification \r\nSalaries Faculty Staff \r\nEmployee Benefits Other Personal Services Travel Scholarships and \r\nFellowships Utilities Supplies and Other \r\nServices Depreciation \r\nTotal Operating Expenses \r\n \r\nPlant Operations and \r\nMaintenance \r\n \r\nFunctional Classification \r\n \r\nScholarships and FellowshiQs \r\n \r\nAuxiliary Entemrises \r\n \r\nTotal Operating Ex11enses \r\n \r\n$ 759,610.27 244,923.14 350.00 1,986.61 \r\n \r\n$ \r\n \r\n7,318.50 $ 5,009,111.87 \r\n \r\n265,026.95 \r\n \r\n3,688,906.75 \r\n \r\n31,655.58 \r\n \r\n2,217,985.05 \r\n \r\n595.00 \r\n \r\n2,225.00 \r\n \r\n5,677.37 \r\n \r\n92,515.33 \r\n \r\n$ 1,522,086.88 861,960.05 \r\n \r\n67,266.80 56,317.37 \r\n \r\n1,674,097.23 1,051,055.24 \r\n \r\n848,642.15 1,039,426.12 \r\n \r\n2,716,984.47 6 452.88 \r\n \r\n5,709,371.80 1,290,912.86 \r\n \r\n$ 3 756 898.34 $ I 522 086.88 $ 315729492 $20,736 181 13 \r\n \r\nNOTE 14: COMPONENT UNITS \r\n \r\nGordon College Foundation (Foundation) is a legally separate, tax-exempt component unit of Gordon College. The Foundation is set up to provide support to students attending Gordon College. The organization solicits Gordon College Foundation donations for the use of scholarships to eligible students. The 49 members of the Gordon College Foundation are elected to three-year terms of service. The Board of Trustees is composed of business and civic leaders from the Gordon College service area. Although the College does not control the timing or amount of receipts from the Foundation, the majority of resources or incomes thereon that the Foundation holds and invests are restricted to the activities of the College by the donors. Because these restricted resources held by the Foundation can only be used by, or for the benefit of, the College, the Foundation is considered a component unit of the College and is discretely presented in the College's financial statements. \r\n \r\n- 22 - \r\n \r\n GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 14: COMPONENT UNITS \r\nThe Foundation is a private nonprofit organization that reports under FASB standards, including FASB Statement No. 117, Financial Reporting for Not-for-Profit Organizations. As such, certain revenue recognition criteria and presentation features are different from GASB revenue recognition criteria and presentation features. The FASB reports were reclassified to the GASB presentation for external financial reporting purposes in these financial statements. The Foundation's fiscal year is January 1 through December 31. \r\nDuring the year ended June 30, 2004, the Foundation distributed $121,980 to the College for both restricted and unrestricted purposes. Complete financial statements for the Foundation can be obtained from the Administrative Office at 419 College Drive, Barnesville, Georgia 30204. \r\nInvestments for Component Units Gordon College Foundation received a charitable gift annuity. With a charitable gift annuity, the donor contributes assets in exchanges for distributions of a fixed amount for specified period of time. The assets were contributed directly to the organization and are held as general assets of the organization. The related liability for annuity payments is recorded as a general obligation of the organization. Gordon College Foundation, Inc. received various investments with a fair market value of $137,660. In exchange for the stock, the Foundation agreed to pay the donor quarterly payments of $2,621.44 until the donor's death or until the donor's wife's death if she survives him. The estimated present value of these payments over an actuarially determined life of the donor is recorded as a liability. At December 31, 2003, the estimated present value of annuity payments was $77,697. Interest paid during 2003 was $4,363. \r\n \r\n- 23 - \r\n \r\n SUPPLEMENTARY INFORMATION - 25 - \r\n \r\n GORDON COLLEGE SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO \r\nBUDGET - (NON-GAAP BASIS) RESIDENT INSTRUCTION \r\nYEAR ENDED JUNE 30. 2004 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nState Appropriations Other Revenues Retained \r\n \r\nBUDGET \r\n \r\nACTUAL (1) \r\n \r\nVARIANCEFAVORABLE (UNFAVORABLE} \r\n \r\n$ \r\n \r\n10,367,628.00 $ 10,367,628.00 $ \r\n \r\n0.00 \r\n \r\n9,083,165.00 \r\n \r\n8,127,013.77 \r\n \r\n-956, 151.23 \r\n \r\n$ \r\n \r\n19,450,793.00 $ 18,494,641.77 $ _ _--=-9-=-56:.!.'.:..:15:..:.1:.=.2-=-3 \r\n \r\nEXPENDITURES \r\nPersonal Services: Education, General and Departmental Services Sponsored Operations \r\nOperating Expenses: Education, General and Departmental Services Sponsored Operations \r\nCapital Outlay Special Funding Initiative \r\n \r\n$ \r\n \r\n10,802,030.00 $ 10,413,276.15 $ \r\n \r\n14,994.09 \r\n \r\n388,753.85 -14,994.09 \r\n \r\n3,951,618.00 4,545,000.00 \r\n152,145.00 \r\n \r\n4,637,853.75 3,228,016.50 \r\n19,654.62 110,563.03 \r\n \r\n-686,235.75 1,316,983.50 \r\n-19,654.62 41,581.97 \r\n \r\n$ \r\n \r\n19,450,793.00 $ 18,424,358.14 $ _ ___;_1.!.::,0=26:..!.,4.:..:3:....:.4:..::.86=- \r\n \r\nExcess of Revenues over Expenditures \r\n \r\n$ \r\n \r\n70,283.63 $ ==~70;,:,,2;;,;8;;;3;,;;;.6~3 \r\n \r\n(1) Actual amounts were prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Basic Financial Statements and Supplementary Information. \r\n-27 - \r\n \r\n GORDON COLLEGE RECONCILIATION OF SALARIES AND TRAVEL \r\nYEAR ENDED JUNE 30. 2004 \r\n \r\nSCHEDULE \"2\" \r\n \r\nTotals per Annual Supplement \r\n \r\nAccruals June 30, 2004 June 30, 2003 \r\n \r\nCompensated Absences June 30, 2004 June 30, 2003 \r\n \r\nAdjustments \r\n \r\nShared Services on Jointly Staffed Personnel \r\n \r\nBoard of Regents - Academic Affairs \r\n \r\nHardin, Andrea \r\n \r\nMayo, \r\n \r\nJoseph \r\n \r\nWinsor, Rachel \r\n \r\nSALARIES \r\n \r\nTRAVEL \r\n \r\n$ 8,768,889.84 $ \r\n \r\n92,515.33 \r\n \r\n47,972.28 -35,009.31 \r\n \r\n225,976.57 -291,556.46 \r\n \r\n-17,700.00 -215.30 -339.00 \r\n$ 8,698,018.62 $ =~9.;;d2,.;,5,;,,;15;;,;.3;;;3;,,. \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Basic Financial Statements and Supplementary Information. \r\n-29- \r\n \r\n SECTION II CURRENT YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n GORDON COLLEGE SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2004 \r\nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bg6-b2002-h2003","title":"Gordon College, Barnesville, Georgia, report on review of the financial statements for the fiscal year ended June 30, 2003","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Lamar County, Barnesville, 33.05457, -84.15575"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2002/2003"],"dcterms_description":["Began with fiscal year ended June 30, 2000; ceased with year ended June 30, 2011.","Fiscal year ended June 30, 2000 (online surrogate); title from PDF cover (Georgia Government Publications database, viewed August 11, 2017).","Year ended June 30, 2011 (online surrogate); (Georgia Government Publications database, viewed August 11, 2017)."],"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":["Gordon College (Barnesville, Ga.)--Appropriations and expenditures","Financial statements--Georgia","Auditors' reports--Georgia"],"dcterms_title":["Gordon College, Barnesville, Georgia, report on review of the financial statements for the fiscal year ended June 30, 2003"],"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-bg6-b2002-h2003"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bg6-b2002-h2003"],"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":null},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-bg6-b2001-h2002","title":"Gordon College, Barnesville, Georgia, report on review of the financial statements for the fiscal year ended June 30, 2002","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Lamar County, Barnesville, 33.05457, -84.15575"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2001/2002"],"dcterms_description":["Began with fiscal year ended June 30, 2000; ceased with year ended June 30, 2011.","Fiscal year ended June 30, 2000 (online surrogate); title from PDF cover (Georgia Government Publications database, viewed August 11, 2017).","Year ended June 30, 2011 (online surrogate); (Georgia Government Publications database, viewed August 11, 2017)."],"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":["Gordon College (Barnesville, Ga.)--Appropriations and expenditures","Financial statements--Georgia","Auditors' reports--Georgia"],"dcterms_title":["Gordon College, Barnesville, Georgia, report on review of the financial statements for the fiscal year ended June 30, 2002"],"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-bg6-b2001-h2002"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-bg6-b2001-h2002"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"(;..A ABoo \r\n'i:!_ I \r\nGil, :;I. Oo I - ~Gl\u003eJ. \r\n \r\nJ r \r\n \r\n' , \r\nSTATE OF GEORGIA \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n \r\n \r\n \r\n\u003e \r\n \r\n'' \r\n \r\nI'  \r\n \r\n( ' \r\n \r\n/ \r\n \r\n' ' \r\n \r\n-' \r\n \r\nr \r\n' ' \r\n \r\n, j I \r\n \r\n'I I \\ \r\n \r\nGORDON COLLEGE \r\n \r\n., \r\n \r\n, ' BARNESViLLE, GEO,RGIA \r\n \r\n' \r\nREPORT ON REVIEW \r\n \r\nOF THE FINANCIAL STATEMENTS \r\n \r\n FOR THE FISCAL YEAR ENDED JUNE 30, 2002 \r\n \r\n,,i_ \r\n \r\n' I \r\n \r\n' '' \r\n \r\n' \r\n \r\n'' T \r\n \r\n-\\ \r\n \r\n' I' \r\n \r\nr \r\n \r\nRussell W. Hinton ' \r\n \r\nState Auditor \r\n \r\n\"'  I \r\n \r\n~ j \r\n \r\n' ' \r\n \r\n GORDON COLLEGE - TABLE OF CONTENTS - \r\n \r\nPage \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT ACCOUNTANTS COMBINED REPORT ON REVIEW OF BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nMANAGEMENT'S DISCUSSION AND ANALYSIS \r\n \r\n3 \r\n \r\nBASIC FINANCIAL STATEMEl'l'TS \r\n \r\nEXHIBITS \r\n \r\nA STATEMENT OF NET ASSETS \r\n \r\n11 \r\n \r\nB STATEMENT OF REVENUES, EXPENSES A1'.'D CHANGES IN NET ASSETS \r\n \r\n12 \r\n \r\nC STATEMENT OF CASH FLOWS \r\n \r\n13 \r\n \r\nD NOTES TO THE FINANCIAL STATEMENTS \r\n \r\n14 \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\nSCHEDULES \r\n \r\nSCHEDULES OF REVENUES AND EXPENDITURES COMPARED TO \r\n \r\nBUDGET - (NON-GAAP BASIS) \r\n \r\nI \r\n \r\nRESIDENT INSTRUCTION \r\n \r\n31 \r\n \r\n2 \r\n \r\nLOTTERY FOR EDUCATJON \r\n \r\n32 \r\n \r\n3 RECONCILIATION OF SALARIES AND TRAVEL \r\n \r\n33 \r\n \r\n FINANCIAL \r\n \r\n R1 \"''111 \\\\. H1, rn, \r\nSTATlAU(ITOP \r\nc.i 5'i 2 1 1.i \r\n \r\n,, \r\n \r\n, \r\n \r\n. ,C\" \r\n \r\n --':'H--..Jfi~:: \r\n \r\nDEPARTl\\1ENT OF AUDITS AND ACCOUNTS \r\n~l:i-l \\\\J..,h1n~ton ~ircct ~ \\\\ ';u11c: :1--t t\\tl..mta Gcorg-1J ~(1~~4-8400 \r\n \r\nNovember 22. 2002 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly of Georgia Members of the Board of Regents of the Umverslly System of Georgia \r\nand Honorable La'wTence V Welil, President Gordon College \r\nINDEPENDENT ACCOW,..'TANT'S COMBINED REPORT ON REVIEW OF BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION \r\nLadies and Gentlemen \r\nWe have reviewed the accompanymg baste financial statements (Exh1b1ts A through D) of Gordon College an organ1zat1onal umt of the State of Georgia, as of and for the year ended June 30. 2002. m accordance with Statements on Standards for Accountmg and Review Services issued by the Arnencan Institute of Certified Pubhc Accountants All mformatlon mcluded m these financial statements 1s the representation of the management of Gordon College \r\nA review consists pnnc1pally ofmqumes of College personnel and analyttcal procedures applied to financial data It 1s substanllally less m scope than an audit m accordance with audllmg standards generally accepted m the Umted States of Amenca, the obJect1ve ofwh1ch 1s the expression of an opm10n regarding the financial statements taken as a whole Accordmgly, we do not express such an opinton \r\nBased on our review, with the exception of the matter discussed m the fourth paragraph, we arc not aware of any matenal modifications that should be made to the accompanying financial statements m order for them to be m conformity with accountmg pnnc1ples generally accepted m the Umted States ofArnenca \r\nAs descnbed m Note 1 to the financial statements, the College did not recognize June 30, 2001, encumbrances as expenses in the June 30, 2002. basic financial statements To conform to generally accepted accounting pnnctples, encumbrances should be recogruzed as expenses and hab1hues m the penod that goods and services are received The effects on the basic financial statements of this departure from genernlly accepted accountmg pnnc1ples were not reasonably determmable \r\n02ARL-67 \r\n \r\n As descnbed m Note L Gordon College adopted the prov1s10ns of Governmental Accountmg Standards Board (GASB) Statement No 35, Basic Fznanc,a/ Sraremenrs - and Afanagemem's D1scusswn and Analvs,s -for Public College~ and Umversllles, as amended by GASB Statement No 37, Basic F111ancwl Sraremenrs - and Afanagemenr's D1scusswn and Ana/is1s - for Srarc and Locar Govcmmellls, and GASB Statement No 38, Cerram Fmancwl Srarements Note D1sc/0s11res, as of July 1, 200 I, to implement a new financial reportmg model \r\n \r\nManagement's D1scuss1on and Analysis 1s not a reqmred part of the basic financial statements but 1s supplementary mformalion reqmred by the GASB We have applied certam limited procedures, which consisted pnne1pally ofmqumes ofmanagement regardmg the methods of measurement and presental!on ofthis supplementary mformalion, and we are not aware ofany matenal mod1ficauons that should be made thereto \r\n \r\nOur review was made for the purpose of expressmg limited assurance that there are no matenal mod1ficat10ns that should be made to the financial statements m order for them to be m conformity with accountmg pnnc1ples generally accepted m the Umted States ofAmenca The accompanymg supplementary mformalion (Schedules 1 through 3) 1s presented for add111onal analysis purposes Such mformalion has been subJected to the mqumes and analytical procedures applied m the review of the financial statements, and we are not aware of any matenal mod1fica11ons that should be made to such data \r\n \r\nRespectfully submitted, \r\n \r\n- \r\n \r\nk)~ \r\n \r\nRus ell W Hmton State Auditor \r\n \r\nRWH as 02ARL-67 \r\n \r\n REQUIRED SUPPLEMENTARY INFORMATION -I- \r\n \r\n GORDON COLLEGE \r\nManagement's Discussion and Analysis \r\n \r\nIntroduction \r\n \r\nGordon College 1s one of the 34 mstltutlons of the Umvers1ty System of Georgia The College, located m Bamesv1lie, Georgia, was founded m 1852 The College offers associate degrees m a Wide vanety of subjects This wide range of educat10nal opportumtles attracts a highly qualified faculty and a student body of more than 3,000 students each year The mst1tut10n continues to grow as shown by the companson numbers that follow \r\n \r\nFaculty \r\n \r\nStudents \r\n \r\nFY2002 FY2001 FY2000 \r\n \r\n76 \r\n \r\n3,074 \r\n \r\n70 \r\n \r\n2,890 \r\n \r\n66 \r\n \r\n2,758 \r\n \r\nOverview ofthe Financial Statements and Financial Analysis \r\n \r\nGordon College 1s proud to present its finane1al statements for fiscal year 2002 The emphasis of d1scuss1ons about these statements will be on current year data There are three financial statements presented the Statement of Net Assets, the Statement of Revenues, Expenses and Changes m Net Assets, and, the Statement of Cash Flows This d1scuss10n and analysis of the College's financial statements provides an overview of its financial activities for the year Gordon College has elected to not restate pnor penods for purposes of prov1dmg the comparative data for this Management's D1scuss1on and Analysis However, m future years, when pnor penod mformatlon 1s available, a comparative analysis will be presented \r\n \r\nStatement ofNet Assets \r\n \r\nThe Statement ofNet Assets presents the assets, hab1ht1es, and net assets ofthe College as ofthe end of the fiscal year The Statement ofNet Assets 1s a pomt of time financial statement The purpose of the Statement ofNet Assets 1s to present to the readers of the financial statements a fiscal snapshot of Gordon College The Statement ofNet Assets presents end-of-year data concernmg Assets (current and non-current), Liab1ht1es (current and non-current), and Net Assets (assets mmus hab1ht1cs) The difference between current and non-current assets will be discussed m the notes to the financial statements \r\n \r\nFrom the data presented, readers of the Statement of Net Assets arc able to determme the assets available to contmue the operaltons ofthe 1ns1ttulton They are also able to determme how much the mst1tut10n owes vendors, investors and Iendmg msutullons \r\n \r\n- 3- \r\n \r\n Finally, the Statement of Net Assets provides a picture of the net assets (asset~ minus hab1hlles) and their availab1hty for expenditure by the inst1tut1on Net asset~ are d1v1dcd mto three maJor categones The first category, invested in capital assets, net of debt, provides the inslltuuon'~ equ1tv in property, plant and equipment owned by the inst1tut10n The next asset Cdtcgory 1s restnctcd net assets The final category 1s unrestncted net assets Unrestnctcd assets are available to the inslltullon for any lawful purpose of the inst1tut1on \r\n \r\nStatement of Net Assets, Condensed (thousands of dollars) \r\n \r\nAssets Current Assets Capital Assets, Net Other Assets \r\n \r\nS 5,349 14,559 I I \r\n \r\nTotal Assets \r\n \r\nS 19,919 \r\n \r\nLiabilities Current L1ab1h11es Non-Current L1ab1hlles \r\n \r\nS 1,229 \r\n90 \r\n \r\nTotal Liabilities \r\n \r\nS I 319 \r\n \r\nNet Assets Invested in Capital Assets, Net of Debt Restncted Unrestncted \r\n \r\ns 14,559 \r\n13 \r\n4,028 \r\n \r\nTotal Net Assets \r\n \r\n$ 18,6QQ \r\n \r\nStatement ofRevenue.~, Expenses and Changes in Net Assets \r\n \r\nChanges in total net assets as presented on the Statement of Net Assets are ha~ed on the ac11v1ty presented in the Statement of Revenues, Expenses and Changes in Net Assets The purpose of the statement 1s to present the revenues received by the inst1tullon, both operating and nonopcrating, and the expenses paid by the instltullon, operating and nonoperating, and any other revenues, expenses, gains and losses received or spent by the inst1tut10n Generally speaking operating revenues arc received for providing goods and services to the vanous customers and conslltucnc1cs of the inst1tu11on Operating expenses are those expenses paid to acqmre or produce the goods and services provided in return for the operating revenues, and to carry out the m1ss1on of the inslltut1on Nonoperating revenues are revenues received for which goods and services are not provided For example state appropnallons arc nonoperating because they are provided by the Legislature to the inslltullon without the Legislature directly receiving commensurate goods and ser. ices for those revenues \r\n \r\n-4- \r\n \r\n Statement of Revenues. E~penses and Changes in Ket Assets. Condensed (thousands of dollars) \r\n \r\nOperating Revenues Operating Expenses \r\n \r\nS 8.376 17 400 \r\n \r\nOperating Loss \r\n \r\nS -9.024 \r\n \r\nNonoperating Revenues and Expenses \r\n \r\n10,924 \r\n \r\nIncome (Loss) Before Other Revenues, Expenses, Gains or Losses \r\n \r\nS I 900 \r\n \r\nIncrease m Net Assets \r\n \r\n$ I 900 \r\n \r\nNet Assets at Beginrung of Year, as Onginally Reported \r\n \r\nS 46,562 \r\n \r\nCumulative Effect of Changes m Accountmg Pnnc1ple \r\n \r\n-29,862 \r\n \r\nNet Assets at Begmmng of Year Restated \r\n \r\n$ 16,700 \r\n \r\nNet Assets at End of Year \r\n \r\n$_j8.600 \r\n \r\nThe Statement of Revenues, Expenses and Changes m Net Assets reflects a pos1uve year with an mcrcase m the net assets at the end of the year Some h1ghhghts of the mformat10n presented on the Statement of Revenues, Expenses and Changes m Net Assets are as follows \r\n \r\n-5- \r\n \r\n ------------------ \r\n \r\nRevenue By Source (thousands of dollars) For The Year Ended June 30. 2002 \r\n \r\nOperating Revenue Tmt10n and Fees Grants and Contracts Aux1hary Other \r\nTotal Operating Revenue \r\nNonoperating Revenue State Appropnatlons Investment Income \r\nTotal Nonoperatmg Revenue \r\nTotal Revenues \r\nExpenses (thousands of dollars) For The Year Ended June 30, 2002 \r\n \r\ns 2,640 \r\n2,556 2,996 \r\n184 \r\n$ 8,376 \r\n$ 10,690 234 \r\n$ 10,924 \r\n$ 19.300 \r\n \r\nOperating Expenses Instruction Academic Support Student Services lnst1tut1onal Support Plant Operations and Mamtenance Scholarships and Fellowships Aux1hary Enterpnses Unallocated Depreciat10n \r\n \r\nS 5,093 979 \r\n1,386 1,806 1,830 2,518 2,758 I 030 \r\n \r\nTotal Operatmg Expenses \r\n \r\nS !7.400 \r\n \r\nStatement of Cash Flows \r\n \r\nThe final statement presented by the College 1s the Statement of Cash Flows The Statement ofCash Flows presents detailed mformatlon about the cash act1~,ty of the mstttutlon dunng the year The statement 1s d1v1ded mto five parts The first part deals with operating cash flows and shows the net cash used by the operatmg acttv1t1es of the mstltutlon The second section reflects cash flows from non-capital financmg activities This section reflects the cash received and spent for nonoperatmg, non-mvestmg, and non-capital finanemg purposes The third section reflects the cash flows from mvestmg acttv1t1es and shows the purchases, proceeds, and mterest received from mvestmg \r\n \r\n-6- \r\n \r\n act1v1t1cs The fourth sect10n deals with cash flows from capilal and related financing act1\\1t1es This sect10n deals with the cash used for the acqu1slllon and construction ofcapital and related Items The ti fth section reconciles the net cash used to the operating income or loss reflected on the Statement of Revenues. Expenses and Changes in Net Assets \r\n \r\nCash Flows for the Year Ended June 30, 2002, Condensed (thousands of dollars) \r\n \r\nCash Provided (Used) By Operating Act1v1t1cs Non-Capital Fmancmg Acllv1t1es lnvestmg Act1v1t1es Capital and Related Fmancmg Acllv111es \r\nNet Change m Cash Cash, Begmnmg of Year \r\n \r\nS -9, 781 10,708 33 -713 \r\ns 247 \r\n133 \r\n \r\nCash, End of Year \r\n \r\n$ 380 \r\n \r\nCapital Assets \r\n \r\nThe College had one s1gmficant capital asset add1t10n for fac1hlles m fiscal year 2002 The Alurnm Hall, Phase I renovation was completed \r\n \r\nFor additional information concerning Capital Assets, see Notes 1 and 6 in the notes to the financial statements. \r\n \r\nEconomic Outlook \r\n \r\nThe College is not aware of any currently known facts, dec1s1ons, or cond1t1ons that are ei.pected to have a s1gn1ficant effect on the financial pos1t1on or results of operations dunng this fiscal year beyond those unknown vanatlons havmg a global effect on virtually all IYPes ofbusmess operations The College's overall financial pos1t1on 1s strong Even with a relatively flat funded year, the College was able to generate a modest increase m Net Assets The College ant1c1pates the current fiscal year will be much hke last and will mamtam a close watch over resources to mamtam the College's ab1hty to react to unknown mtcmal and external issues \r\n \r\nLawrence V Wei II, President Gordon College \r\n- 7- \r\n \r\n BASIC FINANCIAI STATEMENTS \r\n-9 - \r\n \r\n GORDON COLLEGE \r\nSTATEMENT OF NET ASSETS \r\nJUNE 30. 2002 \r\n \r\nEXHIBIT\"A\" \r\n \r\nASSETS \r\nCurrent Assets Cash and Cash Equivalents Short-term Investments Accounts Receivable Net Federal F1nanc1al Assistance Other Prepaid Items lnventones \r\nTotal Current Assets \r\nNoncurrent Assets Notes Receivable, Net Capital Assets Net /See Note 6) \r\nTotal Noncurrent Assets \r\nTotal Assets \r\nLIABILITIES \r\nCurrent L1ab1hties Salanes Payable Payroll W1thhold1ngs Accounts Payable Deferred Revenue Funds Held for Others Compensated Absences Other L1ab1\\Jl1es \r\nTotal Current L1ab1hbes \r\nNoncurrent L1ab1lrtJes Compensated Absences \r\nTotal L1ab1hbes \r\nNET ASSETS \r\nInvested 1n Capital Assets, Net of Related Debt Restncted Unrestncted \r\nTotal Net Assets \r\n \r\ns \r\n \r\n379,679 95 \r\n \r\n4 434 077 98 \r\n \r\n12 352 39 23911370 \r\n3,745 00 279 903 89 \r\n \r\n$ 5,348,872 91 \r\n \r\n$ \r\n \r\n10.832 54 \r\n \r\n14 559,468 56 \r\n \r\n$ 14 570 301 10 \r\n \r\n$ 19 919,174 01 \r\n \r\n$ \r\n \r\n27,784 41 \r\n \r\n73 662 07 \r\n \r\n316 676 03 \r\n \r\n519,990 57 \r\n \r\n43,885 56 \r\n \r\n171,905 79 \r\n \r\n74 755 00 \r\n \r\n$ 1,228,659 43 \r\n \r\n$ \r\n \r\n90 704 45 \r\n \r\n$ 131936388 \r\n \r\ns 14 559 468 56 \r\n1288108 \r\n4 027 460 49 \r\n \r\nS 1859981013 \r\n \r\nSee Independent Acccuntant's Combined Report on Review of Basic F1nanc,al Statements and Supplementary Information \r\nThe notes to the f1nanc1al statements are an integral part of this statement - 11 - \r\n \r\n GORDON COLLEGE STATEMENT OF REVENUES EXPENSES AND CHANGES IN NET ASSETS \r\nYEAR ENDED JUNE 30 2002 \r\n \r\nEXHIBIT \"B\" \r\n \r\nOPERATING REVENUES \r\nStudent Tu1tmn and Fees Less Scholarship Allowances \r\nGrants and Contracts Federal \r\nSales and Services of Educational Departments Aux1l1ary Enterpnses \r\nResidence Halls Bookstore Food Services Park1ngfTransportatJon Intercollegiate Athlebcs Other Operating Revenues \r\nTotal Operating Revenues \r\nOPERATING EXPENSES \r\nSalanes Faculty Staff \r\nEmployee Benefits Travel Scholarships and Fellowships Ut1hbes Supplies and Other Services Deprec1abon \r\nTotal Operabng Expenses \r\nOperabng Income (Loss) \r\nNONOPERATING REVENUES (EXPENSES) \r\nState Appropnabons Interest and Other Investment Income \r\nNet Nonoperat1ng Revenues \r\nlncrease/(Decrease) 1n Net Assets \r\nNet Assets Net Assets - Beg1nn1ng of Year as Ong1nally Reported Cumulative Effect of Changes 1n Accounting Pnnciple \r\nNet Assets - Beginning of Year, Restated \r\nNet Assets - End of Year \r\nSee Independent Accountant's Combined Report on Review of Basic Financial Statements and Supplementary lnfonmabon \r\nThe notes to the financial statements are an integral part of this statement - 12 - \r\n \r\ns 3,763,826 96 \r\n-1,123,52482 \r\n2 556 007 33 6000 \r\n719,214 79 1214.=08 \r\n826,714 56 43 020 95 192 921 66 183.909 26 \r\n$ 8 376 372 77 \r\n \r\n$ 4 482,533 55 2,892,435 67 1,940 140 24 72,037 71 1,506,221 63 1,02161313 4 443 816 21 1 041 508 62 \r\n$ 17 400 306 76 \r\n$ -9,023,933 99 \r\n \r\n$ 10,689,582 41 234 331 46 \r\ns 10 923,913 87 \r\n \r\n$ \r\n \r\n1899979 88 \r\n \r\ns 46,562 413 13 \r\n-29,862 582 88 \r\n$ 16 699 830 25 \r\n \r\n$ 18 599 810 13 \r\n \r\n GORDON COLLEGE \r\nSTATEMENT OF CASH FLOWS \r\nYEAR ENPEP JUNE 30 2002 \r\nCASH FLOWS FROM OPERATING ACTMTIES Tu1t1on and Fees Grants and Contracts Sales and Services of Educat.Jonal Departments Payments to Suppliers \r\nPayments to EmplOyees \r\nPayments tor Scholarships and Fellowships Aux1l1ary Enterpnse Charges \r\nResidence Halls Bookstore Food Services Parkingn-ransportaoon Intercollegiate Attllebcs Other Receipts (Payments) \r\nNet Cash Provided (Used) by Operating AclivrtJes \r\nCASH FLOWS FROM NONCAPITAL FINANCING ACTMTIES Stale AppropnaliOns Agency Funds Tranaacttons \r\nNet Cash Flows Provided (Used) by Noncaprtal Financing Actrvlbes \r\nCASH FLOWS FROM CAPrTAL AND RELATED FINANCING ACTMTIES Purchases of Capital Assets \r\nCASH FLOWS FROM INVESTING ACTMTIES \r\nInterest on Investments \r\nPurchase of lnvestmants \r\nNet Caah Provided (Used) by lnvesl:Jng Actrvrbes \r\nNet lncrease/(Decrease) 1n Cuh \r\nCash and Cash Equivalents - June 30 2001 Less Short-Term Investments \r\ncash and Cash Equivalents  Beginning of Year \r\nCash and Cash Equivalents End of Year \r\nRECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTMTIES \r\nOperating Income (Loss) \r\nAdJustments to Reconole Net tncome (Loss) to Net Cash \r\nProvided (Used) by Operal:Jng Actlvlttes Depree\u0026abon Change m A3sets and L1ab1llbes Accounts Receivables Net lnventones Prepaid Items Accounts Payable Salanes Payable Deferred Revenue Olher LlabllrtJes Compensated Absences \r\nNet Cash Provrded (Used) by Operat.Jng Activities \r\nSee ,ndepen-dent Accountanfs Combmed Report on Review or Basic F11\"\\8nC1al Statements and Supplementary lnforme.Uon \r\nThe notes to the financaal statements are an integral part of trus statement \r\n 13  \r\n \r\nEXH1srr ch \r\n \r\ns 276371568 \r\n2 690 583 87 60 00 \r\n-961120456 .7 296 463 21 1 506 221 83 \r\n726 869 79 1 214,222 06 \r\n826 714 56 43 020 95 \r\n192 921 86 174 333 55 \r\ns .9 781 446 96 \r\n \r\ns 10 689 582 41 \r\n17 952 68 \r\ns 10 707 535 09 \r\n \r\ns -712 805 45 \r\n \r\ns \r\n \r\n234 331 46 \r\n \r\n-201 065 28 \r\n \r\ns \r\n \r\n33 266 18 \r\n \r\ns \r\n \r\n246 448 86 \r\n \r\ns 4 366 243 79 \r\n-4 233 012 70 \r\n \r\ns \r\n \r\n13323109 \r\n \r\ns \r\n \r\n378 678 85 \r\n \r\ns .g 023 933 99 \r\n104150862 \r\n12641322 -62 361 01 \r\n-1 563 75 2 069 672 51 \r\n7 061 19 122 001 45 \r\n7 855 00 71 ...... 82 \r\nS -9.781 446 96 \r\n \r\n GORDON COLLEGE NOTES TO THE FINANCIAL S'rATEMENTS \r\nJUNE 30, 2002 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nNATURE OF OPERATIONS Gordon College serves the state, and natJonal comrnumtJes by prov1dmg its students with academic mstructJon that advances fundamental knowledge, and by d1ssemmatmg knowledge to the people of Georgia and throughout the country \r\nREPORTING ENTITY Gordon College 1s one ofthirty-four (34) State supported member mstJtutmns oflugher educallon m Georgia which compnse the Umvers1ty System of Georgia, an organ1zatmnal unit of the State of Georgia The accompanyrng financial statements reflect the operations of Gordon College as a separate reportmg entity \r\nThe Board of Regents has constJtullonal authonty to govern. control and manage the Umverslty System of Georgia This authonty includes but 1s not hm1ted to the power to designate management, the ab1hty to s1gmficantly mfluence operations, the authonty to control mstltutJons' budgets, the power to determme allotments of State funds to member mstJtutJons and the authonty to prescnbe accountmg systems and adrmrustrauve pohc1es for member mstltullons Gordon College docs not have authonty to retam unexpended State appropnat1ons (surplus) for any given fiscal year Accordmgly, Gordon College 1s considered an organ1za11onal umt of the Board of Regents of the Umverstly System of Georgia reportmg entity for financial reportmg purposes because of the s1gmficance of1ts legal, operatJonal, and financial relallonslups with the Board ofRegents as defined m Section 2100 of the Governmental Accountmg Standards Board (GASB) CoddicatJon of Governmental Accounting and Fmanc1al Reportmg Standards \r\nFINANCIAL STATEMENT PRESENTATION ln June 1999, the GASB issued Statement No 34, Basic Fmanczal Statements and Management D1scuss1011 and Ana(vszsfor State and Local Governments ThIS was followed m November 1999 by GASB Statement No 35, Baste Fmanczal Statements and Management's D1scuss10n and Ana(1s1~ for Public Colleges and Umverswes The State of Georgia 1s reqmred to implement GASB Statement No 34 as of and for the year ended June 30, 2002 As an organ1zatJonal umt of the State of Georgia. the College 1s also reqmred to adopt GASB Statements No 34 and No 35 as amended by GASB Statements No 37 and No 38 The financial statement presentallon reqmred by GASB Statements No 34 and No 35 as amended by GASB Statements No 37 and No 38 provides a comprehensive, entity-wide perspecltve of the College's assets, hab1ht1es, net assets, revenues, expenses, changes m net assets, cash flows, and replaces the fund group perspective previously reqmred \r\nThe College has elected to not restate tis 2001 financial statements to conform with the new financial statement presentation, therefore comparaltve financial mfonnalton will not be presented for fiscal year 2002 S1gmficant accountmg changes made m order to comply wtth the new reqmrements mclude (I) adoplton ofdeprec1atJon on capital assets, and (2) recogmuon ofcompensated absences \r\n \r\n- 14 - \r\n \r\n GORDON COLLEGE KOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2002 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nFINAl'iCIAL STATEMENT PRESENTATION Generally Accepted Accountmg Pnnc1ples (GAAP) reqmres that the reportmg of summer school revenues and expenses be between fiscal years rather than m one fiscal year Due to the lack of matenahty, Institutions of the Umvers1ty System ofGeorgia WIil contmue to report summer revenues and expenses m the year m which the predommate act1v1ty takes place \r\nAt June 30. 2001, encumbrances (contractual obhgatmns for goods and services not received at fiscal year end) were recorded as expenditures by the College mstead of reservations of fund balance as reqmred by generally accepted accountmg pnnc1ples For fiscal year 2002. the College changed Its method ofrecordmg encumbrances such that encumbrances at June 30, 2002 were not recorded as expenses This change 1s m accordance with generally accepted accountmg pnnc1ples \r\nNo adJustments however, have been made on the financial statements to restate the fund balance at July I, 2001 for the June 30, 2001 encumbrances recorded as expenditures m fiscal year 2001 The net effect of the above accountmg treatment resulted m an understatement of expenses on the accompanymg financial statements for pnor year encumbrances which should have been reflected as expenses m the penod when goods and services were received \r\nBASIS OF ACCOUNTING For fmancial reportmg purposes, the College 1s considered a special-purpose government engaged only m busmess-type act1vit1es Accordmgly, the College's financial statements have been presented usmg the economic resources measurement focus and the accrual basis of accountmg, except as noted m the preceding paragraphs Under the accrual basis. revenues are recogmzed when earned, and expenses are recorded when an obhgatlon has been mcurred All s1gmficant mtra-college transactions have been ehmmated \r\nThe College has the option to apply all Fmanc1al Accountmg Standards Board (FASB) pronouncements issued after November 30, 1989, unless FASB conflicts with GASB The College has elected to not apply FASB pronouncements issued after the apphcable date \r\nRESTATEMENT OF NET ASSETS- BEGINNING OF YEAR As a result ofthe adoption ofGASB Statement No 34. the College was also reqmred to make certam changes m accountmg pnnc1ples, specifically (1) adoption ofdeprec1at1on on capital assets, and (2) recordmg of compensated absences GASB Statement No 34 requires certam summer semester revenues be recogmzed between fiscal years rather than the fiscal year m which the semester was predommantly conducted The Umvers1ty System of Georgia has chosen to contmue to record summer revenue m the year m which the semester was predommantly conducted Net assets at July I, 200 I were reduced by $29.862,582 88 for the cumulative effect of these changes \r\n \r\n- 15 - \r\n \r\n GORDON COLLEGE NOTES TO THE FINAl\\\"CIAL STATEMENTS \r\nJUNE 30, 2002 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 1 SUMMARY OF SIGNIFlCANT ACCOUNTING POLICIES \r\nCASH AND CASH EQUIVALENTS Cash and Cash Eqmvalents consist of petty cash. demand deposns and time deposits in authonzed financial institutions. and cash management pools that have the general charactenstlcs of demand deposit accounts \r\nINVESTMENTS The College accounts for Its investments at fair value in accordance with GASB Statement No 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pool~ Changes in unrealized gain (loss) on the carrying value of investments are reported as a component of investment income in the statements of revenues, expenses, and changes in net assets \r\nACCOUNTS RECEIVABLE Accounts receivable consists of tuition and fee charges to students and aux1hary enterpnse services provided to students, faculty and staff, the maJonty of each residing m the State of Georgia Accounts receivable also include amounts due from the Federal government, state and local governments, orpnvate sources, m connect10n with reimbursement of allowable expenditures madr pursuant to the College's grant and contracts Accounts receivable are recorded net of estimated uncollectlble amounts \r\nINVENTORIES Consumable supplies are earned at the lower of cost or market usmg the weighted average method \r\nResale Inventones are valued at cost using the average-cost basis \r\nNON-CURRENT CASH AND INVESTMENTS Cash and investments that are externally rcstncted and carmot be used to pay current hab1ht1es are classified as non-current assets in the statements of net assets \r\nCAPITAL ASSETS Capital assets are recorded at cost at the date of acqms1t10n, or fair market value at the date of donation in the case of gifts For eqwpment, the College's cap1tahzat1on pohcy includes all items with a umt cost of $5,000 00 or more. and an estimated useful hfe of greater than one year Renovations to bu1ldmgs, mfrastructure, and land improvements that exceed $5,000 00 and s1gmficantly mcrease the value or extend the useful life of the structure are capitalized Routine repairs and mamtenance are charged to operatmg expense m the year m which the expense was mcurred Depreciation 1s computed usmg the straight-line method over the estimated useful lives of the assets, generally 40 to 60 years for bmldings, 20 to 25 years for mfrastructure and land improvements, IO years for library books, and 3 to 7 years for eqmpment \r\nTo obtam the total picture of plant additions in the Umvers1ty System, 111s necessary to look at the act1v1t1es of the Georgia State Fmancing and Investment Comm1ss1on (GSFIC) - an orgaruzatlon that 1s external to the System GSFIC issues bonds for and on behalfofthe State of Georgia, pursuant to \r\n- 16 - \r\n \r\n GORDON COLLEGE NOTES TO THE FINANCIAL STATE~1ENTS \r\nTUNE 30. 2002 \r\n \r\nEXHIBIT \"D\" \r\n \r\n'.\\IOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nCAPITAL ASSETS powers granted to 11 in the Constnuuon of the State of Georgia and the Act creating the GSFIC The bonds so issued constitute direct and general obhgauons of the State of Georgia, to the payment of which the full faith, credn and taxing power of the State are pledged \r\nDEFERRED REVENUES Deferred revenues include amounts received for tmllon and fees and certain aux1hary activities pnor to the end of the fiscal year but related to the subsequent accountmg penod Deferred revenues also include amounts received from grant and contract sponsors that have not yet been earned \r\nCOMPENSATED ABSENCES Employee vacation pay 1s accrued at year-end for financial statement purposes The hab1hty and expense mcurred are recorded at year-end as accrued vacation payable in the Statement of Net Assets. and as a component of compensation and benefit expense m the Statements of Revenues, Expenses, and Changes in Net Assets Gordon College had accrued hab1hty for compensated absences m the amount of$191.165 42 as ofJuly I, 2001 For Fiscal Year 2002, $243,350 61 was earned m compensated absences and employees were paid S171,905 79, for a net increase of $71,444 82 \r\nNON-CURRENT LIABILITIES Non-current hab1hues mclude (I) hab1hues that will not be paid w1thm the next fiscal year. (2) cap1tal lease obhgauons with contractual matunt1es greater than one year, and (3) other hab1ht1es that, although payable w1thm one year, are to be paid from funds that are classified as non-current assets \r\nNET ASSETS The College's net assets are classified as follows \r\nInvested m capital assets. net of related debt This represents the College's total mvestment m capital assets, net of outstanding debt obhgauons related to those capital assets To the extent debt has been mcurred but not yet expended for capital assets, such amounts are not mcluded as a component ofmvested m capital assets, net ofrelated debt (The term \"debt obhgat10ns\" as used in this defiruuon does not mclude debt of the GSFIC as discussed above ) \r\nRestncted net assets Restncted net assets mclude resources in which the College 1s legally or contractually obhgated to spend resources in accordance with restncuons imposed by external third parties \r\nUnrestrzcted net assets Unrestncted net assets represent resources denved from student tu1t1on and fees, state appropnat10ns, and sales and services of educational departments and aux1hary cnterpnses Th'ese resources are used for transacllons relatmg to the educallonal and general operations of the College, and may be used at the d1scret1on of the governmg board to meet current \r\n- 17 - \r\n \r\n GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30. 2002 \r\n \r\nEXHIBIT \"D\" \r\n \r\nI\\JOTE I SUMMARY OF SIGNIFICANT ACCOUI\\Tr-JG POLICIES \r\nNET ASSETS expenses for those purposes. except for unexpended state appropnat1ons (surplus) of $22,512 82 Unexpended state appropnatlons must be refunded to the Board ofRegents ofthe Uruvcrslty System of Georgia - Admm1strallve Central Office for remittance to the Office of Treasury and Fiscal Services These resources also mclude aux1hary enterpnses. which arc substantially self-supporting act1v11Ies that provide services for students, faculty and staff \r\nWhen an expense 1s mcurred that can be paid usmg either restnctcd or unrcstncted resources, the College's pohcy 1s to first apply the expense towards unrestncted resources, and then towards restncted resources \r\nINCOME TAXES Gordon College, as a pohllcal subd1v1s1on of the State of Georgia. 1s excluded from Federal mcome !aJ(es under Secllon 115( 1) of the Internal Revenue Code, as amended \r\nCLASSIFICATION OF REVENUES The College has classified its revenues as either opcratmg or non-operatmg revenues m the Statement of Revenues, Expenses, and Changes m Net Assets accordmg to the followmg cntena \r\nOperating revenues Operatmg revenues mclude acllv1t1es that have the charactensllcs ofexchange transacuons, such as (1) student tmt10n and fees, net of scholarship allowances, (2) sales and services of aux1hary enterpnses, (3) most Federal, state and local grants and contracts and Federal appropnauons, and (4) mterest on 1nslltullonal student loans \r\nNon-operating re1enues Non-operatmg revenues mclude ac11v1ues that have the charactensucs of non-exchange transactions, such as gifts and contnbutlons, and other revenue sources that are defined as non-operatmg revenues by GASB No 9, Reporting Cash Flows of Proprietary and Nonexpendable Trost Funds and Governmental Enlllles That Use Proprietary Fund Accounting, and GASB No 34, such as state appropnauons and mvestment mcome \r\nSCHOLARSHIP ALLO\\\\'ANCES Student tm!ion and fee revenues, and certam other revenues from students. are reported at gross with a contra revenue account of scholarship allowances m the Statement of Revenues, Expenses, and Changes m Net Assets Scholarship allowances are the difference between the stated charge for goods and services provided by the College, and the amount that 1s paid by students and/or third parties makmg payments on the students' behalf Certam governmental h'TillltS, such as Pell grants, and other Federal. state or nongovernmental programs, are recorded as either operating or nonoperatmg revenues m the College's financial statements To the extent that revenues from such programs are used to satisfy tmtlon and fees and other student charges, the College has recorded contra revenue for scholarship allowances \r\n \r\n- 18 - \r\n \r\n GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30. 2002 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 2 CASH AND CASH EQUIVALENTS. OTHER DEPOSITS. AND Il\\'VESTMEJ\\1S \r\nSTATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belongmg to the State ofGeorgia (and thus Gordon College) cannot be placed ma depository paymg mterest longer than ten days without the depository prov1dmg a surety bond to the State In heu of a surety bond, the depository may pledge as collateral any one or more of the followmg secunlles as enumerated m the Offic1al Code of Georgia Annotated Sccllon 50-17-59 \r\nI Bonds, bill, certificates of mdebtedness, notes, or other c!Jrect obhgallons ofthe Umted States or of the State of Georgia \r\n2 Bonds, bills, certificates of mdebtedness, notes, or other obhgal!ons of the counl!es or mumc1pahlles of the State of Georgia \r\n3 Bonds of any pubhc authonty created by the laws of the State of Georgia, prov1dmg that the statute that created the authonty authonzed the use of the bonds for tlus purpose \r\n4 Industnal revenue bonds and bonds of development authonl!cs created by the laws of the State of Georgia \r\n5 Bonds, bills, certificates of mdebtedness, notes, or other obhgat10ns of a subsidiary corporat10n of the Umted States government, which are fully guaranteed by the Umted States government both as to pnnc1pal and mterest, or debt obhgat10ns issued by the Federal Land Bank, the Federal Home Loan Bank, The Federal Intermediate Credit Bank, the Central Bank for Cooperal!ves, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal Nallonal Mortgage Associal!on \r\n6 Guarantee or msurance of accounts provided by the Federal Deposit Insurance Corporal!on \r\nAs authonzed m the Official Code of Georgia Annotated Section 50-17-53. the State Depository Board has adopted pohc1es which allow agencies of the State ofGeorgia (and thus Gordon College), the option of exemptmg demand deposits from the collateral requirements \r\nThe Treasurer ofthe Board of Regents 1s responsible for all details relative to furmshmg the required depository protecllon for all umts of the Umvcrs1ty System of Georgia \r\nCATEGORIZATION OF DEPOSITS The College's cash deposits arc catcgonzed by nsk as follows \r\nCategory I - Amounts covered by depository msurance or collaterahzcd with secunt1es (at fair value) held by the College or by its agent m the College's name \r\n \r\n- I9 - \r\n \r\n GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS \r\nJUNE 30, 2002 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 2 CASH AND CASH EOCIVALENTS, OTHER DEPOSITS, AND Il\\'\\'ESTMEJ\\'TS \r\n \r\nCATEGORIZATION OF DEPOSITS Category 2 - Amounts collaterahzed with secunttes (at fatr value) held by the pledgmg financial \r\nmstttullon's trust department or agent m the College's name \r\n \r\nCategory 3 - Amounts collaterahzed with secunues (at fair value) held by the pledgmg financial mst1tut1on, or by Its trust department or agent but not m the College's name, and amounts uncollaterahzed \r\n \r\nCash Deposits as of June 30, 2002 are as follows \r\n \r\nCash Dcpos,ts \r\n \r\nCarrying \r\n \r\nBank \r\n \r\nR1c;k Categories \r\n \r\nAmount \r\n \r\nBalance'\\ \r\n \r\ns, s ~zo 611 63 s , J06 oq ss s 100 ooo oo s,___o....o..o. 20fiaoq ss \r\n \r\nCATEGORIZATION OF INVESTMENTS At June 30, 2002, the College's mvestments consisted of the followmg \r\n \r\nInvestments Not Subject to Categonz.at1ons Board of Regents \r\nShort-Term Fund \r\n \r\ns 4 434 077 98 \r\n \r\nFunds mvested man mvestment pool managed by another governmental entity are not requued to be categonzed smce the College did not own any specific, 1den11fiable mvestment secunues ofthe pool \r\n \r\nNOTE 3 ACCOUNTS RECEIVABLE \r\n \r\nAccounts receivable consisted of the followmg at June 30, 2002 \r\n \r\nStudent Tmllon and Fees Aux1hary Enterpnses and Other Operatmg Acllv111es Federal, State, and Pnvate Funds Other \r\n \r\n$ 56,773 12 5,478 82 12,352 39 \r\n206,517 21 \r\n$ 281,121 54 \r\n \r\nLess Allowance for Doubtful Accounts Net Accounts Receivable \r\n \r\n29.655 45 \r\nS___.251,466.09 \r\n \r\n- 20 - \r\n \r\n GORDON COLLEGE NOTES TO THE FINANCIAL STATE\\1ENTS \r\nJUNE 30, 2002 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 4 INVENTORIES \r\n \r\nInventones consisted of the following at June 30, 2002 \r\n \r\nBookstore Other \r\n \r\n$ 240,001 75 39,902 14 \r\n \r\nTotal \r\n \r\n$ 279,901.89 \r\n \r\nNOTE 5 NOTES/LOANS RECEJVABLE \r\n \r\nNotes/Loans receivable at June 30. 2002, pnrnanly consist ofstudent loans made through the Federal Perkins Loan Program (the Program) The Program provides for cancellation of a loan at rates of I 0% to 30% per year up to a maximum of I00% 1fthe part1c1pant comphes with certain prov1s1ons The Federal government reimburses the College for amounts cancelled under these prov1s1ons As the College determines that loans are uncollectJble and not ehg1ble for reimbursement by the Federal government, the loans are wntten off and assigned to the U S Department of Educat10n \r\n \r\nNOTE 6 CAPITAL ASSETS \r\n \r\nThe balance at July I, 2001 was adjusted for accounting changes requ1red in implementing GASB Statements 34 and 35 as disclosed in Note I Following are the changes in capital assets for the year ended June 30, 2002 \r\n \r\n- 21 - \r\n \r\n GORDO~ COLLEGE NOTES TO THE FINA:s.'CIAL STATEMENTS \r\nJUNE 30. 2002 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE6 CAPITAL ASSETS \r\n \r\nCapnal Assets Not Bemg Depreciated Land and Land lmprO\\emcnts \r\nConstruction Work-In-Progress \r\n \r\nAdjusted Balance \r\nJul\\ I, 200! \r\n \r\nAddn12m, \r\n \r\nReductions \r\n \r\nBjlancc June l() 1 2002 \r\n \r\ns 240,541 04 0 00 s J76 774 40 s \r\n \r\ns 240,541 04 \r\n \r\nO()(l \r\n \r\n1Z6,774 4Q \r\n \r\nTot.JI Capnal Assets Not Bcmg Depreciated \r\n \r\ns 240 541 04 s J76 774 4Q s \r\n \r\nQ 00 s ~JZ1JS44 \r\n \r\nCapnal Assets, Bemg Depreciated Infrastructure Du1ldmg and Bmldmg Improvements Fac1ht1es and Other Improvements Equipment Library Collcc11ons \r\n \r\n$ 2,678,474 56 18,052,619 02 1,125 187 35 \r\n2,872,474 54 s \r\n2,Q55,697 50 \r\n \r\ns ;16,Z~4,452 27 s \r\n \r\n205,93 I 11 13019224 116 131 QS \r\n \r\ns 2,678,474 56 \r\n18,052,619 02 1,125,187 35 3,078,405 65 2 l~H27 44 \r\ns 71:lQ5~Q2 \r\n \r\nLess Accumulated Deprcc1at1on \r\n \r\nInfrastructure \r\n \r\ns \r\n \r\nBmldmgs and Bu1ldmg Improvements \r\n \r\nFac1h11cs and Other Improvements \r\n \r\nEquipment \r\n \r\nLibrary Collcct1ons \r\n \r\n1,087,236 20 s \r\n7,230,092 13 692,177 04 \r\n1,410,957 35 1,716,459 56 \r\n \r\n107,067 53 \r\n \r\n451,743 93 \r\n \r\n69,054 62 \r\n \r\n332,778 \r\n~o 864 \r\n \r\n5o4o \r\n \r\ns 12,136 922 2~ $ 1,041,50~ 62 \r\n \r\ns I, 194,303 73 \r\n7,68 I ,836 06 761,23166 \r\n1,743,735 89 I 797 321 56 $ 1317~41090 \r\n \r\n~z Total Capital Assets, Bemg Dcprcc1atcd, \r\n \r\nNet \r\n \r\n$ I~ \r\n \r\n53Q 62 s \r\n \r\nCapital Assets, Net \r\n \r\ns 14 888 071 73 5 \r\n \r\n-ZQS 17Z~Z $ -328 603 LZ $ \r\n \r\nQQQ s 13 2~ 1s1 1:l \r\n0 00 S.,l.J,.l,.~~ \r\n \r\nNOTE? DEFERRED REVENUE \r\n \r\nDeferred revenue consisted of the following at June 30, 2002 \r\n \r\nPrepaid Tmt10n and Fees Federal Grants. Contracts \r\n \r\n$ 499,416 62 20 573 95 \r\n \r\nTotals \r\n \r\n$ 519,990.57 \r\n \r\nNOTES LONG-TERM LIABILITIES \r\n \r\nLong-term hab1hty act1v1ty for the year ended June 30, 2002, was as follows \r\n \r\n- 22 - \r\n \r\n GORDON COLLEGE l\\'OTES TO THE FNANCIALSTATEME~TS \r\nJUNE 30, 2002 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 8 LONG-TERM LIABILITIES \r\n \r\nBJIJncc \r\nJui) I 21HJI \r\n \r\nAdd1uons \r\n \r\nRcduct10nc. \r\n \r\n[3 ..i!Jncc June JO ;!CH)~ \r\n \r\nCurrent \r\nPomon \r\n \r\nCompensated Absences \r\nNOTE 9 RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\nPlan Description Gordon College part1c1pates m the Teachers Retirement System of Georgia (TRS). a cost-shanng multiple-employer defined benefit pens10n plan established by the General Assembly ofGeorgia for the purpose of proVIdmg retirement allowances and other benefits for teachers of the State of Georgia TRS provides service retuement, d!sab1hty retirement, and survivor's benefits for Its members m accordance with State statute The Teachers Retuement System of Georgia issues a separate stand alone financial audit report and a copy can be obtamed from the Georgia Department of Audits and Accounts \r\n \r\nFunding Policy Employees of Gordon College who are covered by TRS are reqmred by State statute to contnbutl' 5% ofthe1r gross earnmgs to TRS Gordon College makes monthly employer contnbut1ons to TRS at rates adopted by the TRS Board of Trustees m accordance with State statute and as advised by theu mdependent actuary For fiscal year 2002, the employer contnbuuon rate \\\\ as 9 24% for covered employees Employer contnbuhons for the current fiscal year and the precedmg two fiscal years are as follows \r\n \r\nFiscal Year \r\n \r\nPercentage Contnbuted \r\n \r\nRequired Contnhut1on \r\n \r\n2002 2001 2000 \r\n \r\n100% 100% 100% \r\n \r\nS 414,185 31 S 439,131 17 $ 450,867 51 \r\n \r\nREGENTS RETIREMENT PLAN \r\n \r\nPlan Description The Regents Retirement Plan, a smgle-employer defined contnbut10n plan, 1s an opt10nal retirement plan established and adm1mstered by the Board of Regents of the Umvers1ty System of Georgia, under which 1t may purchase annuity contracts for the purpose ofprov1dmg retirement and death benefits for ehg1ble faculty and pnnc1pal admm1strators Benefits depend solely on amounts contnbuted to the plan plus mvestment earnings Benefits are payable to pamc1patmg employees or theu benefic1anes m accordance with the terms of the armmty contracts \r\n \r\n- 23 - \r\n \r\n GORDON COLLEGE NOTES TO THE FINANCIAL STATEMEJ\\:TS \r\nJUNE 30, 2002 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 9 RETIREMENT PLA.\"\"1S \r\nREGENTS RETIRE!\\IEl'O' PLAN \r\nFunding Policy Member contnbutlon requuements are established by the Board of Trustees of the Teachers Retirement System Employer contnbut1ons are established by statute and may be amended on!} by the General Assembly ofthe State of Georgia The employer contnbutes 9 62% of the part1c1patmg employee's earnable compensation Employees contnbute 5% of their earnable compensatmn Amounts attnbutable to all plan contnbuuons are fully vested and non-forfenable at all times \r\nGordon College and the covered employees made the required contnbullons of$201 ,341 60 (9 62%) and $104,647 95 (5%), respectively \r\nGEORGIA DEFINED CONTRIBUTION PLAN \r\nPlan Description Gordon College part1c1pates m the Georgia Defined Contnbuuon Plan (GDCP) which 1s a smgleemployer defined contnbutlon plan established by the General Assembly of Georgia for the purpose ofprov1dmg retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pensmn system GDCP 1s adm1mstered by the Board of Trustees of the Employees' Retirement System of Georgia \r\nBenefits A member may retire and elect to receive penod1c payments after attamment ofage 65 The payment will be based upon mortality tables and mterest assumptions to be adopted by the Board ofTrustees If a member has less than$ 3,500 00 credited to his/her account, the Board ofTrustees has the option of requmng a lump sum d1stnbutmn to the member m lieu of makmg penod1c payments Upon the death of a member, a lump sum d1stnbut1on equal mg the amount credited to his/her account will be paid to the member's designated beneficiary Benefit prov1s1ons are established by State statute \r\nContributions and Vesting Member contnbutlons are seven and one-halfpercent (7 5%) of gross salary There are no employer contnbutlons Contnbuuon rates are established by State statute Eammgs are credited to each member's account m a manner established by the Board of Trustees Upon termmallon of employment, the amount of the member's account 1s refundable upon request by the member \r\nTotal contnbutlons made by employees dunng fiscal year 2002 amounted to $ I9,457 28 which represents 7 5% of covered payroll These contnbuuons met the reqmrements of the plan \r\n \r\n- 24 - \r\n \r\n GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS \r\nJL'N'E 30, 2002 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE IO RISK MANAGEMEl\\'T \r\nGordon College 1s a part1c1pant m the Board ofRegents ofthe Umvers1ty System of Georgia Health Benefits Plan, which 1s a self-msurance program of health and dental benefits for employees and retirees of the Umversny System of Georgia Gordon College and part1c1pating employees and retirees pay premiums to the Health Benefits Plan for this health msurance coverage The Health Benefits Plan 1s included m the financial statements of the Board of Regents of the Umverslty System of Georgia - Admuustrallve Central Office All umts of the Umvers1ty System of Georgia share the nsk ofloss for claims ofthe Health Benefits Plan The Health Benefits Plan 1s considered a self-sustammg nsk fund that provides health coverage for its members up to a maximum lifetime benefit of$2,000,000 00 per person and dental coverage up to an armual maximum ofS 1,000 00 per person The Board of Regents has contracted with Blue Cross Blue Shield of Georgia to process chums m accordance with the Health Benefits Plan as established by the Board of Regents \r\nThe Department of Adm1mstrat1ve Services (DOAS) has the respons1b1hty for the State of Georgia ofmakmg and carrymg out dec1s10ns that will mm1m1ze the adverse effects ofacc1dental losses that involve State government assets The State believes 1t 1s more econom1cal to manage its nsks mtemally and set aside assets for claim settlement Accordmgly, DOAS processes chums for nsk of loss to which the State 1s exposed, includmg general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' mdemmficat1on Limited amounts of commercial msurance are purchased applicable to property, employee and automobile liability, fidehty and certam other nsks Gordon College, as an orgaruzatlonal umt ofthe Board of Regents of the Urnvers1ty System of Georgia, 1s part of the State of Georgia reporting entity, and as such, 1s covered by the State of Georgia nsk management program adm1mstered by DOAS Premiums for the nsk management program are charged to the vanous state orgaruzauons by DOAS to provide chums serv1cmg and chums payment \r\nA self-msured program of professional hab1llty for its employees was estabhshed by the Board of Regents of the Umvcrslty System of Georgia under powers authonzed by the Official Code of Georgia Armotated Section 45-9-1 The program msures the employees to the extent that they are not immune from liability agamst personal hab1hty for damages ansmg out of the performance of their duties or in any way connected therewith The program 1s admm1stered by DOAS as a SelfInsurance Fund \r\nNOTE 11 CONTINGENCIES \r\nAmounts received or receivable from grantor agencies are subject to audit and adiusnnent by grantor agencies This could result m 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 determmed at tins lime although Gordon College expects such amounts, 1f any, to be 1mmatenal to its overall financial pos1t1on \r\n \r\n- 25 - \r\n \r\n GORDON COLLEGE NOTES TO THE FINANCIAL STATEMENTS \r\nJUKE 30, 2002 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 11 CONTINGENCIES \r\nL111ga11on, claims and assessments filed agamst Gordon College (an organ1zallonal umt ofthe Board of Regents of the Umvers1ty System of Georgia), 1f any, are generally considered to be acllons against the State of Georgia Accordmgly, s1gmficant hllgallon, claims and assessments pendmg against the State of Georgia are disclosed m the State of Georgia Comprehensive Annual Fmanc1al Report for the fiscal year ended June 30, 2002 \r\nNOTE 12 POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS \r\nPursuant to the general powers conferred by the Official Code of Georgia Annotated Secl!on 20-331, the Board of Regents of the Umvers1ty System of Georgia has established group health and hfe msurance programs for regular employees of the Umvers1ty System ofGeorgia It 1s the pohcy ofthe Board ofRegents to perrmt employees ofthe Umvers1ty System ofGeorgia eligible for rellrement or that become permanently and totally disabled to contmue as members of the group health and hfe insurance programs Employees who are eligible for rel!rement or d1sab1lity under the cntena established by the Teachers Retirement System ofGeorgia and who have at least ten years ofservice with the Umvers1ty System of Georgia are eligible for these post-employment health and life insurance benefits Organ1zat10nal umts of the Board of Regents of the Umvers1ty System of Georgia pay the employer poruon for group insurance for affected md1v1duals \r\nAs ofJune 30, 2002, there were 21 employees who had retired or were disabled that were rece1vmg these post-employment health and life msurance benefits For the year ended June 30, 2002, Gordon College recognized as mcurred $72,256 86 of expenditures, which was net of $26,561 08 of part1c1pant contnbul!ons \r\n \r\n- 26 - \r\n \r\n GORDON COLLEGE NOTES TO THE FINANCIAL STATEMEl\\'TS \r\nJUNE 30. 2002 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTE 13 NATURAL CLASSIFICATIONS WITH FUI\\CTIONAL CLASSIFICATIONS \r\n \r\nThe College's operatmg expenses by functional class1ficat1on arc shown below \r\n \r\n\u003c;catement of Operaung Expense,; - !'-!annal 1,s l--unct1onal Class1ficat1ons fo; the ru.cal Year Ended June 30 2002 \r\n \r\nFunctmnal C:ldS\u003e1fica.uon \r\n \r\nNatural Cl:1$SJficatmn \r\nSalancs Faculty Staff \r\nEmployee Benefits Tra-.cl Scholan;h1ps and \r\nFcllowsh1ps Ut1ht1cs SuppllCS and Other \r\nServices Deprcc,a11on \r\nTotal Operating Expenses \r\n \r\nlnstructmn \r\n \r\nAcademic \r\nSupport \r\n \r\n~tudent \r\n\"emccs \r\n \r\nlnst1tut1onal \r\nSuooon \r\n \r\ns 4.482,533 ll 143,215 52 s 522,974 OJ s 738,964 77 s 667 774 74 \r\n \r\n1,076,128 01 \r\n \r\nl)Q,685 33 \r\n \r\n17Q 535 70 \r\n \r\nJ)7,86l )4 \r\n \r\n23,980 41 \r\n \r\nI0,88J 29 \r\n \r\n20t,84 37 \r\n \r\n11 092 73 \r\n \r\n-1,123,524 82 41.851 01 \r\n \r\n31,b4h47 \r\n \r\n19,224 07 \r\n \r\n50,397 00 110,09) 81 \r\n \r\n448,958 27 )Q4 'iQ \r\n \r\n~.~z 271,271 23 16 \r\n \r\n427,345 72 \r\n \r\n628,441 Q7 \r\n \r\ns l 22J JJ!i ~,;; $ 2Z2 ~~~ Z1 S...J 1'i Z~ bJ S-------1..a,Q~~,;; ~c; \r\n \r\nNatural Cliss1ficgtHJo \r\nSalanes Faculty Suiff \r\n[mploycc Bencfil5 Tra..-~\\ Scholarships and \r\nfdlowshtps Ut1l1t1es Supphcs and Other \r\n~CTVICCS \r\nDcprcc1at1on \r\nl otal Opcratmg Expenses \r\n \r\nPlant \r\nOperahons and \r\nMamtenancc \r\n \r\nEu1Hauma1 !:la~1ficiHl2D \r\n \r\n\u003cichol:rrsh1ps \r\nand ts:l\\owshms \r\n \r\nAuxiliary \r\nEntmmsa \r\n \r\nUnallocaled \r\nDem:eciatoo \r\n \r\nTotal \r\nOperatmg \r\ntxnrnscs \r\n \r\ns 611,02445 \r\n108.505 58 \r\n586 56 \r\n \r\ns 208,482 lh \r\n98 420 28 \r\n4,Rl0 35 \r\n \r\ns 2,518.21 I 34 \r\n745,698 19 \r\n \r\n61 ll8 05 73,0QQ 58 \r\n \r\ns 4 4R2 533 55 2,892,435 \u003c,7 1,940,14024 72,0)7 71 \r\nI ,506,221 63 1,021.613 13 \r\n \r\n362 982 44 \r\nl J~I BB \r\ns 1alg 11~ 10 \r\n \r\nS---151~ ~II~ \r\n \r\n2,304,816 58 \r\nZQ2~ ,:;4 \r\ns ;251.H6~ \r\n \r\ns l Qi2 2lJ J~ \r\nS..J..Q~~ QJJ...31 \r\n \r\n4,443 816 21 \r\nI ~I 'iQ~ (1~ \r\nSJ.ZJl)!l l!lb.16 \r\n \r\n- 27 - \r\n \r\n SUPPLEMENTARY INFORMATION - 29 - \r\n \r\n GORDON COLLEGE SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO \r\nBUDGET- (NON-GAAP BASIS) RESIDENT INSTRUCTION \r\nYEAR ENDED JUNE 30 2002 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nState Appropriations Other Revenues Retained \r\n \r\nBUDGET \r\n \r\nACTUAL (1) \r\n \r\nVARIANCEFAVORABLE (UNFAVORABLE) \r\n \r\n$ 1051192700 $ 7,462,760 00 \r\n \r\n10,511,92700 $ 6 893 817 63 \r\n \r\n0 00 -568 942 37 \r\n \r\n$ 17,974,687 00 $ 17,405,744 63 $ ----568~~94=2~3~7 \r\n \r\nEXPENDIJURES \r\nPersonal SeMCes Educabon, General and Deparbnental Services \r\nOperating Expenses Education General and Departmental Servtces Sponsored Operations \r\nGaprtal Outlay Special Funding lnltlabve \r\n \r\n$ \r\n \r\n9,868,808 00 $ \r\n \r\n4 007,263 00 3,310,000 00 \r\n784,300 00 4 316 00 \r\n \r\ns 8,892,376 30 \r\n5 158,977 77 2,556,007 33 \r\n799,702 25 4 316 00 \r\n \r\n976,431 70 \r\n-1,151,714 77 753,992 67 -15,402 25 000 \r\n \r\nExcess of Revenues over Expenditures \r\n \r\n$ 17 974 687 00 $ 17 411,379 65 $ _ _ _56=3-\",3\"0-'-7--\"3=-5 \r\n \r\n$ \r\n \r\n-5 635 02 s _ _ _ _-,.5._6_3_5_0_2 \r\n \r\n(1) Actual amounts were prepared on a prescribed basis of account.mg that demonstrates comphence wrth budgetary statutes and regulabons of the State of Georgta whtdl cs a comprehenscve bam of accounbng other than generally accepted acc:ounbng pnnciples \r\n \r\nSee accompany,ng notes and Independent Accountant's Combined Report on Revl8W of Basic Financial Statements and Supplementary lnformabon \r\n- 31 - \r\n \r\n GORDON COLLEGE SCHEDULE OF REVENUES AND EXPENDITURES COMPARED TO \r\nBUDGET - {NON-GAAP BASIS} LOTTERY FOR EDUCATION YEAR ENDED JUNE 30 2002 \r\n \r\nSCHEDULE \"2' \r\n \r\nREVENUES State Appropnabons \r\n \r\nBUDGET \r\n \r\nACTUAL 11) \r\n \r\nVARIANCE FAVORABLE (UNFAVORABLE) \r\n \r\n$ \r\n \r\n18426800 S \r\n \r\n184 268 00 S --------'0--'0~0 \r\n \r\nEXPENDITURES \r\nEquipment Technology and Construction Trust Fund \r\nSpec1al Funding lnrt1etrves \r\n \r\n119,75200 $ \r\n \r\n119,75200 S \r\n \r\n000 \r\n \r\n64,516 00 \r\n \r\n6451600 \r\n \r\no oo \r\n \r\nExcess of Revenues over Expenditures \r\n \r\n$ \r\n \r\n18426800 $ \r\n \r\n184,268 00 $ --------'0--'0~0 \r\n \r\n$ \r\n \r\nooo s____..,;;o..;;o.:,,o \r\n \r\n(1) Actual amounts were prepared on a prescnbed basis of accounbng that demonstrates compliance 'With budgetary statutes and regulabons of the State of Georgia, which 1s a comprehensive basts of accounting other than generally accepted accounbng pnnc,ples \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on ReV1ew of Basic Financial Statements and Supplementary lnfonnat10n \r\n- 32 - \r\n \r\n GORDON COLLEGE \r\nRECONCILIATION OF SALARIES AND TRAVEL \r\nYEAR ENDED JUNE 30 2002 \r\n \r\nSCHEDULE \"3\" \r\n \r\nTotals per Annual Supplement \r\nAccruals June 30, 2002 June 30, 2001 \r\nCompensated Absences June 30, 2002 June 30, 2001 \r\nUmdenbfied Vanance \r\n \r\nSALARIES $ 7,306 740 34 $ \r\n \r\nTRAVEL 72 037 71 \r\n \r\n27,78441 -20,723 22 \r\n \r\n226,057 23 -159,689 54 \r\n-5 200 00 \r\n \r\n$ 7,374.969 22 $ ~---7_2,.;0~37;.,7;,;1~ \r\n \r\nSee accompanying notes and Independent Accountant's Combined Report on Review of Basic F1nanc,al Statements and Supplementary lnfonnation \r\n- 33 - \r\n \r\n "}],"pages":{"current_page":1,"next_page":2,"prev_page":null,"total_pages":2,"limit_value":10,"offset_value":0,"total_count":11,"first_page?":true,"last_page?":false},"facets":[{"name":"type_facet","items":[{"value":"Text","hits":11}],"options":{"sort":"count","limit":16,"offset":0,"prefix":null}},{"name":"creator_facet","items":[{"value":"Georgia. Department of Audits and Accounts","hits":11}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"subject_facet","items":[{"value":"Auditors' reports--Georgia","hits":11},{"value":"Financial statements--Georgia","hits":11},{"value":"Gordon College (Barnesville, Ga.)--Appropriations and expenditures","hits":11}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"location_facet","items":[{"value":"United States, Georgia, Lamar County, Barnesville, 33.05457, -84.15575","hits":11}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"counties_facet","items":[{"value":"Lamar","hits":11}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"year_facet","items":[{"value":"2001","hits":2},{"value":"2002","hits":2},{"value":"2003","hits":2},{"value":"2004","hits":2},{"value":"2005","hits":2},{"value":"2006","hits":2},{"value":"2007","hits":2},{"value":"2008","hits":2},{"value":"2009","hits":2},{"value":"2010","hits":2},{"value":"2000","hits":1},{"value":"2011","hits":1}],"options":{"sort":"count","limit":100,"offset":0,"prefix":null},"min":"2000","max":"2011","count":22,"missing":0},{"name":"medium_facet","items":[{"value":"state government records","hits":11}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"fulltext_present_b","items":[{"value":"true","hits":10},{"value":"false","hits":1}],"options":{"sort":"count","limit":100,"offset":0,"prefix":null}},{"name":"rights_facet","items":[{"value":"http://rightsstatements.org/vocab/InC/1.0/","hits":11}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"collection_titles_sms","items":[{"value":"Georgia Government Publications","hits":11}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"serial_titles_sms","items":[{"value":"Gordon College, Barnesville, Georgia, report on review of the financial statements for the fiscal year ended ...","hits":11}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"provenance_facet","items":[{"value":"University of Georgia. Map and Government Information Library","hits":11}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"call_numbers_sms","items":[{"value":"A800 .R1 G6","hits":11},{"value":"A800 .R1 G6 2000-2001","hits":1},{"value":"A800 .R1 G6 2001-2002","hits":1},{"value":"A800 .R1 G6 2002-2003","hits":1},{"value":"A800 .R1 G6 2003-2004","hits":1},{"value":"A800 .R1 G6 2004-2005","hits":1},{"value":"A800 .R1 G6 2005-2006","hits":1},{"value":"A800 .R1 G6 2006-2007","hits":1},{"value":"A800 .R1 G6 2007-2008","hits":1},{"value":"A800 .R1 G6 2008-2009","hits":1},{"value":"A800 .R1 G6 2009-2010","hits":1},{"value":"A800 .R1 G6 2010-2011","hits":1}],"options":{"sort":"count","limit":100,"offset":0,"prefix":null}},{"name":"class_name","items":[{"value":"Item","hits":11}],"options":{"sort":"count","limit":100,"offset":0,"prefix":null}},{"name":"geojson","items":[{"value":"{\"type\":\"Feature\",\"geometry\":{\"type\":\"Point\",\"coordinates\":[-84.15575, 33.05457]},\"properties\":{\"placename\":\"United States, Georgia, Lamar County, Barnesville\"}}","hits":11}],"options":{"sort":"index","limit":-2,"offset":0,"prefix":null}},{"name":"placename","items":[{"value":"United States, Georgia, Lamar County, Barnesville","hits":11}],"options":{"sort":"count","limit":100,"offset":0,"prefix":null}}]}}