CommittedtoYourSuccess
January18,2017
USGFinancialReporting
Background
ReportingEntity
AsdefinedbyOfficialCodeofGeorgiaAnnotated(O.C.G.A)§203
50,theInstitutionispartoftheUniversitySystemofGeorgia
(USG),anorganizationalunitoftheStateofGeorgia(theState)
underthegovernanceoftheBoardofRegents(Board).TheBoard
hasconstitutionalauthoritytogovern,controland
managethe
USG.
TheInstitutiondoesnothavetherighttosue/besuedwithout
recoursetotheState.TheInstitution’spropertyisthepropertyof
theStateandsubjecttoallthelimitationsandrestrictionsimposed
uponotherpropertyoftheStatebytheConstitutionandlawsof
theState.
Inaddition,theInstitutionisnotlegallyseparatefrom
theState.Accordingly,theInstitutionisincludedwithintheState’s
basicfinancialstatementsaspartoftheprimarygovernment
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Statewide/SystemReporting
StatewideReporting
ComprehensiveAnnualFinancialReport(CAFR)
StatewideSingleAuditReport
BudgetaryComplianceReport
SalaryandTravelCompilation
SystemReporting
USGConsolidatedAnnualFinancialReport
IndividualInstitutionAnnualFinancialReports
GAAP‐ FinancialReporting(AFR)
CollegesandUniversitiesgenerallysubscribeto
specializedaccountingandfinancialreporting
principlessetforthbyGASB34/35andguidelines
establishedbytheNationalAssociationof College
andUniversityBusinessOfficers’(NACUBO).
GAAP‐ FinancialReporting(AFR)
BecauseCollegescoveramajorportionoftheir
coststhroughexternalusercharges(tuitionand
fees)fortheirservices,CollegesandUniversities
haveselectedtoreportasspecialpurpose
governmentsengagedsolelyinBusinessType
Activites (BTA).
BudgetBasisFinancialStatements(BCR)
TheConstitutionoftheStateofGeorgiarequires
thatthestateoperateunderabalancedbudget.
Thismeansthatthestatecannotlegallyincura
deficitandcannotborrowmoneyforoperating
funds.Noexpensescanbeincurredforwhichfunds
arenotavailable,andnostatefundscanbespent
unlesstheyareauthorizedinanappropriationsbill
approvedbytheGeneralAssemblyofGeorgiaand
signedbytheGovernor.
GAAPACCOUNTING (AFR)VS
STATEBUDGETARYACCOUNTING(BCR)
GAAPAccounting
InstitutionsundertheUniversitySystemofGeorgiaarerequiredto
presentfinancialstatementsinaccordancewithGenerallyAccepted
AccountingPrinciples(GAAP)forinclusionintheStateConsolidated
AnnualFinancialReport(CAFR).
GAAPaccounting requiresfinancialstatementstobepresentedonthe
accrualbasisofaccounting whichmeansincomeis
reportedwhenearned
andexpensesarereportedwhenincurred.Also,capitalassetsmustbe
subjecttodepreciation.
OfficialCodeofGeorgia451289:Fundsappropriatedforaspecificfiscalyearmustbe
expendedorobligatedinthatfiscalyearorlapsetotheSta teTreasury
Obligated Obligatedfundsarecommonlyreferredtoasencumbrances. Thismeansthatthe
institutionhasissuedapurchaseorderforgoodsandservicesorhassignedacontract.
AlthoughencumbrancesarenotexpensesforGAAPpurposes,theyrepresentanexpenseof
Statefundsforthatparticularbudgetyear,andthereforerepresentanexpenseforbudgetbasis
reportingontheBudgetaryComplianceReport
Obligated(Encumbered)–POorContractIssued
ThesearenotexpensesforGAAPpurposes
Theseareexpensesforbudgetbasisreporting
Surplus(Lapse) –Unlesseligibletobekeptasreserves,currentfundsthatarenotcontractually
obligated;i.e.,notencumbered,andprioryearfundsthatareunencumberedlapseandmust
bereturnedtotheOfficeoftheStateTreasuryasaportionofsurplusasdeterminedbythe
DepartmentofAuditsandAccounts.Eachinstitutionreturnsits surplusfundstotheUniversity
SystemOffice;theUniversitySystemOfficereturnsthesefundstotheOfficeoftheState
Treasury.
GAAPACCOUNTING(AFR)VSSTATEBUDGETBASIS
ACCOUNTING(BCR)
DOAA‐ EducationAuditDivision’s
Objectives
Toconductworksufficienttorenderanopiniononthe
HigherEducationcomponentoftheConsolidatedAnnual
FinancialReport(CAFR)encompassingtheFinancial
StatementsoftheBoardofRegentsanditsrelatedunits
andtheStatewideSingleAudit.
Conductworksufficienttoev aluatethebudgetary
FinancialStatementsoftheHigher
Educationcomponent
oftheBudgetaryCompliance Report surplus”
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TypesofEngagementsPerformedby
DOAA
ForCollegesandUniversities,DOAAconductsthe
followingindividualtypesofengagements:
Audits
FullDisclosureManagementReports(ByProduct
Report)forreaccreditationpurposes
AgreedUponProceduresReports(Attestation
Engagement)
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AUDITS
Assesstheriskofmaterialmisstatementby
performingproceduresthatinclude:(1)information
gatheringprocedures toensureanadequate
understandingoftheindustry,theentityandits
environmentincludinginternalcontrolsand(2)
analyticalproceduresandtestofdetailtransactions
tounderstandthenatureofaccountbalancesonthe
financialstatements
andtoidentifyanyanomaliesor
additionalriskfactors.
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AUDITS
Oncetheriskofmaterialmisstatementisassessed,determinetheextentof
furtherproceduresnecessary.Wherethereisaheightenedlevelofrisk,
additionalproceduresmaybenecessarytodeterminewhetherthefinancial
statementsaremateriallycorrect.
DeterminewhethertheBoardofRegentstogetherwithitsrelatedunits,
takenas
awhole,havecompliedinallmaterialrespectswithstateandfederal
laws,regulations,andprovisionsofcontractsandgrantagreements.
DeterminewhethertheScheduleofExpendituresofFederalAwardsisfairly
presented.
Determinewhethertheprogramexpendituresofeachorganizationfairly
presenttheiractualexpenditurescomparedtotheeachorganization’s
annual
budget.
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FULLDISCLOSUREMANGEMENT
REPORTS
TheManagementReportcontainsselectedfinancialstatement
informationpertinenttothefinancial andcomplianceactivitiesof
theindividualentity.
TheManagementReportisforreaccreditationpurposes.
Auditorsverifythatdocumentationsupportsthefinancial
statements.
Additionaltestingisconductedinordertoexpressanopinionon
theHigherEducation componentof
theCAFRandStatewideSingle
Audit.
BudgetaryComplianceTesting
StudentFinancialAidCompliance
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AGREEDUPONPROCEDURESREPORTS
TheseAgreedUponProceduresEngagementswillincludethefollowingprocedures:
ReviewofBalanceSheetItemsreportedontheAFR–Confirmthattheyare
adequatelydocumentedandproperlyreconciledtotheInstitution’sgeneralledger.
ReviewtheInstitution’sStatement ofNetPosition,StatementofRevenues,Expenses
andChangesinNetPosition,andStatement
ofCashFlowstoensurethatthe
financialstatementspr operlyreflecttheactivitywithintheaccountingrecords.
ReviewtheInstitution’sNotestotheFinancialStatementsforaccuracyand
completeness.
ReviewtheInstitution’syearendGAAPbasisjournalentriestodetermineifthe
entrieswereaccuratelyandappropriatelydocumented.
ConfirmState
Appropriationsrevenues,StateAppropriationsreceivablesandthe
remittanceofPYsurplus.
ReviewthelistingofAccountsReceivableWriteOffsduringtheyearforappropriate
duediligenceandSAOapproval.
ReviewtheyearendBudgetBasisFinancialStatementsincludingtheBudget
ComparisonandSurplusAnalysisReportsforaccuracyandtodetermine
ifany
budgetaryoverexpendituresexist.
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AGREEDUPONPROCEDURESREPORTS
ReviewBudgetBasisReservestodeterminethattheyareproperly
documented,validandappropriate.
ConfirmthatinformationreportedtotheGeorgiaStudentFinance
CommissionhasbeenreconciledwiththeH.O.P.E.Scholarshipactivityonthe
Institution’sfinancialrecords.
ReviewtheScheduleofExpendituresofFederalAwards.Confirmthat the
informationpresented
intheschedulesupportstheactivityreportingwithin
theInstitution’saccountingrecords
Reviewcapitalassetsrecordstoensurethat(1)anannualphysicalinventory
isbeingconducted,(2)issuesnotedduringphysicalinventoryareev aluated
andcapitalassetsrecordsareproperlyadjusted,and(3)capitalization
thresholdsarebeingfollowed.
Bankreconciliations
arebeingperformedandallreconcilingitemsarebeing
addressedinatimelymanner.
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AuditReport
SECTIONI‐ FINANCIAL
INDEPENDENTAUDITOR'SREPORT
REQUIREDSUPPLEMENTARYINFORMATION‐MANAGEMENT'SDISCUSSIONANDANALYSIS
BASICFINANCIALSTATEMENTS
EXHIBITS
STATEMENTOFNETPOSITION
STATEMENTOFREVENUES,EXPENSESANDCHANGESINNETPOSITION
STATEMENTOFCASHFLOWS
NOTESTOTHEFINANCIALSTATEMENTS
SCHEDULES
REQUIREDSUPPLEMENTARYINFORMATION
SCHEDULEOFPROPORTIONATESHAREOFTHENETPENSIONLIABILITY–TEACHERSRETIREMENTSYSTEMOFGEORGIA
SCHEDULEOFPROPORTIONATESHAREOFTHENETPENSIONLIABILITY–EMPLOYEES'RETIREMENTSYSTEMOFGEORGIA
SCHEDULEOFCONTRIBUTIONS–TEACHERSRETIREMENTSYSTEMOFGEORGIA
SCHEDULEOFCONTRIBUTIONS–EMPLOYEES'RETIREMENTSYSTEMOFGEORGIA
NOTESTOTHEREQUIREDSUPPLEMENTARY
INFORMATION
SUPPLEMENTARYINFORMATION
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AuditReport
SUPPLEMENTARYINFORMATION
BALANCESHEET(NONGAAPBASIS)BUDGETFUND
SUMMARYBUDGETCOMPARISONANDSURPLUSANALYSISREPORT(NONGAAPBASIS)
BUDGETFUND
STATEMENTOFFUNDSAVAILABLEANDEXPENDITURESCOMPAREDTOBUDGETBY
PROGRAMANDFUNDINGSOURCE(NONGAAPBASIS)BUDGETFUND
STATEMENTOFCHANGESTOFUNDBALANCEBYPROGRAMANDFUNDINGSOURCE(NON
GAAPBASIS)BUDGETFUND
SECTIONII‐ COMPLIANCEANDINTERNALCONTROLREPORTS
INDEPENDENTAUDITOR'SREPORTONINTERNALCONTROLOVERFINANCIALREPORTING
ANDONCOMPLIANCEANDOTHERMATTERSBASEDONANAUDITOFFINANCIAL
STATEMENTSPERFORMEDINACCORDANCEWITHGOVERNMENTAUDITINGSTANDARDS
SECTIONIIIFINDINGSANDQUESTIONEDCOSTS
SCHEDULEOFFINDINGSANDQUESTIONEDCOSTS
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IndependentAuditor’sReport
Inouropinion,basedonourauditandthereportofother
auditors,the financialstatementsreferredtoabovepresent
fairly,inallmaterialrespects,therespectivefinancial
positionofthebusinesstypeactivitiesanddiscretely
presentedcomponentunitofGeorgiaStateUniversityasof
June30,2016,andtherespectivechangesinfinancial
positionand,whereapplicable,cashflowsthereofforthe
yearthenendedinaccordancewithaccountingprinciples
generallyacceptedintheUnitedStatesofAmerica.
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Management’sDiscussionandAnalysis
(MD&A)
FinancialmanagersofCollege/Universitiesareknowledgeableaboutthe
transactions,events,andconditionsthatarereflectedintheirfinancialreport
andofthefiscalpoliciesthat governitoperations.Thosefinancialmanagersare
askedtosharetheirinsightsintheMD&Abygivingreadersanobjectiveand
easilyreadableanalysisoftheCollege/Universitysfinancial performancefor
theyear.Thisanalysisshouldprovideuserswiththeinformationtheyneedto
helpthemassesswhetherthegovernmentsfinancialpositionhasimprovedor
deterioratedasaresultoftheyearsoperations.
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Management’sDiscussionandAnalysis
(MD&A)
RequiredComponents:
Overview:Abriefdiscussionofthebasicfinancialstatements,includingtherelationshipsof
thestatementstoeachother,andthesignificantdifferencesintheinformationtheyprovide.
Thisdiscussionshouldincludeanalysesthatassistinunderstandingmeasurementsand
resultsreportedinfinancialstatements
CondensedFinancialInformation‐ SNP,SRECNPandCashFlowStatements
Descriptionofsignificantcapitalassetandlongtermdebtactivityduringtheyear
CurrentyearresultsincomparisonwiththeprioryearwithemphasisonCY
Discussespositivesandnegativetrends
Discussesothersignificantorunusualactivityreflectedonthefinancialstatements
Mayusecharts,graphsandtablestoenhanceunderstandabilityoftheinformation
Shouldavoid“boilerplate”discussion
EconomicOutlook Descriptionofcurrentlyknownfacts,decisionsorconditionsthatare
expectedtohav easignificanteffectonfinancialpositionorresultsof operations Nota
platformtopontificate
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Management’sDiscussionandAnalysis
(MD&A)
PollsoffinancialstatementusershavesuggestedthefollowingabouttheMD&A:
Speduptheprocessofidentifyingkeyissuesandpotentialredflags
Whenwellwritten,theMD&Acanmaketheirjobseasierbyansweringthe
questionsthattheyoftenhavetocallagovernmenttogetanswersto
MD&Asbeenahugevalue…whenitsdonewell…becauseitsavesan
analyst…aphonecalloritshortensthephonecallthatthey’vegottomake.If
itswrittenwellandwrittenwithin…thespiritofthestandard.
BoilerplateMD&Asthatarenottailoredtothespecificgovernmentinquestion
arenot
veryuseful
ThequalityoftheMD&Aalsoappearedtobeanindicatortosomeofthe
qualityofagovernmentsmanagement
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CommittedtoYourSuccess
StatementofNetPosition
StatementofNetPosition
TheStatementofNetPositionisafinancialconditionsnapshotasof
June30,2016andincludesallassetsandliabilities,bothcurrent
andnoncurrent.Thedifferencesbetweencurrentandnoncurrent
assetsarediscussedintheNotestotheFinancial Statements.The
StatementofNetPositionispreparedundertheaccrualbasisof
accountingwhichrequiresrevenueandassetrecognitionwhenthe
serviceisprovided,andexpenseandliabilityrecognitionwhen
goodsorservicesarereceiveddespitewhencashisactually
exchanged.
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StatementofNetPosition
Statements of Net Position
June 30, 2016
ASSETS
Current Assets
Cash and Cash Equivalents 20,604,905$
Accounts Receivable, net
Receivables - Federal Financial Assistance 259,160
Receivables - Other 3,793,748
Due From Affiliated Organizations 192,976
Due From Other Funds
Inventories 255,279
Prepaid Items 962,453
Total Current Assets 26,068,521
Non-Current Assets
Non-current Cash (Externally Restricted) 166,002
Investments (Externally Restricted) 5,208,122
Due From Affiliated Organizations 2,132,289
Due From USO - Capital Liability Reserve Fund 1,081,968
Investments 2,085,578
Notes Receivable, net 2,010,676
Capital Assets, net 175,258,328
Total Non-Current Assets 187,942,963$
TOTAL ASSETS 214,011,484$
DEFERRED OUTFLOWS OF RESOURCES
Deferred Loss on Defined Benefit Pension Plan 5,912,854
TOTAL DEFERRED OUTFLOWS OF RESOURCES 5,912,854$
LIABILITIES
Current Liabilities
Accounts Payable 2,298,094
Salaries Payable 300,993
Benefits Payable 1,246,553
Contracts Payable 1,406,496
Retainage Payable 295,670
Deposits 307,778
Advances (Including Tuition and Fees) 1,882,349
Other Liabilities 693,191
Deposits Held for Other Organizations 931,152
Lease Purchase Obligations 2,505,465
Compensated Absences 2,094,994
Due to Affiliated Organizations 297
Total Current Liabilities 13,963,032$
Non-Current Liabilities
Lease Purchase Obligations 121,852,181
Compensated Absences 652,502
Net Pension Liability 40,292,642
Total Non-Current Liabilities 162,797,325$
TOTAL LIABILITIES 176,760,357$
DEFERRED INFLOWS OF RESOURCES
Deferred Gain on Debt Refunding 1,483,686
Deferred Gain on Defined Benefit Pension Plan 3,746,987
Deferred Inflows - Other 3,753,443
TOTAL DEFERRED INFLOWS OF RESOURCES 8,984,116$
NET POSITION
Net Investment in Capital Assets 52,534,272
Restricted for
Nonexpendable 3,785,471
Expendable 4,790,028
Unrestricted Deficit (26,929,906)
TOTAL NET POSITION 34,179,865$
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Statements of Net Position
Increase/(Decrease)
June 30, 2016 June 30, 2015 FY 2016/2015
ASSETS
Current Assets
Cash and Cash Equivalents 189,492,767$ 199,963,095$ ($10,470,328)
Accounts Receivable, net
Receivables - Federal Financial Assistance 18,201,977 16,854,218 $1,347,759
Receivables - Other 23,938,370 25,594,187 ($1,655,817)
Due From Affiliated Organizations 213,650 465,890 ($252,240)
Due From Other Funds - 93,395 ($93,395)
Inventories 397,241 388,874 $8,367
Prepaid Items 5,099,992 4,877,880 $222,112
Other Assets - 25,777 ($25,777)
Total Current Assets 237,343,997$ 248,263,316$ ($10,919,319)
Non-Current Assets
Non-current Cash (Externally Restricted) 777,477$ 97,536$ $679,941
Investments (Externally Restricted) 92,898 90,611 $2,287
Due From Affiliated Organizations - 222,703 ($222,703)
Due From USO - Capital Liability Reserve Fund 1,414,212 1,414,211 $1
Investments 11,648 11,457 $191
Notes Receivable, net 5,954,021 6,212,994 ($258,973)
Capital Assets, net 918,087,132 906,401,768 $11,685,364
Total Non-Current Assets 926,337,388$ 914,451,280$ $11,886,108
TOTAL ASSETS 1,163,681,385$ 1,162,714,596$ $966,789
GEORGIA STATE UNIVERSTY
Source:AFRExcelFile
CashandInvestments
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CashandCashEquivalents
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BankReconciliationReview
PerBankBalanceagreestobank
Perbookbalanceagreestogeneralledgertrialbalance
Reconciliationperformedtimely
Documentationavailabletosupportallreconcilingitems
noted
Evidenceofsupervisoryreview
Reconcilingitemscarriedforextendedperiodoftime
Unusualreconcilingitems
OutstandingChecklist
OutstandingItemscanbetracedinto
subsequentperiod
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BankReconciliationReview
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BankReconciliationReview
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BankReconciliationReview
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Investments
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R estrictedCash,ShortTermIn vestmentsand
In vestments
ASSETS
Current Assets
Cash and Cash Equivalents 19,104,684$
Accounts Receivable, net
Receivables - Federal Financial Assistance 765,385
Receivables - Other 3,833,500
Due From Affiliated Organizations 27,347
Prepaid Items 335,322
Total Current Assets 24,066,238
Non-Current Assets
Noncurrent Cash 155,586$
Investments (Externally Restricted) 2,821,104
Due from USO - Capital Liability Reserve Fund 220,862
Investments 270,525
Capital Assets, net 108,303,935
Total Non-Current Assets 111,772,012
TOTAL ASSETS 135,838,250
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NET POSITION
Net Investment in Capital Assets 65,673,442$
Restricted for
Nonexpendable 2,936,644
Expendable 346,904
Deficit (8,724,375)
TOTAL NET POSITION 60,232,615$
R estrictedC ash,ShortTermIn vestments
andIn vestments
CommittedtoYour
Success
YearEndEntries:YE#34and#34a
Toreclassifyexternallyrestrictedcash,shorttermInvestmentsandinvestmentstononcurrentcash,
noncurrentshortterminvestmentsandinvestments(externallyrestricted)ontheStatementofNet
Position.Examples:Endowments,RestrictedGrantsandContracts,CashGifts,Auxiliary,etc.
Led
g
e
r
Account Fund Dept ID
P
ro
g
ra
m
Class Budget Pro
j
ect/ Amount Amount
Ref Grant Debit Credit
GAAP Non-current Cash
1581xx xxxxxxx 2016 150,000.00
GAAP Cash
111xxx xxxxxxx 2016 150,000.00
150,000.00 150,000.00
Led
g
e
r
Account Fund Dept ID
P
ro
g
ra
m
Class Budget Pro
j
ect/ Amount Amount
Ref Grant Debit Credit
GAAP Non-current Cash
1581xx xxxxxxx 2016 150,000.00
GAAP Cash
111xxx xxxxxxx 2016 150,000.00
150,000.00 150,000.00
Led
g
e
r
Account Fund Dept ID
P
ro
g
ra
m
Class Budget Pro
j
ect/ Amount Amount
Ref Grant Debit Credit
GAAP Non-current S-T Investments
1582xx xxxxxxx 2016 250,000.00
GAAP S-T Investments
1198xx xxxxxxx 2016 250,000.00
250,000.00 250,000.00
Led
g
e
r
Account Fund Dept ID
P
ro
g
ra
m
Class Budget Pro
j
ect/ Amount Amount
Ref Grant Debit Credit
GAAP Non-current S-T Investments
1582xx xxxxxxx 2016 250,000.00
GAAP S-T Investments
1198xx xxxxxxx 2016 250,000.00
250,000.00 250,000.00
AccountsReceivables
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AccountsReceivableIssues
AllowanceforDoubtfulA ccountsnotproperlyreported
Banner/GeneralLedgerReconciliationnotcompleted
AccountsReceivablesnotbeingactivelymanaged
Failuretoprovideaccuratelisting
DueDiligencedocumentationnotavailable
UncollectibleAccountsReceivableReservebalance
growingrapidlycomparetoinstitution’ ssector
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AccountsReceivables
BPM‐ AccountsReceiv ables
Alluncollectibleaccountswillbereservedasspecificaccountsareaged
andconsequentlydeemedtobeuncollectible.Generally,debtsagedmore
thanonehundredeighty(180)daysfromtheduedatearenolonger
probableforcollection.Circumstancesmayarisewhenspecificaccounts
becomeuncollectibleearlierthan
onehundredeighty(180)days.
Note: Duedateisdefinedasfollows:
Forstudentaccounts,theduedateisthefirstdayofclassesfortheterm.
Fornonstudentaccounts,theduedateisgenerallythirty(30)daysafterthe
invoicedate.
Astudentaccountduedatemaybemodifiedtothedatethatfinancial aidis
withdrawninordertogivethestudentandinstitutionanopportunitytolocate
otherpaymentarrangements.
Accountsreceivableshouldbeanalyzedandaccountedformonthlyas
appropriate,nolessthanquarterly.
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AccountsReceivables
BPM‐ AccountsReceiv ables
Accountsreceivableshouldbeanalyzedandaccountedfor
monthlyasappropriate,nolessthanquarterly.
Alluncollectibleaccountsagedmorethanonehundred
eighty(180)daysfromtheduedateshouldbereservedas
anuncollectibleaccount.Thisisthetimebywhich
collectionagencyeffortsshouldcommence.
Oncean
invoiceisdeterminedtobeuncollectible,either
beforeorbytheone hundredeighty(180)daypastdue
date,allinvoiceswithinthataccountshouldbereserved
asanuncollectibleaccount.
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AccountsReceivables
BPM‐ AccountsReceivables
Whenuncollectibleaccountsarereserved,afundingsourcemustbeidentifiedtofund
thereserve.GASBrequiresthatrevenuegeneratedtransactions,whichgenerate
accountsreceivablethataredeemeduncollectible,shouldbereversed.This
methodologyisthecorrectmethodforbothbudgetaryandGAAPfinancialreporting.
GeorgiaAnnotated
Code501618allowsfortruewriteoffofuncollectiblereceivables
for$3,000orless.
Inordertoaccomplishtheappropriaterecognitionofrevenue,thefollowingmethod
willbeused:TheAllowanceforDoubtfulRevenue(ContraRevenue)accountshould
bedebitedandtheAllowanceforDoubtfulAccountsReceivable(ContraAccounts
Receivable)accountshouldbecredited.Thiseff ectivelyreversestherevenuefrom
currentyearoperationsforbothbudgetaryaccountingandGAAPreporting.
TheContraRevenueentryensuresthattheuncollectibleaccountamountisnotspent.
Forbudgetaryreportingpurposes,theAllowanceforDoubtfulAccountsReceivable
(ContraReceivable)isreportedasa
NetAssetreserveandnotasareductionto
AccountsReceivable.
Thismethodwillbeusedregardlessoftheamountofeachuncollectibleaccount.As
approvedbythestateauditorsunderProceduralDirective17(July21,1992),“fund
integritymustbemaintained atalltimeswithregardtotheuncollectibleaccounts”.
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FY2016Deficiencies
AccountsReceivables
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Category of Entry Closing/Year-End
Enter all chart fields marked with xxxxxx
Sample Entry # YE-7c
Date Entered Journal #
Ledger Account Fund Dept ID Program Class Budget Pro
j
ect/ Amount Amount
Ref Grant Debit Credit
Actuals
Allowance for Doubtful Revenue
4xxx98 xxxxx xxxxxxx xxxxx xxxxx 2016 2,000.00
Actuals
Allowance for Doubtful Accounts Receivable
12xx99 xxxxx xxxxxxx xxxxx xxxxx 2016 2,000.00
or (See Note Below)
Accounts Receivable (See Note Below)
12xxxx xxxxx xxxxxxx xxxxx xxxxx 2016 xxxx.xx
2,000.00 2,000.00
0.00
To reserve uncollectible accounts aged more than one hundred eighty days from the invoice due date as defined. (See BPM Section 10.4.1)
At the point one invoice is determined uncollectible, the respective account balance should be reserved.
Note:
Uncollectible accounts (<= $3,000) may be written directly off vs. reserved first if all collection efforts have been made and approval
is received from State Accounting Office. (per BPM 10.4)
Source of Information
A/R Aging Report
JOURNAL ENTRY FORM
Descri
p
tion/Ob
j
ective:
Type of Entry Manual
PEACHTREE STATE UNIVERSITY
AccountsReceivables
BPM‐ AccountsReceivables
Whenaccountsreceivableof$3,000orlessareultimatelydetermineduncollectibleand
duediligenceforcollectionhastakenplace,theAccountsReceivableaccountshouldbe
creditedandtheAllowanceforDoubtfulAccountsReceivableaccountshouldbedebited.
ThiseliminatesthereceivablefromthebooksofthecampusincompliancewithGeorgia
law.
Note: Duediligenceisdefinedastheperformanceofboth:
Collectioneffortsbytheinstitutionaccordingtotheminimumguidelines inSection
10.7.4,and
Collectionagencyefforts,subjecttocostvs.benefitassessmentbytheinstitution.
Writeoffofreceivablesisbasedupontheaggregateofthedebtor,notonindividual
transactions.Forexample,astudentmayowe$4,000inaggregate,withtentransactionsof
whichnosingletransactionexceeds$3,000.Inthiscase,
the$4,000cannotbewrittenoff.
Theaccountsreceivableshouldbeanalyzedtodetermineifallreceivablesagedmorethan
onehundredeighty(180)daysfromtheduedatearecollectible.Afterduediligence
collectioneff orts,thebaddebts(lessthanorequalto$3,000)shouldbewrittenoffas
follows:
AgainstexistingAllowanceforDoubtfulAccountsReceivableaccount,asdescribedin
item#6above,or
Againstthecontrarevenueaccountiftheaccountwasnotpreviouslyreserved.
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44
AccountsReceivables
BPM‐ AccountsReceiv ables
TheentriesforuncollectibleAccountsReceivableandthefundingsource
forthoseamountscanbesummarizedinthefollowingtable:Uncollectible
AccountsReceivable
Foraccountsreceivablewriteoffsresultingfromnonrevenue
transactions,suchascashadvances,thereisnooffsettingrevenue.
Therefore,theaccountingentryshoulddebitthebaddebtsexpense
accountandcreditthereceivableaccount.
CreatingAMoreEducatedGeorgia
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Category of Entry Year-End/Closing
Enter all chart fields marked with xxxxxx
Sample Entry #7a
Date Entered
Ledger Account Fund Dept ID Class Budget Pro
ect/ Amount Amount
Ref Grant Debit Credit
Actuals
Allowance for Doubtful Accounts Receivable
12xx99 xxxxx 2016 2,500.00
Actuals
Accounts Receivable
12xxxx xxxxx 2016 2,500.00
2,500.00 2,500.00
0.00
To write-off uncollectible account ($3,000.00 or less). See BPM Section 10.4.1.
Must have documentation (Specific identification) and must have exercised due diligence in collection efforts
Must have approval documentation from State Accounting Office.
Source of Information
Analysis of A/R and A/R Aging Report
PEACHTREE STATE UNIVERSITY
JOURNAL ENTRY FORM
Type of Entry Manual
Descri
p
tion/Ob
j
ective:
CreatingAMoreEducatedGeorgia
46
StatementofNetPosition‐ A/R
Information
DataSubmissiontoUSO:
TGRRGON
Quarterly(StartingwithJune30,2016)
June30–DueAugust1
Sept30–DueOctober31
December31–DueJanuary31
March31–DueMay1
InstitutionswillbeaskedtosubmitthroughMoveIT:
TGRRGON
PSTrialBalance
Exceltemplateusedtoreconcile
AgedAccountsReceivableListing
InstitutionswillcontinuetosubmitthroughDataWarehouse December/June
InstitutionswillbeaskedtosubmitreconciliationbetweenDWHsubmissionandgeneral
ledgerthroughMoveIt
CommittedtoYourSuccess
47
Reviewing Accounts Receivable
Banner‐ TGRRCON
Banner is a subsidiary ledger
Detail for General Ledger balances
Record of who owes what
Cash receipting system
Required monthly – BPM Section 1.9
What is needed?
Reconciliation Spreadsheet
Banner – TGRRCON
PeopleSoft –Trial Balance Report
48
R econciliationSpreadsheet
49
Banner‐ TGRRCON
50
PeopleSoft TrialBalance
51
BannerAgingAccountsReceivableReport
StudentID Name Fund Acct 30-Jan 31-60 61-90 91-120 121-180 181-364 <1 yr 1-3 yrs 3-5 yrs >5 yrs Future Tot A/R
900000067 Darth Vader 10600 121000 193.81 193.81
900000101 Chewbacca 12250 121000 10 10
900000101 Chewbacca 10600 121000 676.62 676.62
900000101 Chewbacca 10500 121000 60.48 60.48
900000513 Obi-Wan Kenobi 10600 121000 474.71 474.71
900000513 Obi-Wan Kenobi 12250 121000 20 20
900000513 Obi-Wan Kenobi 13000 121000 268 268
900000513 Obi-Wan Kenobi 16000 121000 35 35
900000513 Obi-Wan Kenobi 10500 121000 726.96 726.96
900000615 Han Solo 10500 121000 21.28 21.28
900000615 Han Solo 10600 121000 1.76 1.76
900000856 Princess Leia 10600 219802 -100 -100
900000856 Princess Leia 10500 219801 -142.27 -142.27
900000983 Luke Skywalker 10600 121000 90 90
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AgencyFunds
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53
Category of Entry Year-End/Closing
xxxxx = Required Chart Field
Sample Entry # YE-33a
Date Entered Journal #
Ledger Account Fund Dept ID Program Class Budget Pro
j
ect/ Amount Amount
Ref Grant Debit Credit
GAAP Receivables - Other
1271xx 60000 xxxxxxx 2016 100,000.00
GAAP Funds Held for Others
241100 60000 xxxxxxx 2016 40,000.00
241100 60000 xxxxxxx 2016 20,000.00
241100 60000 xxxxxxx 2016 10,000.00
241100 60000 xxxxxxx 2016 15,000.00
241100 60000 xxxxxxx 2016 15,000.00
100,000.00 100,000.00
0.00
To establish a receivable account for any Agency Account (that is a true receivable) that has a negative balance at year end.
This is only an example. Each department ID must have a separate amount.
Type of Entry Manual
Descri
p
tion/Ob
j
ective:
CapitalAssets
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CreatingAMoreEducatedGeorgia
55
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56
StatementofNetPosition
All balancesheetactivitymusthavesupportingdocumentation.
Supportingdocumentat ion:
Account
Name
Amount
Onlyex ceptionisaccountsreceivableactivitythroughBanner.TheTGRRGONprovides
thedetailedinformationbystudenttosupportthegeneralledger.
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57
ContractsandRetainagesPayable
YearEndEntries29,29aand29b:
Objective:
YE29
Torecordtheliabilityforthe10%retainageamountwithheldfromthe
paymentvoucherwhichshouldrepresent10%oftheprojecttodateexpense
thataresubjecttoretainage(211950)
YE29a Torecordcontactspayableforcampusmanagedprojectswere
contractamountshavebeenearnedandbilled bythecontr actor
orarchitectat
June30(211900)
YE29b –Tomatchtherevenuetotheretainagepayable ifreimbursable
project.
CommittedtoYourSuccess
58
ContractsandRetainagesPayable
Date Entered Journal #
Account Fund Dept ID Pro
g
ra
m
Class Bud
g
et Pro
j
ect/Grant Amount Amount
Ref Debit Credit
Construction Work in Progress
1690xx xxxxx 2016 833,333.33
Contracts/Retainage Payable
2119xx xxxxx 2016 833,333.33
Investment in Plant
311100 xxxxx 2016 833,333.33
Unallocated Net Asset - Current Year
342100 xxxxx 2016 833,333.33
1,666,666.66 1,666,666.66
0.00
This entry is to book the liability in the GAAP Ledger for the 10% retainage amount withheld from the payment voucher. The retainage amount
should represent 10% of project-to-date expenses that are subject to retainage.
An adjustment to Invested in Plant and Unrestricted Net Assets is also required. Investment in Plant must be increased by the amount of
Capital Asset increase. This entry should be reversed in the next fiscal year.
Descri
p
tion/Ob
j
ective:
CommittedtoYourSuccess
59
Advances
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SummerTuitionandFees
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61
Category of Entry: Year-End Entry
Enter all chart fields marked with xxxxxx
Sample Entry # YE-52
Date Entered Journal #
Ledger Account Fund Dept ID Program Class Budget Pro
j
ect/ Amount Amount
Year Grant Debit Credit
ACTUALS Student Tuition & Fees xxxxxx xxxxx 2016 155,000.00
ACTUALS Advances (Including Tuition and Fees) xxxxxx xxxxx 2016 155,000.00
155,000.00 155,000.00
Description/Objective:
The purpose of this entry is to accurately reflect results of operations to account for summer school revenues and expenses
based on approved allocation methodology. Note: This should be in the fiscal year for which tuition applies.
Type of Entry: Manual
ThisentryisforinstitutionsthatdonotprocesssummersplitthroughBanner.Note:Ifaninstitution
calculatedbasedondatesviaJE,theinstitutionmustprovidetheadvanceslistingbystudentfrombannerfor
theentiresummertermtoauditorswiththesplitpercentagecalculation.
LongTermDebt
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NetPosition
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ChangesinNetPosition(GAAPBasis)
Increase/(Decrease)
June 30, 2016 June 30, 2015 FY 2016/2015
NET POSITION
Net Investment in Capital Assets 641,611,725$ 627,938,660$ $13,673,065
Restricted for
Permanent Trus
t
Nonexpendable
Permanent Endowment 97,689 96,860 $829
Expendable
Restricted E&G and Other
Organized Activities 1,736,634 15,800,512 ($14,063,878)
Federal Loans - 6,663,197 ($6,663,197)
Institutional Loans - 31,540 ($31,540)
Quasi-Endowments - 11,416 ($11,416)
Capital Projects 1,200,000 1,200,000 $0
Sub-Total 2,936,634$ 23,706,665$ ($20,770,031)
Unrestricted
Auxiliary Operations 38,349,286$ 31,839,486$ $6,509,800
R & R Reserve 24,048,585 23,552,126 $496,459
Reserve for Encumbrances 37,662,306 25,049,541 $12,612,765
Reserve for Inventory 323,807 349,139 ($25,332)
Other Unrestricted (193,506,655) (197,233,112) $3,726,457
USO Reserve Fund 1,414,211 1,414,211 $0
Sub-Total (91,708,460)$ (115,028,609)$ $23,320,149
TOTAL NET POSITION 552,937,588$ 536,713,576$ 16,224,012$
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ChangesinFundBalance(BudgetBasis)
FYE2014
FYE 2015
Reserved
304 CapitalOutlay 0.00
305 DepartmentalSalesandServices (555.47)
(623.87) 68.40
306 IndirectCostRecoveries (4,267.32)
(39,980.50) 35,713.18
307 TechnologyFees (166,111.22)
(115,022.75) (51,088.47)
308 RestrictedFunds (136,877.26)
(128,819.52) (8,057.74)
309 UncollectibleAccountsReceivable (106,141.43)
(108,534.67) 2,393.24
310 Inventories (33,175.00)
(33,175.00) 0.00
311 CarryOver"PerStateAccountingOffic
e
0.00
0.00
312 Ea rlyRetirementProgram 0.00
0.00
312a TuitionCarryForward (345,079.14)
(340,615.19) (4,463.95)
313a Unreserved(Surplus)‐Unrestricted (16.09)
(318.03) 301.94
313b Unreserved(Surplus)‐Unrestricted (1,117.84)
(1,117.84)
313c Unreserved(Surplus)‐Unrestricted (254.73)
(254.73)
313d Unreserved(Surplus)‐Unrestricted 0.00
0.00
313e Unr eserved(Surplus)‐Unrestricted 0.00
0.00
313f Unreserved(Surplus)‐Unrestricted 0.00
0.00
313g Unreserved(Surplus)‐Unrestricted 0.00
0.00
313h Unreserved(Surplus)‐Unrestricted (7,280.21)
(7,280.21)
Unreserved(Surplus)‐Restricted
0.00
0.00
(800,875.71) (767,089.53) (33,786.18)
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NetInvestmentinCapitalAssets
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66
Capital Assets, net
Less: Lease Purchase Obligations (current portion)
Less: Lease Purchase Obligations (noncurrent portion)
Less: Notes and Loans Payable (current portion)
Less: Notes and Loans Payable (noncurrent portion)
Less: Contract/Retainage Payable (Capital Asset Related)
Less: Deferred Loss on Debt Refunding
Less: Contracts Payable (Capital)
Less: Retainage Payable (Capital)
Add: Deferred Gain on Debt Refunding
Equal: Net Investment in Capital Assets
Deferred GainFromDebtRefunding(298100)shouldbeincludedinthecalculationofNetInvestedin
CapitalAssets(NICA).GASBQ&Aspecificallyaddressesthisissueanditshould beincludedinthe
calculation.
YE‐8&8aRenewalsandReplacement
Reserve
Objective:
TobookcurrentyearnetassetsallocatedforRenewalsandReplacement.The
increasetorenewalsandreplacementsshouldagreewiththecurrentyear
depreciationassociatedwiththosebuildings/facilities.
Note: PPVprojectsdonotrequireadditionalRRReserves.TheRRReserveforPPVsareincludedinthe
annualrentalpaymentstotheFoundationarebeingheldinarestrictedaccountbytheTrustee.
CommittedtoYourSuccess
67
Residence Stores & Food Parking/ Health ntercollegiate
Halls Shops Services
T
ransportatio
n
Services Athletics Other Total
Fund Codes 12210 12230 12220 12250 12240 12280 12260; 12270
Beginning R & R
-$ -$ -$ -$ -$ -$ -$
-$
Add: Current Year Depreciation
- - - - - - -
-
Less: Current Year Depreciation PPV, GHEFA
- - - - - - -
- Journal Entry # YE-8
Less: Current Year Expenditures (1)
- - - - - - -
- Journal Entry #YE- 8a
Add/(Less): Adj. to Reserve for Deferred
Gift Revenue from Auxiliary Vendors (if
applicable)
- - - - - - -
-
Add: Inventory Reserve from prior years
- - - - - - -
- Journal Entry #YE- 32 or YE-32a
Calculated Value of Current Year R & R (2) -$ -$ -$ -$ -$ -$ -$ -$
YE‐8&8aRenewalsandReplacement
Reserve
CalculateindividuallyforeachnonPPVAuxiliaryProject
BeginningR&RReserve
Add:CurrentYearDepreciation
Less:CurrentYearExpendituresfromR&R
ValueofCurrentYearR&RReserve
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68
Stores & Food Parking/ Health ntercollegiate
Shops Services
T
ransportatio
n
Services Athletics Other Total
Fund Codes 12230 12220 12250 12240 12280 12260; 12270
Riden Hall Arnold Hall
Beginning R & R
-$ -$ -$ -$ -$ -$ -$ -$
-$
Add: Current Year Depreciation
- - - - - - - -
-
Less: Current Year Expenditures (1)
- - - - - - - -
-
Calculated Value of Current Year R & R (2) -$ -$ -$ -$ -$ -$ -$ -$ -$
Residence Halls
12210
RenewalsandReplacements(R&R)Reserve
ShouldbemaintainedforUniversityownedpropertyfundedbyAuxiliary.
DoesanyonehaveanyUniversitypropertyfundedbyStudentActivitiesor
anyotherinternalfundingsource?
IfyouhaveolderexistingR&RreservebalancesforUniversityownedbuildings
thathavebeendemolished,youmayreduceyourR&Rreservebythat
amount.
R enew alsandReplacementReserve
YE‐32and32aVendorGiftRevenue
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70
Category of Entry - Closing/Year-End
xxxxx = Required Chart Field
Sample Closing/Year-End J.E. # YE-32 Year 1 of multi-year agreement
Date Entered Journal #
Ledger Account Fund Dept ID
P
ro
g
ra
m
Class Budget Pro
j
ect/ Amount Amount
Ref Grant Debit Credit
GAAP Private Gifts Capitalized
4858xx 12220 xxxxx xxxxx xxxxx 2016 1,600,000.00
Advances (Including Tuition and Fees) - Other Current
2170xx 12220 xxxxx xxxxx xxxxx 2016 400,000.00
Advances (Including Tuition and Fees) - Other Noncurrent
2913xx 12220 xxxxx xxxxx xxxxx 2016 1,200,000.00
Investment in Plant
311100 12220 2016 1,600,000.00
Unallocated Net Asset - Current Year
3211xx 12220 2016 1,600,000.00
Unallocated Net Assets-Current Year (Unrestricted) 12220 xxxxx xxxxx xxxxx 2016 1,600,000.00
3211xx
Reserve for Deferred Gift Revenue Auxiliary Vendor
329200 12220 xxxxx xxxxx xxxxx 2016 1,600,000.00
4,800,000.00 4,800,000.00
JOURNAL ENTRY FORM
Type of Entry - Manual
PEACHTREE STATE UNIVERSITY
StatementofRevenues,
ExpenseandChangesinNet
Position
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SRECNP
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StatementofRevenues,ExpensesandChangesinNetPosition
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June 30, 2016
REVENUES
Operating Revenues
Student Tuition and Fees (net) 56,847,486$
Federal Appropriations
Grants and Contracts
Federal 698,165
State 20,860
Other 182,076
Sales and Services 2,232,936
Rents and Royalties 52,133
Auxiliary Enterprises
Residence Halls 15,038,942
Bookstore 1,036,584
Food Services 7,574,688
Parking/Transportation 1,509,071
Health Services 1,376,142
Intercollegiate Athletics 2,477,273
Other Organizations 329,877
Other Operating Revenues 336,765
Total Operating Revenues 89,712,998
EXPENSES
Operating Expenses
Salaries:
Faculty 28,143,288$
Staff 31,373,553
Employee Benefits 18,447,378
Other Personal Services 291,494
Travel 1,129,480
Scholarships and Fellowships 2,907,575
Utilities 3,229,584
Supplies and Other Services 29,844,635
Depreciation 8,951,830
Total Operating Expenses 124,318,817
Operating Income (loss) (34,605,819)
NONOPERATING REVENUES (EXPENSES)
State Appropriations 31,536,964$
Grants and Contracts
Federal 6,639,799
State 100,468
Other 1,385,843
Gifts 328,422
Investment Income (endowments, auxiliary and other) 205,303
Interest Expense (capital assets) (6,362,123)
Other Nonoperating Revenues (Expenses) (798)
Net Nonoperating Revenues 33,833,878
Income (Loss) Before Other Revenues, Expenses,
Gains, or Losses (771,941)
Capital Grants and Gifts
Federal
State 1,427,504
Other 254,075
Additions to permanent endowments 46,290
Special Item
Total Other Revenues, Expenses, Gains or Losses,
and Special Item 1,727,869
Increase (Decrease) in Net Position 955,928
NET POSITION
Net Position-Beginning of Year, As Originally Reported 33,223,937
Prior Year Adjustments
Net Position-Beginning of Year, Restated 33,223,937
Net Position-End of Year 34,179,865$
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RevenueAnalysis
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75
Expense
Analysis
EXPENSES
Operating Expenses
Salaries:
Faculty 157,366,779$ 153,087,711$ $4,279,068
Staff 261,229,713 250,290,466 $10,939,247
Employee Benefits 105,290,102 98,044,095 $7,246,007
Other Personal Services 2,407,189 2,401,274 $5,915
Travel 6,851,458 6,850,412 $1,046
Scholarships and Fellowships 60,101,950 57,968,778 $2,133,172
Utilities 20,872,409 21,714,624 ($842,215)
Supplies and Other Services 159,029,327 166,553,517 ($7,524,190)
Depreciation 51,616,165 54,101,959 ($2,485,794)
Total Operating Expenses 824,765,092$ 811,012,836$ $13,752,256
Operating Income (loss) (330,414,421)$ (318,741,084)$ ($11,673,337)
NONOPERATING REVENUES (EXPENSES)
State Appropriations 244,170,135$ 239,977,179$ $4,192,956
Grants and Contracts
Federal 100,037,860 104,650,105 ($4,612,245)
Other 4,255,069 3,364,783 $890,286
Gifts 6,649,537 7,556,345 ($906,808)
Investment Income (endowments, auxiliary and other) 743,705 770,576 ($26,871)
Interest Expense (capital assets) (17,392,678) (24,124,485) $6,731,807
Other Nonoperating Revenues (Expenses) (6,103,984) (6,995,924) $891,940
Net Nonoperating Revenues 332,359,644$ 325,198,579$ $7,161,065
Income (Loss) Before Other Revenues,
Expenses, Gains, or Losses 1,945,223$ 6,457,495$ ($4,512,272)
Capital Grants and Gifts
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ExpenseAnalysisbyNaturalClassification
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ExpenseAnalysis
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ExpenseAnalysisbyFunctional
Classification
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CashFlowStatement
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SectionsoftheCashFlowStatement
CashFlowsfromOperatingActivities
CashFlowsfromNoncapitalFinancingActivities
CashFlowsfromCapitalandRelatedFinancing
Activities
CashFlowsfromInvestingActivities
ReconciliationofOperatingLosstoNetCashUsedby
OperatingActivities
NonCashInvesting,NonCapitalFinancing,and
CapitalandRelatedFinancingTransactions
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CashFlowStatement
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82
June 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Payments from Customers 89,162,777$
Federal Appropriations
Grants and Contracts (Exchange) 1,086,603
Payments to Suppliers (53,868,983)
Payments to Employees (60,602,808)
Payments for Scholarships and Fellowships (2,907,575)
Loans Issued to Students 280,254
Collection of Loans to Students
Other Payments
Net Cash Provided (Used) by Operating Activities (26,849,732)
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
State Appropriations 31,536,964$
Agency Funds Transactions (374,395)
Gifts and Grants Received for Other Than Capital Purposes 8,500,822
Other Noncapital Financing Receipts 2,705
Other Noncapital Financing Payments
Net Cash Flows Provided by Non-capital Financing Activities 39,666,096
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Capital Gifts and Grants Received 764,670$
Proceeds from Sale of Capital Assets
Purchases of Capital Assets (3,588,612)
Principal Paid on Capital Debt and Leases (2,227,841)
Interest Paid on Capital Debt and Leases (6,324,733)
Net Cash used by Capital and Related Financing Activities (11,376,516)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from Sales and Maturities of Investments 969,269$
Investment Income 305,092
Purchase of Investments (822,487)
Net Cash Provided (used) by Investing Activities 451,874
Net Increase/Decrease in Cash 1,891,722
Cash and Cash Equivalents - Beginning of year 18,879,185
Cash and Cash Equivalents - End of Year 20,770,907$
RECONCILIATION OF OPERATING LOSS TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating Income (loss) (34,605,819)$
Adjustments to Reconcile Net Income (Loss) to Net Cash
Provided (Used) by Operating Activities
Depreciation 8,951,830
Operating Expenses Related to Noncash Gifts
Change in Assets and Liabilities:
Receivables, net 912,197
Inventories (28,045)
Prepaid Items (42,521)
Other Assets
Notes Receivable, Net 280,254
Accounts Payable (618,522)
Salaries Payable 78,100
Benefits Payable
Contracts Payable 297,941
Retainage Payable 88,746
Deposits (15,000)
Advances (Including Tuition & Fees) (367,722)
Other Liabilities 41,076
Funds Held for Others
Compensated Absences (27,386)
Due to Affiliated Organizations (17,299)
Pollution Remediation
Claims and Judgments
Net Pension Liability 7,797,046
Other Post-Employment Benefit Liability
Change in Deferred inflows/outflows of resources:
Deferred Inflows of Resources (7,962,306)
Deferred Outflows of Resources (1,612,302)
Net Cash Provided (used) by Operating Activities (26,849,732)$
WhatisCashFlow?
GASB Q&A2.15.1.Q—Whatconstitutesacashflow?(Q&A922)
A—Sometimestheremaybeaquestionastowhetheracashtransactionhas
occurred.Itmaybeconfusingtoidentifyacashflowinabankingenvironment.
Generally,cashflowsonlyifitchangeshands;thatis,ownershipofcashlegally
changes.Inaninternalexchangetransactionconductedtotallywithinabank,a
cashtransactionoccursonlyifadebitorcreditismadetoagovernmental
enterprise'sbankaccount.Forexample,aservicechargeorinterestincomeis
consideredtobeacashtransactiononthedatethebankpoststheamountto
theaccount.Afterthatdate,theinterestamountisavailableforwithdrawalor
theamountpostedfortheservicechargeisnolongeravailableforwithdrawal.
Anotherexampleisaloangrantedbyabank.Iftheloanproceedsarecreditedto
theborrower'sbankaccount,acashflowoccurred.Ifthebankremittedthe
proceedsdirectlytothevendor,anoncashfinancingactivityoccurred.(See
Question2.32.1foradiscussionofnoncashtransactions.)
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CashFlowRefresher
CashflowactivityforUSGinstitutionsshouldbe
reportedgross.
Studentloanactivityshouldnotbereportednet.Loans
issuedshouldbereportedseparatefromloanscollected.
Yearendjournalentryaddedtobreakoutactivityforcashflow
reporting
Investmentactivityshouldnotbereportednet.Investment
purchasesshouldbereportedseparatefrominvestment
sales.Exception:Repurchaseagreementreoccurringtransactions.
Yearendjournalentryaddedtobreakoutactivityforcashflow
reporting
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CashFlowRefresher
CreatingAMoreEducatedGeorgia
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Category of Entry - Cash Flow Reporting
xxxxx = Required Chart Field
Sample Closing/Year-End J.E. #YE-56
Date Entered Journal #
Ledger Account Fund Dept ID Program Class Budget Project/ Amount Amount
Ref Grant Debit Credit
GAAP Loans Issued During CY for Cash Flow
122998 3xxxx 25,000.00
GAAP Loans Issued During CY for Cash Flow (Contra Acct)
122997 3xxxx 25,000.00
25,000.00 25,000.00
0.00
To report student loans issued during the current fiscal year separately from student loans collected during the current fiscal year.
Source of Information:
Analysis of student notes receivable
PEACHTREE STATE UNIVERSITY
JOURNAL ENTRY FORM
Type of Entry - Manual
Description/Objective:
CashFlowRefresher
CreatingAMoreEducatedGeorgia
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Category of Entry - Cash Flow Reporting
xxxxx = Required Chart Field
Sample Closing/Year-End J.E. #YE-57
Date Entered Journal #
Ledger Account Fund Dept ID Program Class Budget Project/ Amount Amount
Ref Grant Debit Credit
GAAP For Cash Flow - Purchase of investments
495109 xxxxx 25,000.00
GAAP For Cash Flow - Purchase of investmentsContra Account
495110 xxxxx 25,000.00
25,000.00 25,000.00
0.00
To report investment purchases separate from proceeds from sales and maturities of investments for cash flow reporting.
Source of Information:
Analysis of investment activity
PEACHTREE STATE UNIVERSITY
JOURNAL ENTRY FORM
Type of Entry - Manual
Description/Objective:
CashFlowRefresher
OperatingActivity Operatingactivitiesgenerally
resultfromprovidingservicesandproducingand
deliveringgoods,andincludealltransactionsand
othereventsthatarenotdefinedascapitaland
relatedfinancing,noncapitalfinancing,orinvesting
activities(GASB Codification2450.113)
CreatingAMoreEducatedGeorgia
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CashFlowRefresher
OperatingActivityisaresidualcategoryforcash
flowsthatcannotbeproperlyclassifiedasNoncapital
FinancingActivity,CapitalFinancingActivity,and
InvestingActivity.
Areasonablenesstestshouldbeadequatefor
verificationandreview(i.e.comparisontothe
SRECNP).
CreatingAMoreEducatedGeorgia
91
CashFlowRefresher
Noncapitalfinancingactivitiesincludeborrowing
moneyforpurposesotherthantoacquire,construct,
orimprov ecapitalassetsandrepayingthose
amountsborrowed,includinginterest.Thiscategory
includesproceedsfromallborrowings(such as
revenueanticipationnotes)notclearlyattributable
toacquisition,construction,orimprovementof
capitalassets,regardlessoftheformofthe
borrowing.Alsoincludedarecertainotherinterfund
andintergovernmentalreceiptsandpayments(GASB
Codification2450.117)
CreatingAMoreEducatedGeorgia
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CashFlowRefresher
Capitalandrelatedfinancingactivitiesinclude(a)
acquiringanddisposingofcapitalassetsusedin
providingservicesorproducinggoods,(b)borrowing
moneyforacquiring,constructing,orimproving
capitalassetsandrepayingtheamountsborrowed,
includinginterest,and(c)payingforcapitalassets
obtainedfromvendorsoncredit.(GASB Codification
2450.120)
CreatingAMoreEducatedGeorgia
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CashFlowRefresher
Investingactivitiesincludemakingandcollecting
loans(exceptstudentloanprograms,whichare
includedinoperatingactivities)andacquiringand
disposingofdebtorequityinstruments.(GASB
Codification2450.120)
CreatingAMoreEducatedGeorgia
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CashFlowRefresher
Entityshouldfocusonmakingthelineitemswithin
theNoncapita lFinancing Activity,CapitalFinancing
Activity,andInvestingActivitycategoriesas preciseas
possible.
Theselineitemsgenerallyareafocusofauditprocedures.
DetailedreconciliationstoSRECNP accountsshouldbe
performed.
CashflowworksheetswereaddedtotheAFR excelfile
toassistwithreconciliation.
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Cash Flow Worksheet
Gifts and Grants Received for Other Than Capital Purposes
Fiscal Year Ended June 30, 2016
Reconciliation of gifts and grants received for other than capital purposes:
From SRECNP:
Non-operating Grants and Contracts
Federal (4911xx, 4941xx) 5
1
State (4912xx,4942xx)
Other (4913xx,4914xx,4943xx,4944xx)
3
Non-operating Gifts (4851xx,4853xx,4855xx,4857xx, 4859xx for all funds except 40000) 4
1
Additions to Permanent Endowments (4859xx Fund 40000 only)
Operating Expenses Related to NonCash Gifts (727198) (Enter as Negative) (3
1
Change in SNP Accounts:
Change in Accounts Receivable:
Non-operating Grants and Contracts Federal AR (124998) (Determined Manually)
Prior Year Ending Balance 772,570.77
Current Year Ending Balance 750,000.00
Non-operating Grants and Contracts State AR (Determined Manually)
Prior Year Ending Balance -
Current Year Ending Balance -
Non-operating Grants and Contracts Other AR (Determined Manually)
Prior Year Ending Balance
Current Year Ending Balance
250 000 00
1. Below, provide a reconciliation between amounts reported on the Statement of Revenues, Expenses, and Changes in Net Position and Gifts and Grants Received for Othe
r
reported on the Statement of Cash Flows. Enter amounts within the cells highlighted yellow.
Non‐CashInvesting,Non‐Capital
Financing,Capital&RelatedFinancing:
CreatingAMoreEducatedGeorgia
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WhatsRequiredtobereported?SeeGASB Q&A2.32.1
Ifnoncashitemsmeetthef ollowthreecriteria,theyarerequiredtobe
disclosed.
Thetransactionisnoncash.GASB Q&A2.15.1–2.15.6provideguidanceonidentifying
acashflow.
Thetransactionaff ectsrecognizedassets/liabilities/deferredinflows/deferred
outflows.Noncashtransactionsthatresultintherecognitionof
assets/liabilities/deferredinflows/deferredoutflowsshouldbeanalyzed.Changesin
thebalanceofanasset/liability/deferredinflow/deferredoutflowthatarenot
at tributabletocashtransactions
shouldbeconsiderednoncashtransactions.
Thetransactionisaninvesting,capital,orfinancingactivity.Anoncashtransaction
shouldbedisclosedonlywhenit(haditbeenacashtransaction)meetsthedefinition
oftheinvesting,capitalandrelatedfinancing,ornoncapitalfinancingactivities
category.
Non‐CashInvesting,Non‐Capital
Financing,Capital&RelatedFinancing:
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GASB Q&A2.32.1.Q—Whenisdisclosureofnoncashinformationrequir ed?(Q&A928)[Amended2012and2013]
A— Paragraph37ofStatement9requiresthat“informationaboutallinvesting,capital,andfinancingactivitiesofa
governmentalenterpriseduringaperiodthataffectrecognizedassetsorliabilitiesbutdonotresultincashreceiptsor
cash
paymentsintheperiodshouldbereported.Disclosureofnoncashinformationisrequiredifatransactionmeetsallofthese
threecharacteristics:
a. Isthetransactionnoncash?Questions2.15.1–2.15.6provideguidanceonidentifyingacashflow.Sometransactionsincludecash
andnoncashcomponents.Onlythecashportionofthetransactionshouldbepresentedinthestatementofcashflows.Thenoncash
portionshouldbeevaluatedfurther.
b. Doesthetransactionaffectrecognizedassetsorliabilities?Noncash
transactionsthatresultintherecognitionofassetsand
liabilitiesshouldbeanalyzed.Changesinthebalanceofanassetoraliabilitythatarenotattributabletocashtransactions shouldbe
considerednoncashtransactions.Forexample,whenanenterprisefundentersintoacapitalleaseforabuilding,anoncash
transactionoccursbecauseacapitalleaseobligationandthebuildingarerecordedinthestatementofnetposition.Theinceptionof
anoperatinglease,ontheotherhand,requiresnodisclosurebecausethereisnoeffectonthestatementofnetposition.
c. Isthetransactionaninvesting,capital,orfinancingactivity?
Anoncashtransactionshouldbedisclosedonlywhenit(haditbeen
acashtransaction)meetsthedefinitionoftheinvesting,capitalandrelatedfinancing,ornoncapitalfinancingactivitiescategory.For
example,acapitalleasetransactionmeetsthedefinitionofacapitalandrelatedfinancingactivity.However,acustomeraccount
receivable
balancethatwasusedtooffsetanaccountpayabletothatcustomerisanoperatingactivityandisnotrequiredtobe
disclosed.(SeeExamplesA–DandG–IinAppendix21.)
Examplesofnoncashtransactionsincludeacquiringcapitalassetsbyassumingdirectlyrelatedliabilities,suchaspurchasinga
buildingbyincurringamortgagetothesellerorpurchasingoncreditandtakingdeliveryofvehiclesinthecurrentperiodand
payingfortheminafutureperiod,obtainingacapitalassetby
enteringintoacapitallease,refundingbondproceedsdelivered
directlytoanirrevocabletrust,changesinfairvalueofinvestmentsorderivativeinstruments,receivingdonatedcapitalassets
andtransfersofcapitalassetsbetweenfunds.
CreatingAMoreEducatedGeorgia
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C
as
h Fl
ow
W
or
k
s
h
ee
t
Gifts and Grants Received for Other Than Capital Purposes
Fiscal Year Ended June 30, 2016
Change in Accounts Receivables:
227,429.23
Gifts and Grants Received for Other Than Capital Purposes Current Year Ending Receivable 1,000,000.00
N
Allowance for Uncollectible Accounts Receivable & Write-offs -
N
Prior Year Receivables Presumed Collected (772,570.77)
C
Other (Explain)
E
227,429.23
-
Change in Advances:
-
Recognition of Prior Year Ending Gifts and Grants Received for Other Than Capital Purposes Advances
N
Cash On-hand from Current Year Ending Advances
C
Other (Explain)
E
-
-
Change in Deferred Inflows of Resources - Service Concession Arrangement - Non-capital Asset Related
(3,400,000.00)
Amortization of Non-capital Asset Related Service Concession Arrangement Gifts 600,000.00
N
Cash Received in Current Year on New Non-capital Asset Related Service Concession Arrangements (4,000,000.00)
C
Other
(
Ex
p
lain
)
E
2. Change in net position accounts (balance sheet) should be further evaluated to determine if non-cash transcations are required to be disclosed in the Non-Cash Investing, Non-Capital Fin
a
And Capital And Related Financing Transactions section of the Statement of Cash Flows. Break out the cash and noncash items that make up the change in each balance sheet category by
e
amounts in the yellow highlighted cells.
CashFlowStatement
ComparetheCashFlowStatementtotheSRECNP
Thefollowingitemsshouldbecloseinamountsreported:
TuitionandFees–NetofT&FandScholarshipAllowance
Sales&Services–S&SRevenue
GrantsandContracts OperatingGrants/Contracts
Paymentstosuppliers‐ sumofEmployeeBenefits,Travel,Utilities,andSuppliesandOtherServices
PaymentstoEmployees–sumofSalariesandOtherPersonalServices
Scholarships/Fellowships UsuallytiestoScholarship/FellowshipExpense
StateAppropriations–ties100%toSRECNP,unlessareceivableissetup.
GrantsandContractsReceivedforOtherthanCapitalPurposes Nonoperating Grants/Contracts
CapitalGifts shouldequalthesumofCapitalGiftsandGrantsand
“NonCashGiftsofCapitalAssets”
PurchasesofCapitalAssetsshouldagreetoadditionstoCapitalAssetsinthenotedisclosure,lessCapitalAssetsacquiredby
capitallease,lessgiftofCapitalAssets,alsoconsidereffectsofchangesinContractsPayable
Proceedsfromthesaleofcapitalassetsshouldbea
truesourceofcash
PrincipalPaidoncapitaldebtandleasesshouldagreetoreductionsofLeaseObligationsinnotedisclosurenetofanynon
cashactivity
Interestpaidagreestointerestexpense
InterestagreestointerestincomeplusorminustheeffectofFMVadjustment
Exceptionwouldbeif
thegainorlossonsaleofinvestmentsreportedininvestmentincomeontheSRECNPisreportedas
ProceedsfromSalesandMaturitiesofInvestmentsontheCashFlowStatement
CommittedtoYourSuccess
100
CashFlowStatement
CommonErrorsontheCashFlowStatement:
ProceedsandpurchasesforInvestingActivitiesnetted
GiftsandGrantsreceivedforNoncapitalpurposesreflectedasGiftsandGrants
receivedforCapitalPurposes
NonCashCapitalgiftsincludedincashflowcapitalpurchases
BeginningCashnotagreeingwithprioryearendingcashand
cashequivalents
CommittedtoYourSuccess
101
NoteDisclosures
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NoteDisclosures
Note1 SummaryofSignificantAccountingPolicies
NatureofOperations
ReportingEntity
BasisofAccountingandPresentation
Definitions/DescriptionofAccounts
Note2–DepositsandInvestments
Note3–AccountsReceivables
Note4 Inventories
Note5–NotesReceivables
Note6–CapitalAssets
Note7–Advances
Note8–LongTermLiabilities
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NoteDisclosures
Note9NetPosition
Note10 E ndowments
Note11–SignificantCommitments
Note12–Leases
Note13 RetirementPlans
Note14–RiskManagement
Note15 Contingencies
Note16–OPEB
Note17–NaturalversesFunctionalClassification
CreatingAMoreEducatedGeorgia
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RequiredSupplementary
Informationand
SupplementaryInformation
BudgetBasisFinancialStatements
FourBudgetBasisFinancialStatements
BalanceSheet(NonGAAPBasis) BudgetFund
SummaryBudgetComparisonandSurplusAnalysisReport(NonGAAPBasis)
StatementofFundsAvailableandExpendituresComparedtoBudgetbyProgram
andFundingSource(NonGAAPBasis)BudgetFund
StatementofChangestoFundBalancebyProgramandFunding
Source(NonGAAP
Basis)BudgetFund
EnsurethatBudgetBasisStatementsaresupportedbyfinancialrecords.
106
BudgetBasisFinancialStatements
BalanceSheet(Non‐GAAPBasis)– BudgetFund
107
BudgetBasisFinancialStatementsBalanceSheet
(Non‐GAAPBasis)– BudgetFund
108
BudgetBasisFinancialStatements
SummaryBudgetComparisonandSurplusAnalysisReport(Non‐GAAPBasis)
109
BudgetBasisFinancialStatements
SummaryBudgetComparisonandSurplusAnalysisReport(Non‐GAAPBasis)
110
nVision reportproducesareportthatlooksliketheexcelspreadsheetpopulatingthe
firstcolumnwithactualsandencumbranceledgerinformation:
BCRnVision Report
ABC
ACTUALSandDETAIL_EN
Ledgers
BCRADJLedger
BudgetBasisAdjustments
June30,2015 TOTAL Mapping(ForColumnA)
BALANC E SHEETsectionofworksheet:
BS1 CashandCashEquivalents 11,726,166.55 0.00 11,726,166.55 Acct11xxxx(Excluding1198xx),158xxx
BS2 Investments 672,750.57 0.00 672,750.57 Acct1198xx,15xxxx(Excluding158xxx)
BS3 AccountsReceivable
BS4 StateAppropriation 0.00 0.00 0.00 Acct123xxx
BS5 FederalFinancialAssistance 484,225.20 0.00 484,225.20 Acct124xxx
BS6 Other 2,188,789.17 62,669.76 2,251,458.93 Acct12xxxx(Excluding123xxx,124xxx,126xxx)
BS7 MarginAllocation 0.00
BS8 PrepaidExpenditures 409,614.69 0.00 409,614.69 Acct
13xxxx
PeachtreeStateUniversity
BudgettoActualsReport‐FY2015
ASSETS
TuitionCarry‐ForwardCalculation
Add: PriorYearTuitionCarryForward
Add: CurrentYearRevenue
Subtract: CurrentYearExpenses
Add/Subtract: Adjustments
Add/Subtract: Transfers
Equals: CurrentYearFundBalance(CYFB)
IfCYFB<or=3%ofCYRevenue,thenCYFY=CYTuitionCarryForward
IfCYFB>3%ofCYRevenue,then3%of
CYRev=TuitionCarryForward;the
remainderofCYFBisSurplus
Note:Amountmaynotbeabletobecarriedforwardinentiretyifthereisadeficit
inanotherbudgetaryfund.
Encumbrances
Avalidobligationshouldbesupportedbythefollowing
information:
ConfirmedVendor
SpecificProject/Services/Goods
SpecificPriceforProject/Services/Goods
StateTimeorRangeofTimeofDelivery/Completion
DepartmentofAuditsand
Accounts
113
Encumbrances
Documentationofthistypeshouldbeavailablefromappropriatelyexecuted
purchaseorders,contracts,etc.Thepresenceoftheseconditionscorrespondto
theelementsofanenforceablecontractinthattheysupporttheconceptof
mutualassent,thatis,thepartieshaveagreedonthespecificproductor
serviceatthegivenpriceandtime.
Theseprinciplesshouldbeappliedwhenreviewingobligations,whichsupport
amountsforencumbrancepayablesappearingonthegeneralledgeratJune30.
Auditorswillreviewsubsidiarylistingforvalidity,payingparticularattentionto
obligationsover1yearold,individuallysignificantPOsorrecordedviamanual
journalentry.
DepartmentofAuditsand
Accounts
114
SurplusRules
LapsableFunds:
CancellationofPriorYearPurchaseOrdersautomaticallyrevertstosurplusunlessthe
cancellationwasassociatedwitha“likeandkind”situation
PartialliquidationofPriorYearPurchaseOrderautomaticallyrevertstosurpluswhere
vendorhasreceivedpaymentinfull
PreviouslywrittenoffA/Rcollectedinsubsequentperiodrevertstosurplus
Tuition
reservelimitationis3%ofCYRevenues.Reservesarenotcumulative.Any
cancelledPYPOsorPYcollectedwrittenoffA/RcanbereviewedinTuitionreserve
calculationifinstitutionwasnotatthe3%maximuminthepreviousyears
DepartmentofAuditsand
Accounts
115
FundGroups
CollegesandUniversities
StateAppropriations(Fund10000)
Tuition(Fund10500)
OtherGeneral(Fund10600)
DepartmentalSalesandServices/ContinuingEducation(Fund14000)
IndirectCostRecoveries(Fund15000)
TechnologyFeesFund(Fund16000)
UnexpendedPlantFunds(Fund50000)
OtherOrganizedActivities(Funds11XXX)
RestrictedFunds(Funds20XXX)
AuxiliaryEnterprises(Fund12XXX)
StudentActivities(Fund13000)
LoanFunds(Funds3XXXX)
EndowmentFunds(Funds4XXXX)
AgencyFunds(Funds6XXXX)
GAAPACCOUNTINGVSSTATEBUDGETBASISACCOUNTING
FundssubjecttoBudgetBasisAccounting
CollegesandUniversities
StateAppropriations(Fund10000)
Tuition(Fund10500)
OtherGeneral(Fund10600)
DepartmentalSalesandServices/ContinuingEducation(Fund14000)
IndirectCostRecoveries(Fund15000)
TechnologyFeesFund(Fund16000)
RestrictedFunds(Fund20000)
Unex pendedPlantFunds(Fund50000)
OtherOrga nizedActivities(Fund11XXX)
RestrictedFunds–OtherOrganizedActivities(Fund21XXX)
COLLEGEANDUNIVERSITYFUNDS
DESCRIPTIONSANDPURPOSES
StateAppropriations(Fund10000)
ConsideredoneoftheGeneralOperatingFunds,thisfundistobeusedonlyforstate
appropriatedrevenuesandexpensesrelatedtothecurrentoperationsofeducational
programsoftheCollegeorUniversity.
TuitionFund(Fund10500)
ConsideredoneoftheGeneralOperatingFunds,thisfundistobeusedonlyfortuition
revenuesandexpensesrelatedtothecurrentoperationsofeducationalprogramsofthe
CollegeorUniversity.Nonlapsingfundsupto3%oftuitioncollected.
OtherGenera l (Fund10600)
ConsideredoneoftheGeneralOperatingFunds,thisfundistobeusedonlyforany
studentfeesnotreportedinanotherfund.
COLLEGEANDUNIVERSITYFUNDS
DESCRIPTIONSANDPURPOSES
OtherOrganizedActivities(Fund11XXX)
ThesefundsarespecifictotheUniversityofGeorgia,GeorgiaTech,Augusta
UniversityandtheBoardofRegentsCentralOffice.Revenuesand
Expensesforthesefundsaregearedtowardspecifictypesofresearch.
ExampleswouldbeAgriculturalResearch,ForestryResearch,Cooperative
ExtensionServicesandVeterinaryMedicineResearch.
COLLEGEANDUNIVERSITYFUNDS
DESCRIPTIONSANDPURPOSES
AuxiliaryEnterprises(Fund12XXX)
AuxiliaryEnterprisesarebasically“selfsupporting,forprofitbusiness
operationsoftheCollege/University.Themostcommonauxiliary
operationswouldbeabookstoreoperation,cafeteriaservices,parking,and
campushousing.Revenues,expenditures,andbalancesofthevarious
businessoperationsconductedonacampushaveastheirexpressed
purposetheprovisionof
providingservicestostudents,faculty,andstaff.
Revenuesaredirectlyrelatedtocostsbutnotnecessarilyequalper
operatingunit.However,revenuesmustbesufficienttocovercostsonan
overallbasis.Inotherwords,thesefundsaretobeselfsupportingandare
notintendedtobesupplementedfromgeneral
operatingfunds.
Nostateappropriatedrevenuesarerecordedinthisfund,andbecausethis
fundisfor“selfsupportingactivities,balancesatyearendarenotsubject
tostatelapserules.
COLLEGEANDUNIVERSITYFUNDS
DESCRIPTIONSANDPURPOSES
StudentActivities(Fund13000)
FundusedtorecordactivityforStudentActivityPrograms.
StudentActivityfeesarerecordedasrevenuestothisfund.
ExamplesofStudentActivityfundsare:
StudentGovernment
StudentNewspaper
SocialandEnte rtainmentPrograms
Allexpenditureofthesefundsshouldbemadeinaccordancewith
theprovisionoftheStudentActivitiesBudgetwhichisprepared
annually.
Becausethesefundsaredesignatedforstudentprograms,they
arenotsubjecttostatelapserules.
COLLEGEANDUNIVERSITYFUNDS
DESCRIPTIONSANDPURPOSES
ContinuingEducationFund(Fund14000)
GeorgiaCode20386allowsforContinuingEducationyearendfund
balancestobeexemptfromthestatelawconcerninglapsablefunds.
ThisfundisnotsubjecttosurplusunderthiscodesectionoftheGeorgia
Law.
RevenuesfortheContinuingEducationfundshallincludeonlythosefees
collected
forthepurposeofprovidingnoncreditinstructionalcourses
andprogramsdesigned;primarilytomeettheeducationalneedsof
professionalandnontraditionalstudents.
COLLEGEANDUNIVERSITYFUNDS
DESCRIPTIONSANDPURPOSES
IndirectCostRecoveryFund(Fund15000)
TheOfficialCodeofGeorgia20386alsoprovidesthatthefundbalancesinthisfund
arenotsubjecttolapseassurplusunderStatelaw.
RevenuesfortheIndirectCostRecoveryFundincludereimbursementstoinstitutions
thatrepresenta percentageof directcostschargedtofederal,state,andothergrants
andcontractsforadministrativeexpensesincludingdepreciationanduseallowances,
operationsandmaintenance,generaladministration,departmentaladministration,
libraryandstudentservices.
Thegrantsthatthesecostrecoveriesarebasedonaregenerallyhousedinthe
RestrictedFund.
CostRecoveriesthatrelatetoFederalGrantsshouldbeincludedinthegrantexpenses
reportedintheScheduleofFederalFinancialAssistance.
COLLEGEANDUNIVERSITYFUNDS
DESCRIPTIONSANDPURPOSES
TechnologyFeesFund(Fund16000)
Esta blishedtoaccountforactivityoffeesthatarenotsubjecttoState
surplusunderGa.Law20386.
Therevenuesrecordedinthisfundareonlyfeescollectedfrom
mandatorytechnologyfeesprovidedforundersection704.021ofthe
BoardofRegentspolicymanual.
TheColleges/Universitiesmustpreparean
annualreporttotheBoardof
Regentsonhowthebalancesinthesefunds willbespent.
Balancescarriedforwardmustbespenttomeetinstitutional
technologicalneeds.
COLLEGEANDUNIVERSITYFUNDS
DESCRIPTIONSANDPURPOSES
RestrictedFunds(Fund2XXXX)
RestrictedfundsaregenerallycomprisedofFederal,State,Localand
othergrantsandcontractswhicharerestrictedforspecificpurposes.
Restrictedfundsshouldbeseparatelymanagedbyprojectsothat
revenuesandexpensesforeachgrantcanbeproperlyidentified.
Anyexcessfunds(revenueslessexpenses)leftatyearendarenot
subjecttobelapsedasStatesurplusbecausethesefundsareforspecific
purposesasdesignatedbythegrantorandanyfundsleftaftertheendof
thegrantorcontractmayhavetobereturnedtothegrantor.
TheUniversityofGeorgia,GeorgiaTech,AugustaUniversityandthe
RegentsCentralOfficemayhaverestrictedfundsrelatedtotheirOther
Organizedresearchactivities.
COLLEGEANDUNIVERSITYFUNDS
DESCRIPTIONSANDPURPOSES
LoanFunds(Fund3XXXX)
Housesfunds thataretobeloanedtostudentswhoneedfundstofinance
theireducation.
FederalLoanfundsaregenerallymadeupofPerkinsLoanfundsand
NursingLoanfunds.
Colleges/Universitiesalsoha veinstitutionalloanswhicharepredominately
fundedbyinstitutionalresources
Loanfundsarepredominatelybalancesheetactivitywithonlygiftsfor
principleandinterestchargesshownasrevenueandadministrativefees
andcollectioncostsshownasexpenses.
COLLEGEANDUNIVERSITYFUNDS
DESCRIPTIONSANDPURPOSES
EndowmentFunds40000(andSimilarFunds41000,42000)
GenerallyEndowmentfundsarefundswhichhavehadstipulationsputonthegift
instrumentwherebyprincipalistoremainintactandonlytheincomederivedfrom
investmentof thegiftmaybeexpended.
TheEndowmentFundmaybecomprisedofPermanentEndowments,Term
EndowmentsandQuasiEndowments.
PermanentEndowments areoneswhicharegivenbyoutsidedonorsandasaconditionofthegift,theprinciple
(corpus)mustremainintactpermanentlyandonlytheincomemaybespent.
TermEndowments aregivenbyoutsidedonorsbuttheexpendabilityoftheoriginalgiftisrestrictedonlyfora
period
oftime.Whenthetimerestrictionhasbeensatisfiedthecorpusalongwiththeearningsmaybespent.
Untilthattimeonlytheearningsmaybespent.
QuasiEndowment Fundsare InstitutionfundsthatthegoverningboardoftheInstitution,ratherthananoutside
donor,hasdeterminedthataportionofInstitutional
fundsaretobetreatedasanendowmentfund.The
principalisnotpermanentlyrestrictedortemporarilyrestrictedasisthecasewithendowmentfunds,andthe
Institutioncanchangethestatusofthesefundswhentheysochoose.
COLLEGEANDUNIVERSITYFUNDS
DESCRIPTIONSANDPURPOSES
PlantFunds(Funds50000and52000)
FundsreceivedfromStaterevenuesandothersourcesthatareutilizedforconstruction,
maintenance,andacquisitionof CapitalAssets.
COLLEGEANDUNIVERSITYFUNDS
DESCRIPTIONSANDPURPOSES
AgencyFunds(Fund6XXXX)
Agencyfundsaregenerallyfundsthatdonotbelongtothe
College/University.TheCollege/Universityserves“asanagentfor
theownerofthefunds.
Agencyfundscanbeforthreecategories
Fundsondeposit‐ Containsfundsreceivedandadministeredinaccordance
withinstructionsoftheentityforwhichtheschoolisservingasanagent.
DesignatedforScholarships‐ Providedbyoutsideentity.However,the
College/Universityhasnosayinwhoreceivesthescholarship.Theschooljust
carriesouttheinstructionsofdonor.
PayrollWithholdings‐ Payrolldeductionsfromemployeesthatmustbesentto
appropriatetaxing,retirement,orotherorganization.
GAAPBasisF/S‐ AnnualFinancial
Reporting
Theprocessofproducingfinancialstatementsthatdisclosetheentitysfinancialstatus
tomanagement,financialinvestors,thepublicandthegovernment. Theprimary
financialstatementsconsistoftheStatementofNetPosition,StatementofRevenue,
Expenses,andChangesinNetPosition,andtheStatementofCashFlowsfollowedby
therequirednotes
ordetailthatsupportstheamountspresentedinthefinancial
statements.
130
CommittedtoYourSuccess
GAAPBasisAFRBuildingBlocks
Annual
Financial
Reporting
Journal
Entries
YearEnd
Processing
Data
Recons
131
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GAAPBasisAFRMappingDocuments
132
CommittedtoYourSuccess
Assets June 30, 2016 June 30, 2015
All Funds except Funds 11921, 80xxx & 90xxxx, unless specifically excluded
Current Assets
Cash and cash equivalents 12,080,822.59 6,186,441.14 111xxx,112xxx,1181xx,118200,1185xx, 1191xx, 1192xx, 1193xx,1194xx
Short-term investments 1,545,670.44 1,552,346.95 1198xx
Accounts receivable, net
Rec.-Federal Financial Assistance (287,884.10) 84,010.73 124xxx
Rec. State General Appropriations 3,862,695.00 4,957.40 123xxx
Rec.- Other (2,503,467.11) 1,579,588.99 12xxxx (except for 122xxx, 123xxx, 124xxx, 1260xx, 1268xx,1269xx)
Due From Affiliated Organizations - - 1268xx
Inventories 715,516.62 722,150.50 141xxx,142xxx
Prepaid Items 287,898.04 223,415.29 13xxxx
Other assets - - 1260xx, 2180xx
Total Current Assets 15,701,251.48 10,352,911.00
Noncurrent Assets
Noncurrent Cash (Externally Restricted) - - 1580xx, 1581xx
Short-Term Investments (Externally Restricted) - - 1582xx
Investments (Externally Restricted) 734,157.62 734,157.62 15xxxx (except 158xxx) for Funds 2xxxx, 30xxx, 40xxx, 41xxx
Due From Affiliated Organizations - - 1269xx (Except 126960 and 126970)
Due From USO - Capital Liability Reserve Fund 267,597.52 267,597.52 126960
Due From Institutions - Capital Liability Reserve Fund - - 126970
Investments - - 15xxxx (except 158xxx) for all Funds except 2xxxx, 30xxx, 40xxx, 41xxx
Notes receivable, net 807,660.57 794,297.01 122xxx
Capital assets, net 87,128,277.96 89,109,250.42 16xxxx
AnnualFinancialReport
AFRExcelModel
ThreeBasicFinancialStatements
alongwithcondensedschedules
SupportingSchedulestoFinancial
Statements(Notes)
AuxiliaryFinancialStatements
StudentActivityFinancial
Statements
RRReserveSchedule
AgencyFundsSchedule
AFRWordDocument
CoverPage
MessagefromPresident
LetterofTransmittalThreeBasic
FinancialStatements&
Narratives
EconomicOutlook
ManagementsDiscussion&
Analysis
o Note1 SummaryofSignificant
AccountingPolicies(narrative)
o Note2–Deposits&Inve stments
(narrative&excelschedule)
o Note3 AccountsReceivable
o Note4‐ Inventories
o Note5 Notes/LoansReceivable
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CommittedtoYourSuccess
AnnualFinancial R eport
AFRExcelModel
AFRWordDocument
o Note6 CapitalAssets
o Note7–Advances(IncludingTuitionand
Fees)
o Note8–LongTermLiabilities
o Note9–ServiceConcessionArrangements
(New)
o Note10–NetPosition(New)
o Note11‐ Endowments(New)
o Note12–SignificantCommitments
o Note13–LeaseObligations(Revised)
o Note14 RetirementPlans(Revised)
o Note15–RiskManagement(narrative)
o Note
16 Contingencies(narrative)
o Note17–PostEmploymentBenefits
(narrative)
o Note18–NaturalClassificationswith
FunctionalClassifications
o Note19‐ AffiliatedOrganizations(narrative)
134
CommittedtoYourSuccess
DOAAExitConference
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ExitConference
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ExitConference
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DOAALevelofDeficiencies
MaterialWeakness Amaterialweaknessisconsidereda"Finding"thatwill
mostlikelybereportedwithintheStateSingleAuditReport.Amaterial
weaknessisadeficiency,orcombinationofdeficiencies,ininternalcontrol,
suchthatthereisareasonablepossibilitythatamaterialmisstatementofthe
entity'sfinancialstatementswillnotbeprevented,ordetectedandcorrected
onatimelybasis.
SignificantDeficiency Asignificantdeficiencyisconsidereda"Finding"that
willmostlikelybereportedwithintheStateSingleAuditReport.Thistypeof
findingislessseverthanamaterialweakness.Asignificantdeficiencyisa
efficiency,or
acombinationofdeficiencies,ininternalcontrolthatislesssevere
thanamaterialweakness,yetimportantenoughtomeritattentionbythose
chargedwithgovernance.
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DOAALevelofDeficiencies
ManagementLetterCommentsandOtherItems‐ arenotconsideredtobe"Findings"
andwillnotbereportedwithintheStateSingleAuditReport.DOAAgives
ManagementLetterCommentsforauditengagementswhilefulldisclosure
managementreportengagementsreceive"OtherItem"comments.InDOAA's
professionaljudgment,thesedeficienciesarelessseverethan
significantdeficiencies,
butcouldbeelevatedtoasignificantdeficiencyormaterialweaknessinthefutureif
theyremainuncorrected.
ExitConferenceComments Itemsnotconsideredfindingsormanagementletter
commentsbutthingsthattheywanttopointouttomanagementduringtheexit
conferenceandbringtotheirattention.
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USGSummaryofDeficiencies
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140
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Audit
Georgia Institute of Technology
MLC/OI MLC/OI
Georgia State University
University of Georgia
University System Office
Full Disclosure Management Report
Albany State University
MLC/OI MLC/OI MLC/OI
Bainbridge State College
MLC/OI MW MLC/OI
Darton State College
MLC/OI MLC/OI
East Georgia State College
Fort Valley State University
SD MLC/OI MLC/OI MLC/OI MLC/OI
DeficiencyType
ExitConference
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141
SummaryofAdjustments
General
PresentationandDisclosure
By signing below we acknowledge receipt of the following adjustments that were proposed and made to the financial statements.
ASSETS LIABILITIES
BEGINNING
BALANCE/
FUND BALANCE/NET
ASSET
RECLASSIFICATION REVENUES
EXPENDITURES/
EXPENSES
Business Type Activities/Enterprise Funds
Budgetary Compliance Report
SEFA
DESCRIPTION OF ADJUSTMENTS
Professional standards require auditors to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and
communicate them to the appropriate level of management. The following summary includes significant or material misstatements detected as part of audit
procedures and corrected by management.
SAMPLE UNIVERSITY
SUMMARY OF ADJUSTMENTS
ExitConference
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SummaryofUncorrectedMisstatements
General
PresentationandDisclosure
By signing below we acknowledge receipt of the following adjustments that were proposed and made to the financial statements.
ASSETS LIABILITIES
NET
ASSETS/FUND
BALANCE
BEGINNING
BALANCE REVENUES
EXPENDITURES/
EXPENSES
CHANGE IN NET
ASSETS
Business Type Activities/E
n
($265,757.00) $265,757.00 $0.00 $0.00 $66,830.00 ($66,830.00) $0.00
SEFA $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
MISSTATEMENT
TYPE
ASSETS LIABILITIES
BEGINNING
BALANCE/
FUND BALANCE
RECLASSIFICATI
ON REVENUES
EXPENDITURES/
EXPENSES
KNOWN/
UNKNOWN/
LIKELY
Business Type Activities/Enterprise Funds
($265,757.00) $265,757.00 $0.00 $0.00 $0.00 KnownContracts and Retainages Payable and
Construction Work In Progress are
understated as a result of failure to accrue
these amounts based on the June 30
Request For Payment. The RFP from May
was used.
SAMPLE UNIVERSITY
SUMMARY OF IMMATERIAL UNCORRECTED MISSTATEMENTS
AGGREGATE EFFECT ON FINANCIAL STATEMENTS
NET ASSETS ACTIVITIES
Professional standards require auditors to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial,
and communicate them to the appropriate level of management. The following is a list of misstatements not corrected in the financial statements.
Management of the School District has determined that the effects of these misstatements are immaterial, both individually and in the aggregate, to the
financial statements taken as a whole.
OPINION UNIT
EFFECT ON FINANCIAL STATEMENTS
NET ASSETS ACTIVITIES
DESCRIPTION
RatioDebtBurden
CurrentDebtPayments–PrincipalandInterest(fromCashFlowStatement)
OperatingIncomeandNonOperating Income(fromIncomeStatement)
BPM–RatioDebtBurdenshouldbelessthan5%,cappedat10%andanything
7%orabov emustbeapprovedbysystemoffice.
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ContactInformation:
ClaireArnold
AssociateViceChancellor,OfficeofFiscalAffairsAccountingandReporting
4049623068
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