USG Financial Reporting

CommittedtoYourSuccess

January18,2017

USGFinancialReporting

Background

ReportingEntity

AsdefinedbyOfficialCodeofGeorgiaAnnotated(O.C.G.A)§20‐3‐

50,theInstitutionispartoftheUniversitySystemofGeorgia

(USG),anorganizationalunitoftheStateofGeorgia(theState)

underthegovernanceoftheBoardofRegents(Board).TheBoard

hasconstitutionalauthoritytogovern,controland

managethe

USG.

TheInstitutiondoesnothavetherighttosue/besuedwithout

recoursetotheState.TheInstitution’spropertyisthepropertyof

theStateandsubjecttoallthelimitationsandrestrictionsimposed

uponotherpropertyoftheStatebytheConstitutionandlawsof

theState.

Inaddition,theInstitutionisnotlegallyseparatefrom

theState.Accordingly,theInstitutionisincludedwithintheState’s

basicfinancialstatementsaspartoftheprimarygovernment

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Statewide/SystemReporting

•StatewideReporting

• ComprehensiveAnnualFinancialReport(CAFR)

• StatewideSingleAuditReport

• BudgetaryComplianceReport

• SalaryandTravelCompilation

•SystemReporting

• USGConsolidatedAnnualFinancialReport

• IndividualInstitutionAnnualFinancialReports

GAAP‐ FinancialReporting(AFR)

CollegesandUniversitiesgenerallysubscribeto

specializedaccountingandfinancialreporting

principlessetforthbyGASB34/35andguidelines

establishedbytheNationalAssociationof College

andUniversityBusinessOfficers’(NACUBO).

GAAP‐ FinancialReporting(AFR)

BecauseCollegescoveramajorportionoftheir

coststhroughexternalusercharges(tuitionand

fees)fortheirservices,CollegesandUniversities

haveselectedtoreportasspecialpurpose

governmentsengagedsolelyinBusinessType

Activites (BTA).

BudgetBasisFinancialStatements(BCR)

TheConstitutionoftheStateofGeorgiarequires

thatthestateoperateunderabalancedbudget. 

Thismeansthatthestatecannotlegallyincura

deficitandcannotborrowmoneyforoperating

funds.Noexpensescanbeincurredforwhichfunds

arenotavailable,andnostatefundscanbespent

unlesstheyareauthorizedinanappropriationsbill

approvedbytheGeneralAssemblyofGeorgiaand

signedbytheGovernor.

GAAPACCOUNTING (AFR)VS

STATEBUDGETARYACCOUNTING(BCR)

GAAPAccounting

• InstitutionsundertheUniversitySystemofGeorgiaarerequiredto

presentfinancialstatementsinaccordancewithGenerallyAccepted

AccountingPrinciples(GAAP)forinclusionintheStateConsolidated

AnnualFinancialReport(CAFR).

• GAAPaccounting requiresfinancialstatementstobepresentedonthe

accrualbasisofaccounting whichmeansincomeis

reportedwhenearned

andexpensesarereportedwhenincurred.Also,capitalassetsmustbe

subjecttodepreciation.

OfficialCodeofGeorgia45‐12‐89:Fundsappropriatedforaspecificfiscalyearmustbe

expendedorobligatedinthatfiscalyearorlapsetotheSta teTreasury

Obligated – Obligatedfundsarecommonlyreferredtoasencumbrances. Thismeansthatthe

institutionhasissuedapurchaseorderforgoodsandservicesorhassignedacontract.

AlthoughencumbrancesarenotexpensesforGAAPpurposes,theyrepresentanexpenseof

Statefundsforthatparticularbudgetyear,andthereforerepresentanexpenseforbudgetbasis

reportingontheBudgetaryComplianceReport

Obligated(Encumbered)–POorContractIssued

• ThesearenotexpensesforGAAPpurposes

• Theseareexpensesforbudgetbasisreporting

Surplus(Lapse) –Unlesseligibletobekeptasreserves,currentfundsthatarenotcontractually

obligated;i.e.,notencumbered,andprioryearfundsthatareunencumberedlapseandmust

bereturnedtotheOfficeoftheStateTreasuryasaportionofsurplusasdeterminedbythe

DepartmentofAuditsandAccounts.Eachinstitutionreturnsits surplusfundstotheUniversity

SystemOffice;theUniversitySystemOfficereturnsthesefundstotheOfficeoftheState

Treasury.

GAAPACCOUNTING(AFR)VSSTATEBUDGETBASIS

ACCOUNTING(BCR)

DOAA‐ EducationAuditDivision’s

Objectives

• Toconductworksufficienttorenderanopiniononthe

HigherEducationcomponentoftheConsolidatedAnnual

FinancialReport(CAFR)encompassingtheFinancial 

StatementsoftheBoardofRegentsanditsrelatedunits

andtheStatewideSingleAudit.

• Conductworksufficienttoev aluatethebudgetary

FinancialStatementsoftheHigher

Educationcomponent

oftheBudgetaryCompliance Report– “surplus”

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TypesofEngagementsPerformedby

DOAA

ForCollegesandUniversities,DOAAconductsthe

followingindividualtypesofengagements:

•Audits

•FullDisclosureManagementReports(By‐Product

Report)forre‐accreditationpurposes

•AgreedUponProceduresReports(Attestation

Engagement)

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AUDITS

Assesstheriskofmaterialmisstatementby

performingproceduresthatinclude:(1)information

gatheringprocedures toensureanadequate

understandingoftheindustry,theentityandits

environmentincludinginternalcontrolsand(2)

analyticalproceduresandtestofdetailtransactions

tounderstandthenatureofaccountbalancesonthe

financialstatements

andtoidentifyanyanomaliesor

additionalriskfactors.

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AUDITS

• Oncetheriskofmaterialmisstatementisassessed,determinetheextentof

furtherproceduresnecessary.Wherethereisaheightenedlevelofrisk,

additionalproceduresmaybenecessarytodeterminewhetherthefinancial

statementsaremateriallycorrect.

• DeterminewhethertheBoardofRegentstogetherwithitsrelatedunits,

takenas

awhole,havecompliedinallmaterialrespectswithstateandfederal

laws,regulations,andprovisionsofcontractsandgrantagreements.

• DeterminewhethertheScheduleofExpendituresofFederalAwardsisfairly

presented.

• Determinewhethertheprogramexpendituresofeachorganizationfairly

presenttheiractualexpenditurescomparedtotheeachorganization’s

annual

budget.

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FULLDISCLOSUREMANGEMENT

REPORTS

• TheManagementReportcontainsselectedfinancialstatement

informationpertinenttothefinancial andcomplianceactivitiesof

theindividualentity.

• TheManagementReportisforreaccreditationpurposes.

• Auditorsverifythatdocumentationsupportsthefinancial

statements.

• Additionaltestingisconductedinordertoexpressanopinionon

theHigherEducation componentof

theCAFRandStatewideSingle

Audit.

• BudgetaryComplianceTesting

• StudentFinancialAidCompliance

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AGREEDUPONPROCEDURESREPORTS

TheseAgreedUponProceduresEngagementswillincludethefollowingprocedures:

 ReviewofBalanceSheetItemsreportedontheAFR–Confirmthattheyare

adequatelydocumentedandproperlyreconciledtotheInstitution’sgeneralledger.

 ReviewtheInstitution’sStatement ofNetPosition,StatementofRevenues,Expenses

andChangesinNetPosition,andStatement

ofCashFlowstoensurethatthe

financialstatementspr operlyreflecttheactivitywithintheaccountingrecords.

 ReviewtheInstitution’sNotestotheFinancialStatementsforaccuracyand

completeness.

 ReviewtheInstitution’syear‐endGAAPbasisjournalentriestodetermineifthe

entrieswereaccuratelyandappropriatelydocumented.

 ConfirmState

Appropriationsrevenues,StateAppropriationsreceivablesandthe

remittanceofPYsurplus.

 ReviewthelistingofAccountsReceivableWrite‐Offsduringtheyearforappropriate

duediligenceandSAOapproval.

 ReviewtheyearendBudgetBasisFinancialStatementsincludingtheBudget

ComparisonandSurplusAnalysisReportsforaccuracyandtodetermine

ifany

budgetaryoverexpendituresexist.

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AGREEDUPONPROCEDURESREPORTS

• ReviewBudgetBasisReservestodeterminethattheyareproperly

documented,validandappropriate.

• ConfirmthatinformationreportedtotheGeorgiaStudentFinance

CommissionhasbeenreconciledwiththeH.O.P.E.Scholarshipactivityonthe

Institution’sfinancialrecords.

• ReviewtheScheduleofExpendituresofFederalAwards.Confirmthat the

informationpresented

intheschedulesupportstheactivityreportingwithin

theInstitution’saccountingrecords

• Reviewcapitalassetsrecordstoensurethat(1)anannualphysicalinventory

isbeingconducted,(2)issuesnotedduringphysicalinventoryareev aluated

andcapitalassetsrecordsareproperlyadjusted,and(3)capitalization

thresholdsarebeingfollowed.

• Bankreconciliations

arebeingperformedandallreconcilingitemsarebeing

addressedinatimelymanner.

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AuditReport

• SECTIONI‐ FINANCIAL

• INDEPENDENTAUDITOR'SREPORT

• REQUIREDSUPPLEMENTARYINFORMATION‐MANAGEMENT'SDISCUSSIONANDANALYSIS

• BASICFINANCIALSTATEMENTS

• EXHIBITS

• STATEMENTOFNETPOSITION

• STATEMENTOFREVENUES,EXPENSESANDCHANGESINNETPOSITION

• STATEMENTOFCASHFLOWS

• NOTESTOTHEFINANCIALSTATEMENTS

• SCHEDULES

• REQUIREDSUPPLEMENTARYINFORMATION

• SCHEDULEOFPROPORTIONATESHAREOFTHENETPENSIONLIABILITY–TEACHERSRETIREMENTSYSTEMOFGEORGIA

• SCHEDULEOFPROPORTIONATESHAREOFTHENETPENSIONLIABILITY–EMPLOYEES'RETIREMENTSYSTEMOFGEORGIA

• SCHEDULEOFCONTRIBUTIONS–TEACHERSRETIREMENTSYSTEMOFGEORGIA

• SCHEDULEOFCONTRIBUTIONS–EMPLOYEES'RETIREMENTSYSTEMOFGEORGIA

• NOTESTOTHEREQUIREDSUPPLEMENTARY

INFORMATION

• SUPPLEMENTARYINFORMATION

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AuditReport

• SUPPLEMENTARYINFORMATION

• BALANCESHEET(NON‐GAAPBASIS)BUDGETFUND

• SUMMARYBUDGETCOMPARISONANDSURPLUSANALYSISREPORT(NON‐GAAPBASIS)

BUDGETFUND

• STATEMENTOFFUNDSAVAILABLEANDEXPENDITURESCOMPAREDTOBUDGETBY

PROGRAMANDFUNDINGSOURCE(NON‐GAAPBASIS)BUDGETFUND

• STATEMENTOFCHANGESTOFUNDBALANCEBYPROGRAMANDFUNDINGSOURCE(NON‐

GAAPBASIS)BUDGETFUND

• SECTIONII‐ COMPLIANCEANDINTERNALCONTROLREPORTS

• INDEPENDENTAUDITOR'SREPORTONINTERNALCONTROLOVERFINANCIALREPORTING

ANDONCOMPLIANCEANDOTHERMATTERSBASEDONANAUDITOFFINANCIAL

STATEMENTSPERFORMEDINACCORDANCEWITHGOVERNMENTAUDITINGSTANDARDS

• SECTIONIIIFINDINGSANDQUESTIONEDCOSTS

• SCHEDULEOFFINDINGSANDQUESTIONEDCOSTS

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IndependentAuditor’sReport

Inouropinion,basedonourauditandthereportofother

auditors,the financialstatementsreferredtoabovepresent

fairly,inallmaterialrespects,therespectivefinancial

positionofthebusiness‐typeactivitiesanddiscretely

presentedcomponentunitofGeorgiaStateUniversityasof

June30,2016,andtherespectivechangesinfinancial

positionand,whereapplicable,cashflowsthereofforthe

yearthenendedinaccordancewithaccountingprinciples

generallyacceptedintheUnitedStatesofAmerica.

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Management’sDiscussionandAnalysis

(MD&A)

FinancialmanagersofCollege/Universitiesareknowledgeableaboutthe

transactions,events,andconditionsthatarereflectedintheirfinancialreport

andofthefiscalpoliciesthat governitoperations.Thosefinancialmanagersare

askedtosharetheirinsightsintheMD&Abygivingreadersanobjectiveand

easilyreadableanalysisoftheCollege/University’sfinancial performancefor

theyear.Thisanalysisshouldprovideuserswiththeinformationtheyneedto

helpthemassesswhetherthegovernment’sfinancialpositionhasimprovedor

deterioratedasaresultoftheyear’soperations.

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Management’sDiscussionandAnalysis

(MD&A)

RequiredComponents:

• Overview:Abriefdiscussionofthebasicfinancialstatements,includingtherelationshipsof

thestatementstoeachother,andthesignificantdifferencesintheinformationtheyprovide.

Thisdiscussionshouldincludeanalysesthatassistinunderstandingmeasurementsand

resultsreportedinfinancialstatements

• CondensedFinancialInformation‐ SNP,SRECNPandCashFlowStatements

• Descriptionofsignificantcapitalassetandlongtermdebtactivityduringtheyear

• CurrentyearresultsincomparisonwiththeprioryearwithemphasisonCY

• Discussespositivesandnegativetrends

• Discussesothersignificantorunusualactivityreflectedonthefinancialstatements

• Mayusecharts,graphsandtablestoenhanceunderstandabilityoftheinformation

• Shouldavoid“boilerplate”discussion

• EconomicOutlook– Descriptionofcurrentlyknownfacts,decisionsorconditionsthatare

expectedtohav easignificanteffectonfinancialpositionorresultsof operations– Nota

platformtopontificate

CommittedtoYourSuccess

20

Management’sDiscussionandAnalysis

(MD&A)

PollsoffinancialstatementusershavesuggestedthefollowingabouttheMD&A:

• Speduptheprocessofidentifyingkeyissuesandpotentialredflags

• Whenwellwritten,theMD&Acanmaketheirjobseasierbyansweringthe

questionsthattheyoftenhavetocallagovernmenttogetanswersto

• “

MD&A’sbeenahugevalue…whenit’sdonewell…becauseitsavesan

analyst…aphonecalloritshortensthephonecallthatthey’vegottomake.If

it’swrittenwellandwrittenwithin…thespiritofthestandard.”

• BoilerplateMD&A’sthatarenottailoredtothespecificgovernmentinquestion

arenot

veryuseful

• ThequalityoftheMD&Aalsoappearedtobeanindicatortosomeofthe

qualityofagovernment’smanagement

CommittedtoYourSuccess

21

CommittedtoYourSuccess

StatementofNetPosition

StatementofNetPosition

TheStatementofNetPositionisafinancialconditionsnapshotasof

June30,2016andincludesallassetsandliabilities,bothcurrent

andnoncurrent.Thedifferencesbetweencurrentandnon‐current

assetsarediscussedintheNotestotheFinancial Statements.The

StatementofNetPositionispreparedundertheaccrualbasisof

accountingwhichrequiresrevenueandassetrecognitionwhenthe

serviceisprovided,andexpenseandliabilityrecognitionwhen

goodsorservicesarereceiveddespitewhencashisactually

exchanged.

CreatingAMoreEducatedGeorgia

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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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CreatingAMoreEducatedGeorgia

25

CreatingAMoreEducatedGeorgia

26

CreatingAMoreEducatedGeorgia

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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:AFRExcelFile

CashandInvestments

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CashandCashEquivalents

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BankReconciliationReview

• PerBankBalanceagreestobank

• Perbookbalanceagreestogeneralledgertrialbalance

• Reconciliationperformedtimely

• Documentationavailabletosupportallreconcilingitems

noted

• Evidenceofsupervisoryreview

• Reconcilingitemscarriedforextendedperiodoftime

• Unusualreconcilingitems

• OutstandingChecklist

• OutstandingItemscanbetracedinto

subsequentperiod

CreatingAMoreEducatedGeorgia

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BankReconciliationReview

CreatingAMoreEducatedGeorgia

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BankReconciliationReview

CreatingAMoreEducatedGeorgia

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BankReconciliationReview

CreatingAMoreEducatedGeorgia

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Investments

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R estrictedCash,ShortTermIn vestmentsand

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

CommittedtoYourSuccess

36

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 estrictedC ash,ShortTermIn vestments

andIn vestments

CommittedtoYour

Success

YearEndEntries:YE#34and#34a

Toreclassifyexternallyrestrictedcash,shorttermInvestmentsandinvestmentstonon‐currentcash,

noncurrentshortterminvestmentsandinvestments(externallyrestricted)ontheStatementofNet

Position.Examples:Endowments,RestrictedGrantsandContracts,CashGifts,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

CreatingAMoreEducatedGeorgia

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AccountsReceivableIssues

• AllowanceforDoubtfulA ccountsnotproperlyreported

• Banner/GeneralLedgerReconciliationnotcompleted

• AccountsReceivablesnotbeingactivelymanaged

• Failuretoprovideaccuratelisting

• DueDiligencedocumentationnotavailable

• UncollectibleAccountsReceivableReservebalance

growingrapidlycomparetoinstitution’ ssector

CreatingAMoreEducatedGeorgia

39

AccountsReceivables

BPM‐ AccountsReceiv ables

• Alluncollectibleaccountswillbereservedasspecificaccountsareaged

andconsequentlydeemedtobeuncollectible.Generally,debtsagedmore

thanonehundredeighty(180)daysfromtheduedatearenolonger

probableforcollection.Circumstancesmayarisewhenspecificaccounts

becomeuncollectibleearlierthan

onehundredeighty(180)days.

• Note: Duedateisdefinedasfollows:

• Forstudentaccounts,theduedateisthefirstdayofclassesfortheterm.

• Fornon‐studentaccounts,theduedateisgenerallythirty(30)daysafterthe

invoicedate.

• Astudentaccountduedatemaybemodifiedtothedatethatfinancial aidis

withdrawninordertogivethestudentandinstitutionanopportunitytolocate

otherpaymentarrangements.

• Accountsreceivableshouldbeanalyzedandaccountedformonthlyas

appropriate,nolessthanquarterly.

CreatingAMoreEducatedGeorgia

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AccountsReceivables

BPM‐ AccountsReceiv ables

• Accountsreceivableshouldbeanalyzedandaccountedfor

monthlyasappropriate,nolessthanquarterly.

• Alluncollectibleaccountsagedmorethanonehundred

eighty(180)daysfromtheduedateshouldbereservedas

anuncollectibleaccount.Thisisthetimebywhich 

collectionagencyeffortsshouldcommence.

• Oncean

invoiceisdeterminedtobeuncollectible,either

beforeorbytheone hundredeighty(180)daypastdue

date,allinvoiceswithinthataccountshouldbereserved

asanuncollectibleaccount.

CreatingAMoreEducatedGeorgia

41

AccountsReceivables

BPM‐ AccountsReceivables

• Whenuncollectibleaccountsarereserved,afundingsourcemustbeidentifiedtofund

thereserve.GASBrequiresthatrevenue‐generatedtransactions,whichgenerate

accountsreceivablethataredeemeduncollectible,shouldbereversed.This

methodologyisthecorrectmethodforbothbudgetaryandGAAPfinancialreporting.

GeorgiaAnnotated

Code50‐16‐18allowsfortruewrite‐offofuncollectiblereceivables

for$3,000orless.

• Inordertoaccomplishtheappropriaterecognitionofrevenue,thefollowingmethod

willbeused:TheAllowanceforDoubtfulRevenue(ContraRevenue)accountshould

bedebitedandtheAllowanceforDoubtfulAccountsReceivable(ContraAccounts



Receivable)accountshouldbecredited.Thiseff ectivelyreversestherevenuefrom

currentyearoperationsforbothbudgetaryaccountingandGAAPreporting.

• TheContra‐Revenueentryensuresthattheuncollectibleaccountamountisnotspent.

Forbudgetaryreportingpurposes,theAllowanceforDoubtfulAccountsReceivable

(ContraReceivable)isreportedasa

NetAssetreserveandnotasareductionto

AccountsReceivable.

• Thismethodwillbeusedregardlessoftheamountofeachuncollectibleaccount.As

approvedbythestateauditorsunderProceduralDirective17(July21,1992),“fund

integritymustbemaintained atalltimeswithregardtotheuncollectibleaccounts”.

CreatingAMoreEducatedGeorgia

42

FY2016Deficiencies

AccountsReceivables

CreatingAMoreEducatedGeorgia

43

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‐ AccountsReceivables

• Whenaccountsreceivableof$3,000orlessareultimatelydetermineduncollectibleand

duediligenceforcollectionhastakenplace,theAccountsReceivableaccountshouldbe

creditedandtheAllowanceforDoubtfulAccountsReceivableaccountshouldbedebited.

ThiseliminatesthereceivablefromthebooksofthecampusincompliancewithGeorgia

law.

• Note: Duediligenceisdefinedastheperformanceofboth:

• Collectioneffortsbytheinstitutionaccordingtotheminimumguidelines inSection

10.7.4,and

• Collectionagencyefforts,subjecttocostvs.benefitassessmentbytheinstitution.

• Write‐offofreceivablesisbasedupontheaggregateofthedebtor,notonindividual

transactions.Forexample,astudentmayowe$4,000inaggregate,withtentransactionsof

whichnosingletransactionexceeds$3,000.Inthiscase,

the$4,000cannotbewritten‐off.

• Theaccountsreceivableshouldbeanalyzedtodetermineifallreceivablesagedmorethan

onehundredeighty(180)daysfromtheduedatearecollectible.Afterduediligence

collectioneff orts,thebaddebts(lessthanorequalto$3,000)shouldbewrittenoffas

follows:

• AgainstexistingAllowanceforDoubtfulAccountsReceivableaccount,asdescribedin

item#6above,or

• Againstthecontra‐revenueaccountiftheaccountwasnotpreviouslyreserved.

CreatingAMoreEducatedGeorgia

44

AccountsReceivables

BPM‐ AccountsReceiv ables

• TheentriesforuncollectibleAccountsReceivableandthefundingsource

forthoseamountscanbesummarizedinthefollowingtable:Uncollectible

AccountsReceivable

• Foraccountsreceivablewrite‐offsresultingfromnon‐revenue

transactions,suchascashadvances,thereisnooffsettingrevenue.

Therefore,theaccountingentryshoulddebitthebaddebtsexpense

accountandcreditthereceivableaccount.

CreatingAMoreEducatedGeorgia

45

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

j

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:

CreatingAMoreEducatedGeorgia

46

StatementofNetPosition‐ A/R

Information

DataSubmissiontoUSO:

TGRRGON

• Quarterly(StartingwithJune30,2016)

• June30–DueAugust1

• Sept30–DueOctober31

• December31–DueJanuary31

• March31–DueMay1

• InstitutionswillbeaskedtosubmitthroughMoveIT:

TGRRGON

PSTrialBalance

Exceltemplateusedtoreconcile

AgedAccountsReceivableListing

• InstitutionswillcontinuetosubmitthroughDataWarehouse ‐ December/June

• InstitutionswillbeaskedtosubmitreconciliationbetweenDWHsubmissionandgeneral

ledgerthroughMoveIt

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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 econciliationSpreadsheet

49

Banner‐ TGRRCON

50

PeopleSoft– TrialBalance

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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52

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

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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55

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56

StatementofNetPosition

All balancesheetactivitymusthavesupportingdocumentation.

Supportingdocumentat ion:

Account

Name

Amount

Onlyex ceptionisaccountsreceivableactivitythroughBanner.TheTGRRGONprovides

thedetailedinformationbystudenttosupportthegeneralledger.

CommittedtoYourSuccess

57

ContractsandRetainagesPayable

YearEndEntries29,29aand29b:

Objective:

YE29–

Torecordtheliabilityforthe10%retainageamountwithheldfromthe

paymentvoucherwhichshouldrepresent10%oftheprojecttodateexpense

thataresubjecttoretainage(211950)

YE29a‐ Torecordcontactspayableforcampusmanagedprojectswere

contractamountshavebeenearnedandbilled bythecontr actor

orarchitectat

June30(211900)

YE‐29b –Tomatchtherevenuetotheretainagepayable ifreimbursable

project.

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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:

CommittedtoYourSuccess

59

Advances

CreatingAMoreEducatedGeorgia

60

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

ThisentryisforinstitutionsthatdonotprocesssummersplitthroughBanner.Note:Ifaninstitution

calculatedbasedondatesviaJE,theinstitutionmustprovidetheadvanceslistingbystudentfrombannerfor

theentiresummertermtoauditorswiththesplitpercentagecalculation.

LongTermDebt

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62

NetPosition

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63

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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64

ChangesinFundBalance(BudgetBasis)

FYE2014

FYE 2015

Reserved

304 CapitalOutlay 0.00

305 DepartmentalSalesandServices (555.47)

(623.87) 68.40

306 IndirectCostRecoveries (4,267.32)

(39,980.50) 35,713.18

307 TechnologyFees (166,111.22)

(115,022.75) (51,088.47)

308 RestrictedFunds (136,877.26)

(128,819.52) (8,057.74)

309 UncollectibleAccountsReceivable (106,141.43)

(108,534.67) 2,393.24

310 Inventories (33,175.00)

(33,175.00) 0.00

311 Carry‐Over"PerStateAccountingOffic

e

0.00

312 Ea rlyRetirementProgram 0.00

0.00

312a TuitionCarryForward (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

(800,875.71) (767,089.53) (33,786.18)

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65

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‐ GainFromDebtRefunding(298100)shouldbeincludedinthecalculationofNetInvestedin

CapitalAssets(NICA).GASBQ&Aspecificallyaddressesthisissueanditshould beincludedinthe

calculation.

YE‐8&8aRenewalsandReplacement

Reserve

Objective:

TobookcurrentyearnetassetsallocatedforRenewalsandReplacement.The

increasetorenewalsandreplacementsshouldagreewiththecurrentyear

depreciationassociatedwiththosebuildings/facilities.

Note: PPVprojectsdonotrequireadditionalRRReserves.TheRRReserveforPPVsareincludedinthe

annualrentalpaymentstotheFoundationarebeingheldinarestrictedaccountbytheTrustee.

CommittedtoYourSuccess

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

Calculateindividuallyforeachnon‐PPVAuxiliaryProject

BeginningR&RReserve

Add:CurrentYearDepreciation

Less:CurrentYearExpendituresfromR&R

ValueofCurrentYearR&RReserve

CommittedtoYourSuccess

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

• RenewalsandReplacements(R&R)Reserve

• ShouldbemaintainedforUniversityownedpropertyfundedbyAuxiliary.

• DoesanyonehaveanyUniversitypropertyfundedbyStudentActivitiesor

anyotherinternalfundingsource?

• IfyouhaveolderexistingR&RreservebalancesforUniversityownedbuildings

thathavebeendemolished,youmayreduceyourR&Rreservebythat

amount.

R enew alsandReplacementReserve

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

CreatingAMoreEducatedGeorgia

71

SRECNP

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72

StatementofRevenues,ExpensesandChangesinNetPosition

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73

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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74

RevenueAnalysis

CreatingAMoreEducatedGeorgia

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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76

ExpenseAnalysisbyNaturalClassification

CreatingAMoreEducatedGeorgia

77

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

• CashFlowsfromOperatingActivities

• CashFlowsfromNoncapitalFinancingActivities

• CashFlowsfromCapitalandRelatedFinancing

Activities

• CashFlowsfromInvestingActivities

• ReconciliationofOperatingLosstoNetCashUsedby

OperatingActivities

• Non‐CashInvesting,Non‐CapitalFinancing,and

CapitalandRelatedFinancingTransactions

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CashFlowStatement

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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&A2.15.1.Q—Whatconstitutesacashflow?(Q&A9‐22)

• A—Sometimestheremaybeaquestionastowhetheracashtransactionhas

occurred.Itmaybeconfusingtoidentifyacashflowinabankingenvironment.

Generally,cashflowsonlyifitchangeshands;thatis,ownershipofcashlegally

changes.Inaninternalexchangetransactionconductedtotallywithinabank,a

cashtransactionoccursonlyifadebitorcreditismadetoagovernmental

enterprise'sbankaccount.Forexample,aservicechargeorinterestincomeis

consideredtobeacashtransactiononthedatethebankpoststheamountto

theaccount.Afterthatdate,theinterestamountisavailableforwithdrawalor

theamountpostedfortheservicechargeisnolongeravailableforwithdrawal.

Anotherexampleisaloangrantedbyabank.Iftheloanproceedsarecreditedto

theborrower'sbankaccount,acashflowoccurred.Ifthebankremittedthe

proceedsdirectlytothevendor,anoncashfinancingactivityoccurred.(See

Question2.32.1foradiscussionofnoncashtransactions.)

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CashFlowRefresher

• CashflowactivityforUSGinstitutionsshouldbe

reportedgross.

• Studentloanactivityshouldnotbereportednet.Loans

issuedshouldbereportedseparatefromloanscollected.

• Year‐endjournalentryaddedtobreakoutactivityforcashflow

reporting

• Investmentactivityshouldnotbereportednet.Investment

purchasesshouldbereportedseparatefrominvestment

sales.Exception:Repurchaseagreementreoccurringtransactions.

• Year‐endjournalentryaddedtobreakoutactivityforcashflow

reporting

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CashFlowRefresher

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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

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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

• OperatingActivity– Operatingactivitiesgenerally

resultfromprovidingservicesandproducingand

deliveringgoods,andincludealltransactionsand

othereventsthatarenotdefinedascapitaland

relatedfinancing,noncapitalfinancing,orinvesting

activities(GASB Codification2450.113)

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CashFlowRefresher

• OperatingActivityisaresidualcategoryforcash

flowsthatcannotbeproperlyclassifiedasNoncapital

FinancingActivity,CapitalFinancingActivity,and

InvestingActivity.

• Areasonablenesstestshouldbeadequatefor

verificationandreview(i.e.comparisontothe

SRECNP).

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CashFlowRefresher

• Noncapitalfinancingactivitiesincludeborrowing

moneyforpurposesotherthantoacquire,construct,

orimprov ecapitalassetsandrepayingthose

amountsborrowed,includinginterest.Thiscategory

includesproceedsfromallborrowings(such as

revenueanticipationnotes)notclearlyattributable

toacquisition,construction,orimprovementof

capitalassets,regardlessoftheformofthe

borrowing.Alsoincludedarecertainotherinterfund

andintergovernmentalreceiptsandpayments(GASB

Codification2450.117)

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CashFlowRefresher

• Capitalandrelatedfinancingactivitiesinclude(a)

acquiringanddisposingofcapitalassetsusedin

providingservicesorproducinggoods,(b)borrowing

moneyforacquiring,constructing,orimproving

capitalassetsandrepayingtheamountsborrowed,

includinginterest,and(c)payingforcapitalassets

obtainedfromvendorsoncredit.(GASB Codification

2450.120)

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CashFlowRefresher

• Investingactivitiesincludemakingandcollecting

loans(exceptstudentloanprograms,whichare

includedinoperatingactivities)andacquiringand

disposingofdebtorequityinstruments.(GASB

Codification2450.120)

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CashFlowRefresher

• Entityshouldfocusonmakingthelineitemswithin

theNoncapita lFinancing Activity,CapitalFinancing

Activity,andInvestingActivitycategoriesas preciseas

possible.

• Theselineitemsgenerallyareafocusofauditprocedures.

• DetailedreconciliationstoSRECNP accountsshouldbe

performed.

• CashflowworksheetswereaddedtotheAFR excelfile

toassistwithreconciliation.

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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:

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What’sRequiredtobereported?SeeGASB Q&A2.32.1

•

Ifnoncashitemsmeetthef ollowthreecriteria,theyarerequiredtobe

disclosed.

•

Thetransactionisnoncash.GASB Q&A2.15.1–2.15.6provideguidanceonidentifying

acashflow.

•

Thetransactionaff ectsrecognizedassets/liabilities/deferredinflows/deferred

outflows.Noncashtransactionsthatresultintherecognitionof

assets/liabilities/deferredinflows/deferredoutflowsshouldbeanalyzed.Changesin

thebalanceofanasset/liability/deferredinflow/deferredoutflowthatarenot

at tributabletocashtransactions

shouldbeconsiderednoncashtransactions.

•

Thetransactionisaninvesting,capital,orfinancingactivity.Anoncashtransaction

shouldbedisclosedonlywhenit(haditbeenacashtransaction)meetsthedefinition

oftheinvesting,capitalandrelatedfinancing,ornoncapitalfinancingactivities

category.

Non‐CashInvesting,Non‐Capital

Financing,Capital&RelatedFinancing:

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GASB Q&A2.32.1.Q—Whenisdisclosureofnoncashinformationrequir ed?(Q&A9‐28)[Amended2012and2013]

A— Paragraph37ofStatement9requiresthat“informationaboutallinvesting,capital,andfinancingactivitiesofa

governmentalenterpriseduringaperiodthataffectrecognizedassetsorliabilitiesbutdonotresultincashreceiptsor

cash

paymentsintheperiodshouldbereported.”Disclosureofnoncashinformationisrequiredifatransactionmeetsallofthese

threecharacteristics:

a. Isthetransactionnoncash?Questions2.15.1–2.15.6provideguidanceonidentifyingacashflow.Sometransactionsincludecash

andnoncashcomponents.Onlythecashportionofthetransactionshouldbepresentedinthestatementofcashflows.Thenoncash

portionshouldbeevaluatedfurther.

b. Doesthetransactionaffectrecognizedassetsorliabilities?Noncash

transactionsthatresultintherecognitionofassetsand

liabilitiesshouldbeanalyzed.Changesinthebalanceofanassetoraliabilitythatarenotattributabletocashtransactions shouldbe

considerednoncashtransactions.Forexample,whenanenterprisefundentersintoacapitalleaseforabuilding,anoncash

transactionoccursbecauseacapitalleaseobligationandthebuildingarerecordedinthestatementofnetposition.Theinceptionof

anoperatinglease,ontheotherhand,requiresnodisclosurebecausethereisnoeffectonthestatementofnetposition.

c. Isthetransactionaninvesting,capital,orfinancingactivity?

Anoncashtransactionshouldbedisclosedonlywhenit(haditbeen

acashtransaction)meetsthedefinitionoftheinvesting,capitalandrelatedfinancing,ornoncapitalfinancingactivitiescategory.For

example,acapitalleasetransactionmeetsthedefinitionofacapitalandrelatedfinancingactivity.However,acustomeraccount

receivable

balancethatwasusedtooffsetanaccountpayabletothatcustomerisanoperatingactivityandisnotrequiredtobe

disclosed.(SeeExamplesA–DandG–IinAppendix2‐1.)

Examplesofnoncashtransactionsincludeacquiringcapitalassetsbyassumingdirectlyrelatedliabilities,suchaspurchasinga

buildingbyincurringamortgagetothesellerorpurchasingoncreditandtakingdeliveryofvehiclesinthecurrentperiodand

payingfortheminafutureperiod,obtainingacapitalassetby

enteringintoacapitallease,refundingbondproceedsdelivered

directlytoanirrevocabletrust,changesinfairvalueofinvestmentsorderivativeinstruments,receivingdonatedcapitalassets

andtransfersofcapitalassetsbetweenfunds.

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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

ComparetheCashFlowStatementtotheSRECNP

Thefollowingitemsshouldbecloseinamountsreported:

• TuitionandFees–NetofT&FandScholarshipAllowance

• Sales&Services–S&SRevenue

• GrantsandContracts– OperatingGrants/Contracts

• Paymentstosuppliers‐ sumofEmployeeBenefits,Travel,Utilities,andSuppliesandOtherServices

•

PaymentstoEmployees–sumofSalariesandOtherPersonalServices

• Scholarships/Fellowships– UsuallytiestoScholarship/FellowshipExpense

• StateAppropriations–ties100%toSRECNP,unlessareceivableissetup.

• GrantsandContractsReceivedforOtherthanCapitalPurposes– Nonoperating Grants/Contracts

• CapitalGifts– shouldequalthesumofCapitalGiftsandGrantsand

“Non‐CashGiftsofCapitalAssets”

• PurchasesofCapitalAssetsshouldagreetoadditionstoCapitalAssetsinthenotedisclosure,lessCapitalAssetsacquiredby

capitallease,lessgiftofCapitalAssets,alsoconsidereffectsofchangesinContractsPayable

• Proceedsfromthesaleofcapitalassetsshouldbea

truesourceofcash

• PrincipalPaidoncapitaldebtandleasesshouldagreetoreductionsofLeaseObligationsinnotedisclosurenetofanynon‐

cashactivity

• Interestpaidagreestointerestexpense

• InterestagreestointerestincomeplusorminustheeffectofFMVadjustment

• Exceptionwouldbeif

thegainorlossonsaleofinvestmentsreportedininvestmentincomeontheSRECNPisreportedas

ProceedsfromSalesandMaturitiesofInvestmentsontheCashFlowStatement

CommittedtoYourSuccess

100

CashFlowStatement

CommonErrorsontheCashFlowStatement:

• ProceedsandpurchasesforInvestingActivitiesnetted

• GiftsandGrantsreceivedforNon‐capitalpurposesreflectedasGiftsandGrants

receivedforCapitalPurposes

• Non‐CashCapitalgiftsincludedincashflowcapitalpurchases

• BeginningCashnotagreeingwithprioryearendingcashand

cashequivalents

CommittedtoYourSuccess

101

NoteDisclosures

CreatingAMoreEducatedGeorgia

102

NoteDisclosures

• Note1– SummaryofSignificantAccountingPolicies

• NatureofOperations

• ReportingEntity

• BasisofAccountingandPresentation

• Definitions/DescriptionofAccounts

• Note2–DepositsandInvestments

• Note3–AccountsReceivables

• Note4– Inventories

• Note5–NotesReceivables

• Note6–CapitalAssets

• Note7–Advances

• Note8–LongTermLiabilities

CreatingAMoreEducatedGeorgia

103

NoteDisclosures

• Note9NetPosition

• Note10– E ndowments

• Note11–SignificantCommitments

• Note12–Leases

• Note13– RetirementPlans

• Note14–RiskManagement

• Note15– Contingencies

• Note16–OPEB

• Note17–NaturalversesFunctionalClassification

CreatingAMoreEducatedGeorgia

104

RequiredSupplementary

Informationand

SupplementaryInformation

BudgetBasisFinancialStatements

FourBudgetBasisFinancialStatements

• BalanceSheet(Non‐GAAPBasis)– BudgetFund

• SummaryBudgetComparisonandSurplusAnalysisReport(Non‐GAAPBasis)

• StatementofFundsAvailableandExpendituresComparedtoBudgetbyProgram

andFundingSource(Non‐GAAPBasis)BudgetFund

• StatementofChangestoFundBalancebyProgramandFunding

Source(Non‐GAAP

Basis)BudgetFund

EnsurethatBudgetBasisStatementsaresupportedbyfinancialrecords.

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 reportproducesareportthatlooksliketheexcelspreadsheetpopulatingthe

firstcolumnwithactualsandencumbranceledgerinformation:

BCRnVision Report

ABC

ACTUALSandDETAIL_EN

Ledgers

BCRADJLedger

BudgetBasisAdjustments

June30,2015 TOTAL Mapping(ForColumnA)

BALANC E SHEETsectionofworksheet:

BS1 CashandCashEquivalents 11,726,166.55 0.00 11,726,166.55 Acct11xxxx(Excluding1198xx),158xxx

BS2 Investments 672,750.57 0.00 672,750.57 Acct1198xx,15xxxx(Excluding158xxx)

BS3 AccountsReceivable

BS4 StateAppropriation 0.00 0.00 0.00 Acct123xxx

BS5 FederalFinancialAssistance 484,225.20 0.00 484,225.20 Acct124xxx

BS6 Other 2,188,789.17 62,669.76 2,251,458.93 Acct12xxxx(Excluding123xxx,124xxx,126xxx)

BS7 MarginAllocation 0.00

BS8 PrepaidExpenditures 409,614.69 0.00 409,614.69 Acct

13xxxx

PeachtreeStateUniversity

BudgettoActualsReport‐FY2015

ASSETS

TuitionCarry‐ForwardCalculation

Add: PriorYearTuitionCarryForward

Add: CurrentYearRevenue

Subtract: CurrentYearExpenses

Add/Subtract: Adjustments

Add/Subtract: Transfers

Equals: CurrentYearFundBalance(CYFB)

IfCYFB<or=3%ofCYRevenue,thenCYFY=CYTuitionCarry‐Forward

IfCYFB>3%ofCYRevenue,then3%of

CYRev=TuitionCarry‐Forward;the

remainderofCYFBisSurplus

Note:Amountmaynotbeabletobecarriedforwardinentiretyifthereisadeficit 

inanotherbudgetaryfund.

Encumbrances

Avalidobligationshouldbesupportedbythefollowing

information:

• ConfirmedVendor

• SpecificProject/Services/Goods

• SpecificPriceforProject/Services/Goods

• StateTimeorRangeofTimeofDelivery/Completion

DepartmentofAuditsand

Accounts

113

Encumbrances

Documentationofthistypeshouldbeavailablefromappropriatelyexecuted

purchaseorders,contracts,etc.Thepresenceoftheseconditionscorrespondto

theelementsofanenforceablecontractinthattheysupporttheconceptof

mutualassent,thatis,thepartieshaveagreedonthespecificproductor

serviceatthegivenpriceandtime.

Theseprinciplesshouldbeappliedwhenreviewingobligations,whichsupport

amountsforencumbrancepayablesappearingonthegeneralledgeratJune30.

Auditorswillreviewsubsidiarylistingforvalidity,payingparticularattentionto

obligationsover1yearold,individuallysignificantPOsorrecordedviamanual

journalentry.

DepartmentofAuditsand

Accounts

114

SurplusRules

LapsableFunds:

CancellationofPriorYearPurchaseOrdersautomaticallyrevertstosurplusunlessthe

cancellationwasassociatedwitha“likeandkind”situation

PartialliquidationofPriorYearPurchaseOrderautomaticallyrevertstosurpluswhere

vendorhasreceivedpaymentinfull

PreviouslywrittenoffA/Rcollectedinsubsequentperiodrevertstosurplus

Tuition

reservelimitationis3%ofCYRevenues.Reservesarenotcumulative.Any

cancelledPYPOsorPYcollectedwrittenoffA/RcanbereviewedinTuitionreserve

calculationifinstitutionwasnotatthe3%maximuminthepreviousyears

DepartmentofAuditsand

Accounts

115

FundGroups

CollegesandUniversities

• StateAppropriations(Fund10000)

• Tuition(Fund10500)

• OtherGeneral(Fund10600)

• DepartmentalSalesandServices/ContinuingEducation(Fund14000)

• IndirectCostRecoveries(Fund15000)

• TechnologyFeesFund(Fund16000)

• UnexpendedPlantFunds(Fund50000)

• OtherOrganizedActivities(Funds11XXX)

• RestrictedFunds(Funds20XXX)

• AuxiliaryEnterprises(Fund12XXX)

• StudentActivities(Fund13000)

• LoanFunds(Funds3XXXX)

• EndowmentFunds(Funds4XXXX)

• AgencyFunds(Funds6XXXX)

GAAPACCOUNTINGVSSTATEBUDGETBASISACCOUNTING

FundssubjecttoBudgetBasisAccounting

CollegesandUniversities

• StateAppropriations(Fund10000)

• Tuition(Fund10500)

• OtherGeneral(Fund10600)

• DepartmentalSalesandServices/ContinuingEducation(Fund14000)

• IndirectCostRecoveries(Fund15000)

• TechnologyFeesFund(Fund16000)

• RestrictedFunds(Fund20000)

• Unex pendedPlantFunds(Fund50000)

• OtherOrga nizedActivities(Fund11XXX)

• RestrictedFunds–OtherOrganizedActivities(Fund21XXX)

COLLEGEANDUNIVERSITYFUNDS

DESCRIPTIONSANDPURPOSES

 StateAppropriations(Fund10000)

 ConsideredoneoftheGeneralOperatingFunds,thisfundistobeusedonlyforstate

appropriatedrevenuesandexpensesrelatedtothecurrentoperationsofeducational

programsoftheCollegeorUniversity.

 TuitionFund(Fund10500)

 ConsideredoneoftheGeneralOperatingFunds,thisfundistobeusedonlyfortuition

revenuesandexpensesrelatedtothecurrentoperationsofeducationalprogramsofthe

CollegeorUniversity.Non‐lapsingfundsupto3%oftuitioncollected.

 OtherGenera l (Fund10600)

 ConsideredoneoftheGeneralOperatingFunds,thisfundistobeusedonlyforany

studentfeesnotreportedinanotherfund.

COLLEGEANDUNIVERSITYFUNDS

DESCRIPTIONSANDPURPOSES

 OtherOrganizedActivities(Fund11XXX)

 ThesefundsarespecifictotheUniversityofGeorgia,GeorgiaTech,Augusta

UniversityandtheBoardofRegentsCentralOffice.Revenuesand

Expensesforthesefundsaregearedtowardspecifictypesofresearch.

ExampleswouldbeAgriculturalResearch,ForestryResearch,Cooperative

ExtensionServicesandVeterinaryMedicineResearch.

COLLEGEANDUNIVERSITYFUNDS

DESCRIPTIONSANDPURPOSES

 AuxiliaryEnterprises(Fund12XXX)

 AuxiliaryEnterprisesarebasically“self‐supporting,forprofitbusiness

operationsoftheCollege/University”.Themostcommonauxiliary

operationswouldbeabookstoreoperation,cafeteriaservices,parking,and

campushousing.Revenues,expenditures,andbalancesofthevarious

businessoperationsconductedonacampushaveastheirexpressed

purposetheprovisionof

providingservicestostudents,faculty,andstaff.

Revenuesaredirectlyrelatedtocostsbutnotnecessarilyequalper

operatingunit.However,revenuesmustbesufficienttocovercostsonan

overallbasis.Inotherwords,thesefundsaretobeselfsupportingandare

notintendedtobesupplementedfromgeneral

operatingfunds.

 Nostateappropriatedrevenuesarerecordedinthisfund,andbecausethis

fundisfor“self‐supporting”activities,balancesatyearendarenotsubject

tostatelapserules.

COLLEGEANDUNIVERSITYFUNDS

DESCRIPTIONSANDPURPOSES

 StudentActivities(Fund13000)

 FundusedtorecordactivityforStudentActivityPrograms.

StudentActivityfeesarerecordedasrevenuestothisfund.

ExamplesofStudentActivityfundsare:

 StudentGovernment

 StudentNewspaper

 SocialandEnte rtainmentPrograms

 Allexpenditureofthesefundsshouldbemadeinaccordancewith

theprovisionoftheStudentActivitiesBudgetwhichisprepared

annually.

 Becausethesefundsaredesignatedforstudentprograms,they

arenotsubjecttostatelapserules.

COLLEGEANDUNIVERSITYFUNDS

DESCRIPTIONSANDPURPOSES

 ContinuingEducationFund(Fund14000)

 GeorgiaCode20‐3‐86allowsforContinuingEducationyear‐endfund

balancestobeexemptfromthestatelawconcerninglapsablefunds.

ThisfundisnotsubjecttosurplusunderthiscodesectionoftheGeorgia

Law.

 RevenuesfortheContinuingEducationfundshallincludeonlythosefees

collected

forthepurposeofprovidingnon‐creditinstructionalcourses

andprogramsdesigned;primarilytomeettheeducationalneedsof

professionalandnon‐traditionalstudents.

COLLEGEANDUNIVERSITYFUNDS

DESCRIPTIONSANDPURPOSES

IndirectCostRecoveryFund(Fund15000)

 TheOfficialCodeofGeorgia20‐3‐86alsoprovidesthatthefundbalancesinthisfund

arenotsubjecttolapseassurplusunderStatelaw.

 RevenuesfortheIndirectCostRecoveryFundincludereimbursementstoinstitutions

thatrepresenta percentageof directcostschargedtofederal,state,andothergrants

andcontractsforadministrativeexpensesincludingdepreciationanduseallowances,

operationsandmaintenance,generaladministration,departmentaladministration,

libraryandstudentservices.

 Thegrantsthatthesecostrecoveriesarebasedonaregenerallyhousedinthe

RestrictedFund.

 CostRecoveriesthatrelatetoFederalGrantsshouldbeincludedinthegrantexpenses

reportedintheScheduleofFederalFinancialAssistance.

COLLEGEANDUNIVERSITYFUNDS

DESCRIPTIONSANDPURPOSES

TechnologyFeesFund(Fund16000)

Esta blishedtoaccountforactivityoffeesthatarenotsubjecttoState

surplusunderGa.Law20‐3‐86.

Therevenuesrecordedinthisfundareonlyfeescollectedfrom

mandatorytechnologyfeesprovidedforundersection704.021ofthe

BoardofRegentspolicymanual.

TheColleges/Universitiesmustpreparean

annualreporttotheBoardof

Regentsonhowthebalancesinthesefunds willbespent.

Balancescarriedforwardmustbespenttomeetinstitutional

technologicalneeds.

COLLEGEANDUNIVERSITYFUNDS

DESCRIPTIONSANDPURPOSES

 RestrictedFunds(Fund2XXXX)

 RestrictedfundsaregenerallycomprisedofFederal,State,Localand

othergrantsandcontractswhicharerestrictedforspecificpurposes.

 Restrictedfundsshouldbeseparatelymanagedbyprojectsothat

revenuesandexpensesforeachgrantcanbeproperlyidentified.

 Anyexcessfunds(revenueslessexpenses)leftatyearendarenot

subjecttobelapsedasStatesurplusbecausethesefundsareforspecific

purposesasdesignatedbythegrantorandanyfundsleftaftertheendof 

thegrantorcontractmayhavetobereturnedtothegrantor.

 TheUniversityofGeorgia,GeorgiaTech,AugustaUniversityandthe

RegentsCentralOfficemayhaverestrictedfundsrelatedtotheirOther

Organizedresearchactivities.

COLLEGEANDUNIVERSITYFUNDS

DESCRIPTIONSANDPURPOSES

 LoanFunds(Fund3XXXX)

 Housesfunds thataretobeloanedtostudentswhoneedfundstofinance

theireducation.

 FederalLoanfundsaregenerallymadeupofPerkinsLoanfundsand

NursingLoanfunds.

 Colleges/Universitiesalsoha veinstitutionalloanswhicharepredominately

fundedbyinstitutionalresources

 Loanfundsarepredominatelybalancesheetactivitywithonlygiftsfor

principleandinterestchargesshownasrevenueandadministrativefees

andcollectioncostsshownasexpenses.

COLLEGEANDUNIVERSITYFUNDS

DESCRIPTIONSANDPURPOSES

 EndowmentFunds40000(andSimilarFunds41000,42000)

 GenerallyEndowmentfundsarefundswhichhavehadstipulationsputonthegift

instrumentwherebyprincipalistoremainintactandonlytheincomederivedfrom

investmentof thegiftmaybeexpended.

 TheEndowmentFundmaybecomprisedofPermanentEndowments,Term

EndowmentsandQuasiEndowments.

 PermanentEndowments areoneswhicharegivenbyoutsidedonorsandasaconditionofthegift,theprinciple

(corpus)mustremainintactpermanentlyandonlytheincomemaybespent.

 TermEndowments aregivenbyoutsidedonorsbuttheexpendabilityoftheoriginalgiftisrestrictedonlyfora

period

oftime.Whenthetimerestrictionhasbeensatisfiedthecorpusalongwiththeearningsmaybespent.

Untilthattimeonlytheearningsmaybespent.

 QuasiEndowment Fundsare InstitutionfundsthatthegoverningboardoftheInstitution,ratherthananoutside

donor,hasdeterminedthataportionofInstitutional

fundsaretobetreatedasanendowmentfund.The

principalisnotpermanentlyrestrictedortemporarilyrestrictedasisthecasewithendowmentfunds,andthe

Institutioncanchangethestatusofthesefundswhentheysochoose.

COLLEGEANDUNIVERSITYFUNDS

DESCRIPTIONSANDPURPOSES

 PlantFunds(Funds50000and52000)

 FundsreceivedfromStaterevenuesandothersourcesthatareutilizedforconstruction,

maintenance,andacquisitionof CapitalAssets.

COLLEGEANDUNIVERSITYFUNDS

DESCRIPTIONSANDPURPOSES

 AgencyFunds(Fund6XXXX)

 Agencyfundsaregenerallyfundsthatdonotbelongtothe

College/University.TheCollege/Universityserves“asanagent”for

theownerofthefunds.

 Agencyfundscanbeforthreecategories

 Fundsondeposit‐ Containsfundsreceivedandadministeredinaccordance

withinstructionsoftheentityforwhichtheschoolisservingasanagent.

 DesignatedforScholarships‐ Providedbyoutsideentity.However,the

College/Universityhasnosayinwhoreceivesthescholarship.Theschooljust

carriesouttheinstructionsofdonor.

 PayrollWithholdings‐ Payrolldeductionsfromemployeesthatmustbesentto

appropriatetaxing,retirement,orotherorganization.

GAAPBasisF/S‐ AnnualFinancial

Reporting

Theprocessofproducingfinancialstatementsthatdisclosetheentity’sfinancialstatus

tomanagement,financialinvestors,thepublicandthegovernment. Theprimary

financialstatementsconsistoftheStatementofNetPosition,StatementofRevenue,

Expenses,andChangesinNetPosition,andtheStatementofCashFlowsfollowedby

therequirednotes

ordetailthatsupportstheamountspresentedinthefinancial

statements.

130

CommittedtoYourSuccess

GAAPBasisAFRBuildingBlocks

Annual

Financial

Reporting

Journal

Entries

Year‐End

Processing

Data

Recons

131

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GAAPBasisAFRMappingDocuments

132

CommittedtoYourSuccess

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

AnnualFinancialReport

AFRExcelModel

• ThreeBasicFinancialStatements

alongwithcondensedschedules

• SupportingSchedulestoFinancial

Statements(Notes)

• AuxiliaryFinancialStatements

• StudentActivityFinancial

Statements

• RRReserveSchedule

• AgencyFundsSchedule

AFRWordDocument

• CoverPage

• MessagefromPresident

• LetterofTransmittalThreeBasic

FinancialStatements&

Narratives

• EconomicOutlook

• Management’sDiscussion&

Analysis

o Note1– SummaryofSignificant

AccountingPolicies(narrative)

o Note2–Deposits&Inve stments

(narrative&excelschedule)

o Note3– AccountsReceivable

o Note4‐ Inventories

o Note5– Notes/LoansReceivable

133

CommittedtoYourSuccess

AnnualFinancial R eport

AFRExcelModel

AFRWordDocument

o Note6– CapitalAssets

o Note7–Advances(IncludingTuitionand

Fees)

o Note8–LongTermLiabilities

o Note9–ServiceConcessionArrangements

(New)

o Note10–NetPosition(New)

o Note11‐ Endowments(New)

o Note12–SignificantCommitments

o Note13–LeaseObligations(Revised)

o Note14– RetirementPlans(Revised)

o Note15–RiskManagement(narrative)

o Note

16– Contingencies(narrative)

o Note17–Post‐EmploymentBenefits

(narrative)

o Note18–NaturalClassificationswith

FunctionalClassifications

o Note19‐ AffiliatedOrganizations(narrative)

134

CommittedtoYourSuccess

DOAAExitConference

CreatingAMoreEducatedGeorgia

135

ExitConference

CreatingAMoreEducatedGeorgia

136

ExitConference

CreatingAMoreEducatedGeorgia

137

DOAALevelofDeficiencies

MaterialWeakness ‐ Amaterialweaknessisconsidereda"Finding"thatwill

mostlikelybereportedwithintheStateSingleAuditReport.Amaterial

weaknessisadeficiency,orcombinationofdeficiencies,ininternalcontrol,

suchthatthereisareasonablepossibilitythatamaterialmisstatementofthe

entity'sfinancialstatementswillnotbeprevented,ordetectedandcorrected

onatimelybasis.

SignificantDeficiency ‐ Asignificantdeficiencyisconsidereda"Finding"that

willmostlikelybereportedwithintheStateSingleAuditReport.Thistypeof

findingislessseverthanamaterialweakness.Asignificantdeficiencyisa

efficiency,or

acombinationofdeficiencies,ininternalcontrolthatislesssevere

thanamaterialweakness,yetimportantenoughtomeritattentionbythose

chargedwithgovernance.

CreatingAMoreEducatedGeorgia

138

DOAALevelofDeficiencies

ManagementLetterCommentsandOtherItems‐ arenotconsideredtobe"Findings"

andwillnotbereportedwithintheStateSingleAuditReport.DOAAgives

ManagementLetterCommentsforauditengagementswhilefulldisclosure

managementreportengagementsreceive"OtherItem"comments.InDOAA's

professionaljudgment,thesedeficienciesarelessseverethan

significantdeficiencies,

butcouldbeelevatedtoasignificantdeficiencyormaterialweaknessinthefutureif

theyremainuncorrected.

ExitConferenceComments– Itemsnotconsideredfindingsormanagementletter

commentsbutthingsthattheywanttopointouttomanagementduringtheexit

conferenceandbringtotheirattention.

CreatingAMoreEducatedGeorgia

139

USGSummaryofDeficiencies

CreatingAMoreEducatedGeorgia

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

DeficiencyType

ExitConference

CreatingAMoreEducatedGeorgia

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

CreatingAMoreEducatedGeorgia

142

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

CurrentDebtPayments–PrincipalandInterest(fromCashFlowStatement)

OperatingIncomeandNonOperating Income(fromIncomeStatement)

BPM–RatioDebtBurdenshouldbelessthan5%,cappedat10%andanything

7%orabov emustbeapprovedbysystemoffice.

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ContactInformation:

ClaireArnold

AssociateViceChancellor,OfficeofFiscalAffairsAccountingandReporting

[email protected]

404‐962‐3068

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