2011-571-Georgia Perimeter College FDMR

GEORGIA PERIMETER
COLLEGE
DECATUR, GEORGIA
MANAGEMENT REPORT
FOR FISCAL YEAR ENDED
JUNE 30, 2011
A Member Institution of the

University System of Georgia
Georgia Department of
Audits and Accounts
Russell W. Hinton
State Auditor
GEORGIA PERIMETER COLLEGE

-TABLE OF CONTENTS-
SECTION I
FINANCIAL
LETTER OF TRANSMITTAL
SELECTED FINANCIAL INFORMATION
EXHIBITS
A
STATEMENT OF NET ASSETS- (GMP BASIS)
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS(GMP BASIS)
STATEMENT OF CASH FLOWS- (GMP BASIS)
SELECTED FINANCIAL NOTES
SUPPLEMENTARY INFORMATION
SCHEDULES
1
2
3
BALANCE SHEET- (STATUTORY BASIS) BUDGET FUND

SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT
(STATUTORY BASIS) BUDGET FUND
STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET
BY PROGRAM AND FUNDING SOURCE
STATEMENT OF CHANGES TO FUND BALANCE
BY PROGRAM AND FUNDING SOURCE
RECONCILIATION OF SALARIES AND TRAVEL
SECTION II
ENTITY'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
18
19
20
22
25

-TABLE OF CONTENTS-
SECTION Ill
FINDINGS, QUESTIONED COSTS AND OTHER ITEMS
SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS
SECTION I
FINANCIAL
DEPARTMENT OF AUDITS AND ACCOUNTS

270 Washington Street, S.W., Suite 1-156
Atlanta, Georgia 30334-8400
Russell W. Hinton
STATE AUDITOR
(404) 6562174
December 13, 2011
Honorable Nathan Deal, Governor

Members of the General Assembly of Georgia
Members of the State Board of Regents of the
University System of Georgia
and
Honorable Anthony Tricoli, President
Georgia Perimeter College
Ladies and Gentlemen:
As part of our audits of the basic financial statements of the University System of Georgia presented
in the Annual Financial Reportfor the University System of Georgia, the basic financial statements of
the State of Georgia presented in the State of Georgia Comprehensive Annual Financial Report and the
issuance of a State of Georgia Single Audit Report pursuant to the Single Audit Act Amendments, as of
and for the year ended June 30, 2011, we have performed certain audit procedures at Georgia
Perimeter College. Accordingly, the financial statements and compliance activities of Georgia
Perimeter College were examined to the extent considered necessary in order to express an opinion
as to the fair presentation of the financial statements contained in the foregoing documents and to
issue reports on compliance and internal control as required by the Single Audit Act Amendments of
1996.
This Management Report contains information pertinent to the financial and compliance activities of
Georgia Perimeter College as of and for the year ended June 30, 2011. Information contained in this
report is a by-product of our audits of the basic financial statements of the University System of
Georgia and the basic financial statements of the State of Georgia and is the representation of
management. Accordingly, we do not express an opinion or any other form of assurance on it. The
particular information provided which includes a section on findings and other items reported in
accordance with Commission on Colleges regulation 2.11.1 is enumerated in the Table of Contents.
This report is intended solely for the information and use of the management of Georgia Perimeter
College, members of the Board of Regents of the University System of Georgia and the Southern
Association of Colleges and Schools - Commission on Colleges and is not intended to be and should
not be used by anyone other than these specified parties.
Respectfully submitted,
~.-<JQ.W.~
Russell W. Hinton, CPA, CGFM
State Auditor
RWH:as
SELECTED FINANCIAL INFORMATION
-1-

STATEMENT OF NET ASSETS- (GAAP BASIS)
JUNE 30, 2011
EXHIBIT"A"
Current Assets
Cash and Cash Equivalents
Short-Term Investments
3,846,784
18,293
Accounts Receivable, Net (Note 3)

Federal Financial Assistance
Other
775,495
5,432,507
Inventories (Note 4)
Prepaid Items
144,385
4,951
10,222,415
1,042,965
2,211
170,789,694
Total Noncurrent Assets
171,834,870
Total Assets
182,057,285
4,183,599
287,287
276,970
Total Current Assets

Noncurrent Assets
Noncurrent Cash
Notes Receivable, Net
Capital Assets, Net (Note 4)
LIABILITIES
Current Liabilities
Accounts Payable
Salaries Payable
Contracts Payable
Deferred Revenue (Note 6)
Other Liabilities
4,325,904
1,553,640
633,826
Deposits Held for Other Organizations

Lease Purchase Obligations
Compensated Absences
1,015,815
2,371,345
14,648,386
78,855,013
1,856,668
Total Noncurrent Liabilities
80,711,681
Total Liabilities
95,360,067
90,918,866
Total Current Liabilities

Noncurrent Liabilities
Lease Purchase Obligations
NET ASSETS
Invested in Capital Assets, Net of Related Debt
Restricted for
Nonexpendable
Expendable
Capital Projects
26,074
-224,278
526,684
-4,550,128
Unrestricted
Total Net Assets
$ ==8=6=,6=9=7=,2=18=
-2-

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS- (GAAP BASIS)
YEAR ENDED JUNE 30, 2011
EXHIBIT"B"
OPERATING REVENUES
Student Tuition and Fees

Less: Scholarship Allowances
67,847,156
-22,779,157
Grants and Contracts

Federal
1,124,924
State
Other
1,152,921
68,976
Sales and Services of Educational Departments
4,204,301
26,030
Rents and Royalties

Auxiliary Enterprises
1,075,765
92,321
Bookstore
Food Services
Intercollegiate Athletics
2,123,770
Other Organizations
4,513,155
Other Operating Revenues
295,688
Total Operating Revenues
59,745,850
39,180,027
45,463,745
OPERATING EXPENSES
Salaries
Faculty
Staff
Employee Benefits
Other Personal Services
21,972,942
739,064
Travel
Scholarships and Fellowships
35,612,521
840,775
Utilities
3,673,397
13,706,148
Supplies and Other Services
7,291,822
Depreciation
Total Operating Expenses
168,480,441
Operating Income (Loss)
-108,734,591
52,190,921
NONOPERATING REVENUES CEXPENSESl

State Appropriations
Federal
54,607,009
Interest and Other Investment Income
10,763
Interest Expense
-3,033,512
Other Nonoperating Revenues
-1,522,048
Net Nonoperating Revenues
102,253,133
Income (Loss) Before Other Revenues, Expenses, Gains, or Losses
-6,481,458
Capital Grants and Gifts

State
1,796,666
Increase in Net Assets

Net Assets- Beginning of Year
-4,684,792
91,382,010
$ =~8~6,~69~7~,2~18~
Net Assets- End of Year
-3-

STATEMENT OF CASH FLOWS- (GAAP BASIS)
EXHIBIT "C"
CASH FLOWS FROM OPERATING ACTIVITIES
Tuition and Fees

45,225,317
9,359,345
Sales and Services of Educational Departments
4,204,301
Payments to Suppliers
Payments to Employees
-41,562,693
-84,038,234
Payments for Scholarships and Fellowships
-35,612,521
Loans Issued to Students
-2,206
Auxiliary Enterprise Charges:

Bookstore
1,298,809
56,443
Food Services
Intercollegiate Athletics
1,820,115
Other Organizations
4,653,199
Other Receipts (Payments)
2,118,909
Net Gash Provided (Used) by Operating Activities
-92,4 79,216
52,190,921
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES

State Appropriations
Agency Funds Transactions
Gifts and Grants Received for Other than Capital Purposes
-2,648,428
54,814,886
Net Cash Flows Provided (Used) by Noncapital Financing Activities
104,357,379
1,796,666
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES

capital Gifts and Grants Received
Proceeds from Sale of Gapital Assets
Purchases of capital Assets
1,486,104
-18,752,391
Principal Paid on Capital Debt and Leases
-910,059
Interest Paid on Capital Debt and Leases
-3,033,512
Net Cash Provided (Used) by Capital and Related Financing Activities
-19,413,192
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from Sales and Maturities of Investments

Interest on Investments
211
10,763
Net Gash Provided (Used) by Investing Activities
10,974
Net Increase (Decrease) in Cash
-7,524,055
Cash and Gash Equivalents- Beginning of Year
12,413,804
Gash and Cash Equivalents - End of Year
4,889,749
-108,734,591
RECONCILIATION OF OPERATING LOSS TO NET CASH

PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating Income (Loss)
Adjustments to Reconcile Operating Income to Net Cash
Provided (Used) by Operating Activities
Depreciation
7,291,822
Change in Assets and Liabilities:

Accounts Receivable, Net
8,362,263
-2,143
Inventories
Prepaid Items
728
-2,206
Notes Receivable, Net

Accounts Payable
-1,617,567
Deferred Revenue
Other Liabilities
882,242
487,565
852,671
Net Gash Provided (Used) by Operating Activities
-4-
-92,479,216

SELECTED FINANOAL NOTES
JUNE 30, 2011
EXHIBIT "D"
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

REPORTING ENTITY
Georgia Perimeter College is one of thirty-five (35) State supported member institutions of higher
education in Georgia which comprise the University System of Georgia, an organizational unit of the
State of Georgia. The accompanying financial statements reflect the operations of Georgia Perimeter
College as a separate reporting entity.
The Board of Regents has constitutional authority to govern, control and manage the University
System of Georgia. This authority includes but is not limited to the power to designate management,
the ability to significantly influence operations, the authority to control institutions' budgets, the
power to determine allotments of State funds to member institutions and the authority to prescribe
accounting systems and administrative policies for member institutions. Georgia Perimeter College
does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year.
Accordingly, Georgia Perimeter College is considered an organizational unit of the Board of Regents
of the University System of Georgia reporting entity for financial reporting purposes because of the
significance of its legal, operational, and financial relationships with the Board of Regents as defined
in Section 2100 of the Governmental Accounting Standards Board (GASB) Codification of
Governmental Accounting and Financial Reporting Standards.
NET ASSETS
The College's net assets are classified as follows:
Invested in capital assets, net of related debt: This represents the College's total investment in capital
assets, net of outstanding debt obligations related to those capital assets. To the extent debt has
been incurred but not yet expended for capital assets, such amounts are not included as a
component of invested in capital assets, net of related debt.
Restricted net assets - nonexpendable: Nonexpendable restricted net assets consist of endowment
and similar type funds in which donors or other outside sources have stipulated, as a condition of
the gift instrument, that the principal is to be maintained inviolate and in perpetuity, and invested for
the purpose of producing present and future income, which may either be expended or added to
principal. The College may accumulate as much of the annual net income of an institutional fund as
is prudent under the standard established by Code Section 44-15-7 of Annotated Code of Georgia.
Restricted net assets- expendable: Restricted expendable net assets include resources in which the
College is legally or contractually obligated to spend resources in accordance with restrictions
imposed by external third parties.
Unrestricted net assets: Unrestricted net assets represent resources derived from student tuition and
fees, state appropriations, and sales and services of educational departments and auxiliary
enterprises. These resources are used for transactions relating to the educational and general
operations of the College, and may be used at the discretion of the governing board to meet current
expenses for those purposes, except for unexpended state appropriations (surplus) of $113,576.62.
-5-

JUNE 30, 2011
EXHIBIT "D"
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Unexpended state appropriations must be refunded to the Board of Regents of the University System
of Georgia, University System Office for remittance to the Office of the State Treasurer. These
resources also include auxiliary enterprises, which are substantially self-supporting activities that
provide services for students, faculty and staff.
NOTE 2: DEPOSITS AND INVESTMENTS
DEPOSITS
The custodial credit risk for deposits is the risk that in the event of a bank failure, the College's
deposits may not be recovered. Funds belonging to the State of Georgia (and thus the College)
cannot be placed in a depository paying interest longer than ten days without the depository
providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral
any one or more of the following securities as enumerated in the Official Code of Georgia Annotated
Section 50-17-59:
1.
Bonds, bills, notes, certificates of indebtedness, or other direct obligations of the United
States or of the State of Georgia.
2.
Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or

municipalities of the State of Georgia.
3.
Bonds of any public authority created by the laws of the State of Georgia, providing that the
statute that created the authority authorized the use of the bonds for this purpose.
4.
Industrial revenue bonds and bonds of development authorities created by the laws of the
State of Georgia.
5.
Bonds, bills, certificates of indebtedness, notes or other obligations of a subsidiary

corporation of the United States government, which are fully guaranteed by the United States
government both as to principal and interest and debt obligations issued by the Federal Land
Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank
for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association and
the Federal National Mortgage Association.
6.
Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation.
The Treasurer of the Board of Regents is responsible for all details relative to furnishing the required
depository protection for all units of the University System of Georgia.
At June 30, 2011, the carrying value of deposits was $1,722,964 and the bank balance was
$2,775,872. Of the College's deposits, $2,754,616 were uninsured. Of these uninsured deposits,
$2,754,616 were collateralized with securities held by the financial institution, by its trust
department or agency, but not in the College's name.
-6-

SELEcrED FINANCIAL NOTES
JUNE 30, 2011
EXHIBIT "D"
NOTE 2: DEPOSITS AND INVESTMENTS

INVESTMENTS
At June 30, 2011, the carrying value of the College's investment was $3,152,078, which is
materially the same as fair value. These investments were comprised entirely of funds invested in
the Board of Regents and/or Office of the State Treasurer investment pools as follows:
Investment Pools
Office of the State Treasurer
Georgia Fund 1
3,152,078
===========
The Board of Regents Investment Pool is not registered with the Securities and Exchange
Commission as an investment company. The fair value of investments is determined daily. The pool
does not issue shares. Each participant is allocated a pro rata share of each investment at fair value
along with a pro rata share of the interest that it earns. Participation in the Board of Regents
Investment Pool is voluntary. The Board of Regents Investment Pool is not rated. The Board of
Regents Short-Term Fund is reported as Cash and Cash Equivalents on Exhibit "A" of this report.
The Georgia Fund 11nvestment Pool, managed by the Office of the State Treasurer, is not registered
with the Securities and Exchange Commission as an investment company, but does operate in a
manner consistent with the SEC's Rule 2a7 of the Investment Company Act of 1940. This investment
is valued at the pool's share price, $1.00 per share. The Georgia Fund 11nvestment Pool is an AAAm
rated investment pool by Standard and Poor's. The Weighted Average Maturity of the Fund is 59
days.
NOTE 3: ACCOUNTS RECEIVABLE
Accounts receivable consisted of the following at June 30, 2011:
Student Tuition and Fees
Auxiliary Enterprises and Other Operating Activities
Federal, State and Private Funds
Other
2,203,573
351,363
775,495
4,875,870
8,206,301
1,998,299
6,208,002
Less Allowance for Doubtful Accounts

Net Accounts Receivable
-7-

JUNE 30, 2011
EXHIBIT "D"
NOTE 4: CAPITAL ASSETS

Following are the changes in the College's capital assets for the year ended June 30, 2011:
Beginning
Ending
Balance
Balance
July 1, 2010
Additions
Reductions
June 30, 2011
Capital Assets, Not Being Depreciated:

Land
Construction Work-In-Progress
Total Capital Assets, Not Being Depreciated
5,022,604
5,022,604
3,279,329 $
3,973,608 $
4,589,663
2,663,274
8,301,933 $
3,973,608 $
4,589,663 $
7,685,878
104,062,892 $
117,164,604
Capital Assets, Being Depreciated:

Building and Building Improvements
Facilities and Other Improvements
9,955,054
Equipment
12,722,385
Capital Leases
79,580,508
Library Collections
13,532,260
Total Assets Being Depreciated
219,853,099 $
39,924,030 $
13,101,712
3,527,140 $
2,752,576
10,729,618
2,175,052
1,594,880
13,302,557
79,580,508
696,557
497,631
13,731,186
19,500,461 $
4,845,087 $
234,508,473
42,072,781
Less: Accumulated Depreciation:

Building and Building Improvements
2,148,751
Facilities and Other Improvements
2,680,070
90,017
Equipment
8,700,557
2,127,360 $
Capital Leases
3,755,194
2,345,481
10,683,124
Library Collections
Total Accumulated Depreciation
2,770,087
1,166,004
9,661,913
580,213
464,136
10,799,201
6,100,675
65,742,975 $
7,291,822 $
1,630,140 $
71,404,657
Total Capital Assets, Being Depreciated, Net
154,110,124 $
12,208,639 $
3,214,947 $
163,103,816
Capital Assets, Net
162,412,057 $
16,182,247 $
7,804,610 $
170,789,694
NOTE 5: DEFERRED REVENUE

Deferred revenue consisted of the following at June 30, 2011:
Prepaid Tuition and Fees
2,833,206
1,492,698
4,325,904
Other Deferred Revenue

Total Deferred Revenue
-8-

JUNE 30, 2011
EXHIBIT "D"
NOTE 6: LONG-TERM LIABILITIES

The College's Long-Term liability activity for the year ended June 30, 2011 was as follows:
Beginning
Ending
Balance
July 1, 2010
Additions
Reductions
Balance
Current
June 30, 2011
Portion
Leases
Lease Obligations
80,780,887
910,059 $
79,870,828 $
1,015,815
Other Liabilities
3,740,448 $
Total Long-Term Obligations
84,521,335 $
3,039,821
2,552,256
3,039,821 $
3,462,315 $
4,228,013
84,098,841 $
2,371,345
3,387,160
NOTE 7: NET ASSETS

Changes in Net Asset activity for the year ended June 30, 2011 are as follows:
Beginning
Ending
Balance
Balance
July 1, 2010
Additions
Reductions
June 30, 2011
Invested in Capital Assets

Net of Related Debt
Restricted Net Assets

Unrestricted Net Assets
Total Net Assets
81,631,170 $
17,092,306 $
7,804,610 $
90,918,866
782,808
55,731,933
56,186,261
328,480
8,968,032
110,822,610
124,340,770
-4,550,128
183,646,849 $
188,331,641 $
91,382,010 $
86,697,218
NOTE 8: LEASE OBLIGATIONS

Georgia Perimeter College is obligated under capital leases for the acquisition of real property.
CAPITAL LEASES
Capital leases are generally payable in installments ranging from monthly to annually and have
terms expiring in various years between 2011 and 2035. Expenditures for fiscal year 2011 were
$3.9 million of which $3.0 million represented interest. Total principal paid on capital leases was
$0.9 million for the fiscal year ended June 30, 2011. Interest rates range from 4.743 percent to
4.813 percent.
OPERATING LEASES
Georgia Perimeter College had no expense for rental of real property and equipment under operating
leases in fiscal year 2011, and had no operating leases having remaining terms of more than one
year at June 30, 2011.
-9-

JUNE 30, 2011
EXHIBIT "D"
NOTE 8: LEASE OBLIGATIONS

FUTURE COMMITMENTS
Future commitments for capital leases (which here and on the Statement of Net Assets include other
installment purchase agreements) and for noncancellable operating leases having remaining terms
in excess of one year as of June 30, 2011, were as follows:
Real Property
and
Equipment
Capital
Leases
Year Ending June 30:
2012
2013
2014
2015
2016
2017-2021
2022-2026
2027-2031
2032-2035
Total Minimum Lease Payments
4,833,843
4,907,086
4,986,554
5,065,436
5,144,869
27,010,834
29,344,978
31,978,187
26,612,964
139,884,751
60,008,613
5,310
Less: Interest
Less: Executory Costs (if paid)
Principal Outstanding
79,870,828
======
NOTE 9: RETIREMENT PLANS

Georgia Perimeter College participates in various retirement plans administered by the State of
Georgia under two major retirement systems: Employees' Retirement System of Georgia (ERS
System) and Teachers Retirement System of Georgia. These two systems issue separate publicly
available financial reports that include the applicable financial statements and required
supplementary information. The reports may be obtained from the respective system offices. The
significant retirement plans that Georgia Perimeter College participates in are described below. More
detailed information can be found in the plan agreements and related legislation. Each plan,
including benefit and contribution provisions, was established and can be amended by State law.
-10-

JUNE 30, 2011
EXHIBIT "D"

Employees' Retirement System of Georgia
The ERS System is comprised of individual retirement systems and plans covering substantially all
employees of the State of Georgia except for teachers and other employees covered by the Teachers
Retirement System of Georgia. One of the ERS System plans, the Employees' Retirement System of
Georgia (ERS), is a cost-sharing multiple-employer defined benefit pension plan that was established
by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing
retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is
directed by a Board of Trustees and has the powers and privileges of a corporation. ERS acts
pursuant to statutory direction and guidelines, which may be amended prospectively for new hires
but for existing members and beneficiaries may be amended in some aspects only subject to
potential application of certain constitutional restraints against impairment of contract.
On November 20, 1997, the Board created the Supplemental Retirement Benefit Plan (SRBP-ERS) of
ERS. SRBP-ERS was established as a qualified governmental excess benefit plan in accordance with
Section 415 of the Internal Revenue Code (IRC) as a portion of ERS. The purpose of the SRBP-ERS is
to provide retirement benefits to employees covered byERS whose benefits are otherwise limited by
IRC Section 415. Beginning January 1, 1998, all members and retired former members in ERS are
eligible to participate in the SRBP-ERS whenever their benefits under ERS exceed the limitation on
benefits imposed by IRC Section 415.
The benefit structure of ERS is established by the Board of Trustees under statutory guidelines.
Unless the employee elects otherwise, an employee who currently maintains membership with ERS
based upon State employment that started prior to July 1, 1982, is an "old plan" member subject to
the plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to
January 1, 2009 are "new plan" members subject to the modified plan provisions. Effective January
1, 2009, newly hired State employees, as well as rehired State employees who did not maintain
eligibility for the "old" or "new" plan, are members of the Georgia State Employees' Pension and
Savings Plan (GSEPS). ERS members hired prior to January 1, 2009 also have the option to change
their membership to the GSEPS plan.
Under the old plan, new plan, and GSEPS, a member may retire and receive normal retirement
benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of
creditable service regardless of age. Additionally, there are some provisions allowing for early
retirement after 25 years of creditable service for members under age 60.
Retirement benefits paid to members are based upon a formula adopted by the Board of Trustees
for such purpose. The formula considers the monthly average of the member's highest 24
consecutive calendar months of salary, the number of years of creditable service, and the member's
age at retirement. Post-retirement cost-of-living adjustments may be made to members' benefits
provided the members were hired prior to July 1, 2009. The normal retirement pension is payable
monthly for life; however, options are available for distribution of the member's monthly pension, at
reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits
are also available through ERS.
-11-

JUNE 30, 2011
EXHIBIT "D"

Member contribution rates are set by law. Member contributions under the old plan are 4% of annual
compensation up to $4,200 plus 6% of annual compensation in excess of $4,200. Under the old
plan, Georgia Perimeter College pays member contributions in excess of 1.25% of annual
compensation. Under the old plan, these Georgia Perimeter College contributions are included in the
members' accounts for refund purposes and are used in the computation of the members' earnable
compensation for the purpose of computing retirement benefits. Member contributions under the
new plan and GSEPS are 1.25% of annual compensation. Georgia Perimeter College is required to
contribute at a specified percentage of active member payroll established by the Board of Trustees
determined annually in accordance with actuarial valuation and minimum funding standards as
provided by law. These Georgia Perimeter College contributions are not at any time refundable to the
member or his/her beneficiary.
Employer contributions required for fiscal year 2011 were based on the June 30, 2008 actuarial
valuation for the old and new plans and were set by the Board of Trustees on September 18, 2008
for GSEPS as follows:
Old Plan*
New Plan
GSEPS
10.41%
10.41%
6.54%
* 5.66% exclusive of contributions paid by the employer on behalf of old plan members
Members become vested after 10 years of service. Upon termination of employment, member
contributions with accumulated interest are refundable upon request by the member. However, if an
otherwise vested member terminates and withdraws his/her member contributions; the member
forfeits all rights to retirement benefits.
Teachers Retirement System of Georgia
The Teachers Retirement System of Georgia (TRS) is a cost-sharing multiple-employer defined
benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement
benefits for qualifying employees in educational service. A Board of Trustees comprised of active and
retired members and ex-officio State employees is ultimately responsible for the administration of
TRS.
On October 25, 1996, the Board created the Supplemental Retirement Benefit Plan of the Georgia
Teachers Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified governmental
excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion
of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS
whose benefits are otherwise limited by IRC Section 415. Beginning July 1, 1997, all members and
retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits
under TRS exceed the IRC Section 415 imposed limitation on benefits.
TRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure
of TRS is defined and may be amended by State statute. A member is eligible for normal service
retirement after 30 years of creditable service, regardless of age, or after 10 years of service and
attainment of age 60. A member is eligible for early retirement after 25 years of creditable service.
-12-
EXHIBIT "D"

JUNE 30, 2011

Normal retirement (pension) benefits paid to members are equal to 2% of the average of the
member's two highest paid consecutive years of service, multiplied by the number of years of
creditable service up to 40 years. Early retirement benefits are reduced by the lesser of one-twelfth
of 7% for each month the member is below age 60 or by 7% for each year or fraction thereof by
which the member has less than 30 years of service. It is also assumed that certain cost-of-living
adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits
are payable monthly for life. A member may elect to receive a partial lump-sum distribution in
addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also
available.
TRS is funded by member and employer contributions as adopted and amended by the Board of
Trustees. Members become fully vested after 10 years of service. If a member terminates with less
than 10 years of service, no vesting of employer contributions occurs, but the member's
contributions may be refunded with interest. Member contributions are limited by State law to not
less than 5% or more than 6% of a member's earnable compensation. Member contributions as
adopted by the Board of Trustees for the fiscal year ended June 30, 2011 were 5.53% of annual
salary. Employer contributions required for fiscal year 2011 were 10.28% of annual salary as
required by the June 30, 2008 actuarial valuation.
The following table summarizes the Georgia Perimeter College contributions by defined benefit plan
for the years ending June 30, 2011, June 2010, and June 2009 (dollars in thousands):
ERS
Fiscal Year
2011
2010
2009
TRS
Required
Percentage
Contribution
Contributed
$
$
$
13,890
11,324
10,815
100%
100%
100%
Required
Contribution
$
$
$
4,769,633
4,188,588
3,508,988
Percentage
Contributed
100%
100%
100%
Regents Retirement Plan

Plan Description
The Regents Retirement Plan, a single-employer defined contribution plan, is an optional retirement
plan that was created/established by the Georgia General Assembly in O.C.G.A. 47-21-1 et.seq. and
administered by the Board of Regents of the University System of Georgia. O.C.G.A. 47-3-68(a)
defines who may participate in the Regents Retirement Plan. An "eligible university system
employee" is a faculty member or a principal administrator, as designated by the regulations of the
Board of Regents. Under the Regents Retirement Plan, a plan participant may purchase annuity
contracts from four approved vendors (AIG-VALIC, American Century, Fidelity, and TIM-CREF) for the
purpose of receiving retirement and death benefits. Benefits depend solely on amounts contributed
to the plan plus investment earnings. Benefits are payable to participating employees or their
beneficiaries in accordance with the terms of the annuity contracts.
-13-

JUNE 30, 2011
EXHIBIT "D"

Funding Policy
Georgia Perimeter College makes monthly employer contributions for the Regents Retirement Plan at
rates adopted by the Teachers Retirement System of Georgia Board of Trustees in accordance with
State statute and as advised by their independent actuary. For fiscal year 2011, the employer
contribution was 9.24% for the participating employee's earnable compensation. Employees
contribute 5% of their earnable compensation. Amounts attributable to all plan contributions are fully
vested and non-forfeitable at all times.
Georgia Perimeter College and the covered employees made the required contributions of
$2,129,268 (9.24%) and $1,152,204 (5%), respectively.
AIG-VALIC, American Century, Fidelity, and TIAA-CREF have separately issued financial reports which
may be obtained through their respective corporate offices.
Georgia Defined Contribution Plan
Plan Description
Georgia Perimeter College participates in the Georgia Defined Contribution Plan (GDCP) which is a
single-employer defined contribution plan established by the General Assembly of Georgia for the
purpose of providing retirement coverage for State employees who are temporary, seasonal, and
part-time and are not members of a public retirement or pension system. GDCP is administered by
the Board of Trustees of the Employees' Retirement System of Georgia.
Benefits
A member may retire and elect to receive periodic payments after attainment of age 65. The
payment will be based upon mortality tables and interest assumptions to be adopted by the Board of
Trustees. If a member has less than $3,500 credited to his/her account, the Board of Trustees has
the option of requiring a lump sum distribution to the member in lieu of making periodic payments.
Upon the death of a member, a lump sum distribution equaling the amount credited to his/her
account will be paid to the member's designated beneficiary. Benefit provisions are established by
State statute.
Contributions
Member contributions are seven and one-half percent (7.5%) of gross salary. There are no employer
contributions. Contribution rates are established by State statute. Earnings are credited to each
member's account in a manner established by the Board of Trustees. Upon termination of
employment, the amount of the member's account is refundable upon request by the member.
Total contributions made by employees during fiscal year 2011 amounted to $7 48,411 which
represents 7.5% of covered payroll. These contributions met the requirements of the plan.
The Georgia Defined Contribution Plan issues a financial report each fiscal year, which may be
obtained from the ERS offices.
-14-

JUNE 30, 2011
EXHIBIT "D"
NOTE 10: POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS

Pursuant to the general powers conferred by the Official Code of Georgia Annotated Section 20-3-31,
the Board of Regents of the University System of Georgia has established group health and life
insurance programs for regular employees of the University System of Georgia. It is the policy of the
Board of Regents to permit employees of the University System of Georgia eligible for retirement or
that become permanently and totally disabled to continue as members of the group health and life
insurance programs. The policies of the Board of Regents of the University System of Georgia define
and delineate who is eligible for these post-employment health and life insurance benefits.
Organizational units of the Board of Regents of the University System of Georgia pay the employer
portion for group insurance for affected individuals. With regard to life insurance, the employer
covers the total cost for $25,000 of basic life insurance. If an individual elects to have supplemental,
and/or, dependent life insurance coverage, such costs are borne entirely by the employee.
The Board of Regents Retiree Health Benefit Plan is a single employer defined benefit plan. Financial
statements and required supplementary information for the Plan are included in the publicly
available Consolidated Annual Financial Report of the University System of Georgia. The College pays
the employer portion of health insurance for its eligible retirees based on rates that are established
annually by the Board of Regents for the upcoming plan year. For the 2010 and 2011 plan years, the
employer rate was between 70-75% of the total health insurance cost for eligible retirees and the
retiree rate was between 25-30%.
As of June 30, 2011, there were 34 7 employees who had retired or were disabled that were
receiving these post-employment health and life insurance benefits. For the year ended June 30,
2011, Georgia Perimeter College recognized as incurred $1,581,420 of expenditures, which was net
of $1,101,507 of participant contributions.
NOTE 11: AFFILIATED ORGANIZATIONS

Georgia Perimeter College Foundation, Georgia Perimeter College Real Estate Foundation, Georgia
Perimeter College Research Foundation, and Peachtree State Athletic Foundation are legally
separate tax exempt organizations whose activities primarily support Georgia Perimeter College, a
unit of the University System of Georgia (an organizational unit of the State of Georgia). These
affiliated organizations are considered potential component units of the State of Georgia in
accordance with GASB Statement No. 39, Determining Whether Certain Organizations are Component
Units. Therefore, the financial statements of these affiliated organizations are not included in these
financial statements. Copies of the financial statements for the affiliated organizations may be
obtained from Georgia Perimeter College.
-15-
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SUPPLEMENTARY INFORMATION
-17-
SCHEDULE "1"
BALANCE SHEET (STATUTORY BASIS)

BUDGET FUND
JUNE 30, 2011
Cash and Cash Equivalents
1,227,061.11
8,292.67
Investments
Accounts Receivable
Federal Financial Assistance
1,839,697.07
Other
5,639,013.39
610.20
Prepaid Expenditures
144,848.19
Inventories
$ ==8;,;,;;85;;;;9;.;.;,5;.;;2~2.~6,;;3
Total Assets
LIABILITIES AND FUND EQUITY

Liabilities
Accrued Payroll
281,704.59
Encumbrances Payable
414,942.58
Accounts Payable
834,908.23
Deferred Revenue
4,917,593.71
16,668.70
Funds Held for Others

Total Liabilities
6,465,817.81
-271,248.25
Fund Balances
Reserved
Department Sales and Services
1,509.98
Indirect Cost Recoveries
-94,896.75
Technology Fees
526,684.18
Capital Outlay
-200,575.84
Restricted/Sponsored Funds
2,106,938.50
Uncollectible Accounts Receivable
74,250.25
Tuition Carry-Over
137,466.13
Inventories
Unreserved
113,576.62
Surplus
Total Fund Balances
Total Liabilities and Fund Balances
$ ==.;,8;,;8;;;;59;;,;;,5;;;;2;;2;;;;.6;;;;.3
Statutory Basis financial information was prepared on a prescribed basis of accounting that
demonstrates compliance with budgetary statutes and regulations of the State of Georgia,
which is a comprehensive basis of accounting other than generally accepted accounting
principles.
-18-
2,393, 704.82

SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT (STATUTORY BASIS)
BUDGET FUND
BUDGET
State Appropriation
State General Funds
Other Funds
Total Revenues
SCHEDULE "2"
ACTUAL
VARIANCEFAVORABLE
(UNFAVORABLE)
52,911,645.00 $
139,763,007.00
52,911,645.00 $
126,262.453.26
0.00
-13,500,553.74
192,674,652.00 $
179,174,098.26 $
-13,500,553.74
CARRY-OVER FROM PRIOR YEARS

Transfers from Reserved Fund Balance
Adjustments and Program Transfers
3,059,912.46
0.00
0.00
86,730.00
3,059,912.46
86,730.00
192,674,652.00 $
182,320,740.72 $
-10,353,911.28
128,000.00 $
192,546,652.00
127,791.40 $
181,680.435.29
208.60
10,866,216.71
Total Expenditures
192,674,652.00 $
181,808,226.69 $
10,866.425.31
Excess of Funds Available over Expenditures
0.00 $
512,514.03 $
512,514.03
Total Funds Available

EXPENDITURES
Special Funding Initiative
Teaching
FUNP BALANCE JULY 1

Reserved
Unreserved
4,944,524.49
582,866.81
ADJUSTMENJS
Prior Year Payables/Expenditures
Prior Year Receivables/Revenues
Unreserved Fund Balance (Surplus) Returned
to Board of Regents- University System Office
Year Ended June 30, 2010
Early Return of Surplus in Current Year
Prior Year Reserved Fund Balance Included in Funds Available
252,925.30
-118.489.15
-582,866.81
-137,857.39
-3,059,912.46
FUNP BALANCE JUNE 30
2,393,704.82
-271,248.25
1,509.98
-94,896.75
526,684.18
-200,575.84
2,106,938.50
74,250.25
SUMMARY OF FUND BALANCE

Reserved
Technology Fees
Capital Outlay
Tuition Carry-Over
Inventories
137.466.13
Total Reserved
Unreserved
Surplus
2,280,128.20
113,576.62
$ ==~2~,3.;.93=.;,7.;...0;..4.;.;.8~2
Total Fund Balance
principles.
-19-

STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE
Original
Appropriation
Amended
Appropriation
Final
Budget
Current Year
Revenues
Special Funding Initiatives

State Appropriation
State General Funds
128,000.00 $
128,000.00 $
128,000.00 $
128,000.00
Teaching
State Appropriation
State General Funds
56,111,086.00 $
52,783,645.00 $
52,783,645.00 $
52,783,645.00
807,779.00
92,683,007.00
0.00
99,683,007.00
Federal Funds
American Recovery and Reinvestment Act of 2009
Federal Stabilization Funds
Other Funds
0.00
139,763,007.00
0.00
126,262,453.26
Total Teaching
149,601,872.00 $
152,466,652.00 $
192,546,652.00 $
179,046,098.26
Total Operating Activity
149,729,872.00 $
152,594,652.00 $
192,674,652.00 $
179,174,098.26
principles.
-20-
SCHEDULE "3"
Funds Available Compared to Budget

Prior Year
Carry-Over
Adjustments and
Program Transfers
0.00 $==~-~0-~0.;.0 $
0.00 $
0.00 $
Total
Funds Available
Expenditures Compared to Budget

Variance
Positive (Negative)
128,000.00 $====...;..0.~00.;.$
52,783,645.00 $
0.00
129,409,095.72
0.00 $
Actual
127,791.40 $
52,763,483.19 $
Over/(Under)
Expenditures
208.60 $ ===-~2~08;,..;~60=
20,161.81 $
20,161.81
0.00
3,059,912.46
0.00
86,730.00
3,059,912.46 $
86,730.00 $ 182,192,740.72 $
-10,353,911.28 $ 181,680,435.29 $
10,866,216.71 $ _ ___;5;.::1:::2:.::,3:::05::.;...:.43::...
3,059,912.46 $
86,730.00 $ 182,320,740.72 $
-10,353,911.28 $ 181,808,226.69 $
10,866,425.31 $ =~....;;5;.;;1;;;;2;;;;5~14,;,;.;;;03;;.
0.00
-10,353,911.28
-21-
0.00
128,916,952.10
Variance
Positive (Negative)
Excess (Deficiency)
of Funds Available
0.00
10,846,054.90
0.00
492,143.62

STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE
Beginning Fund
Balance/(Deficit)
July 1
Special Funding Initiatives
State Appropriation
State General Funds
Fund Balance
Carried Over from
Prior Period
as Funds Available
Return of
Fiscal Year 2010
Surplus
Prior Period
Adjustments
15,63B.29 $
0.00 $
-15,63B.29 $
1,365.26
0.00 $
3,627,140.98
0.00 $
-3,059,912.46
0.00 $
-567,228.52
122,931.51
10,139.38
Total Teaching
3,627,140.98 $
-3,059,912.46 $
-567,228.52 $
133,070.89
Total Operating Activity
3,642,779.27 $
-3,059,912.46 $
-582,866.81 $
134.436.15
Teaching
State Appropriation
State General Funds
Other Funds
Prior Year Reserves

Not Available for Expenditure
Inventories
198,250.62
1,686,361.41
0.00
0.00
0.00
0.00
0.00
0.00
Budget Unit Totals
5,527,391.30 $
principles.
-22-
-3,059,912.46 $
-582,866.81 $
134.436.15
SCHEDULE "4"
Other
Adjustments
Excess (Deficiency)
of Funds Available
Over/(Under)
Expenditures
Early Return
Fiscal Year 2011
Surplus
Ending Fund
Balance/(Deficit)
June 30
Reserved
Analysis of Ending Fund Balance

Surplus/(Deficit)
Total
0.00 $
0.00 $
208.60 $
1,573.86 $
0.00 $
1,573.86 $
1,573.86
60,784.49 $
-420,577.09
137,857.39 $
0.00
20,161.81 $
492,143.62
66,020.42 $
81,705.91
0.00 $
35,723.57
66,020.42 $
45,982.34
66,020.42
81,705.91
$ 359,792.60 $
137,857.39 $
512,305.43 $
147,726.33 $
35,723.57 $
112,002.76 $
147,726.33
$ 359,792.60 $
137,857.39 $
512,514.03 $
149,300.19 $
35,723.57 $
113,576.62 $
149,300.19
60,784.49
420,577.09
0.00 $
0.00
0.00
0.00
0.00
-137,857.39 $
512,514.03 $
137.466.13
2,106,938.50
137.466.13
2,106,938.50
2,393,704.82 $
2,280,128.20 $
Summary of Ending Fund Balance

Reserved
Technology Fees
Capital Outlay
Tuition Carry-Over
Inventories
Unreserved
Surplus
0.00
0.00
Total Ending Fund Balance- June 30
-23-
113,576.62 $
2,393,704.82
-271,248.25
1,509.98
-94,896.75
526,684.18
-200,575.84
2,106,938.50
74,250.25
137.466.13
-271,248.25
1,509.98
-94,896.75
526,684.18
-200,575.84
2,106,938.50
74,250.25
137.466.13
$
2,280,128.20 $
137.466.13
2,106,938.50
113,576.62
113,576.62 $
113,576.62
2,393,704.82
(This page left intentionally blank)

SCHEDULE "5"
SALARIES
Totals per Annual Supplement

Accruals
June 30, 2011
84,344,064.10 $
287,287.00
-187,264.95
June 30, 2010
TRAVEL
835,049.05
5,725.56
June 30, 2011
June 30, 2010
3,927,554.67
-3,474,637.71
Adjustments
Shared Services on Jointly Staffed Personnel
Atlanta Metropolitan College
GodfreyNoe
-500.00
Ossie Carney
Silveree Benson
Board of Regents
4,704.65
3,360.00
Virginia Michelich
Felita Williams
Fort Valley State University
-177,454.00
-136,949.64
Shae Anderson
Georgia Gwinnett College
Janita Rawls
Stephanie Whittington
2,100.00
-8,612.00
11,733.44
Georgia Highlands College

Merry Clark
Georgia Institute of Technology
8,800.04
Demetris Geddis
Georgia Southwestern State University
14,666.80
James Kahiga
Georgia State University
-6,000.00
-200.00
Robert Jenkins
Sarah Paschal
Sarah Spencer
-6,000.00
880.02
Gordon College
Darren Broom
Kennesaw State University
4,200.00
Amy Hopkins
North Georgia College and State University
Pamela Moolinar Wirsiy
1,400.00
-300.00
University of West Georgia

Meda Rollings
Ronald Chilluffo
6,300.00
13,200.08
Unidentified Variance
11,439.73
-25-
0.39
84,643,772.23 $ ===8=40==7=75=.0=0=
SECTION II
ENTITY'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

ENTITY'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS
FS-571-10-01
Partially Resolved- See Corrective Action/Responses
CORRECTIVE ACTION/RESPONSES
ACCOUNTING CONTROLS (OVERALL)
Inadequate Accounting Procedures
Finding Control Number: FS-571-10-01
Georgia Perimeter College continues to improve accounting procedures and internal
controls through an organizational redesign of Accounting Services to review, determine,
and implement: (1) the clear requirements for Accounting Services; (2) improved
procedures and strengthened controls, and (3) processes of accountability. The first phase
of the reorganization is underway with several steps completed. A completely new
Accounting organization, overall enhanced controls, and policies and procedures will be
implemented by December 31, 2011. Once fully implemented, Financial Affairs will
schedule an engagement with Georgia Perimeter College Internal Audit to assess the
effectiveness.
The statuses of the corrective actions to the four specific deficiencies follow:
1.
2.
3.
4.
Previously Reported Corrective Action Implemented

Partially Resolved: Georgia Perimeter College is working with ITS to resolve remaining
items related to the 2002 conversion of CUFA to PeopleSoft where some assets were
not added directly to the AM Module.
PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

No matters were reported.
SECTION Ill
FINDINGS, QUESTIONED COSTS AND OTHER ITEMS

FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINANCIAL REPORTING
Errors Noted in Financial Statement Preparation
Material Weakness
Condition:
The accounting procedures of the College were insufficient to ensure that

various account balances were properly reflected on both the accounting
records and the College's financial statements.
Criteria:
NCGA Statement 1, paragraph 1, prescribes that an accounting system (1)

present fairly and fully disclose funds of the governmental unit in accordance
with generally accepted accounting principles and (2) demonstrate
compliance with finance related legal and contractual provisions. Additional
administrative requirements are contained in the University System of
Georgia, Board of Regents' Business Procedures Manual.
Management is responsible for establishing and implementing policies and
procedures over the preparation of financial statements prepared in
accordance with generally accepted accounting principles (GMP).
Additionally, the College is required to annually submit GMP basis financial
statements for inclusion in the State of Georgia's Comprehensive Annual
Financial Report (CAFR) and the State of Georgia's Single Audit Report.
Questioned Cost:
N/A
Information:
The following deficiencies were noted in the financial statements prepared by

the College:
1. The College did not adequately monitor Restricted and Agency Fund
activity, which resulted in invalid accounts receivable and deficit fund
balances. Items noted include:
a. Invalid accounts receivable were recorded for HOPE activity, resulting
in an overstatement of accounts receivable and deposits held for
other organizations of $3,274,133. An entry was proposed and
accepted by the College to correct.
b. Invalid accounts receivable totaling $1,064,202 were recorded for
various Federal grants. An entry was proposed and accepted by the
College to correct.
c. Accounts receivable totaling $427,384 were noted for grants with
prior budget periods and/or grant codes. These items should be
reviewed by the College to determine whether the accounts
receivable are still valid.
d. A prior period adjustment to the HOPE program totaling $1,262,269
was not posted by the College, resulting in an understatement of
accounts receivable and deposits held for others. An entry was
proposed and accepted by the College to correct.
e. Restricted net assets were reported at a negative balance of
$310,135.
-1-


FINANCIAL REPORTING
Material Weakness
2. Accumulated Depreciation recorded on the financial statements did not
agree to the amount on the accounting records by $1,444,308. An entry
was proposed and accepted by the College to reduce depreciation
expense by this amount.
3. The Cash Flow Statement did not accurately reflect activity for the
following items:
a. Principal Paid on Capital Debt was overstated by $24,806,138. Error
was corrected.
b. Beginning cash on hand did not agree to the prior year ending cash
balance by $1,675,4 75. Error was corrected.
c. An unreconciled variance of $44,451 was noted for cash flows for
purchases of Capital Assets to Capital Assets additions reported in
the Selected Notes to the Financial Statements.
d. Other items on the cash flow statement do not appear reasonable in
comparison to other financial data presented in the financial
statements. Cash flows from operating activities for grants and
contracts and other receipts appear overstated based on operating
grants and contracts on the Statement of Revenues, Expenses, and
Changes in Net Assets. Cash flows for Agency Fund activities appear
understated.
4. Various other adjustments to the financial statements were identified by
Department of Audits and Accounts and adjusted/corrected during the
Board of Regents review process.
a. Beginning net assets did not agree to the prior year ending net assets
by $21,389,989.
b. Net assets on the Statement of Net Assets did not agree to the net
assets on the Statement of Revenues, Expenses, and Changes in Net
Assets due to various rounding items.
c. State appropriations revenue was not reduced by the amount of
surplus remitted to the State of Georgia in the current year.
Cause:
The College's management failed to implement satisfactory procedures to

ensure that the financial statements were accurate, adequately documented
and presented fairly in accordance with generally accepted accounting
principles.
-2-


FINANCIAL REPORTING
Material Weakness
Effect:
Significant errors were included in the financial statements presented for

review. In addition, the lack of satisfactory procedures and failure to adhere
to Board of Regents policies could impact reporting of the College's financial
position and results of operations.
Recommendation:
The College should develop procedures to ensure that the financial

statements are accurate, adequately documented, and presented fairly in
accordance with generally accepted accounting principles.
FINANCIAL REPORTING
Inadequate Accounting Procedures over Budget Preparation and Execution
Significant Deficiency
Condition:
Through our examination, it was determined that the College failed to

properly monitor budgetary financial activity during the year. At June 30,
2011, the College maintained several funds in a deficit situation.
Criteria:
Management is responsible for establishing, maintaining and monitoring

procedures, the purpose of which is to ensure the fair presentation of the
budget basis financial statements provided for inclusion in the State of
Georgia Budgetary Compliance Report.
Questioned Cost:
N/A
Information:
The following deficiencies were noted in the College's budget basis financial
statements presented in Schedules 1-4:
1. Balances maintained on the College's general ledger did not agree to the
budgetary statements for cash ($54,550.64 overstatement) and
encumbrances payable ($130, 773.26 overstatement).
2. The College was in a reserved deficit in the Department Sales and
Services Fund ($271,248.25), Technology Fees Fund ($94,896.75), and
Restricted/Sponsored Funds ($200,575.84).
3. Encumbrances Payable with a credit balance of $54,616.04 were
determined to be invalid and were removed from the budgetary
statements.
4. The budget ledger within the accounting system, was not being properly
monitored and maintained. Certain entries posted to the budget ledger
were not reflected on the budgetary statements.
-3-


FINANCIAL REPORTING
Inadequate Accounting Procedures over Budget Preparation and Execution
Significant Deficiency
Cause:
These deficiencies were a result of a lack of adequate procedures over the

preparation of the budget basis financial statements. Additionally, the College
failed to implement adequate procedures over its expenditures to ensure that
they did not exceed the funds available in each fund.
Effect:
Failure to submit accurate budget basis statements prohibits users from

having access to pertinent financial information needed for decision making.
Recommendation:
The College should design and implement procedures over its expenditures
process to ensure that expenditures do not exceed the budget or funds
available. Open Purchase Orders should be monitored closely to ensure that
encumbrances payable accurately reflect a true obligation of funds.
FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

No matters were reported.
OTHER ITEMS (NOTED FOR MANAGEMENT'S CONSIDERATION)
Salaries paid totaling $825,257.24 were originally reported as a reconciling item and not reported
as payments of salaries to the Department of Audits and Accounts. When brought to the attention of
the College, a corrected report was resubmitted to properly report these payments of salary by
employee.
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2011-571-Georgia Perimeter College FDMR

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2011-571-Georgia Perimeter College FDMR

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GEORGIA PERIMETER

A Member Institution of the

GEORGIA PERIMETER COLLEGE

STATEMENT OF NET ASSETS- (GMP BASIS)

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS(GMP BASIS)

STATEMENT OF CASH FLOWS- (GMP BASIS)

SELECTED FINANCIAL NOTES

BALANCE SHEET- (STATUTORY BASIS) BUDGET FUND

GEORGIA PERIMETER COLLEGE

DEPARTMENT OF AUDITS AND ACCOUNTS

December 13, 2011

Honorable Nathan Deal, Governor

SELECTED FINANCIAL INFORMATION

GEORGIA PERIMETER COLLEGE

Accounts Receivable, Net (Note 3)

Total Noncurrent Assets

Total Current Assets

Deposits Held for Other Organizations

Total Noncurrent Liabilities

Total Current Liabilities

Total Net Assets

GEORGIA PERIMETER COLLEGE

Student Tuition and Fees

Grants and Contracts

Sales and Services of Educational Departments

Rents and Royalties

Other Operating Revenues

Total Operating Revenues

Supplies and Other Services

Operating Income (Loss)

NONOPERATING REVENUES CEXPENSESl

Interest and Other Investment Income

Other Nonoperating Revenues

Net Nonoperating Revenues

Income (Loss) Before Other Revenues, Expenses, Gains, or Losses

Capital Grants and Gifts

Increase in Net Assets

Net Assets- End of Year

GEORGIA PERIMETER COLLEGE

CASH FLOWS FROM OPERATING ACTIVITIES

Tuition and Fees

Sales and Services of Educational Departments

Payments for Scholarships and Fellowships

Loans Issued to Students

Auxiliary Enterprise Charges:

Other Receipts (Payments)

Net Gash Provided (Used) by Operating Activities

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES

Net Cash Flows Provided (Used) by Noncapital Financing Activities

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES

Principal Paid on Capital Debt and Leases

Interest Paid on Capital Debt and Leases

Net Cash Provided (Used) by Capital and Related Financing Activities

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from Sales and Maturities of Investments

Net Gash Provided (Used) by Investing Activities

Net Increase (Decrease) in Cash

Cash and Gash Equivalents- Beginning of Year

Gash and Cash Equivalents - End of Year

RECONCILIATION OF OPERATING LOSS TO NET CASH

Change in Assets and Liabilities:

Notes Receivable, Net

Net Gash Provided (Used) by Operating Activities

GEORGIA PERIMETER COLLEGE