Comprehensive Standard: The institution’s recent financial history demonstrates financial stability
X Compliance
Partial Compliance
Non-Compliance
Narrative:
Georgia State University’s financial resources are sufficient as related to the University’s mission, the scope of its programs, and its student enrollment. A review of the last four years of Audited Financial Statements [1] [1] [1] [1] demonstrates financial stability in the areas of annual operating budget, unrestricted revenues, and unrestricted fund balances.
The five-year history of Georgia State’s E&G core budget (comprising legislative appropriations, lottery funds, student fees, and plant operations and maintenance) shows annual increases and decreases in proportion to credit hour production [2]. (See Sections A, Students, and E, Finance.)
Georgia State derives income from state appropriations, tuitions and fees, and other sources, such as sales and services, grants, endowments, and interest on investments. State funds are allocated to the University as a part of the overall allocation for the 34 institutions comprising the University System of Georgia on the basis of a funding formula [3]. This formula is used by the Board of Regents to request Resident Instruction funds from the State of Georgia, by the Governor to recommend Resident Instruction funding to the Legislature, and by the Legislature to appropriate state funds for Resident Instruction. An array of workload variables is applied to a set of constants to determine funding needs. Each institution is then allocated a portion of these funds based on the needs of the institution and the recommendations of the Board of Regents.
For the fiscal year ended June 30, 2005, the unrestricted net asset balance was $69,723,008.59[4]. For the fiscal year ended June 30, 2006, the unrestricted net asset balance was $76,201,851.66 [5]. The increase of $6.5 million reflects the University’s financial stability.
The Georgia State University Foundation had endowment investments of $71 million as of June 30, 2005 and $82.4 million as of June 30, 2006 [6]. Fund-raising efforts continue to grow.
In conclusion, Georgia State University has exercised due diligence in ensuring that its financial operations parallel the financial needs of its mission-based programs.
Supporting Documentation:
1. Fiscal Year 2003 Annual Financial Audit Statements
Fiscal Year 2004 Annual Financial Audit Statements
Fiscal Year 2005 Annual Financial Audit Statements
Fiscal Year 2006 Annual Financial Audit Statements
2. Georgia State University trend information
3. Board of Regents, Funding Formula
4. 2005 Net Asset Balance
5. 2006 Net Asset Balance
6. Fiscal Year 2005 and 2006 Georgia State University Foundation Audited Financial Statements