Standard Number 3.10.1: The institution’s recent financial history demonstrates financial stability.

Full Compliance

Georgia Southern 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 five years of Audited Financial Statements and the last five years of internally prepared Annual Financial Reports (AFRs) demonstrates financial stability—showing that despite encountering challenging budget constraints, the University has consistently operated with a balanced budget.

Georgia Southern 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. 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.

The University’s 2003-2004 Fact Book (p. 91) shows that Georgia Southern received 45.1% of its FY 2003 total education and general revenues from state appropriations, which is consistent with previous years and with the budget for the current year. Other sources of funds include tuition and fees (21.6%) and grants and contracts (31.5%). Tuition and fees are either mandated by the Board of Regents; or by the University and approved by the Board of Regents; or they are electives which are established by the institution, approved by the Chancellor, and paid by the students who use those services.⁶⁴ The Board must authorize increases in tuition and matriculation fees to bring the students’ contribution up to 25% of the total general operations revenue in the Resident Instruction budget funding formula. Due to the Board of Regents’ long-term commitment to enhance access to Georgia’s 34 institutions through low tuition and fees, Georgia has a record of some of the lowest tuition rates in the nation, and as a result, the cost of public higher education in Georgia is considered a bargain and is demonstrated by the record number of students reported in the Chancellor’s news release of January 13, 2004, and in University Systems’ enrollment reports. Georgia Southern increased its enrollment for Fall 2003 by 4.2% (8.5% over the previous five years) and continues to show growth in student enrollment for the Fall 2004.

Georgia Southern looks for partners in its quest to provide quality education and as such seeks funds from other sources, including grants and contracts, endowments and gifts. Increased effort in this area has reflected significant funding as shown in the Annual Financial Reports (AFR) and the Audited Financial Statements. The University will continue its efforts to obtain outside funding.

The University controls and accounts for state appropriations along with other resources by using budget controls within its accounting system in accordance with the guidelines established in the Board of Regents Policy Manual (see § 700 et.seq.). The Georgia Department of Audits and Accounts of the State of Georgia performs a complete annual audit of the University’s financial statements, providing assurance that the institution has accounted for the funds properly and that the financial statements are presented fairly, in all material respects, and in conformity with accounting principles and government accounting standards. Georgia Department of Audits and Accounts is independent of Georgia Southern University and the University System of Georgia.

In summary, a review of the institution’s recent financial history supports the conclusion that the institution does demonstrate financial stability.