2021 Georgia Code
Title 50 - State Government
Chapter 20 - Relations With Nonprofit Contractors
§ 50-20-2. Definitions

As used in this chapter, the term:

1. "Corrective action plan" means a plan of corrective action prepared by the nonprofit organization which addresses each audit finding included in the auditor's report. The corrective action plan shall provide the name or names of the contact person or persons responsible for the corrective action, the corrective action planned, and the anticipated completion date. If the nonprofit organization does not agree with audit findings or believes corrective action is not required, the corrective action plan shall then include an explanation and specific reasons.
2. "Generally accepted accounting principles" means generally accepted accounting principles specified in generally accepted auditing standards issued by the American Institute of Certified Public Accountants.
3. "Generally accepted auditing standards" means auditing standards issued by the American Institute of Certified Public Accountants for the conduct and reporting of financial audits.
4. "Generally accepted government auditing standards" means generally accepted government auditing standards issued by the comptroller general of the United States, which are applicable to financial audits.
5. "Nonprofit organization" means any corporation, trust, association, cooperative, or other organization that is operated primarily for scientific, educational, service, charitable, or similar purposes in the public interest; is not organized primarily for profit; and uses its net proceeds to maintain, improve, or expand its operations. The term nonprofit organization includes nonprofit institutions of higher education and hospitals. For financial reporting purposes guidelines issued by the American Institute of Certified Public Accountants should be followed in determining nonprofit status.
6. "Reporting package" means a package of documents containing a specified audit report, a summary schedule of prior year audit findings, and a corrective action plan for unresolved prior year and current year audit findings. Each audit report should include a schedule of findings and questioned costs and, if deemed necessary by the head of the contracting state organization, a schedule of state awards expended.
7. "Schedule of state awards expended" means a schedule arranged by state program name and contract number which reflects revenues, expenditures, or expenses and amounts owed to or due from each state organization. Amounts listed for each program should include state or federal funds, or both, which pass through state organizations to the nonprofit contractor.
8. "State awards" means state or federal funds, or both, received from state organizations through contractual agreement.
9. "State awards expended" means the disbursement or obligation of state awards by a nonprofit organization.
10. "State funds" means that portion of contracts funded by state appropriations or other revenue sources retained by the contracting state organization but does not include federal pass-through assistance. State funds represent the basis for determination of appropriate audit requirements set forth in paragraphs (1) and (2) of subsection (b) of Code Section 50-20-3.
11. "State organization" means any organization included within the state financial reporting entity. Such organizations include all departments, boards, bureaus, commissions, authorities and other such organizations whose financial activities and balances are included within the State of Georgia Comprehensive Annual Financial Report.
12. "Summary schedule of prior year audit findings" means a schedule reporting the status of all audit findings included in the prior audit's schedule of findings and questioned costs. The schedule shall also include audit findings reported in the prior audit's summary schedule of prior audit findings which were listed as uncorrected.

(Code 1981, §50-20-2, enacted by Ga. L. 1998, p. 237, § 1; Ga. L. 2013, p. 141, § 50/HB 79.)

OPINIONS OF THE ATTORNEY GENERAL

Editor's notes.

- In light of the similarity of the statutory provisions, opinions under Ga. L. 1976, p. 1414, § 6, which was subsequently repealed but was succeeded by provisions in this Code section, are included in the annotations of this Code section.

- For these provisions to apply, the entity contracting with the state agency must be one normally and generally engaged in nonprofit endeavors, and not simply an organization which, for the purposes of one specific contract, receives no profit for services provided a state agency. 1977 Op. Att'y Gen. No. 77-27 (decided under Ga. L. 1976, p. 1414, § 6).

- Law covers all noncompetitively bid contracts, other than individual employment contracts, that are entered into between a state agency and a nonprofit contractor when the nonprofit contractor receives public funds of any kind under the contract. 1976 Op. Att'y Gen. No. 76-64 (decided under Ga. L. 1976, p. 1414, § 6).

Private individuals who contract with the Department of Natural Resources for the preparation of nominations for the National Register of Historic Places or for the restoration or maintenance of sites of historical value through moneys provided by National Park Service restoration grants are not nonprofit contractors in the sense in which that term is defined and used in the law. 1977 Op. Att'y Gen. No. 77-27 (decided under Ga. L. 1976, p. 1414, § 6).

- Law is not applicable to contracts between the Department of Natural Resources and universities and their units or extensions which are part of the University System of Georgia or the university system of another state since the exemption in this section removes the Board of Regents and its governed institutions from the definition of "nonprofit contractor" used in the section. However, these provisions would, in most instances, be applicable to contracts with private colleges and universities. 1976 Op. Att'y Gen. No. 76-88 (decided under Ga. L. 1976, p. 1414, § 6).

- As a general rule, nonprofit corporations and organizations are those presumably designed for the attainment or conference upon others of spiritual or cultural benefits, or benefits of a philanthropic nature. 1977 Op. Att'y Gen. No. 77-27 (decided under Ga. L. 1976, p. 1414, § 6).