-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QIkIzYT0rn1QiILgPP3BpYgxOJlAck+GRa25h9kydKtOWTEHjQYks3v4fPQ/8ei6 sIg7+ilyPQyLWy/RW74qTg== 0000931763-99-001987.txt : 19990630 0000931763-99-001987.hdr.sgml : 19990630 ACCESSION NUMBER: 0000931763-99-001987 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990629 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERICAN SOFTWARE INC CENTRAL INDEX KEY: 0000713425 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 581098795 STATE OF INCORPORATION: GA FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 000-12456 FILM NUMBER: 99654799 BUSINESS ADDRESS: STREET 1: 470 E PACES FERRY RD NE CITY: ATLANTA STATE: GA ZIP: 30305 BUSINESS PHONE: 4042614381 MAIL ADDRESS: STREET 1: 470 EAST PACES FERRY ROAD NE CITY: ATLANTA STATE: GA ZIP: 30305 11-K 1 FORM 11-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 11-K (Mark One) [ X ] ANNUAL REPORT PURSUANT TO SECTION 15(d) of the SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended - December 31, 1998 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) of the SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission file number - 33-55214 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: AMERICAN SOFTWARE, INC. 401(k)/PROFIT SHARING PLAN 470 EAST PACES FERRY ROAD, N.E. ATLANTA, GEORGIA 30305 B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: AMERICAN SOFTWARE, INC. 470 EAST PACES FERRY ROAD, N.E. ATLANTA, GEORGIA 30305 REQUIRED INFORMATION Financial Statements: 1. Not required. 2. Not required. 3. Not required. 4. ERISA financial statements for the Plan year ended December 31, 1998 are attached as Exhibit 99.1 to this Report and incorporated herein by this reference. SIGNATURES The Plan. Pursuant to the requirements of the Securities Exchange Act -------- of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. AMERICAN SOFTWARE, INC. 401(k)/PROFIT SHARING PLAN Date: June 28, 1999 By: /s/ Vincent C. Klinges ------------------------- Name and Title: Vincent C. Klinges, Vice President - Finance -------------------------------------------- AMERICAN SOFTWARE, INC. 401(K) PROFIT SHARING PLAN Table of Contents Page Independent Auditors' Report 1 Statements of Net Assets Available for Plan Benefits as of December 31, 1998 and 1997 2 Statements of Changes in Net Assets Available for Plan Benefits - Years ended December 31, 1998 and 1997 3 Notes to Financial Statements 4 Schedules 1 Schedule 27a - Schedule of Assets Held for Investment Purposes as of December 31, 1998 11 2 Schedule 27d - Schedule of Reportable Transactions - Year ended December 31, 1998 12 Independent Auditors' Report The Plan Administrator and Trustee American Software, Inc. 401(k) Profit Sharing Plan: We have audited the accompanying statements of net assets available for plan benefits of American Software, Inc. 401(k) Profit Sharing Plan (the "Plan") as of December 31, 1998 and 1997, and the related statements of changes in net assets available for plan benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for plan benefits of the Plan as of December 31, 1998 and 1997, and the changes in net assets available for plan benefits for the years then ended in conformity with generally accepted accounting principles. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules of assets held for investment purposes as of December 31, 1998, and of reportable transactions for the year ended December 31, 1998, are presented for the purpose of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. These supplemental schedules are the responsibility of the Plan's management. The supplemental schedules have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. /s/ KPMG LLP Atlanta, Georgia June 23, 1999 AMERICAN SOFTWARE, INC. 401(K) PROFIT SHARING PLAN Statements of Net Assets Available for Plan Benefits December 31, 1998 and 1997 1998 1997 ----------- ---------- Assets: Investments: American Software, Inc. common stock $ 72,409 324,707 Mutual funds (note) 32,006,157 24,194,689 Loans to participants 377,827 314,542 ----------- ---------- Total investments 32,456,393 24,833,938 Employee contributions receivable 142,664 257,574 ----------- ---------- Total assets 32,599,057 25,091,512 Liabilities - refundable excess contributions payable (100,089) (14,826) ----------- ---------- Net assets available for plan benefits $32,498,968 25,076,686 =========== ========== See accompanying notes to financial statements. 2 AMERICAN SOFTWARE, INC. 401(K) PROFIT SHARING PLAN Statements of Changes in Net Assets Available for Plan Benefits December 31, 1998 and 1997 1998 1997 ----------- ---------- Additions to net assets attributed to: Employee contributions $ 2,601,690 2,153,258 Rollovers 285,706 180,495 Interest and dividends 1,590,661 1,613,402 Interest on loans to participants 23,336 31,566 Net appreciation in fair value of investments (note 6) 4,428,516 2,418,096 ----------- ---------- Total additions 8,929,909 6,396,817 ----------- ---------- Deductions from net assets attributed to: Benefits paid to participants 1,504,717 1,386,619 Administrative expenses 2,910 3,373 ----------- ---------- Total deductions 1,507,627 1,389,992 ----------- ---------- Net change 7,422,282 5,006,825 Net assets available for plan benefits at beginning of year 25,076,686 20,069,861 ----------- ---------- Net assets available for plan benefits at end of year $32,498,968 25,076,686 =========== ========== See accompanying notes to financial statements. 3 AMERICAN SOFTWARE, INC. 401(K) PROFIT SHARING PLAN Notes to Financial Statements December 31, 1998 and 1997 (1) The Plan The following description of the American Software, Inc. 401(k) Profit Sharing Plan (the "Plan") provides only general information. Participants should refer to the Plan agreement, as restated and amended, for a more complete description of the Plan's provisions. The Company intends to continue the Plan but reserves the right to amend, modify, or restate the Plan from time to time and to suspend, terminate, or discontinue contributions under the Plan. If the Plan is terminated, benefits will be distributed in accordance with provisions of the Plan. (a) General The Plan is a defined contribution plan covering all full-time employees of American Software, Inc. and its subsidiaries (the "Company"). In December 1997, the Plan was amended by changing the service requirement from one year of service to no service requirement. It is subject to certain provisions of the Employee Retirement Income Security Act of 1974 ("ERISA"). The purpose of the Plan is to provide eligible employees of the Company a qualified retirement plan which meets the requirements of Section 401(k) of the Internal Revenue Code with respect to which contributions will be excluded from the employee's income. (b) Contributions Participants may elect to contribute 1% to 15% of their annual compensation to the Plan (subject to the limitations of Section 401(k) of the Internal Revenue Code). The Company's profit sharing contribution to the Plan is determined at the discretion of the Board of Directors. In no event shall the annual contributions (i.e., participant and Company contributions) made with respect to a participant under all defined contribution plans maintained by the Company, together with forfeitures allocated to that participant, exceed the lesser of $30,000 or 25% of the participant's annual compensation. Participant contributions may be invested in one or more of the investment options available under the Plan. (c) Participant Rollovers Employees are allowed, under the provisions of the Plan, to transfer to the Plan account balances from other eligible retirement plans with the consent of the plan administrator and provided that the transfer will not jeopardize the tax-exempt status of the Plan. (d) Participant Accounts Each participant's account is credited with the participant's contribution, if any, and an allocation of (a) the Company's contribution, if any, and (b) Plan earnings (loss). Allocations are based on participant earnings or account balances, as defined. Forfeitures of terminated participants' nonvested accounts are retained in the Plan and approximated $7,900 as of December 31, 1998 and 1997. These forfeitures are used to reduce future Company contributions. (e) Vesting Participants are immediately vested in their voluntary contributions plus actual earnings thereon. Vesting in the remainder of their accounts is based on years of continuous service. Participants vest 20% per year after years two, three, four, and five and are 100% vested after six years of credited service. (Continued) 4 AMERICAN SOFTWARE, INC. 401(K) PROFIT SHARING PLAN Notes to Financial Statements December 31, 1998 and 1997 Although it has not expressed any intent to do so, the Company has the right to terminate the Plan at any time, subject to the provisions of ERISA. In the event of Plan termination, participants become 100% vested in their accounts. (f) Payment of Benefits Upon termination of service, retirement, or reaching age 59-1/2, a participant may elect to receive either a lump-sum amount equal to the value of his or her account or a series of approximately equal installments for a specified period of time not exceeding the participant's life expectancy if the account exceeds $3,500. The Plan also provides for death benefits to the participant's beneficiary equal to the amount in the participant's account and disability benefits to the participant equal to the amount in the participant's account if the participant becomes totally and permanently disabled. In addition, the Plan provides for hardship withdrawals as defined in the Plan. (g) Participant Loans The Plan provides for loans against a participant's account from $1,000 to $50,000 but limited to 50% of the participant's account balance. Participants can apply for one loan per year and are limited to one loan outstanding. Loans bear interest at a rate determined by the Plan. Loans are repayable over a five-year period unless for the purchase of a principal residence which is repayable over a 10-year period. Loans are repayable upon death, disability, or termination of employment. (h) Year 2000 The Plan has received Year 2000 disclosures from the Plan administrator and Trustee. They have indicated that they are currently in the remediation and testing phases of their Year 2000 readiness plans with testing to continue through the third quarter of 1999. In addition, they are in the process of developing and refining contingency plans for their business systems and processes. The Plan will continue to monitor their progress and is attempting to set up data exchange tests for later in the year. Due to the uncertainty of potential Year 2000 problems which are outside the scope of the Plan's control, such as public utilities, financial institutions, governmental functions, and various other vendors on which the Plan relies, the Plan is unable to reasonably predict the possible exposure and impact of Year 2000 failure on the Plan. (2) Summary of Significant Accounting Policies (a) Basis of Accounting The accounts are maintained and the accompanying financial statements are presented on the accrual basis of accounting. (b) Investment Valuation and Income Recognition Investments in American Software, Inc. common stock and mutual funds are carried at fair value as determined by the Trustee of the Plan based primarily on the latest quoted market prices. Loans to participants are interest-bearing and stated at cost, which based on discounted cash flows, approximates fair value. Purchases and sales of securities are recorded on a trade-date (Continued) 5 AMERICAN SOFTWARE, INC. 401(K) PROFIT SHARING PLAN Notes to Financial Statements December 31, 1998 and 1997 basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. (c) Payment of Benefits Benefits are recorded when paid. (d) Use of Estimates Management of the Plan has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with generally accepted accounting principles. Actual results could differ from those estimates and assumptions. (3) Investments The fair values of investments that represent 5% or more of the Plan's net assets are as follows: December 31, 1998: Mutual Funds: Fidelity Retirement Government Money Market $ 3,503,890 Fidelity Blue Chip Growth 9,105,322 Fidelity Magellan 5,305,083 Fidelity Fund 4,944,480 Fidelity Capital Appreciation 1,829,173 Fidelity OTC Portfolio 2,757,332 Fidelity Intermediate Bond 1,625,947 Other 2,934,930 ----------- $32,006,157 =========== December 31, 1997: Mutual Funds: Fidelity Retirement Government Money Market $ 3,013,004 Fidelity Blue Chip Growth 6,121,720 Fidelity Magellan 3,834,305 Fidelity Fund 3,842,387 Fidelity Capital Appreciation 1,638,272 Fidelity OTC Portfolio 2,324,228 Fidelity Intermediate Bond 1,391,564 Other 2,029,209 ----------- $24,194,689 =========== (4) Income Tax Status The Plan has obtained a determination letter from the Internal Revenue Service stating that the Plan qualifies under the appropriate section of the Internal Revenue Code ("IRC") and, therefore, is not subject to tax under present income tax law. Once qualified, the Plan sponsor is required to operate in conformity with the IRC to maintain its qualification. The Plan sponsor believes that the Plan continues to qualify and to operate as designed. (Continued) 6 AMERICAN SOFTWARE, INC. 401(K) PROFIT SHARING PLAN Notes to Financial Statements December 31, 1998 and 1997 (5) Administrative Expenses Substantially all legal, accounting, and administrative fees related to the Plan are paid by the Company. Administrative expenses paid by the Plan represent fees paid to the trustee for trust services. (6) Net Appreciation in Fair Value Investments held by the Plan had net appreciation (depreciation) in fair value during the years ended December 31, 1998 and 1997, as follows: Net appreciation (depreciation) in fair value -------------------------------------- 1998 1997 ----------------- --------------- American Software, Inc. common stock $ (242,567) 105,739 Mutual funds 4,671,084 2,312,357 ----------------- --------------- $4,428,517 2,418,096 ================= =============== (Continued) 7 AMERICAN SOFTWARE, INC. 401(K) PROFIT SHARING PLAN Notes to Financial Statements December 31, 1998 and 1997 (7) Separate Investment Funds Below are the statements of net assets available for plan benefits and the statements of changes in net assets available for plan benefits of the investment funds as of and for the years ended December 31, 1998 and 1997:
December 31, 1998 -------------------------------------------------------------------------------------------- Fidelity Fidelity Fidelity American Fidelity Intermediate Fidelity Fidelity Capital Blue Chip Software Fidelity Magellan Bond OTC Overseas Appreciation Growth Stock Fund Fund Fund Fund Portfolio Fund Fund Fund ---------- -------- --------- ----------- --------- -------- ------------ ----------- Assets: Investments, at fair value: American Software, Inc. common stock $ 72,409 -- -- -- -- -- -- -- Mutual funds -- ,994,480 5,305,083 1,625,947 2,757,332 738,006 1,829,173 9,105,322 Loans to participants -- -- -- -- -- -- -- -- -------- -------- --------- --------- --------- ------- --------- --------- 72,409 ,994,480 5,305,083 1,625,947 2,757,332 738,006 1,829,173 9,105,322 Employee contributions receivable -- 18,999 26,067 7,851 7,673 5,082 11,360 31,238 -------- -------- --------- --------- --------- ------- --------- --------- Total assets 72,409 ,963,479 5,331,150 1,633,798 2,765,005 743,088 1,840,533 9,136,560 Liabilities - refundable excess contributions payable -- -- -- -- -- -- -- -- -------- ------- --------- --------- --------- ------- --------- --------- Net assets available for plan benefits $ 72,409 ,963,479 5,331,150 1,633,798 2,765,005 743,088 1,840,533 9,136,560 ======== ======== ========= ========= ========= ======= ========= ========= December 31, 1998 -------------------------------------------------------------------------------------------- Fidelity Retirement Fidelity Fidelity Fidelity Fidelity Government Real Europe Fidelity Asset Global Money Estate Fidelity Capital Latin Manager Bond Market Investment Fidelity Small Cap Appreciation American Portfolio Fund Portfolio Trust Contrafund Stock Fund Fund Fund ---------- -------- ---------- ---------- --------- ----------- ------------ --------- Assets: Investments, at fair value: American Software, Inc. common stock -- -- -- -- -- -- -- -- Mutual funds 1,088,659 254,528 3,503,891 122,417 213,364 114,073 59,744 31,191 Loans to participants -- -- -- -- -- -- -- -- --------- -------- --------- ---------- --------- ------- ------- ------- 1,088,659 254,528 3,503,891 122,417 213,364 114,073 59,744 31,191 Employee contributions receivable 6,187 1,647 8,389 256 3,799 1,544 1,818 115 --------- -------- --------- ---------- --------- ------- ------- ------- Total assets 1,094,846 256,175 3,512,280 122,673 217,163 115,617 61,562 31,306 Liabilities - refundable excess contributions payable -- -- -- -- -- -- -- -- --------- -------- --------- ---------- --------- ------- ------- ------- Net assets available for plan benefits 1,094,846 256,175 3,512,280 122,673 217,163 115,617 61,562 31,306 ========= ======== ========= ========== ========= ======= ======= =======
December 31, 1998 --------------------------------------------------------------------------------------------------- Morgan Fidelity INVESCO Stanley Refundable Southeast Fidelity High Emerging Fidelity excess Asia Balanced Yield Market Japan Loans to contributions Portfolio Fund Fund Portfolio Fund Participants payable Total ---------- -------- ---------- ---------- ---------- ------------ ------------- --------- Assets: Investments, at fair value: American Software, Inc. common stock -- -- -- -- -- -- -- 72,409 Mutual funds 11,465 34,086 199,120 12,969 55,307 32,006,157 Loans to participants -- -- -- -- -- 377,827 -- 377,827 --------- -------- --------- ---------- --------- ------- --------- ---------- 11,465 34,086 199,120 12,969 55,307 377,827 -- 32,456,393 Employee contributions receivable 186 8,166 1,949 288 50 -- -- 142,664 --------- -------- --------- ---------- --------- ------- --------- ---------- Total assets 11,651 42,252 201,069 13,257 55,357 377,827 -- 32,599,057 Liabilities - refundable excess contributions payable -- -- -- -- -- -- (100,089) (100,089) --------- -------- --------- ---------- --------- ------- --------- ---------- Net assets available for plan benefits 11,651 42,252 201,069 13,257 55,357 377,827 (100,089) 32,498,968 ========= ======== ========= ========== ========= ======= ========= ========== December 31, 1997 ---------------------------------------------------------------------------------------------------- Fidelity Fidelity Fidelity American Fidelity Intermediate Fidelity Fidelity Capital Blue Chip Software Fidelity Magellan Bond OTC Overseas Appreciation Growth Stock Fund Fund Fund Fund Portfolio Fund Fund Fund ---------- -------- --------- ----------- --------- -------- ------------ ---------- Assets: Investments, at fair value: American Software, Inc. common stock $324,707 -- -- -- -- -- -- -- Mutual funds -- ,842,387 3,834,305 1,391,564 2,324,228 725,799 1,638,272 6,121,720 Loans to participants -- -- -- -- -- -- -- -- -------- -------- --------- --------- --------- ------- --------- --------- 324,707 ,842,387 3,834,305 1,391,564 2,324,228 725,799 1,638,272 6,121,720 Employee contributions receivable -- 45,234 46,311 10,511 28,253 9,007 15,169 67,514 -------- -------- --------- --------- --------- ------- --------- --------- Total assets 324,707 ,887,621 3,880,616 1,402,075 2,352,481 734,806 1,653,441 6,189,234 Liabilities - refundable excess contributions payable -- -- -- -- -- -- -- -- -------- -------- --------- --------- --------- ------- --------- --------- Net assets available for plan benefits $324,707 ,887,621 3,880,616 1,402,075 2,352,481 734,806 1,653,441 6,189,234 ======== ======== ========= ========= ========= ======= ========= ========= December 31, 1997 ------------------------------------------------------------------------------------------------------- Fidelity Retirement Fidelity Fidelity Fidelity Fidelity Government Real Europe Fidelity Asset Global Money Estate Fidelity Capital Latin Manager Bond Market Investment Fidelity Small Cap Appreciation American Portfolio Fund Portfolio Trust Contrafund Stock Fund Fund Fund ---------- -------- ---------- ---------- --------- ----------- ------------ --------- Assets: Investments, at fair value: American Software, Inc. common stock -- -- -- -- -- -- -- -- Mutual funds 1,054,249 249,161 3,013,004 -- -- -- -- -- Loans to participants -- -- -- -- -- -- -- -- --------- ------- --------- --- ----- --- --- --- 1,054,249 249,161 3,013,004 -- -- -- -- -- Employee contributions receivable 11,607 2,905 17,416 574 1,501 282 181 50 --------- ------- --------- --- ----- --- --- --- Total assets 1,065,856 252,066 3,030,420 574 1,501 282 181 50 Liabilities - refundable excess contributions payable -- -- -- -- -- -- -- -- --------- ------- --------- --- ----- --- --- --- Net assets available for plan benefits 1,065,856 252,066 3,030,420 574 1,501 282 181 50 ========= ======= ========= === ===== === === ===
Year ended December 31, 1997 ---------------------------------------------------------------------------------------------- Morgan Fidelity INVESCO Stanley Refundable Southeast Fidelity High Emerging excess Asia Balanced Yield Market Loans to contributions Fund Fund Fund Portfolio Participants payable Total -------- -------- ------- --------- ------------ ------------- ------------- Assets: Investments, at fair value: American Software, Inc. common stock -- -- -- -- -- -- 324,707 Mutual funds -- -- -- -- -- -- 24,194,689 Loans to participants -- -- -- -- 314,542 -- 314,542 --- --- --- --- ------- ------- ---------- -- -- -- -- 314,542 -- 24,833,938 Employee contributions receivable 50 136 800 73 -- -- 257,574 --- --- --- --- ------- ------- ---------- Total assets 50 136 800 73 314,542 -- 25,091,512 Liabilities - refundable excess contributions payable -- -- -- -- -- (14,826) (14,826) --- --- --- --- ------- ------- ---------- Net assets available for plan benefits 50 136 800 73 314,542 (14,826) 25,076,686 === === === === ======= ======= ==========
AMERICAN SOFTWARE, INC. 401(K) PROFIT SHARING PLAN Notes to Financial Statements December 31, 1998 and 1997
Year ended December 31, 1998 ------------------------------------------------------------------------------------------------------ American Fidelity Fidelity Software Fidelity Fidelity Fedelity Fidelity Capital Blue Chip Stock Fidelity Magellan Intermediate OTC Overseas Appreciation Growth Fund Fund Fund Bond Fund Portfolio Fund Fund Fund --------- -------- --------- ------------ --------- -------- ------------ --------- Additions to net assets attributed to: Employee contributions $ -- 405,098 430,500 94,698 253,191 107,185 202,042 665,927 Rollovers -- 57,039 51,606 7,401 5,097 359 7,280 17,595 Interest and dividends -- 273,681 241,923 92,501 131,979 14,247 46,007 342,491 Interest on loans to participants and loan repayments -- 20,258 33,481 6,176 13,213 10,208 9,527 37,428 Net appreciation (depreciation) in fair value of investments (242,567) 913,107 ,082,190 13,676 647,514 69,367 216,006 1,848,290 --------- --------- --------- --------- --------- -------- --------- --------- Total additions (242,567) ,669,183 ,839,700 214,452 ,050,994 201,366 480,862 2,911,731 --------- --------- --------- --------- --------- -------- --------- --------- Deductions from assets attributed to: Benefits paid to participants 9,731 301,215 109,237 25,875 207,730 31,000 101,224 308,917 Administrative expenses -- 713 725 231 -- -- 100 106 Loans to participants -- 33,732 47,921 20,285 4,443 -- 8,452 22,983 --------- --------- --------- --------- --------- -------- --------- --------- Total deductions 9,731 335,660 238,883 46,391 212,173 31,000 109,776 332,006 --------- --------- --------- --------- --------- -------- --------- --------- Interfund transfers -- (257,665) (150,283) 63,662 (426,297) (162,084) (183,994) 367,601 --------- --------- --------- --------- --------- -------- --------- --------- Net change (252,298) ,075,858 ,450,534 231,723 412,524 8,282 187,092 2,947,326 Net assets available at beginning of year 324,707 ,887,621 ,880,616 1,402,075 ,352,481 734,806 1,653,441 6,189,234 --------- --------- --------- --------- --------- -------- --------- --------- Net assets available at end of year $ 72,409 ,963,479 ,331,150 1,633,798 ,765,005 743,088 1,840,533 9,136,560 ========= ========= ========= ========= ========= ======== ========= =========
Year ended December 31, 1998 ------------------------------------------------------------------------------------------------------ Fidelity Retirement Fidelity Fidelity Fidelity Fidelity Government Real Europe Fidelity Asset Global Money Estate Fidelity Capital Latin Manager Bond Market Investment Fedelity Small Cap Appreciation American Portfolio Fund Portfolio Trust Contrafund Stock Fund Fund Fund --------- -------- --------- ------------ ---------- ---------- ------------ -------- Additions to net assets attributed to: Employee contributions 131,717 32,600 196,861 12,297 49,920 18,894 16,286 2,260 Rollovers 22,894 2,155 26,736 438 30,123 6,728 31,435 -- Interest and dividends 198,399 14,328 180,336 9,340 15,629 4,952 -- 726 Interest on loans to participants and loan repayments 7,570 876 15,217 6 2,199 -- 5 -- Net appreciation (depreciation) in fair value of investments (38,414) 901 -- (34,530) 21,288 (29,677) (5,555) (3,009) --------- ------- --------- ------- ------- ------- ------ ------ Total additions 322,166 50,860 419,150 (12,449) 119,159 897 42,171 (23) --------- ------- --------- ------- ------- ------- ------ ------ Deductions from assets attributed to: Benefits paid to participants 82,641 14,714 79,356 21,723 39,988 3,595 29,484 8 Administrative expenses 325 38 456 23 -- 6 184 -- Loans to participants 19,427 -- 43,650 -- -- -- -- -- --------- ------- --------- ------- ------- ------- ------ ------ Total deductions 102,393 14,752 123,462 21,746 39,988 3,601 29,668 8 --------- ------- --------- ------- ------- ------- ------ ------ Interfund transfers (190,783) (31,999) 186,172 156,294 136,491 118,039 48,878 31,287 --------- ------- --------- ------- ------- ------- ------ ------ Net change 28,990 4,109 481,860 122,099 215,662 115,335 61,381 31,256 Net assets available at beginning of year 1,065,856 252,066 3,030,420 574 1,501 282 181 50 --------- ------- --------- ------- ------- ------- ------ ------ Net assets available at end of year 1,094,846 256,175 3,512,280 122,673 217,163 115,617 61,562 31,306 ========= ======= ========= ======= ======= ======= ====== ======
Year ended December 31, 1998 ------------------------------------------------------------------------------------------------------ Morgan Fidelity INVESCO Stanley Refundable Southeast Fidelity High Emerging Fidelity excess Asia Balanced Yield Market Japan Loans to contributions Fund Fund Fund Portfolio Fund Participants payable Total ---------- --------- ------- ---------- ------- ------------ ------------- --------- Additions to net assets attributed to: Employee contributions 2,058 27,274 27,607 8,854 1,684 -- (85,261) 2,601,690 Rollovers -- 3,324 13,667 1,829 -- -- -- 285,706 Interest and dividends 27 2,131 21,727 147 90 -- -- 1,590,661 Interest on loans to participants and loan repayments -- 21 1,423 -- -- (134,272) -- 23,336 Net appreciation (depreciation) in fair value of investments 473 916 (31,482) (1,720) 1,742 -- -- 4,428,516 ------ ------ ------- ------ ------ -------- -------- --------- Total additions 2,558 33,666 (32,942) 9,110 3,516 (134,272) (85,263) 8,929,909 ------ ------ ------- ------ ------ -------- -------- --------- Deductions from assets attributed to: Benefits paid to participants 248 1,753 51,283 114 545 3,336 -- 1,504,717 Administrative expenses -- -- -- -- 3 -- -- 2,910 Loans to participants -- -- -- -- -- (200,893) -- -- ------ ------ ------- ------ ------ -------- -------- --------- Total deductions 248 1,753 51,283 114 548 (197,557) -- 1,507,627 ------ ------ ------- ------ ------ -------- -------- --------- Interfund transfers 9,291 10,203 218,610 4,188 52,389 -- -- -- ------ ------ ------- ------ ------ -------- -------- --------- Net change 11,601 42,116 200,269 13,184 55,357 63,285 (85,263) 7,422,282 Net assets avaiable at beginning of year 50 136 800 73 -- 314,542 (14,826) -- ------ ------ ------- ------- ------ -------- -------- --------- Net assets available at end of year 11,651 42,252 201,069 13,257 55,357 377,827 (100,089) -- ====== ====== ======= ====== ====== ======= ======== =========
AMERICAN SOFTWARE, INC. 401(K) PROFIT SHARING PLAN Notes to Financial Statements December 31, 1998 and 1997
Year ended December 31, 1997 ------------------------------------------------------------------------------------------------------ American Fidelity Fidelity Software Fidelity Fidelity Fidelity Fidelity Capital Blue Chip Stock Fidelity Magellan Intermediate OTC Overseas Appreciation Growth Fund Fund Fund Bond Fund Portfolio Fund Fund Fund -------- -------- --------- ------------ --------- ------- ------------ --------- Additions to net assets attributed to: Employee contributions $ -- 357,215 355,461 73,864 255,066 107,969 147,572 542,060 Rollovers -- 27,107 24,309 2,620 8,205 23,496 23,372 12,139 Interest and dividends -- 323,553 242,244 57,872 167,692 37,722 212,206 302,504 Interest on loans to participants and loan repayments -- 16,562 35,333 7,856 15,392 7,744 12,157 29,533 Net appreciation (depreciation) in fair value of investments 105,739 592,597 527,741 8,638 5,910 40,958 111,957 918,912 -------- --------- --------- --------- --------- ------- --------- --------- Total additions 105,739 1,317,034 1,185,088 150,850 452,265 217,889 507,264 1,805,148 -------- --------- --------- --------- --------- ------- --------- --------- Deductions from assets attributed to: Benefits paid to participants 37,430 183,798 322,774 5,469 107,782 47,694 75,536 234,882 Administrative expenses -- 297 1,113 244 -- -- 269 225 Loans to participants -- 37,917 58,451 2,950 -- -- 25,266 6,974 -------- --------- --------- -------- --------- -------- --------- --------- Total deductions 37,430 222,012 382,338 8,663 107,782 47,694 101,071 242,081 -------- --------- --------- -------- --------- -------- --------- --------- Interfund transfers -- 72,671 150,773 428,313 (126,747) (187,022) 36,208 323,727 -------- --------- --------- -------- ---------- --------- --------- --------- Net change 68,309 1,167,693 953,523 570,500 217,736 (16,827) 442,401 1,886,794 Net assets available at beginning of year 256,398 2,719,928 2,927,093 831,575 2,134,745 751,633 1,211,040 4,302,440 -------- --------- --------- -------- --------- -------- --------- --------- Net assets available at end of year $324,707 3,887,621 3,880,616 1,402,075 2,352,481 734,806 1,653,441 6,189,234 ======== ========= ========= ========= ========= ======== ========= =========
Year ended December 31, 1997 ------------------------------------------------------------------------------------------------------ Fidelity Retirement Fidelity Fidelity Fidelity Fidelity Government Real Europe Fidelity Asset Global Money Estate Fidelity Capital Latin Manager Bond Market Investment Fidelity Small Cap Appreciation American Portfolio Fund Portfolio Trust Contrafund Stock Fund Fund Fund --------- -------- --------- ---------- ---------- ---------- ------------ -------- Additions to net assets attributed to: Employee contributions 110,142 26,443 188,866 563 1,386 282 170 50 Rollovers 3,926 2,269 53,052 -- -- -- -- -- Interest and dividends 94,367 13,941 161,301 -- -- -- -- -- Interest on loans to participants and loan repayments 12,916 2,160 15,726 11 115 -- 11 -- Net appreciation (depreciation) in fair value of investments 124,461 (18,817) -- -- -- -- -- -- ---------- ------- ---------- --- ----- --- --- -- Total additions 345,812 25,996 418,945 574 1,501 282 181 50 ---------- ------- --------- --- ----- --- --- -- Deductions from assets attributed to: Benefits paid to participants 36,824 10,382 266,918 -- -- -- -- -- Administrative expenses 300 75 850 -- -- -- -- -- Loans to participants 20,271 1,549 28,314 -- -- -- -- -- ---------- ------- -------- --- ----- --- --- -- Total deductions 57,395 12,006 296,082 -- -- -- -- -- ---------- ------- -------- --- ----- --- --- -- Interfund transfers (201,571) (71,058) (425,294) -- -- -- -- -- ---------- -------- --------- --- ----- --- --- -- Net change 86,846 (57,068) (302,431) 574 1,501 282 181 50 Net assets available at beginning of year 979,010 309,134 3,332,851 -- -- -- -- -- ---------- ------- --------- --- ----- --- --- -- Net assets available at end of year 1,065,856 252,066 3,030,420 574 1,501 282 181 50 ========== ======= ========= === ===== === === ==
Year ended December 31, 1997 ------------------------------------------------------------------------------------------------- Morgan Fidelity INVESCO Stanley Refundable Southeast Fidelity High Emerging excess Asia Balanced Yield Market Loans to contributions Fund Fund Fund Portfolio Participants payable Total -------- -------- ------- --------- ------------ ------------- --------- Additions to net assets attributed to: Employee contributions 50 136 716 73 -- (14,826) 2,153,258 Rollovers -- -- -- -- -- -- 180,495 Interest and dividends -- -- -- -- -- -- 1,613,402 Interest on loans to participants and loan repayments -- -- 84 -- (124,034) -- 31,566 Net appreciation (depreciation) in fair value of investments -- -- -- -- -- -- 2,418,096 -- --- --- -- -------- -------- ---------- Total additions 50 136 800 73 (124,034) (14,826) 6,396,817 -- --- --- -- -------- -------- ---------- Deductions from assets attributed to: Benefits paid to participants -- -- -- -- 57,130 -- 1,386,619 Administrative expenses -- -- -- -- -- -- 3,373 Loans to participants -- -- -- -- (181,692) -- -- -- --- --- -- -------- -------- ---------- Total deductions -- -- -- -- (124,562) -- 1,389,992 -- --- --- -- -------- -------- ---------- Interfund transfers -- -- -- -- -- -- -- -- --- --- -- -------- -------- ---------- Net change 50 136 800 73 528 (14,826) 5,006,825 Net assets available at beginning of year -- -- -- -- 314,014 -- 20,069,861 -- --- --- -- -------- -------- ---------- Net assets available at end of year 50 136 800 73 314,542 (14,826) 25,076,686 == === === == ======== ======== ==========
AMERICAN SOFTWARE, INC. 401(K) PROFIT SHARING PLAN Schedule 27(a) - Schedule of Assets Held for Investment Purposes December 31, 1998
Description of Current Identity of issuer investment Cost value - -------------------------------------- -------------------- ------------ ----------- Common stock: *American Software, Inc. CLA 34,075 shares $ 187,413 72,409 ----------- ---------- Mutual funds: *Fidelity Fund 134,763.685 units 3,465,654 4,944,480 *Fidelity Magellan 43,908.908 units 3,853,947 5,305,083 *Fidelity Intermediate Bond 158,320.098 units 1,615,051 1,625,947 *Fidelity OTC Portfolio 63,198.083 units 2,085,865 2,757,332 *Fidelity Overseas 20,511.552 units 645,581 738,006 *Fidelity Capital Appreciation 82,880.499 units 1,501,527 1,829,173 *Fidelity Blue Chip Growth 180,696.999 units 6,291,911 9,105,322 *Fidelity Asset Manager Portfolio 62,602.583 units 1,030,682 1,088,659 *Fidelity International Bond 27,939.510 units 269,415 254,528 *Fidelity Retirement Government Money Market 3,503,889.860 units 3,503,890 3,503,890 *Fidelity Real Estate Investment Trust 7877.576 units 147,633 122,417 *Fidelity Contrafund 3757.066 units 199,382 213,364 *Fidelity Small Capital Stock 8038.956 units 119,967 114,073 *Fidelity Europe Capital Appreciation 3345.104 units 59,700 59,744 *Fidelity Latin American 3007.838 units 34,197 31,191 *Fidelity Southeast Asia 1334.763 units 11,037 11,465 *Fidelity Balanced 2083.612 units 33,185 34,087 Morgan Stanley Emerging Market Portfolio 1356.689 units 14,477 12,969 *Fidelity Japan 4894.45 units 55,634 55,307 Invesco High Yield 30,919.258 units 223,133 199,120 ----------- ---------- Total mutual funds 25,161,868 32,006,157 ----------- ---------- Loans to participants: American Software Loan Fund Interest rates ranging from 9.75% to 10.00% 377,827 377,827 ----------- ---------- Total investments $25,727,108 32,456,393 =========== ========== *Party-in-interest to the Plan. See accompanying independent auditors' report.
11 AMERICAN SOFTWARE, INC. 401(K) PROFIT SHARING PLAN Schedule 27(d) - Schedule of Reportable Transactions Year ended December 31, 1998
Current value Expense of asset on Identity of Purchase Selling incurred with Cost of transaction Net gain party involved Description of asset Price Price transaction asset date or (loss) - -------------- -------------------- --------- -------- ------------- ------- ------------- ---------- Category (iii) - Series of transactions in excess of 5% of plan assets. Purchases: Fidelity Fidelity Fund $1,523,099 N/A -- 1,523,099 1,523,099 N/A Fidelity Blue Chip Growth Fund 2,148,540 N/A -- 2,148,540 2,148,540 N/A Fidelity Retirement Government Money Market Fund 2,923,747 N/A -- 2,923,747 2,923,747 N/A Fidelity Magellan Fund 1,108,905 N/A -- 1,108,905 1,108,905 N/A Fidelity OTC Portfolio 957,748 N/A -- 957,748 957,748 N/A Fidelity Intermediate Bond 1,705,918 N/A -- 1,705,918 1,705,918 N/A Sales: Fidelity Retirement Government Money Market Fund N/A 2,432,860 -- 2,432,860 2,432,860 -- Fidelity Fidelity Fund N/A 1,334,117 -- 1,097,666 1,334,117 236,451 Fidelity Magellan Fund N/A 720,320 -- 597,741 720,320 122,579 Fidelity OTC Portfolio N/A 1,172,159 -- 1,084,175 1,172,159 87,984 Fidelity Blue Chip Growth Fund N/A 1,013,227 -- 817,967 1,013,227 195,260 Fidelity Intermediate Bond N/A 1,485,211 -- 1,483,169 1,485,211 2,042
See accompanying independent auditors' report. 12 -----END PRIVACY-ENHANCED MESSAGE-----