Georgia Military College, Milledgeville, Georgia, independent accountant's report on applying agreed-upon procedures for fiscal year ended 2018 June 30

GEORGIA MILITARY COLLEGE
MILLEDGEVILLE, GEORGIA
INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES FOR FISCAL YEAR ENDED JUNE 30, 2018

GEORGIA MILITARY COLLEGE - TABLE OF CONTENTS -
INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES EXHIBITS
A STATEMENT OF NET POSITION B STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION C STATEMENT OF CASH FLOWS

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2 3 4

EXHIBITS

GREG S. GRIFFIN
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
April 25, 2019

Members of the General Assembly of Georgia Members of the Board of Trustees of the Georgia Military College
and Lieutenant General William B. Caldwell, IV, President Georgia Military College
Independent Accountant's Report on Applying Agreed-Upon Procedures
Ladies and Gentlemen:
We have performed the procedures enumerated below, which were agreed to by the Georgia Military College (College), solely to assist you in assessing the accuracy of the financial information reported in the College's 2018 Annual Financial Report for inclusion in the State of Georgia's Comprehensive Annual Financial Report (CAFR) and Single Audit Report pursuant to the Single Audit Act Amendments, as of and for the year ended June 30, 2018. Georgia Military College's management is responsible for the financial information reported in the College's Annual Financial Report. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of the parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose.
The procedures and the associated findings are as follows:
1. Review all balance sheet items reported on the Annual Financial Report. Confirm that these items have adequate supporting documentation and are properly reconciled to the College's general ledger.
We did not note any exceptions as a result of our procedures.
2. Obtain the College's GAAP basis Statement of Net Position and Statement of Revenues Expenses and Changes in Net Position (SRECNP) submitted for inclusion in the State's CAFR and Single Audit. Confirm that financial information presented in these statements properly supports activity reported in the College's accounting records.
We did not note any exceptions as a result of our procedures.
3. Obtain the College's Statement of Cash Flows submitted for inclusion in the State's CAFR and Single Audit. Utilizing cash flow worksheets, confirm information reported on Statement of Cash Flows.
We did not note any exceptions as a result of our procedures.

4. Obtain the College's Notes to the Financial Statements submitted for inclusion in the State's CAFR and Single Audit. Utilizing notes worksheets and other supporting documentation confirm that note disclosures related to Cash, Investments, Accounts Receivable, Capital Assets, Long-Term Debt, Lease Obligations, Retirement Plans, and OPEB Plan have been properly reported.
We did not note any exceptions as a result of our procedures.
5. Review the College's year end GAAP basis journal entries. Obtain documentation for GAAP journal entries and confirm that the entries were posted to the College's Annual Financial Report.
We did not note any exceptions as a result of our procedures.
6. Verify that the listing of salaries and travel reported to the Department of Audits is in accordance with O.C.G.A. 50-6-27 and reconciles to amounts recorded in the College's financial statements.
We did not note any exceptions as a result of our procedures.
7. Review the H.O.P.E. Scholarship Program reconciliation between the College and the Georgia Student Finance Commission. Confirm that information reported to the Georgia Student Finance Commission has been reconciled with H.O.P.E. Scholarship activity reported on the College's financial records.
We did not note any exceptions as a result of our procedures.
8. Review the Schedule of Expenditures of Federal Awards information submitted by the College for inclusion in the Statewide Single Audit. Confirm that the information is properly presented and supported by the College's accounting records.
We did not note any exceptions as a result of our procedures.
9. Review capital asset records to ensure that (1) subsidiary ledgers are appropriately reconciled to the ledgers, (2) capitalization thresholds are being properly followed, and (3) a complete physical equipment inventory is being conducted and that issues noted during the physical inventory are being properly addressed by management.
We did not note any exceptions as a result of our procedures.
10. Review bank reconciliations during the year under review to ensure that management is preparing them timely and that reconciling items are being addressed by management timely and in an appropriate manner.
We did not note any exceptions as a result of our procedures.
These agreed-upon procedures do not constitute an audit of the financial statements or any part thereof, the objective of which is to express an opinion on the financial statements or a part thereof. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.
This report is intended solely for the information and use of the specified users listed above and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully,
Greg S. Griffin State Auditor

GEORGIA MILITARY COLLEGE STATEMENT OF NET POSITION - (GAAP BASIS)
JUNE 30, 2018
ASSETS
Current Assets Cash and Cash Equivalents Accounts Receivable, Net Federal Financial Assistance Other Prepaid Items Inventories
Total Current Assets
Noncurrent Assets Capital Assets, Net
Total Assets
DEFERRED OUTFLOWS OF RESOURCES
Related to Defined Benefit Pension Plans Related to OPEB Plan
Total Deferred Outflows of Resources
LIABILITIES
Current Liabilities Accounts Payable Salaries Payable Unearned Revenue Funds Held for Others Capital Leases Compensated Absences Notes Payable
Total Current Liabilities
Noncurrent Liabilities Net Pension Liability Net OPEB Liability Notes Payable
Total Noncurrent Liabilities
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Related to Defined Benefit Pension Plans Related to OPEB Plan
Total Deferred Inflows of Resources
NET POSITION
Net Investment in Capital Assets Unrestricted (Deficit)
Total Net Position
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EXHIBIT "A"
$ 10,425,234.55 4,475.45
5,522,777.99 5,985.82
2,101,443.02 18,059,916.83
77,572,739.48 95,632,656.31
9,954,634.19 4,101,081.00 14,055,715.19
1,624,914.94 858,883.84
3,566,139.20 105,007.80 1,932.40 584,909.03 217,895.64
6,959,682.85
34,804,289.00 27,035,778.00
2,360,536.65 64,200,603.65 71,160,286.50
2,358,946.00 2,071,734.00 4,430,680.00
74,992,374.82 (40,894,969.82)
$ 34,097,405.00

GEORGIA MILITARY COLLEGE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - (GAAP BASIS)
YEAR ENDED JUNE 30, 2018

EXHIBIT "B"

OPERATING REVENUES
Student Tuition and Fees Less: Scholarship Allowances
Grants and Contracts Federal State Nongovernmental
Auxiliary Enterprises Housing Bookstore Food Services Athletics
Other Operating Revenues
Total Operating Revenues
OPERATING EXPENSES
Salaries Faculty Staff
Employee Benefits Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses
Operating Loss
NONOPERATING REVENUES (EXPENSES)
Grants and Contracts Federal
Gifts Interest and Other Investment Income Interest Expense (Capital Assets)
Net Nonoperating Revenues
Income Before Other Revenues, Expenses, Gains, or Losses
Capital Grants and Gifts State
Increase in Net Position
Net Position - Beginning of Year - Restated

$ 56,796,393.34 (28,334,966.70)
4,397,037.64 20,908,698.31
341,109.00
829,846.89 4,661,848.93 2,090,975.21
313,852.11 1,054,441.41
63,059,236.14
14,930,233.87 17,324,525.47 12,036,802.15
297,456.72 8,764,664.89 2,092,059.95 21,588,955.39 3,517,496.88
80,552,195.32
(17,492,959.18)
16,039,455.64 348,671.66 587,043.28 (1,835.52)
16,973,335.06
(519,624.12)
2,605,000.00
2,085,375.88
32,012,029.12

Net Position - End of Year

$ 34,097,405.00

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GEORGIA MILITARY COLLEGE STATEMENT OF CASH FLOWS - (GAAP BASIS)
YEAR ENDED JUNE 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES Tuition and Fees Grants and Contracts Sales and Services of Educational Departments Payments to Suppliers Payments to Employees Payments for Scholarships and Fellowships Other Receipts (Payments)
Net Cash Used by Operating Activities
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Agency Funds Transactions Gifts and Grants Received for Other than Capital Purposes
Net Cash Flows Provided by Noncapital Financing Activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from Sale of Capital Assets Purchases of Capital Assets Principal Paid on Capital Debt and Leases Interest Paid on Capital Debt and Leases
Net Cash Used by Capital and Related Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES Earnings on Investments
Net decrease in Cash and Cash Equivalents
Cash and Cash Equivalents - Beginning of Year
Cash and Cash Equivalents - End of Year
RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating Loss Adjustments to Reconcile Operating Income to Net Cash
Used by Operating Activities Depreciation Expense Change in Assets and Liabilities: Accounts Receivable, Net Inventories Prepaid Items Salaries Payable Accounts Payable Unearned Revenue Compensated Absences Net Pension Liability Net OPEB Liability Change in Deferred Inflows/Outflows of Resources: Deferred Inflows of Resources Deferred Outflows of Resources
Net Cash Used by Operating Activities
NONCASH ACTIVITY Gift of Capital Assets Reducing Proceeds of Capital Grants and Gifts
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EXHIBIT "C"
$ 28,744,606.56 25,584,746.04 7,896,523.14 (34,464,824.11) (32,135,128.92) (8,764,664.89) 720,426.39 (12,418,315.79)
(21,768.52) 16,388,127.30 16,366,358.78
114,681.86 (6,511,517.89)
(230,290.72) (1,835.52)
(6,628,962.27)
587,043.28 (2,093,876.00) 12,519,110.55
$ 10,425,234.55
$ (17,492,959.18)
3,517,496.88 (621,274.87) (188,201.79) 261.87 91,681.50 221,585.53 508,340.86 2,390.91
(2,845,682.00) 2,017,104.00 1,349,901.00 1,021,039.50
$ (12,418,315.79)
$ 2,605,000.00