GEORGIA MILITARY COLLEGE MILLEDGEVILLE, GEORGIA INDEPENDENT ACCOUNTANTS REPORT ON APPLYING AGREED-UPON PROCEDURES FOR FISCAL YEAR ENDED JUNE 30, 2019 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 Page 2 3 4 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 Independent Accountant's Report on Applying Agreed-Upon Procedures Members of the Board of Trustees of the Georgia Military College and Lieutenant General William B. Caldwell, IV, President Georgia Military College 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 2019 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, 2019. 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. Inspect 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. Inspect 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. Confirm 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. Inspect 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. Inspect 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. Inspect 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. Inspect 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, April 24, 2020 Greg S. Griffin State Auditor EXHIBITS GEORGIA MILITARY COLLEGE STATEMENT OF NET POSITION - (GAAP BASIS) JUNE 30, 2019 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 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 - 2 - EXHIBIT "A" $ 14,223,498.25 17,730.31 6,296,881.45 4,376.29 2,254,480.21 22,796,966.51 77,041,992.04 99,838,958.55 10,371,590.56 6,497,383.00 16,868,973.56 2,921,881.35 915,129.32 3,715,484.39 577,810.00 236,053.61 8,366,358.67 34,822,148.00 27,234,179.00 2,142,641.01 64,198,968.01 72,565,326.68 2,138,641.00 5,246,548.00 7,385,189.00 74,663,297.42 (37,905,880.99) $ 36,757,416.43 GEORGIA MILITARY COLLEGE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - (GAAP BASIS) YEAR ENDED JUNE 30, 2019 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 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) Other Nonoperating Revenues Net Nonoperating Revenues Increase in Net Position Net Position - Beginning of Year $ 60,455,921.55 (31,649,621.49) 4,135,638.38 25,018,186.74 219,476.43 662,585.00 4,957,607.21 1,677,716.95 270,023.70 8,250.00 796,825.79 66,552,610.26 15,640,627.23 17,897,150.86 11,909,142.64 283,658.95 8,303,781.01 2,089,072.18 21,767,923.11 3,844,371.13 81,735,727.11 (15,183,116.85) 15,892,509.06 351,918.17 761,216.89 (96,336.51) 933,820.67 17,843,128.28 2,660,011.43 34,097,405.00 Net Position - End of Year $ 36,757,416.43 - 3 - GEORGIA MILITARY COLLEGE STATEMENT OF CASH FLOWS - (GAAP BASIS) YEAR ENDED JUNE 30, 2019 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 Other Nonoperating Receipts Net Cash Flows Provided by Noncapital Financing Activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES 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 increase 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 - 4 - EXHIBIT "C" $ 28,207,259.28 28,436,820.18 7,576,182.86 (34,560,108.09) (33,475,271.05) (8,303,781.01) 1,694,334.81 (10,424,563.02) (105,007.80) 16,244,427.23 933,820.67 17,073,240.10 (3,313,623.69) (201,670.07) (96,336.51) (3,611,630.27) 761,216.89 3,798,263.70 10,425,234.55 $ 14,223,498.25 $ (15,183,116.85) 3,844,371.13 (787,358.32) (153,037.19) 1,609.53 56,245.48 1,296,966.41 149,345.19 (7,099.03) 17,859.00 198,401.00 2,954,509.00 (2,813,258.37) $ (10,424,563.02)