AUGUSTA STATE UNIVERSITY
AUGUSTA, GEORGIA
INDEPENDENT ACCOUNTANT'S
REPORT ON APPLYING AGREED-
UPON PROCEDURES
FOR FISCAL YEAR ENDED
JUNE 30,2011
Georgia Department of
Audits and Acmmatr 1 Russell W.Hinton I
State -~a&tay

AUGUSTA STATE UNIVERSITY -TABLE OF CONTENTS -

INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES
EXHl BITS
A SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT
B STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE
C STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE

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R r r s s ~ ~WL. HINTON
STATE AUDITOR
(404)666-2174

DEPARTMENOTF AUDITSAND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
November 1.2011

Members of the State Board of Regents of the University System of Georgia
and Honorable William A. Bloodworth, President Augusta State University
lndeaendent Accountant's Report on ApplyingAgreed-U~onProcedures
Ladies and Gentlemen:
We have performed the procedures enumerated below, which were agreed to by the University and the University System Office (Oversight Unit) of the Board of Regents of the University System of Georgia, solely to assist you in assessing the accuracy of the financial information reported to the University System Office in the University's 2011 Annual Financial Report for inclusion in the University System of Georgia's Annual Financial Report, the State of Georgia's ComprehensiveAnnual Financial Report (CAFR) and Single Audit Repoe and to assist you in assessing the accuracy of the budget basis information provided in the Summary Budget Comparison and Surplus Analysis Report, Statement of Funds Available and Expenditores Compared to Budget By P q r a m and Funding Source, and the S&tement of Changes To Fund Balance By Program and Funding Sourcewhich are attached as Exhibits A, B and C, respectively. Augusta State University's management is responsible for the financial information reported to the University System Office in the University'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 selected balance sheet items reported on the Annual Financial Report (cash, accounts receivable, accounts payable, deferred revenues, net assets). Confirm that these items have adequate supporting documentation and are properly reconciled to the University's general ledger.
We did not note any exceptions as a result of our procedures.
2. Obtain the University's GAAP basis Statement of Net Assets and Statement of Revenues Expenses and Changes in Net Assets (SRECNA) submitted for inclusion in the State's CAFR and Single Audit Utilizing test scripts, confirm that financial information presented in these statements properly supports activity reported in the University'saccounting records.
We did not note any exceptions as a result of our procedures.

3. Obtain the University'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 University'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, LongTerm Debt, Lease Obligations and Retirement Plans have been properly reported.
The Deposits and Investments note disclosure was not properly reported. Note 2 of the AFR reported June 30, 2011, ending bank balances as $4,770,509; however, ending bank balances as shown on the June 30, 2011, bank statements was $4,520,509, resulting in an improper variance of $250,000 in the financial statement disclosure.
Additionally, the amount reported as uninsured was $4,520,509; however, the actual uninsured amount was $4,270,509, resulting in an improper variance of $250,000 in the financial statement disclosure.
Both of these errors were corrected.
5. Review the University's year end GAAP basis journal entries. Obtain documentation for GAAP journal entries and confirm that the entries were posted to the University's Annual Financial Report.
We did not note any exceptions as a result of our procedures.
6. Confirm that State Appropriation revenues, receivables and remittances of prior year surplus balances have been properly recorded in the University's financial records. Prior year surplus balances should be netted against State Appropriation revenues in the GAAP basis financial statements; however, prior year surplus balances should be reflected as fund balance adjustments on the Budget basis financial statements.
We did not note any exceptions as a result of our procedures.
7. Obtain listing of write-off requests for accounts receivable less than $3,000.00 for fiscal year 2011. Confirm that these write-off requests have been approved by the State Accounting Officer and have been posted to the University's financial statements.
We did not note any exceptions as a result of our procedures.
8. 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 University's financial statements.
We did not note any exceptions as a result of our procedures.

9. Review year end Budgetary Statements including the Summary Budget Cbmparison and Surplus Analysis Report ((Exhibit A), Statement of Funds A vailable and Expenditures Cbmpared to Budget By Program and Funding Source (Exhibit B) and the Statement of Changes To Fund Balance By Program and Funding Source (Exhibit C). Confirm that budget information presented in these statements supports activity reported in the University's accounting records and determine if any budget overexpenditures exist.
We did not note any exceptions as a result of our procedures.
10. Obtain documentation for Budget basis reserves reported by University on the Summary Budget Comparison and Surplus Analysis Report (Exhibit A). Confirm that the reserves are properly documented, valid and appropriate.
We did not note any exceptions as a result of our procedures.
11. Review the H.O.P.E. Scholarship Program reconciliation between the University 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 University's financial records.
We did not note any exceptions as a result of our procedures.
12. Review the Schedule of Expenditures of Federal Awards information submitted by the University for inclusion in the Statewide Single Audit. Confirm that the information is properly presented and supported by the University'saccounting records.
We did not note any exceptions as a result of our procedures.
13. 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 annual 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.
14. 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.
15. Review documentation to ensure that all subsidiary modules including BANNER are reconciled to the general ledger at least quarterly in accordance with the Business Procedures Manual Section 10.6.2. and ensure that reconciling items are adequately explained and resolved in a timely 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 subrnitted,
~ u s & l lW. Hinton, CPA, CGFM State Auditor

EXHIBITS

AUGUSTA STATE UNlVERSlN SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT
YEAR ENDED JUNE 3 0 , 2 0 1 1

REVENUES
State Appropriation State General Funds
Federal Funds Other Funds
Total Revenues
ADJUSTMENTS AND PROGRAM TRANSFERS
CARRY-OVER FROM PRIOR YEARS
Transfers from Reserved Fund Balance
Total Funds Available
EXPENDITURES
Teach~ng Excess of Funds Available over Expenditures
FUND BALANCE JULY 1
Reserved
ADJUSTMENTS
Prior Year Payables/Expenditures Prlor Year Receivables/Revenues Early Return of Surplus in Current Fiscal Year Prior Year Reserved Fund Balance Included in Funds Available FUND BALANCE JUNE 3 0
SUMMARY OF FUND BALANCE
Reserved Department Sales and Services Indirect Cost Recoveries Technology Fees Restricted/Sponsored Funds UncollectlbleAccounts Receivable Tuition Carry-Over Inventories
Total Reserved
Unreserved Surplus
Total Fund Balance

BUDGET

ACTUAL

EXHIBIT "A"
VARIANCE -
FAVORABLE (UNFAVORABLE)

AUGUSTA STATE UNIVERSITY STATEMENT OF FUNDS AVAILABLE AND EXPENDITURESCOMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE
YEAR ENDED JUNE 3 0 . 2 0 1 1

Teaching State Appropriation State General Funds Federal Funds Amerlcan Recovery and Reinvestment Act Federal Stabilization Funds Other Funds
Total Teaching

Original Appropriation

Amended Appropriatton

Final Budget

Current Year Revenues

EXHIBIT "B"

Funds Available Compared to Budget

Pr~oYr ear

Adjustments and

Total

Carry-Over

Program Transfers Funds Ava~lable

Variance Positive (Negative)

Expend~turesCompared to Budget

Vanance

Actual

Positlve (Negative)

Excess (Deficiency) of Funds Available
Over/(Under) Expenditures

AUGUSTA STATE UNIVERSITY STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE
YEAR ENDED JUNE 30.2011

Teachlng State Appropriation State General Funds Federal Funds American Recovery and ReinvestmentAct Federal Stablllrat~onFunds Other Funds
Total Teachlng
Total Operating Actlvlw
Prior Year R e s e ~ e S Not Ava~lablefor Expenditure lnventorles Uncollectible Accounts Receivable

Beglnnlng Fund Balance/(Deflclt)
July 1

Fund Balance Carr~edOver from
Pnor Penod as Funds Ava~lable

Return of F~scaYl ear 2010
Surplus

Pr~oPr erlod ~djustments

Budget Unit Totals

otller Adjustments

Early Return Ftscal Year 2 0 1 1
Surplus

Excess (Defic~ency) of Funds Ava~lable
Over/(Under) Expenditures

Ending Fund Ealance/(Defic~t)
June 3 0

Analys~sof Endlng Fund Balance

Reserved

Surplus/(Deficit)

Total

Summary of Ending Fund Balance Reserved
Department Sales and Services Indirect Cost Recoveries Technology Fees Restricted/Sponsored Funds Uncollecttble Accounts Receivable Tuition Carry-Over Inventories Unrese~ed Surplus
Total End~ngFund Balance - June 3 0