Bainbridge College, Bainbridge, Georgia, management report for fiscal year ended June 30, 2010

COLLEGE

I BAINBRIDGE, GEORGIA
I MANAGEMENT REPORT

I

FOR FISCAL YEAR ENDED JUNE 30,2010

I A Member Institution of the
University System of Georgia

. -,L Y ,

Georgia Department of Audits amdl Accounts

Russ?etalml We,.JH&int& 99

- - L.

I .-

BAlNBRlDGE COLLEGE - TABLE OF CONTENTS -
SECTION I FINANCIAL LETTER OF TRANSMITTAL SELECTED FINANCIAL INFORMATION EXHIBITS A STATEMENT OF NET ASSETS - (GAAP BASIS) B STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS (GAAP BASIS) C STATEMENT OF CASH FLOWS - (GAAP BASIS) D SELECTED FINANCIAL NOTES SUPPLEMENTARY INFORMATION SCHEDULES
1 BALANCESHEET-(STATUT0RYBASIS)BUDGETFUND 2 SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT
(STATUTORY BASIS) BUDGET FUND 3 STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING
SOURCE COMPARED TO BUDGET (STATUTORY BASIS) BUDGET FUND
4 RECONCILIATION OF SALARIES AND TRAVEL
SECTION II ENTITY'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTION Ill FINDINGS, QUESTIONED COSTS AND OTHER ITEMS SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS

SECTION I FINANCIAL

Russell W. Hinton
STATE AUDITOR
(400) 6 5 6 4 7 4

DEPARTMENOTF AUDITSAND ACCOUNTS
270 Washington Street, S.W., Suite 1-1 56 Atlanta, Georgia 30334-8400
September 9,2010

Honorable Sonny Perdue, Governor Members of the General Assembly of Georgia Members of the State Board of Regents of the University System of Georgia
and Honorable Thomas Wilkerson, President Bainbridge College
Ladies and Gentlemen:
As part of our audits of the basic financial statements of the University System of Georgia presented in the Annual Financial Reportfor the University System of Georgia, the basic financial statements of the State of Georgia presented in the State of Georgia ComprehensiveAnnual Financial Repodand the issuance of a State of Georgia Single Audit Reportpursuant to the Single Audit Act Amendments, as of and for the year ended June 30, 2010, we have performed certain audit procedures at Bainbridge College. Accordingly, the financial statements and compliance activities of Bainbridge College were examined to the extent considered necessary in order to express an opinion as to the fair presentation of the financial statements contained in the foregoing documents and to issue reports on compliance and internal control as required by the Single Audit Act Amendments of 1996.
This Management Report contains information pertinent to the financial and compliance activities of Bainbridge College as of and for the year ended June 30, 2010. Information contained in this report is a by-product of our audits of the basic financial statements of the University System of Georgia and the basic financial statements of the State of Georgia and is the representation of management. Accordingly, we do not express an opinion or any other form of assurance on it. The particular information provided which includes a section on findings and other items reported in accordance with Commission on Colleges regulation 2.11.1 is enumerated in the Table of Contents.
This report is intended solely for the information and use of the management of Bainbridge College, members of the Board of Regents of the University System of Georgia and the Southern Association of Colleges and Schools - Commission on Colleges and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

~ u & e l lW. Hinton, CPA, CGFM State Auditor

SELECTED FINANCIAL INFORMATION

BAlNBRlDGE COLLEGE STATEMENT OF NET ASSETS - (GAAP BASIS)
JUNE 30,2010
ASSETS
Current Assets Cash and Cash Equivalents Accounts Receivable, Net (Note 3) Federal Financial Assistance Other Prepaid Items
Total Current Assets
Noncurrent Assets Investments Capital Assets, Net (Note 4)
Total Noncurrent Assets
Total Assets
LIABILITIES
Current Liabilities Accounts Payable Salaries Payable Contracts Payable Deferred Revenue (Note 5) Deposits Held for Other Organizations Compensated Absences
Total Current Liabilities
Noncurrent Liabilities Compensated Absences
Total Liabilities
NET ASSETS
Invested in Capital Assets, Net of Related Debt Restricted for:
Nonexpendable Expendable Unrestricted
Total Net Assets

EXHIBIT " A

BAlNBRlDGE COLLEGE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - (GAAP BASIS)
YEAR ENDEDJUNE 30,2010
OPERATING REVENUES
Student Tuition and Fees Less: Scholarship Allowances
Grants and Contracts Federal State Other
Sales and Services of Educational Departments Auxiliary Enterprises
Bookstore Food Services Parking/Transportation Other Organizations Other Operating Revenues
Total Operating Revenues
OPERATING EXPENSES
Salaries Faculty Staff
Employee Benefits Other Personal Setvices Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses
Operating Income (Loss)
NONOPERATING REVENUES (EXPENSES1
State Appropriations Federal Stimulus -Stabilization Funds Grants and Contracts
Federal Interest and Other Investment Income Other Nonoperating Revenues
Net Nonoperating Revenues
Income (Loss) Before Other Revenues, Expenses, Gains, or Losses
Capital Grants and Gifts State
Increase(Decrease) in Net Assets
Net Assets - Beginningof Year
Net Assets - End of Year

EXHIBIT "8"

BAlNBRlDGE COLLEGE
STATEMENT OF CASH FLOWS - (GAAP BASIS)
YEAR ENDED JUNE 30, 2010
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 Fellowsh~ps Auxiliary Enterprise Charges: Bookstore Food Services Parking/Transponation Other Organizations Other Receipts
Net Cash Provided (Used) by OperatingActivities
CASH FLOWS FROM NONCAPITAL FINANCINGACTIVITIES State Appropriations
Federal Stimulus - Stabilization Funds
Agency Funds Transactions Gifts and Grants Received for Other than Capital Purposes
Net Cash Flows Provided (Used) by Noncapital Financing Activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCINGACTIVITIES Capital Grants and Gifts Received Purchases of Capital Assets
Net Cash Provided (Used) by Capital and Related FinancingActivities
CASH FLOWS FROM INVESTING ACTIVITIES lnterest on Investments
Net Increase (Decrease) in Cash
- Cash and Cash Equivalents Beginningof Year
Cash and Cash Equivalents - End of Year
RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating Income (Loss) Adjustments to Reconcile Operating Income to Net Cash
Provided (Used) by Operating Activities Depreciation Change in Assets and Liabilities: Accounts Receivable. Net Prepaid Items Accounts Payable Deferred Revenue Other Liabilit~es Compensated Absences
Net Cash Provided (Used) by OperatingActivities
NONCASH ACTlVllY Change in Fair Value of Investments Recognized as a Component of lnterest Income

EXHIBIT "C"

BAINBRIDGE COLLEGE SELECTED FINANCIAL NOTES
JUNE 30,2010

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Bainbridge College is one of thirty-five (35) State supported member institutions of higher education in Georgia which comprise the University System of Georgia, an organizational unit of the State of Georgia. The accompanying financial statements reflect the operations of Bainbridge College as a separate reporting entity.
The Board of Regents has constitutional authority to govern, control and manage the University System of Georgia. This authority includes but is not limited to the power to designate management, the ability to significantly influence operations, the authority to control institutions' budgets, the power to determine allotments of State funds to member institutions and the authority to prescribe accounting systems and administrative policies for member institutions. Bainbridge College does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, Bainbridge College is considered an organizational unit of the Board of Regents of the University System of Georgia reporting entity for financial reporting purposes because of the significance of its legal, operational, and financial relationships with the Board of Regents as defined in Section 2100 of the Governmental Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial Re~ortinfS?tandards.
NET ASSETS The College's net assets are classified as follows:
Investedin capitalassets, net of relateddebt: This represents the College's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt.
Restricted net assets - nonexpendable: Nonexpendable restricted net assets consist of endowment and similar type funds in which donors or other outside sources have stipulated, as a condition of the gift instrument, that the principal is to be maintained inviolate and in perpetuity, and invested for the purpose of producing present and future income, which may either be expended or added to principal. The College may accumulate as much of the annual net income of an institutional fund as is prudent under the standard established by Code Section 44-15-7 of Annotated Code of Georgia.
Restrict& net asset3 - expendable: Restricted expendable net assets include resources in which the College is legally or contractually obligated to spend resources in accordance with restrictions imposed by external third parties.

BAINBRIDGE COLLEGE SELECTED FINANCIAL NOTES
JUNE 30,2010

EXHIBTT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NET ASSETS Unrestricted net assets: Unrestricted net assets represent resources derived from student tuition and fees, state appropriations, and sales and services of educational departments and auxiliary enterprises. These resources are used for transactions relating to the educational and general operations of the College and may be used at the discretion of the governing board to meet current expenses for those purposes, except for unexpended state appropriations (surplus) of $48,373.17. Unexpended state appropriations must be refunded to the Board of Regents of the UniversitySystem of Georgia, University System Office for remittance to the Office of Treasury and Fiscal Services. These resources also include auxiliary enterprises, which are substantially self-supporting activities that provide services for students, faculty and staff.
NOTE 2: DEPOSITS AND INVESTMENTS
DEPOSITS The custodial credit risk for deposits is the risk that in the event of a bank failure, the College's deposits may not be recovered. Funds belonging to the State of Georgia (and thus the College) cannot be placed in a depository paying interest longer than ten days without the depository providinga surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral any one or more of the following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59:
1. Bonds, bills, notes, certificates of indebtedness, or other direct obligations of the United States or of the State of Georgia.
2. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or
municipalities of the State of Georgia.
3. Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose.
4. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia.
5. Bonds, bills, certificates of indebtedness, notes or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association and the Federal National MortgageAssociation.
6. Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation.

BAINBRIDGE COLLEGE SELECTED FINANCIAL NOTES
JUNE 30,2010

EXHIBIT "D"

NOTE 2: DEPOSITS AND INVESTMENTS
DEPOSITS The Treasurer of the Board of Regents is responsible for all details relative to furnishing the required depository protection for all units of the University System of Georgia.
At June 30, 2010, the carrying value of deposits was $2,341,633 and the bank balance was $3,899,528.
lNVESTMENTS At June 30, 2010, the carrying value of the College's investment was $602,605, which is materially the same as fair value. These investments were comprised entirely of funds invested in the Board of Regents investment pools as follows:
lnvestment Pool
Board of Regents Balanced Income Fund
The Board of Regents lnvestment Pool is not registered with the Securities and Exchange Commission as an investment company. The fair value of investments is determined daily. The pool does not issue shares. Each participant is allocated a pro rata share of each investment at fair value along with a pro rata share of the interest that it earns. Participation in the Board of Regents lnvestment Pool is voluntary.
NOTE 3: ACCOUNTS RECEIVABLE
Accounts receivable consisted of the following at June 30, 2010.
Student Tuition and Fees Auxiliary Enterprisesand Other Operating Activities Other

Less Allowance for Doubtful Accounts

Net Accounts Receivable

$ 7.768.925

NOTE 4: CAPITAL ASSETS

Followingare the changes in the College's capital assets for the year ended June 30, 2010:

BAINBRIDGE COLLEGE SELECTED FINANCIAL NOTES
JUNE 30, 2010

EXHIBIT "D"

NOTE 4: CAPITAL ASSETS

Beginning Balance July 1.2009

Additions

Reductions

Ending Balance June 30,2010

Capital Assets, Not Being Depreciated: Land Construction Work-In-Progress

$

450,631 $

120,600

Total Capital Assets, Not Being Depreciated $

1,034,053$

3,114,078$

1,538,482 $

2,609,649

Capital Assets, Being Depreciated: Building and Building Improvements Facilitiesand Other Improvements Equipment Library Collections

$

29,053,744$

829.499

2,186,441

862,193

2.102.483
165.799 46,034 $

$
3,956

31,156,227 829,499
2,352,240 904,271

Total Assets Being Depreciated

$

32.931.877 $

2,314,316 $

3,956 $

35,242,237

Less: Accumulated Depreciation: Building and Building Improvements Facilities and Other Improvements Equipment Library Collections

$

5,067,879 $

324,945

539,023 $ 35,688

8,458 $

5,598,444 360,633

Total Accumulated Depreciation

$

7,419.078 $

784,927 $

12.414 $

8,191,591

Total Capital Assets, Being Depreciated, Net

$

25,512.799 $

1,529,389$

-8,458$

27,050,646

Capital Assets, Net

NOTE 5: DEFERRED REVENUE

Deferred revenue consisted of the following a t June 30, 2010.

Prepaid Tuition and Fees

$ 2.592.503

NOTE 6: LONG-TERM LIABILITIES

The College's Long-Term liability activity for the year ended June 30, 2 0 1 0 was as follows:

Other Liabilities Compensated Absences

Beginning Balance July 1.2009

Additions

Reductions

Ending Balance June 30.2010

Current Portion

$ 4 4 1 . 2 8 0 $5DEL838 $476.070$475.048$181.577

BAINBRIDGE COLLEGE SELECTED FINANCIAL NOTES
JUNE 30, 2010

EXHIBIT "D"

NOTE 7: NET ASSETS

Changes in Net Asset activity for the year ended June 30, 2010, are as follows:

Balance July 1,2009

Additions

Reductions

Balance June 30,2010

Invested in Capital Assets Net of Related Debt

$ 26,546,852 $ 4,643,467 $ 1,530,024 $

29,660,295

Restricted Net Assets

98,795 17,317,850 16,797,367

619,278

Unrestricted Net Assets Total Net Assets

NOTE 8: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Plan Description Bainbridge College participates in the Teachers Retirement System of Georgia (TRS), a cost-sharing multiple-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia. TRS provides service retirement, disability retirement, and survivor's benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the TRS offices or the Georgia Department of Audits and Accounts.

Funding Policy

Employees of Bainbridge College who are covered by TRS are required by State statute to contribute

5.25% of their gross earnings to TRS. Bainbridge College makes monthly employer contributions to

TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised

by their independent actuary. For fiscal year 2010, the employer contribution rate was 9.74% for

covered employees. Employer contributions for the current fiscal year and the preceding two fiscal

years are as follows:

Percentage

Required

Fiscal Year

Contributed

Contribution

BAINBRIDGE COLLEGE SELECTED FINANCIAL NOTES
JUNE 30,2010

EXHIBIT "D"

NOTE 8: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Plan Description Bainbridge College participates in the Employees' Retirement System of Georgia (ERS), a singleemployer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances for employees of the State of Georgia.
The ERS Board of Trustees created the Supplemental Retirement Benefit Plan (SRBP) effective January 1, 1998. The SRBP was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of ERS. The purpose of SRBP is to provide retirement benefits to employees covered by ERS whose benefits are otherwise limited by IRC 415.
The benefit structure of ERS is established by the Board of Trustees under statutory guidelines. Unless the employee elects otherwise, an employee who currently maintains membership with ERS based upon State employment that started prior to July 1,1982, is an "old plan" member subject to the plan provisions in effect prior to July 1,1982. Members hired on or after July 1,1982 but prior to January I, 2009 are "new plan" members subject to the modified plan provisions. Effective January 1,2009, newly hired State employees, as well as rehired State employees who did not maintain eligibility for the "old" or "new" plan, are members of the Georgia State Employees' Pension and Savings Plan (GSEPS). ERS members hired prior to January 1,2009 also have the option to change their membership to the GSEPS plan.
Under the old plan, new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 1 0 years of creditable service and attainment of age 6 0 or 3 0 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60.
Retirement benefits paid to members are based upon a formula adopted by the Board of Trustees for such purpose. The formula considers the monthly average of the member's highest 2 4 consecutive calendar months of salary, the number of years of creditable service, and the member's age at retirement. Post-retirement cost-of-living adjustments may be made to members' benefits provided the members were hired prior to July 1,2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS.

BAINBRIDGE COLLEGE SELECTED FINANCIAL NOTES
JUNE 30, 2010

EXHIBIT "D"

NOTE 8: RETIREMENT PLANS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Funding Policy
As established by State statute, all full-time employees of the State of Georgia and its political
subdivisions, who are not members of other state retirement systems, are eligible to participate in the ERS. Both employer and employee contributions are established by State statute. The College's payroll for the year ended June 30, 2010, for employees covered by ERS was $40,833. The College'stotal payroll for all employees was $9,141,42 1.
Member contribution rates are set by law. Member contributions under the old plan are 4% of annual compensation up to $4,200 plus 6% of annual compensation in excess of $4,200. Under the old plan, the College pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these College contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The College is required to contribute at a specified percentage of active member payroll established by the Board of Trustees determined annually in accordance with actuarial valuation and minimum funding standards as provided by law. These College contributions are not at any time refundable to the member or his/her beneficiary.
Employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

Actuarial and Trend Information Actuarial and historical trend information is presented in the ERS June 30, 2010 financial report, which may be obtained through ERS.
REGENTS RETIREMENT PLAN
Plan Description The Regents Retirement Plan, a single-employer defined contribution plan, is an optional retirement plan that was created/established by the Georgia General Assembly in O.C.G.A. 47-21-1 et. seq. and is administered by the Board of Regents of the University System of Georgia. O.C.G.A. 47-3-68(a) defines who may participate in the Regents Retirement Plan. An "eligible university system employee" is a faculty member or a principal administrator, as designated by the regulations of the Board of Regents. Under the Regents Retirement Plan, a plan participant may purchase annuity contracts from four approved vendors (AIG-VALIC, American Century, Fidelity, and TIAA-CREF) for the purpose of receiving retirement and death benefits. Benefits depend solely on amounts contributed to the plan plus investment earnings. Benefits are payable to participating employees or their beneficiaries in accordance with the terms of the annuity contracts.

BAINBRIDGE COLLEGE SELECTED FINANCIAL NOTES
JUNE 30,2010

EXHIBIT "D"

NOTE 8: RETIREMENT PLANS
REGENTS RETIREMENT PLAN
Funding Policy Bainbridge College makes monthly employer contributions for the Regents Retirement Plan at rates adopted by the Teachers Retirement System of Georgia Board of Trustees in accordance with State Statute and as advised by their independent actuary. For fiscal year 2010, the employer contribution was 9.24% for the participating employee's earnable compensation. Employees contribute 5%of their earnable compensation. Amounts attributable to all plan contributions are fully vested and nonfotfeitable at all times.
Bainbridge College and the covered employees made the required contributions of $164,112 (9.24%) and $88,523 (5%),respectively.
AIG-VALIC, American Century, Fidelity, and TIAA-CREF have separately issued financial reports which may be obtained through their respective corporate offices.
GEORGIA DEFINED CONTRIBUTION PLAN
Plan Description Bainbridge College participates in the Georgia Defined Contribution Plan (GDCP) which is a singleemployer defined contribution plan established by the General Assembly of Georgia for the purpose of providing retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees of the Employees' Retirement System of Georgia.
Benefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board of Trustees. If a member has less than $3,500.00 credited to his/her account, the Board of Trustees has the option of requiring a lump sum distribution to the member in lieu of making periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary. Benefit provisions are established by State statute.
Contributions and Vesting Member contributions are seven and one-half percent (7.5%) of gross salary. There are no employer contributions. Contribution rates are established by State statute. Earnings are credited to each member's account in a manner established by the Board of Trustees. Upon termination of employment, the amount of the member's account is refundable upon request by the member.
Total contributions made by employees during fiscal year 2010 amounted to $50,874 which represents 7.5% of covered payroll. These contributions met the requirements of the plan.
The Georgia Defined Contribution Plan issues a financial report each fiscal year, which may be obtained from the ERS offices.

BAINBRIDGE COLLEGE SELECTED FINANCIAL NOTES
JUNE 30,2010

EXHIBIT "D"

NOTE 9: CONTINGENCIES
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. This could result in refunds to the grantor agency for any expenditures which are disallowed under grant terms. The amount of expenditures which may be disallowed by the grantor cannot be determined at this time although Bainbridge College expects such amounts, if any, to be immaterial to its overall financial position.
Litigation, claims and assessments filed against Bainbridge College (an organizational unit of the Board of Regents of the University System of Georgia), if any, are generally considered to be actions against the State of Georgia. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30,2010.
NOTE 10: POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
Pursuant to the general powers conferred by the Official Code of Georgia Annotated Section 20-3-31, the Board of Regents of the University System of Georgia has established group health and life insurance programs for regular employees of the University System of Georgia. It is the policy of the Board of Regents to permit employees of the University System of Georgia eligible for retirement or that become permanently and totally disabled to continue as members of the group health and life insurance programs. The policies of the Board of Regents of the University System of Georgia define and delineate who is eligible for these post-employment health and life insurance benefits. Organizational units of the Board of Regents of the University System of Georgia pay the employer portion for group insurance for affected individuals. With regard to life insurance, the employer covers the total cost for $25,000 of basic life insurance. If an individual elects to have supplemental, and/or, dependent life insurance coverage, such costs are borne entirely by the employee.
The Board of Regents Retiree Health Benefit Plan is a single employer defined benefit plan. Financial statements and required supplementary information for the Plan are included in the publicly available Consolidated Annual Financial Report of the University System of Georgia. The College pays the employer portion of health insurance for its eligible retirees based on rates that are established annually by the Board of Regents for the upcoming plan year. For the 2009 and 2010 plan years, the employer rate was between 70-75% of the total health insurance cost for eligible retirees and the retiree rate was between 25-30%.
As of June 30, 2010, there were 46 employees who had retired or were disabled that were receiving these post-employment health and life insurance benefits. For the year ended June 30, 2010, Bainbridge College recognized as incurred $213,284 of expenditures, which was net of $108,279 of participant contributions.
NOTE 11: AFFILIATED ORGANIZATIONS
The Bainbridge College Foundation, Inc., is a legally separate, tax exempt organization whose activities primarily support Bainbridge College. This affiliated organization is considered a potential component unit of the State of Georgia in accordance with GASB Statement No. 39, Determining Whether Certain Organizations are Component Units. Therefore, the financial statements of this affiliated organization are not included in these financial statements. Copies of the financial statements for the affiliated organization may be obtained from Bainbridge College.

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SUPPLEMENTARY INFORMATION

BAlNBRlDGE COLLEGE BALANCE SHEET (STATUTORY BASIS)
BUDGET FUND JUNE 30,2010
Cash and Cash Equivalents Accounts Receivable
Federal FinancialAssistance Other Prepaid Expenditures
Total Assets
LIABILITIESAND FUND EOUlTY
Liabilities Accrued Payroll Encumbrances Payable Accounts Payable Deferred Revenue Funds Held for Others
Total Liabilities
Fund Balances Reserved DepartmentSales and Services Indirect Cost Recoveries Technology Fees Restricted/Sponsored Funds Uncollectible Accounts Receivable Tuition Carry-Over Unreserved Surplus
Total Fund Balances
Total Liabilities and Fund Balances

SCHEDULE "1"

Statutory Basis financial information was prepared on a prescribed basis of accountingthat demonstrates compliance with budgetarystatutes and regulationsof the State of Georgia, which is a comprehensive basis of accountingother than generally accepted accounting principles.

BAlNBRlDGE COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT (STATUTORY BASIS)
BUDGET FUND YEAR ENDED JUNE 30,2010

REVENUES
State Appropriation State General Funds
Federal Funds Other Funds
Total Revenues
CARRY-OVER FROM PRIOR YEARS
Transfersfrom Resewed Fund Balance
Total Funds Available
EXPENDITURES
Teaching
Excess of Funds Available over Expenditures
FUND BALANCE JULY 1
Resetved Unresewed
ADJUSTMENTS
Prior Year Payables/Expenditures Prior Year Receivables/Revenues Unreserved Fund Balance (Surplus) Returned
to Board of Regents - Universiw System Office
Year Ended June 30,2009 Prior Year Resewed Fund Balance Included in Funds Available
FUND BALANCEJUNE 3 0

BUDGET

SUMMARY OF FUND BALANCE
Reserved Department Sales and Sewices Indirect Cost Recoveries Technology Fees Restricted/Sponsored Funds UncollectibleAccounts Receivable Tuition Carry-Over
Total Resewed
Unreselved Surplus

Total Fund Balance
Statutory Basisfinancial information was prepared on a prescribed basis of accounting that demonstrates compliance with budgetarystatutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles.

ACTUAL

SCHEDULE "2"
VARIANCE FAVORABLE (UNFAVORABLE)

BAlNBRlDGECOLLEGE STATEMENTOF PROGRAMREVENUES AND MPENDiNRES BY FUNDING SOURCE COMPAREDTO BUDGEl
(STATUTORY BASIS) BUDGK FUND YEAR ENDEDJUNE30,201D

Spacial Funding lnitiauve State Appropriation State General Funds

Ortglnsl Appropriation

Final Budget

Current Year Revenues

Funds Avadlable Comparedto Budget

Prlor Year Carry-Over

Tots Funds Available

Variance Posiuve (Negative)

Teaching State Appropriation State General Funds Federal Funds Amencan Recovery and
~e~nvestrneArcnt oi 2009
Federal StabllnzabonFunds Other Funds
Total Teaching
- Grand Totals All Programs

Statutory Baslsflnanclal informat~onwas prepared on a prescribedbasis ofsecount~ngthai demonstratesmmpllance with budgetarystatutes and regulationsof me State of Georgia. which is a mmDrehensive basis of accountingother than generally acceptedaccounting principles.

SCHEDULE "3"

Expenditures Compared to Budget

Varlance

posrt~ve

Actual

(Negative)

Actual Funds Avatlable
Over/(Under) Expendrtures

Prlor Perlad Aqustrnents

Other Adjustments

Early Remittance ofSurplus

Program Fund
Balances

Transfers

Program Fund Balances

Reserve

Surplus

Total Fund Balance

Unexpendable Reserves u n c o ~ ~ e c tA~cbc~oeunts Recelvable
Total Fund Balance

355,646.31 $ 1,177.109.47

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BAlNBRlDGE COLLEGE RECONCILIATION OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30,2010

SCHEDULE "4"

Totals per Annual Supplement

Accruals June 30,2010 June 3 0 , 2 0 0 9

Compensated Absences June 3 0 , 2 0 1 0 June 3 0 , 2 0 0 9

Adjustments

Shared Services on Jointly Staffed Personnel

Georgia Southwestern State University

Long,

Collette

SALARIES

TRAVEL

SECTION II ENTITY'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

BAlNBRlDGE COLLEGE ENTITY'S RESPONSE SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 3 0 , 2 0 1 0

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-562-09-01

Previously Reported Corrective Action Implemented

PRIOR YEAR FEDERAL AWARD FINDINGS AND OUESTIONED COSTS

No matters were reported.

SECTION Ill FINDINGS, QUESTIONED COSTS AND OTHER ITEMS

BAINBRIDGE COLLEGE SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER MATTERS
YEAR ENDED JUNE 30,2010

FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS

REVENUES/RECEIVABLES/RECEIPTS Failure to Monitor Sponsored Projects Significant Deficiency Finding Control Number: FS-562-10-01

Condition:

The College did not adequately monitor their Sponsored Projects which resulted in funds due to the College becoming uncollectible. These uncollectible amounts for certain Sponsored Projects in Restricted Funds were funded by General Operations (Tuition Fund).

Criteria:

The Board of Regents of the University System of Georgia's Business Procedures Manual, Section 10.4.1(4), as revised, requires that uncollectible accounts must be identified by fund and that "fund integrity must be maintained at all times with regard to the uncollectible accounts". Section 10.4.3 also state "Federal receivables resulting from contract or grant activity are to be considered for write-off purposes, as disallowed charges."

Questioned Cost:

N/A

Information:

An examination disclosed that $208,954.46 was reimbursed by the State Appropriations Fund to fund uncollectible Sponsored Project accounts receivable.

Cause:

Management at the College failed to adequately monitor charges to and collections of certain Sponsored Projects with the Restricted Funds of the College in previousfiscal years.

Effect:

As a result of the weakness, certain Sponsored Projects reflected accounts receivable which were uncollectible due to inadequate collection procedures and/or disallowed charges. These uncollectible amounts were funded by General Operations (Tuition Fund) of the College.

Recommendation:

College management should strengthen controls to ensure that charges against Sponsored Projects are made in a timely manner to facilitate prompt billing. Also, accounts receivable related to these charges should be closely monitored to ensure proper collection from Sponsors.

FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

No matters were reported.

BAlNBRlDGE COLLEGE SCHEDULE OF FINDINGS, QUESTIONEDCOSTS AND OTHER MAlTERS
YEAR ENDED JUNE 30,2010
OTHER ITEMS (NOTED FOR MANAGEMENTS CONSIDERATION)
REVENUES/RECEIVABLES/RECEIPTS The College did not record uncollectible accounts receivable in the appropriate fund. Instead of matching the uncollectible accounts receivable in the same fund as the corresponding accounts receivable, the College recorded the entire uncollectible accounts receivable balance in the Tuition and Fees fund. This treatment of uncollectible accounts receivable could potentially affect surplus in future periods. The College should review the uncollectible accounts receivable balance and properly distribute the balance in the same fund as the corresponding accounts receivable.