BAINBRIDIL COLLEGE BAINBRIDGE, GEORGZA INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED- UPON PROCEDURES FOR FISCAL YEAR ENDED JUNE30,2011 * I . .-.'I . i Geo r g i a Department of . .I . . - 4 py.v+- ,J.r* A -.i.,),---,p, r 'J4 Audits and lLccoagts ,A=- State A u w .- . .'< . ? .' .L . BAlNBRlDGE COLLEGE - TABLE OF CONTENTS - INDEPENDENTACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES EXHIBITS A SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT 1 B STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE 2 C STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE RUSSELLW. HINTON STATE AUDITOR (404) 666-2174 DEPARTMENOTF AUDITSAND ACCOUNTS 270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 November 30,2011 Members of the State Board of Regents of the UniversitySystem of Georgia and Honorable Richard Carvajal, President Bainbridge College Independent Accountant's R e ~ o rotn Amlvine;&reed-U~on Procedures Ladies and Gentlemen: We have performed the procedures enumerated below, which were agreed to by the College and the UniversitySystem 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 College's 2 0 1 1Annual Financial Report for inclusion in the UniversitySystem of Georgia's Annual Financial Reporf the State of Georgia's ComprehensiveAnnual Financial Report (CAFR) and Single Audit Reporl; and to assist you in assessing the accuracy of the budget basis information provided in the Summaty Budget Comparison and Suplus Analysis Report, Statement of Funds Available and Expenditures ampared to Budget By Program and Funding Sourn, and the Statement of Changes To Fund Balance By Program and Funding Source which are attached as Exhibits A, B and C, respectively. Bainbridge College's management is responsible for the financial information reported to the University System Office 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 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 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 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 College's accounting records. We did not note any exceptions as a result of our procedures. 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. 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, LongTerm Debt, Lease Obligations and Retirement Plans have been properly reported. We did not note any exceptions as a result of our procedures. 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. Confirm that State Appropriation revenues, receivables and remittances of prior year surplus balances have been properly recorded in the College'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 resultof our procedures. 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 College's financial statements. We did not note any exceptions as a result of our procedures. 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. Review year end Budgetary Statements including the Summary Budget Comparison and Surplus Anahsis Report ( Exhibit A), Statement of Funds Available and Expenditures ampared to Budget By Pmgram and Funding Source (Exhibit B) and the Shtement 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 College's accounting records and determine if any budget overexpenditures exist. We did not note any exceptions as a result of our procedures. Obtain documentation for Budget basis reserves reported by College on the Summary Budget Compariison 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 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. 12. Review the Schedule of Expendituresof 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 resultof 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 submitted, kRuss li W. Hinton, CPA, CGFM Sta Auditor EXH IBlTS BAlNBRlDGE COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT YEAR ENDED JUNE 3 0 , 2 0 1 1 REVENUES State Appropriation State General Funds Other Funds Total Revenues ADJUSTMENTS AND PROGRAM TRANSFERS CARRYaVER FROM PRIOR YEARS Transfers from Resewed Fund Balance Total Funds Available EXPENDITURES Teaching Excess of Funds Ava~lableover Expenditures FUND BALANCE JULY I Reserved Unreserved ADJUSTMENTS Prior Year Payablesfixpenditures Prior Year Receivables/Revenues Unreserved Fund Balance (Surplus) Returned to Board of Regents - University System Office Year Ended June 3 0 , 2 0 1 0 Early Return of Surplus in Current Fiscal Year Prlor 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 Uncollectible Accounts Receivable Tuition Carry-Over Total Reserved Unreserved Surplus Total Fund Balance BUDGET ACTUAL - VARIANCE FAVORABLE (UNFAVORABLE) BAlNBRlDGECOLLEGE STATEMENT OF FUNDSAVAllABLEAND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE YEAR ENDED JUNE 3 0 . 2 0 1 1 Teaching State Appropriat~on State General Funds Federal Funds American Recovery and Reinvestment Act Federal Stabilization Funds Other Funds Total Teachlng Orlglnal Appropriat~on Amended Appropriation Final Budget Current Year Revenues EXHIBIT "I8" Funds Available Compared to Budget Prior Year Adlustments and Total Carry-Over Program Transfers Funds Available Variance Positive (Negat~ve) Expenditures Compared to Budget Variance Actual Pos~tive(Negative) Excess (Defic~ency) of Funds Available Over./f.Under). Expenditures BANBRIDGE COLLEGE STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE YEAR ENDED JUNE 30,2011 Teaching State Appropr~ation State General Funds Federal Funds Amer~canRecoveryand Reinvestment Act Federal Stabilization Funds Other Funds Total Teaching Prior Year Reserves Not Available for Expendnure lnventorles Uncollect~bleAccounts Receivable Beginning Fund Balance/(Deficit) July 1 Fund Balance Carrled Over from Prior Period as FundsAva~lable Return of Fiscal Year 2010 Surplus Prior Period Adjustments Budget Unit Totals Other Adjustments Early Return F~scaYl ear 2011 Surplus Excess (Deficiency) of Funds Avatlable OverAUnder) Expenditures End~ngFund Balance/(Deficit) June 3 0 Analys~sof Ending Fund Balance Resewed Surplus/(Deficit) Total Summa1-y of Endlng Fund Balance Reserved Department Sales and Sewtces Indirect Cost Recoveries Technology Fees Restricted/Sponsored Funds Uncollectible Accounts Receivable Tu~ttonCarry-Over Unreserved Surplus Total Ending Fund Balance -June 3 0