Columbus State University, Columbus, Georgia, independent accountant's report on applying agreed-upon procedures for fiscal year ended June 30, 2010

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COLUMBUS STATE UNIVERSITY
COLUMBUS, GEORGIA
INDEPENDENT ACCOUNTANT'S
REPORT ON APPLYING AGREED-
UPON PROCEDURES
FOR FISCAL YEAR ENDED
JUNE 30,2010

.. .
I Georgia Department of

I I

Audits and Accounts

COLUMBUS STATE UNIVERSITY - TABLE OF CONTENTS -
INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES EXH IBlTS
A SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT B STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING
SOURCE COMPARED TO BUDGET

Page

RUSSELL W. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMEONFTAUDITASND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
November 19,2010

Members of the State Board of Regents of the UniversitySystem of Georgia Honorable Timothy Mescon, President Columbus State University
Independent Accountant's R e ~ o rotn A ~ ~ l v i nAPgreed-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 2010 Annual Financial Report for inclusion in the University System of Georgia's Annual Financial Report, the State of Georgia's ComprehensiveAnnual Fliancial Report (CXFR) and Single Audit Report and to assist you in assessing the accuracy of the budget basis information provided in the Summary Budget Comparison and Surplus Analysis Report and Statement o f Program Revenues and Expenditures by Funding Source Compared to Budget which are attached as Exhibits A and B, respectively. Columbus 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 information included in the Post-Employment Benefits Other Than Pension Benefits note disclosure was not properly reported. Note 1 4 of the entity's Annual Financial Report reflected June 30, 2010, expenditures incurred as $1,546,294, net of participant contributions of $541,865; however, actual expenditures were $1,004,429, net of participant contributions of $489,312. These errors resulted in variances of $541,865 and $52,553, respectively, in the financial statement disclosure.
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 2010. 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, travel, and professional services 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 Comparison and Surplus Analysis Report(Exhibit A) and Statement of Program Revenues and Expenditures by Funding Source Compared to Budget (Exhibit B). 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 Anahsis Report (Exhibit A). Confirm that the reserves are properly documented, valid and appropriate.
The University improperly reserved a deficit fund balance of $2,474.34 for Technology Fees. At the University's request, an entry was made by the Auditor to fund the deficit out of Tuition funds.
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's accounting records.
The University's Schedule of Expenditures of Federal Awards information was not properly reported. Errors were identified within the funding agency information for several projects. Adjustments were made to correct these errors.
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.
The University failed to reconcile the Payroll bank account to the accounting records in a timely manner for eight out of twelve months. In addition, the Universityfailed to reconcile the Operating bank account to the accounting records in a timely manner for eleven out of twelve months.
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,

-

usb bel W. Hinton, CPA, CGFM
State Auditor

EXHIBITS

COLUMBUS STATE UNIVERSITY SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT
YEAR ENDEDJUNE 30.2010

REVENUES
State Appropriation State General Funds
Federal Funds Otner Funds
Total Revenues
CARRYDVER FROM PRIOR YEAR
Transfer from Resewed Fund Balance
Total Funds Avaiiable
EXPENDITURES
Teaching
Excess of Funds Available over Expenditures
FUND BALANCE JULY 1
Reserved Unreserved
ADJUSTMENTS
Prlor Year Payables/Expendltures UnreservedFund Balance (Surplus)Returned
to Board of Regents- UniversitySystem Office Year EndedJune 30,2009
Early Remittance of Surplus in Current FiscalYear Non-Mandatory Transfers Prior Year Reserved Fund Balance Included In Funds Ava~lable
FUND BALANCEJUNE 3Q
SUMMARY OF FUND BALANLE
Resewed DepartmentSales and Sewices Indlrect Cost Recoveries Restr~cted/SponsoredFunds Unwllectible Accounts Receivable Tuition Carry-Over
Total Resewed
Unreserved Surplus
Total Fund Balance

BUDGET

ACTUAL

VARIANCE -
FAVORABLE (UNFAVORABLE)

COLUMBUS STATE UNlVERSlfY STATEMENT OF PROGRAM REVENUESAND aPENDTURES BY FUNDING SOURCECOMPAREDTOBUCGEl
YE4R ENDED JUNE30.2010

Special FundinglnlUatlve State Appropnatton State General Funds

Original Approprlat~on

Final Budget

Current Year Revenues

Funds Ave8lable Compared to Budget

PrlorYear CarWver

Total Funds Avalilble

Varnance P06111~e (Negat~ve)

Teaching State Appropitatlon State General Funds FeamaI Funds Arnerlcan Recovery and Reinvestment Act of 2009 Federal Stabllizatlon Funds Other Federal Funds Other Funds
Total Teachvng

Grand Totnls -All Pmgrsme

ExpsndliuresCompared t o Budgat

Var~ance

PoslUva

Actual

(NegaUve)

Actual FundrAva~lable Over/(Umer]
Expenditures

P r ~ o rPertar Ad~ustmants

Other Adlu~tments

Earb Rern~mnce ofSurplus

Program Fund
Balances

Transfers

-- $

000 $

-000-$

--000 $

$3 OW,

- $ A

000 $

000 $

000 P

Program Fund Balances

Reserve

Surplus

Total
Fund
- Balance

om 1

000 $

OW

Unexpendable Reserves Unc~lleetbleAccounts Rece~vable