STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS MANAGEMENT REPORT DALTON STATE COLLEGE DALTON, GEORGIA AN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA YEAR ENDED JUNE 30, 2005 Russell W. Hinton State Auditor DALTON STATE COLLEGE - TABLE OF CONTENTS - SECTION I FINANCIAL LETTER OF TRANSMITTAL SELECTED FINANCIAL INFORMATION EXHIBITS A BALANCE SHEET-(STATUTORY BASIS) "A" RESIDENT INSTRUCTION 3 B ANALYSIS OF CHANGES IN FUND BALANCE - (STATUTORY BASIS) "A" RESIDENT INSTRUCTION 4 C STATEMENT OF REVENUES AND EXPENDITURES COMPARED TO BUDGET - (STATUTORY BASIS) "A" RESIDENT INSTRUCTION 5 D RECONCILIATION OF SALARIES AND TRAVEL 7 SECTION II FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION I FINANCIAL Russell W. Hinton STATE AUDITOR (404} 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 September 28, 2005 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 James A. Burran, President Dalton State College Ladies and Gentlemen: As part ofour audit ofthe statutory basis financial statements ofthe State ofGeorgia presented in the State ofGeorgia Report ofthe State Auditor, the basic financial statements of the State of Georgia presented in the State ofGeorgia Comprehensive Annual Financial Report, and the issuance of a State ofGeorgia Single Audit Report pursuant to the Single Audit Act Amendments, as ofand for the year ended June 30, 2005, we have performed certain audit procedures at Dalton State College. Accordingly, the financial statements and compliance activities of Dalton State College were examined to the extent considered necessary in order to express an opinion as to the fair presentation ofthe 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 Dalton State College as ofand for the year ended June 30, 2005. Information contained in this report is a by-product ofour engagement that is the representation ofmanagement, and accordingly, we do not express an opinion or any other form of assurance on it. The particular information provided is enumerated in the Table of Contents. This report is intended solely for the information and use of the management of Dalton State College, and members of the Board of Regents of the University System of Georgia and is not intended to be and should not be used by anyone other than these specified parties. Respectfully submitted, RWH:gp State Auditor SELECTED FINANCIAL INFORMATION - 1- DALTON STATE COLLEGE BALANCE SHEET (STATUTORY BASIS) "A" RESIDENT INSTRUCTION JUNE 30, 2005 ASSETS Cash and Cash Equivalents Accounts Receivable Federal Financial Assistance Other Prepaid Expenditures Inventories Total Assets LIABILITIES AND FUND EQUITY Liabilities Accrued Payroll Accounts Payable Deferred Revenue Total Liabilities Fund Balances Reserved Inventories Technology Fees Restricted Funds Uncollectible Accounts Receivable Unreserved Undesignated Surplus Regular Total Fund Balances Total Liabilities and Fund Balances EXHIBIT"A" $ 1,719,362.51 372,502.41 1,594,395.53 11,724.90 7,887.29 $ 3,705,872.64 $ 379,009.04 1,795,766.83 1,336,284.49 $ 3,511,060.36 $ 7,983.42 39,185.76 2,336.94 76,987.89 68 318.27 $ 194,812.28 $ 3,705,872.64 Statutory Basis financial information was prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. -3 - DALTON STATE COLLEGE ANALYSIS OF CHANGES IN FUND BALANCE - (STATUTORY BASIS) "A" RESIDENT INSTRUCTION YEAR ENDED JUNE 30, 2005 EXHIBIT"B" FUND BALANCE - JULY 1, 2004 Reserved Surplus ADDITIONS Adjustments to Prior Year's Expenditures/Payables Adjustments to Prior Year's Revenues Excess of Funds Available over Expenditures Exhibit "C" DEDUCTIONS Unreserved Fund Balance (Surplus) Returned to Board of Regents - Administrative Central Office Year Ended June 30, 2004 FUND BALANCE - JUNE 30, 2005 $ 296,555.00 70,468.24 $ 367,023.24 $ 5,568.89 90,588.33 -197,899.94 $ -101,742.72 $ 70,468.24 $ ==1=9=4=,8=12==28= Statutory Basis financial information was prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. -4- DALTON STATE COLLEGE STATEMENT OF REVENUES AND EXPENDITURES COMPARED TO BUDGET- (STATUTORY BASIS) "A" RESIDENT INSTRUCTION YEAR ENDED JUNE 30, 2005 EXHIBIT "C" REVENUES State Appropriations Other Revenues Retained BUDGET ACTUAL VARIANCEFAVORABLE (UNFAVORABLE) $ 11,371,508.00 $ 11,371,508.00 $ 15,384,390.00 13,240.476.80 0.00 -2, 143,913.20 $ 26,755,898.00 $ 24,611,984.80 $ -2, 143,913.20 EXPENDITURES Personal Services: Education, General and Departmental Services Sponsored Operations Operating Expenses: Education, General and Departmental Services Sponsored Operations Capital Outlay Special Funding Initiative $ 12,354,662.00 $ 12,329,206.61 $ 2.423,274.00 2,366,158.15 5,227,688.00 5,460,116.00 1,286,000.00 4 158.00 5,087,047.73 4,021,153.18 1,002,161.07 4,158.00 25.455.39 57,115 85 140,640.27 1.438,962.82 283,838.93 0.00 Excess of Revenues over Expenditures $ 26,755,898.00 $ 24,809,884.74 $ - - - -1,9'4-6-,01-3-.2-6 $ -197,899.94 $ ===-=19=7,8=99=.9=4 Statutory Basis financial information was prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. -5- DALTON STATE COLLEGE RECONCILIATION OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 2005 EXHIBIT "D" Totals per Annual Supplement Accruals June 30, 2005 June 30, 2004 Compensated Absences June 30, 2005 June 30, 2004 Unidentified Variance Totals per GAAP Basis as Reported in the Consolidated Annual Financial Report SALARIES $ 11,886,481.17 $ TRAVEL 114,858.92 383,576.92 -361,215.32 417,514.48 -385,865.68 -5,108.08 $ 11,935,383.49 $ ==11=4=,8=5=8=92= -7 - SECTION II FINDINGS AND QUESTIONED COSTS DALTON STATE COLLEGE SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2005 FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.