STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
DALTON STATE COLLEGE DALTON, GEORGIA
INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES
FOR THE FISCAL YEAR ENDED JUNE 30, 2008
Russell W. Hinton State Auditor

DALTON STATE COLLEGE - TABLE OF CONTENTS -

INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES

EXHIBITS

A SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT

1

B STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING

SOURCE COMPARED TO BUDGET

2

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
December 11, 2008

Members ofthe State Board of Regents of the University System of Georgia Honorable John 0. Schwenn, President Dalton State College
Independent Accountant's Report on Applying Agreed-Upon Procedures
Ladies and Gentlemen:
We have performed the procedures enumerated below, which were agreed to by the College 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 College's 2008 Annual Financial Report for inclusion in the State of Georgia's Comprehensive Annual Financial Report (CAFR) 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 ofProgram Revenues andExpenditures by Funding Source Compared to Budget which are attached as Exhibits A and B, respectively. Dalton State 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 ofthese procedures is solely the responsibility ofthe parties specified in this report. Consequently, we make no representation regarding the sufficiency ofthe 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 ofNet Assets and Statement ofRevenues, 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.
3. 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.
4. 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, Long-Term Debt, Lease Obligations and Retirement Plans have been properly reported.
We did not note any exceptions as a result of our procedures.
5. 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.
6. 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 result of our procedures.
7. Obtain listing of write-off requests for accounts receivable less than $3,000.00 for fiscal year 2008. Confirm that these write-offrequests 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.
8. Verify that the listing ofsalaries, 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 College's financial statements.
Salaries reported to the Department ofAudits were not reconciled with amounts recorded in the financial statements. A variance of $37,852.79 was noted.

9. Review year end Budgetary Statements including the Summary Budget Comparison andSurplus Analysis Report (Exhibit A) and Statement ofProgram Revenues andExpenditures by Funding Source Compared to Budget (Exhibit B). 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.
10. Obtain documentation for Budget basis reserves reported by College 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 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 Expenditures ofFederal 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 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.
These agreed-upon procedures do not constitute an audit of the financial statements or any part thereof, the objective ofwhich 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.

RWH:gp

Ru ell W. Hinton, CPA, CGFM State Auditor

EXHIBITS

DALTON STATE COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT
YEAR ENDED JUNE 30, 2008

EXHIBIT"A"

REVENUES

State Appropriation

State General Funds

$

Other Funds

Total Revenues

$

CARRY-OVER FROM PRIOR YEAR

Transfer from Reserved Fund Balance

Total Funds Available

$

EXPENDITURES

Special Funding Initiatives

$

Teaching

Total Expenditures

$

Excess of Funds Available over Expenditures

$

FUND BALANCE JULY 1

Reserved Unreserved

ADJUSTMENTS

Prior Year Payables/Expenditures Prior Year Receivables/Revenues Unreserved Fund Balance (Surplus) Returned
to Board of Regents - University System Office Year Ended June 30, 2007
Prior Year Reserved Fund Balance Included in Funds Available

FUND BALANCE JUNE 30

BUDGET
14,440,736.00 $ 17,223,705.00 31,664,441.00 $
0.00 31,664,441.00 $
5,369.00 $ 31,659,072.00 31,664,441.00 $
0.00 $
$

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

14,440,736.00 $ 16,901,681.62
31,342,417.62 $

0.00 -322,023.38
-322,023.38

11 945.90 31,354,363.52 $

11 945.90 -310,077.48

5,369.00 $ 31,190,523.16
31,195,892.16 $
158,471.36 $

0.00 468,548.84
468,548.84
158 471.36

130,419.19 102,864.89

19,687.31 -56,683.68
-102,864.89 -11 945.90 239,948.28

SUMMARY OF FUND BALANCE
Reserved Departmental Sales and Services Technology Fees Restricted Funds Uncollectible Accounts Receivable Indirect Cost Recovery Inventories Tuition Carry-Over
Total Reserved
Unreserved Surplus
Total Fund Balance

$

88.00

1,437.39

2,336.94

60,305.42

8,480.00

14,758.72

133,612.26

$

221,018.73

18,929.55

$

239,948.28

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DALTON STATE COLLEGE STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING SOURCE COMPARED TO BUDGET
YEAR ENDED JUNE 30, 2008

Special Funding Initiative
State Appropriation State General Funds

Original Appropriation

Final Budget

Funds Available Come!red to Budget

Current Year Revenues

Prior Year Carry-Over

Total Funds Available

Variance Positive (Negative}

$

5,369.00 $

5,369.00 $

51369.00 $

0.00 $

51369.00 $

0.00

Teaching State Appropriation State General Funds Other Funds
Total Teaching

$ 14,426,560.00 $ 14,435,367.00 $ 14,435,367.00 $

0.00 $

18,909,718.00

17,223,705.00 16,901,681.62 11,945.90

$ 33,336,278.00 $ 31,659,072.00 $ 31,337,048.62 $ 11,945.90 $

14,435,367.00 $

0.00

16,913,627.52 -310,077.48

31,348,994.52 $ -310,077.48

Grand Totals -All Programs

$ 33,341,647.00 $ 31,664,441.00 $ 31,342,417.62 $ 11,945.90 $ 31,354,363.52 $ -310,077.48

-2

EXHIBIT"B"

Exe!nditures Comeared to Budget

Variance

Positive

Actual

/Negative)

Actual Funds Available
Over/(Under) Expenditures

Prior Period Adjustments

Other Adjustments

Program Fund
Balances

Transfers

Program Fund Balances

Reserve

Surplus

Total Fund Balance

$

5,369.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00

$ 14,434,740.14 $ 16 755 783.02
$ 31.190.523.16 $

626.86 $ 467 921.98
468,548.84 $

626.86 $ 157.844.50
158 471.36 $

0.00 $ -36.996.37
-36.996.37 $

0.00 $

626.86 $

43 409.15 164.257.28

0.00 $

0.00 $

0.00 145.954.59

s s_ _ s s 43409.15 164.884.14

....,0.0..0.., 145.954.59

626.86 $ 18.302.69
s 10.929.55

626.86 164.257.28
164.884.14

$ 31,195,892.16 $

468,548.84 $

s_ _ _ _ 158 471.36 $ -36,996.37 $ 43,409.15 $ 164,884.14

o.o..o.. $ 145,954.59 $ 18,929.55 $ 164,884.14

Unexpendable Reserves Uncollectible Accounts Receivable Inventories

60,305.42 14.758.72
$ 239,948.28

-3-