DALTON STATE COLLEGE
DALTON, GEORGIA
MANAGEMENT REPORT FOR FISCAL YEKR ENDED JUNE 30,2011
A Member Institution of the
University System of Georgia
Audits and Acecatuito

DALTON STATE COLLEGE - TABLE OF CONTENTS -

SECTION I

FINANCIAL

LElTER OF TRANSMIlTAL

SELECTED FINANCIAL INFORMATION

EXHIBITS

A STATEMENTOFNETASSETS-(GAAPBASIS)

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 BALANCE SHEET - (STATUTORY BASIS) BUDGET FUND

16

2 SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT

(STATUTORY BASIS) BUDGET FUND

17

3 STATEMENT OF FUNDS AVAILABLE AND EXPENDITURESCOMPARED TO BUDGET

BY PROGRAM AND FUNDING SOURCE

(STATUTORY BASIS) BUDGET FUND

18

4 STATEMENT OF CHANGES TO FUND BALANCE

BY PROGRAM AND FUNDING SOURCE

(STATUTORY BASIS) BUDGET FUND

20

5 RECONCILIATION OF SALARIES AND TRAVEL

23

SECTION II FINDINGS, QUESTIONED COSTS AND OTHER ITEMS SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS

SECTION I FINANCIAL

Russell W. Hinton
STATE AUDITOR
(404) 656-2174

DEPARTMENOTF AUDITSAND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
October 1 0 , 2 0 1 1

Honorable Nathan Deal, Governor Members of the General Assembly of Georgia Members of the State Board of Regents of the University System of Georgia
and Honorable John Schwenn, President Dalton State College
Ladies and Gentlemen:
As part of our audits of the basic financial statements of the University System of Georgia presented in the Annual FinancialReportfor the University System of Georgia, the basic financial statements of the State of Georgia presented in the State o f Georgia ComprehensiveAnnual FinancialReportand the issuance of a State of Georgia SingleAudit Reporfpursuant to the Single Audit Act Amendments, as of and for the year ended June 30, 2011, 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 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 Dalton State College as of and for the year ended June 30, 2011. 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 Dalton State 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.

SELECTED FINANCIAL INFORMATION

DALTON STATE COLLEGE
STATEMENT OF NET ASSETS - (GAAP BASIS) JUNE 30,2011
ASSETS
Current Assets Cash and Cash Equivalents Accounts Receivable, Net (Note 3) Federal Financial Assistance Other Due From Affiliated Organizations Inventories Prepaid Items
Total Current Assets
Noncurrent Assets Capital Assets, Net (Note 4)
Total Assets
Current Liabilities Accounts Payable Salaries Payable Deposits Deferred Revenue (Note 5) Deposits Held for Other Organizations Lease Purchase Obligations CompensatedAbsences
Total Current Liabilities
Noncurrent Liabilities Lease Purchase Obl~gations Compensated Absences
Total Noncurrent Liabilities
Total Liabilities
NET ASSETS
Invested in Capital Assets, Net of Related Debt Restricted for
Expendable Unrestricted
Total Net Assets

EXHIBIT" A

DALTON STATE COLLEGE
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - (GAAP BASIS)
YEAR ENDED JUNE 30.2011
OPERATING REVENUES
Student Tuitlon and Fees Less: Scholarship Allowances
Grants and Contracts Federal State Other
Saies and Sewices of Educational Departments Auxiliary Enterprises
Residence Halls Bookstore Food Services Parking/Transportation Other Organizations Other Operating Revenues
Total Operating Revenues
OPERATING EXPENSES
Salaries Faculty Staff
Employee Benefits Other Personal Services Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses
Operating Income (Loss)
NONOPERATING REVENUES (EXPENSES1
State Appropriations Grants and Contracts
Federal Gifts lnterest and Other Investment lncorne lnterest Expense Other Nonoperating Revenues/Expenses
Net Nonoperatlng Revenues
lncorne (Loss) Before Other Revenues, Expenses,Galns, or Losses
Capital Grants and Gifts State
Increase (Decrease) In Net Assets
Net Assets - Beginning of Year
Net Assets - End of Year

DALTON STATE COLLEGE STATEMENT OF CASH FLOWS - (GAAP BASIS)
YEAR ENDEDJUNE 30.2011
CASH FLOWS FROM OPERATING ACTIVITIES Tuition and Fees Grants and Contracts Sales and Services of Educational Depanments Paymentsto Suppliers Paymentsto Employees Paymentsfor Scholarships and Fellowships Auxiliary Enterprise Charges: Residence Halls Bookstore Food Selv~ces Park~n&/Transponation Other Organizations Other Rece~pts(Payments)
Net Cash Provided (Used) by Operating Activities
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES State Appropriations Agency Funds Transactions Gifts and Grants Received for Other than Capltal Purposes
Net Cash Flows Provided (Used) by Noncapital FinancingActivities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital Gifts and Grants Received Purchasesof Capital Assets Principal Paid on Capital Debt and Leases lnterest Paid on Capital Debt and Leases
Net Cash Provided (Used) by Capital and Related FinancingActivities
CASH FLOWS FROM INVESTING ACTIVITIES Interest on Investments
Net Increase (Decrease) in Cash
Cash and Cash Equivalents - Beginning of Year
Cash and Cash Equivalents - End of Year
RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTlViTlES:
Operat~ngIncome (Loss) Adjustments to Reconcile Operating Income to Net Cash
Provided (Used) by Operating Activities Depreciation Change ~nAssets and Liabilities: Accounts Receivable Inventories Prepaid Items Accounts Payable Deferred Revenue Other Liabilities Compensated Absences
Net Cash Provided (Used) by Operating Activities
NONCASH ACTIVITY Fixed Assets Acquired by Incurring Capital Lease Obligations Change in Accrued lnterest Payable Affecting Interest Paid Gift of Capital Assets Reducing Proceeds of Capital Grants and Gifts

EXHIBIT 'C"

DALTON STATE COLLEGE SELECTED FINANCIAL NOTES
JUNE 30, 2011

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Dalton State 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 Dalton State 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. Dalton State College does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, Dalton State 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 Reporting Standards.
NET ASSETS The College's net assets are classified as follows:
Invested in capialassets, net of related debt: 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 - 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.
Unrestriictednet 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 Dalton State 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 $6,879.99. Unexpended state appropriations must be refunded to the Board of Regents of the University System of Georgia, University System Office for remittance to the Office of State Treasurer. These resources also include auxiliary enterprises, which are substantially self-supporting activities that provide services for students, faculty and staff.
NOTE 2: DEPOSITS
DEPOSITS The custodial credit risk for deposits is the risk that in the event of a bank failure, the Dalton State 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 providing a 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:

DALTON STATE COLLEGE SELECTED FINANCIAL NOTES
JUNE 30, 2011

EXHIBIT "D"

NOTE 2: DEPOSITS

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.
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, 2011, the carrying value of deposits was $2,779,402 and the bank balance was $3,511,885. Of the College's deposits $3,511,885 were collateralized with securities held by the financial institution, by its trust department or agency, but not in the College's name.

NOTE 3: ACCOUNTS RECEIVABLE

Accounts receivable consisted of the following at June 30, 2011.

Student Tuition and Fees Auxiliary Enterprises and Other OperatingActivities Federal, State and Private Funds Georgia State Financingand Investment Commission Due from Affiliated Organizations Other

LessAllowance for Doubtful Accounts Net Accounts Receivable

DALTON STATE COLLEGE SELECTED FINANCIAL NOTES
JUNE 30,2011

EXHIBIT "D"

NOTE 4: CAPITAL ASSETS Followingare the changes in the College's capital assets for the year ended June 30, 2011:

Beg~nning Balance
July 1 2010

Additions

ReducDons

Ending Balance
June 30,2011

Capital Assets, Not B e ~ n gDepreciated: Land Construction Work-In-Progress

$

1,038,065

914.452 $

231.006 $

914,452

231,006

Total Capital Assets, Not Being Deprec~ated $

1952,517 $

231,006 $

914.452 $

1,269,071

Capital Assets, Being Depreciated: l nfrastructure Building and Building Improvements Facilities and Other Improvements Equ~pment Capital Leases Library Collections Capitalized Collections

Total Assets Being Depreciated

$

50,199,755 $

5,514,869 $

61,063 $

55,653,561

Less: Accumulated Depreciation: Infrastructure Building and Building Improvements Facilitres and Other Improvements Equipment Capital Leases Library Collections

$

1,049,576$

10,432,872

1037.493

2,893,848

195.677

4,669,770

33,187 929,415
74,927 508,947 $ 196,870 250,820

20,646 8,278

11,362,287 1,112,420 3,382,149
392.547 4,912,312

Total Accumulated Depreciation

$

20,279,236 $

1,994,166$

28,924 $

22,244,478

Total Capital Assets, Being Depreciated, Net $

29,920,519 $

3,520,703$

32,139 $

33,409,083

Capital Assets. Net

NOTE 5: DEFERRED REVENUE Deferred revenue consisted of the following a t June 30, 2011.
Other Deferred Revenue

DALTON STATE COLLEGE SELECTED FINANCIAL NOTES
JUNE 30, 2011

EXHIBlT "D"

NOTE 6: LONG-TERM LIABILITIES The College's Long-Term liability activity for the year ended June 30, 2 0 1 1 was as follows:

Begrnn~ng Balance July 1,2010

Add~t~ons

Reductions

Ending Balance June 30, 2011

Current Portion

Leases Lease Obligations

$

7,397,937 $

97,505 $

86,773 $

7,408,669 $

93,074

Other Liabilities Compensated Absences

674,214

542,960

543,224

673,950

510,495

Total Long-Term Obligations $ 8,072,151 $

640,465 $

629,997 $ 8,082,619 $

603,569

NOTE 7: NET ASSETS Changes in Net Asset activity for the year ended June 30, 2 0 1 1 are as follows:

Beginning Balance July 1,2010

Additions

Reductions

Invested in Capital Assets Net of Related Debt

Restricted Net Assets

Unrestricted Net Assets

Total Net Assets

Ending Balance June 3 0 , 2 0 1 1

NOTE 8: LEASE OBLIGATIONS
Dalton State College is obligated under various operating leases for the use of real property (land, buildings, and office facilities) and equipment, and also is obligated under capital leases and installment purchase agreements for the acquisition of real property and equipment.
CAPITAL LEASES Capital leases are generally payable in installments ranging from monthly to annually and have terms expiring in various years between 2012 and 2040. Expenses for fiscal year 2 0 1 1 were $531,629 of which $444,856 represented interest. Total principal paid on capital leases was $86,773 for the fiscal year ended June 30, 2011. Interest rate for this project was 5.952 percent.

DALTON STATE COLLEGE SELECTED FINANCIAL NOTES
JUNE 30,2011

EXHIBIT "D"

NOTE 8: LEASE OBLIGATIONS
OPERATING LEASES Dalton State College's noncancellable operating leases provide for renewal options for periods from one to three years at their fair rental value at the time of renewal. All agreements are cancelable if the State of Georgia does not provide adequate funding, but that is considered a remote possibility. In the normal course of business, operating leases are generally renewed or replaced by other leases. Operating leases are generally payable on a monthly basis. Examples of property under operating leases are copiers, other small business equipment, and buildings.
Noncancellable operating lease rental expenses in 2011 were $442,968 for real property and/or equipment.
FUTURE COMMITMENTS Future commitments for capital leases (which here and on the Statement of Net Assets include other installment purchase agreements) and for noncancellable operating leases having remaining terms in excess of one year as of June 30,2011, were as follows:

Capital Leases

Operating Leases

Year EndingJune 30: 2012 20 13 2014 2015 2016 2017 - 2021 2022 - 2026 2027 - 2031 2032 - 2036
2037 - 2040

Total Minimum Lease Payments

$ 15,725,840 $

442,968

Less: Interest

8.317.171

Principal Outstanding
NOTE 9: RETIREMENT PLANS
Dalton State College participates in various retirement plans administered by the State of Georgia under two major retirement systems: Employees' Retirement System of Georgia (ERS System) and Teachers Retirement System of Georgia. These two systems issue separate publicly available financial reports that include the applicable financial statements and required supplementary information. The reports may be obtained from the respective system offices. The significant retirement plans that Dalton State College participates in are described below. More detailed information can be found in the plan agreements and related legislation. Each plan, including benefit and contribution provisions, was established and can be amended by State law.

DALTON STATE COLLEGE SELECTED FINANCIAL NOTES
JUNE 30, 2011

EXHIBrr "D"

NOTE 9: RETIREMENT PLANS
Teachers Retirement System of Georgia
The Teachers Retirement System of Georgia (TRS) is a cost-sharing multiple-employer defined benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS.
On October 25, 1996, the Board created the Supplemental Retirement Benefit Plan of the Georgia Teachers Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1,1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits.
TRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by State statute. A member is eligible for normal service retirement after 3 0 years of creditable service, regardless of age, or after 1 0 years of service and attainment of age 60. A member is eligible for early retirement after 2 5 years of creditable service.
Normal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 4 0 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 6 0 or by 7% for each year or fraction thereof by which the member has less than 3 0 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available.
TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 1 0 years of service. If a member terminates with less than 1 0 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2 0 1 1 were 5.53% of annual salary. Employer contributions required for fiscal year 2 0 1 1 were 10.28% of annual salary as required by the June 30, 2009 actuarial valuation.

DALTON STATE COLLEGE SELECTED FINANCIAL NOTES
JUNE 30, 2011

EXHIBIT "D"

NOTE 9: RETIREMENT PLANS

Teachers Retirement System of Georgia

The following table summarizes the Dalton State College contributions by defined benefit plan for the years ending June 30,2011, June 2010, and June 2009 (dollars in thousands):

Fiscal Year

TRS Percentage Contributed

Required Contribution

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 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.
Funding Policy Dalton State 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 2011, 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 nonforfeitable at all times.
Dalton State College and the covered employees made the required contributions of $600,943 (9.24%) and $325,186 (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 Dalton State 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.

DALTON STATE COLLEGE SELECTED FINANCIAL NOTES
JUNE 30, 2011

EXHIBIT "D"

NOTE 9: RETIREMENT PLANS
Georgia Defined Contribution Plan
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 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 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 2 0 1 1 amounted to $60,230 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.
NOTE 10: POST-EMPLOYMENT BENEFITSOTHER 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 2011 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%.

DALTON STATE COLLEGE SELECTED FINANCIAL NOTES
JUNE 30, 2011

EXHIBlT "D"

NOTE 10: POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
As of June 30, 2011, there were 119 employees who had retired or were disabled that were receiving these post-employment health and life insurance benefits. For the year ended June 30, 2011, Dalton State College recognized as incurred $545,571 of expenditures, which was net of $255,024 of participant contributions.
NOTE 11: AFFILIATED ORGANIZATIONS
The Dalton State College Foundation is a legally separate tax exempt organization whose activities primarily support Dalton State 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 Organtzatim are Component Unib. 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 Dalton State College.

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SUPPLEMENTARY INFORMATION

DALTON STATE COLLEGE BALANCE SHEET (STATUTORY BASIS)
BUDGET FUND JUNE 3 0 , 2 0 1 1
ASSETS
Accounts Receivable Federal Financial Assistance Other
Prepa~dExpenditures Inventories
Total Assets
LIABILITIESAND FUND EQUITY
Liabilities Cash Overdraft Accrued Payroll Encumbrances Payable Accounts Payable Deferred Revenue
Total Liabilities
Fund Balances Reserved Department Sales and Services Indirect Cost Recoveries Technology Fees Restricted/Sponsored Funds Tuition Carry-Over Uncollectible Accounts Receivable Inventories Unreserved Surplus
Total Fund Balances
Total Liabilities and Fund Balances

SCHEDULE "1"

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.
- 16-

DALTON STATE COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT (STATUTORY BASIS)
BUDGET FUND YEAR ENDEDJUNE 30,2011

REVENUES
State Appropriation State General Funds
Other Funds
Total Revenues
CARRY-OVER FROM PRIOR YEARS
Transfers from Reserved Fund Balance Adjustments and Program Transfers
Total Funds Ava~lable
EXPENDITURES
Teaching
Excess of Funds Available over Exvendltures
FUND BAI ANCF JULY 1
Reserved Unre~e~ed
ADJUSTMFNTS
Prior Year Payables/Expendltures Prior Year Receivables/Revenues Unreserved Fund Balance (Surplus) Returned
to Board of Regents- University System Office
Year Ended June 30.2010 Early Return of Surplus in Current Flscal Year Prior Year Reserved Fund Balance Included in Funds Available
FUND BALANCEJUNF 3 0
SUMMARYOF FUW BALANCE
Reserved Department Sales and Services Indirect Cost Recoveries Technology Fees Restricted/Sponsored Funds Tuit~onCarry-Over Uncollectible Accounts Receivable Inventories
Total Reserved
Unreserved Surplus
Total Fund Balance

BUDGET

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 bas~sof accounting other than generally accepted accounting princ~ples.

ACTUAL

SCHEDULE " 2
VARIANCE FAVORABLE (UNFAVORABLE)

DALTON STATE COLLEGE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE
(STATUTORY BASIS) BUDGEl FUND YEAR ENDED JUNE 30.2011

Teaching State Appropriation State General Funds Federal Funds American Recovery and Reinvestment Act of 2009 Federal Stabillration Funds Other Funds
Total Teaching
Total Operating Activ~ty

Original Aoorooriation

Amended Aworowriation

Final Budget

Current Year Revenues

Statutory Basis financial information was prepared on a prescribed basis of accounting that demonstrates compliance with budgetaly statutes and regulations of the State of Georgia, which IS a comprehensive basis of accounting other than generally accepted accounting principles.

SCHEDULE "B

Funds Available Compared to Budget

Prior Year

Adiustments and

Total

Carry-Over

Program Transfers Funds Available

Variance Positive (Negative)

Expenditures Compared to Budget

Actual

Variance Positive (Negative)

Excess (Deficiency) of Funds Available
Over/(Under) Expenditures

DALTON STATE COLLEGE STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE
(STATUTORY BASIS) BUDGET FUND YEAR ENDEDJUNE 30.2011

Teaching State Approprlation State General Funds Other Funds
Total Teachlng

Beginning Fund Balance/(Deficit)
July 1

Fund Balance Carried Over from
Prior Per~od as Funds Available

Return of FiscalYear 2010
Surplus

Prlor Period Adjustments

Total Operating Activity
Pr~oYr ear Reserves Not Available for Expenditure Inventories Uncollectible Accounts Receivable

Budget Unit Totals

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.

SCHEDULE "4'

Other Adjustments

Early Return Fiscal Year 2011
Surplus

Excess (Defic~ency) of Funds Available
Over/(Under) Expenditures

Ending Fund Baiance/(Deficit)
June 3 0

Analysis of Ending Fund Balance

Reserved

Surplus/(Defic~t)

Total

Sumrnaty of End~ngFund Balance
Reserved Department Sales and Services Indirect Cost Recoveries Technology Fees Restricted/Sponsored Funds Tuition Carry-over Uncollectible Accounts Receivable Inventories
Unreserved, Undesignated Surplus
Total Ending Fund Balance - June 30

$

138.00

38.272.75

68.731.98

2.336.94

19.852.03

94,959.19

15.986.66

0.00 $

$

240,277.55 $

P

6,879.99

6,879.99

6,879.99 3 247.157.54

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DALTON STATE COLLEGE RECONCILIATION OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30,2011

SCHEDULE "5"

Totals per Annual Supplement

Accruals June 30,2011 June 30,2010

Compensated Absences June 30,2011 June 30,2010

Adjustments

Shared Services on Jointly Staffed Personnel

Fort Valley State University

Public Safety Peer Review

Georgia Southwestern State University

Long,

Colette

Kennesaw State University

King,

Sylvia

Universityof West Georg~a

Bailey,

Scott

Bates,

James

Blackburn,

Natalie

Deaton,

Tom

Drye,

Jerry Wayne

Waskey,

Jack

Weitz,

Seth

Unidentified Variance/Roundrng

SALARIES
$ 19,323,382.05$

TRAVEL 143,000.71

SECTION II FINDINGS, QUESTIONED COSTS AND OTHER ITEMS

DALTON STATE COLLEGE SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS
YEAR ENDED JUNE 3 0 , 2 0 1 1
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. OTHER ITEMS (NOTED FOR MANAGEMENT'S CONSIDERATION] No matters were reported.