East Georgia College, Swainsboro, Georgia, independent accountant's report on applying agreed-upon procedures for the fiscal year ended June 30, 2007

STATE OF GEORGIA
DEPARTMENT OF AUDITS AND ACCOUNTS
EAST GEORGIA COLLEGE SWAINSBORO, GEORGIA
INDEPENDENT ACCOUNTANTS REPORT ON APPLYING AGREED-UPON PROCEDURES
FOR THE FISCAL YEAR ENDED JUNE 30, 2007
Russell W. Hinton State Auditor

EAST GEORGIA COLLEGE - TABLE OF CONTENTS -
INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES EXHIBIT
A BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT

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
November 8, 2007

Members ofthe Board of Regents of the University System of Georgia Honorable John Black, President East Georgia 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 2007 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 Budget Comparison and Surplus Analysis Report, which is attached as Exhibit A. 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.
I. 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.
Cash was not properly reconciled to amounts reported on the financial statements. A variance of $794 was noted between the reconciliations and the amounts reported on the AFR.
Restricted Expendable Net Assets were not properly reported on the financial statements. A variance of$11,501 was noted between the general ledger and the amount reported on the financial statements.

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.
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.
The Significant Commitments note disclosure was not properly reported. Note 9 reported no significant commitments; however, documentation revealed significant commitments in the amount of $1,745,769.
The Lease Obligations note disclosure information was not properly reported. Note 10 of the Annual Financial Report reported June 30, 2007 future commitments for Operating Leases as $126,000; however, documentation revealed that future commitments should be reported as $127,430. The note disclosure included expense for rental of real property and equipment under operating leases of $77,181 which incorrectly included principal payments on Capital Leases of $37,451.
The Retirement Plans note disclosure was not properly reported. Note 11 reported fiscal year 2006 contributions of $302,018; however, documentation revealed contributions in the amount of $254,971.
The Post-Employment Benefits Other Than Pension Benefits note disclosure was not properly reported. Note 14 reported employee contributions of $54,337 and employer contributions of $151,343 while documentation revealed contributions of $54,225 and $147,026, respectively.
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 ofprior 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 ofwrite-offrequests for accounts receivable less than $3,000.00 for fiscal year 2007. 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.
8. Verify that the listing ofsalaries, travel, and per diem and fees reported to the Department of Audits is in accordance with O.C.G.A. 50-6-27 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 $14,371 was noted.
9. Review year end Budgetary Statements including the Budget Comparison and Surplus Analysis Report (Exhibit A). 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 Budget Comparison and Surplus Analysis Report (Exhibit A). Confirm that the reserves are properly documented, valid and appropriate.
The College could not document a budgetary worksheet adjustment which reduced year-end surplus by $502.11. Undocumented adjustments could lead to improper reporting of year-end surplus.
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 of 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.
The Schedule of Expenditures of Federal Awards did not include $2,177,277 in nonmonetary expenditures for the FFEL (84.032) program. An adjustment was made to the Schedule of Expenditures of Federal Awards to correct this omission.
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 ofthe specified users listed above and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
~~-~ Russell W. Hinton, CPA, CGFM State Auditor
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EXHIBIT

EAST GEORGIA COLLEGE BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT
YEAR ENDED JUNE 30, 2007

EXHIBIT"A"

REVENUES
State Appropriation State General Funds
Federal Funds Other Funds
Total Revenues
EXPENDITURES
Public Service/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, 2006
FUND BALANCE JUNE 30

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 5,518,807.00 $ 5,518,807.00 $

3,324,366.00

2,813,437.08

6,806,232.00

6,013,102.70

$ 15,649,405.00 $ 14,345,346.78 $

0.00 -510,928.92 -793,129.30
-1,304,058.22

$

737,042.00 $

733,077.26 $

14,912,363.00

13,579,879.96

$ 15,649,405.00 $ 14,312,957.22 $

$

0.00 $

32,389.56 $

3,964.74 1,332,483.04
1,336,447.78
32,389.56

42,715.01 29,750.09

2,119.62 -283.53

-29,750.09

$

76,940.66

SUMMARY OF FUND BALANCE
Reserved Department Sales and Services Indirect Cost Recovery Technology Fees Restricted/Sponsored Funds Uncollectible Accounts Receivable Inventories
Total Reserved
Unreserved Surplus

$

26,440.17

4,423.53

14,271.03

18,513.01

2,484.73

720.00

$

66,852.47

10,088.19

Total Fund Balance

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