East Georgia College, Swainsboro, Georgia, independent accountant's report on applying agreed-upon procedures for fiscal year ended June 30, 2010

EAST GEORGIA COLLEGE
SWAINSBORO, GEORGIA
INDEPENDENT ACCOUNTANT'S
REPORT ON APPLYING AGREED-
\ UPON PROCEDURES 'FORFISCAL YEAR ENDED JUNE 30,0010

Georgia Department of

Audits and-A

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EAST GEORGIA COLLEGE
- TABLE OF CONTENTS -
INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES EXHIBITS
A SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT B STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING
SOURCE COMPARED TO BUDGET

Page

RUSSELLW. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMEONFTAUDITASND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
November 18,2010

Members of the State Board of Regents of the University System of Georgia Honorable John B. Black, President East Georgia College
Independent Accountant's Report on Applving 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 UniversitySystem of Georgia, solely to assist you in assessing the accuracy of the financial information reported to the University System Office in the College's 2010 Annual Financial Report for inclusion in the University System of Georgia's Annual Financial Report,the State of Georgia's ComprehensiveAnnual Financial Report (CHFR) 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 of Program Revenues and Expendttures by Funding Source Compared to Budget which are attached as Exhibits A and B, respectively. East Georgia 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 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 College's general ledger.
We did not note any exceptions as a result of our procedures.
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 properlysupports 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, LongTerm Debt, Lease Obligations and Retirement Plans have been properly reported.
The Deposits note disclosure information was not properly reported. Note 2 of the Annual Financial Report reported June 30, 2010, ending bank balance for deposits as $2,641,735; however, the ending bank balance per documentation was $2,642,972, resulting in an improper variance of $1,237 in the financial disclosure.
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 2009. Confirm that these write-off requests have been approved by the State Accounting Officer and have been posted to the College's financial statements.
The College wrote off accounts receivable of $150 without appropriate write-off request approval from the State Accounting Officer. The College has been notified that this account receivable should be reestablished on the accounting records until approval from the State Accounting Officer is obtained.
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 College'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 Anahsis 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 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 the College on the Summaw Budget Comparison and Surplus Analysis Report (Exhibit A). Confirm that the reserves are properly documented, valid and appropriate.
Procedures revealed that a reserve for Uncollectible Accounts Receivables in the
amount of $1,064.05was not established by the entity. An adjustment was
proposed to properly reflect this reserve on the budget basis financial statements.
Additionally, procedures revealed that the Inventory reserve was setup for $850.00
greater than the quarterly average inventory balance.
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.
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.
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.
Payroll benefits were not reconciled on a quarterly basis, resulting in reconciling items and variances that were not explained or resolved in a timely manner.
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,

I

.

usd dell W. Hinton, CPA, CGFM
State Auditor

EXHIBITS

EAST GEORGIA COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT
YEAR ENDED JUNE 30,2010

REVENUES
State Appropriation State General Funds
Federal Funds Other Funds
Total Revenues
CARRY-OVER FROME532REB
Transfer from Reserved Fund Balance
Total Funds Available
EXPENDITURES
Teaching
Excess of Funds Available over Exoendltures
FUND BALANCE JULY 1
Re~eNed Unreserved
ADJUSTMENTS
Prlor Year Payables/Expenditures Prtor Year Rece~vables/Revenues Early Remittance of Surplus in Current FlscalYear Unreserved Fund Balance (Surplus) Returned
to Board of Regents - University System Offtce
Year Ended June 30,2009 Prtor Year Resewed Fund Balance Included in Funds Available
FUND BALANCEJUNE 3 0
SUMMARY OF FUND BALANCE
Reserved Department Sales and Services Indirect Cost Recoveries Technology Fees Restricted/Sponsored Funds Uncollectible Accounts Receivable Tuition Carry-Over Inventories
Total Resewed
UnreSeNed Surplus
Total Fund Balance

BUDGET

ACTUAL

VARIANCE FAVORABLE (UNFAVORABLE)

EAST GEORGIA COLLEGE STATEMENT OF PROGRAM REVENUES AND MPENDITURES BY FUNDING SOURCE COMPARED TO BUDGF3
YEAR ENDED J U N E 3 0 . 2 0 1 0

Special Fundlnglnluative Smte Apprcpnauon S M e General Funds

Orianal Approprnabon

Final Budget

Current Year Revenues

Funds Available Compared to Budget

Prnor Year Carry-Over

Toll Funds Available

varnnce POSItlw INeganvel

Teschlng State Approprlatlon State Geneml Funds Federal Funds Amellcan Recoveryand Reinvestment Act of 2W9 Federal Stabllbrat4on Funds Orher Funds
Total Teacnlng

Grand T m l s - #I Programs

Cxpendltures Compared to Budget

Varlanoe

Posltlve

Actual

(Negatlve)

Actual FundsAvallable
Over/(Under) Expendatures

Prior Pertod Adjustments

Other Adjustments

Early Rern~tfancs of Surplus

Program Fund
Balances

Transfers

program Fund -lances

Reselve

Surplus

Total Fund Balance

995.26500 20.019.79767

0 00 276.142 33

0 00 293.971 06

0 00 6,13785

0 00 -1,065 04

0 00 0 00

000 299.043.87

OM) 0.00

0 00 290.44975

0 00 8,59412

0 00 299.04387

Unexpendable Reselves Unwllectlble Accounts Rece~vable 1 nventorles