STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
MANAGEMENT REPORT GAINESVILLE COLLEGE GAINESVILLE, GEORGIA
AN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA YEAR ENDED JUNE 30, 2005
Russell W. Hinton State Auditor

GAINESVILLE 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 Martha T. Nesbitt, President Gainesville 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 Gainesville College. Accordingly, the financial statements and compliance activities of Gainesville 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 Gainesville 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 ofthe management ofGainesville College, and members ofthe Board ofRegents ofthe University System ofGeorgia and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

Lo.~

RWH:as

State Auditor

SELECTED FINANCIAL INFORMATION - 1-

GAINESVILLE COLLEGE BALANCE SHEET (STATUTORY BASIS}
"A" RESIDENT INSTRUCTION JUNE 30, 2005
ASSETS
Cash and Cash Equivalents Accounts Receivable
Federal Financial Assistance Other Prepaid Expenditures
Total Assets
LIABILITIES AND FUND EQUITY
Liabilities Payroll Withholdings Accounts Payable Deferred Revenue
Total Liabilities
Fund Balances Reserved Continuing Education Indirect Cost Recoveries Technology Fees Restricted Funds Unreserved Undesignated Surplus Regular
Total Fund Balances
Total Liabilities and Fund Balances

EXHIBIT"A"

$ 1,790,904.84 40,711.34
797,207.47 623,176.63
$ 3,252,000.28

$

4,712.53

1,949,494.66

1,233,436.12

$ 3,187,643.31

$

21,706.32

8,922.23

19,023.96

8,804.97

5,899.49

$

64 356.97

$ 3,252,000.28

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.
-3-

GAINESVILLE 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 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

$

31,413.90

816.22

$

32,230.12

$

5,899.49

27,043.58

$

32,943.07

$

816.22

$ ====6=4=,3=5=6=.9=7

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-

GAINESVILLE 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)

$

12.658,689.00 $ 12,658,689.00 $

0.00

13,203,280.00 13,122,429.19

-80,850.81

$

25,861,969.00 $ 25,781,118.19 $ _ _ _--=-80::.!,8=-:5:.=0.:..::.8~1

EXPENDITURES
Personal Services: Education, General and Departmental Services Sponsored Operations
Operating Expenses: Education, General and Departmental Services Sponsored Operations
Capital Outlay Special Funding Initiative

$

16,219,494.00 $ 16,057,329.80 $

415,105.00

440,528.87

6,015,420.00 2,750,748.00
450,376.00 10 826.00

6,063,703.45 2,731,310.49
450,376.00 10,826.00

162,164.20 -25,423.87
-48,283.45 19,437.51
0.00 0.00

$

25,861,969.00 $ 25,754,074.61 $ _ _ _1.;_;0:..:.7.:.:,8:.:;9_;_4=-=3~9

Excess of Revenues over Expenditures

$

27,043.58 $ ==~2,;,.7,,;,,04,;,;;3;,;,,;.5;,;,,8

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-

GAINESVILLE COLLEGE RECONCILIATION OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30. 2005

EXHIBIT"D"

Totals per Annual Supplement
Prepaid Salaries June 30, 2005 June 30, 2004
Compensated Absences June 30, 2005 June 30, 2004
Salary Legal Settlement
Adjustments Shared Services on Jointly Staffed Personnel University of Georgia Miller, Kristen
Unidentified Variance
Totals per GAAP Basis as Reported in Consolidated Annual Financial Report

SALARIES $ 13,625,680.66 $

TRAVEL 168,263.90

-543,707.57 509,783.50

585,601.71 -520,542.76
5,657.35

2,950.00 63,701.53

$ 13,729,124.42 $ ==1=6=8e!e=,2=63=.9=0=

-7-

SECTION II FINDINGS AND QUESTIONED COSTS

GAINESVILLE COLLEGE SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2005

FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

GENERAL LEDGER Inadequate Accounting Procedures Finding Control Number: FS-575-05-01

Condition:

The College failed to ensure that salaries expense recorded on the general ledger properly supported and reconciled with salary expense information reported to the Department ofAudits in accordance with the Official Code of Georgia Annotated (OCGA) 50-6-27.

Criteria:

OCGA 50-6-27 requires that "each office, institution, board, department, commission, authority, university, college, and local board of education is required and directed to submit to the state auditor, in a format prescribed by the state auditor, a listing of all personnel of such office, institution, board, department, commission, authority, university, college, or local board of education showing name, title, or functional area, salary and travel expense for each individual."

Questioned Cost: NIA

Information:

The detailed listing of salary payments made to employees, as submitted by the College to the Department ofAudits, was not reconciled with the general ledger. The unidentified variance of $63,701.53 is reflected in the Reconciliation of Salaries and Travel.

Cause:

College management failed to have procedures in place to ensure that salary payments reported to the Department of Audits were supported by and reconciled with salary expense recorded in the general ledger.

Effect:

Failure to have adequate salary reconciliation and reporting procedures in place resulted in improper reporting of salaries.

Recommendation:

The College should design and implement procedures to ensure that salary information reported to the Department of Audits is properly supported by and reconciled with salaries expense recorded on the general ledger.

FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

No matters were reported.