GEORGIA COLLEGE & STATE UNIVERSITY
MILLEDGEVILLE, GEORGIA
INDEPENDENT ACCOUNTANT'S
REPORT ON APPLYING AGREED-
UPON PROCEDURES
FOR FISCAL YEAR ENDED
JUNE 30,2010
Georgia Department of Audits ar 1Accounts
State Auditor I

GEORGIA COLLEGE & STATE UNIVERSITY - TABLE OF CONTENTS -
INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES EXHIBITS
A SUMMARYBUDGETCOMPARISONANDSURPLUSANALYSISREPORT B STATEMENT OF PROGRAM REVENUESAND EXPENDITURES BY FUNDING
SOURCE COMPARED TO BUDGET

RUSSELLW. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMEONFTAUDITASND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
January 1 3 , 2 0 1 1

Members of the State Board of Regents of the UniversitySystem of Georgia Honorable Dorothy Leland, President Georgia College & State University
lnde~endenAt ccountant's Report on Ars~lvingAgreed-Upon Procedures
Ladies and Gentlemen:
We have performed the procedures enumerated below, which were agreed to by the University 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 University's 2010 Annual Financial Report for inclusion in the University System of Georgia's Annual Financial Report, 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 Analysfi ReporC and Statement of Program Revenues and Expendi.tures by Funding Source Compared to Budget which are attached as Exhibits A and B, respectively. Georgia College & State University's management is responsible for the financial information reported to the University System Office in the University'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 University's general ledger.
We did not note any exceptions as a result of our procedures.
2. Obtain the University'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 University's accounting records.
We did not note any exceptions as a result of our procedures.

3. Obtain the University'sStatement 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.
The University omitted $5,864 of Gifts Reducing Proceeds of Gifts and Grants Receivedfor Other than Capital Purposes in the Non-CashActivity section of the Cash Flows statement.
4. Obtain the University'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 University omitted the credit quality risk information related t o investments in the Deposits and Investments note disclosure. In addition, capital lease interest payments were excluded from the minimum lease payments schedule in Lease Obligations note disclosure.
5. Review the University's year end GAAP basis journal entries. Obtain documentation for GAAP journal entries and confirm that the entries were posted to the University'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 University'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 2010. Confirm that these write-off requests have been approved by the State Accounting Officer and have been posted to the University's financial statements.
We did not note any exceptions as a result of our procedures.
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 University'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 Analysk Reporf (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 University'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 University on the Summary Budget Comparison and Surplus Analysis Report (Exhibit A). Confirm that the reserves are properly documented, valid and appropriate.

The University's reserve for Tuition Carry-Over was improperly calculated.

Reserves

Originally Reported Amount

Actual Amount

Variance

Tuition Carry-Over Surplus

$ 899,424.28 $ 892,496.51$ -6,927.77 $ 4,045.78$ 10,973.55$ 6,927.77

The exceptions noted above were corrected by the Universityand resubmitted.

11.Review the H.O.P.E. Scholarship Program reconciliation between the University 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 University'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 University for inclusion in the Statewide Single Audit. Confirm that the information is properly presented and supported by the University'saccounting records.

We did not note any exceptionsas 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.

We did not note any exceptionsas a result of our procedures.

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,
~us$elWl . Hinton, CPA, CGFM State Auditor

EXHIBITS

GEORGIA COLLEGE & STATE UNlVERSlN 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 FROM PRIOR YEAR
Transfer from Reserved Fund Balance
Total Funds Available
EXPENDITURES
Teaching
Excessof Funds Available over Expenditures
FUND BALANCE JULY 1
Reserved Unreserved
ADJUSTMENTS
Pr~oYr ear Payables/Expenditures Prior Year Rece~vables/Revenues Unreserved Fund Balance (Surplus) Returned
to Board of Regents - University System Office Year EndedJune 30.2009
Early Remittance of Surplus in Current Fiscal Year Prior Year Reserved Fund Balance Included in Funds Ava~lable
FUND BALANCE JUNE 3Q
SUMMARY OF FWD BALANCE
Reserved Department Sales and Servlces Indirect Cost Recoveries Technology Fees Restr~cted/Sponsored Funds Uncollectlble Accounts Rece~vable Tu~tionCarry-Over
Total Reserved
Unreserved Surplus
Total Fund Balance

BUDGET

ACTUAL

VARIANCE FAVORABLE (UNFAVORABLE)

GEOffilA COLLEGE& STATE UNlVEffiliY STATEMENTOF PROGRAM RNENUESAND EXPENDITURESBY FUNDING SOURCE COMPAREDTOBUDGET
YEAR ENDED JUNE SO 2010

Spsaal Funding Initiauva State hpproprlatlon State Gsnoral Funds

Orgnal Approprlatlon

Final Budget

Current Year Revenues

Funar AvallableCemparea to Budget

PrlorYear
carvover

Total Funds Available

Variance Pos~Uve (Negative)

Teaching State Appopnat~on State General Funds Federal Funds Arnerlcan Recoveryand RemverrrnentAct of 2093 Federal Stabd~zatlonFunds Dmer Funds
Total Teachlng

Grena Totals -All Programs

Expendtures Compared to Budget

varoance

Posltlve

Actual

(Nogetlvel

Actual Funds Ava~lable
Ovei/(Under) Expenditures

Prlor Perrod Ad)ustmeots

Other Adjustments

Early Remittance ofSurplus

Program Fund
&lances

Transfers

Program Fund Balances

Reserve

Surplus

Total Fund Balance

Unexpendable Reserves U n ~ l l e c t b lAeccounts Receivable