GEORGIA I SOUTHWESTERN STATE UNIVERSITY AMERICUS, GEORGIA INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED- UPON PROCEDURES FOR FISCAL YEAR ENDED JUNE 30,2011 . . , . . Georgia De-t of I Russell w.Hinton state ~uditurI GEORGIA SOUTHWESTERN STATE UNIVERSITY - TABLE OF CONTENTS - INDEPENDENTACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES EXH IBlTS A SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT 1 B STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE 2 C STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE EXH I BITS RUSSELLW. HINTON STATE AUDITOR (404) 866-2174 DEPARTMENOTF AUDITSAND ACCOUNTS 270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 December 8,2011 Members of the State Board of Regents of the University System of Georgia and Honorable Kendall Blanchard, President Georgia Southwestern State University Independent Accountant's Report on A~plvinE&reed-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 2 0 1 1 Annual Financial Report for inclusion in the University System of Georgia's Annual Financial Repoe the State of Georgia's Cbmprehensive Annual Financial Report (C4FR) and Single Audit Repoe and to assist you in assessing the accuracy of the budget basis information provided in the Summa/y Budget Comparison and Surplus Analysis Repart, Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source, and the Statement of Changes To Fund Balance B)I Program and Funding Sourcewhich are attached as Exhibits A, B and C, respectively. Georgia Southwestern 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'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 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. We did not note any exceptions as a result of our procedures. 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 2011. 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 and travel 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 Analysis Report (Exhibit A), Statement of Funds Available and Expenditures ampared to Budget By Program and Funding Source (Exhibit B ) and the Statement of Changes To Fund Balance By Program and Funding Source (Exhibit C). Confirm that budget information presented in these statements supports activity reported in the University'saccounting 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 Repo/t(Exhibit A). Confirm that the reserves are properly documented, valid and appropriate. We did not note any exceptions as a result of our procedures. 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's accounting 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 exceptions as 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, , t ~ u d s e lWl . Hinton, CPA, CGFM State Auditor GEORGIA SOUTHWESTERN STATE UNIVERSITY SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT YEAR ENDED JUNE 30.2011 State Appropr~at~on State General Funds Other Funds Total Revenues ADJUSTMENTS AN0 PROGRAM TRANSFEK CARRY-OVER FROM PRIOR YEARS Transfersfrom Reserved Fund Balance Total Funds Ava~lable Speclal Funding lnitiat~ve Teaching Total Expenditures Excess of Funds Available over Expenditures FUND BALANCE JULY 1 Reserved Unreserved ADJUSTMFNTS Prior Year Payables/Expenditures Unreserved Fund Balance (Surplus) Returned to Board of Regents - University System Office Year Ended June 30.2010 Prior Year Reserved Fund Balance Included in Funds Available FUND BALANCFJUNE 3Q SUMMARY OF FUND BAIANCF Reserved Department Sales and Services lndlrect Cost Recover~es Technology Fees Restricted/Sponsored Funds Uncollectible Accounts Receivable T u ~ t ~ oCnarry-Over Inventories Total Reserved UnreSe~ed Surplus Total Fund Balance BUDGET ACTUAL EXHIBIT "A" VARIANCE - FAVORABLE (UNFAVORABLE) GEORGIA SOUTHWESTERN STATE UNIVERSIlY STATEMENT OF FUNDSAVAllABLE AND EXPENDITURESCOMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE YEAR ENDED JUNE 30.2011 Special FundingInitiative State Appropriation State General Funds Teaching State Appropriation State General Funds Federal Funds American Recovery and Re~nvestmenAt ct Federal Stabilization Funds Other Funds Total Teaching Total Operating Actlv~ty Or~ginal Appropriation Amended Appropriation Final Budget Current Year Revenues EXHIBIT '8" Funds Available Compared to Budget Prior Year Adjustments and Total Carry-Over Program Transfers Funds Available Var~ance Positive (Negative) Expenditures Compared to Budget Variance Actual Positive (Negative) Excess (Deficiency) of Funds Available Over.A.Under.) Expend~tures GEORGIA SOUTHWESTERN STATE UNIVERSITY STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE YEAR ENDEDJUNE 30.2011 Special Funding lnitiatlve State Appropriat~on State General Funds Teaching State Appropriation State General Funds Federal Funds American Recoveryand ReinvestmentAct Federal Stabil~zat~oFnunds Other Funds Total Teach~ng Total OperatingAct~vity Prior Year Reserves Not Available for Expenditure Inventories Uncollectible Accounts Receivable Beanning Fund Balance/(Deficit) July 1 Fund Balance Carried Over from Prior Period as FundsAvailable Return of F~scaYl ear 2010 Surplus Pr~oPr eriod Adjustments Budget Unit Totals Other Adjustments Excess (Def~ciency) of Funds Available Over/(Under) Expenditures Ending Fund Balance/(Defic~t) June 30 Analysis of End~ngFund Balance Resewed Surplus/(Deficit) Total Summary of End~ngFund Balance Reserved Department Sales and Services Indirect Cost Recoveries Technology Fees Restricted/Sponsored Funds UncollectibleAccounts Rece~vable Tuit~onCarry-Over Inventories UnreSe~ed Surplus Total Ending Fund Balance -June 30