GEORGIA SOUTHWESTERN STATE UNIVERSITY
AMERICUS, GEORGIA
INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREEDUPON PROCEDURES FOR FISCAL YEAR ENDED JUNE 30, 2012
Georgia Department of Audits and Accounts Greg S. Griffin State Auditor

GEORGIA SOUTHWESTERN STATE UNIVERSITY - TABLE OF CONTENTS -

INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES
EXHIBITS
A SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT
B STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE
C STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE

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GREG S. GRIFFIN
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
December 4, 2012

Members of the State Board of Regents of the University System of Georgia Honorable Kendall Blanchard, President Georgia Southwestern State University
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 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 2012 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 Analysis Report, Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source, and the Statement of Changes To Fund Balance By Program and Funding Source which 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.
Cash flows from Operating Activities were improperly reconciled on the Statement of Cash Flows. The University made adjustments to "Payments to Suppliers" of $7,375.39 and "Receivables, net" in the Reconciliation of Operating Loss to Net Cash Provided (Used) By Operating Activities of $9,870.55. Neither entry could be adequately explained by the University.
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 2012. 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 Compared 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'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.
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.
The University incorrectly reported the Federal Direct Student Loan (CFDA 84.268) activity as Nonmonetary. Loans made during the year from this program should be reported as Monetary. This error was corrected.
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,

GSG:as

Greg S. Griffin State Auditor

EXHIBITS

GEORGIA SOUTHWESTERN STATE UNIVERSITY SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT
YEAR ENDED JUNE 30, 2012

EXHIBIT "A"

REVENUES

State Appropriation

State General Funds

$

Other Funds

Total Revenues

$

ADJUSTMENTS AND PROGRAM TRANSFERS

CARRY-OVER FROM PRIOR YEARS

Transfers from Reserved Fund Balance

Total Funds Available

$

EXPENDITURES

Special Funding Initiative

$

Teaching

Total Expenditures

$

Excess of Funds Available over Expenditures

$

FUND BALANCE JULY 1

Reserved Unreserved

ADJUSTMENTS

Prior Year Payables/Expenditures Unreserved Fund Balance (Surplus) Returned
to Board of Regents - University System Office Year Ended June 30, 2011
Prior Year Reserved Fund Balance Included in Funds Available
FUND BALANCE JUNE 30

BUDGET
10,885,568.00 $ 29,611,529.00 40,497,097.00 $
0.00 0.00 40,497,097.00 $ 175,000.00 $ 40,322,097.00 40,497,097.00 $ 0.00 $
$

ACTUAL

VARIANCE FAVORABLE (UNFAVORABLE)

10,885,568.00 $ 28,010,626.97
38,896,194.97 $
-30,000.00

0.00 -1,600,902.03
-1,600,902.03
-30,000.00

424,701.35 39,290,896.32 $

424,701.35 -1,206,200.68

175,000.00 $ 38,360,446.34
38,535,446.34 $
755,449.98 $

0.00 1,961,650.66
1,961,650.66
755,449.98

543,632.52 6,268.17

1,638.29
-6,268.17 -424,701.35 876,019.44

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 Reserved
Unreserved Surplus
Total Fund Balance

$

8,251.50

45,011.18

159,236.58

233,214.82

106,060.00

290,087.78

33,175.00

$

875,036.86

982.58

$

876,019.44

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GEORGIA SOUTHWESTERN STATE UNIVERSITY STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE
YEAR ENDED JUNE 30, 2012

Special Funding Initiative State Appropriation State General Funds
Teaching State Appropriation State General Funds Other Funds
Total Teaching
Total Operating Activity

Original Appropriation

Amended Appropriation

Final Budget

Current Year Revenues

$

175,000.00 $

175,000.00 $

175,000.00 $

175,000.00

$

10,913,845.00 $ 10,913,845.00 $ 10,710,568.00 $ 10,710,568.00

23,296,763.00

23,296,763.00

29,611,529.00 28,010,626.97

$

34,210,608.00 $ 34,210,608.00 $ 40,322,097.00 $ 38,721,194.97

$

34,385,608.00 $ 34,385,608.00 $ 40,497,097.00 $ 38,896,194.97

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EXHIBIT "B"

Funds Available Compared to Budget

Prior Year

Adjustments and

Total

Carry-Over

Program Transfers Funds Available

Variance Positive (Negative)

Expenditures Compared to Budget

Variance

Actual

Positive (Negative)

Excess (Deficiency) of Funds Available
Over/(Under) Expenditures

$

0.00 $

0.00 $

175,000.00 $

0.00 $

175,000.00 $

0.00 $

0.00

$

0.00 $

424,701.35

$ 424,701.35 $

0.00 $ 10,710,568.00 $ -30,000.00 28,405,328.32
-30,000.00 $ 39,115,896.32 $

0.00 $ 10,709,603.41 $ -1,206,200.68 27,650,842.93
-1,206,200.68 $ 38,360,446.34 $

964.59 $ 1,960,686.07
1,961,650.66 $

964.59 754,485.39
755,449.98

$ 424,701.35 $

-30,000.00 $ 39,290,896.32 $

-1,206,200.68 $ 38,535,446.34 $

1,961,650.66 $

755,449.98

- 3 -

GEORGIA SOUTHWESTERN STATE UNIVERSITY STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE
YEAR ENDED JUNE 30, 2012

Special Funding Initiative State Appropriation State General Funds
Teaching State Appropriation State General Funds Other Funds
Total Teaching
Total Operating Activity
Prior Year Reserves Not Available for Expenditure Inventories Uncollectible Accounts Receivable

Beginning Fund Balance/(Deficit)
July 1

Fund Balance Carried Over from
Prior Period as Funds Available

Return of Fiscal Year 2011
Surplus

Prior Period Adjustments

$

5,253.10 $

0.00 $

-5,253.10 $

0.00

$

0.00 $

425,716.42

$

425,716.42 $

$

430,969.52 $

0.00 $ -424,701.35
-424,701.35 $
-424,701.35 $

0.00 $ -1,015.07
-1,015.07 $
-6,268.17 $

17.99 1,620.30
1,638.29
1,638.29

33,175.00 85,756.17

0.00 0.00

0.00 0.00

0.00 0.00

Budget Unit Totals

$

549,900.69 $

-424,701.35 $

-6,268.17 $

1,638.29

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EXHIBIT "C"

Other Adjustments

Early Return Fiscal Year 2012
Surplus

Excess (Deficiency) of Funds Available
Over/(Under) Expenditures

Ending Fund Balance/(Deficit)
June 30

Analysis of Ending Fund Balance

Reserved

Surplus/(Deficit)

Total

$

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00

$

0.00 $

-20,303.83

$ -20,303.83 $

$ -20,303.83 $

0.00 $ 0.00
0.00 $
0.00 $

964.59 $ 754,485.39
755,449.98 $
755,449.98 $

982.58 $ 735,801.86

0.00 $ 735,801.86

736,784.44 $ 735,801.86 $

736,784.44 $ 735,801.86 $

982.58 $ 0.00
982.58 $
982.58 $

982.58 735,801.86
736,784.44
736,784.44

0.00 20,303.83

0.00 0.00

0.00 0.00

33,175.00 106,060.00

33,175.00 106,060.00

0.00 0.00

33,175.00 106,060.00

$

0.00 $

0.00 $

755,449.98 $

876,019.44 $ 875,036.86 $

982.58 $

876,019.44

Summary of Ending Fund Balance Reserved
Department Sales and Services Indirect Cost Recoveries Technology Fees Restricted/Sponsored Funds Uncollectible Accounts Receivable Tuition Carry-Over Inventories Unreserved Surplus
Total Ending Fund Balance - June 30

$

8,251.50

45,011.18

159,236.58

233,214.82

106,060.00

290,087.78

33,175.00

$

$ 875,036.86 $

$
982.58 982.58 $

8,251.50 45,011.18 159,236.58 233,214.82 106,060.00 290,087.78 33,175.00
982.58
876,019.44

- 5 -