Management report Gordon College, Barnesville, an organizational unit of the state of Georgia year ended June 30, 2005

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

GORDON 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
October 5, 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 Lawrence V. Weill, President Gordon 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 ofthe 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 Gordon College. Accordingly, the financial statements and compliance activities ofGordon College were examined to the extent considered necessary in order to express an opinion as to the fair presentation of the 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 Gordon College as of and for the year ended June 30, 2005. Information contained in this report is a by-product of our 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 ofGordon College, and members ofthe Board ofRegents ofthe University System of Georgia and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:gp

State Auditor

SELECTED FINANCIAL INFORMATION - 1-

GORDON COLLEGE BALANCE SHEET (STATUTORY BASIS)
"A" RESIDENT INSTRUCTION JUNE 30. 2005
ASSETS
Cash and Cash Equivalents Accounts Receivable
Federal Financial Assistance Other Prepaid Expenditures Inventories
Total Assets
LIABILITIES AND FUND EQUITY
Liabilities Accrued Payroll Accounts Payable Deferred Revenue Other Liabilities
Total Liabilities
Fund Balances Reserved Inventories Continuing Education Technology Fees Uncollectible Accounts Receivable Unreserved Undesignated Surplus Regular
Total Fund Balances
Total Liabilities and Fund Balances

EXHIBIT"A"

$ 2,101,501.42 27,725.53
135,455.32 5,551.00
35 217.74
$ 2,305,451.01

$

54,170.91

1,480,131.90

548,178.51

124,550.38

$ 2,207,031.70

$

37,611.06

19,891.39

36,720.53

4,050.00

146.33

$

98,419.31

$ 2,305,451.01

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 -

GORDON 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 Non-Mandatory Transfers Excess of Funds Available over (under) Expenditures Exhibit "C"
DEDUCTIONS Unreserved Fund Balance (Surplus) Returned to Board of Regents - Administrative Central Office Year Ended June 30, 2004 Adjustments to Prior Year's Revenues/Receivables
FUND BALANCE - JUNE 30, 2005

$ 88,169.16 12,289.52
$ 100,458.68

$

376.27

189,067.00

-117185.15

$ 72,258.12

$ 12,289.52 62,007.97
$ 74,297.49
$ ==9=8=,4=1=9=.3=1

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 -

GORDON 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

VARIANCE FAVORABLE (UNFAVORABLE)

$ 10,103,609.00 $ 10,103,609.00 $

9,715,217.00

8,506,835.36

0.00 -1,208,381.64

$ 19,818,826.00 $ 18,610,444.36 $ _ ____;-1-'=,2=-=-08:.!.,3.:..:8:..:.1:..:.6..:..4

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

$ 11,364,626.00 $ 10,636,357.31 $

3,727,941.00 4,500,000.00
25,000.00 201,259.00

3,760,668.72 3,393,219.75
739,000.00 198,383.73

728,268.69
-32,727.72 1,106,780.25 -714,000.00
2 875.27

$ 19,818,826.00 $ 18,727,629.51 $ _ _--'1,.:.09.:..1;.,_,1.;..:9c..:.6.:_.4c.:..9

Excess of Revenues over Expenditures

$ -117 185. 15 $ ===-,,;,1,;,,17;,,.,;,,;18;;,;;5~1. ;,;;5

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-

GORDON COLLEGE RECONCILIATION OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2005

EXHIBIT"D"

Totals per Annual Supplement
Accruals June 30, 2005 June 30, 2004
Compensated Absences June 30, 2005 June 30, 2004
Totals per GAAP Basis as Reported in the Consolidated Annual Financial Report

SALARIES
$ 9,105,376.69 $

TRAVEL 112,035.28

55,456.72 -47,972.28

268,568.82 -225,976.57

$ 9,155,453.38 $ ======11=2,l,,;;,0=3=5=28=

-7-

SECTION II FINDINGS AND QUESTIONED COSTS

GORDON COLLEGE SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2005
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.