Gordon College, Barnesville, Georgia, independent accountant's report on applying agreed-upon procedures for fiscal year ended June 30, 2011

GORDON COLLEGE
BARNESVILLE, GEORGIA
INDEPENDENT ACCOUNTANT'S
REPORT ON APPLYING AGREED-
UPON PROCEDURES
FOR FISCAL YEAR ENDED
JUNE 30,2011
-Georgia Depaxtment of Audits andAccounts
LL
State Auditux

GORDON COLLEGE
- TABLE OF CONTENTS -

INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES
EXH IBlTS
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

Page
1 2

RUSSELLW. HINTON
STATE AUDITOR
(404) 166-2174

DEPARTMENOTF AUDITSAND ACCOUNTS
270 Washington Street, S.W., Suite 1-1 56 Atlanta, Georgia 30334-8400
December 1 4 , 2 0 1 1

Members of the State Board of Regents of the UniversitySystem of Georgia
and Honorable Shelley Nickel, Interim President Gordon College
Independent Accountant's Report on A ~ ~ l y i nARareed-Upon Procedures
Ladies and Gentlemen:
We have performed the procedures enumerated below, which were agreed to by the College 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 College's 2 0 1 1Annual Financial Report for inclusion in the University System of Georgia's Annual Financial Repo/t;the State of Georgia's ComprehensiveAnnual Financial Reptt ((CAFR) and Single Audit Repo/S and to assist you in assessing the accuracy of the budget basis information provided in the Summary Budget Compadmn and Surplus Analysis Report; Siatement of Funds Available
and Expenditures Compared to Budget By Progtam and Funding Source, and the Statement of Changes
To Fund Balance By P q r a m and Funding Source which are attached as Exhibits A, B and C, respectively. Gordon College's management is responsible for the financial information reported to the University System Office in the College'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 College's general ledger.
We did not note any exceptions as a result of our procedures.
2. Obtain the College's GAAP basis Statement of Net Assets and Statement of Revenues hpenses 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 College's accounting records.
We did not note any exceptions as a result of our procedures.

3. Obtain the College'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 College'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.
bceptions were noted as a result of our procedures performed on Notes to the Financial Statements.
- Note l b Detail of Unrestricted Net Assets was correct in total, but R & R Reserve
was overstated and Reservefor Encumbranceswas understatedfor $24,980.
Note 11- Retirement Plans Table summarizingthe College's contributions by defined benefit plan had $21,049 for 2009 ERS RequiredContributioninstead of correct amount of $17,792.
5. Review the College's year end GAAP basis journal entries. Obtain documentation for GAAP journal entries and confirm that the entries were posted to the College'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 College'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 College'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 College'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 Analysjs Report (Exhibit A), Statement of Funds Available and Expenditures Cumpared to Budget By Program and Funding Source (Exhibit 6) 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 College's accounting records and determine if any budget overexpenditures exist.
A portion of Fiscal Year 2012 activity was incorrectly included in Fiscal Year 2011 Budgetary Statements. Cash was understated by $54,479.62 and Expenditures
were overstated by $54,479.62. This exception caused Unreserved - Surplus to be
understated$10,774.60. Adjusting entrieswere made to correctthe error.
10. Obtain documentation for Budget basis reserves reported by College on the Summary Budget Comparjson and Surplus Analysis Report(Exhibit A). Confirm that the reserves are properly documented, valid and appropriate.
A portion of Fiscal Year 2012 activity was incorrectly included in Fiscal Year 2011 Budgetary Statements. The Reserve for Tuition Carry-Over was understated by $41.442.49. The Reserve for Technology Fees was understated by $2,262.53. An adjustingentry was madeto correctthe error.
11. Review the H.O.P.E. Scholarship Program reconciliation between the College 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 College's financial records.
We did not note any exceptions as a result of our procedures.
12. Review the Schedule of Expendituresof Federal Awards information submitted by the College for inclusion in the Statewide Single Audit. Confirm that the information is properly presented and supported by the College's accounting records.
We did not note any exceptions as 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,
~ u s i e lWl . Hinton, CPA, CGFM State Auditor

EXHIBITS

GORDON COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT
YEAR ENDEDJUNE 3 0 , 2 0 1 1

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
Teaching Excess of Funds Available over Expenditures
FUND BALANCE JULY 1
Resewed Unreserved
ADJUSTMENTS
Prior Year Payables/Expenditures Unreserved Fund Balance (Surplus) Returned
to Board of Regents - Univers~tySystem Office
Year Ended June 3 0 , 2 0 1 0 Early Return of Surplus in Current Fiscal Year Prior Year Reserved Fund Balance Included in Funds Available FUND BALANCEJUNE 3 0
SUMMARY OF FUND BALANCE
Reserved Department Sales and Services Technology Fees Restr~cted/SponsoredFunds Uncollectible Accounts Receivable fuitlon Carry-Over
Total Reserved
Unreserved Surplus
Total Fund Balance

BUDGET

ACTUAL

VARIANCE FAVORABLE (UNFAVORABLE)

GORDON COLLEGE STATEMENT OF FUNDS AVAILABLE AND WPENDITURESCOMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE
YEAR ENDED JUNE 3 0 . 2 0 1 1

Teaching State Appropriat~on State General Funds Federal Funds American Recovety and ReinvestmentAct Federal Stabilization Funds Other Funds
Total Teaching

Orlgtnal Appropriation

Amended Appropr~ation

F~nal Budget

Current Year Revenues

Funds Available Compared to Budget

Prior Year

Adju~tmentsand

Total

Carry-Over

Program Transfers Funds Available

variance Posltlve (Negative)

Expenditures Compared to Budget

Variance

Actual

Posltlve (Negat~ve)

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

GORDON COLLEGE STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE
YEAR ENDED JUNE 30,2011

Teaching State Appropriation State General Funds Federal Funds American Recovery and Reinvestment Act Federal Stabilization Funds Other Funds
Total Teachfng
Prior Year Resewes Not Available for Expenditure Uncollectible Accounts Receivable

B e g n n ~ n gFund Balance/(Deficit)
July 1

Fund Balance Carried Over from
Prior Perfod as Funds Avaflable

Return of FfscalYear 2010
Surplus

Prfor Period Adjustments

Budget U n ~Ttotals

Other Adjustments

Early Return F~scaYl ear 2011
Surplus

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

Endlng Fund Balance/(Defic~t)
June 3 0

Analysis of Ending Fund Balance

Reserved

Surplus/(Deficit)

Total

Summary of Endlng Fund Balance Resewed
Department Sales and Serv~ces Technology Fees Restrlcted/Sponsored Funds Uncollectible Accounts Receivable Tu~tionCarry-Over Unreserved Surplus
Total EndingFund Balance June 3 0

$

100,840.43

123.753.04

289.907.10

54.076.67

293.713.57

$

100.840.43

123.753.04

289,907.10

54.076.67

293,713.57

$

11.952.60

11,952.60

$

- - 862.290.81 $

11.952.60 $

874,243.41