Macon State College, Macon, Georgia, independent accountant's report on applying agreed-upon procedures for the fiscal year ended June 30, 2008

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
MACON STATE COLLEGE MACON, GEORGIA
INDEPENDENT ACCOUNTANTS REPORT ON APPLYING AGREED-UPON PROCEDURES
FOR THE FISCAL YEAR ENDED JUNE 30, 2008
Russell W. Hinton State Auditor

MACON STATE COLLEGE - TABLE OF CONTENTS -

INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES

EXHIBITS

A SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT

1

B STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING

SOURCE COMPARED TO BUDGET

2

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
January 15, 2009

Members ofthe State Board of Regents ofthe University System of Georgia Honorable David Bell, President Macon State College
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 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 2008 Annual Financial Report for inclusion in 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 andSurplus Analysis Report and Statement ofProgram Revenues andExpenditures by Funding Source Compared to Budget which are attached as Exhibits A and B, respectively. Macon State 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 ofthese procedures is solely the responsibility ofthe parties specified in this report. Consequently, we make no representation regarding the sufficiency ofthe 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 ofNet Assets and Statement ofRevenues, 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 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, Long-Term 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 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 2008. Confirm that these write-offrequests have been approved by the State Accounting Officer and have been posted to the College's financial statements.
The College wrote off an individual accounts receivable of $3,763.00, which is above the maximum write-off allowable by State law for any one account. The College has been notified that this accounts receivable should be added back to their accounting records and cannot be removed per O.C.G.A. Section 50-16-18.
8. Verify that the listing ofsalaries, 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 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 andSurplus Analysis Report (Exhibit A) and Statement ofProgram Revenues andExpenditures by Funding Source Compared to Budget (Exhibit B). Confirm that budget information presented in these statements supports activity reported in the College'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 College 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 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 ofExpenditures ofFederal 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.
Capital Assets - Library Collections were not properly reconciled to amounts reported in the subsidiary documentation. A variance of $181,780.00 was noted between documentation provided by the entity and the amounts reported on the Annual Financial Report.
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.
These agreed-upon procedures do not constitute an audit of the financial statements or any part thereof, the objective ofwhich 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,
;i~ell W. Hinton, CPA, CGFM State Auditor
RWH:as

EXHIBITS

MACON STATE COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT
YEAR ENDED JUNE 30, 2008

EXHIBIT"A"

REVENUES
State Appropriation State General Funds
Other Funds
Total Revenues
CARRY-OVER FROM PRIOR YEAR
Transfer 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 Prior Year Receivables/Revenues Other Adjustments Unreserved Fund Balance (Surplus) Returned
to Board of Regents - University System Office Year Ended June 30, 2007
Prior Year Reserved Fund Balance Included in Funds Available
FUND BALANCE JUNE 30

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$

22,478,451.00 $

22,478,451.00 $

0.00

36 779 459.00

35,569,386.56

-1 210 072.44

$

59,257,910.00 $

58,047,837.56 $

-1,210,072.44

0.00

792,222.35

$

59,257,910.00 $

58,840,059.91 $

792,222.35 -417 850.09

$

648,025.00 $

648,025.00 $

58,609,885.00

56,770,986.42

$

59,257,910.00 $

57 419 011.42 $

$

0.00 $

1,421,048.49 $

0.00 1,838,898.58
1,838,898.58
1 421 048.49

873,309.26 22,216.71

3,215.66 -24,077.09
6,257.42

-22,216.71 -792,222.35

$

1 487 531.39

SUMMARY OF FUND BALANCE
Reserved Departmental Sales and Services Indirect Cost Recoveries Technology Fees Restricted/Sponsored Funds Uncollectible Accounts Receivable Capital Outlay Tuition Carry-Over
Total Reserved
Unreserved Surplus

$

280,888.82

100,370.98

142,177.03

598,985.97

103,363.52

53,430.60

204 406.81

$

1,483,623.73

3 907.66

Total Fund Balance

$ ===1.!.4=8=7=,5=3=1.=39..,, -1-

MACON STATE COLLEGE STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING SOURCE COMPARED TO BUDGET
YEAR ENDED JUNE 30, 2008

Special Funding Initiative
State Appropriation State General Funds

Original Appropriation

Final Budget

Current Year Revenues

Funds Available Comeared to Budget

Prior Year Carry-Over

Total Funds Available

Variance Positive (Negative)

$

683,825.00 $

648,025.00 $

648,025.00 $

0.00 $

648,025.00 $

0.00

Teaching State Appropriation State General Funds Other Funds
Total Teaching
Grand Totals All Programs

22,002,515.00 $ 21,830,426.00 $ 21,830,426.00 $

21 215 556.00

36,779,459.00

35,569,386.56

43 218,071.00 $ 58 609 885.00 $ 57 399,812.56 $

0.00 $ 21,830,426.00 $

792,222.35

36,361,608.91

792 222.35 $ 58,192 034.91 $

0.00 -417 850.09
-417 850.09

43,901,896.00 $ 59,257,910.00 $ 58,047,837.56 $

792,222.35 $ 58,840,059.91 $ -417,850.09

-2

EXHIBIT"B"

Exeenditures Comeared to Budget

Variance

Positive

Actual

(Negative)

Actual Funds Available
Over/(Under)
Expenditures

Prior Period Adjustments

Other Adjustments

Program Fund
Balances

Transfers

Program Fund Balances

Reserve

5UO)IUS

Total Fund Balance

$

648,025.00 $

0.00 $

0.00 $

0.00 $

0.00 $

0.00 $ _.2.22,. $

0.00 $

0.00 $

0.00

$ 21,830,426.00 $

0.00 $

34,940,560.42

1 838,898.58

$ 56,770,986.42 $ 1,838,898.58 $

0.00 $ 26,164.27 $ -22,276.61 $

3,907.66 $

0.00 $

0.00 $ 3,907.66 $

3,907.66

1,421,048.49

-47,045.70

6,257.42

1380260.21 __Q,QQ_ 1380260.21

0.00

1,380,260.21

1 421,048.49 $ -20 861.43 $ -16,019.19 $ 1 364167.87 $

0.00 $ 1380260.21 $ 3 907.66 $ 1.364.167.87

$ 57,419,011.42 $ 1,838,898.58 $ 1,421,048.49 $ -20,861.43 $ -16,019.19 $ 1,364,167.87 $ ~ $ 1,380,260.21 $ 3,907.66 $ 1,364,167.87

Unexpendable Reserves Uncollectible Accounts Receivable

103 363.52 $ 1,487 531.39

-3-