I I MACON STATE COLLEGE MACON, GEORGIA INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED- UPON PROCEDURES FOR FISCAL YEAR ENDED JUNE 30,2010 1I audits and Aecounts Russell W.~intonl I :ds:ldlUu 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 B STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING SOURCE COMPARED TO BUDGET Page RUSSELL W. HINTON STATE AUDITOR (404) 656-2174 DEPARTMEONFTAUDITASND ACCOUNTS 270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 November 18,2010 Members of the State Board of Regents of the UniversitySystem of Georgia Honorable David Bell, President Macon State College Inde~endenAt ccountant's ReDort on ADDlvinR Agreed-Ueon Procedures Ladies and Gentlemen: We have performed the procedures enumerated below, which were agreed to by the College and the UniversitySystem 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 2010 Annual Financial Report for inclusion in the University System of Georgia's Annual Financial Report,the State of Georgia's CbmprehensiveAnnual Financial Report (C4FR) and SingleAudit Report; and to assist you in assessing the accuracy of the budget basis information provided in the Summary Budget Comparison and Surplus Analysis Report and Statement of Program Revenues and Expenditures 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 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, 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, LongTerm Debt, Lease Obligationsand Retirement Plans have been properly reported. We noted variances between supporting documentation and the Capital Assets and Lease Obligations note disclosures of $12,625 and $6,733, respectively. 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 2010. Confirm that these write-off requests have been approved by the State Accounting Officer and have been posted to the College'sfinancial statements. We did not note any exceptions as a result of our procedures. 8. Verify that the listing of salaries, 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 and Surplus Anahsis Report(Exhibit A) and Statement of Program Revenues and Expenditures 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 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 note that the Capital Assets (Equipment, Accumulated Depreciation Buildings, and Accumulated Depreciation Equipment) were not appropriately reconciled to amounts reported in the subsidiary documentation. A total variance of $12,625.40 was noted between documentation provided by the entity and the amounts reported in the College's 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. 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, CPA, CGFM EXHIBITS MACON STATE COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT YEAR ENDED JUNE30.2010 REVENUES State AQDrOQriatlOn State General Funds Federal Funds Other Funds T O ~ RI evenues CARRY-OVER F W M PRIOR YEAR Transfer from Reserved Fund Balance Total Funds Available Teaching Excess of Funds Available over Expenditures FUND BALANCE JULY 1 Reserved Unreserved ADJUSTMENTS Prlor Year Payables/Expenditures Pr~oYr ear Receivables/Revenues Unreserved Fund Balance (Surplus) Returned to Board of Regents- UniversitySystem Office Year Ended June 30.2009 Early Rem~nanceof Surplus in Current Flscal Year Prior Year Reserved Fund Balance included in Funds Ava~lable FUND BALANCE JUNE 30 SUMMARY OF FUND BALANCE Reserved Department Sales and Services Indirect Cost Recoveries Technology Fees Capltal Outlay Resmctea/Sponsored Funds Uncollectible Accounts Receivable Tuition Carry-Over Total Reserved unreserved surplus Total Fund Balance BUDGET ACTUAL VARIANCE - FAVORABLE (UNFAVORABLE) spaclal Fundlnglnltlatlve State Approprlatlon State General Funds MACON STATE COLLEGE STATEMENT OF PROGRAMREVENUESAND EXPENDITURES BY FUNDING SOURCE COMPAREDTO BUDGCl YEW ENDED JUNE30.2010 Orlbnal Appropr~atlon F~nal Budget Current Year Revenues Funds Available Compared m Budget Prior Year Carry-Over Total Funds Ava~lable Varnance Posltlve (Negauve) Tsachvng State Approprlatlon state General Funds Federal Funds Arnerlcan Recovev and Reinvestment Act of 2009 Federal Stab~llzatlonFunds Other Funds Total Teaching Grand Totals -All Programs Erpnd~tureCs ampared to Budget Varcance P~IIIVB Actual (Negat~ve) ma1 FundrAvallable over/[under) Expenditures Early Prlor Perlod Other Remlmnce --- Mjustments I\dlustments of Surplus Program Fund Balances Transfers Program Funa Balances msewe Surplus Total Fund - Balance Unexpndable Reserves Uncallecbble Accounts Rece~vable