North Georgia College and State University, Dahlonega, 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
I
NORTH GEORGIA COLLEGE AND STATE UNIVERSITY DAHLONEGA, GEORGIA
INDEPENDENT ACCOUNTANTS REPORT ON APPLYING AGREED-UPON PROCEDURES
FOR THE FISCAL YEAR ENDED JUNE 30, 2008
Russell W. Hinton State Auditor

NORTH GEORGIA COLLEGE AND STATE UNIVERSITY - 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) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
December 9, 2008

Members ofthe State Board ofRegents ofthe University System of Georgia Honorable David Potter, President North Georgia College and 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 ofRegents 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 2008 Annual Financial Report for inclusion in the State ofGeorgia'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 and Statement ofProgram Revenues and Expenditures by Funding Source Compared to Budget which are attached as Exhibits A and B, respectively. North Georgia College and State University's management is responsible for the financial information reported to the University System Office in the University's Annual Financial Report. This agreedupon 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 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 ofCash 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 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, 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 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 ofwrite-offrequests 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 University's financial statements.
We did not note any exceptions as a result of our procedures.
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 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 andSurplus Analysis Report (Exhibit A) and Statement ofProgram Revenues and Expenditures by Funding Source Compared to Budget (Exhibit B). Confirm that budget information presented in these statements supports activity reported in the University's accounting records and determine ifany budget overexpenditures exist.
We did not note any exceptions as a result of our procedures.
10. Obtain documentation for Budget basis reserves reported by the 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.
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.
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,
~\D.~ Russell W. Hinton, CPA, CGFM State Auditor
RWH:as

EXHIBITS

NORTH GEORGIA COLLEGE AND STATE UNIVERSITY 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 Unreserved Fund Balance (Surplus) Returned
to Board of Regents - University System Office Year Ended June 30, 2007
Mandatory Transfers Prior Year Reserved Fund Balance Included in Funds Available
FUND BALANCE JUNE 30

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$

26,798,099.00 $

26,798,099.00 $

25,562,179.00

25,251,468.80

$

52,360,278.00 $

52,049,567.80 $

0.00 -310,710.20
-310,710.20

0.00

461 834.69

$

52,360,278.00 $

52,511,402.49 $

461 834.69 151 124.49

$

865,632.00 $

865,632.00 $

51,494,646.00

51 ,050 734.69

$

52,360,278.00 $

51,916,366.69 $

$

0.00 $

595,035.80 $

0.00 443 911.31
443 911.31
595,035.80

659,955.08 5,766.80

3,107.69 -45.00

-5,766.80 -3,838.16 -461 834.69

$

792 380.72

SUMMARY OF FUND BALANCE
Reserved Departmental 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

$

159,418.53

73,923.75

7,280.12

217,063.38

138,438.63

150,573.18

41 613.46

$

788,311.05

4 069.67

$

792,380.72

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NORTH GEORGIA COLLEGE AND STATE UNIVERSITY 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 Com~ared to Budget

Prior Year Carrv-Over

Total Funds Available

Variance Positive (Negative)

865,632.00 $

865,632.00 $

865,632.00 $

0.00 $

865,632.00 $

0.00

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

25,635,759.00 19 320 254.00
$ ==='4"'4"'9"'5"'6"'0"'13"'.0"'0""

25,932,467.00 25,562,179.00
51 494 646.00

25,932,467.00 25,251,468.80
51 183 935.80 $

45,821,645.00 $

52,360,278.00 $

52,049,567.80 $

0.00 $ 461 834.69
461 834.69 $

25,932,467.00 25,713 303.49

0.00 151124.49

51645,770.49 $===l.15~1"=1~2.4...;:;49"'"

461,834.69 $

52,511,402.49 $ ===l.15~1~,1;,;;2;;;;4.;;;;49"'"

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EXHIBIT"B"

Expenditures Compared lo Budget

Variance

Positive

Aclual

!Negative)

Aclual Funds Available
Over/(Under) Expenditures

Prior Period Adjustments

Olher Adjustments

Program Fund
Balances

Transfers

P!:!!!!ram Fund Balances

Reserve

~

Tolal Fund Balance

865,632.00 $

0.00 $

0.00 $ 1 550.39 $

0.00 $ 1,550.39 $ ~ $

0.00 $ 1,550.39 $ 1,550.39

$

25,931,756.24 $

25.116.976.45

$

51 050 734.69 $

708.76 $ 443.202.55
443 911.31 $

706.76 $ 594 327.04
595 035.80 $

0.00 $ 1.512.30
1512.30 $

0.00 $

708.76 $

0.00 $

0.00 $ 708.76 $

708.76

14.230.14

610069.48 _.Q,QQ_ 808 256.96

1.810.52

610.069.48

14 230.14 $ 610 778.24 $~ $ 808 256.96 $ 2 519.28 $ 610 778.24

$

51,916,366.69 $

443 911.31 $

595,035.80 $ 3,062.69 $ 14,230.14 $ 612,326.63 $~ $ 608,258.96 $ 4,069.67 $ 612,328.63

Unexpendable Reserves Uncollectible Accounls Receivable lnvenlories

136,436.63 41.613.46
$ 792 380.72

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