NORTH GEORGUT COLLEGE AND STATE UNIVERSITY DAHLONEGA, GEORGIA INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED- UPON PROCEDURES FOR FISCAL YEAR ENDED JUNE 30,2011 , *bGeorgia ,,- ~ u L hdib and Ak3ounts F 4- W. I fcmll Hinton -..-. . C - - . -' ,,. 4: : >. *.- 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 FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE 2 C STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE RUSSELLW. HINTON STATE AUDITOR (4M)168-2174 DEPARTMENOTF AUDITSAND ACCOUNTS 270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 December 9,2011 Members of the State Board of Regents of the University System of Georgia and Honorable Bonita Jacobs, President North Georgia College and State University lnde~endenAt ccountant's Report on A D D ~ V ~A~gEreEed-U~onProcedures 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 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 University's 2 0 1 1 Annual Financial Report for inclusion in the University System of Georgia's Annual Fi'~ncia1Report, the State of Georgia's Cbmprehensive Annual Financial Report (CIIFR) and Single Audit Repori; and to assist you in assessing the accuracy of the budget basis information provided in the Summaty Budget Comparison and Sutplus AnaIy.st3 Report Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source, and the Statement of Changes To Fund Balance By P/ogram and Funding Sourcewhich are attached as Exhibits A, B and C, 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 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 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 properlysupports activity reported in the University's accounting records. We did not note any exceptions as a result of our procedures. Obtain the University'sStatement 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. 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, LongTerm Debt, Lease Obligationsand Retirement Plans have been properly reported. We did not note any exceptions as a result of our procedures. 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. 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 shouId be reflected as fund balance adjustments on the Budget basis financial statements. We did not note any exceptions as a result of our procedures. Obtain listing of write-off requests for accounts receivable less than $3,000.00for fiscal year 2011. Confirm that these write-off requests 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. 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 University's financial statements. Salaries reported to the Department of Audits were not reconciled with amounts recorded in the financial statements. A variance of $769.55 was noted. Review year end Budgetary Statements including the Summary Budget Comparison and Surplus Analysis Report (Exhibit A), Statement of Funds Available and Expenditures Cbmpared to Budget By Program and Funding Source (Exhibit B) 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 University's accounting records and determine if any budget overexpenditures exist. We did not note any exceptions as a result of our procedures. Obtain documentation for Budget basis reserves reported by University on the Summaw Budget Compariison 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. Bank Reconciliation items, including errors and/or discrepancies, remain uncorrectedfor extended periodsof time. 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 g s e lWl . Hinton, CPA, CGFM State Auditor EXHIBITS NORTH GEORGIA COLLEGE AND STATE UNIVERSITY SUMMARY BUDGET COMPARISONAND SURPLUS ANALYSIS REPORT YEAR ENDEDJUNE 3 0 , 2 0 1 1 REVENUES State Appropriation State General Funds Other Funds Total Revenues ADJUSTMENTSAND PROGRAM TRANSFERS CARRYQVER FROM PRIOR YEARS Transfers from Reserved Fund Balance Total Funds Ava~lable EXPENDITURES Teaching 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 - Universily System 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 Serv~ces Indirect Cost Recoveries Technology Fees Restr~cted/SponsoredFunds Uncollect~bleAccounts Recelvable Tuition Carry-Over Inventories Total Reserved Unreserved Surplus Total Fund Balance BUDGET ACTUAL VARIANCE - FAVORABLE (UNFAVORABLE) NORTH GEORGIA COLLEGE AND STATE UNIVERSITY STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE YEAR ENDED JUNE3 0 . 2 0 1 1 Teachlng State Appropriation State General Funds Federal Funds American Recoveryand Reinvestment Act Federal Stabilization Funds Other Funds Total Teachlng Original Appraprlabon Amended Approprlatlon Final Budget Current Year Revenues Funds Ava~lableCompared to Budget Prlor Year Adjustments and Total Carry-Over Program Transfers Funds Available Variance Posittve (Negative) Expenditures Compared to Budget Variance Actual Posittve (Negat~ve) Excess (Deficiency) of Funds Available Over/(Under) Expenditures NORTH GEORGIA COLLEGE AND STATE UNIVERSITY STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE YEAR ENDEDJUNE 30.2011 Teaching State Appropriation State General Funds Federal Funds American Recoveryand Reinvestment Act Federal Stabilizat~onFunds Other Funds Total Teach~ng Prior Year R ~ s ~ N ~ s Not Available for Expend~ture Inventories Uncollectible Accounts Receivables Beginning Fund Balance/(Deficit) July 1 Fund Balance Carried Over from Pr~oPr er~od as Funds Available Return of F~scaYl ear 2010 Surplus Prior Period Adjustments Budget Unit Totals Other Adjustments Early Return FiscalYear 2011 Surplus Excess (Deficiency) of Funds Ava~lable Over/(Under) Expend~tures End~ngFund Balance/(Deficit) June 3 0 Analysis of Ending Fund Balance Resewed Surplus/(Deficit) Total Summary of End~ngFund Balance Reserved Department Sales and Services Indirect Cost Recoveries Technology Fees Restricted/Sponsored Funds Uncollect~bleAccounts Receivable T u ~ t ~ oCnarryaver Inventories Unreserved Surplus Total Ending Fund Balance - June 30 - 5 1,596.968.65 $ - 2.978.42 $ 1.599.947.07