Skidaway Institute of Oceanography, Savannah, Georgia, independent accountant's report on applying agreed-upon procedures for fiscal year ended June 30, 2009

SKIDAWAY INSTITUTE OF OCEANOGRAPHY
SAVANNAH, GEORGIA
INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREEDUPON PROCEDURES FOR FISCAL YEAR ENDED JUNE 30, 2009
Ge orgia Department of Audits and .Accounts Russell W. Hinton State Auditor

SKIDAWAY INSTITUTE OF OCEANOGRAPHY - 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

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
December 4, 2009

Members of the State Board of Regents of the University System of Georgia Honorable James Sanders, Director Skidaway Institute of Oceanography
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 Institute 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 Institute's 2009 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 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. Skidaway Institute of Oceanography's management is responsible for the financial information reported to the University System Office in the Institute'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 Institute's general ledger.
We did not note any exceptions as a result of our procedures.

2. Obtain the lnstitute'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 Institute's accounting records.
We did not note any exceptions as a result of our procedures.
3. Obtain the Institute'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 Institute'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 Institute's year end GAAP basis journal entries. Obtain documentation for GAAP journal entries and confirm that the entries were posted to the Institute'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 Institute'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. 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 Institute's financial statements.
We did not note any exceptions as a result of our procedures.

8. Review year end Budgetary Statements including the Summary Budget Comparison and Surplus Analysis 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 Institute's accounting records and determine if any budget overexpenditures exist.
We did not note any exceptions as a result of our procedures.
9. Obtain documentation for Budget basis reserves reported by Institute 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.
10. Review the Schedule of Expenditures of Federal Awards information submitted by the
Institute for inclusion in the Statewide Single Audit. Confirm that the information is properly presented and supported by the Institute's accounting records.
We did not note any exceptions as a result of our procedures.
11. 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.
12. 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 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,
~-~
sell W. Hinton, CPA, CGFM State Auditor
RWH:as

EXHIBITS

SKIDAWAY INSTITUTE OF OCEANOGRAPHY SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT
YEAR ENDED JUNE 30, 2009

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 Skidaway Institute of Oceanography Teaching Total Expenditures Excess of Funds Available over Expenditures
FUND BALANCE JULY 1 Reserved
ADJUSTMENTS Prior Year Reserved Fund Balance Included in Funds Available
FUND BALANCE JUNE 30

BUDGET

ACTUAL

VARIANCE FAVORABLE {UNFAVORABLE}

$

2,518,847.00 $ 2,487,210.00 $

9,645 000.00

8,715,365.26

$ 12,163,847.00 $ 11,202,575.26 $

-31,637.00 -929,634.74
-961,271.74

0.00

520,565.80

$ 12,1631847.00 $ 11,723,141.06 $

520,565.80 -440 705.94

$

6,194,443.00 $ 5,755,119.33 $

5,969,404.00

5,519,004.85

$ 12,163,847.00 $ 11,274.124.18 $

$

$

449,016.88 $

439,323.67 450,399.15
889,722.82
449 016.88

520,565.80

-520,565.80

$

449,016.88

SUMMARY OF FUND BALANCE
Reserved Indirect Cost Recoveries Restricted/Sponsored Funds

$

449,224.29

-207.41

Total Fund Balance

$ ==4=4==9,=0=16=.8=8=

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SKIDAWAY INSTITUTE OF OCEANOGRAPHY STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING SOURCE COMPARED TO BUDGET
YEAR ENDED JUNE 30, 2009

Skidaway Institute of Oceanography State Appropriation State General Funds Other Funds
Total Skidaway Institute of Oceanography

Original Aeeroeriation

Final Budget

Current Year Revenues

Funds Available Comeared to Budget

Prior Year Carry-Over

Total Funds Available

Variance Positive (Negative)

1,756,972.00 4,758,000.00
6 514 972.00

1,549,443.00 4 645 000.00
6,194,443.00

1,517,806.00 4 165 764.41
5 683 570.41

000 520 565.80
520 565.80

1,517,606.00 4 686 330.21
6 204 136.21

-31,637.00 41 330.21
9 693.21

Teaching State Appropriation State General Funds Other Funds
Total Teaching

1,098,686.00 5 000,00000
6,098,666.00

969,404.00 5 000 000.00
5 969 404.00

969,404.00 4 549 600.85
5 519 004.85

0.00 $ 0.00
0.00

969,404.00 4 549 600.85
5 519 004.85

0.00 -450 399,15
-450 399.15

Grand Totals All Programs

12,613,658.00 $ 12.163,847.00 $ 11,202,575.26 $ 520,565.80 $

11,723,141.06 $ ===-4=40='=70=5=.9=4

2 -

EXHIBIT"B"

Expenditures Compared 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

Surplus

1,517,806.00

31,637.00

0.00

0.00

4 237 313.33

407 686.67

449 016.88

0.00

5 755 119.33 $

439,323.67 $

449,016.88 $

0.00

o.oo

0.00

0.00 $

0.00

0.00

0.00 449,016.88 ~ 449 016.88

0.00

0.00 449 016.88 $

0.00 $ 449 016.88 $

0.00

Total Fund Balance
0.00 449 016.88
449 016.88

969,404.00

0.00 $

000

4 549 600.85

450 399.15

0.00

$ 5,519 004.85

450,399.15

0.00

$ 11 274,124.18 $

889,722.82

449,016.88 $

0.00 0.00 0.00 $
0.00 $

0.00

0.00

0.00 $

000

0.00

0.00 ~

0.00

0.00

0.00

0.00 $

0.00 $

o.oo $ 449,016.88 $ ~ $ 449,016.88 $

0.00

0.00

0.00

0.00

0.00

0.00

000 $ 449,016.88

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