Skidaway Institute of Oceanography, Savannah, Georgia, independent accountant's report on applying agreed-upon procedures for fiscal year ended June 30, 2010

I( SKIDAWAY INSTITUTE
IOF OCEANOGRAPHY SAVANNAH, GEORGIA
INDEPENDENT ACCOUNTANT'S
REPORT ON APPLYING AGREED-
UPON PROCEDURES
FOR FISCAL YEAR ENDED
1 JUNE30,2010

I Georgia Departmemt of Buditst and Xccounts

I

W. Russell Hinton

4;ii

Sktedi1' A" " ~

w,, -jLn I- -, I' I'

/ i t l i ~. -~- ~-.-.~-..~ \ - \ l ! n lf, ,

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

RUSSELLW. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMEONFTAUDITASND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
November 11,2010

Members of the State Board of Regents of the UniversitySystem of Georgia Honorable James Sanders, Director Skidaway lnstitute of Oceanography
lnde~endenAt ccountant's Report on Applving Agreed-Upon Procedures
Ladies and Gentlemen:
We have performed the procedures enumerated below, which were agreed to by the lnstitute 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 2010 Annual Financial Report for inclusion in the University System of Georgia's Annual Fliancial Report, the State of Georgia's ComprehensiveAnnual Financial Report (OIFR) 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 of Program Revenues and Expenditures by Fundng Source Compared to Budget which are attached as ExhibitsA and B, respectively. Skidaway lnstitute 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 lnstitute 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 Institute'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, LongTerm Debt, Lease Obligations and Retirement Plans have been properly reported.
The Institute failed to provide supporting documentation for the collateralization of deposits.
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 Expendituresby 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.
The Institute's budget comparison reflected an overexpenditure of $121,900.15 in Teaching. See Exhibits A and B.
9. Obtain documentation for Budget basis reserves reported by Institute on the Summary Budget Cumparison 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.
. . Respectfullysubmitted,

~ u + e l l W. Hinton, CPA, CGFM

I

State Auditor

EXHIBITS

SKIDAWAY INSTITUTE OF OCEANOGRAPHY SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT
YEAR ENDED JUNE 30,2010

REVENUES State Appropriation State General Funds Federal Funds Other Funds Total Revenues
CARRY-OVER FROM PRIOR YEAR Transfers 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 Pr~oYr ear Payables/Expenditures Prior Year Resewed Fund Balance Included in Funds Available
FUND BALANCEJUNE 30
SUMMARY OF FUND BALANCE Resewed Indirect Cost Recoveries Restricted/Sponsored Funds Total Reserved Unreserved SU~D~US
Total Fund Balance

BUDGET

ACTUAL

VARIANCE -
FAVORABLE (UNFAVORABLE)

SKDAWAY INSTITUTE OF OCEANOGRAPHY STATEMENT OF PROGRAM REVENUESAND EXPENDITURES BY FUNDING SOURCE COMPARED TO BUDGE1
YEAR ENDEDJUNE30.2010

Skldaway lnstltute of b s n a g r a p h y State Approprlauon State General Funds Federal Funds Amerloan Recoveryend Re~nvestrnenAt ct of 2W9 Other FederalStlmulus Funds m e r Funds
Total Sktdaway lnstltute of Ooeanography

Or~glnal Appropr~at~on

Flnal Budget

Current Year Revenues

Funds Available Compared to Budget

Pnor Year Carru-Over

Total Funds Avalable

Var~ance Pos1tlve (Negative)

Tsachlng Staat Appropriation state General Funds m e r Funds
Total Teaching
- Grand Totals All Programs

Expenditures C a m p r e d to Budget

Variance

Posltlve

Aorual

(Ne@Pve)

Actual Funds Avatlable
Over/lUnderl awndltures

Pr~orPeriod Adjustments

Other Adjustments

Early Remlmnce of Surplus

Program Fund
Balances

Transfers

Program Fund Balances

Rese~e

Surplus

Funa Balance