Financial Documents 2009009797AFR
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TABLE OF CONTENTS Page ORGANIZATIONAL DATA 1 REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTAL INFORMATION 2 MANAGEMENT DISCUSSION AND ANALYSIS FISCAL YEAR ENDING August 31, 2009 4 FINANCIAL STATEMENTS: Statements of Net Assets – Exhibit 1 17 Statements of Revenues, Expenses and Changes in Net Assets – Exhibit 2 19 Statements of Cash Flows – Exhibit 3 21 Notes to Financial Statements 23 REQUIRED SUPPLEMENTAL INFORMATION: Schedule of Detailed Operating Revenues – Schedule A 41 Schedule of Operating Expenses by Object – Schedule B 43 Schedule of Non-Operating Revenues and Expenses – Schedule C 44 Schedule of Net Assets by Source and Availability – Schedule D 45 Schedule of Expenditures of Federal Awards – Schedule E 46 Schedule of Expenditures of State Awards – Schedule F 49 SINGLE AUDIT REPORTS: Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit Performed in Accordance with Government Auditing Standards 50 Report of Independent Certified Public Accountants on Compliance with Requirements Applicable to Each Major Program and Internal Control over Compliance in Accordance with OMB Circular A-133 52 Schedule of Findings and Questioned Costs 54 STATISTICAL SUPPLEMENT Statistical Supplement 1-19 58 MIDLAND COLLEGE DISTRICT ORGANIZATIONAL DATA As of August 31, 2009 BOARD OF TRUSTEES Officers Mr. Kenneth A. Peeler President Mr. Steven C. Kiser Vice-President Ms. Charlene R. McBride Secretary Members Term Expires Mr. Stephen N. Castle Midland, Texas 2012 Mr. Neil Florer Midland, Texas 2012 Ms. Joann E. Foster Midland, Texas 2010 Mr. Will R. Green Midland, Texas 2014 Mr. G. Larry Lawrence Midland, Texas 2010 Mr. Steven C. Kiser Midland, Texas 2010 Ms. Charlene R. McBride Midland, Texas 2012 Mr. Kenneth A. Peeler Midland, Texas 2014 Mr. Ralph Way Midland, Texas 2014 ADMINISTRATIVE OFFICERS Dr. Steve Thomas President Dr. Richard C. Jolly Executive Vice President Mr. Rick Bender Vice President of Administrative Services Dr. Eileen F. Piwetz Vice President of Institutional Advancement Mr. Dennis Sever Vice President of Information Technology & Facilities Dr. Rex Peebles Vice President of Instruction Ms. Rita Nell Diffie Vice President of Student Services Mr. Bob Vincent Director of Accounting -1- JOHNSON MILLER & CO., CPA’s PC Midland, Texas Certified Public Accountants Odessa, Texas A Professional Corporation Hobbs, New Mexico An Independent Member Of BDO Seidman Alliance Report of Independent Certified Public Accountants on Basic Financial Statements and Supplemental Information The Board of Trustees Midland College District Midland, Texas We have audited the accompanying financial statements of Midland College District (the “District”) as of and for the years ended August 31, 2009 and 2008 which collectively comprise the District’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the District’s management. Our responsibility is to express an opinion on these basic financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall basic financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the basic financial statements referred to above present fairly, in all material respects, the financial position of the District as of August 31, 2009 and 2008, and the results of its operations and cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued a report dated December 10, 2009 on our consideration of the District’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audits. -2- 550 West Texas, Suite 1000 • Midland, Texas 79701 • (432) 683-1835 (432) 563-5085 • Fax (432) 686-0571 [email protected] The Management’s Discussion and Analysis on pages 4 through 16 is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. The statistical section on pages 58 through 76 have been furnished to us and were not subjected to the audit procedures applied in the audit of the financial statements. Accordingly, we do not express an opinion on the statistical sections. Our audits were conducted for the purpose of forming an opinion on the financial statements that collectively comprise the District’s basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is not a required part of the basic financial statements. The accompanying schedule of expenditures of state awards is presented for purposes of additional analysis as required by the Provisions of the State of Texas Single Audit Circular, and is not a required part of the basic purpose financial statements. In addition, the supplementary data presented in schedules A, B, C and D is presented for additional purposes and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects in relation to the basic financial statements taken as a whole. Midland, Texas December 10, 2009 -3- Midland College District_____________________________________ Management Discussion and Analysis For the Year Ending August 31, 2009 Overview of the Financial Statements and Financial Analysis The Management’s Discussion and Analysis is designed to provide an easy to read analysis of Midland College District’s financial activities for the years ended August 31, 2009, 2008 and 2007. This overview is based on facts, decisions and conditions known as of the date of the independent auditor’s report. There are three financial statements presented; the Statement of Net Assets, the Statement of Revenues, Expenses, and Changes in Net Assets and the Statement of Cash Flows. These statements provide both long-term and short-term financial information on the District as a whole and should be read in conjunction with the notes to the basic financial statements. Management has prepared the financial statements and the related footnote disclosures along with the discussion and analysis. Responsibility for the completeness and fairness of this information rests with the preparers. Financial and Enrollment Highlights • The District’s assets exceeded liabilities by approximately $71,305,000 and $67,548,000 for the fiscal years ended August 31, 2009 and 2008 respectively. Of these amounts, unrestricted net assets were $10,735,000 for fiscal year 2009 and $10,634,000 for fiscal year 2008. • The District’s financial position as a whole was strengthened as total net assets increased by approximately $3,757,000 during fiscal year 2009 and by approximately $6,187,000 during fiscal year 2008. Of these amounts, unrestricted net assets increased by approximately $101,000 and $1,359,000 for fiscal years 2009 and 2008, respectively. • Capital assets increased by approximately $12,530,000 during fiscal year 2009 and by approximately $20,812,000 during fiscal year 2008. • Bonds and notes payable decreased by approximately $2,262,000 in fiscal year 2009 and increased by approximately $6,942,000 during fiscal year 2008. • During fiscal year 2009 the unduplicated head count increased by 155 students, duplicated head count increased by 395 students and contact hours increased by approximately 35,000. • During fiscal year 2008 the unduplicated head count increased by 414 students, duplicated head count increased by 576 students and contact hours decreased by approximately 52,000. -4- Midland College District_____________________________________ Management Discussion and Analysis For the Year Ending August 31, 2009 The Statement of Net Assets The