Bainbridge State College Bainbridge, Georgia
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BAINBRIDGE STATE COLLEGE BAINBRIDGE, GEORGIA MANAGEMENT REPORT FOR FISCAL YEAR ENDED JUNE 30, 2016 A Member Institution of the University System of Georgia BAINBRIDGE STATE COLLEGE - TABLE OF CONTENTS - Page SECTION I FINANCIAL LETTER OF TRANSMITTAL SELECTED FINANCIAL INFORMATION EXHIBITS A STATEMENT OF NET POSITION - (GAAP BASIS) 2 B STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - (GAAP BASIS) 3 C STATEMENT OF CASH FLOWS - (GAAP BASIS) 4 D SELECTED FINANCIAL NOTES 5 SUPPLEMENTARY INFORMATION SCHEDULES 1 BALANCE SHEET - (STATUTORY BASIS) BUDGET FUND 24 2 SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT (STATUTORY BASIS) BUDGET FUND 25 3 STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE (STATUTORY BASIS) BUDGET FUND 26 4 STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE (STATUTORY BASIS) BUDGET FUND 28 SECTION II ENTITY’S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS SECTION III FINDINGS, QUESTIONED COSTS AND OTHER ITEMS SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS SECTION I FINANCIAL DEPARTMENT OF AUDITS AND ACCOUNTS 270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 Greg S. Griffin Kristina A Turner STATE AUDITOR DIRECTOR (404) 656-2174 (404) 656-2174 November 21, 2016 Honorable Nathan Deal, Governor Members of the General Assembly of Georgia Members of the State Board of Regents of the University System of Georgia and Dr. Stuart Rayfield, Interim President Bainbridge State College Ladies and Gentlemen: This Management Report contains information pertinent to the Bainbridge State College’s compliance with the requirements of the Southern Association of Colleges and Schools Commission on Colleges (COC) Core Requirement 2.11.1 (Financial resources) of as of and for the year ended June 30, 2016. Additionally, we audited Bainbridge State College’s Federal Student Aid programs for the year ended June 30, 2016 to meet the requirements of COC Comprehensive Standard 3.10.2. Included in this report is a section on findings and other items for any matters that came to our attention during our engagement, including results of our audit of the Federal Student Aid programs. The other information contained in this report is the representation of management. Accordingly, we do not express an opinion or any form of assurance on it. Additionally, we have performed certain procedures at Bainbridge State College to support our audits of the basic financial statements of the State of Georgia presented in the State of Georgia Comprehensive Annual Financial Report and the issuance of a State of Georgia Single Audit Report pursuant to the Single Audit Act Amendments, as of and for the year ended June 30, 2016. This report is intended solely for the information and use of the management of Bainbridge State College, members of the Board of Regents of the University System of Georgia and the Southern Association of Colleges and Schools - Commission on Colleges and is not intended to be and should not be used by anyone other than these specified parties. Respectfully, Greg S. Griffin State Auditor GSG:er (This page left intentionally blank) SELECTED FINANCIAL INFORMATION - 1 - BAINBRIDGE STATE COLLEGE EXHIBIT "A" STATEMENT OF NET POSITION - (GAAP BASIS) JUNE 30, 2016 ASSETS Current Assets Cash and Cash Equivalents $ 71,580 Accounts Receivable, Net Federal Financial Assistance 399,334 Other 1,279,962 Inventories 2,195 Prepaid Items 9,526 Total Current Assets 1,762,597 Noncurrent Assets Due from USO - Capital Liability Reserve Fund 149,284 Investments 85,603 Noncurrent Cash (Externally Restricted) 1,588 Investments (Externally Restricted) 1,648,889 Capital Assets, Net 51,931,060 Total Noncurrent Assets 53,816,424 Total Assets 55,579,021 Deferred Outflows of Resources Deferred Loss on Defined Benefit Pension Plans 817,459 LIABILITIES Current Liabilities Accounts Payable 70,843 Salaries Payable 47,422 Benefits Payable 27,334 Advances (Including Tuition and Fees) 658,505 Other Liabilities -4,462 Deposits Held for Other Organizations 750,029 Lease Purchase Obligations 291,591 Compensated Absences 256,950 Total Current Liabilities 2,098,212 Noncurrent Liabilities Lease Purchase Obligations 18,108,787 Compensated Absences 137,980 Net Pension Liability 9,237,784 Total Noncurrent Liabilities 27,484,551 Total Liabilities 29,582,763 Deferred Inflows of Resources Deferred Gain on Defined Benefit Pension Plans 1,628,374 NET POSITION Net Investment in Capital Assets 33,530,682 Restricted for: Nonexpendable 1,663,180 Expendable 178,405 Unrestricted -10,186,924 Total Net Position $ 25,185,343 - 2 - BAINBRIDGE STATE COLLEGE EXHIBIT "B" STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - (GAAP BASIS) YEAR ENDED JUNE 30, 2016 OPERATING REVENUES Student Tuition and Fees (Net) $ 4,498,155 Grants and Contracts Federal 462,109 State 1,398,635 Other -3,398 Sales and Services 21,626 Rents and Royalties 38,975 Auxiliary Enterprises Bookstore 92,710 Food Services 17,381 Parking/Transportation 91,586 Other Operating Revenues 30,846 Total Operating Revenues 6,648,625 OPERATING EXPENSES Salaries Faculty 4,032,509 Staff 4,668,148 Employee Benefits 2,633,967 Other Personal Services 122,236 Travel 109,354 Scholarships and Fellowships 4,740,994 Utilities 592,994 Supplies and Other Services 3,114,007 Depreciation 1,836,433 Total Operating Expenses 21,850,642 Operating Income (Loss) -15,202,017 NONOPERATING REVENUES (EXPENSES) State Appropriations 7,721,470 Grants and Contracts Federal 6,348,743 Gifts 385,383 Investment Income (Endowments, Auxiliary and Other) 60,970 Interest Expense (Capital Assets) -1,155,086 Other Nonoperating Expenses -1,186 Net Nonoperating Revenues 13,360,294 Loss Before Other Revenues, Expenses, Gains, or Losses -1,841,723 Capital Grants and Gifts State 1,150,259 Additions to Permanent Endowments 4,956 Total Other Revenues, Expenses, Gains or Losses 1,155,215 Decrease in Net Position -686,508 Net Position - Beginning of Year, Restated 25,871,851 Net Position - End of Year $ 25,185,343 - 3 - BAINBRIDGE STATE COLLEGE EXHIBIT "C" STATEMENT OF CASH FLOWS - (GAAP BASIS) YEAR ENDED JUNE 30, 2016 CASH FLOWS FROM OPERATING ACTIVITIES Payments from Customers $ 4,907,106 Grants and Contracts (Exchange) 2,322,190 Payments to Suppliers -6,841,356 Payments to Employees -8,929,837 Payments for Scholarships and Fellowships -4,740,994 Net Cash Used by Operating Activities -13,282,891 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES State Appropriations 7,721,470 Agency Funds Transactions 376,269 Gifts and Grants Received for Other than Capital Purposes 6,739,082 Net Cash Flows Provided by Noncapital Financing Activities 14,836,821 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital Grants and Gifts Received 1,150,259 Purchases of Capital Assets -1,322,621 Principal Paid on Capital Debt and Leases -263,210 Interest Paid on Capital Debt and Leases -1,155,086 Net Cash Used by Capital and Related Financing Activities -1,590,658 CASH FLOWS FROM INVESTING ACTIVITIES Investment Income 31,586 Purchase of Investments -4,956 Net Cash Provided by Investing Activities 26,630 Net Decrease in Cash -10,098 Cash and Cash Equivalents - Beginning of Year 83,266 Cash and Cash Equivalents - End of Year $ 73,168 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH USED BY OPERATNG ACTIVITIES: Operating Income (Loss) $ -15,202,017 Adjustments to Reconcile Operating Loss to Net Cash Used by Operating Activities Depreciation 1,836,433 Change in Assets and Liabilities: Receivables, Net 801,491 Inventories 2,115 Prepaid Items 5,793 Accounts Payable -293,902 Salaries Payable 8,743 Benefits Payable -84 Advances (Including Tuition and Fees) 56,383 Other Liabilities -4,462 Compensated Absences -80,750 Net Pension Liability 916,587 Change in Deferred Inflows/Outflows of Resources: Deferred Inflows of Resources -1,364,294 Deferred Outflows of Resources 35,073 Net Cash Used by Operating Activities $ -13,282,891 NONCASH ACTIVITY Unrealized Gain/Loss on Investments $ 29,384 - 4 - BAINBRIDGE STATE COLLEGE EXHIBIT "D" SELECTED FINANCIAL NOTES JUNE 30, 2016 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY As defined by Official Code of Georgia Annotated (O.C.G.A) § 20-3-50, Bainbridge State College (the Institution) is part of the University System of Georgia (USG), an organizational unit of the State of Georgia (the State) under the governance of the Board of Regents (Board). The Board has constitutional authority to govern, control and manage the USG. The Board is composed of 19 members, one member from each congressional district in the State and five additional members from the state-at-large, appointed by the Governor and confirmed by the Senate. Members of the Board serve a seven year term and members may be reappointed to subsequent terms by a sitting governor. The Institution does not have the right to sue/be sued without recourse to the State. The Institution’s property is the property of the State and subject to all the limitations and restrictions imposed upon other property of the State by the Constitution and laws of the State. In addition, the Institution is not legally separate from the State. Accordingly, the Institution is included within the State’s basic financial statements as part of the primary government as defined in section 2100 of the Governmental Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial Reporting Standards. The accompanying basic financial statements are intended to supplement the State’s Comprehensive Annual Financial Report (CAFR) by presenting the financial position and changes in financial position and cash flows of only that portion of the business-type activities of the State that is attributable to the transactions of the Institution. They do not purport to, and do not, present fairly the financial position of the State as of June 30, 2016, the changes in its financial position or its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.