4695E99 Warner University, Inc
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WARNER UNIVERSITY, INC. FINANCIAL STATEMENTS AND SUPPLEMENTAL INFORMATION YEARS ENDED JUNE 30, 2014 AND 2013 WARNER UNIVERSITY, INC. FINANCIAL STATEMENTS AND SUPPLEMENTAL INFORMATION YEARS ENDED JUNE 30, 2014 AND 2013 TABLE OF CONTENTS Page Independent Auditor's Report 1-2 Financial Statements: Statements of Financial Position 3 Statements of Activities 4 Statements of Cash Flows 5-6 Notes to Financial Statements 7-17 Supplemental Information: Supplemental Schedules of Change in Net Assets 18 Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 19-20 Independent Auditor's Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by OMB Circular A-133 21-22 Schedule of Expenditures of Federal Awards and Florida Financial Assistance Programs 23 Notes to Schedule of Expenditures of Federal Awards and Florida Financial Assistance Programs 24-26 Schedule of Findings and Questioned Costs 27-28 Summary of Population, Items Tested, and Findings for Florida Financial Assistance Programs 29 Schedule of Prior Audit Findings and Questioned Costs: Federal Awards Programs 30 Florida Financial Assistance Programs 31 Bunting, Tripp & Ingley, LLP CER TIFIED PUBLIC ACCOUNT ANTS 230 EAST TILLMAN AVENUE A Tradition of Excellence for Over Eighty Years P. o. Box 990 LAKE WALES, FLORIDA 33859- 0990 ~ 863/676-7981 FAX 863/676- 8899 Independent Auditor's Report e-mail: [email protected] www.bticpa.com The Board of Trustees ALso Willi OFFICES IN Warner University, Inc. TAMPA, FLORIDA Lake Wales, Florida Report on the Financial Statements We have audited the accompanying fmancial statements of Warner University, Inc. (a nonprofit organization), which comprise the statements of fmancial position as of June 30, 2014 and 2013, and the related statements of activities and cash flows for the years then ended, and the related notes to the fmancial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of fmancial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these 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 audits to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fmancial statements. The procedures selected depend on the auditor's .iudgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the fmancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 1 MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS In our opinion, the financial statements 1I""'f"'1I"1~.,.t1 to above present fairly, in aU material respects, the fwancial position of Warner as of June 30, 2014 and 2013, and the in its net assets and cash flows for the years then accordance with accounting generally the United States of Report on Supplemental Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. accompanying Supplemental Schedules of Change in Net Assets and the Schedule of of Federal Awards and Florida Financial Assistance Programs as required by Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a part of the financial statements. Such information is responsibility of management and was from and ..""Iot't • ., i"I.""',I't'lu to the underlying other records used to prepare statements. information has been to auditing procedures applied fwancial statements and certain additional including comparing such information directly to the underlying accounting and other records used to financial statements or to the fwandal statements and other additional procedures in accordance auditing standards generally accepted States of America. our opinion, the information is stated, in all relation to the fwandal statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our 1I"t>.,n.'r August 2014, on our consideration of Warner Inc.'s internal control over u .........., ....... and on our tests of its compliance with certain provisions of laws, contracts, and grant and other matters. The purpose of the report is to describe the scope of our testing of internal control over fwancial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over fwancial reporting or on compliance. report is an integral part of an audit performed in accordance Government Auditing Standards considering Warner University, Inc.'s internal control over fmandal reporting and compliance. Lake Wales, August 29, 2014 2 WARNER UNIVERSITY, INC. STATEMENTS OF FINANCIAL POSITION JUNE 30, 2014 AND 2013 2014 2013 ASSETS Cash and cash equivalents $ 228,701 $ 154,714 Accounts receivable from students, net 3,660,943 3,328,124 Contributions receivable, net 531,552 53,442 Investments 2,795,670 1,069,597 Inventory 239,477 238,970 Prepaids and other 92,330 128,691 Loans receivable from students 337,266 315,902 Net property and equipment 25,505,870 20,191,002 Total assets $ 33,391,809 $25,480,442 LIABILITIES AND NET ASSETS Liabilities Accounts payable $ 299,860 $ 122,600 Accrued expenses 424,808 546,924 Deferred revenue 595,294 577,290 Student deposits 606,397 576,630 Deposits and other current liabilities 29,850 20,450 Annuities payable 201,471 314,027 Refundable Federal funds - student loans 305,442 300,587 Line of credit 3,054,600 1,600,000 Capitalized lease obligations 107,691 169,814 Notes payable 10,562,142 4,175,402 Total liabilities 16,187,555 8,403,724 Net Assets Unresticted: Undesignated 2,285,462 73,004 Investment in property and equipment, net of related liabilities 13,349,037 14,358,786 15,634,499 14,431,790 Temporarily restricted 1,242,210 2,317,383 Permanently restricted 327,545 327,545 Total net assets 17,204,254 17,076,718 Total liabilities and net assets $ 33,391,809 $25,480,442 The accompanying notes to financial statements should be read in con- junction with this statement. 3 WARNER UNIVERSITY, INC. STATEMENTS OF ACTIVITIES YEARS ENDED JUNE 30, 2014 AND 2013 Temporarily Unrestricted Restricted Operating Activities Revenues, Gains, and Other Support Gross tuition and fees $ 15,489,973 $ Less: financial aid (5,007,122) Net student tuition and fees 10,482,851 Auxiliary enterprises 3,062,770 Contributions received 1,117,613 320,787 Other support 429,061 Investment income 104,072 Net realized and unrealized gain on investments 40,771 235,885 Net assets released from restriction for scholarships 118,424 (118,424) Total revenues, gains, and other support 15,355,562 438,248 Expenses Student services 5,005,133 Institutional support 3,637,973 Instruction 3,327,507 Auxiliary enterprises 2,174,960 Academic support 1,545,664 Total expenses 15,691,237 Change in net assets from operating activities (335,675) 438,248 Nonoperating Activities Investment income in excess of amounts used for operations 10,894 14,069 Net assets released from restriction for capital improvements 1,527,490 (1,527,490) Change in net assets from nonoperating activities 1,538,384 (1,513,421) Change in net assets 1,202,709 (1,075,173) Net assets at beginning of year 14,431,790 2,317,383 Net assets at end of year $ 15,634,499 $ 1,242,210 The accompanying notes to financial statements should be read in con- junction with this statement. 2014 2013 Permanently Temporarily Permanently Restricted Total Unrestricted Restricted Restricted Total $ $ 15,489,973 $ 14,817,370 $ $ $ 14,817,370 (5,007,122) (4,795,614) (4,795,614) 10,482,851 10,021,756 10,021,756 3,062,770 2,941,172 2,941,172 1,438,400 1,432,197 471,377 1,903,574 429,061 389,930 389,930 104,072 123,716 123,716 276,656 9,420 6,494 15,914 99,035 (99,035) 15,793,810 15,017,226 378,836 15,396,062 5,005,133 4,370,190 4,370,190 3,637,973 3,861,881 3,861,881 3,327,507 3,276,436 3,276,436 2,174,960 2,084,202 2,084,202 1,545,664 1,608,465 1,608,465 15,691,237 15,201,174 15,201,174 102,573 (183,948) 378,836 194,888 24,963 32 33,124 33,156 1,356,322 (1,356,322) 24,963 1,356,354 (1,323,198) 33,156 127,536 1,172,406 (944,362) 228,044 327,545 17,076,718 13,259,384 3,261,745 327,545 16,848,674 $ 327,545 $17,204,254 $14,431,790 $ 2,317,383 $ 327,545 $17,076,718 4 WARNER UNIVERSITY, INC.