REPORT NO. 2010-138 MARCH 2010 EDISON STATE COLLEGE _part1 doc

3 BASIC FINANCIAL STATEMENTS Statement of Net Assets .... 18 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN A

R EPORT N O 2010-138

MARCH 2010

EDISON STATE COLLEGE

Financial Audit

For the Fiscal Year Ended

June 30, 2009

This is trial version

www.adultpdf.com

BOARD OF TRUSTEES AND PRESIDENT

Members of the Board of Trustees and President who served during the 2008-09 fiscal year are listed below:

County

Dr Washington D Baquero, Chairman Lee

Dr Randall T Parrish, Jr., Vice Chairman Hendry

JoAnn P Helphenstine, from 8-07-08 (1) Charlotte

Note: (1)

Dr Kenneth P Walker, President Board member position was vacant from July 1, 2008, through August 6, 2008

The Auditor General conducts audits of governmental entities to provide the Legislature, Florida’s citizens, public entity management, and other stakeholders unbiased, timely, and relevant information for use in promoting government accountability and stewardship and improving government operations

The audit team leader was Claudia A Salgado, and the audit was supervised by Deirdre F Waigand, CPA Please address

at (850) 922-2263

This report and other reports prepared by the Auditor General can be obtained on our Web site at www.myflorida.com/audgen; by telephone at (850) 487-9024; or by mail at G74 Claude Pepper Building, 111 West Madison Street, Tallahassee, Florida 32399-1450

This is trial version www.adultpdf.com

M ARCH 2010 R EPORT N O 2010-138

EDISON STATE COLLEGE TABLE OF CONTENTS

PAGE

NO

EXECUTIVE SUMMARY i

INDEPENDENT AUDITOR’S REPORT ON FINANCIAL STATEMENTS 1

MANAGEMENT’S DISCUSSION AND ANALYSIS 3

BASIC FINANCIAL STATEMENTS Statement of Net Assets 13

Statement of Revenues, Expenses, and Changes in Net Assets 15

Statement of Cash Flows 16

Notes to Financial Statements 18

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 40

Internal Control Over Financial Reporting 40

Compliance and Other Matters 41

This is trial version www.adultpdf.com

2

In our opinion, based on our audit and the report of the other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of Edison State College and of its discretely presented component unit as of June 30, 2009, and the respective changes in financial position and cash flows thereof for the fiscal year 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 on our consideration of Edison State

College’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws,

rules, regulations, contracts, and grant agreements and other matters included under the heading INDEPENDENT

AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and 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 audit

The MANAGEMENT’S DISCUSSION AND ANALYSIS on pages 3 through 12 is not a required part of the

basic financial statements, but are 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 required supplementary information However, we did not audit the information and express no opinion on it

Respectfully submitted,

David W Martin, CPA March 15, 2010

This is trial version www.adultpdf.com

M ARCH 2010 R EPORT N O 2010-138

4

financial activities to the State of Florida Based on the application of the criteria for determining component units, the Financing Corporation is included within the College’s reporting entity as a blended component unit The Financing Corporation’s fiscal year is from April 1st through March 31st As a result, the Financing Corporation’s financial activities are included in the MD&A and accompanying financial statements are for the years ended March 31, 2009, and 2008, respectively

T HE S TATEMENT OF N ET A SSETS AND THE S TATEMENT

OF R EVENUES , E XPENSES , AND C HANGES IN N ET A SSETS

One of the most important questions asked about the College’s finances is, “Is Edison State College, as a whole, better or worse off as a result of the year’s activities?” The statement of net assets and the statement of revenues, expenses, and changes in net assets report information on the College as a whole and on its activities in a way that helps answer this question When revenues and other support exceed expenses, the result is an increase in net assets When the reverse occurs, the result is a decrease in net assets The relationship between revenues and expenses may

be thought of as Edison State College’s operating results

These two statements report Edison State College’s net assets and changes in them You can think of the College’s net assets, the difference between assets and liabilities, as one way to measure the College’s financial health or financial position Over time, increases or decreases in the College’s net assets are one indicator of whether its financial health

is improving or deteriorating You will need to consider many other nonfinancial factors, such as certain trends, student retention, condition of buildings, and the safety of the campus, to assess the overall financial health of the College

These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector institutions All of the current year revenues and expenses are taken into account regardless of when cash is received or paid

A condensed statement of assets, liabilities, and net assets for the College and its discretely presented component unit for the respective periods ended is shown in the following table:

This is trial version www.adultpdf.com

5

Assets, Liabilities, and Net Assets at

(In Thousands)

Assets

Total Assets 149,135 124,100 40,957 55,660

Liabilities

Total Liabilities 11,082 10,477 5,158 10,990

Net Assets

Invested in Capital Assets,

Total Net Assets $ 113,623 138,053 $ 35,799 $ 44,670 $

Increase (Decrease) in Net Assets $ 24,430 21.5% $ (8,871) -19.9%

The following chart presents the College’s net assets as of June 30:

Net Assets: College (In Thousands)

$82,920

$24,504

$6,199

$91,596

$37,356

$9,101

$0

$50,000

$100,000

Invested in Capital Assets, Net of Related Debt

2008 2009

This is trial version www.adultpdf.com