Pinal County Community College District June 30, 2010 Highlights -Single Audit

Office Of The Auditor General

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• Publié par: Umma
• Nombre de lectures: 86
• Langue: English

Extrait

Pinal County
Community College
District
(Central Arizona College)
REPORT Summary of Audit FindingsHIGHLIGHTS
SINGLE AUDIT
Subject
For the financial statement audit, auditors found internal control weaknesses over
Pinal County Community computer system access, the employee health plans’ bank account, capital assets,
College District issues
and purchasing. For the federal compliance audit, auditors tested four federal
financial statements and a
programs under the guidelines established by the Single Audit Act and noted material schedule of expenditures of
internal control weaknesses and material noncompliance for the Higher Education—federal awards annually. The
District is responsible for Institutional Aid program and a material internal control weakness for the Student
preparing its statements and Financial Assistance Cluster. The District’s Single Audit Report contains further details
schedule, maintaining strong and auditor recommendations. The most significant findings are summarized below.
internal controls,
demonstrating accountability
Financial Statement Findings— Additionally, the District paid contractors for its use of public monies,
and complying with federal over $529,000 for goods and services
program requirements. As using programs monies, but did not Computer System Access
the auditors, our job is to always follow proper competitive Controls—The District did not follow its
determine whether the
purchasing procedures or ensure that policies and procedures to ensure that District has met its
contractors were not suspended or system users were granted access rights responsibilities.
debarred from doing business with the to only those functions necessary to
Our Conclusion federal government before awarding perform their job responsibilities, and did
contracts. Finally, one of the District’s not have policies and procedures to The information in the
annual performance reports was monitor the activities of superusers. District’s financial statements
overstated by over $144,000 because of is fairly stated in all material
respects and the Schedule of various errors. As a result, auditors issued Purchasing—The District did not always
Expenditures of Federal an adverse opinion on the program follow its competitive purchasing policies
Awards is fairly stated in all because of material noncompliance with when it purchased goods and services on material respects in relation
the program’s requirements related to the contract. In addition, the District did not to these financial statements.
Davis-Bacon Act, procurement and A summary of this have any policies to follow when using the
information is presented on suspension and debarment, and contracts of other governmental entities or
page 2. However, auditors reporting.purchasing cooperatives to procure
identified internal control
goods and services.
weaknesses and instances of
Student Financial Assistance noncompliance. We
Cluster, 2010 total expenditures expressed an adverse Federal Award Findings—
opinion over one federal $18.6 million—The District did not
program because of material restrict access to its student financial aid Higher Education—Institutional Aid,
noncompliance found. system to only those employees who 2010 total expenditures $1.3
needed access to perform their job million—The District paid over $231,000
responsibilities. As a result, numerous in program monies to contractors for
employees had unnecessary and construction projects without ensuring
inappropriate access to the system.that the contractors paid prevailing wages
to employees for the work performed. 2010

Year Ended June 30, 2010Summary of Financial Information
The basic financial statements report the District’s finances in a manner similar to private
TO OBTAINsector higher education institutions.
MORE INFORMATION
Condensed Statement of Net Assets Statement of Net Assets—This
June 30, 2010 A copy of the full reportstatement reports all of the District’s assets,
(In Thousands)
is available at:liabilities, and net assets using the accrual Assets:
www.azauditor.govbasis of accounting. Net assets, the Current $ 63,293
Noncurrent, other than capital 42,058 difference between assets and liabilities, are Contact person:
Capital 42,617 reported in three major categories: Kathleen Wood
Total assets 147,968
[phone]Liabilities:
• Invested in capital assets, net of related Current 8,709
debt shows the equity in land, buildings, Noncurrent 58,519
Total liabilities 67,228 and equipment.
Net Assets: • Restricted net assets shows the net
Invested in capital assets, net of resources that must be used for
related debt 20,365
restricted purposes as specified by Restricted 2,680
external parties. Unrestricted 57,695
• Unrestricted net assets shows the net Total net assets $ 80,740
resources available for general
operations. Condensed Statement of Revenues,
Expenses, and Changes in Net Assets
Year Ended June 30, 2010 Statement of Revenues, Expenses,
(In Thousands)
and Changes in Net Assets—This Operating revenues:
statement shows how net assets changed Tuition and fees $ 5,341
Other 884 during the year. Revenues and expenses
Total operating revenues 6,225 are reported as either operating or
Operating expenses:
nonoperating. The change in net assets Educational and general 51,902
indicates whether the District’s financial Auxiliary enterprises 1,012
health has improved or deteriorated as a Depreciation 3,440
Total operating expenses 56,354 result of current-year operations. The
Operating loss (50,129) District’s net assets increased by $13.7
Nonoperating revenues and
million during the fiscal year. expenses:
Property taxes 43,455
State appropriations 4,935 Schedule of Expenditures of Federal
Grants and contracts 16,123 Awards—The District’s expenses included
Other 2,031
$22.5 million in federal awards expended. Interest expense (2,771)
The District’s federal award expenditures Net nonoperating revenues 63,773
Capital gifts and grants 34 increased by $8.2 million, or 57 percent,
Increase in net assets 13,678 compared to fiscal year 2009. During fiscal
Net assets—July 1, 2009 67,062
year 2010, the District received American Net assets—June 30, 2010 $ 80,740
Recovery and Reinvestment Act (ARRA)
monies from the U .S. Department of Condensed Schedule of Expenditures of
Federal Awards by Grantor Agency Education and the State of Arizona to
Year Ended June 30, 2010 provide financial assistance to students and
(In Thousands)
to help offset shortfalls in state funding for U.S. Department of Education $21,502
higher education, respectively. U.S. Department of Labor 786
U.S. Department of Housing and
Urban Development 147
U.S. Small Business Administration 65 REPORT
Other 34 HIGHLIGHTS Total federal expenditures $22,534
SINGLE AUDIT

Year Ended June 30, 2010
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