1 25 9 https://wsccarchives.org/files/original/3ec74b08d1407247c3b3e67ba385c50b.pdf e64d331229bdce700258d604fa743b5c PDF Text Text �W e s t Shore Community College Audit Report S c o t t v i l l e , Michigan Fiscal Years Ended June 3 0 , 1986 and 1985 -1- �MERSKIN & MERSKIN, P.C. Contents Page West Shore Community College Audited Financial Statements Accountants' Report 4 Balance Sheets 5-8a Statement of Changes in Fund Balance 9-9a Statement of R e v e n u e s , Expenditures a n d Other Changes 10-10a Notes to Financial Statements 11-12 Supplemental Financial Information Details of General Fund Expenditures and Other Changes 14-14a Details of Auxiliary Fund 15-15a Details of Restricted Funds 16-16a Details of Student Loan Funds 17-17a Student Loan Fund - Summary of Loan Transactions 18 Details of Endowment Fund 19-19a Bonds Payable 20-20a Schedules of Bonds Payable 21-23 Details of Construction Fund 24-24a Federal Grant Programs Auditors' Comments on Compliance for Federal G r a n t Programs Auditors' Comments on Internal Control for Federal G r a n t Programs Schedule of Active Awards/Expenditures -2- 26 27-28 29 �MERSKIN & MERSKIN, P.C. Contents Page West Shore Community College Audited Financial Foundation Statements Accountants' Report 31 Balance Sheet 32 Statement of R e v e n u e s , Expenditures and Changes in Fund Balance 33 Notes to Financial S t a t e m e n t s 3Zt -3- �MEMBERS: MICHIGAN ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS MERSKIN & MERSKIN, P.C. PARTNERS: DONALD T. MERSKIN, C.P.A. GUY MERSKIN, C.P.A. GERALD E. THORNE, C.P.A. DALE L. FITCH, C.P.A. KERRY E. CLARK, C.P.A. DAVID L. HATCH, C.P.A. CERTIFIED PUBLIC ACCOUNTANTS A u g u s t 2 7 , 1986 JACQUE SWAIN, C.P.A. OFFICES: 26 N. STATE STREET HART, MICHIGAN 49420 PHONE: 616-873-2111 906 E. LUDINGTON AVENUE LUDINGTON, MICHIGAN 49431 PHONE: 616-845-6251 67 BENZIE BOULEVARD BOX 157 BEULAH, MICHIGAN 49617 PHONE: 616-882-5144 14252 BLUFF ROAD TRAVERSE CITY, MICHIGAN 49684 PHONE: 616-223-7198 234 PARKDALE AVENUE MANISTEE, MICHIGAN 49660 PHONE: 616-723-6582 Board of Trustees West Shore Community College Scottville, Michigan 49454 Dear Board Members: We have examined the balance sheet as of June 3 0 , 1986 and 1985 o f the W e s t Shore Community College and the related statements of changes in fund balances and revenues and expenditures for the years then e n d e d . Our examination w a s made in accordance with generally accepted auditing standards and the standards for f i n a n cial and compliance a u d i t s contained in the Standards for Audit of Governmental Organizations, P r o g r a m s , Activities and F u n c t i o n s , issued by the U . S . General A c counting Office, and a c c o r d i n g l y , included such tests of the accounting records and such other auditing procedures as we considered necessary in the c i r c u m stances. In our opinion, the aforementioned financial statements p r e s e n t fairly the financial position of the W e s t Shore Community College a t June 3 0 , 1986 and 1 9 8 5 , and the changes in fund balances and the current revenues and expenditures for the years then ended, in conformity with generally accepted accounting p r i n c i p l e s . Our examination w a s made for the purpose of forming an opinion on the c o m bined financial statements taken as a w h o l e . The supplemental financial i n f o r m a tion is presented for purposes of additional analysis and is not a required part of the combined financial s t a t e m e n t s . Such information has been subjected to the auditing procedures applied in the examination of the combined financial s t a t e ments and, in our o p i n i o n , it is fairly stated in all material respects in r e l a tion to the combined financial statements taken as a w h o l e . MERSKIN & M E R S K I N , P.C. -4- �MERSKIN & M E R S K I N , P.C. W e s t Shore Community College Comparative Balance S h e e t June 3 0 , 1986 and 1985 Assets June 3 0 , 1566 C u r r e n t Funds Unrestricted Fund: General Fund: Cash and Temporary Investments - Note B Investments - Note E Property Taxes Receivable Accounts R e c e i v a b l e , Less Allowance of $2,365.81 in 1986 and $2,505.81 in 1985 Grants Receivable Prepaid Expenses Total General Fund $696,142.44 2,140.44 76,817.86 1985 $ 25,465.27 62,420.07 22,580.14 853,390.25 2,140.44 74,498.28 15,970.08 14,439.28 26,181.03 $885,566.22 $ 986,619.36 $ 322.00 88,210.00 14,200.00 $ 272.00 77,360.95 - Total Auxiliary Fund $102,732.00 $ 77,632.95 Total C u r r e n t Unrestricted F u n d s $988,298.22 $1,064,252.31 Auxiliary Fund C a s h - hote B Inventories Grants Receivable See Notes to Financial Statements. �Liabilities and Fund Balances June 3 0 , 1985 1986 Current Funds Unrestricted Fund: General Fund: Accounts Payable Accrued Payrolls Accrued Expenses Unearned S t u d e n t Tuition a n d Fees Deferred Revenue - Grants - State Appropriations Due to Other Funds Fund Balance: Budgeted for Following Year Unallocated $ 85,732.50 82,639.95 93,737.86 43,711.00 44,581.69 115,581.00 39,066.13 $ 86,523.36 80,686.10 82,715.17 47,767.85 36,536.94 111,295.00 56,011.22 28,726.02 456,357.70 3,651.00 376,865.09 Total Fund Balance $380,516.09 $ 485,083.72 Total General Fund $885,566.22 $ 986,619.36 $ $ 15,745.27 1,050.08 5,265.46 39,441.23 Auxiliary Fund Accounts Payable Accrued Payrolls Accrued Expenses Due to Other Funds Fund Balance: Budgeted for Following 10,173.97 1,048.99 5,491.36 62,238.11 16,130.91 23,779.57 Year 77,632.95 Total Auxiliary Fund $102,732.00 $ Total Current Unrestricted Funds $988,298.22 $1,064,252.31 -5a- �MERSKIN & M E R S K I N , P.C. W e s t Shore Community College Comparative Balance Sheet Continued June 3 0 , 1986 and 1985 Assets June 3 0 , 1986 C u r r e n t Funds Continued Restricted Fund: C a s h - Note ti Accrued Interest Receivable Grants Receivable E n d o w m e n t Income Receivable Prepaid Expenses $ 1985 20,360.22 109.78 8,870.18 42,770.87 327.04 11,841.00 14,683.71 10,879.02 Total Restricted Fund $ Total C u r r e n t Funds $1,032,322.11 $1,130,070.24 $ 49,941.92 182,064.89 178.75 $ 32,977.71 151,308.13 467.31 $ 232,185.56 $ 184,753.15 $ 10,141.68 33.32 $ 10,113.37 61.63 10,175.00 $ 10,175.00 S t u d e n t Loan Fund Cash - Note B S t u d e n t Notes Receivable Accured Interest Receivable Total S t u d e n t Loan Fund E n d o w m e n t Fund Cash and Temporary Investments Accrued Interest Receivable Total Endowment Fund See Notes to Financial S t a t e m e n t . -6- 44,023.89 $ 65,817.93 �Liabilities and Fund Balances June 3 0 , 1985 Current Funds - Continued Restricted Fund: Accounts Payable Deferred Revenue - Grants Fund Balance Total Restricted Fund $ 930.38 23,945.25 19,148.26 44,023.89 $ $ $ 90.00 42,297.05 23,430.88 65,817.93 $1,032,322.11 629.93 $ $ 1,174.18 979.38 $ $ Student Loan Fund Accounts Payable Fund Balance: College Student Loan Programs: Restricted Unrestricted $1,130,070.24 $ Total Current Funds 2,153.56 $ - Federal Student Loan Programs Total Fund Balance 229,402.07 $231,555.63 $ 1,296.47 280.08 1,576.55 183,176.60 184,753.15 Total Student Loan Fund $232,185.56 $ 184,753.15 $ $ Endowment Fund Due to Other Funds Fund Balance Total Endowment Fund $ 10,175.00 -6a- - 10,175.00 10,175.00 $ 10,175.00 �MERSKIN & M E R S K I N , P.C. W e s t Shore Community College Comparative Balance Sheet Continued June 3 0 , 1986 and 1985 Asse ts June 3 0 , 1986 P l a n t Funds C o n s t r u c t i o n Fund Due From Other Funds Total Construction Fund Maintenance and Replacement Fund C a s h and Temporary Investments - Note B A c c r u e d Interest Receivable G r a n t s Receivable Total Maintenance and R e p l a c e m e n t Fund D e b t R e t i r e m e n t Fund C a s h and Temporary Investments - Note B A c c r u e d Interest Receivable Property Taxes Receivable Total D e b t Retirement Fund Physical Properties Land and Improvements Buildings and Building Improvements Furniture and Equipment Library Books Total Physical Properties Total P l a n t Funds Agency Fund Cash - Note B Due from Other Funds Total Agency Fund See Notes to Financial S t a t e m e n t . 1985 $ 21.06 $ 21.06 $ 21.06 $ 21.06 $ 130,690.12 387.34 62,800.00 $ 93,740.83 598.80 $ 193,877.46 $ 94,339.63 $ 87,905.69 312.26 15,232.42 $ 72,569.50 831.49 14,779.34 $ 103,450.37 $ 88,180.33 $ 250,874.11 5,159,714.25 2,013,352.05 251,477.61 $ 250,874.11 5,067,531.96 1,706,619.65 243,000.00 $7,675,418.02 $7,268,025.72 $7,972,766.91 $7,450,566.74 $ 7,109.90 101,304.24 $ 2,735.10 95,452.45 $ 108,414.14 $ 98,187.55 �June 3 0 , Liabilities and Fund Balances 1985 1986 Plant Funds Construction Fund Fund Balance - Unrestricted $ 21.06 21.06 $ 21.06 $ Maintenance and Replacement Fund Accounts Payable Due to Other Funds Fund Balance - Unrestricted Reserve for Replacement Reserve for Encumbrances Unallocated $ $ Total Construction Fund 21.06 1,590.10 21.06 $ 2,018.20 21.06 80,000.00 95,178.00 17,088.30 80,000.00 7,822.45 4,477.92 Total Fund Balance $ 192,266.30 $ 92,300.37 Total Maintenance and R e p l a c e m e n t Fund $ 193,877.46 $ 94,339.63 $ 103,450.37 $ 88,180.33 $ 103,450.37 $ 88,180.33 $ 15,000.00 1,250,000.00 6,410,418.02 $ 27,000.00 1,450,000.00 5,791,025.72 Debt Retirement Fund Fund Balance - Restricted Total Debt Retirement Fund Physical Properties Notes Payable Bonds Payable Fund Balance Total Physical Properties $7,675,418.02 $7,268,025.72 Total Plant Funds $7,972,766.91 $7,450,566.74 Agency Fund Accounts Payable Payroll Taxes and Other D e d u c t i o n s Due to Depositors $ -7a- $ 854.00 95,449.95 1,883.60 $ Total Agency Fund 410.40 101,816.12 6,187.62 108,414.14 $ 98,187.55 �MERSKIN & M E R S K I N , P.C. W e s t Shore Community College Comparative Balance S h e e t Continued June 3 0 , 1986 a n d 1985 June 3 0 , Assets 1986 Total All Funds C a s h and Temporary Investments M a r k e t a b l e Securities P r o p e r t y Taxes Receivable A c c o u n t s Receivable S t u d e n t Notes Receivable O t h e r Receivables Inventories P r e p a i d Expenses Land and Improvements B u i l d i n g s and Building Improvements F u r n i t u r e and Equipment L i b r a r y Books 1985 $1,002,613.97 2,140.44 92,050.28 25,465.27 182,064.89 149,311.70 88,210.00 37,263.85 250,874.11 5,159,714.25 2,013,352.05 251,477.61 $9,254,538.42 Total See Notes to Financial S t a t e m e n t . -8- $1,108,569.63 2,140.44 89,277.62 15,970.08 151,308.13 28,566.55 77,360.95 37,060.05 250,874.11 5,067,531.96 1,706,619.65 243,000.00 $8,778,279.17 �June 3 0 , Liabilities and Fund Balances 1985 Total All Funds Accounts Payable Accrued Payrolls Accrued Expenses Unearned Student Tuition and Fees Payroll Taxes and Other Deductions Deferred Revenue Due to Depositors Notes and Bonds Payable 99,467.28 83,688.94 99,229.22 43,711.00 101,816.12 184,107.94 6,187.62 1,265,000.00 $ 105,230.83 81,736.18 87,980.63 47,767.85 95,449.95 190,128.99 1,883.60 1,477,000.00 $1,883,208.12 $2,087,178.03 19,148.26 1,174.18 229,402.07 10,175.00 103,450.37 Total Liabilities 23,430.88 1,296.47 183,176.60 10,175.00 88,180.33 Fund Balance: Restricted Restricted Fund College Student Federal Student Endowment Funds Debt Retirement Activities Loan Programs Loan Programs Funds $ Restricted Fund Balance Net Investment in Physical 363,349.88 $6,410,418.02 Properties $ 306,259.28 $5,791,025.72 Unrestricted: Budgeted for Following Year $ Used for College S t u d e n t Loan Programs Funds for Construction Projects Reserve for Replacement Funds for Maintenance and R e p l a c e m e n t - Encumbered - Unencumbered Unallocated 27,430.57 979.38 21.06 80,000.00 95,178.00 17,088.30 376,865.09 $ 44,856.93 280.08 21.06 80,000.00 7,822.45 4,477.92 456,357.70 Unrestricted Fund Balance $ 597,562.40 $ 593,816.14 Total $9,254,538.42 -8a- $8,778,279.17 �MERSKIN & M E R S K I N , P.C. West Share C q m n i t y College Statement of Changes in Fund Balances Fiscal Year Ended Jure 30, 1986 General Find Additions (Deductions): Current Funds Revenues & Other Changes Federal Grants & Contracts Property Taxes for Debt Retirement Gifts and Private Qtmts Investment Income Student Loan Interest Expenditures From Current Funds for Equipment and Other Capital Additions Expenditures for Capital Additions Notes and Bonds Retired Plant Assets Sold or Retired Current Funds Expenditures Uncollectable Loans Collection Expense Loan Cancellations Adm'nistrative Costs Distributions to Beneficiary Funds Expenditures Not Capitalized Interest and Bond Premium Mandatory Transfers: For Patching Quants Other Transfers In (Out): For Plant Improvements For Miscellaneous Purposes Net Increase (Decrease) for the Year Fiscal Year Ended June 30, 1986 Total Auxiliary Lhrestricted Restricted Fund Fund Find $3,664,112.67 $ 322,138.10 $3,986,250.77 $ 652,014.75 $ 500.00 8,208.34 2,882.25 (3,760,865.87) (314,489.44) (4,075,355.31) (536,297.37) (7,132.57) (2,099.98) (4,444.44) (4,444.44) (40,000.00) 44,444.44 (85,404.00) 82,034.01 (85,404.00) 82,034.01 (80,000.00) - $ (104,567.63) $ Fund Balanoe at Beginning of Year Fund Balance at End of Year Student Loan Find 7,648.66 $ (96,918.97) $ (4,282.62) $ 501,214.63 23,430.88 485,083.72 $ 16,130.91 380,516.09 $ 23,779.57 $ 404,295.66 $ See Notes to Financial Statements. -9- 19,148.26 46,802.48 184,753.15 $ 231,555.63 �Endowment Fund Combined Total All Funds Fiscal Year Ended June 30, 1985 Combined Total All Funds $4,638,265.52 96,477.00 54,261,663.33 58,742.00 276,501.11 750.00 35,056.22 2,882.25 271,964.44 50.00 46,622.13 1,915.77 343,680.99 266,267.66 Fiscal Year Ended Jine 30, 1986 Construe- Maintenance & Debt tion Replacement Retirement Physical Fund Fund Fund Properties $ $ 81,604.00 $ 14,873.00 276,501.11 250.00 1,308.80 12,353.25 13,185.83 343,680.99 (77,361.31) (200,000.00) 77,361.31 200,000.00 (1,650.00) (1,650.00) (118,078.03) (4,611,652.68) (4,220,860.05) (7,132.57) (19,407.40) (2,099.98) (815.51) (1,329.01) (1,558.80) (1,558.80) (489.90) (88,800.00) (489.90) (88,800.00) (1,698.54) (578.84) (99,650.00) 680,229.16 $ 444,807.95 85,404.00 (2,034.01) $ - $ 10,175.00 $ 10,175.00 $ $ 21.06 99,965.93 $ 15,270.04 $ 92,300.37 88,180.33 619,392.30 $ 5,791,025.72 6,691,101.14 6,246,293.19 21.06 $ 192,266.30 $ 103,450.37 $6,410,418.02 $7,371,330.30 $6,691,101.14 -9 a- �MERSKIN & M E R S K I N , P.C. W e s t Shore Community College S t a t e m e n t of Current F u n d s R e v e n u e s , Expenditures a n d Other Changes Fiscal Year Ended June 3 0 , 1986 Fiscal Year General Fund Revenues and Other Changes Tuition and Fees Property Taxes State Appropriations Federal Grants and Contracts State G r a n t s and Contracts Private G i f t s , Grants and C o n t r a c t s Indirect C o s t Recoveries E n d o w m e n t Income I n v e s t m e n t Income Sales & Services of Auxiliary A c t i v i t i e s Other Sources Decrease in Restricted Revenues Held for Future Expenditure $ — 322,138.10 82,875.69 $3,664,112.67 Mandatory Transfers In (Out) For Matching Grants $ $3,760,865.87 Expenditures $ $1,468,215.05 331,773.77 361,823.97 407,758.35 574,145.66 617,149.07 Expenditures and Transfers Instruction Public Service Instructional Support S t u d e n t Services Institutional Administration Physical P l a n t Operations $ $ Other T r a n s f e r s In (Out) For P l a n t Improvements For M i s c e l l a n e o u s Purposes (4,444.44) $ $3,768,680.30 322,138.10 314,489.44 314,489.44 _ - (85,404.00) 82,034.01 Total Expenditures and Transfers Revenues and Other Changes Over E x p e n d i t u r e s and Transfers $ 34,638.50 Total Revenues and Other Changes Total 612,894.67 1,384,948.24 1,171,725.00 162,785.94 156,837.21 48,409.10 8,998.32 Auxiliary Fund $ 314,489.44 (104,567.63) $ 7,648.66 (Under) $ The Notes to the Financial Statements are an integral part of this s t a t e m e n t . -10- �MERSKIN & M E R S K I N , P.C. W e s t Shore Community College S t a t e m e n t of Current F u n d s R e v e n u e s , Expenditures and Other Changes Fiscal Year Ended June 3 0 , 1986 Fiscal Year General Fund Revenues and Other Changes Tuition and Fees Property Taxes State Appropriations Federal Grants and Contracts State G r a n t s and Contracts Private G i f t s , Grants and C o n t r a c t s Indirect C o s t Recoveries E n d o w m e n t Income I n v e s t m e n t Income Sales & Services of Auxiliary A c t i v i t i e s Other Sources Decrease in Restricted Revenues Held for Future Expenditure Total Revenues and Other Changes $ 34,638.50 322,138.10 82,875.69 Mandatory Transfers In (Out) For Matching Grants $3,664,112.67 $ $ $3,760,865.87 Expenditures $ $ Other T r a n s f e r s In (Out) For P l a n t Improvements For M i s c e l l a n e o u s Purposes (4,444.44) $ $3,768,680.30 322,138.10 314,489.44 314,489.44 _ - (85,404.00) 82,034.01 Total Expenditures and Transfers Revenues and Other Changes Over E x p e n d i t u r e s and Transfers 612,894.67 1,384,948.24 1,171,725.00 162,785.94 156,837.21 48,409.10 8,998.32 $1,468,215.05 331,773.77 361,823.97 407,758.35 574,145.66 617,149.07 Expenditures and Transfers Instruction Public Service Instructional Support S t u d e n t Services Institutional Administration Physical P l a n t Operations Total $ Auxiliary Fund $ 314,489.44 (104,567.63) $ 7,648.66 (Under) $ The Notes to the Financial Statements are an integral part of this s t a t e m e n t . �Ended June 3 0 , 1986 Total Unrestricted Funds $ 612,894.67 1,384,948.24 1,171,725.00 162,785.94 156,837.21 48,409.10 8,998.32 Total Current Funds Restricted Fund $ $ - 560,317.94 80,000.00 12,836.42 (8,998.32) 1,308.80 6,549.91 - 34,638.50 322,138.10 82,875.69 $ - - 630,061.86 1,360,137.20 1,087,950.00 638,298.95 90,177.59 44,528.76 - 1,308.80 41,188.41 322,138.10 82,875.69 - - 612,894.67 1,384,948.24 1,171,725.00 723,103.88 236,837.21 61,245.52 Fiscal Year Ended 6/30/85 Total Current Funds 1,698.54 38,843.73 315,596.13 54,370.57 - 29,270.54 $3,986,250.77 $ 652,014.75 $4,638,265.52 $4,290,933.87 $1,468,215.05 331,773.77 361,823.97 722,247.79 574,145.66 617,149.07 $ 24,089.30 $1,492,304.35 331,773.77 365,728.97 1,230,550.86 574,145.66 617,149.07 $1,413,723.59 155,441.85 362,845.44 1,240,947.74 527,003.15 520,898.28 $4,075,355.31 $ $4,611,652.68 $4,220,860.05 $ - (4,444.44) $ $ 536,297.37 $ (96,918.97) $ (40,000.00) $ (44,444.44) (80,000.00) (85,404.00) 82,034.01 $4,083,169.74 - 3,905.00 508,303.07 (85,404.00) 2,034.01 656,297.37 $4,739,467.11 (4,282.62) $ (101,201.59) -10a- $ (39,046.00) (936.93) 91,554.58 $4,169,288.40 $ 121,645.47 �MERSKIN & MERSKIN, P.C. West Shore Community College Notes to Financial Note A - Summary of Significant Accounting Page 1 Statements Policies The financial statements have been prepared generally in accordance with accounting principles outlined in the American Institute of Certified Public countants' a u d i t g u i d e , Audits of Colleges and U n i v e r s i t i e s , and the Manual Uniform Financial Reporting—Michigan Public Community C o l l e g e s . Fund Classifications: The accounts of the College are reporting purposes into the following seven funds: summarized for the Acfor financial The current f u n d s , consisting of the G e n e r a l , A u x i l i a r y , and Restricted (use r e stricted by donor or supporting a g e n c y ) F u n d s , are used to account for t r a n s a c tions related to the instructional and academic p r o g r a m s , including restricted purpose contracts and g r a n t s , r e s e a r c h , extension and departmental programs and the auxiliary activities which provide services to the student body, faculty and staff and public. The Statement of C u r r e n t Funds R e v e n u e s , Expenditures and Other Changes is a statement of financial a c t i v i t i e s of current funds related to the current reporting y e a r . It does not p u r p o r t to present the results of operations or the net income or loss for the y e a r . The noncurrent funds and their functions are described as follows: (1) S t u d e n t Loan Fund is used to a c c o u n t for transactions related to loans to s t u d e n t s ; (2) Endowment Fund is used to a c c o u n t for gifts which allow only the income thereon to be expended; (3) P l a n t Fund is used to a c c o u n t for transactions relating to i n vestment in institutional p r o p e r t i e s , indebtedness incurred in the financing thereof and reserves for maintenance and r e p l a c e m e n t s ; (4) Agency Fund is used to account for amounts withheld from p a y r o l l s , employer's portion of payroll taxes and various payroll b e n e f i t s , for amounts held in custody for students, C o l l e g e related organizations or o t h e r s . Investments and Institutional P r o p e r t i e s : Investments and institutional ties are stated at cost or market value a t date of g i f t . Amounts expended ly from current funds for equipment or other capital additions are included penditures or transfers of such funds and are capitalized within the P l a n t Inventories: properdirectin e x Fund. Inventories are stated a t the lower of cost or m a r k e t . Revenue Recognition: All revenues and related expenditures incurred in connection with the current summer session are deferred a t June 3 0 . Restricted Fund revenues are recognized only to the extent e x p e n d e d . -11- �MERSKIN & MERSKIN, P.C. W e s t Shore Community Notes to Financial Note B - Cash and Temporary College Page 2 Statements Investments Cash balances consist of the following: Cash Certificates of Deposit June 3 0 , $ Totals 268,856.49 733,757.48 $1,002,613.97 1 41,331.71 1,067,237.92 $1,108,569.63 Note C - Bonds, Notes Payable and Capitalized Leases Payable The principal and interest on bonds and notes are payable from property taxes assessed for debt retirement. The obligations are generally c a l l a b l e , bear i n t e r e s t at rates varying from 5.1% to 7% and mature a t various dates through 1 9 9 6 . The minimum annual principal and interest payments due within one year from June 3 0 , 1986 aggregate $ 2 7 7 , 2 7 5 . Note D - Retirement Plans The College by statute participates in the Michigan Public School E m p l o y e e s Retirement Fund and makes contributions on behalf of its eligible e m p l o y e e s . Such contributions amounted to $337,345 in 1 9 8 6 . Note E - Investments Investments are 46 shares of Dow Chemical market value at June 3 0 , 1986 is $ 4 , 2 7 8 . 0 0 . Company common stock. Aggregate Note F - Litigation The college has been named as a third party defendant by a company seeking to recover previously paid property taxes in Bankruptcy C o u r t . The original claim w a s for $744.01. An out-of-court s e t t l e m e n t was negotiated and all claims dropped for $83.68 which was paid in A u g u s t , 1 9 8 6 . -12- �Other Financial -13- Information �MERSKIN & M E R S K I N , P.C. W e s t Shore Community College Details o f General Fund Expenditures and Other Changes Fiscal Year Ended June 3 0 , 1986 Salaries And Wages Instruction: General Business and Public Service T r a d e , Industrial and Technical H e a l t h Occupations Total s $ $ Public Service: R e c r e a t i o n Center Business & Industrial D e v e l o p m e n t Institute Cultural Arts Program Totals Instructional S u p p o r t : Instructional Media Center Instructional Administration Totals $ $ $ 48,723.84 32,462.60 8,651.61 89,838.05 65,168.18 183,237.28 $ $ $ $ $ 132,855.10 87,028.19 57,595.85 70,506.72 347,985.86 18,458.90 143,663.12 61,224.57 223,346.59 37,117.54 67,077.97 104,195.51 248,403.46 $ $ 139,827.73 45,315.94 $ 104,888.66 116,421.07 $ Student Services: S t u d e n t Personnel S t u d e n t Financial Aid Totals Institutional A d m i n i s t r a t i o n : Board of Trustees P r e s i d e n t ' s Office and Public Business Services Totals $ 420,353.79 229,321.06 113,498.96 186,378.87 949,552.68 Supplies and Expenses 185,143.67 $ 221,309.73 $ 63,993.67 42,150.32 186,777.31 $ 109,733.65 158,126.03 Information $ 292,921.30 268,221.92 $ $ 268,221.92 t 193,665.63 146,781.54 340,447.17 $ Internal Service O p e r a t i o n s : Data Processing Dupl i cation $ $ Physical Plant O p e r a t i o n s : Physical Plant Energy Services Totals 267,859.68 35,492.20 $ 16,881.23 1—35,492.20 Elimination of Rebilled Charges N e t Internal Service 1—16,881.23 (35,492.20) 1 = $2,009,021.46 Totals -14- (16,881.23) 1 = $1,530,206.16 �Capital Outlay $ 1,974.31 $ 168,134.20 568.00 $ $ 170,676.51 $ 16,293.49 2,295.64 $ $ 18,689.13 $ $ 9,223.00 $ $ 9,223.1)0 $ $ 709.95 595.00 1,304.95 $ - _ - $ 8,479.98 $ 8,479.98 $ $ - - $ $1,468,215.05 - $ 83,476.23 178,421.36 69,876.18 $ 331,773.77 $ 111,508.72 250,315.25 $ 361,823.9/ 245,426.34 166,776.45 412,202.79 $ 149,397.67 151,883.97 358,268.02 659,549.66 4,444.44 $ 4,444.44 $ 85,404.00 $ $ 14,124.63 $ 21,833.48 35,958.11 (35,958.11) $ - $ $ 221,638.25 $ 553,208.89 318,323.56 339,229.01 257,453.59 $ - $ 13,364.68 13,364.68 $ Total Transfers 85,404.00 89,848.44 $ $ 470,367.53 146,781.54 $ 617,149.07 $ 66,498.06 21,833.48 88,331.54 (88,331.54 * $ - $3,850,714.31 -14a- �MERSKIN & M E R S K I N , P.C. W e s t Shore Community College D e t a i l s of Auxiliary Fund Fiscal Year Ended June 3 0 , 1986 Activity Bookstore Food Service Fund Balance 7/1/85 $ 16,130.91 $ 16,130.91 Revenues Expendi tures Salaries Supplies and and Wages Expenses $183,527.28 $ 23,207.25 $148,719.41 138,610.82 42,966.40 70,961.09 $322,138.10 $ 66,173.65 $219,680.50 -15- �Expendi tures Capital Outlay $ 6,769.89 Revenues Over (Under) Expenditures $ 21,865.40 $ 28,635.29 4,830.73 7,648.66 $ - $ 20,961.64 - $ 2,817.93 $ Fund Balance 6/30/86 Transfers In (Out) 2,817.93 - $ 23,779.57 -15a- �MERSKIN & M E R S K I N , P.C. W e s t Shore Community College Details of Restricted Funds Fiscal Year Ended June 3 0 , 1986 Balance 7/1/85 Revenues Governmental Private Indirect Grants and G i f t s , Grants Costs Contracts & Contracts (Deduct) Other Instruction Various Grants $ Public Service Various Grants Instructional Support Various Grants Stud6nt S6rviC6S Various Grants - $ 68,571.62 $ - - 36,809.00 - - - 3,905.00 - - 23,430.88 531,032.32 12,836.42 $ 23,430.88 $640,317.94 $ 12,836.42 -16- $ (1,291.32) $ (7,707.00) - - 7,858.71 $ (8,998.32) $7,858.71 �Expenditures Salaries and Wages Total $ 67,280.30 $ 6,723.31 Supplies and Expenses $ 17,365.99 Capital Outlay $ Total Transfers In (Out) Balance 6/30/86 $ 24,089.30 $ (43,191.00) $ 36,809.00 (36,809.00) 3,905.00 3,905.00 3,905.00 544,020.45 508,303.07 508,303.07 $652,014.75 $ 6,723.31 $529,574.06 $ (40,000.00) 19,148.26 $536,297.37 $ ( 1 2 0 , 0 0 0 . 0 0 ) $ 19,148.26 -16a- �MERSKIN & M E R S K I N , P.C. W e s t Shore Community College Details of S t u d e n t Loan Funds Fiscal Year Ended June 3 0 , 1986 Contributions and Other Balance 7/1/85 College Loan Funds Restricted Funds Luzor Memorial Veterans Loan Fund $ 1,296.47 Interest Income $ 152.71 U n r e s t r i c t e d Funds: 280.08 Emergency S t u d e n t Loan Fund Total College Loan Funds $ 1,576.55 500.00 $ 500.00 719.30 $ 872.01 Federal S t u d e n t Loan Funds 183,176.60 44,444.44 10,218.58 $184,753.15 $ 44,944.44 $ 11,090.59 National D i r e c t S t u d e n t Loans Total S t u d e n t Loan Fund -17- �Balance 6/30/86 Deductions $ 275.00 $ 520.00 $ 795.00 1,174.18 979.38 $ 2,153.56 8,437.55 $ 229,402.07 9,232.55 $231,555.63 �MERSKIN & MERSKIN, P.C, W e s t Shore Community College Student Loan Fund - Summary of Loan Transactions Fiscal Year Ended June 3 0 , 1986 College Student Loans Luzor Memorial Emergency Veterans Student Loan Fund Loan Fund Federal National Direct Student Loans Total Loans Outstanding a t 7/1/85 $ Loans Granted During Fiscal 1986 100.00 2,196.00 $ 2,158.00 $151,208.13 63,126.50 $151,308.13 67,480.50 $ 2,296.00 $ 2,158.00 $214,334.63 $218,788.63 Deduct: Loan Payments Cancellation of Indebtedness Loans Defaulted to Federal Government Other Defaulted Loans Loans Outstanding at 6/30/86 (1,821.00) - (25,437.17) (28,922.67) (275.00) (393.50) (7,132.57) - (7,132.57) (668.50) 200.00 $181,764.89 $182,064.89 1 21 -35 303 62 35 27 34 304 118 422 78 7 - 12 -22 1 319 322 17 -3 2 Outstanding at 6/30/86 $ - LO Paid in Full During Year Cancelled Loans Defaulted Loans 100.00 22 Number of Loans: Outstanding a t 7/1/85 Granted During Year $ (1,664.50) The above loans outstanding have not been reduced by an allowance for doubtful amounts. -18- �MERSKIN & M E R S K I N , P.C. W e s t Shore Community College D e t a i l s of Endowment Fund Fiscal Year Ended June 3 0 , 1986 Balance 7/1/85 Fund Gifts Income From Investments E n d o w m e n t Funds McGhan Scholarship $ 2,000.00 $ - $ 160.00 Plank Memorial Scholarship 5,000.00 - 702.55 Killen Memorial Scholarship 3,175.00 - 446.25 Totals $ 10,175.00 -19- $ $ 1,308.80 �Distributions of Endowment Transfers Income In (Out) $ 160.00 $ - Principal Balance 6/30/86 $ 2,000.00 702.55 5,000.00 446.25 $ - 3,175.00 1,308.80 $ $ 10,175.00 �MERSKIN & M E R S K I N , P.C. W e s t Shore Community College Notes and Bonds Payable Year Ended June 3 0 , 1986 Interest Rate P l a n t Fund Notes Payable State Savings Bank of Scottville Telephone System Bonds Payable 1969 Community College Building Bonds 10.0 % 5.3 to 6.0% 1987 Outstanding 7/1/85 $ 27,000.00 1978-l^i'' 300,000.00 6.0% 1978-1991 400,000.00 5.1 to 7.0% 1979-1996 750,000.00 1969 Community College Building B o n d s Series II 1975 Community College Building Bonds Maturity Date Totals $1,477,000.00 All bonds are payable from ad valorem t a x e s , levied without limitation as to rate or a m o u n t as provided by Section 6 , Article I I , of the Constitution of the State of Michigan. -20- �Outstanding 6/30/86 " Retired $ 12,000.00 $ 15,000.00 50,000.00 250,000.00 100,000.00 300,000.00 50,000.00 700,000.00 $212,000.00 $1,265,000.00 �MERSKIN & M E R S K I N , P.C, W e s t Shore Community College Schedule of Bonds Payable Issue of March 1, 1969 On March 1, 1 9 6 9 , the W e s t Shore Community College district issued $750,000 of 1969 Community Collge Building B o n d s . The bonds are payable from ad valorem t a x e s , levied w i t h o u t limitation as to rate or a m o u n t as provided by Section 6 , Article I I , of the Constitution of the State of M i c h i g a n . The amounts of p r i n cipal and interest payments are as follows: Maturity Year 1986 Interest Payable S e p t . 1, Payable March 1, Interest Principal I 1987 1988 1989 1990 1991 1 = $ 7,075.00 Annual Requirement $ 7,075.00 7,075.00 5,675.00 4,262.50 2,850.00 1,425.00 $ 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 5,675.00 4,262.50 2,850.00 1,425.00 - 62,750.00 59,937.50 57,112.50 54,275.00 51,425.00 21,287.50 $250,000.00 $ 21,287.50 $292,575.00 The bonds are in $5,000 denomination each with interest a t various rates as follows: Bonds Maturing 1986-1987 1988-1989 1990-1991 -21- 5.60% 5.65% 5.70% interest �MERSKIN & M E R S K I N , P.C. W e s t Shore Community College Schedule of Bonds Payable Issue of September 1, 1969 During a t e d "1969 the purpose development D e c e m b e r , 1 9 6 9 , the college district sold $ 1 , 5 0 0 , 0 0 0 of bonds d e s i g n Community College Building B o n d s , Series I I " . The proceeds are for of e r e c t i n g , furnishing and equipping buildings and site purchase and costs. The bonds are payable from ad valorem taxes levied w i t h o u t limitation as to rate or a m o u n t , as provided in Section 6 , Article IX of the Constitution of M i c h igan of 1 9 6 3 . The annual debt requirements are as follows: Payable M a r c h 1, Interest Principal I = 1 9,000.00 100,000.00 6,000.00 100,000.00 3,000.00 100,000.00 Interest Payable S e p t . 1, $ 9,000.00 6,000.00 3,000.00 - Annual Requirement $ 9,000.00 115,000.00 109,000.00 103,000.00 $ Maturity Year 1386 1987 1988 1989 $ 18,000.00 $336,000.00 18,000.00 $300,000.00 The bonds are in denominations of $5,000 each with interest a t 6%. -22- �MERSKIN & M E R S K I N , P.C. West Shore Community College Schedule of Bonds Payable Issue of February 1, 1975 On February 1, 1 9 7 5 , the West Shore Community College district issued $1,000,000 of 1975 Community College building b o n d s . The bonds are payable from ad valorem t a x e s , levied w i t h o u t limitation as to rate or a m o u n t as provided by Section 6 , A r t icle I I , of the Constitution of the State of M i c h i g a n . Amounts of principal and i n terest payments are as f o l l o w s : Maturity Year 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 Interest Rate 5.450% 5.650 5.850 6.050 6.200 6.400 6.550 6.700 6.800 6.900 6.900 Payable March 1, Interest Principal $ $ 22,562.50 50,000.00 21,150.00 50,000.00 19,687.50 75,000.00 17,418.75 75,000.00 75,000.00 15,093.75 12,693.75 75,000.00 75,000.00 10,237.50 7,725.00 75,000.00 5,175.00 75,000.00 2,587.50 75,000.00 $ 134,331.25 $700,000.00 The bonds are issued in $5,000 denominations. -23- Interest Payable S e p t . 1, $ 22,562.50 21,150.00 19,687.50 17,418.75 15,093.75 12,693.75 10,237.50 7,725.00 5,175.00 2,587.50 $134,331.25 Annual Requirement $ 22,562.50 93,712.50 90,837.50 112,106.25 107,512.50 102,787.50 97,931.25 92,962.50 87,900.00 82,762.50 77,587.50 $ 968,662.50 �MERSKIN & M E R S K I N , P.C. W e s t Shore Community College Details of Construction Fund Fiscal Year Ended June 3 0 , 1986 Balance 7/1/85 Investment Income Expenditures Not Capitalized $ $ Unexpended Appropriations for Plant: Unappropriated Construction Funds $ -24- 21.06 - - �Transfers In (Out) $ Balance 6/30/86 $ 21.06 �Supplemental Financial Information Federal G r a n t Programs -25- �MERSKIN & M E R S K I N , P.C. AUDITOR'S COMMENTS ON COMPLIANCE FOR ATTACHMENT P AUDITS A u g u s t 2 7 , 1986 Board of Trustees W e s t Shore Community College S c o t t v i l l e , Michigan 4 9 4 5 4 We have examined the combined financial statements of the W e s t Shore Community College for the year e n d e d June 3 0 , 1 9 8 6 , and have issued our r e p o r t thereon dated A u g u s t 2 7 , 1986. Our examination was made in accordance with generally accepted auditing standards; the provisions of Standards for Audit of Governmental O r g a n i z a t i o n s , P r o g r a m s , A c t i v i t i e s and F u n c t i o n s , promulgated by the U . S . Comptroller G e n e r a l , as they pertain to financial and compliance a u d i t s ; the provisions of the Office of Management and Budget's (0MB) Compliance Supplement - Uniform R e q u i r e m e n t s of Programs for G r a n t s to State and Local G o v e r n m e n t s . Certain programs o p e r a t e d by the College were not included in OMB's Compliance Supplement - Uniform Requirements for Grants to State and Local G o v e r n m e n t s . For these programs we r e viewed the terms and c o n d i t i o n s set forth in the award agreements and determined the major compliance requirements to be tested; the provisions of OMB's Circular A - 1 1 0 , Uniform R e q u i r e m e n t s for Grants to U n i v e r s i t i e s , Hospitals and Other NonP r o f i t O r g a n i z a t i o n s , and a c c o r d i n g l y , included such tests of the accounting r e c o r d s and such other a u d i t i n g procedures as we considered necessary in the c i r c u m stances. Based on our e x a m i n a t i o n , we found that, for the items tested, the College complied with the material terms and conditions of the federal g r a n t a g r e e m e n t s , w i t h no questioned costs e v i d e n t . F u r t h e r , based on our examination and the p r o c e d u r e s referred to a b o v e , nothing came to our attention to indicate that the C o l lege had not complied w i t h the significant compliance terms and conditions of the g r a n t s referred to a b o v e . This report is intended solely for the use of W e s t Shore Community C o l l e g e , the cognizant a u d i t a g e n c y , and other federal a u d i t agencies and should not be used for any other p u r p o s e . Respectfully submitted, MERSKIN & M E R S K I N , P . C . -26- �MERSKIN & M E R S K I N , P.C. A U D I T O R ' S COMMENTS ON INTERNAL CONTROL FOR FEDERAL GRANT PROGRAMS A u g u s t 2 7 , 1986 Board of Trustees W e s t Shore Community College S c o t t v i l l e , Michigan 49454 We have examined the combined financial statements of the W e s t Shore Community College for the year ended June 3 0 , 1 9 8 6 , and have issued our report thereon dated A u g u s t 2 7 , 1 9 8 6 . As part of our e x a m i n a t i o n , we made a study and evaluation of the system of internal accounting control of the College to the e x t e n t we considered necessary to evaluate the system as required by generally accepted auditing s t a n d a r d s and the standards for financial and compliance audits contained in the U . S . General Accounting Office Standards for Audit of Governmental O r g a n i z a t i o n s , P r o g r a m s , Activities and F u n c t i o n s . For the purpose of this r e p o r t , we have c l a s s i f i e d the significant internal accounting controls in the following categories; r e v e n u e / r e c e i p t s , p u r c h a s e s , and payroll d i s b u r s e m e n t s . The purpose of our study and evaluation was to determine the n a t u r e , timing, and e x t e n t of the auditing p r o c e d u r e s necessary for expressing an opinion on the entity's financial statements. Our study evaluation was more limited than would be necessary to express an opinion on the system of internal accounting control taken as a whole or on any of the c a t e g o r i e s of controls identified a b o v e . The management of the College is responsible for establishing and maintaining a system of internal accounting c o n t r o l . In fulfilling this r e s p o n s i b i l i t y , e s t i m a t e s and judgments by m a n a g e m e n t are required to assess the expected benefits and r e l a t e d costs of control p r o c e d u r e s . The objectives of a system are to provide m a n a g e m e n t with r e a s o n a b l e , b u t not a b s o l u t e , assurance that assets are safeguarded a g a i n s t loss from unauthorized use or disposition, and that transactions are e x e c u t e d in accordance with management's authorization and recorded properly to p e r m i t the preparation of financial statements in accordance with generally accepted a c counting p r i n c i p l e s . Because of inherent limitations in any system of internal a c counting c o n t r o l , errors or irregularities may nevertheless occur and not be d e t e c t e d . A l s o , projection of any evaluation of the system to future periods is s u b j e c t to the risk that procedures may become inadequate because of changes in c o n d i t i o n s or that the degree of compliance with the procedures may d e t e r i o r a t e . -27- �MERSKIN & M E R S K I N , P.C. Page 2 Our study and evaluation made for the limited purpose described in the first paragraph would not necessarily disclose all material w e a k n e s s e s in the s y s t e m . A c c o r d i n g l y , we do n o t express an opinion on the system of internal accounting c o n trol of the College taken as a whole or on any of the categories of controls i d e n t ified in the first p a r a g r a p h . This report August 27, 1986. does not affect our report on the financial statements dated This report is intended solely for the use of W e s t Shore Community C o l l e g e , the cognizant a u d i t a g e n c y , and other federal a u d i t agencies and should not be used for any other p u r p o s e . Respectfully submitted, MERSKIN & M E R S K I N , P . C . -28- �MERSKIN & M E R S K I N , P.C. W e s t Shore Community Federal Schedule of Active College Programs Awards/Expenditures Fiscal Year Ended June 3 0 , 1986 Amount of Award Project Code Grant Title JTPA - Region 10 JTPA - Quick S t a r t JTPA - B . I . D . I . - W e s t Central JTPA - B . I . D . I . - N o r t h w e s t FMCS - Labor M g t . Cooperation Vocational Education - Single Parent - Sex Equity - Handicapped/Disadvantaged - Displaced H o m e m a k e r s - Program I m p r o v e m e n t Motorcycle Safety 38542111001 38562011004 38662011002 $ 3A36-1278 3A46-1428 3A16-8529 32G5-7878 3P16-6529 6675-33 Total $ 9,797 1,612 17,695 3,581 119,378 12,913 $ -29- 27,367 25,000 64,816 24,103 5,300 Grant Expenditure 311,562 27,367 1,200 64,816 6,688 1,093 9,797 1,612 4,595 3,581 118,266 9,239 $ 248,254 �W e s t Shore Community College -30- Foundation �MEMBERS: MICHIGAN ASSOCIATION OF IERTIFIED PUBLIC ACCOUNTANTS AMERICAN INSTITUTE OF IERTIFIED PUBLIC ACCOUNTANTS OFFICES: 26 N. STATE STREET HART, MICHIGAN 49420 PHONE: 616-873-2111 MERSKIN & MERSKIN, P.C. PARTNERS: DONALD T. MERSKIN, C.P.A, GUY MERSKIN, C.P.A. GERALD E. THORNE, C.P.A. DALE L. FITCH, C.P.A. KERRY E. CLARK, C.P.A. DAVID L. HATCH, C.P.A. 906 E. LUDINGTON AVENUE LUDINGTON, MICHIGAN 49431 PHONE: 616-845-6251 CERTIFIED PUBLIC ACCOUNTANTS A u g u s t 2 7 , 1986 67 BENZIE BOULEVARD BOX 157 BEULAH, MICHIGAN 49617 PHONE: 616-882-5144 14252 BLUFF ROAD TRAVERSE CITY, MICHIGAN 49684 PHONE: 616-223-7198 JACQUE SWAIN, C.P.A. 234 PARKDALE AVENUE MANISTEE, MICHIGAN 49660 PHONE: 616-723-6582 Board o f Directors W e s t Shore Community College Foundation We have examined the balance sheet as of June 3 0 , 1986 and 1985 o f the W e s t Shore Community College Foundation and the related statements of r e v e n u e s , e x p e n d itures and changes in fund balance for the years then e n d e d . Our examination was made in accordance w i t h generally accepted auditing standards a n d , a c c o r d i n g l y , included such tests of the accounting records and such other auditing procedures a s we considered necessary in the c i r c u m s t a n c e s . In our opinion, the aforementioned financial statements p r e s e n t fairly the financial position of the W e s t Shore Community College Foundation a t June 3 0 , 1986 and 1 9 8 5 , and the changes in fund balances and the current revenues and e x penditures for the y e a r s then e n d e d , in conformity with generally accepted a c counting principles a p p l i e d on a basis consistent with that of the preceding year. Respectfully submitted, MERSKIN & M E R S K I N , P . C . -31- �MERSKIN & M E R S K I N , P.C. West Shore Community College Foundation Balance S h e e t June 3 0 , 1986 June 30 1386 1986 Assets Cash and Temporary Investments Accrued Interest Receivable $186,070.74 781.83 $152,921.56 1,029.91 $186,852.57 $153,951.47 Liabil ities Accounts Payable $ 4.40 $ 130.11 Fund Balance Restricted Unrestricted $ 60,000.00 126,848.17 $ 50,000.00 103,821.36 Total Fund Balance $186,848.17 $153,821.36 Total $186,852.57 $153,951.47 Total Assets Liabilities and Fund Balance See Notes to the Financial S t a t e m e n t s . -32- �MERSKIN & M E R S K I N , P.C. W e s t Shore Community College Foundation Statement of R e v e n u e s , Expenditures and Changes in Fund Balance Fiscal Year Ended June 3 0 , 1986 June 3 0 , 1386 1986 Revenues Donations Membership Dues Interest Income - Investments Rental Income - Facilities Total $ 52,139.07 24,401.08 18,000.00 Total Restricted 50,100.00 Excess (Expenditures) $ Fund Balance - Unrestricted $ 86,151.83 Total $136,251.83 17,669.53 (100.00 June 3 0 , 1986 50,000.00 $ 103,821.36 $153,821.36 23,026.81 33,026.81 - (Expenditures) See Notes to Financial 17,569.53 10,000.00 A d d : Excess Revenues Excess $ (100.00) Fund Balance - June 3 0 , 1985 Deduct: $ 40,607.41 17,669.53 $ Excess Revenues Deduct: 2,745.41 32,357.00 5,505.00 $ 33,026.81 (Expenditures) Fund Balance - June 3 0 , 1984 Add: $ 1,848.67 48,409.10 11,255.57 $ 61,513.34 Expenditures Excess Revenues $ 58,176.94 $ Expendi tures M a t e r i a l s and Supplies Special Programs Scholarships 23,145.13 $ 94,540.15 Revenues $ 35,031.81 $ Statements. -33- 60,000.00 $ 126,848.17 $186,848.17 �MERSKIN & M E R S K I N , P.C. West Shore Community College Notes to Financial Foundation Statements General The W e s t Shore purposes of: Community gifts College Foundation was established or loans of p r o p e r t y , works in 1971 of a r t , historical for the 1. Securing etc. 2. Fund raising by means of l o a n , g i f t s , g r a n t and bequest for a broad v a r i ety of p u r p o s e s , including instruction and r e s e a r c h , e s t a b l i s h m e n t of e n d o w m e n t s , s c h o l a r s h i p s , f e l l o w s h i p s , p r o f e s s o r s h i p s , academic c h a i r s , cultural events and for b u i l d i n g s , equipment and other facility of all kinds. 3. To a c t in the capacity of a fiduciary purposes and o b j e c t i v e s . or trustee in carrying papers, out these The College is the sole beneficiary of any donations to, or funds raised by the Foundation. Note A - Accounting Policies The income and expenses of the W e s t Shore Community College accounted for according to the accrual method of a c c o u n t i n g . -34- Foundation are � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Business Office Description An account of the resource Audit reports, budget documents Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource AuditReportFYEndedJune30,1986and1985.pdf Audit Report https://wsccarchives.org/files/original/19d97446a6bb10e4839a7589b834e039.pdf a0e458ad18f19dfc2eaed05b1cc6d685 PDF Text Text West Shore Community College A u d i t Report S c o t t v i l l e , Michigan F i s c a l Years Ended June 30, 1987 and 1986 M E R S K I N & M E R S K I N , P.C. Certified Public Accountants Hart, Michigan 49420 Ludincton, Michigan 43431 Manistee, Michigan 49660 Bauiah, Michigan 49617 Traverse City, Michigan 49684 �MERSKIN & MERSKIN, P.C. West Shore Community College A u d i t Report S c o t t v i l l e , Michigan F i s c a l Years Ended June 30, 1987 and 1986 -1- �MERSKIN & MERSKIN, P.C. Contents P a ge West Shore Community College Audited Financial Statements Accountants' Report 4 Balance Sheets 5 Statement o f Changes i n Fund Balance 9_9a Statement o f Revenues, E x p e n d i t u r e s and Other Changes Notes t o F i n a n c i a l Statements Supplemental F i n a n c i a l _ 8 a 10-lOa 11-13 Information D e t a i l s o f General Fund E x p e n d i t u r e s and Other Changes 15-I5a D e t a i l s o f A u x i l i a r y Fund 16-16a D e t a i l s o f R e s t r i c t e d Funds 17-17a D e t a i l s o f Student Loan Funds 18-18a Student Loan Fund - Summary o f Loan T r a n s a c t i o n s 19 D e t a i l s o f Endowment Fund 20-20a Notes and Bonds Payable 2l-21a Schedules o f Bonds Payable 22-24 D e t a i l s o f C o n s t r u c t i o n Fund 25-25a Federal Grant Programs Auditors' Comments on Compliance f o r Federal Grant Programs 2 7 Auditors' Comments on I n t e r n a l C o n t r o l 28 Schedule o f A c t i v e Awards/Expenditures -2- f o r Federal Grant Programs 3 0 �MERSKIN & MERSKIN, P.C. Contents Page West Shore Community College Foundation Audited Financial Statements Accountants' Report 32 Balance Sheet 33 Statement o f Revenues, E x p e n d i t u r e s and Changes i n Fund Balance 34 Notes t o F i n a n c i a l Statements 35 -3- �MEMBERS: MICHIGAN ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF COUNSEL: DONALD T. MERSKIN, C.P.A. GUY MERSKIN, C.P.A. OFFICES: 26 N. STATE STREET HART, MICHIGAN 49420 PHONE: 616-873-2111 MERSKIN & MERSKIN, P.C. CERTIFIED PUBLIC ACCOUNTANTS 906 E. LUDINGTON AVENUE LUDINGTON, MICHIGAN 49431 PHONE: 616-845-6251 August 13, 1987 67 BENZIE BOULEVARD BOX 157 BEULAH, MICHIGAN 49617 PHONE: 616-882-5144 PRINCIPALS: GERALD E. THORNE, C.P.A. DALE L. FITCH, C.P.A. DAVID L. HATCH, C.P.A. 14252 BLUFF ROAD TRAVERSE CITY, MICHIGAN 49684 PHONE: 616-223-7198 KERRY E. CLARK, C.P.A. 1980-1987 234 PARKDALE AVENUE MANISTEE, MICHIGAN 49660 PHONE: 616-723-6582 Board o f T r u s t e e s West Shore Community College S c o t t v i l l e , Michigan 49454 Dear Board Members: We have examined t h e balance sheet as o f June 30, 1987 and 1986 o f t h e West Shore Community College and t h e r e l a t e d statements o f changes i n fund balances and c u r r e n t funds revenues, e x p e n d i t u r e s , and o t h e r changes f o r t h e y e a r s then ended. Our e x a m i n a t i o n was made i n accordance w i t h g e n e r a l l y accepted a u d i t i n g standards and t h e standards f o r f i n a n c i a l and compliance a u d i t s c o n t a i n e d i n t h e Standards f o r A u d i t o f Governmental O r g a n i z a t i o n s , Programs, A c t i v i t i e s and F u n c t i o n s , Ts^ sued by t h e U.S. General Accounting O f f i c e , and a c c o r d i n g l y , i n c l u d e d such t e s t s o f t h e a c c o u n t i n g r e c o r d s and such o t h e r a u d i t i n g procedures as we c o n s i d e r e d necessary i n t h e circumstances. I n our o p i n i o n , t h e aforementioned f i n a n c i a l statements p r e s e n t f a i r l y t h e f i n a n c i a l p o s i t i o n o f t h e West Shore Community College a t June 30, 1987 and 1986, and t h e changes i n fund balances and t h e c u r r e n t fund revenues, e x p e n d i t u r e s , and o t h e r changes f o r t h e y e a r s then ended, i n c o n f o r m i t y w i t h g e n e r a l l y accepted acc o u n t i n g p r i n c i p l e s a p p l i e d on a c o n s i s t e n t b a s i s . Our e x a m i n a t i o n was made f o r t h e purpose o f f o r m i n g an o p i n i o n on t h e comb i n e d f i n a n c i a l statements taken as a whole. The supplemental f i n a n c i a l i n f o r m a t i o n i s presented f o r purposes o f a d d i t i o n a l a n a l y s i s and i s n o t a r e q u i r e d p a r t o f t h e combined f i n a n c i a l statements. Such i n f o r m a t i o n has been s u b j e c t e d t o t h e a u d i t i n g procedures a p p l i e d i n t h e e x a m i n a t i o n o f t h e combined f i n a n c i a l s t a t e ments and, i n our o p i n i o n , i t i s f a i r l y s t a t e d i n a l l m a t e r i a l r e s p e c t s i n r e l a t i o n t o t h e combined f i n a n c i a l statements taken as a whole. Respectfully submitted, MERSKIN & MERSKIN, P.C. -4- �MERSKIN & MERSKIN, P.C. West Shore Community Comparative College Balance Sheet June 30, 1987 and 1986 Assets June 30, Current Funds U n r e s t r i c t e d Fund: General Fund: Cash and Temporary Investments - Note B Investments - Note E Property Taxes Receivable Accounts Receivable, l e s s allowance f o r p o s s i b l e l o s s e s o f $1,350.09 & $2,365.81 r e s p e c t i v e l y Grants Receivable Prepaid Expenses Due from Other Funds T o t a l General 100,356.42 $696,142.44 2,140.44 76,817.86 40,406.91 25,465.27 62,420.07 22,580.14 90,988.50 35,582.12 $ Total Current Unrestricted Funds Statements. -5- $ 87,112.20 $102,732.00 $1,024,165.94 T o t a l A u x i l i a r y Fund 252.00 86,860.20 $ A u x i l i a r y Fund Cash - Note B Inventories Grants Receivable 937,053.74 $ Fund See Notes t o F i n a n c i a l 669,719.79 $885,566.22 $988,298.22 322.00 88,210.00 14,200.00 �L i a b i l i t i e s and Fund Balances June 30, 1986 Current Funds U n r e s t r i c t e d Fund: General Fund: Accounts Payable Accrued P a y r o l l s Accrued Expenses Unearned Student T u i t i o n and Fees D e f e r r e d Revenue - Grants - State A p p r o p r i a t i o n s - Cultural Affairs Due t o Other Funds Fund Balance: Budgeted f o r F o l l o w i n g Year Unallocated $ 106,021.83 89,308.16 98,488.72 65,659.70 3,534.58 119,832.00 26.00 $ 85,732.50 82,639.95 93,737.86 43,711.00 44,581.69 115,581.00 39,066.13 86,524.00 \ 3,651.00 367,658.75 ! 376,865.09 T o t a l Fund Balance $ 454,182.75 $380,516.09 T o t a l General Fund $ 937,053.74 $885,566.22 $ 10,564.74 1,236.92 4,578.57 35,582.12 $ 10,173.97 1,048.99 5,491.36 62,238.11 35,149.85 23,779.57 87,112.20 $102,732.00 $1,024,165.94 $988,298.22 A u x i l i a r y Fund Accounts Payable Accrued P a y r o l l s Accrued Expenses Due t o Other Funds Fund Balance: Budgeted f o r F o l l o w i n g Year $ T o t a l A u x i l i a r y Fund Total Current U n r e s t r i c t e d Funds �MERSKIN & MERSKIN, P.C. West Shore Community College Comparative Balance Sheet - Continued June 30, 1987 and 1986 Assets June 30, Current Funds Continued R e s t r i c t e d Fund:' Cash - Note B Accrued I n t e r e s t Receivable Grants Receivable Endowment Income Receivable Prepaid Expenses 1,966.93 $ 40,413.35 20,360.22 109.78 8,870.18 16,555.03 14,683.71 T o t a l R e s t r i c t e d Fund $ T o t a l C u r r e n t Funds $1,083,101.25 $1,032,322.11 $ 21,951.54 209,817.79 80.37 $ 49,941.92 182,064.89 178.75 $ 231,849.70 $ 232,185.56 $ 10,298.50 36.50 $ 10,141.68 33.32 $ 10,335.00 $ 10,175.00 Student Loan Fund Cash - Note B Student Notes Receivable Accrued I n t e r e s t Receivable T o t a l Student Loan Fund Endowment Fund Cash and Temporary Investments Accrued I n t e r e s t Receivable Note B T o t a l Endowment Fund See Notes t o F i n a n c i a l Statement. -6- 58,935.31 $ 44,023.89 �L i a b i l i t i e s and Fund Balances C u r r e n t Funds - Continued R e s t r i c t e d Fund: Accounts Payable D e f e r r e d Revenue - Grants Fund Balance T o t a l R e s t r i c t e d Fund T987 $ $ June 30, 1986 - 42,013.30 16,922.01 58,935.31 $1,083,101.25 T o t a l C u r r e n t Funds Student Loan Fund Accounts Payable Fund Balance: College Student Loan Programs: Restricted Unrestricted $ $ 930.38 23,945.25 19,148.26 44,023.89 $1,032,322.11 $ 13.34 $ 629.93 $ 1,480.04 1,113.84 $ 2,593.6$ $ 1,174.18 979.38 2,153.56 229,402.07 $ Federal Student Loan Programs T o t a l Fund Balance 229,242.48 $ Endowment Fund Due t o Other Funds Fund Balance $ 231,565.63 $ T o t a l Student Loan Fund 231,836.36 231,849.70 $ 232,185.56 $ T o t a l Endowment Fund $ -6a- - $ 10,335.00 $ 10,335.00 - 10,175.00 10,175.00 �MERSKIN & MERSKIN, P.C. West Shore Community College Comparative Balance Sheet - Continued June 30, 1987 and 1986 Assets June 30, 1986 1987 P l a n t Funds C o n s t r u c t i o n Fund Due From Other Funds Total Construction $ Total Physical Properties 124,104.16 453.40 $ 130,690.12 387.34 62,800.00 124,557.56 $ 193,877.46 90,647.94 307.94 18,611.70 $ 87,905.69 312.26 15,232.42 109,567.58 $ 103,450.37 $ Physical Properties Land and Improvements B u i l d i n g s and B u i l d i n g Improvements F u r n i t u r e and Equipment L i b r a r y Books 21.06 $ T o t a l Debt Retirement Fund $ $ Debt Retirement Fund Cash and Temporary Investments - Note B Accrued I n t e r e s t Receivable Property Taxes Receivable 21.06 $ T o t a l Maintenance and Replacement Fund 21.06 $ Maintenance and Replacement Fund Cash and Temporary Investments - Note B Accrued I n t e r e s t Receivable Grants Receivable $ $ Fund 21.06 250,874.11 5,264,659.01 2,180,613.82 263,080.19 $ 250,874.11 5,159,714.25 2,013,352.05 251,477.61 $7,959,227.13 $8,193,373.33 T o t a l P l a n t Funds Agency Fund Cash - Note B Due from Other Funds $7,675,418.02 $7,972,766.91 $ See Notes t o F i n a n c i a l Statement. -7- $ 7,109.90 101,304.24 $ T o t a l Agency Fund 59,200.06 59,200.06 $ 108,414.14 �June 30, L i a b i l i t i e s and Fund Balances 1966 1987 P l a n t Funds C o n s t r u c t i o n Fund Fund Balance - U n r e s t r i c t e d Total Construction $ 21.06 21.06 $ 21.06 $ Maintenance and Replacement Fund Accounts Payable Due t o Other Funds Fund Balance - U n r e s t r i c t e d Reserve f o r Replacement Reserve f o r Encumbrances Unallocated $ $ Fund 21.06 28,199.53 21.06 $ 1,590.10 21.06 80,000.00 16,276.00 60.97 80,000.00 95,178.00 17,088.30 T o t a l Fund Balance $ 96,336.97 $ 192,266.30 T o t a l Maintenance and Replacement Fund $ 124,557.56 $ 193,877.46 $ 109,567.58 $ 103,450.37 $ 109,567.58 $ 103,450.37 $ 19,200.00 1, 050,000.00 6, 890,027.13 $ 15,000.00 1,250,000.00 6,410,418.02 Debt Retirement Fund Fund Balance - R e s t r i c t e d T o t a l Debt Retirement Fund Physical Properties Notes Payable Bonds Payable Fund Balance Total Physical Total Plant $7,959,227.13 Funds Agency Fund Accounts Payable P a y r o l l Taxes and Other Deductions Due t o D e p o s i t o r s $7,675,418.02 $8,193,373.33 Properties $7,972,766.91 $ -7a- $ 410.40 101,816.12 6,187.62 $ T o t a l Agency Fund 280.97 49,310.33 9,608.76 59,200.06 $ 108,414.14 �MERSKIN & MERSKIN, P.C. West Shore Community College Comparative Balance Sheet - Continued June 30, 1987 and 1986 Assets June 30, T o t a l A l l Funds Cash and Temporary Investments Marketable S e c u r i t i e s P r o p e r t y Taxes Receivable Accounts Receivable Student Notes Receivable Other Receivables Inventories Prepaid Expenses Land and Improvements B u i l d i n g s and B u i l d i n g Improvements F u r n i t u r e and Equipment L i b r a r y Books $ 118,968.12 40,406.91 209,817.79 41,291.56 86,860.20 107,543.53 250,874.11 5,264,659.01 2,180,613.82 263,080.19 See Notes t o F i n a n c i a l Statement. -8- $1,002,613.97 2,140.44 92,050.28 25,465.27 182,064.89 149,311.70 88,210.00 37,263.85 250,874.11 5,159,714.25 2,013,352.05 251,477.61 $9,542,256.16 Total 978,140.92 $9,254,538.42 �L i a b i l i t i e s and Fund Balances T o t a l A l l Funds Accounts Payable Accrued P a y r o l l Accrued Expenses Unearned Student T u i t i o n and Fees P a y r o l l Taxes and Other Deductions D e f e r r e d Revenue Due t o D e p o s i t o r s Notes and Bonds Payable Total 1MT June 30, 145,080.41 90,545.08 103,067.29 65,659.70 49,310.33 165,405.88 9,608.76 1,069,200.00 1986 ; $1,697,877.45 $1,883,208.12 16,922.01 1,480.04 229,242.48 10,335.00 109,567.58 Liabilities $ 19,148.26 1,174.18 229,402.07 10,175.00 103,450.37 99,467.28 83,688.94 99,229.22 43,711.00 101,816.12 184,107.94 6,187.62 1,265,000.00 Fund Balance: Restricted R e s t r i c t e d Fund College Student Federal Student Endowment Funds Debt Retirement Activities Loan Programs Loan Programs Funds R e s t r i c t e d Fund Balance Net Investment i n P h y s i c a l $ Properties 367,547.11 $6,890,027.13 Unrestricted: $ Budgeted f o r F o l l o w i n g Year Used f o r College Student Loan Programs Funds f o r C o n s t r u c t i o n P r o j e c t s Reserve f o r Replacement Funds f o r Maintenance and Replacement - Encumbered - Unencumbered Unallocated 363,349.88 $6,410,418.02 121,673.85 1,113.84 21.06 80,000.00 3,426.00 12,910.97 367,658.75 $ 27,430.57 979.38 21.06 80,000.00 95,178.00 17,088.30 376,865.09 586,804.47 $ 597,562.40 U n r e s t r i c t e d Fund Balance $ Total $9,542,256.16 -8a- $ $9,254,538.42 �MERSKIN & MERSKIN, P.C. West Shore Cotmiunity College Statement of Changes i n Fund Balances With Comparative Prior Year Totals Fiscal Year Ended June 30, 1987 Additions (Deductions): Current Funds Revenues & Other Changes Federal Grants & Contracts Property Taxes for Debt Retirement Gifts and Private Grants Investment Income Student Loan Interest Expenditures From Current Funds for Equipment and Other Capital Additions Expenditires for Capital Additions Notes and Bonds Retired Plant Assets Sold or Retired Current Funds Expenditures Uncollectable Loans Collection Expense Loan Cancellations Administrative Costs Distributions to Beneficiary Funds Expenditures Not Capitalized Interest and Bond Premium Mandatory Transfers: For Matching Grants Other Transfers In (Out): For Plant Improvements For Miscellaneous Purposes Net Increase (Decrease) f o r the Year Fund Balance at Beginning of Year Fund Balance at End of Year General Fund Auxiliary Fund Current Funds Total Unrestricted Fund Restricted Fund Student Loan Fund $3,679,556.48 $ 316,819.27 $3,996,375.75 $ 695,612.89 $ 350.00 4,214.66 1,767.14 (3,566,260.03) (308,174.99) (3,874,435.02) (684,502.61) (4,693.50) (510.57) (847.00) (39,152.00) (477.79) $ 73,666.66 $ 380,516.09 $ 454,182.75 $ 2,726.00 11,370.28 $ 23,779.57 (39,152.00) 2,248.21 85,036.94 $ 404,295.66 35,149.85 $ 489,332.60 $ See Notes to Financial Statements. -9- (13,750.00) (2,639.72) $ 19,148.26 280.73 231,555.63 16,508.54 $ 231,836.36 �Endowment Fund Plant Funds Construe- Maintenance & Debt tion Replacement Retirement Fund Fund Fund - $ 44,709.00 $ Combined Totals - A l l Funds Physical Properties 262,944.12 618.00 20,391.68 1,767.14 7,366.52 118,609.13 (199,449.98) (200,000.00) (760.64) 1986 $4,691,988.64 $4,638,265.52 59,582.00 96,477.00 14,873.00 262,944.12 108.00 8,049.86 160.00 760.64 June 30 1987 199,449.98 200,000.00 (38,450.00) 276,501.11 750.00 35,056.22 2,882.25 118,609.13 343,680.99 (38,450.00) (1,650.00) (4,558,937.63) (4,611,652.68) (4,693.50) (7,132.57) (510.57) (2,099.98) (847.00) (760.64) (1,791.43) (77,275.00) (1,791.43) (77,275.00) (1,558.80) (489.90) (88,800.00) 52,902.00 (2,248.21) $ 160.00 $ 10,175.00 $10,335.00 $ - $ 21.06 21.06 $ (95,929.33) $ 192,266.30 96,336.97 $ 6,117.21 $ 479,609.11 $ 472,634.94 $ 680,229.16 103,450.37 6,410,418.02 7,371,330.30 6,691,101.14 109,567.58 $6,890,027.13 $7,843,965.24 $7,371,330.30 -9a- �MERSKIN & MERSKIN, P.C. West Shore Community College Statement o f C u r r e n t Funds Revenues, Expenditures and Other Changes With Comparative F i g u r e s f o r P r i o r Year F i s c a l Year Ended June 30, 1987 F i s c a l Year General Fund Revenues and Other Changes T u i t i o n and Fees P r o p e r t y Taxes State A p p r o p r i a t i o n Federal Grants and C o n t r a c t s S t a t e Grants and C o n t r a c t s P r i v a t e G i f t s , Grants and C o n t r a c t s I n d i r e c t Cost Recoveries Endowment Income Investment Income Sales & Services o f A u x i l i a r y A c t i v i t i e s Other Sources Decrease i n R e s t r i c t e d Revenues Held f o r Future Expenditure T o t a l Revenues and Other $ $ 44,400.97 17,981.01 51,263.49 316,819.27 135,931.51 Changes $3,679,556.48 $ $3,566,260.03 Expenditures $ $1,507,954.15 140,045.40 347,502.61 415,439.45 606,337.02 548,981.40 Expenditures and T r a n s f e r s cpe In s t r u c t i o n P u b l i c Service I n s t r u c t i o n a l Support Student Services Institutional Administration P h y s i c a l P l a n t Operations Total 666,084.81 1,411,752.82 1,249,175.00 102,966.87 Auxi1iary Fund $ 316,819.27 308,174.99 308,174.99 Mandatory T r a n s f e r s I n (Out) For Matching Grants Other T r a n s f e r s I n (Out) For P l a n t Improvements For M i s c e l l a n e o u s Purposes (36,903.79) (2,726.00) T o t a l E x p e n d i t u r e s and T r a n s f e r s Revenues and Other Changes Over E x p e n d i t u r e s and T r a n s f e r s See Notes t o F i n a n c i a l 2,726.00 $3,605,889.82 $ 305,448.99 $ $ 11,370.28 (Under) Statements. -10- 73,666.66 �Ended June 30, 1987 Total Unrestricted Funds $ 666,084.81 1,411,752.82 1,249,175.00 102,966.87 Total Current Funds Restricted Fund $ $ 664,935.00 28,373.00 19,170.33 (17,981.01) 760.64 354.93 44,400.97 17,981.01 51,263.49 316,819.27 135,931.51 666,084.81 1,411,752.82 1,249,175.00 767,901.87 28,373.00 63,571.30 F i s c a l Year Ended 6/30/86 Total Current Funds $ 612,894.67 1,384,948.24 1,171,725.00 723,103.88 236,837.21 61,245.52 760.64 51,618.42 316,819.27 135,931.51 1,308.80 41,188.41 322,138.10 82,875.69 $3,996,375.75 $ 695,612.89 $4,691,988.64 $4,638,265.52 $1,507,954.15 140,045.40 347,502.61 723,614.44 606,337.02 548,981.40 $ 15,228.10 165,126.06 $1,523,182.25 305,171.46 347,502.61 1,227,762.89 606,337.02 548,981.40 $1,492,304.35 331,773.77 365,728.97 1,230,550.86 574,145.66 617,149.07 $3,874,435.02 $ $4,558,937.63 $4,611,652.68 504,148.45 684,502.61 (44,444.44) (36,903.79) (13,750.00) $3,911,338.81 $ $ $ 85,036.94 698,252.61 (50,653.79) $4,609,591.42 (2,639.72) $ 82,397.22 -10a- (85,404.00) 2,034.01 $4,739,467.11 $ (101,201.59) �MERSKIN & MERSKIN, P.C. West Shore Community College Notes t o F i n a n c i a l Note A - Summary o f S i g n i f i c a n t Accounting Page 1 Statements Policies The f i n a n c i a l statements have been prepared g e n e r a l l y i n accordance w i t h the acc o u n t i n g p r i n c i p l e s o u t l i n e d i n the American I n s t i t u t e o f C e r t i f i e d P u b l i c Account a n t s ' a u d i t g u i d e , A u d i t s o f Colleges and U n i v e r s i t i e s , and the Manual f o r Uniform F i n a n c i a l R e p o r t i n g — M i c h i g a n P u b l i c Community Colleges. E n t i t y : West Shore Community C o l l e g e , e s t a b l i s h e d i n 1967, i s l o c a t e d near S c o t t v i l l e , Michigan. The College p r o v i d e s e d u c a t i o n a l s e r v i c e s t o r e s i d e n t s of Manistee and Mason c o u n t i e s as w e l l as p o r t i o n s o f Lake, Oceana and Newaygo Counties. The College i s governed by a seven member board which i s e l e c t e d by r e s i d e n t s o f the aforementioned c o u n t i e s who are l o c a t e d w i t h i n the College's s e r v i c e area. Fund C l a s s i f i c a t i o n s : The accounts o f t h e College are r e p o r t i n g purposes i n t o t h e f o l l o w i n g seven funds: summarized f o r f i n a n c i a l The c u r r e n t funds, c o n s i s t i n g o f the General, A u x i l i a r y , and R e s t r i c t e d (use r e s t r i c t e d by donor or s u p p o r t i n g agency) Funds, are used t o account f o r t r a n s a c t i o n s r e l a t e d t o t h e i n s t r u c t i o n a l and academic programs, i n c l u d i n g r e s t r i c t e d purpose c o n t r a c t s and g r a n t s , r e s e a r c h , e x t e n s i o n and departmental programs and the a u x i l i a r y a c t i v i t i e s which p r o v i d e s e r v i c e s t o the s t u d e n t body, f a c u l t y and s t a f f and p u b l i c . The Statement o f C u r r e n t Funds Revenues, E x p e n d i t u r e s and Other Changes i s a statement o f f i n a n c i a l a c t i v i t i e s o f c u r r e n t funds r e l a t e d t o the c u r r e n t r e p o r t i n g year. I t does not p u r p o r t t o p r e s e n t the r e s u l t s o f o p e r a t i o n s or the net income or l o s s f o r the y e a r . The n o n c u r r e n t funds and t h e i r f u n c t i o n s are d e s c r i b e d as f o l l o w s : ( 1 ) Student Loan Fund i s used t o account f o r t r a n s a c t i o n s r e l a t e d t o loans t o s t u d e n t s ; ( 2 ) Endowment Fund i s used t o account f o r g i f t s which a l l o w only the income thereon t o be expended; ( 3 ) P l a n t Fund i s used t o account f o r t r a n s a c t i o n s r e l a t i n g t o i n vestment i n i n s t i t u t i o n a l p r o p e r t i e s , indebtedness i n c u r r e d i n the f i n a n c i n g t h e r e o f and r e s e r v e s f o r maintenance and replacements; ( 4 ) Agency Fund i s used t o account f o r amounts w i t h h e l d from p a y r o l l s , employer's p o r t i o n o f p a y r o l l taxes and v a r i o u s p a y r o l l b e n e f i t s , f o r amounts held i n custody f o r s t u d e n t s , C o l l e g e r e l a t e d o r g a n i z a t i o n s or o t h e r s . Investments and I n s t i t u t i o n a l P r o p e r t i e s : Investments and i n s t i t u t i o n a l p r o p e r t i e s are s t a t e d a t c o s t or market value a t date o f g i f t . Amounts expended d i r e c t l y from c u r r e n t funds f o r equipment or o t h e r c a p i t a l a d d i t i o n s are i n c l u d e d i n exp e n d i t u r e s or t r a n s f e r s o f such funds and are c a p i t a l i z e d w i t h i n the P l a n t Fund. D e p r e c i a t i o n i s not p r o v i d e d on p h y s i c a l p r o p e r t i e s . Inventories: I n v e n t o r i e s are s t a t e d a t t h e lower o f c o s t or market. Revenue R e c o g n i t i o n : A l l revenues and r e l a t e d e x p e n d i t u r e s i n c u r r e d i n c o n n e c t i o n w i t h the c u r r e n t summer s e s s i o n are d e f e r r e d a t June 30. R e s t r i c t e d Fund revenues a r e recognized o n l y t o t h e e x t e n t expended. -11- �MERSKIN & MERSKIN, P.C. West Shore Community College Notes t o F i n a n c i a l Page 2 Statements The S t a t e o f Michigan a p p r o p r i a t e s funds t o t h e College f o r o p e r a t i o n s c o v e r i n g the s t a t e ' s f i s c a l y e a r , October 1 t h r o u g h September 30. Since t h e College's f i s c a l year i s from J u l y 1 t h r o u g h June 30, revenue from t h e S t a t e i s r e c o g n i z e d proportionately. Note B - Cash and Temporary Investments Cash balances c o n s i s t o f t h e f o l l o w i n g : Cash C e r t i f i c a t e s o f Deposit 1387 June 30, 1986 268,856.49 733,757.48 $ $ $ Totals 223,771.16 754,369.76 978,140.92 $1,002,613.97 Note C - Bonds, Notes Payable and C a p i t a l i z e d Leases Payable The p r i n c i p a l and i n t e r e s t on notes a r e payable from General Fund revenues. The p r i n c i p a l and i n t e r e s t on bonds are payable from p r o p e r t y taxes assessed f o r debt retirement. The o b l i g a t i o n s are g e n e r a l l y c a l l a b l e , bear i n t e r e s t a t r a t e s v a r y i n g from 5.1% t o 7% and mature a t v a r i o u s dates through 1996. The minimum annual p r i n c i p a l and i n t e r e s t payments due w i t h i n one year from June 30, 1987 aggregate $272,850, w h i l e payments due w i t h i n one year from June 30, 1986 aggregate $277,275. Note D - R e t i r e m e n t C o n t r i b u t i o n s The C o l l e g e p a r t i c i p a t e s i n t h e Michigan P u b l i c School Employees R e t i r e m e n t System. The r e t i r e m e n t s t a t u e r e q u i r e s t h a t t h e College c o n t r i b u t e 9.35% o f t h e aggregate annual compensation p a i d t o a l l employees who are members o f t h e R e t i r e ment System. The employees covered by the plan i n c l u d e : a l l t e a c h i n g and nonteaching employees, employees p a i d from Federal Funds, s t u d e n t s working summer months b u t not a t t e n d i n g c l a s s e s and s t u d e n t s working i n a school o t h e r than t h e one they a r e e n r o l l e d i n and a t t e n d i n g c l a s s . D u r i n g the y e a r ended June 30, 1987, t h e College c o n t r i b u t e d $283,511 t o t h e r e t i r e m e n t system on b e h a l f o f i t s e l i g i b l e employees. -12- �MERSKIN & MERSKIN, P.C. West Shore Community College Notes t o F i n a n c i a l Page 3 Statements Note E - Investments Investments o f 46 shares o f Dow Chemical common stock was disposed o f on June 25, 1987, a t t h e then c u r r e n t market value l e s s s a l e s commission and SEC f e e . The n e t amount r e a l i z e d was $3,936.03. Aggregate market value a t June 30, 1986, was $4,278.00. Note F - R e p o r t i n g Change To meet S t a t e o f Michigan r e p o r t i n g r e q u i r e m e n t s , g r a n t revenue and e x p e n d i t u r e s f o r t h e Business and I n d u s t r i a l I n s t i t u t e and t h e Community Growth A l l i a n c e a r e b e i n g r e p o r t e d f o r f i s c a l 1987 i n t h e R e s t r i c t e d Fund and t h e Agency Fund respect i v e l y r a t h e r than the General Fund as i n f i s c a l 1986. The the e f f e c t o f t h i s r e p o r t i n g change i s n o t c o n s i d e r e d t o have a m a t e r i a l e f f e c t on f i n a n c i a l statements. -13- �MERSKIN & MERSKIN, P.C. Supplemental F i n a n c i a l -14- Information �MERSKIN & MERSKIN, P.C. West Shore Community College D e t a i l s o f General Fund E x p e n d i t u r e s and Other Changes F i s c a l Year Ended June 30, 1987 Salaries And Wages Instruction: General Business and P u b l i c S e r v i c e Trade, I n d u s t r i a l and T e c h n i c a l Health Occupations Totals S u p p l i e s and Expenses 502,828.11 229,858.53 167,690.73 183,750.56 $ $1,084,127.93 $ 395,120.20 40,553.18 16,384.56 $ 14,803.14 65,082.35 $ 158,696.39 89,906.31 88,326.30 58,191.20 Public Service: R e c r e a t i o n Center C u l t u r a l A r t s Program Total s $ $ 56,937.74 $ 79,885.49 I n s t r u c t i o n a l Support: I n s t r u c t i o n a l Media Center Instructional Administration Totals $ 52,815.81 180,121.32 $ $ 232,937.13 31,770.56 61,565.19 $ 93,335.75 $ 135,777.87 48,030.22 $ $ 183,508.09 $ 101,954.19 118,271.40 220,225.59 Student S e r v i c e s : Student Personnel Student F i n a n c i a l A i d Totals I n s t i t u t i onal Admi n i s t r a t i on: Board o f Trustees P r e s i d e n t ' s O f f i c e and P u b l i c I n f o r m a t i o n Business S e r v i c e s Totals $ - 113,347.36 169,341.14 $ 77,048.08 47,644.17 192,554.11 $ 317,246.36 247,087.31 $ $ 247,087.31 $ 145,620.29 134,923.53 280,543.82 $ I n t e r n a l Service O p e r a t i o n s : Data Processing Duplication $ $ Physical Plant Operations: Physical Plant Energy Services Totals 282,688.50 30,210.08 - $ 30,210.08 $ $ E l i m i n a t i o n o f R e b i l l e d Charges Net I n t e r n a l S e r v i c e - (30,210.08) $ Totals - $2,087,586.70 -15- $ 18,378.87 30,489.33 48,868.20 (48,868.20) - $1,386,357.21 �Capital Outlay Transfers $ - $ 14,009.87 197.71 13,652.58 845.86 28,706.02 $ $ 3,222.17 $ - $ 3,222.17 $ $ 19,260.23 1,969.50 21,229.73 $ $ $ $ $ $ 10,425.65 980.12 11,405.77 $ $ $ $ $ $ $ $ $ 15,576.00 41,878.00 $ - $ 21,350.27 $ $ 21,350.27 $ $ 26,015.75 $ 26,015.75 $ (26,015.75) $ - 92,316.12 $ 26,302.00 $ $ 675,534.37 319,962.55 269,669.61 242,787.62 $1,507,954.15 $ $ $ $ - $ 3,757.23 2,644.93 6,402.16 $ - Total $ _ - 41,878.00 $ 58,578.49 81,466.91 140,045.40 103,846.60 243,656.01 347,502.61 248,157.71 167,281.74 415,439.45 103,350.08 164,748.76 380,116.18 648,215.02 414,057.87 134,923.53 548,981.40 74,604.70 30,489.33 $ 105,094.03 (105,094.03) $ $ - $3,608,138.03 -15a- �MERSKIN & MERSKIN, P.C. West Shore Community College D e t a i l s o f A u x i l i a r y Fund F i s c a l Year Ended June 30, 1987 Activity Bookstore Food Service Fund Balance 7/1/86 Revenues Expenditures Salaries Supplies and and Wages Expenses $ 20,961.64 $207,282.80 $ 23,429.35 $161,031.03 2,817.93 109,536.47 46,193.02 68,165.58 $ 23,779.57 $316,819.27 $ 69,622.37 $229,196.61 -16- �Expenditures Capital Outlay $ 1,039.85 Revenues Over (Under) Expenditures $ 21,782.57 8,316.16 $ 9,356.01 Transfers In (Out) $ (7,594.36) $ 35,149.85 (13,138.29) $ 8,644.28 Fund Balance 6/30/87 - 10,320.36 $ 2,726.00 $ 35,149.85 -16a- �Details of Restricted Funds F i s c a l Year Ended June 30, 1987 Balance 7/1/86 Instruction Various Grants Revenues Governmental Private Indirect Grants and G i f t s , Grants Costs Contracts & Contracts (Deduct) $ 22,220.47 $ P u b l i c Service Various Grants $ Other $ (6,992.37) $ 181,276.06 (3,600.00) I n s t r u c t i o n a l Support Various Grants Student Services Various Grants 19,148.26 489,811.47 19,170.33 (8,349.54) 1,115.57 $ 19,148.26 $693,308.00 $ 19,170.33 $(18,941.91) $1,115.57 -17- �Expenditures Total $ 15,228.10 Salaries and Wages $ Supplies and Expenses Capital Outlay $ - Total 475.00 $ 14,753.10 177,676.06 20,178.90 131,450.56 12,296.60 163,926.06 501,747.83 4,142.25 500,245.30 - 504,387.55 - $694,651.99 $ 24,796.15 $646,448.96 -17a- - Balance 6/30/87 (13,750.00) $12,296.60 $ 15,228.10 $ Transfers I n (Out) $ 16,508.54 $683,541.71 $ (13,750.00) $ 16,508.54 �MERSKIN & MERSKIN, P.C. West Shore Community College D e t a i l s o f Student Loan Funds F i s c a l Year Ended June 30, 1987 Balance 7/1/86 College Loan Funds R e s t r i c t e d Funds Luzer Memorial Veterans Loan Fund $ 1,174.18 U n r e s t r i c t e d Funds: Emergency Student Loan Fund T o t a l C o l l e g e Loan Funds Contributions and Other $ 979.38 $ 2,153.56 Interest Income $ 350.00 $ 350.00 110.86 188.46 $ 299.32 Federal Student Loan Funds N a t i o n a l D i r e c t Student Loans Total Student Loan Fund 229,402.07 $231,555.63 -18- 5,682.48 $ 350.00 $ 5,981.80 �Balance 6/30/87 Deductions $ (195.00) $ 404.00 $ 209.00 5,842.07 $ 6,051.07 1,480.04 1,113.84 $ 2,593.88 229,242.48 $231,836.36 �MERSKIN & MERSKIN, P.C. West Shore Community College Student Loan Fund - Summary o f Loan T r a n s a c t i o n s F i s c a l Year Ended June 30, 1987 College Student Loans Luzer Memorial Emergency Veterans Student Loan Fund Loan Fund Loans O u t s t a n d i n g a t 7/1/86 $ Loans Granted During F i s c a l 1987 1 Deduct: Loan Payments C a n c e l l a t i o n o f Indebtedness Loans D e f a u l t e d t o Federal Government Other D e f a u l t e d Loans Loans O u t s t a n d i n g a t 6/30/87 Number o f Loans: O u t s t a n d i n g a t 7/1/86 Granted During Year Paid i n F u l l During Year C a n c e l l e d Loans D e f a u l t e d Loans O u t s t a n d i n g a t 6/30/87 200.00 1,602.00 1,802.00 $ 1 (1,702.00) - 100.00 3,738.50 3,838.50 Total $181,764.89 57,249.00 $239,013.89 $182,064.89 62,589.50 $244,654.39 (3,139.50) - 100.00 $ (23,944.60) (847.00) (28,786.10) (847.00) (510.00) $ Federal National Direct Student Loans (4,693.50) - (4,693.50) (510.00) 189.00 $209,528.79 $209,817.79 2 17 1 47 319 60 322 124 18 - 37 6 47 2 6 102 2 12 1 5 324 330 The above loans o u t s t a n d i n g have n o t been reduced by an allowance f o r d o u b t f u l amounts. -19- �MERSKIN & MERSKIN, P.C. West Shore Community College D e t a i l s o f Endowment Fund F i s c a l Year Ended June 30, 1987 Balance 7/1/86 Fund Gifts Income From Investments Endowment Funds McGhan S c h o l a r s h i p Plank Memorial K i l i e n Memorial Totals Scholarship Scholarship $ 2,000.00 $ 110.00 $ 160.00 5,000.00 - 364.49 3,175.00 50.00 236.15 $ 10,175.00 $ 160.00 $ 760.64 i -20- �Distributions o f Endowment T r a n s f e r s Income In (Out) 160.00 $ - Principal Balance 6/30/87 $ 2,110.00 364.49 - 5,000.00 236.15 - 3,225.00 - $ 10,335.00 760.64 $ -20a- �West Shore Community College Notes and Bonds Payable F i s c a l Year Ended June 30, 1987 Interest Rate Plant Fund Notes Payable State Savings Bank o f S c o t t v i l l e Telephone System Tractor Bonds Payable 1969 Community College B u i l d i n g Bonds 1969 Community College B u i l d i n g Series I I 1987 1991 Outstanding 7/1/86 " $ 15,000.00 5.3 t o 6.0% 1978-1991 250,000.00 6.0% 1978-1989 300,000.00 5.1 t o 7.0% 1979-1996 700,000.00 Bonds- 1975 Community College B u i l d i n g Bonds Totals 10.00 % 6.25 Maturity Date $1,265,000.00 A l l bonds are payable from ad valorem t a x e s , l e v i e d w i t h o u t l i m i t a t i o n as t o r a t e or amount as p r o v i d e d by S e c t i o n 6, A r t i c l e I I , o f t h e C o n s t i t u t i o n o f t h e S t a t e o f Michigan. �Issued $ 18,000.00 Retired $ 12,000.00 1,800.00 Outstanding 6/30/87 $ 3,000.00 16,200.00 50,000.00 100,000.00 200,000.00 50,000.00 $ 18,000.00 200,000.00 650,000.00 $213,800.00 $1,069,200.00 -21a- �MERSKIN & MERSKIN, P.C. West Shore Community College Schedule o f Bonds Payable Issue o f March 1 , 1969 On March 1 , 1969, t h e West Shore Community College d i s t r i c t issued $750,000 o f 1969 Community C o l l g e B u i l d i n g Bonds. The bonds a r e payable from ad valorem t a x e s , l e v i e d w i t h o u t l i m i t a t i o n as t o r a t e or amount as p r o v i d e d by Section 6, A r t i c l e I I , o f t h e C o n s t i t u t i o n o f t h e S t a t e o f Michigan. The amounts o f p r i n c i p a l and i n t e r e s t payments are as f o l l o w s : Maturity Year 1987 Interest Payable Sept. 1 , Payable March 1 , Interest Principal 1 1988 1989 1990 1991 = 1 — - — $ 5,675.00 Annual Requirement $ 5,675.Oo 5,675.00 4,262.50 2,850.00 1,425.00 $ 50,000.00 50,000.00 50,000.00 50,000.00 4,262.50 2,850.00 1,425.00 - 59,937.50 57,112.50 54,275.00 51,425.00 14,212.50 $200,000.00 $ 14,212.50 $228,425.00 The bonds a r e i n $5,000 denomination each w i t h i n t e r e s t a t v a r i o u s i n t e r e s t r a t e s as f o l l o w s : Bonds M a t u r i n g 1986-1987 1988-1989 1990-1991 -22- 5.60% 5.65% 5.70% �MERSKIN & MERSKIN, P.C. West Shore Community College Schedule o f Bonds Payable Issue o f September 1 , 1969 During December, 1969, t h e c o l l e g e d i s t r i c t s o l d $1,500,000 o f bonds d e s i g n a t e d "1969 Community College B u i l d i n g Bonds, S e r i e s I I " . The proceeds a r e f o r the purpose o f e r e c t i n g , f u r n i s h i n g and e q u i p p i n g b u i l d i n g s , s i t e purchase and development c o s t s . The bonds a r e payable from ad valorem t a x e s l e v i e d w i t h o u t l i m i t a t i o n as t o r a t e o r amount, as p r o v i d e d i n S e c t i o n 6, A r t i c l e IX o f t h e C o n s t i t u t i o n o f Michigan o f 1963. The annual debt requirements a r e as f o l l o w s : Maturity Year 1987 1 1988 1989 Payable March 1, Interest Principal = 1 — - — 6,000.00 3,000.00 $ 9,000.00 $200,000.00 $ 100,000.00 100,000.00 Interest Payable Sept. 1 , 6,000.00 Annual Requirement $ 6,000.00 3,000.00 $ 109,000.00 103,000.00 9,000.00 $218,000.00 The bonds are i n denominations o f $5,000 each w i t h i n t e r e s t a t 6%. -23- �MERSKIN & MERSKIN, P.C. West Shore Community College Schedule o f Bonds Payable Issue o f February 1 , 1975 On February 1 , 1975, t h e West Shore Community College d i s t r i c t issued $1,000,000 o f 1975 Community College b u i l d i n g bonds. The bonds a r e payable from ad valorem t a x e s , l e v i e d w i t h o u t l i m i t a t i o n as t o r a t e or amount as p r o v i d e d by S e c t i o n 6, A r t i c l e I I , o f t h e C o n s t i t u t i o n o f t h e S t a t e o f Michigan. Amounts o f p r i n c i p a l and i n t e r e s t payments a r e as f o l l o w s : Maturity Year Interest Rate 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 5.650% 5.850 6.050 6.200 6.400 6.550 6.700 6.800 6.900 6.900 Payable March 1, Interest P r i nci pal $ _ 21,150.00 19,687.50 17,418.75 15,093.75 12,693.75 10,237.50 7,725.00 5,175.00 2,587.50 $ 111,768.75 The bonds a r e i s s u e d i n $5,000 $ 50,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 $650,000.00 denominations. -24- Interest Payable Sept. 1 , $ 21,150.00 19,687.50 17,418.75 15,093.75 12,693.75 10,237.50 7,725.00 5,175.00 2,587.50 Annual Requirement $ 21,150.00 90,837.50 112,106.25 107,512.50 102,787.50 97,931.25 92,962.50 87,900.00 82,762.50 77,587.50 $ 873,537.50 $111,768.75 �MERSKIN & MERSKIN, P.C. West Shore Community College D e t a i l s o f C o n s t r u c t i o n Fund F i s c a l Year Ended June 30, 1987 Balance 7/1/86 Investment Income Unexpended A p p r o p r i a t i o n s f o r P l a n t : U n a p p r o p r i a t e d C o n s t r u c t i o n Funds 21.06 -25- $ Expenditures Not Capitalized �Transfers In (Out) $ Balance 6/30/87 $ 21.06 �Supplemental F i n a n c i a l Information Federal Grant Programs -26- �MEMBERS: MICHIGAN ASSOCIATION OF 1TIFIED PUBLIC ACCOUNTANTS AMERICAN INSTITUTE OF VTIFIED PUBLIC ACCOUNTANTS OF COUNSEL: DONALD T. MERSKIN, C.P.A. GUY MERSKIN, C.P.A. MERSKIN & M E R S K I N , P.C CERTIFIED PUBLIC ACCOUNTANTS August 13, 1987 PRINCIPALS: GERALD E. THORNE, C.P.A. DALE L. FITCH, C.P.A. DAVID L. HATCH, C.P.A. KERRY E. CLARK, C.P.A. 1980-1987 AUDITOR'S COMMENTS ON COMPLIANCE WITH OFFICES: 26 N. STATE STREET HART, MICHIGAN 49420 PHONE: 616-873-2111 906 E. LUDINGTON AVENUE LUDINGTON, MICHIGAN 49431 PHONE: 616-845-6251 67 BENZIE BOULEVARD BOX 157 BEULAH, MICHIGAN 49617 PHONE: 616-882-5144 14252 BLUFF ROAD TRAVERSE CITY, MICHIGAN 49684 PHONE: 616-223-7198 234 PARKDALE AVENUE MANISTEE, MICHIGAN 49660 PHONE: 616-723-6582 LAWS AND REGULATIONS Board o f Trustees West Shore Community College S c o t t v i l l e , Michigan 49454 We have examined t h e f i n a n c i a l statements o f t h e West Shore Community College f o r t h e y e a r ended June 30, 1987, and have i s s u e d our r e p o r t thereon dated August 13, 1987. Our examination was made i n accordance w i t h g e n e r a l l y accepted a u d i t i n g s t a n d a r d s ; t h e p r o v i s i o n s o f Standards f o r A u d i t o f Governmental O r g a n i z a t i o n s , Programs, A c t i v i t i e s and F u n c t i o n s , promulgated by t h e U.S. C o m p t r o l l e r General, as they p e r t a i n t o f i n a n c i a l and compliance a u d i t s ; t h e p r o v i s i o n s o f t h e O f f i c e o f Management and Budget's (0MB) Compliance Supplement - Uniform Requirements o f Programs f o r Grants t o S t a t e and Local Governments. C e r t a i n programs operated by t h e C o l l e g e were n o t i n c l u d e d i n 0MB's Compliance Supplement - Uniform Requirements f o r Grants t o State and Local Governments. For these programs we reviewed t h e terms and c o n d i t i o n s s e t f o r t h i n t h e award agreements and determined t h e major compliance requirements t o be t e s t e d ; t h e p r o v i s i o n s o f 0MB's C i r c u l a r A-110, U n i f o r m Requirements f o r Grants t o U n i v e r s i t i e s , H o s p i t a l s and Other N o n - P r o f i t O r g a n i z a t i o n s , and a c c o r d i n g l y , i n c l u d e d such t e s t s o f t h e a c c o u n t i n g r e c o r d s and such o t h e r a u d i t i n g procedures as we c o n s i d e r e d necessary i n the c i r c u m s t a n c e s . Based on our e x a m i n a t i o n , we found t h a t , f o r t h e items t e s t e d , t h e College c o m p l i e d w i t h the m a t e r i a l terms and c o n d i t i o n s o f t h e f e d e r a l g r a n t agreements, w i t h no questioned c o s t s e v i d e n t . F u r t h e r , based on our examination and t h e p r o cedures r e f e r r e d t o above, n o t h i n g came t o our a t t e n t i o n t o i n d i c a t e t h a t t h e C o l l e g e had n o t complied w i t h t h e s i g n i f i c a n t compliance terms and c o n d i t i o n s o f t h e g r a n t s r e f e r r e d t o above. T h i s r e p o r t i s i n t e n d e d s o l e l y f o r t h e use o f West Shore Community C o l l e g e , t h e c o g n i z a n t a u d i t agency, and o t h e r f e d e r a l a u d i t agencies and should n o t be used f o r any o t h e r purpose. Respectfully submitted, MERSKIN & MERSKIN, P.C. -27- �MEMBERS: MICHIGAN ASSOCIATION OF RTIFIED PUBLIC ACCOUNTANTS AMERICAN INSTITUTE OF RTIFIED PUBLIC ACCOUNTANTS OF COUNSEL: DONALD T. MERSKIN, C.P.A. GUY MERSKIN, C.P.A. MERSKIN & M E R S K I N , P.C. CERTIFIED PUBLIC ACCOUNTANTS August 13, 1987 PRINCIPALS: GERALD E. THORNE, C.P.A. DALE L. FITCH, C.P.A. DAVID L. HATCH, C.P.A. OFFICES: 26 N. STATE STREET HART, MICHIGAN 49420 PHONE: 616-873-2111 906 E. LUDINGTON AVENUE LUDINGTON, MICHIGAN 49431 PHONE: 616-845-6251 67 BENZIE BOULEVARD BOX 157 BEULAH, MICHIGAN 49617 PHONE: 616-882-5144 14252 BLUFF ROAD TRAVERSE CITY, MICHIGAN 49684 PHONE: 616-223-7198 KERRY E. CLARK, C.P.A. 1980-1987 234 PARKDALE AVENUE MANISTEE, MICHIGAN 49660 PHONE: 616-723-6582 AUDITOR'S COMMENTS ON INTERNAL CONTROL FOR FEDERAL GRANT PROGRAMS Board o f Trustees West Shore Community College S c o t t v i l l e , Michigan 49454 We have examined t h e f i n a n c i a l statements o f t h e West Shore Community College f o r t h e year ended June 30, 1987, and have i s s u e d our r e p o r t thereon dated August 13, 1987. As p a r t o f our e x a m i n a t i o n , we made a study and e v a l u a t i o n o f t h e system o f i n t e r n a l accounting c o n t r o l o f t h e College t o the e x t e n t we considered necessary t o e v a l u a t e the system as r e q u i r e d by g e n e r a l l y accepted a u d i t i n g standards and t h e s t a n d a r d s f o r f i n a n c i a l and compliance a u d i t s c o n t a i n e d i n t h e U.S. General Acc o u n t i n g O f f i c e Standards f o r A u d i t o f Governmental O r g a n i z a t i o n s , Programs, A c t i v i t i e s and F u n c t i o n s . For t h e purpose o f t h i s r e p o r t , we have c l a s s i f i e d t h e s i g n i f i c a n t i n t e r n a l a c c o u n t i n g c o n t r o l s i n t h e f o l l o w i n g c a t e g o r i e s ; revenue/ r e c e i p t s , purchases, and p a y r o l l disbursements. The purpose o f our study and e v a l u a t i o n was t o determine t h e n a t u r e , t i m i n g , and e x t e n t o f t h e a u d i t i n g procedures necessary f o r expressing an o p i n i o n on t h e e n t i t y ' s f i n a n c i a l s t a t e m e n t s . Our study e v a l u a t i o n was more l i m i t e d than would be necessary t o express an o p i n i o n on t h e system o f i n t e r n a l a c c o u n t i n g c o n t r o l taken as a whole or on any o f t h e c a t e g o r i e s o f c o n t r o l s i d e n t i f i e d above. The management o f t h e College i s r e s p o n s i b l e f o r e s t a b l i s h i n g and m a i n t a i n i n g a system o f i n t e r n a l a c c o u n t i n g c o n t r o l . In f u l f i l l i n g this responsibility, e s t i mates and judgments by management a r e r e q u i r e d t o assess t h e expected b e n e f i t s and r e l a t e d c o s t s o f c o n t r o l procedures. The o b j e c t i v e s o f a system a r e t o p r o v i d e management w i t h reasonable, b u t n o t a b s o l u t e , assurance t h a t assets are safeguarded a g a i n s t l o s s from u n a u t h o r i z e d use o r d i s p o s i t i o n , and t h a t t r a n s a c t i o n s a r e exec u t e d i n accordance w i t h management's a u t h o r i z a t i o n and recorded p r o p e r l y t o p e r m i t t h e p r e p a r a t i o n o f f i n a n c i a l statements i n accordance w i t h g e n e r a l l y accepted a c c o u n t i n g p r i n c i p l e s . Because o f i n h e r e n t l i m i t a t i o n s i n any system o f i n t e r n a l a c c o u n t i n g c o n t r o l , e r r o r s or i r r e g u l a r i t i e s may n e v e r t h e l e s s occur and n o t be det e c t e d . A l s o , p r o j e c t i o n o f any e v a l u a t i o n o f t h e system t o f u t u r e p e r i o d s i s subj e c t t o t h e r i s k t h a t procedures may become inadequate because o f changes i n c o n d i t i o n s o r t h a t t h e degree o f compliance w i t h t h e procedures may d e t e r i o r a t e . -28- �MERSKIN & MERSKIN, P.C. Page 2 Our study and e v a l u a t i o n made f o r t h e l i m i t e d purpose d e s c r i b e d i n t h e f i r s t paragraph would n o t n e c e s s a r i l y d i s c l o s e a l l m a t e r i a l weaknesses i n t h e system. A c c o r d i n g l y , we do n o t express an o p i n i o n on t h e system o f i n t e r n a l a c c o u n t i n g cont r o l o f t h e College taken as a whole or on any o f t h e c a t e g o r i e s o f c o n t r o l s i d e n t i f i e d i n t h e f i r s t paragraph. T h i s r e p o r t does n o t a f f e c t August 13, 1987. our r e p o r t on t h e f i n a n c i a l statements dated T h i s r e p o r t i s intended s o l e l y f o r t h e use o f West Shore Community C o l l e g e , t h e c o g n i z a n t a u d i t agency, and o t h e r f e d e r a l a u d i t agencies and should n o t be used f o r any o t h e r purpose. Respectfully submitted, MERSKIN & MERSKIN, P.C. -29- �MERSKIN & MERSKIN, P.C. West Shore Community Federal College Programs Schedule o f A c t i v e Awards/Expenditures F i s c a l Year Ended June 30, 1987 Project Code Grant T i t l e 3856201104 38572011012 38672011003 Amount o f Award Grant Expenditure JTPA - Quick S t a r t JTPA - Quick S t a r t JTPA - B . I . D . I . - West C e n t r a l JTPA - B . I . D . I . - Northwest Agribusiness - B.I.D.I. FCMS - Labor Mgt. Council - B.I.D.I, MCCOEES Enhancement JTPA - Region 8 - M i n i Grant Local A d m i n i s t r a t i o n JTPA - Quick S t a r t Basic Dispatcher T r a i n i n g 3N278103 545703 32A36053 5,000.00 24,000.00 30,000.00 32,414.80 375.46 7,206.75 1,200.00 2,000.00 14,398.00 11,866.00 3,760.47 V o c a t i o n a l Education: - Handicapped/Disadvantaged - S i n g l e Parent - Sex E q u i t y - Program Improvement JT & R - B . I . D . I . - Maint. & Replacement JT & R - B . I . D . I . 3L178628 3L371368 3L471568 3P176629 1987 1987 1986 10,516.00 10,614.00 1,594.00 43,509.00 68,950.00 13,750.00 9,659.92 7,000.92 10,614.00 972.34 43,509.00 59,266.01 13,750.00 9,659.92 $ 290,814.40 $248,982.19 Total -30- $ 5,000.00 11,945.00 30,000.00 23,670.01 375.00 5,206.00 1,200.00 2,000.00 14,398.00 6,655.52 3,760.47 �MERSKIN & MERSKIN, P.C. West Shore Community College -31- Foundation �MEMBERS: MICHIGAN ASSOCIATION OF ERTIFIED PUBLIC ACCOUNTANTS AMERICAN INSTITUTE OF ERTIFIED PUBLIC ACCOUNTANTS OF COUNSEL: DONALD T. MERSKIN, C.P.A. GUY MERSKIN, C.P.A. OFFICES: 26 N. STATE STREET HART, MICHIGAN 49420 PHONE: 616-873-2111 MERSKIN & M E R S K I N , P.C. 906 E. LUDINGTON AVENUE LUDINGTON, MICHIGAN 49431 PHONE: 616-845-6251 CERTIFIED PUBLIC ACCOUNTANTS August 13, 1987 67 BENZIE BOULEVARD BOX 157 BEULAH, MICHIGAN 49617 PHONE: 616-882-5144 PRINCIPALS: GERALD E. THORNE, C.P.A. DALE L. FITCH, C.P.A. DAVID L. HATCH, C.P.A. 14252 BLUFF ROAD TRAVERSE CITY, MICHIGAN 49684 PHONE: 616-223-7198 KERRY E. CLARK, C.P.A. 1980-1987 234 PARKDALE AVENUE MANISTEE, MICHIGAN 49660 PHONE: 616-723-6582 Board o f D i r e c t o r s West Shore Community College Foundation We have examined t h e balance sheet as o f June 30, 1987 and 1986 o f the West Shore Community College Foundation and t h e r e l a t e d statements o f revenues, expendi t u r e s and changes i n fund balance f o r t h e y e a r s then ended. Our e x a m i n a t i o n was made i n accordance w i t h g e n e r a l l y accepted a u d i t i n g standards and, a c c o r d i n g l y , i n c l u d e d such t e s t s o f t h e a c c o u n t i n g r e c o r d s and such o t h e r a u d i t i n g procedures as we considered necessary i n t h e c i r c u m s t a n c e s . I n our o p i n i o n , t h e aforementioned f i n a n c i a l statements p r e s e n t f a i r l y the , f i n a n c i a l p o s i t i o n o f t h e West Shore Community College Foundation a t June 30, 1987 and 1986, and t h e changes i n fund balances and t h e c u r r e n t revenues and exp e n d i t u r e s f o r t h e y e a r s then ended, i n c o n f o r m i t y w i t h g e n e r a l l y accepted acc o u n t i n g p r i n c i p l e s a p p l i e d on a b a s i s c o n s i s t e n t w i t h t h a t o f t h e p r e c e d i n g year. Respectfully submitted MERSKIN & MERSKIN, P.C. -32- �MERSKIN & MERSKIN, P.C. West Shore Community College Foundation Balance Sheet June 30, 1987 and 1986 June 30 1987 Assets Cash and Temporary Investments Accrued I n t e r e s t Receivable 1986 $183,969.63 780.58 $186,070.74 781.83 $184,750.21 $186,852.57 Liabilities Accounts Payable $ $ Fund Balance Restricted Unrestricted $ 60,000.00 124,746.03 $ 60,000.00 126,848.17 $184,746.03 $186,848.17 $184,750.21 $186,852.57 T o t a l Assets Liabilities and Fund Balance T o t a l Fund Balance Total L i a b i l i t i e s and Fund Balance See Notes t o t h e F i n a n c i a l Statements. -33- 4.18 4.40 �MERSKIN & MERSKIN, P.C. West Shore Community College Foundation Statement o f Revenues, E x p e n d i t u r e s and Chan ges i n Fund Balance F i s c a l Years Ended June 30, 1987 and 1986 June 30, 1987 Revenues Donations Membership Dues I n t e r e s t Income - Investments Rental Income - F a c i l i t i e s Total $ 51,624.43 $ 52,139.07 (455.00) 13,704.24 24,401.08 18,000.00 Revenues $ 64,873.67 (Expenditures) $ Excess Revenues $ Excess ( E x p e n d i t u r e s ) Fund Balance - June 30, 1987 See Notes t o F i n a n c i a l $ 61,513.34 Unrestricted Total 60,000.00 $ 103,821.36 $153,821.36 10,000.00 Fund Balance - June 30, 1986 Deduct: 1,848.67 48,409.10 11,255.57 $ (2,102.14) $ 33,026.81 Restricted Fund Balance - June 30, 1985 Add: $ 2,876.51 44,768.97 19,330.33 $ 66,975.81 Expenditures Excess Revenues $ 94,540.15 $ Expenditures M a t e r i a l s and S u p p l i e s Special Programs Scholarships Total 1986 $ Statements. -34- 23,026.81 33,026.81 60,000.00 $ 126,848.17 $186,848.17 - 60,000.00 (2,102.14) $ 124,746.03 (2,102.14 $184,746.03 �MERSKIN & MERSKIN, P.C. West Shore Community College Notes t o F i n a n c i a l Note 1 - Summary o f S i g n i f i c a n t Accounting A. Foundation Statements Policies Entity The West Shore Community College Foundation poses o f : gifts was e s t a b l i s h e d i n 1971 f o r t h e pur- 1. Securing etc. o r loans o f p r o p e r t y , works o f a r t , h i s t o r i c a l 2. Fund r a i s i n g by means o f l o a n , g i f t s , g r a n t and bequest ety o f purposes, i n c l u d i n g i n s t r u c t i o n and r e s e a r c h , endowments, s c h o l a r s h i p s , f e l l o w s h i p s , p r o f e s s o r s h i p s , c u l t u r a l events and f o r b u i l d i n g s , equipment and o t h e r kinds. 3. To a c t i n t h e c a p a c i t y o f a f i d u c i a r y purposes and o b j e c t i v e s . or t r u s t e e papers, f o r a broad v a r i establishment of academic c h a i r s , f a c i l i t i e s of a l l i n carrying o u t these The College i s t h e s o l e b e n e f i c i a r y o f any donations t o , o r funds r a i s e d by t h e Foundation. B. Basis o f Accounting The income and expenses o f t h e West Shore Community College counted f o r a c c o r d i n g t o t h e a c c r u a l method o f a c c o u n t i n g . -35- Foundation are ac- � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Business Office Description An account of the resource Audit reports, budget documents Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource AuditReportFYendedJune30,1987and1986.pdf Audit Report https://wsccarchives.org/files/original/83cdd995f3b62ec1ce990bfdde11159b.pdf 88a6984142deeb5d25c958cbd68c5ec1 PDF Text Text West Shore Community C o l l e g e A u d i t Report S c o t t v i l l e , Michigan F i s c a l Years Ended June 30, 1988 and 1987 MERSKIN & MERSKIN, P.C. Certified Public Accountants Hart, Michigan 49420 Ludington, Michigan 49431 Beulah, Michigan 49617 �MERSKIN & M E R S K I N , P C. West Shore Community College A u d i t Report S c o t t v i l l e , Michigan F i s c a l Years Ended June 30, 1988 and 1987 1 �MERSKIN & M E R S K I N , P.C. Contents Page West Shore Community C o l l e g e Audited Financial Auditor's Statements Report 3 Comparative Balance Sheets 4-7a Statement o f Changes i n Fund Balance 8-8a Statement o f Revenues, E x p e n d i t u r e s and Other Changes 9-9a Notes t o F i n a n c i a l Statements 10-16 SUPPLEMENTAL FINANCIAL INFORMATION D e t a i l s o f General Fund E x p e n d i t u r e s and Other Changes 18-18a D e t a i l s o f A u x i l i a r y Fund 19-19a D e t a i l s o f R e s t r i c t e d Funds 20-20a D e t a i l s o f S t u d e n t Loan Funds 21 S t u d e n t Loan Fund - Summary o f Loan T r a n s a c t i o n s 22 D e t a i l s o f Endowment Fund 23-23a D e t a i l s o f Construction 24-24a Fund F e d e r a l Grant Programs Auditor's Comments on Compliance W i t h Laws and R e g u l a t i o n s Auditor's Comments on I n t e r n a l C o n t r o l f o r F e d e r a l Grant Programs Schedule o f A c t i v e Awards/Expenditures 26 27-28 29 West Shore Community C o l l e g e Foundation A u d i t e d F i n a n c i a l Statements Auditor's Report 31 Balance Sheet 32 Statement o f Revenues, E x p e n d i t u r e s and Changes i n Fund Balance 33 Notes t o F i n a n c i a l Statements 34 2 �MEMBERS: MICHIGAN ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF COUNSEL: DONALD T. MERSKIN, C.P.A. GUY MERSKIN, C.P.A. MERSKIN & MERSKIN, P.C. CERTIFIED PUBLIC ACCOUNTANTS 906 E. LUDINGTON AVENUE LUDINGTON, MICHIGAN 49431 PHONE: 616-845-6251 67 BENZIE BOULEVARD BOX 157 BEULAH, MICHIGAN 49617 PHONE: 616-882-5144 PRINCIPALS: GERALD E, THORNE, C.P.A. DALE L. FITCH, C.P.A. DAVID L. HATCH, C.P.A. KERRY E. CLARK, C.P.A. 1980-1987 OFFICES: 26 N. STATE STREET HART, MICHIGAN 49420 PHONE: 616-873-2111 August 1 1 , 1988 Board o f T r u s t e e s West Shore Community C o l l e g e S c o t t v i l l e , Michigan 49454 Dear Board Members: We have examined t h e balance sheet as o f June 30, 1988 and 1987 o f t h e West Shore Community C o l l e g e and t h e r e l a t e d s t a t e m e n t s o f changes i n f u n d balances and c u r r e n t funds revenues, e x p e n d i t u r e s , and o t h e r changes f o r t h e years t h e n ended. Our e x a m i n a t i o n was made i n accordance w i t h g e n e r a l l y accepted a u d i t i n g s t a n d a r d s and t h e s t a n d a r d s f o r f i n a n c i a l and compliance a u d i t s c o n t a i n e d i n t h e Standards f o r A u d i t o f Governmental O r g a n i z a t i o n s . Programs, A c t i v i t i e s and F u n c t i o n s , i s s u e d by the U.S. General A c c o u n t i n g O f f i c e and, a c c o r d i n g l y , i n c l u d e d such t e s t s o f t h e acc o u n t i n g r e c o r d s and such o t h e r a u d i t i n g procedures as we c o n s i d e r e d necessary i n the c i r c u m s t a n c e s . I n our o p i n i o n , t h e aforementioned f i n a n c i a l statements present f a i r l y t h e f i n a n c i a l p o s i t i o n o f t h e West Shore Community C o l l e g e a t June 30, 1988 and 1987, and t h e changes i n f u n d balances and t h e c u r r e n t f u n d revenues, e x p e n d i t u r e s , and o t h e r changes f o r t h e y e a r s t h e n ended, i n c o n f o r m i t y w i t h g e n e r a l l y accepted acc o u n t i n g p r i n c i p l e s a p p l i e d on a c o n s i s t e n t b a s i s . Our e x a m i n a t i o n was made, f o r t h e purpose o f f o r m i n g an o p i n i o n on t h e combined f i n a n c i a l s t a t e m e n t s t a k e n as a whole. The Supplemental F i n a n c i a l I n f o r m a t i o n i s p r e s e n t e d f o r purposes o f a d d i t i o n a l a n a l y s i s and i s n o t a r e q u i r e d p a r t o f t h e combined f i n a n c i a l statements. Such i n f o r m a t i o n has been s u b j e c t e d t o t h e a u d i t i n g procedures a p p l i e d i n t h e e x a m i n a t i o n o f t h e combined f i n a n c i a l s t a t e m e n t s and, i n our o p i n i o n , i t i s f a i r l y s t a t e d i n a l l m a t e r i a l r e s p e c t s i n r e l a t i o n t o t h e comb i n e d f i n a n c i a l s t a t e m e n t s t a k e n as a whole. Respectfully submitted, MERSKIN & MERSKIN, P.C. 3 �MERSKIN & M E R S K I N , P.C. West Shore Community C o l l e g e Comparative Balance Sheet June 30. 1988 and 1987 Assets June 30, 1988 C u r r e n t Funds U n r e s t r i c t e d Fund: General Fund: Cash and Temporary I n v e s t m e n t s - Note B P r o p e r t y Taxes R e c e i v a b l e Accounts R e c e i v a b l e , l e s s allowance f o r p o s s i b l e l o s s e s o f $1,250.00 and $1,350.00 respectively P r e p a i d Expenses Due From Other Funds $ 38,055.83 112,013.11 61.546.32 669,719.79 100,356.42 40,406.91 90,988.50 35.582.12 A u x i l i a r y Fund Cash - Note B Inventories T o t a l A u x i l i a r y Fund T o t a l C u r r e n t U n r e s t r i c t e d Funds Statements. $ 795.799.37 $ 937.053.74 $ T o t a l General Fund See Notes t o F i n a n c i a l $ 584,184.11 - 1987 276.00 109.812.40 $ _ 252.00 86.860.20 $ 110,088.40 $ 87,112.20 $ 905,887.77 $1.024.165.94 �L i a b i l i t i e s and Fund Balances June 30, 1988 C u r r e n t Funds U n r e s t r i c t e d Fund: General Fund Accounts Payable Accrued P a y r o l l s Accrued Expenses Unearned S t u d e n t T u i t i o n and Fees D e f e r r e d Revenue - Grants - State Appropriations - Cultural Affairs $ $ Fund Balance: Budgeted f o r F o l l o w i n g Unallocated T o t a l Fund Balance Year $ $ 106,021.83 89,308.16 98,488.72 65,659.70 3,534.58 119,832.00 26.00 482,870.99 $ 51,411.00 250,138.98 301,549.98 $ 86,524.00 367,658.75 454,182.75 $ 795,799.37 $ 937,053.74 $ 6,329.33 1,087.70 966.97 61,546.32 $ 10,564.74 1,236.92 4,578.57 35,582.12 $ T o t a l General Fund A u x i l i a r y Fund Accounts Payable Accrued P a y r o l l s Accrued Expenses Due t o Other Funds Fund Balance: Budgeted f o r F o l l o w i n g 56,710.09 102,676.31 127,930.11 63,659.00 798.13 130,458.00 12,017.75 494,249.39 1987 Year $ 40,158.08 35,149.85 T o t a l A u x i l i a r y Fund $ 110,088.40 $ T o t a l C u r r e n t U n r e s t r i c t e d Funds ? 905,887.77 $1 ,024,165.94 4a 87.112.20 �MERSKIN & M E R S K I N , P.C. West Shore Community C o l l e g e Comparative Balance Sheet - Continued June 30. 1988 and 1987 June 30, Assets 1988 C u r r e n t Funds - Continued R e s t r i c t e d Fund: Cash - Note B Accrued I n t e r e s t R e c e i v a b l e Grants R e c e i v a b l e P r e p a i d Expenses s 1987 12,721.41 6.39 47,422.38 14,902.54 $ $ 1,966.93 - 40,413.35 16,555.03 T o t a l R e s t r i c t e d Fund $ 75,052.72 T o t a l C u r r e n t Funds $ 980,940.49 $1 ,083.101.25 $ 30,128.92 237,901.22 9.27 $ 21,951.54 209,817.79 80.37 $ 268,039.41 $ 231,849.70 $ 57,391.93 19.07 $ 10,298.50 36.50 $ 57,411.00 $ 10.335.00 Student Loan Fund Cash - Note B S t u d e n t Notes R e c e i v a b l e Accrued I n t e r e s t R e c e i v a b l e T o t a l S t u d e n t Loan Fund Endowment Fund Cash and Temporary Investments Accrued I n t e r e s t R e c e i v a b l e Note B T o t a l Endowment Fund See Notes t o F i n a n c i a l Statements. 5 58.935.31 �L i a b i l i t i e s and Fund Balance June 30. 1987 1988 C u r r e n t Funds - C o n t i n u e d R e s t r i c t e d Fund: Accounts Payable D e f e r r e d Revenue - Grants Accrued Expenses Accrued P a y r o l l s Fund Balance $ 2,848.52 51,821.50 2,237.82 306.45 17,838.43 $ $ T o t a l R e s t r i c t e d Fund $ 75,052.72 T o t a l C u r r e n t Funds $ 980.940.49 S t u d e n t Loan Fund Accounts Payable $ $ F e d e r a l S t u d e n t Loan Programs 16,922.01 58,935.31 $1,083,101.25 $ $ Fund Balance: C o l l e g e S t u d e n t Loan Programs: Restricted Unrestricted 42,013.30 1,387.58 1.580.51 2,968.09 265,071.32 13.34 $ 1,480.04 1.113.84 2,593.88 229,242.48 $ T o t a l Fund Balance $ 268,039.41 $ 231.836.36 T o t a l S t u d e n t Loan Fund $ 268,039.41 $ 231.849.70 $ 57.411.00 $ 10.335.00 $ 57,411.00 $ 10,335.00 Endowment Fund Fund Balance T o t a l Endowment Fund 5a �MERSKIN & M E R S K I N , P.C. West Shore Community C o l l e g e Comparative Balance Sheet - Continued June 30. 1988 and 1987 Assets June 30 1988 P l a n t Funds C o n s t r u c t i o n Fund: Due From Other Funds 1987 $ T o t a l Maintenance and Replacement Fund Debt R e t i r e m e n t Fund: Cash and Temporary I n v e s t m e n t s - Note B Accrued I n t e r e s t R e c e i v a b l e P r o p e r t y Taxes R e c e i v a b l e T o t a l Debt R e t i r e m e n t Fund 21.06 21.06 $ 21.06 $ 259,670.04 59.78 1.619.00 $ 124,104.16 453.40 $ Maintenance and Replacement Fund: Cash and Temporary I n v e s t m e n t s - Note B Accrued I n t e r e s t R e c e i v a b l e Grants R e c e i v a b l e $ $ T o t a l C o n s t r u c t i o n Fund 21.06 261,348.82 $ 124.557.56 $ 73,858.23 23.44 $ 90,647.94 307.94 18.611.70 - $ $ 109,567.58 $ Physical Properties: Land and Improvements B u i l d i n g s and B u i l d i n g Improvements F u r n i t u r e and Equipment L i b r a r y Books 73,881.67 254,483.74 267,452.21 5, 2, 377,072.48 275.616.23 $ 250,874.11 264,659.01 5, 2,180,613.82 263.080.19 Total Physical Properties $8,174,624.66 $7, 959,227.13 T o t a l P l a n t Funds $8, 509.876.21 $8,193,373.33 Agency Fund: Cash and Temporary I n v e s t m e n t s - Note B Accounts R e c e i v a b l e T o t a l Agency Fund See Notes t o F i n a n c i a l $ $ Statements. 6 24,071.58 275.00 S 24,346.58 $ 59,200.06 59,200.06 �L i a b i l i t i e s and Fund Balance June 30. 1987 1988 P l a n t Funds C o n s t r u c t i o n Fund: Fund Balance - U n r e s t r i c t e d Total Construction $ 21.06 21.06 $ 21.06 $ Maintenance and Replacement Fund: Accounts Payable Due t o Other Funds Fund Balance - U n r e s t r i c t e d : Reserve f o r Replacement Reserve f o r Encumbrances Unallocated $ $ Fund 21.06 15,023.00 21.06 $ 28,199.53 21.06 80,000.00 160,676.00 5.628.76 80,000.00 16,276.00 60.97 T o t a l Fund Balance $ 246.304.76 $ 96,336.97 T o t a l Maintenance and Replacement Fund $ 261.348.82 $ 124,557.56 $ 73.881.67 $ 109,567.58 $ 73,881.67 $ 109.567.58 $ 12,600.00 850,000.00 7, 312,024.66 $ 19,200.00 1 ,050,000.00 6 ,890,027.13 Debt R e t i r e m e n t Fund: Fund Balance - R e s t r i c t e d T o t a l Debt R e t i r e m e n t Fund Physical Properties: Notes Payable Bonds Payable Fund Balance Total Physical Total Plant $8,174,624.66 Funds Agency Fund: Accounts Payable P a y r o l l Taxes and Other Deductions Due t o D e p o s i t o r s $7 .959,227.13 $8, 509,876.21 Properties $8,193,373.33 $ 6a $ 280.97 49,310.33 9.608.76 $ T o t a l Agency Fund 5,479.85 8,840.82 10,025.91 24.346.58 $ 59.200.06 �MERSKIN & M E R S K I N , P.C. West Shore Community C o l l e g e Comparative Balance Sheet - Continued June 30. 1988 and 1987 June 30, Assets 1987 1988 T o t a l A l l Funds Cash and Temporary I n v e s t m e n t s P r o p e r t y Taxes R e c e i v a b l e Accounts R e c e i v a b l e Student Notes R e c e i v a b l e Other R e c e i v a b l e s Inventories P r e p a i d Expenses Land and Improvements B u i l d i n g s and B u i l d i n g Improvements F u r n i t u r e and Equipment L i b r a r y Books $1,042,302.22 38,330.83 237,901.22 49,159.33 109,812.40 126,915.65 254,483.74 5,267,452.21 2,377,072.48 275.616.23 See Notes t o F i n a n c i a l Statements. 7 978,140.92 118,968.12 40,406.91 209,817.79 41,291.56 86,860.20 107,543.53 250,874.11 5,264,659.01 2,180,613.82 263.080.19 $9.779.046.31 Total $ $9.542.256.16 �L i a b i l i t i e s and Fund Balance June 30, 1988 T o t a l A l l Funds Accounts Payable Accrued P a y r o l l Accrued Expenses Unearned Student T u i t i o n and Fees P a y r o l l Taxes and Other D e d u c t i o n s D e f e r r e d Revenue Due t o D e p o s i t o r s Notes and Bonds Payable Total 86,390.79 104,070.46 131,134.90 63,659.00 8,840.82 195,095.38 10,025.91 862.600.00 Liabilities 1987 $ 145,080.41 90,545.08 103,067.29 65,659.70 49,310.33 165,405.88 9,608.76 1.069.200.00 $1.461.817.26 $1.697.877.45 $ 17,838.43 1,387.58 265,071.32 57,411.00 73.881.67 $ R e s t r i c t e d Fund Balance $ 415.590.00 $ Investment i n Physical P r o p e r t i e s $7.312.024.66 $6.890,027.13 $ $ Fund Balance Restricted: R e s t r i c t e d Fund College Student Federal Student Endowment Debt R e t i r e m e n t Net Activities Loan Programs Loan Programs Funds Unrestricted: Budgeted f o r F o l l o w i n g Year Used f o r C o l l e g e Student Loan Programs Funds f o r C o n s t r u c t i o n P r o j e c t s Reserve f o r Replacement Funds f o r Maintenance and Replacement Encumbered Unencumbered 91,569.08 1,580.51 21.06 80,000.00 16,922.01 1,480.04 229,242.48 10,335.00 _ 109.567.58 160,676.00 5,628.76 250,138.98 367.547.11 121,673.85 1,113.84 21.06 80,000.00 3,426.00 12,910.97 367.658.75 Unallocated $ 589.614.39 $ 586.804.47 U n r e s t r i c t e d Fund Balance $9.779.046.31 Total 7a $9.542.256.16 �MERSKIN & M E R S K I N , P.C. West Shore Community C o l l e g e Statement of Changes i n Fund Balances With Comparative P r i o r Year T o t a l s F i s c a l Year Ended June 30, 1988 Current Funds General Auxiliary Fund Fund Total Unrestricted Fund Student Loan Fund Restricted Fund Additions(Deductions): Current Funds Revenues and Other Changes F e d e r a l Grant & C o n t r a c t s Property Taxes f o r Debt $3,744,770.20 $ 322,858.37 $4,067,628.57 $779,295.86 $ 40,000.00 Retirement G i f t s and P r i v a t e Grants Investment Income Student Loan I n t e r e s t Expenditures from Current 400.00 1,076.09 3,149.30 Funds f o r Equipment and Other C a p i t a l Additions Expenditures f o r C a p i t a l Additions Notes and Bonds R e t i r e d Plant A s s e t s Sold or R e t i r e d Current Funds Expenditures U n c o l l e c t i b l e Loans C o l l e c t i o n Expense Loan C a n c e l l a t i o n s D i s t r i b u t i o n s to B e n e f i c i a r y <3,749,721.97> <319,556.14> <4,069,278.11> <782,423.44> <155.00> <702.10> <12,009.24> Funds Expenditures Not C a p i t a l i z e d I n t e r e s t and Bond Premium Mandatory T r a n s f e r s : 4,444.00 <4,444.00> <4,444.00> For Matching Grants Other T r a n s f e r s I n (Out): <133,287.00> For Plant Improvements - <9.950.00> For Miscellaneous Purposes <133,287.00> 1.706.00 <8.244.Q0> 4.044.00 Net I n c r e a s e (Decrease) f o r the Year $ <152.632.77> $ 5.008.23 $ <147.624.54> $ 916.42 $ 36.203.05 Fund Balance a t Beginning of Year $ 454.182.75 $ 35,149.85 $ 489,332.60 $ 16,922.01 $ 231.836.36 Fund Balance a t End of Year $ 301.549.98 $ 40,158.08 $ 341,708.06 $ 17,838.43 $ 268.039.41 See Notes t o F i n a n c i a l Statements. 8 �Plant Funds Construction Fund Endowment Fund Maintenance & Replacement Fund $ - Combined T o t a l s - A l l Funds Debt Retirement Fund $ $ June 30, 1988 1987 $4,846,924.43 $4,691,988.64 166,316.00 59,582.00 209,758.07 111,443.00 - Physical Properties 3,149.30 262,944.12 618.00 20,391.68 1,767.14 114,797.50 118,609.13 14,873.00 209,758.07 47,076.00 47,476.00 2,931.54 18,513.07 8,237.82 6,267.62 114,797.50 <103,000.03> 103,000.03 204,200.00 <204,200.00> <38,450.00> <4,851,701.55> <4,558,937.63> <155.00> <702.10> <12,009.24> <4,693.50> <510.57> <847.00> <2,931.54> <2,931.54> <760.64> <934.60> <65,650.00> <934.60> <65,650.00> <1,791.43> <77,275.00> 133,287.00 4,200.00 $ 47.076.00 $_10,335.00 $ $ 57.411.00 $ $ 149.967.79 $ <35,685.91> $ 21.06 $ $ 109,567.58 $6.890.027.13 $7,844,378.71 $7.371,330.30 21.06 $ 246.304.76 $ $7,312.024.66 $8.317,229.05 $7.843.965.24 $_ 96.336.97 73,881.67 8a 421.997.53 $ 472.850.34 $ 472.634.94 �MERSKIN & M E R S K I N , P.C. West Shore Community C o l l e g e Statement o f C u r r e n t Funds Revenues. E x p e n d i t u r e s and Other Changes With Comparative F i g u r e s f o r P r i o r Year F i s c a l Year Ended June 30. 1988 F i s c a l Year General Auxiliary Fund Fund Revenues and Other Changes T u i t i o n and Fees P r o p e r t y Taxes State Appropriation F e d e r a l Grants and C o n t r a c t s S t a t e Grants and C o n t r a c t s P r i v a t e G i f t s , Grants & C o n t r a c t s I n d i r e c t Cost Recoveries Endowment Income I n v e s t m e n t Income Sales & S e r v i c e s o f A u x i l i a r y A c t i v i t i e s Other Sources Decrease i n R e s t r i c t e d Revenues Held f o r F u t u r e E x p e n d i t u r e $ $ — 33,602.00 2,074.63 — 53,617.07 - 322,858.37 98,071.24 - $3,744,770.20 Expenditures $ 322,858.37 $ $3,749,721.97 E x p e n d i t u r e s and T r a n s f e r s Instruction Public Service I n s t r u c t i o n a l Support Student S e r v i c e s I n s t i t u t i o n a l Administration Physical Plant Operations $ $1,620,115.13 146,373.73 360,033.41 420,345.18 635,910.13 566.944.39 T o t a l Revenues and Other Changes Total 734,509.80 1,429,824.80 1,304,725.00 88,345.66 319,556.14 - - 319,556.14 Mandatory T r a n s f e r s I n ( O u t ) For M a t c h i n g Grants $ Other T r a n s f e r s I n ( O u t ) For P l a n t Improvements For M i s c e l l a n e o u s Purposes $ <133,287.00> <9,950.00> $ T o t a l E x p e n d i t u r e s and T r a n s f e r s $3,897,402.97 $ 317.850.14 $ <152.632.77> $ 5.008.23 Revenues and Other Changes Over E x p e n d i t u r e s and T r a n s f e r s <4.444.00> $ 1.706.00 (Under) 9 �Total Unrestricted Funds $ Memorandum Only June 30, 1988 1987 Total Total Current Current Funds Funds Restricted Fund 734,509.80 1,429,824.80 1,304,725.00 88,345.66 $ 704,167.61 47,160.05 16,430.44 <7,576.18> 33,602.00 2,074.63 53,617.07 322,858.37 98,071.24 3,881.65 15,232.29 734,509.80 $ 666,084.81 1,429,824.80 1,411,752.82 1,304,725.00 1,249,175.00 792,513.27 767,901.87 47,160.05 28,373.00 50,032.44 63,571.30 <5,501.55> 760.64 51,618.42 57,498.72 316,819.27 322,858.37 135,931.51 113,303.53 $4.067.628.57 $ 779.295.86 $4.846.924.43 $4.691.988.64 $1,620,115.13 146,373.73 360,033.41 739,901.32 635,910.13 566.944.39 $ 14,306.33 156,560.01 517.66 611,039.44 $1,634,421.46 302,933.74 360,551.07 1,350,940.76 635,910.13 566.944.39 $1,523,182.25 305,171.46 347,502.61 1,227,762.89 606,337.02 548.981.40 $4.069.278.11 $ 782.423.44 $4.851.701.55 $4.558.937.63 $ <4.444.00> $_ $ <133,287.00> $ <8.244.00> $4.215.253.11 $ $ <147.624.54> $_ $ 4.044.00 778.379.44 916.42 <4.444.00> $_ $ <133,287.00> $ <4.200.00> $4.993.632.55 $4.609.591.42 $ <146.708.12> $ 9a <50,653.79> - 82.397.22 �MERSKIN & MERSKIN, P.C. West Shore Community C o l l e g e Notes t o F i n a n c i a l Page 1 Statements Note A - Summary o f S i g n i f i c a n t A c c o u n t i n g P o l i c i e s The f i n a n c i a l s t a t e m e n t s have been p r e p a r e d i n a c c o r d a n c e w i t h t h e a c c o u n t i n g p r i n c i p l e s o u t l i n e d i n t h e American I n s t i t u t e o f C e r t i f i e d P u b l i c A c c o u n t a n t s ' a u d i t g u i d e , A u d i t s o f C o l l e g e s and U n i v e r s i t i e s , and t h e Manual f o r U n i f o r m F i n a n c i a l R e p o r t i n g — M i c h i g a n P u b l i c Community C o l l e g e s . Entity: West Shore Community C o l l e g e , e s t a b l i s h e d i n 1967, i s l o c a t e d near S c o t t v i l l e , Michigan. The C o l l e g e p r o v i d e s e d u c a t i o n a l s e r v i c e s t o r e s i d e n t s o f M a n i s t e e and Mason c o u n t i e s as w e l l as p o r t i o n s o f Lake, Oceana and Newaygo Counties. The C o l l e g e i s governed by a seven member Board which i s e l e c t e d by r e s i d e n t s o f t h e a f o r e m e n t i o n e d c o u n t i e s who are l o c a t e d w i t h i n t h e C o l l e g e ' s D i s trict. Fund C l a s s i f i c a t i o n s : The accounts o f t h e C o l l e g e are o r g a n i z e d on t h e b a s i s o f f u n d s , each o f which i s c o n s i d e r e d a s e p a r a t e a c c o u n t i n g e n t i t y . The o p e r a t i o n s of each f u n d are accounted f o r w i t h a s e p a r a t e s e t o f s e l f - b a l a n c i n g accounts t h a t comprise i t s a s s e t s , l i a b i l i t i e s , fund e q u i t y , revenues, and e x p e n d i t u r e s , as appropriate. Resources are a l l o c a t e d t o and accounted f o r i n i n d i v i d u a l funds based upon t h e purposes f o r which t h e y are t o be spent and t h e means by which spending a c t i v i t i e s are c o n t r o l l e d . The v a r i o u s funds are grouped, i n t h e f i n a n c i a l s t a t e ments i n t h i s r e p o r t , i n t o c u r r e n t funds and o t h e r funds as f o l l o w s : The c u r r e n t f u n d s , c o n s i s t i n g o f t h e G e n e r a l , A u x i l i a r y , and R e s t r i c t e d ( u s e r e s t r i c t e d by donor o r s u p p o r t i n g agency) Funds, are used t o account f o r t r a n s a c t i o n s r e l a t e d t o t h e i n s t r u c t i o n a l and academic programs, including restricted purpose c o n t r a c t s and g r a n t s , r e s e a r c h , e x t e n s i o n and d e p a r t m e n t a l programs and the a u x i l i a r y a c t i v i t i e s which p r o v i d e s e r v i c e s t o t h e s t u d e n t body, f a c u l t y and s t a f f , and p u b l i c . The S t a t e m e n t o f C u r r e n t Funds Revenues, E x p e n d i t u r e s and Other Changes i s a statement o f f i n a n c i a l a c t i v i t i e s o f c u r r e n t funds r e l a t e d t o the c u r r e n t r e p o r t i n g year. I t does n o t p u r p o r t t o p r e s e n t t h e r e s u l t s o f operat i o n s o r t h e n e t income o r l o s s f o r t h e year. The n o n - c u r r e n t funds and t h e i r f u n c t i o n s are d e s c r i b e d as f o l l o w s : (1) Student Loan Fund i s used t o account f o r t r a n s a c t i o n s r e l a t e d t o l o a n s t o s t u d e n t s ; ( 2 ) Endowment Fund i s used t o account f o r g i f t s which a l l o w o n l y t h e income t h e r e o n t o be expended; (3) P l a n t Fund i s used t o account f o r t r a n s a c t i o n s r e l a t i n g t o i n vestment i n i n s t i t u t i o n a l p r o p e r t i e s , indebtedness i n c u r r e d i n the f i n a n c i n g t h e r e o f and r e s e r v e s f o r maintenance and replacements; (4) Agency Fund i s used t o account f o r amounts w i t h h e l d from p a y r o l l s , employer's p o r t i o n o f p a y r o l l t a x e s and v a r i o u s p a y r o l l b e n e f i t s , f o r amounts h e l d i n custody f o r s t u d e n t s , C o l l e g e r e l a t e d organizations or others. 10 �MERSKIN & MERSKIN, P.C. West Shore Community C o l l e g e Notes t o F i n a n c i a l Page 2 Statements Note A - Summary o f S i g n i f i c a n t A c c o u n t i n g P o l i c i e s - c o n t i n u e d Method o f A c c o u n t i n g : The accompanying f i n a n c i a l statements have been p r e p a r e d on t h e a c c r u a l b a s i s w i t h t h e f o l l o w i n g e x c e p t i o n s , which i s common p r a c t i c e i n c o l l e g e s and u n i v e r s i t i e s : ( 1 ) i n t e r e s t on s t u d e n t loans are r e c o r d e d when r e c e i v e d , and ( 2 ) R e s t r i c t e d Fund revenue i s r e c o g n i z e d o n l y t o t h e e x t e n t expended. I n v e s t m e n t s and I n s t i t u t i o n a l P r o p e r t i e s : I n v e s t m e n t s and institutional p r o p e r t i e s are s t a t e d a t c o s t o r market v a l u e a t d a t e o f g i f t . Amounts expended d i r e c t l y from c u r r e n t funds f o r equipment o r o t h e r c a p i t a l a d d i t i o n s are i n c l u d e d i n e x p e n d i t u r e s o r t r a n s f e r s o f such funds and are c a p i t a l i z e d w i t h i n t h e P l a n t Fund. D e p r e c i a t i o n i s n o t p r o v i d e d on p h y s i c a l p r o p e r t i e s . Inventories: I n v e n t o r i e s are s t a t e d a t t h e lower o f c o s t o r market. Revenue R e c o g n i t i o n : A l l revenues and r e l a t e d e x p e n d i t u r e s i n c u r r e d i n c o n n e c t i o n w i t h t h e c u r r e n t summer s e s s i o n are d e f e r r e d a t June 30. R e s t r i c t e d Fund revenues are r e c o g n i z e d o n l y t o t h e e x t e n t expended. The S t a t e o f M i c h i g a n a p p r o p r i a t e s funds t o t h e C o l l e g e f o r o p e r a t i o n s c o v e r i n g t h e S t a t e ' s f i s c a l y e a r , October 1 t h r o u g h September 30. Since t h e C o l l e g e ' s f i s c a l y e a r i s f r o m J u l y 1 t h r o u g h June 30, r e v e n u e f r o m t h e S t a t e i s r e c o g n i z e d proportionately. T o t a l Columns: T o t a l columns on t h e Combined Statements are c a p t i o n e d "Memorandum Only" t o i n d i c a t e t h a t t h e y are p r e s e n t e d o n l y t o f a c i l i t a t e f i n a n c i a l a n a l y s i s . Data i n these columns do n o t p r e s e n t f i n a n c i a l p o s i t i o n o r changes i n f i n a n c i a l p o s i t i o n i n c o n f o r m i t y w i t h g e n e r a l l y accepted a c c o u n t i n g p r i n c i p l e s . Neither i s such d a t a comparable t o a c o n s o l i d a t i o n . I n t e r f u n d e l i m i n a t i o n s have n o t been made i n t h e a g g r e g a t i o n o f t h i s d a t a . Note B - Cash and Temporary Cash balances Investments c o n s i s t of the f o l l o w i n g : June 30, 1988 Cash C e r t i f i c a t e s of Deposit Totals $ 1987 461,196.77 581.105.45 $ 223,771.16 754.369.76 $1.042.302.22 $ 978.140.92 II �MERSKIN & M E R S K I N , P.C. West Shore Community C o l l e g e Page 3 Notes t o F i n a n c i a l Statements Note C - Taxes R e c e i v a b l e The c o l l e c t i n g C o u n t i e s f u n d t h e C o l l e g e ' s d e l i n q u e n t r e a l p r o p e r t y t a x r o l l . N o r m a l l y , t h e f i n a l d i s t r i b u t i o n i s r e c e i v e d p r i o r t o June 30 o f each year. For the year ended June 30, 1987, however, t h e d e l i n q u e n t r e a l p r o p e r t y t a x d i s t r i b u t i o n o f $118,968 was n o t r e c e i v e d u n t i l August 1987. The c u r r e n t year d e l i n q u e n t tax d i s t r i b u t i o n was r e c e i v e d p r i o r t o June 30, 1988; hence, t h e r e i s no r e l a t e d receivable a t t h a t date. Note D - Bonds and Notes Payable The p r i n c i p a l and i n t e r e s t on n o t e s a r e payable from General Fund revenues. The p r i n c i p a l and i n t e r e s t on bonds a r e payable from p r o p e r t y t a x e s assessed f o r debt retirement. The o b l i g a t i o n s a r e g e n e r a l l y c a l l a b l e , bear i n t e r e s t a t r a t e s v a r y i n g from 5.1% t o 10% and mature a t v a r i o u s d a t e s t h r o u g h 1996. The minimum annual p r i n c i p a l and i n t e r e s t payments due w i t h i n one year from June 30, 1988 aggregate $278,900, w h i l e payments due w i t h i n one y e a r f r o m June 30, 1987 a g g r e g a t e d $272,050. 1. Bonds Payable I s s u e o f March 1, 1969 On March 1, 1969, t h e West Shore Community C o l l e g e D i s t r i c t i s s u e d $750,000 o f 1969 Community C o l l e g e B u i l d i n g Bonds. The bonds a r e payable from ad valorem t a x e s , l e v i e d w i t h o u t l i m i t a t i o n as t o r a t e o r amount as p r o v i d e d by S e c t i o n 6, A r t i c l e I I , o f the C o n s t i t u t i o n of the State o f Michigan. The amounts o f p r i n c i p a l and i n t e r e s t payments a r e as f o l l o w s : Maturity Year 1988 1989 1990 1991 Payable March 1, Interest Principal Interest Payable Sept. 1, Annual Requirement $ 4,262.50 2,850.00 1.425.00 $ 50,000.00 50,000.00 50,000.00 $ 4,262.50 2,850.00 1,425.00 - $ $ 8.537.50 $150.000.00 $ 8.537.50 $167.075.00 The bonds a r e i n $5,000 d e n o m i n a t i o n each w i t h r a t e s as f o l l o w s : Bonds M a t u r i n g 1988-1989 1990-1991 12 4,262.50 57,112.50 54,275.00 51,425.00 interest at various 5.65% 5.70% interest �MERSKIN & MERSKIN, P.C. West Shore Community C o l l e g e Page 4 Notes t o F i n a n c i a l Statements Note D - Bonds and Notes Payable - c o n t i n u e d 1. Bonds Payable - c o n t i n u e d I s s u e o f September 1, 1969 D u r i n g December 1969, t h e c o l l e g e d i s t r i c t s o l d $1,500,000 o f bonds d e s i g n a t e d "1969 Community C o l l e g e B u i l d i n g Bonds, S e r i e s I I " . The proceeds a r e f o r t h e p u r p o s e o f e r e c t i n g , f u r n i s h i n g and e q u i p p i n g b u i l d i n g s , s i t e p u r c h a s e and development c o s t s . The bonds a r e p a y a b l e from ad v a l o r e m t a x e s l e v i e d w i t h o u t l i m i t a t i o n as t o r a t e o r amount, as p r o v i d e d i n S e c t i o n 6, A r t i c l e IX o f t h e C o n s t i t u t i o n o f M i c h i g a n o f 1963. The a n n u a l d e b t r e q u i r e m e n t s a r e as f o l l o w s : Maturity Year 1988 1989 Payable March 1. Interest Principal Interest Payable Sept. 1, Annual Requirement $ 3.000.00 $ 100.000.00 $ 3,000.00 - $ 3,000.00 103.000.00 $ 3.000.00 $100.000.00 $ 2.000.00 $106.000.00 The bonds a r e i n d e n o m i n a t i o n s o f $5,000 each w i t h i n t e r e s t a t 6%. 13 �West Shore Community C o l l e g e Notes t o F i n a n c i a l Page 5 Statements Note D - Bonds and Notes Payable - c o n t i n u e d 1. Bonds Payable - c o n t i n u e d I s s u e o f February 1. 1975 On February 1, 1975, t h e West Shore Community C o l l e g e D i s t r i c t i s s u e d $1,000,000 o f 1975 Community C o l l e g e B u i l d i n g Bonds. The bonds a r e payable from ad valorem t a x e s , l e v i e d w i t h o u t l i m i t a t i o n as t o r a t e o r amount as p r o v i d e d by S e c t i o n 6, A r t i c l e I I , o f t h e C o n s t i t u t i o n o f t h e S t a t e o f M i c h i g a n . Amounts o f p r i n c i p a l and i n t e r e s t payments a r e as f o l l o w s : Maturity Year 1988 1989 1990 1991 1992 1993 1994 1995 1996 Interest Rate 5.850 % 6.050 6.200 6.400 6.550 6.700 6.800 6.900 6.900 Payable March 1, Interest Principal $ $ 19,687.50 17,418.75 15,093.75 12,693.75 10,237.50 7,725.00 5,175.00 2.587.50 $ 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 90,618.75 $600,000.00 Interest Payable Sept. 1. $19,687.50 17,418.75 15,093.75 12,693.75 10,237.50 7,725.00 5,175.00 2,587.50 $90,618.75 Annual Requirement $ 19,687.50 112,106.25 107,512.50 102,787.50 97,931.25 92,962.50 87,900.00 82,762.50 77,587.50 $781,237.50 The bonds a r e i s s u e d i n $5,000 d e n o m i n a t i o n s . 2. Notes Payable - Other l o n g - t e r m debt o f t h e C o l l e g e i n c l u d e s a note payable t o S t a t e Savings Bank o f S c o t t v i l l e on a t r a c t o r purchase. The $18,000 n o t e which matures on December 3, 1991, c a r r i e s i n t e r e s t o f 6.25%. The C o l l e g e r e t i r e d t h e $3,000 balance o f a t e l e p h o n e system n o t e , p a y a b l e t o t h e same bank, d u r i n g t h e c u r r e n t year. 14 �MERSKIN & MERSKIN, P.C. West Shore Community C o l l e g e Page 6 Notes t o F i n a n c i a l Statements Note D - Bonds and Notes Payable - c o n t i n u e d 2. Notes Payable - c o n t i n u e d M a t u r i t i e s o f t h e Bonds and Notes Payable f o r each o f t h e f i v e June 30, 1988, a r e as f o l l o w s : Year Ending June 30, 1989 1990 1991 1992 1993 1994 and T h e r e a f t e r years succeeding Maturity Amount $229,000 129,000 129,000 75,000 75,000 225.000 $862,000 The f o l l o w i n g i s a summary year ended June 30, 1988: o f l o n g - t e r m debt t r a n s a c t i o n s o f t h e C o l l e g e f o r t h e Outstanding 7/01/87 P l a n t Fund Notes Payable S t a t e Savings Bank o f Scottville - Telephone System - Tractor $ Issued 3,000.00 16,200.00 $ - Outstanding 6/30/88 Retired $ 3,000.00 4,200.00 $ 12,000.00 Bonds Payable 1969 Community C o l l e g e B u i l d i n g Bonds 200,000.00 - 50,000.00 150,000.00 1969 Community C o l l e g e B u i l d i n g Bonds Series I I 200,000.00 - 100,000.00 100,000.00 1975 Community C o l l e g e B u i l d i n g Bonds 650.000.00 - 50.000.00 600.000.00 Totals $1.069.200.00 15 $ $207.200.00 $ 862.000.00 �MERSKIN & M E R S K I N , P.C. West Shore Community C o l l e g e Notes t o F i n a n c i a l Page 7 Statements Note E - R e t i r e m e n t C o n t r i b u t i o n s The C o l l e g e p a r t i c i p a t e s i n t h e Michigan P u b l i c School Employees R e t i r e m e n t System. The r e t i r e m e n t s t a t u t e r e q u i r e s t h a t t h e C o l l e g e c o n t r i b u t e 9.35% o f t h e agg r e g a t e annual compensation p a i d t o a l l employees who a r e members o f t h e R e t i r e ment System. The employees c o v e r e d by t h e p l a n i n c l u d e : a l l t e a c h i n g and n o n - t e a c h i n g employees, employees p a i d from Federal Funds, s t u d e n t s w o r k i n g summer months b u t n o t a t t e n d i n g c l a s s e s , and s t u d e n t s w o r k i n g i n a s c h o o l o t h e r t h a n t h e one t h e y a r e e n r o l l e d i n and a t t e n d i n g c l a s s . D u r i n g t h e y e a r ended June 30, 1988, t h e C o l l e g e c o n t r i b u t e d r e t i r e m e n t system on b e h a l f o f i t s e l i g i b l e employees. $214,624 t o the Note F - Contracts/Commitments C o n t r a c t s have been l e t f o r r o o f i n g replacement i n t h e amount o f $96,800; i n s t a l l a t i o n o f h e a t i n g s y s t e m i n t h e amount o f $5,300; w a t e r w e l l d r i l l i n g i n t h e amount o f $5,100; swimming p o o l r e - t i l i n g and p o o l vacuum i n t h e amount o f $36,785; a l l o f which w i l l be f i n a n c e d by a v a i l a b l e r e s o u r c e s . 16 �MERSKIN & M E R S K I N , P.C. SUPPLEMENTAL FINANCIAL INFORMATION 17 �MERSKIN & MERSKIN, P.C. West Shore Community C o l l e g e D e t a i l s o f General Fund E x p e n d i t u r e s and Other Changes F i s c a l Year Ended June 30, 1988 Salaries and Wages Instruction General Business and P u b l i c S e r v i c e Trade, I n d u s t r i a l and T e c h n i c a l H e a l t h Occupations Total I n s t r u c t i o n 537,982.89 265,834.95 154,085.29 230.564.70 $1,188,467.83 $ Public Service R e c r e a t i o n Center C u l t u r a l A r t s Program Total Public Service $ $ I n s t r u c t i o n a l Support I n s t r u c t i o n a l Media Center Instructional Administration T o t a l I n s t r u c t i o n a l Support $ $ Student S e r v i c e s Student Personnel Student F i n a n c i a l A i d T o t a l Student Services $ $ Instructional Administration Board o f T r u s t e e s President's O f f i c e & Public Information Business S e r v i c e s Total I n s t r u c t i o n a l Administration $ $ Physical Plant Operations Physical Plant Energy S e r v i c e s Total Physical Plant Operations $ $ I n t e r n a l Service Operations Data P r o c e s s i n g Duplication $ $ E l i m i n a t i o n o f R e b i l l e d Charges Net I n t e r n a l S e r v i c e 5 Totals 21,852.88 44,532.66 66.385.54 63,174.28 185.135.79 248.310.07 147,088.92 51,635.77 198,724.69 108,539.40 173,725.05 282,264.45 250,900.97 250,900.97 $ $ $ $ $ $ $ $ $ $ $ $ 32,982.06 $ 32,982.06 $ <32.982.06> S $2.235.053.55 18 Supplies and Expenses 179,375.93 102,843.61 63,443.44 76,308.49 421,971.47 61,428.93 18,139.26 79,568.19 37,563.22 61.490.86 99,054.08 102,249.96 114.427.67 216,677.63 69,553.13 55,327.26 213.604.35 338,484.74 140,755.34 141.018.06 281.773.40 11,702.31 32.524.96 44,227.27 <44.227.27> - $1,437,529.51 �Capital Outlay $ $ $ $ $ $ $ $ Transfers 2,325.11 364.46 1,251.00 5.735.26 9.675.83 $ 420.00 420.00 $ - $ Total 719,683.93 369,043.02 218,779.73 312.608.45 $1,620,115.13 $ $ - i _ $ 12,152.13 517.13 12,669.26 $ $ 3,522.72 1,420.14 4.942.86 $ $ - $ $ $ 4.444.00 4.444.00 $ $ 141,007.00 $ $ 7,041.81 8.119.13 15.160.94 $ 10,612.00 151.619.00 $ $ 34,270.02 $ 4,200.00 $ $ 34.270.02 $ 4.200.00 $ $ 14,438.80 $ - 14,438.80 $ <14.438.80> $ - $ $ $ ? 77,138.91 $ 160,263.00 $ $ 83,701.81 62.671.92 146,373.73 112,889.63 247,143.78 360.033.41 252,861.60 171,927.58 424.789.18 210,560.13 170,908.47 406,060.53 787.529.13 430,126.33 141.018.06 571,144.39 59,123.17 32.524.96 91,648.13 <91,648.13> $ $3 ,909,984.97 18a �MERSKIN & M E R S K I N , P.C. West Shore Community C o l l e g e D e t a i l s o f A u x i l i a r y Fund F i s c a l Year Ended June 30. 1988 Activity Bookstore Food S e r v i c e Fund Balance 7/01/87 Revenues Expenditures Salaries Supplies & and Wages Expenses Capital Outlay $ 35,149.85 - $215,147.42 107.710.95 $ 24,046.89 45.921.40 $177,067.88 70.380.57 $ $ 35,149.85 $322,858.37 $ 69.968.29 $247.448.45 $ 2,139.40 19 400.00 1,739.40 �Revenues Over <Under> Expenditures Transfers I n <0ut> $ 13,632.65 $ <10,330. 42> oo o $ l l 706.00 3,302.23 $ Fund Balance 6/30/88 624.42> $ 330.42 $ 40,158.08 40,158.08 �MERSKIN & MERSKIN, P.C. West Shore Community C o l l e g e Details of Restricted Funds F i s c a l Year Ended June 30, 1988 Balance 7/01/87 Instruction V a r i o u s Grants Governmental Grants & Contracts $ 14,306.33 $ Revenues Private Gifts, Grants & Contracts $ Indirect Costs <Deduct> Other $ $ Public Service V a r i o u s Grants - 137,283.72 - - 15,232. 29 I n s t r u c t i o n a l Support V a r i o u s Grants - 517.66 - - - <7,576.18> 3.881. 65 Student S e r v i c e s V a r i o u s Grants 16,922.01 599.219.95 16,430.44 $ 16.922.01 $751.327.66 $ 16.430.44 20 $ <7.576.18> $ 19,113.94 �Expenditures Total $ 14,306.33 152,516.01 517.66 Salaries and Wages $ Supplies & Expenses - $ 14,306.33 43,624.92 Capital Outlay 110,760.34 - $ Transfers I n <Out> Total - $ 14,306.33 2,174.75 156,560.01 517.66 - - $ - 4,044.00 517.66 - $ Balance 6/30/88 611.039.44 611.955.86 4.195.50 606.843.94 $779.295.86 $ 47,820.42 $732.428.27 $ 2.174.75 20a $782.423.44 $ 4.044.00 17,838.43 $ 17.838.43 �MERSKIN & MERSKIN, P.C. West Shore Community C o l l e g e D e t a i l s o f Student Loan Funds F i s c a l Year Ended June 30. 1988 Balance 7/01/87 C o l l e g e Loan Funds R e s t r i c t e d Funds: Luzer Memorial Veterans Loan Fund $ U n r e s t r i c t e d Funds: Emergency S t u d e n t Loan Fund T o t a l C o l l e g e Loan Funds 1,480.04 Contributions Other $ 1.113.84 $ 2,593.88 Interest Income $ 400.00 $ 400.00 F e d e r a l S t u d e n t Loan Funds National Direct S t u d e n t Loans 229.242.48 $231.836.36 $ 44.844.00 21 $ $ 291.71 5.00 $ 315.00 182.89 44.444.00 T o t a l S t u d e n t Loan Funds 108.82 Balance 6/30/88 Deductions $ 320.00 1,583.86 1.381.73 $ 2,965.59 3.933.68 $ 12.546.34 265.073.82 4.225.39 $ 12.866.34 $268,039.41 �MERSKIN & M E R S K I N , P.C. West Shore Community C o l l e g e S t u d e n t Loan Fund - Summary o f Loan T r a n s a c t i o n s F i s c a l Year Ended June 30. 1988 College Student Loan Funds Luzer Memorial Emergency Veterans Student Loan Fund Loan Fund Loans O u t s t a n d i n g a t 7/01/87 Loans Granted D u r i n g F i s c a l 1988 Deduct: Loan Payments C a n c e l l a t i o n o f Indebtedness Loans D e f a u l t e d t o F e d e r a l Gov't. Other D e f a u l t e d Loans } 100.00 750.00 850.00 <750.00> <100.00> Loans O u t s t a n d i n g a t 6/30/88 $ $ Federal National Direct Student Loans 189.00 720.25 909.25 <189.00> <377.00> $209,528.79 62.865.00 $272,393.79 <22,826.58> 405.00 <12,414.24> Total $209,817.79 64.335.25 $274,153.04 <23,765.58> <72.00> <12,414.24> 343.25 1 8 8 O u t s t a n d i n g a t 6/30/88 $237.901.22 5 57 47 324 72 28 1 15 330 137 83 1 25 6 Number o f Loans: O u t s t a n d i n g a t 7/01/87 Granted D u r i n g Year Paid I n F u l l D u r i n g Year C a n c e l l e d Loans D e f a u l t e d Loans $237.557.97 352 358 The above l o a n s o u t s t a n d i n g have n o t been reduced by an allowance f o r d o u b t f u l 22 accounts. �MERSKIN & MERSKIN, P.C. West Shore Community C o l l e g e D e t a i l s o f Endowment Fund F i s c a l Year Ended June 30. 1988 Balance 7/01/87 Gifts M e t a l Works S c h o l a r s h i p Dow Distribution of Endowment Income Income from Investments $ 514.52 $ 514.52 10,000.00 Martin M a r i e t t a Scholarship 639.11 639.11 10,000.00 Scholarship 580.91 580.91 McGhan S c h o l a r s h i p 2,110.00 160.00 160.00 Plank Memorial S c h o l a r s h i p 5,000.00 315.39 315.39 K i l l e n Memorial S c h o l a r s h i p 3,225.00 203.15 203.15 Maclean Memorial S c h o l a r s h i p s 7,076.00 243.69 243.69 Martin Marietta Cultural Arts 10.000.00 274.77 274.77 Totals $ 23 2.931.54 $ 2.931.54 �Transfers I n <Out> Principal Balance 6/30/88 $ 10,000.00 10,000.00 10,000.00 2,110.00 5,000.00 3,225.00 7,076.00 10.000.00 $ 57.411.00 �MERSKIN & M E R S K I N , P.C. West Shore Community College D e t a i l s o f C o n s t r u c t i o n Fund F i s c a l Year Ended June 30, 1988 Balance 7/01/87 Investment Income Expenditures Not Capitalized Unexpended A p p r o p r i a t i o n s f o r P l a n t : Unappropriated C o n s t r u c t i o n Funds $ 24 21.06 $ - $ - �Transfers I n <Out> $ Balance 6/30/88 $ 21.06 �Supplemental F i n a n c i a l I n f o r m a t i o n Federal Grant Programs 25 �MEMBERS: MICHIGAN ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF COUNSEL: DONALD T. MERSKIN, C.P.A, GUY MERSKIN, C.P.A. MERSKIN & MERSKIN, P.C. CERTIFIED PUBLIC ACCOUNTANTS OFFICES: 26 N. STATE STREET HART, MICHIGAN 49420 PHONE: 616-873-2111 906 E. LUDINGTON AVENUE LUDINGTON, MICHIGAN 49431 PHONE: 616-845-6251 67 BENZIE BOULEVARD BOX 157 BEULAH, MICHIGAN 49617 PHONE: 616-882-5144 PRINCIPALS: GERALD E. THORNE, C.P.A. DALE L. FITCH, C.P.A. DAVID L. HATCH, C.P.A. KERRY E. CLARK, C.P.A. 1980-1987 August 1 1 , 1988 AUDITOR'S COMMENTS ON COMPLIANCE WITH LAWS AND REGULATIONS Board o f T r u s t e e s West Shore Community C o l l e g e S c o t t v i l l e , M i c h i g a n 49454 We have examined t h e f i n a n c i a l s t a t e m e n t s o f t h e West Shore Community C o l l e g e f o r t h e year ended June 30, 1988, and have i s s u e d o u r r e p o r t t h e r e o n d a t e d August 1 1 , 1988. Our e x a m i n a t i o n was made i n accordance w i t h g e n e r a l l y accepted a u d i t i n g s t a n d a r d s ; t h e p r o v i s i o n s o f Standards f o r A u d i t o f Governmental Org a n i z a t i o n s , Programs. A c t i v i t i e s and F u n c t i o n s , promulgated by t h e U.S. Compt r o l l e r G e n e r a l , as t h e y p e r t a i n t o f i n a n c i a l and compliance a u d i t s ; t h e p r o v i s i o n s o f t h e O f f i c e o f Management and B u d g e t ' s (0MB) C o m p l i a n c e Supplement U n i f o r m Requirements o f Programs f o r Grants t o S t a t e and L o c a l Governments. Cert a i n p r o g r a m s o p e r a t e d by t h e C o l l e g e were n o t i n c l u d e d i n 0MB's C o m p l i a n c e Supplement - U n i f o r m Requirements f o r Grants t o S t a t e and L o c a l Governments. For t h e s e programs we reviewed t h e terms and c o n d i t i o n s s e t f o r t h i n t h e award agreements and d e t e r m i n e d t h e major compliance r e q u i r e m e n t s t o be t e s t e d ; t h e p r o v i s i o n s o f OMB's C i r c u l a r A-110, Uniform Requirements f o r Grants t o U n i v e r s i t i e s . H o s p i t a l s and Other N o n - P r o f i t O r g a n i z a t i o n s and, a c c o r d i n g l y , i n c l u d e d such t e s t s o f t h e a c c o u n t i n g r e c o r d s and such o t h e r a u d i t i n g procedures as we cons i d e r e d necessary i n t h e circumstances. Based on o u r e x a m i n a t i o n , we found t h a t , f o r t h e items t e s t e d , t h e C o l l e g e c o m p l i e d w i t h t h e m a t e r i a l terms and c o n d i t i o n s o f t h e f e d e r a l g r a n t agreements, w i t h no q u e s t i o n e d c o s t s e v i d e n t . F u r t h e r , based on o u r e x a m i n a t i o n and t h e p r o cedures r e f e r r e d t o above, n o t h i n g came t o o u r a t t e n t i o n t o i n d i c a t e t h a t t h e C o l l e g e had n o t complied w i t h t h e s i g n i f i c a n t compliance terms and c o n d i t i o n s o f t h e g r a n t s r e f e r r e d t o above. T h i s r e p o r t i s i n t e n d e d s o l e l y f o r t h e use o f West Shore Community C o l l e g e , t h e c o g n i z a n t a u d i t agency, and o t h e r f e d e r a l a u d i t agencies and s h o u l d n o t be used f o r any o t h e r purpose. Respectfully submitted, MERSKIN & MERSKIN, P.C. �MEMBERS: MICHIGAN ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF COUNSEL: DONALD T. MERSKIN, C.P.A. GUY MERSKIN, C.P.A. MERSKIN & MERSKIN, P.C. CERTIFIED PUBLIC ACCOUNTANTS OFFICES: 26 N. STATE STREET HART, MICHIGAN 49420 PHONE: 616-873-2111 906 E. LUDINGTON AVENUE LUDINGTON, MICHIGAN 49431 PHONE: 616-845-6251 67 BENZIE BOULEVARD BOX 157 BEULAH, MICHIGAN 49617 PHONE: 616-882-5144 PRINCIPALS: GERALD E. THORNE, C.P.A. DALE L. FITCH, C.P.A. DAVID L. HATCH, C.P.A. August 1 1 , 1988 KERRY E. CLARK, C.P.A. 1980-1987 AUDITOR'S COMMENTS ON INTERNAL CONTROL FOR FEDERAL GRANT PROGRAMS Board o f T r u s t e e s West Shore Community C o l l e g e S c o t t v i l l e , Michigan 49454 We have examined t h e f i n a n c i a l s t a t e m e n t s o f t h e West Shore Community C o l l e g e f o r t h e year ended June 30, 1988, and have i s s u e d o u r r e p o r t t h e r e o n d a t e d August 1 1 , 1988. As p a r t o f o u r e x a m i n a t i o n , we made a s t u d y and e v a l u a t i o n o f t h e system o f i n t e r n a l a c c o u n t i n g c o n t r o l o f t h e C o l l e g e t o t h e e x t e n t we cons i d e r e d necessary t o e v a l u a t e t h e system as r e q u i r e d by g e n e r a l l y accepted a u d i t i n g s t a n d a r d s and t h e standards f o r f i n a n c i a l and compliance a u d i t s c o n t a i n e d i n t h e U.S. General Accounting O f f i c e Standards f o r A u d i t o f Governmental O r g a n i z a t i o n s , Programs, A c t i v i t i e s and F u n c t i o n s . For t h e purpose o f t h i s r e p o r t , we have c l a s s i f i e d t h e s i g n i f i c a n t i n t e r n a l a c c o u n t i n g c o n t r o l s i n t h e f o l l o w i n g c a t e g o r i e s ; r e v e n u e / r e c e i p t s , purchases, and p a y r o l l d i s b u r s e m e n t s . The purpose o f o u r s t u d y and e v a l u a t i o n was t o d e t e r m i n e t h e n a t u r e , t i m i n g , and e x t e n t o f t h e a u d i t i n g p r o c e d u r e s n e c e s s a r y f o r e x p r e s s i n g an o p i n i o n o n t h e e n t i t y ' s f i n a n c i a l statements. Our s t u d y and e v a l u a t i o n was more l i m i t e d t h a n would be n e c e s s a r y t o e x p r e s s an o p i n i o n on t h e s y s t e m o f i n t e r n a l a c c o u n t i n g c o n t r o l t a k e n as a whole o r on any o f t h e c a t e g o r i e s o f c o n t r o l s i d e n t i f i e d above. The management o f t h e C o l l e g e i s r e s p o n s i b l e f o r e s t a b l i s h i n g and m a i n t a i n i n g a system o f i n t e r n a l a c c o u n t i n g c o n t r o l . I nf u l f i l l i n g this responsibility, e s t i m a t e s a n d j u d g m e n t s b y management a r e r e q u i r e d t o a s s e s s t h e e x p e c t e d b e n e f i t s and r e l a t e d c o s t s o f c o n t r o l procedures. The o b j e c t i v e s o f a system a r e t o p r o v i d e management w i t h reasonable, b u t n o t a b s o l u t e , assurance t h a t a s s e t s a r e s a f e g u a r d e d a g a i n s t l o s s f r o m u n a u t h o r i z e d use o r d i s p o s i t i o n , and t h a t t r a n s a c t i o n s a r e executed i n accordance w i t h management's a u t h o r i z a t i o n and r e corded p r o p e r l y t o p e r m i t t h e p r e p a r a t i o n o f f i n a n c i a l s t a t e m e n t s i n accordance w i t h g e n e r a l l y accepted a c c o u n t i n g p r i n c i p l e s . Because o f i n h e r e n t l i m i t a t i o n s i n any s y s t e m o f i n t e r n a l a c c o u n t i n g c o n t r o l , e r r o r s o r i r r e g u l a r i t i e s may n e v e r t h e l e s s occur and n o t be d e t e c t e d . A l s o , p r o j e c t i o n o f any e v a l u a t i o n o f the system t o f u t u r e p e r i o d s i s s u b j e c t t o t h e r i s k t h a t procedures may become inadequate because o f changes i n c o n d i t i o n s o r t h a t t h e degree o f compliance w i t h the procedures may d e t e r i o r a t e . 27 �MERSKIN & M E R S K I N , P.C. Page 2 Our s t u d y and e v a l u a t i o n made f o r t h e l i m i t e d p u r p o s e d e s c r i b e d i n t h e f i r s t paragraph would n o t n e c e s s a r i l y d i s c l o s e a l l m a t e r i a l weaknesses i n t h e system. A c c o r d i n g l y , we do n o t express an o p i n i o n on t h e system o f i n t e r n a l acc o u n t i n g c o n t r o l o f t h e C o l l e g e taken as a whole o r on any o f t h e c a t e g o r i e s o f c o n t r o l s i d e n t i f i e d i n t h e f i r s t paragraph. T h i s r e p o r t does n o t a f f e c t August 1 1 , 1988. our r e p o r t on t h e f i n a n c i a l statements dated T h i s r e p o r t i s i n t e n d e d s o l e l y f o r t h e use o f West Shore Community C o l l e g e , the c o g n i z a n t a u d i t agency, and o t h e r f e d e r a l a u d i t agencies and s h o u l d n o t be used f o r any o t h e r purpose. Respectfully submitted, MERSKIN & MERSKIN, P.C. �MERSKIN & M E R S K I N , P.C. West Shore Community C o l l e g e F e d e r a l Programs Schedule o f A c t i v e Awards/Expenditures F i s c a l Year Ended June 30. 1988 Project Code Grant T i t l e JT&R JT&R JTPA JTPA JTPA JTPA JTPA JTPA Annual BIDI BIDI BIDI - W C e n t r a l BIDI - W Central B I D I - Northwest Quick S t a r t Quick S t a r t 1987 1988 38582011022 38682011004 1987 545703 38572011012 38582011023 5-5-00699-0 Interest V o c a t i o n a l Education: S p e c i a l Needs S p e c i a l Needs S i n g l e Parent Sex E q u i t y Local Administration Program Improvement Program Improvement 3L178628 3L188726 3L381399 3L481606 3N288528 3P176629 3P186658 Total Amount o f Award $ 9,683.99 60,000.00 13,000.00 10,000.00 8,744.79 11,866.00 4,040.00 14,000.00 14,873.00 2,033.58 10,000.00 8,830.00 1,516.00 16,500.00 <146.00> 49.619.00 $ 234.560.36 29 Grant Expenditure $ 9,683.99 57,148.98 13,257.63 8,744.00 8,022.70 1,356.04 4,040.00 12,941.00 14,873.00 2,033.58 7,910.99 8,634.93 1,458.47 16,500.00 <146.00) 49.619.00 $ 216.078.31 �MERSKIN & M E R S K I N , P.C. West Shore Community C o l l e g e Foundation �MEMBERS: MICHIGAN ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF COUNSEL: DONALD T. MERSKIN, C.P.A. GUY MERSKIN, C.P.A. MERSKIN & M E R S K I N , P.C. CERTIFIED PUBLIC ACCOUNTANTS 906 E. LUDINGTON AVENUE LUDINGTON, MICHIGAN 49431 PHONE: 616-845-6251 67 BENZIE BOULEVARD BOX 157 BEULAH, MICHIGAN 49617 PHONE: 616-882-5144 PRINCIPALS: GERALD E THORNE, C.P.A. DALE L FITCH, C.P.A. DAVID L. HATCH, C.P.A. KERRY E. CLARK, C.P.A. 1980-1987 OFFICES: 26 N. STATE STREET HART, MICHIGAN 49420 PHONE: 616-873-2111 August 1 1 , 1988 ° ' Board o f D i r e c t o r s West Shore Community C o l l e g e Foundation S c o t t v i l l e , Michigan 49454 We have examined t h e balance sheet as o f June 30, 1988 and 1987 o f t h e West Shore Community College Foundation and t h e r e l a t e d s t a t e m e n t s o f revenues, expend i t u r e s and changes i n f u n d balance f o r t h e y e a r s t h e n ended. Our e x a m i n a t i o n was made i n accordance w i t h g e n e r a l l y accepted a u d i t i n g s t a n d a r d s and, a c c o r d i n g l y , i n c l u d e d such t e s t s o f t h e a c c o u n t i n g r e c o r d s and such o t h e r a u d i t i n g p r o cedures as we c o n s i d e r e d necessary i n t h e c i r c u m s t a n c e s . I n our opinion, the aforementioned f i n a n c i a l statements present f a i r l y t h e f i n a n c i a l p o s i t i o n o f t h e West Shore Community C o l l e g e Foundation a t June 30, 1988 and 1987, and t h e changes i n f u n d balances and t h e c u r r e n t revenues and exp e n d i t u r e s f o r t h e years t h e n ended, i n c o n f o r m i t y w i t h g e n e r a l l y accepted acc o u n t i n g p r i n c i p l e s a p p l i e d on a b a s i s c o n s i s t e n t w i t h t h a t o f t h e p r e c e d i n g year. Respectfully submitted, �MERSKIN & M E R S K I N , P.C. West Shore Community C o l l e g e F o u n d a t i o n Balance Sheet June 30. 1988 June 30, 1988 1987 $ 204,688.99 68.85 $ 183,969.63 780.58 $ 204.757.84 $ 184.750.21 Assets Cash and Temporary I n v e s t m e n t s Accrued I n t e r e s t Receivable T o t a l Assets L i a b i l i t i e s and Fund Balance Liabilities Accounts Payable D e f e r r e d Revenue - C u l t u r a l Events Total L i a b i l i t i e s $ $ Fund Balance Restricted Unrestricted T o t a l Fund Balance 35.00 13,790.00 13.825.00 $ $ 4.18 - 4.18 $ 61,000.00 129.932.84 $ 190,932.84 $ 204,757.84 T o t a l L i a b i l i t i e s and Fund Balance See Notes t o t h e F i n a n c i a l Statements. 32 60,000.00 124.746.03 $ 184,746.03 $ 184.750.21 $ �MERSKIN & M E R S K I N , P.C. West Shore Community C o l l e g e Statement o f Revenues, E x p e n d i t u r e s and Changes i n Fund Balance F i s c a l Years Ended June 30, 1988 and 1987 June 30, 1988 Revenues Donations I n t e r e s t Income - Investments 51 ,624.43 13 .704.24 $ 65 ,328.67 $ 5,132.65 44,802.00 50,756.44 1.103.00 $ 2,876.51 44,768.97 19,330.33 455.00 $ 101.794.09 $ 67.430.81 $ $ <2.102.14> CM Expenditures <Expenditures> Restricted Fund Balance - June 30, 1986 Deduct: Excess <Expenditures> Fund Balance - June 30, 1987 Add: Excess Revenues Fund Balance - June 30, 1988 $ $ 107, 980. 90 Expenditures M a t e r i a l and S u p p l i e s S p e c i a l Programs Scholarships Membership Dues Excess Revenues 95, 578. 44 402. 46 $ T o t a l Revenues Total 1987 $ 60,000.00 $ 60,000.00 1.000.00 61.000.00 $ 33 6.186.91 Unrestricted Total $ 126,848.17 $ 186,848.17 <2.102.14> <2.102.14> $ 124,746.03 $ 184,746.03 6.186.81 5.186.81 $ 129.932.84 $ 190.932.84 �MERSKIN & M E R S K I N , P.C. West Shore Community C o l l e g e Notes t o F i n a n c i a l Foundation Statements General The West Shore Community C o l l e g e Foundation was e s t a b l i s h e d i n 1971 f o r t h e p u r poses o f : 1. Securing g i f t s o r l o a n s o f p r o p e r t y , works o f a r t , h i s t o r i c a l papers, e t c . 2. Fund r a i s i n g by means o f l o a n , g i f t s , g r a n t and bequest f o r a broad v a r i e t y o f purposes, i n c l u d i n g i n s t r u c t i o n and r e s e a r c h , e s t a b l i s h m e n t o f endowments, s c h o l a r s h i p s , f e l l o w s h i p s , p r o f e s s o r s h i p s , academic c h a i r s , c u l t u r a l e v e n t s and f o r b u i l d i n g s , equipment and o t h e r f a c i l i t y o f a l l k i n d s . 3. To a c t i n t h e c a p a c i t y o f a f i d u c i a r y o r t r u s t e e i n c a r r y i n g o u t these p u r poses and o b j e c t i v e s . The C o l l e g e i s t h e s o l e b e n e f i c i a r y o f any d o n a t i o n s t o , o r funds r a i s e d by, t h e Foundation. Note A - Accounting P o l i c i e s : The income and expenses o f t h e West Shore Comm u n i t y C o l l e g e Foundation a r e accounted f o r by t h e a c c r u a l method o f a c c o u n t i n g . 34 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Business Office Description An account of the resource Audit reports, budget documents Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource AuditReportFYendedJune30,1988and1987.pdf Audit Report https://wsccarchives.org/files/original/07850e5696202817abfa5c1096552b07.pdf d314a828346770e1ef23c9d975c06422 PDF Text Text West Shore Community College Audit Report S c o t t v i l l e , Michigan Fiscal Years Ended June 30, 1985 and 1984 M E R S K I N & M E R S K I N Certified Public Accountants Hart, Michigan 49420 Ludington, Michigan 49431 Beulah, Michigan 49617 T r a v e r s e City, Michigan 49684 �West Shore Community College Audit Report S c o t t v i l l e , Michigan Fiscal Years Ended June 30, 1985 and 1984 -1- �MERSKIN & M E R S K I N , P.C. Contents West Shore Community College Audited Financial Statements Accountants' Report Balance Sheets Statement of Changes in Fund Balance Statement of Revenues, Expenditures and Other Changes Notes to Financial Statements Supplemental Financial Information Details o f General Fund Expenditures and Other Changes Details of A u x i l i a r y Fund Details of Restricted Funds D e t a i l s of Student Loan Funds Student Loan Fund - Summary o f Loan Transactions Details of Endowment Fund Bonds Payable Schedules of Bonds Payable Details of Construction Fund A u d i t o r s ' Comments on Compliance for Attachment P Audits A u d i t o r s ' Comments on Internal Control f o r Attachment P Audits Federal Projects Schedule of Active Awards Schedule of Expenditures �M E R S K I N & M E R S K I N , P.C. Contents Page West Shore Community College Foundation Audited Financial Statements Accountants' Report 3 2 Balance Sheet 3 3 Statement of Revenues, Expenditures and Changes in Fund Balance 3Zt Notes to Financial Statements 3 5 -3- �MEMBERS: MICHIGAN ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OFFICES: 26 N. STATE STREET HART, MICHIGAN 49420 PHONE: 616-873-2111 MERSKIN & MERSKIN, P.C. CERTIFIED PUBLIC ACCOUNTANTS 906 E. LUDINGTON AVENUE LUDINGTON, MICHIGAN 49431 PHONE: 616-845-6251 PARTNERS: DONALD T. MERSKIN, C.P.A. GUY MERSKIN, C.P.A. GERALD E. THORNE, C.P.A DALE L. FITCH, C.P.A. KERRY E. CLARK, C.P.A. DAVID L. HATCH, C.P.A. 67 BENZIE BOULEVARD BOX 157 BEULAH, MICHIGAN 49617 PHONE: 616-882-5144 14252 BLUFF ROAD TRAVERSE CITY, MICHIGAN 49684 PHONE: 616-223-7198 August 20, 1985 Board o f Trustees West Shore Community College S c o t t v i l l e , Michigan 49454 Dear Board Members: W have examined the balance sheet as of June 30, 1985 and 1984 of the West e Shore Community College and the r e l a t e d statements of changes in fund balances and revenues and expenditures f o r the years then ended. Our examination was made in accordance with generally accepted a u d i t i n g standards and, accordingly, included such tests of the accounting records and such other a u d i t i n g procedures as we considered necessary in the circumstances. In our opinion, the aforementioned f i n a n c i a l statements present f a i r l y the f i n a n c i a l position of the West Shore Community College a t June 30, 1985 and 1984, and the changes in fund balances and the current revenues and expenditures for the years then ended, in conformity w i t h generally accepted accounting p r i n c i p l e s . Our examination was made f o r the purpose of forming an opinion on the combined f i n a n c i a l statements taken as a whole. The supplemental f i n a n c i a l informat i o n is presented for purposes of a d d i t i o n a l analysis and is not a required part o f the combined f i n a n c i a l statements. Such information has been subjected to the a u d i t i n g procedures applied in the examination of the combined f i n a n c i a l s t a t e ments and, in our opinion, i t is f a i r l y stated in a l l material respects in r e l a t i o n to the combined f i n a n c i a l statements taken as a whole. Respectfully submitted, Merskin & Merskin -4- �M E R S K I N & M E R S K I N , P.C. West Shore Community College Comparative Balance Sheet June 30, 1985 and 1984 Assets 1985 Current Funds Unrestricted: General Fund: Cash and Temporary Investments - Note B Investments - Note E Property Taxes Receivable Accounts Receivable, Less Allowance o f $2,505.81 in 1985 and $5,085.20 i n 1984 Grants Receivable Prepaid Expenses June 30, 1984 853,390.25 2,140.44 74,498.28 $705,022.07 2,140.44 5,138.40 15,970.08 14,439.28 26,181.03 18,959.38 13,989.26 12,747.76 $757,997.31 Total General Fund $ 986,619.36 A u x i l i a r y Fund Cash - Note B Inventories $ 272.00 77,360.95 $ Total A u x i l i a r y Fund $ 77,632.95 $ 76,146.06 Total Current Unrestricted Funds $1,064,252.31 $834,143.37 See Notes to Financial Statements. -5- 270.00 75,876.06 �L i a b i l i t i e s and Fund Balances Current Funds Unrestricted Funds: General Fund: Accounts Payable Accrued Payrolls Accrued Expenses Unearned Student T u i t i o n and Fees Deferred Revenue - Grants - State Appropriations Due to Other Funds Fund Balance: Budgeted for Following Year Unallocated 1985 $ June 30, 1984 86,523.36 80,686.10 82,715.17 47,767.85 36,536.94 111,295.00 56,011.22 $ 37,869.53 70,897.14 85,602.95 40,700.00 218.99 105,718.00 63,536.76 28,726.02 456,357.70 36,929.00 316,524.94 Total Fund Balance $ 485,083.72 $353,453.94 Total General Fund $ 986,619.36 $757,997.31 $ 15,745.27 1,050.08 5,265.46 39,441.23 A u x i l i a r y Fund Accounts Payable Accrued Payrolls Accrued Expenses Due to Other Funds Fund Balance: Budgeted for Following Year $ 7,801.96 782.43 2,394.43 39,052.02 16,130.91 26,115.22 Total A u x i l i a r y Fund $ 77,632.95 $ 76,146.06 Total Current Unrestricted Funds $1,064,252.31 $834,143.37 -5a- �M E R S K I N & M E R S K I N , P.C. West Shore Community College Comparative Balance Sheet Continued June 30, 1985 and 1984 Assets June 30, 19W Current Funds Continued Restricted Fund:~ Cash - Note B Accrued I n t e r e s t Receivable Grants Receivable Endowment Income Receivable Prepaid Expenses 42,770.87 327.04 11,841.00 $ 14,122.88 10,879.02 26,922.92 2,394.78 12,583.27 65,817.93 $ 56,023.85 $1,130,070,24 $890,167.22 $ 32,977.71 151,308.13 467.31 $ 35,970.93 135,237.57 $ 184,753.15 $171,208.50 $ 10,113.37 61.63 $ 12,384.50 135.28 $10,175.00 $ 12,519.78 Total R e s t r i c t e d Fund Total Current Funds Student Loan Fund Cash - Note B Student Notes Receivable Accured I n t e r e s t Receivable Total Student Loan Fund Endowment Fund Cash and Temporary Investments Accrued I n t e r e s t Receivable Total Endowment Fund See Notes to Financial Statement. -6- �L i a b i l i t i e s and Fund Balances 1555 Current Funds - Continued R e s t r i c t e d Fund: Accounts Payable Deferred Revenue - Grants Fund Balance Total Restricted Fund June 30, im 90.00 42,297.05 23,430.88 65,817.93 1,627.43 1,695.00 52,701.42 $ 56,023.85 $1,130,070.24 $890,167.22 $ $ $ $ Total Current Funds Student Loan Fund Accounts Payable Fund Balance: College Student Loan Programs: Restricted Unrestricted $ 11.08 $ $ 1,296.47 280.08 1.575.55 183,176.60 184,753.15 $ 184,753.15 $171,208.50 $ $ Federal Student Loan Programs Total Fund Balance Total Student Loan Fund Endowment Fund Due to Other Funds Fund Balance $ Total Endowment Fund $ -6a- 10,175.00 10,175.00 1,558.85 1,160.44 $ 2,719.29 168,478.13 $171,197.42 $ 2,394.78 10,125.00 $ 12,519.78 �M E R S K I N & M E R S K I N , P.C. West Shore Community College Comparative Balance Sheet Continued June 30, 1985 and 1984 Assets 1985 Plant Funds Construction Fund Due From Other Funds June 30, 1934 $ 21.06 $ 21.06 $ 21.06 $ 21.06 Maintenance and Replacement Fund Cash and Temporary Investments - Note B Accrued I n t e r e s t Receivable Due From Other Funds $ 93,740.83 598.80 $ 154,530.07 Total Maintenance and Replacement Fund $ 94,339.63 $ 160,702.36 Debt Retirement Fund Cash and Temporary Investments - Note B Accrued I n t e r e s t Receivable Property Taxes Receivable $ 72,569.50 831.49 14,779.34 $ 73,205.12 88,180.33 $ Total Construction Fund Total Debt Retirement Fund $ Physical Properties Land and Improvements Buildings and Building Improvements Furniture and Equipment 6,172.29 1,074.11 74,279.23 $ 250,874.11 $ 250,874.11 5,067,531.96 5,044,124.90 1,949,619.65 1,788,273.08 Total Physical Properties $7,268,025.72 $7,083,272.09 Total Plant Funds $7,450,566.74 $7,318,274.74 Agency Fund Cash - Note B Due from Other Funds $ 2,735.10 95,452.45 $ 2,227.21 96,395.43 Total Agency Fund $ 98,187.55 $ 98,622.64 See Notes to Financial Statement. -7- �L i a b i l i t i e s and Fund Balances Plant Funds Construction Fund Fund Balance - U n r e s t r i c t e d 1985 June 30, 1984 $ 21.06 21.06 $ 21.06 $ 2,018.20 21.06 $ 6,574.55 80,000.00 7,822.45 4,477.92 Maintenance and Replacement Fund Accounts Payable Due to Other Funds Fund Balance - U n r e s t r i c t e d Reserve for Replacement Reserve f o r Encumbrances Unallocated $ $ Total Construction Fund 21.06 $ 80,000.00 53,540.48 20,587.33 Total Fund Balance $ 92,300.37 $ 154,127.81 Total Maintenance and Replacement Fund $ 94,339.63 $ 160,702.36 $ 88,180.33 $ 74,279.23 $ 88,180.33 $ 74,279.23 $ 27,000.00 450,000.00 1. 5, 791,025.72 $ Total Physical Properties $7,268,025.72 $7,083,272.09 Total Plant Funds $7,450,566.74 $7,318,274.74 Debt Retirement Fund Fund Balance - R e s t r i c t e d Total Debt Retirement Fund Physical Properties Notes Payable Bonds Payable Fund Balance Agency Fund Accounts Payable Payroll Taxes and Other Deductions Due to Depositors 39,000.00 1,640,000.00 5,404,272.09 $ -7a- $ 1,666.77 96,395.43 560.44 $ Total Agency Fund 854.00 95,449.95 1,883.60 98,187.55 $ 98,622.64 �M E R S K I N & M E R S K I N , P.C. West Shore Community College Comparative Balance Sheet Continued June 30, 1985 and 1984 Assets T9ST Total A l l Funds Cash and Temporary Investments Marketable S e c u r i t i e s Property Taxes Receivable Accounts Receivable Student Notes Receivable Other Receivables Inventories Prepaid Expenses Land and Improvements Buildings and Building Improvements Furniture and Equipment June 30, $1,108,569.63 2,140.44 89,277.62 15,970.08 151,308.13 28,566.55 77,360.95 37,060.05 250,874.11 5,067,531.96 1,949,619.65 $8,778,279.17 Total See Notes to Financial Statement. -8- $ 997,732.78 2,140.44 6,212.51 18,959.38 135,237.57 41,047.46 75,876.06 25,331.03 250,874.11 5,044,124.90 1,788,273.08 $8,385,809.32 �L i a b i l i t i e s and Fund Balances 1985 Total A l l Funds Accounts Payable Accrued Payrolls Accrued Expenses Unearned Student T u i t i o n and Fees Payroll Taxes and Other Deductions Deferred Revenue Due to Depositors Notes and Bonds Payable Total June 30, 105,230.83 81,736.18 87,980.63 47,767.85 95,449.95 190,128.99 1,883.60 1,477,000.00 1984 $ $2,087,178.03 $2,139,516.13 23,430.88 1,296.47 183,176.60 10,175.00 88,180.33 Liabilities $ 55,551.32 71,679.57 87,997.38 40,700.00 96,395.43 107,631.99 560.44 1,679,000.00 52,701.42 1,558.85 168,478.13 10,125.00 74,279.23 Fund Balance: Restricted Restricted Fund College Student Federal Student Endowment Funds Debt Retirement Activities Loan Programs Loan Programs Funds $ Restricted Fund Balance Net Investment in Physical Properties 306,259.28 $5,791,025.72 Unrestricted: Budgeted f o r Following Year $ Used f o r College Student Loan Programs Funds f o r Construction Projects Reserve f o r Replacement Funds f o r Maintenance and Replacement - Encumbered Unencumbered Unallocated 307,142.63 $5,404,272.09 44,856.93 280.08 21.06 80,000.00 7,822.45 4,477.92 456,357.70 $ 63,044.22 1,160.44 21.06 80,000.00 53,540.48 20,587.33 316,524.94 593,816.14 $ 534,878.47 U n r e s t r i c t e d Fund Balance $ Total $8,778,279.17 -8a- $ $8,385,809.32 �M E R S K I N & M E R S K I N , P.C. West Share Commity College Statement of Changes in Find Balances Fiscal Year Ended Jwe 30, 1985 Additions (Deductions): Current Funds Revenues & Otter Changes Federal Q*ants & Contracts Property Taxes for Debt Retirement Gifts and Private Q-ants Investment Income Student Loan Interest Expenditures From Current Funds for Equipment and Otter Capital Additions Expenditures for Capital Additions Notes and Bonds Retired Plant Assets Sold or Retired Current Funds Expenditures Uncollectable Loans Collection Expense Loan Cancellations Achrinistrative Costs Distributions to Beneficiary Funds Expenditures Not Capitalized Interest and Bond Premium Mandatory Transfers: For Matching Q*ants Otter Transfers In (Out): For Plant Improvements For Miscellaneous Purposes Net Increase (Decrease) for the Year Find Balance at Beginning of Year Find Balance at End of Year General Find Fiscal Year Ended June 30, 1985 Total Auxiliary Uhrestricted Restricted Find Find Find Student Loan Find $3,365,330.96 $ 315,596.13 $3,680,927.09 $ 580,736.24 $ 6,481.88 1,915.77 (3,370,777.61) (360,782.09) (3,731,559.70) (489,300.35) (2,671.00) (2,671.00) (36,375.00) 139,747.43 $ 131,629.78 $ 353,453.94 $ 485,083.72 $ 35,201.65 174,949.08 379,569.16 16,130.91 $ 501,214.63 $ See Notes to Financial Statements. -9- 26,710.00 (936.93) (83,394.50) (9,984.31) $ 121,645.47 $ (29,270.54) $ 26,115.22 (19,407.40) (815.51) (1,329.01) 52,701.42 13,555.73 171,197.42 23,430.88 $ 184,753.15 �Endowment Fund Fiscal Year Ended June 30, 1985 Debt Construe- Maintenance & tion Replacement Retirement Physical Fund Fund Properties Fund $ - $ $ 43,869.00 - $4,261,663.33 $1,165,938.99 58,742.00 79,152.94 $ 14,873.00 271,964.44 50.00 46,622.13 1,915.77 271,964.44 50.00 1,698.54 21,149.21 17,292.50 266,267.66 (48,564.00) (1,698.54) (190,000.00) Combined Total All Funds Fiscal Year Ended June 30, 1984 Combined Total All Funds 48,564.00 190,000.00 (118,078.03) 281,269.18 125.00 25,095.91 2,135.29 266,267.66 79,915.01 (118,078.03) (92,730.00) (4,220,860.05) (3,902,370.50) (19,407.40) (1,651.00) (815.51) (756.71) (1,329.01) (5,605.10) (6,181.53) (1,698.54) (578.84) (99,650.00) (578.84) (99,650.00) (1,370.99) (2,056.97) (110,400.00) 12,336.00 936.93 (91,554.58) $ 50.00 $ 10,125.00 $ 10,175.00 $ $ (61,827.44) $ 21.06 21.06 $ 154,127.81 92,300.37 $ 13,901.10 $ 386,753.63 $ 444,807.95 $ 510,509.52 74,279.23 5,404,272.09 6,246,293.19 5,735,783.67 88,180.33 $5,791,025.72 $6,691,101.14 $6,246,293.19 -9a- �M E R S K I N & M E R S K I N , P.C. West Shore Community College Statement of Current Funds Revenues, Expenditures and Other Changes Fiscal Year Ended June 30, 1985 Fiscal Year Auxiliary Fund General Fund Revenues and Other Changes T u i t i o n and Fees Property Taxes State Appropriations Federal Grants and Contracts State Grants and Contracts Private G i f t s , Grants and Contracts I n d i r e c t Cost Recoveries Endowment Income Investment Income Sales & Services of A u x i l i a r y A c t i v i t i e s Other Sources Decrease i n R e s t r i c t e d Revenues Held f o r Future Expenditure $ 630,061.86 1,360,137.20 1,087,950.00 149,727.84 10,177.59 32,185.50 9,730.10 $ 30,990.30 315,596.13 54,370.57 $3,365,330.96 Total Expenditures Mandatory Transfers In (Out) For Matching Grants $ $3,370,777.61 Expenditures and Transfers Instruction Public Service I n s t r u c t i o n a l Support Student Services In s t i tu t i ona1 Admi n i s t r a t i on Physical Plant Operations $ $1,377,943.34 155,441.85 356,845.44 432,645.55 527,003.15 520,898.28 Total Revenues and Other Changes $ $ Other Transfers In (Out) For Plant Improvements For Miscellaneous Purposes 315,596.13 360,782.09 360,782.09 - (2,671.00) $ 139,747.43 35,201.65 Total Expenditures and Transfers $3,233,701.18 $ 325,580.44 Revenues and Other Changes Over (Under) Expenditures and Transfers $ $ (9,984.31) 131,629.78 The Notes to the Financial Statements are an i n t e g r a l part of t h i s statement. -10- �Ended June 30, 1985 Total Unrestricted Funds $ 630,061.86 1,360,137.20 1,087,950.00 149,727.84 10,177.59 32,185.50 9,730.10 Total Current Funds Restricted Fund $ $ 488,571.11 80,000.00 12,343.26 (9,730.10) 1,698.54 7,853.43 630,061.86 1,360,137.20 1,087,950.00 638,298.95 90,177.59 44,528.76 Fiscal Year Ended 6/30/84 Total Current Funds $ 651,986.87 1,330,461.59 994,249.00 678,185.76 101,739.00 35,640.39 - 1,698.54 38,843.73 315,596.13 54,370.57 1,370.99 20,650.02 310,603.25 41,052.12 29,270.54 30,990.30 315,596.13 54,370.57 29,270.54 74,989.67 $3,680,927.09 $ 610,006.78 $4,290,933.87 $4,240,928.66 $1,377,943.34 155,441.85 356,845.44 793,427.64 527,003.15 520,898.28 $ 35,780.25 $1,301,848.19 6,000.00 447,520.10 $1,413,723.59 155,441.85 362,845.44 1,240,947.74 527,003.15 520,898.28 $3,731,559.70 $ 489,300.35 $4,220,860.05 $3,902,370.50 $ (2,671.00) $ (936.93) (83,394.50) 174,949.08 $3,559,281.62 $ $ $ 121,645.47 (36,375.00) $ 610,006.78 - (39,046.00) 359,549.29 1,224,098.50 477,274.22 539,600.30 $ (936.93) 91,554.58 (40,852.33) (47,315.50) (78,407.50) $4,169,288.40 $4,068,945.83 $ $ 121,645.47 -10a- 171,982.83 �M E R S K I N & M E R S K I N , P.C. West Shore Community College Notes to Financial Note A - S i g n i f i c a n t Accounting Page 1 Statements Policies The f i n a n c i a l statements have been prepared generally in accordance w i t h the accounting p r i n c i p l e s o u t l i n e d in the American I n s t i t u t e of C e r t i f i e d Public Accountants' a u d i t guide, Audits of Colleges and U n i v e r s i t i e s , and the Manual f o r Uniform Financial Reporting—Michigan Public Community Colleges. Fund C l a s s i f i c a t i o n s : The accounts of the College r e p o r t i n g purposes into the f o l l o w i n g seven funds: are summarized for f i n a n c i a l The current funds, consisting of the General, A u x i l i a r y , and Restricted (use r e s t r i c t e d by donor or supporting agency) Funds, are used to account f o r transact i o n s r e l a t e d to the i n s t r u c t i o n a l and academic programs, including r e s t r i c t e d purpose contracts and grants, research, extension and departmental programs and the a u x i l i a r y a c t i v i t i e s which provide services to the student body, f a c u l t y and s t a f f and p u b l i c . The Statement of Current Funds Revenues, Expenditures and Other Changes is a statement of f i n a n c i a l a c t i v i t i e s of current funds r e l a t e d to the c u r r e n t r e p o r t i n g year. I t does not purport to present the results of operations or the net income or loss for the year. The noncurrent funds and t h e i r functions are described as follows: (1) Student Loan Fund is used to account f o r transactions r e l a t e d to loans to students; (2) Endowment Fund is used to account f o r g i f t s which allow only the income thereon to be expended; (3) Plant Fund is used to account f o r transactions r e l a t i n g to i n vestment in i n s t i t u t i o n a l p r o p e r t i e s , indebtedness incurred in the financing thereof and reserves f o r maintenance and replacements; (4) Agency Fund is used to account for amounts withheld from p a y r o l l s , employer's portion of p a y r o l l taxes and various payroll b e n e f i t s , for amounts held in custody for students, Colleger e l a t e d organizations or others. Investments and I n s t i t u t i o n a l Properties: Investments and i n s t i t u t i o n a l propert i e s are stated a t cost or market value a t date of g i f t . Amounts expended d i r e c t l y from current funds for equipment or other c a p i t a l additions are included in expenditures or transfers of such funds and are c a p i t a l i z e d within the Plant Fund. Inventories: Inventories are stated a t the lower of cost or market. Revenue Recognition: A l l revenues and r e l a t e d expenditures incurred in connection w i t h the current summer session are deferred a t June 30. Restricted Fund revenues are recognized only to the extent expended. -11- �M E R S K I N & M E R S K I N , P.C. West Shore Community College Page 2 Notes to Financial Statements Note B - Cash and Temporary Investments Cash balances consist of the f o l l o w i n g : Cash C e r t i f i c a t e s of Deposit Totals June 30, 1985 1984 ~ 1 41,331.71 $ 63,574.66 1,067,237.92 934,158.12 $1,108,569.63 $ 997,732.78 Note C - Bonds, Notes Payable and Capitalized Leases Payable The p r i n c i p a l and i n t e r e s t on bonds and notes are payable from property taxes assessed for debt retirement. The o b l i g a t i o n s are generally c a l l a b l e , bear i n t e r e s t a t rates varying from 5.1% to 7% and mature a t various dates through 1996. The minimum annual p r i n c i p a l and i n t e r e s t payments due w i t h i n one year from June 30, 1985 aggregate $288,800. Note D - Retirement Plans The College by statute p a r t i c i p a t e s in the Michigan Public School Employees Retirement Fund and makes c o n t r i b u t i o n on behalf of i t s e l i g i b l e employees. Such c o n t r i b u t i o n s amounted to $310,975 in 1985. Note E - Investments Investments are 46 shares of Dow Chemical market value a t June 30, 1985 i s $1,645.00. -12- Company common stock. Aggregate �Other Financial Information -13- �M E R S K I N & M E R S K I N , P.C. West Shore Community College Details o f General Fund Expenditures and Other Changes Fiscal Year Ended June 30, 1985 Salaries And Wages Instruction: General Business and Public Service Trade, I n d u s t r i a l and Technical Health Occupations Totals $ $ Public Service: Business and I n d u s t r i a l Development I n s t i t u t e C u l t u r a l Arts Program Total s $ $ 13,090.21 12,128.59 25,216.00 $ 174,708.02 57,546.00 232,254.02 $ 148,337.14 41,412.41 169,749.55 $ $ $ 97,829.14 142,443.47 240,272.61 $ $ 249,030.51 $ $ 249,030.51 $ $ I n s t r u c t i o n a l Support: In s t r uc t i ona1 Admi n i s t r a t i o n I n s t r u c t i o n a l Media Center Totals $ 409,292.97 210,077.89 140,707.00 150,975.19 911,053.05 Supplies and Expenses 37,120.15 $ $ $ $ Student Services: Student Personnel Student Financial Aid Total s $ I n s t i tu t i ona1 Admi ni s tra t i on: Board of Trustees P r e s i d e n t ' s Office and Public Information Business Services Totals Physical Plant Operations: Physical Plant Energy Services Total s I n t e r n a l Service Operations: Data Processing Dupl i cation $ $ $ $ 132,869.99 105,556.39 63,409.94 51,702.50 353,538.82 75,789.32 45,820.48 121,609.80 70,043.66 35,349.59 105,393.25 126,554.41 116,254.35 242,808.76 40,062.69 40,758.43 182,165.03 262,986.15 132,151.31 130,667.57 262,818.88 17,838.95 16,165.43 34,004.38 (34,004.38) $ -14- $ $1,847,578.54 Totals 37,120.15 $ (37,120.15) $ Elimination of Rebilled Charges Net I n t e r n a l Service $1,349,155.66 - �Capital Outlay $ $ $ $ $ $ Transfers 2,626.62 34,718.50 74,711.66 1,294.69 113,351.47 $ 7,894.25 719.00 8,613.25 $ 5,645.95 13,552.22 19,198.17 $ $ $ $ $ - 544,789.58 350,352.78 278,828.60 203,972.38 $1,377,943.34 $ $ $ $ $ $ $ 2,671.00 2,671.00 $ 35,201.65 $ $ 1,284.00 10,837.00 11,623.39 23,744.39 $ 35,201.65 $ $ 9,048.89 $ $ 9,048.89 $ $ $ $ $ 87.24 87.24 $ _ Total - 61,790.25 $ 2,126.00 63,916.25 $ (63,916.25) $ $ $ 174,043.41 $ - - 37,872.65 $ $ $ 96,773.78 58,668.07 155,441.85 250,397.63 106,447.81 356,845.44 274,891.55 160,425.00 435,316.55 76,548.34 149,424.57 336,231.89 562,204.80 390,230.71 130,667.57 520,898.28 116,749.35 18,291.43 $ 135,040.78 (135,040.78) $ - $ $3,408,650.26 -14a- �M E R S K I N & M E R S K I N , P.C. West Shore Community College Details of A u x i l i a r y Fund Fiscal Year Ended June 30, 1985 Fund Balance 7/1/84 Activity Recreation Center Bookstore Food Service $ Revenues Expenditures Salaries Supplies and and Wages Expenses - $ 35,962.95 $ 41,449.31 $ 29,715.29 17,934.46 178,146.55 19,660.79 150,035.11 8,180.76 101,486.63 37,807.73 65,805.86 $ 26,115.22 $315,596.13 $ 98,917.83 $245,556.26 -15- �Expenditures Equipment Revenues & Other Over (Under) Capital Cost Expenditures $ - Fund Balance 6/30/85 Transfers In (Out) $(35,201.65) $ 35,201.65 $ 3,885.72 4,564.93 (6,368.48) 16,130.91 12,422.28 (14,549.24) 6,368.48 - $ 16,308.00 $(45,185.96) $ 35,201.65 $ 16,130.91 �M E R S K I N & M E R S K I N , P.C. West Shore Community College D e t a i l s of Restricted Funds Fiscal Year Ended June 30, 1985 Balance 7/1/84 Instruction Various Grants $ 82,361.35 $ Public Service Various Grants Plant Improvement Various Grants Other $ (2,245.10) $ 35,664.00 I n s t r u c t i o n a l Support Various Grants Student Services Various Grants Revenues Governmental Private Indirect Private Grants and G i f t s , Grants Costs Contracts & Contracts (Deduct) 6,000.00 51,764.49 444,545.76 12,343.26 (7,485.00) 9,551.97 $568,571.11 $ 12,343.26 $ (9,730.10) $9,551.97 936.93 $ 52,701.42 -16- �Expenditures Total $ 80,116.25 Salaries and Wages $ 5,319.95 Supplies and Expenses $ 30,460.30 Capi t a l Outlay $ - Total Transfers In (Out) Balance 6/30/85 $ 35,780.25 $ (44,336.00) $ 35,664.00 - - 6,000.00 - 6,000.00 6,000.00 458,955.99 - 447,520.10 447,520.10 (35,664.00) - - - - (39,769.50) 23,430.88 (936.93) $580,736.24 $ 5,319.95 $483,980.40 $ $489,300.35 $(120,706.43) $ 23,430.88 �M E R S K I N & M E R S K I N , P.C. West Shore Community College D e t a i l s of Student Loan Funds Fiscal Year Ended June 30, 1985 Balance 7/1/84 College Loan Funds Restricted Funds Luzor Memorial Veterans Loan Fund $ U n r e s t r i c t e d Funds: $ Interest Income $ 1,160.44 Emergency Student Loan Fund Total College Loan Funds 1,558.85 Contributions and Other $ 2,719.29 278.62 243.14 $ $ 521.76 Federal Student Loan Funds National D i r e c t Student Loans Total Student Loan Fund 168,478.13 26,710.00 $171,197.42 $ 26,710.00 -17- 7,875.89 $ 8,397.65 �Balance 6/30/85 Deductions $ 541.00 $ 280.08 1,123.50 $ 1,664.50 1,296.47 $ 1,576.55 19,887.42 183,176.60 $ 21,551.92 $184,753.15 �M E R S K I N & M E R S K I N , P.C. West Shore Community College Student Loan Fund - Summary of Loan Transactions Fiscal Year Ended June 30, 1985 College Student Loans Luzor Memorial Emergency Veterans Student Loan Fund Loan Fund Loans Outstanding a t 7/1/84 $ Loans Granted During Fiscal 1985 $ Number o f Loans: Outstanding a t 7/1/84 Granted During Year Outstanding a t 6/30/85 435.00 $134,375.57 2,307.50 57,900.00 2,742.50 $192,275.57 1,636.50 - 21,978.03 1,329.01 25,348.53 1,329.01 541.00 $ 427.00 $ 1,948.00 2,375.00 $ 1,106.00 17,760.40 - 17,760.40 1,647.00 $151,208.13 $151,308.13 278 80 358 31 2 22 294 144 303 304 100.00 5 15 20 14 -5 1 $ 11 49 60 38 - 22 $135,237.57 62,155.50 $197,393.07 The above loans outstanding have not been reduced by an allowance for doubtful amounts. -18- 00 Paid i n Full During Year Cancelled Loans Defaul ted Loans Total 1,734.00 - Deduct: Loan Payments Cancellation o f Indebtedness Loans Defaulted to Federal Government Other Defaulted Loans Loans Outstanding a t 6/30/85 Federal National Direct Student Loans 83 2 49 �M E R S K I N & M E R S K I N , P.C. West Shore Community College D e t a i l s of Endowment Fund Fiscal Year Ended June 30, 1985 Balance 7/1/84 Fund Gifts Income From Investments Endowment Funds McGhan Scholarship $ 2,000.00 Plank Memorial Scholarship 3,125.00 160.00 5,000.00 K i l l en Memorial Scholarship $ Totals $ 10,125.00 -19- 951.44 50.00 $ 50.00 587.10 $ 1,698.54 �Distributions of Endowment Transfers Income In (Out) 160.00 $ - Principal Balance 6/30/85 $ 2,000.00 951.44 5,000.00 587.10 $ - 3,175.00 1,698.54 $ $ 10,175.00 -19a- �M E R S K I N & M E R S K I N , P.C. West Shore Community College Notes and Bonds Payable Year Ended June 30, 1985 Interest Rate Plant Fund Notes Payable State Savings Bank of S c o t t v i l l e Telephone System Bonds Payable 1969 Community College Building Bonds 10.0 % 1987 Outstanding 7/1/84 " $ 39,000.00 5.3 to 6.0% 1978-1991 340,000.00 6.0% 1978-1991 500,000.00 5.1 to 7.0% 1979-1996 800,000.00 1969 Community College B u i l d i n g BondsSeries I I 1975 Community College B u i l d i n g Bonds Maturity Date Totals $1,679,000.00 A l l bonds are payable from ad valorem taxes, levied without l i m i t a t i o n as to rate or amount as provided by Section 6, A r t i c l e I I , of the Constitution of the State of Michigan. -20- �Retired $ 12,000.00 Outstanding 6/30/85 " $ 27,000.00 40,000.00 300,000.00 100,000.00 400,000.00 50,000.00 750,000.00 $202,000.00 $1,477,000.00 �M E R S K I N & M E R S K I N , P.C, West Shore Community College Schedule of Bonds Payable Issue of March 1 , 1969 On March 1, 1969, the West Shore Community College d i s t r i c t issued $750,000 o f 1969 Community Collge Building Bonds. The bonds are payable from ad valorem taxes, levied without l i m i t a t i o n as to rate or amount as provided by Section 6, A r t i c l e I I , of the C o n s t i t u t i o n of the State of Michigan. The amounts of p r i n c i p a l and i n t e r e s t payments are as f o l l o w s : Maturity Year 1985 1986 1987 1988 1989 1990 1991 $ $ Payable March 1, Interest Principal - 8,475.00 7,075.00 5,675.00 4,262.50 2,850.00 1,425.00 29,762.50 $ 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 $300,000.00 Interest Payable Sept. 1, $ 8,475.00 7,075.00 5,675.00 4,262.50 2,850.00 1,425.00 - $ 29,762.50 Annual Requirement $ 8,475.00 65,550.00 62,750.00 59,937.50 57,112.50 54,275.00 51,425.00 $359,525.00 The bonds are in $5,000 denomination each with i n t e r e s t a t various i n t e r e s t rates as f o l l o w s : Bonds Maturing 1986-1987 1988-1989 1990-1991 -21- 5.60% 5.65% 5.70% �M E R S K I N & M E R S K I N , P.C. West Shore Community College Schedule of Bonds Payable Issue of September 1, 1969 During December, 1969, the college d i s t r i c t sold $1,500,000 o f bonds designated "1969 Community College Building Bonds, Series I I " . The proceeds are f o r the purpose of e r e c t i n g , furnishing and equipping buildings and s i t e purchase and development costs. The bonds are payable from ad valorem taxes levied without l i m i t a t i o n as to r a t e or amount, as provided in Section 6, A r t i c l e IX of the Constitution of Michigan o f 1963. The annual debt requirements are as f o l l o w s : Payable March 1, Interest Principal $ 1 12,000.00 100,000.00 9,000.00 100,000.00 6,000.00 100,000.00 3,000.00 100,000.00 Interest Payable Sept. 1, $ 12,000.00 9,000.00 6,000.00 3,000.00 - Annual Requirement $ 12,000.00 121,000.00 115,000.00 109,000.00 103,000.00 $ Maturity Year 1985 1986 1987 1988 1989 $ 30,000.00 $460,000.00 30,000.00 $400,000.00 The bonds are i n denominations of $5,000 each with i n t e r e s t a t 6%. -22- �M E R S K I N & M E R S K I N , P.C. West Shore Community College Schedule of Bonds Payable Issue of February 1 , 1975 On February 1 , 1975, the West Shore Community College d i s t r i c t issued $1,000,000 o f 1975 Community College b u i l d i n g bonds. The bonds are payable from ad valorem taxes, l e v i e d without l i m i t a t i o n as to rate or amount as provided by Section 6, A r t i c l e I I , of the Constitution of the State of Michigan. Amounts of p r i n c i p a l and i n t e r e s t payments are as f o l l o w s : Ma t u r i t y Year 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 Interest Rate - 5.450 5.650 5.850 6.050 6.200 6.400 6.550 6.700 6.800 6.900 6.900 Payable March 1, Interest Principal $ $ - 23,925.00 22,562.50 21,150.00 19,687.50 17,418.75 15,093.75 12,693.75 10,237.50 7,725.00 5,175.00 2,587.50 158,256.25 $ 50,000.00 50,000.00 50,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 $750,000.00 The bonds are issued i n $5,000 denominations. -23- Interest Payable Sept. 1, $ 23,925.00 22,562.50 21,150.00 19,687.50 17,418.75 15,093.75 12,693.75 10,237.50 7,725.00 5,175.00 2,587.50 - $158,256.25 Annual Requirement $ 23,925.00 96,487.50 93,712.50 90,837.50 112,106.25 107,512.50 102,787.50 97,931.25 92,962.50 87,900.00 82,762.50 77,587.50 $1,066,512.50 �MERSKIN & M E R S K I N , P.C. West Shore Community College D e t a i l s of Construction Fund Fiscal Year Ended June 30, 1985 Balance 7/1/84 Investment Income Expendi tures Not Capi t a l i z e d $ $ Unexpended Appropriations f o r P l a n t : Unappropriated Construction Funds $ 21.06 -24- �Transfers In (Out) $ - Balance 6/30/85 $ 21.06 �Supplementary Financial Information Federal Projects -25- �M E R S K I N & M E R S K I N , P.C. AUDITOR'S COMMENTS O COMPLIANCE F R N O ATTACHMENT P AUDITS August 20, 1985 Board o f Trustees West Shore Community College S c o t t v i l l e , Michigan 49454 W have examined the combined f i n a n c i a l statements of the West Shore Community e College f o r the year ended June 30, 1985, and have issued our r e p o r t thereon dated August 20, 1985. Our examination was made in accordance with generally accepted a u d i t i n g standards; the provisions of Standards f o r Audit of Governmental Organizat i o n s , Programs, A c t i v i t i e s and Functions, promulgated by the U.S. Comptroller Gene r a l , as they pertain to f i n a n c i a l and compliance a u d i t s ; the provisions of the O f f i c e of Management and Budget's (0MB) Compliance Supplement - Uniform Requirements of Programs f o r Grants to State and Local Governments. Certain programs operated by the College were not included in OMB's Complia"nce Supplement - Uniform Requirements f o r Grants to State and Local Governments. For these programs we r e viewed the terms and conditions set f o r t h in the award agreements and determined the major compliance requirements to be tested; the provisions of OMB's Circular A-102, Uniform Administrative Requirements f o r Grants-in-Aid to State and Local Governments, Attachment P, Audit Requirements, and accordingly, included such tests o f the accounting records and such other a u d i t i n g procedures as we considered necessary in the circumstances. Based on our examination, we found t h a t , f o r the items tested, the College complied with the material terms and conditions of the federal grant agreements, w i t h no questioned costs evident. Further, based on our examination and the procedures r e f e r r e d to above, nothing came to our a t t e n t i o n to i n d i c a t e t h a t the College had not complied with the s i g n i f i c a n t compliance terms and conditions of the grants r e f e r r e d to above. This report i s intended s o l e l y f o r the use of West Shore Community College, the cognizant a u d i t agency, and other federal a u d i t agencies and should not be used f o r any other purpose. Respectfully submitted, Merskin & Merskin -26- �MERSKIN & MERSKIN, P.C. AUDITOR'S COMMENTS O INTERNAL CONTROL N FOR ATTACHMENT P AUDITS August 20, 1985 Board o f Trustees West Shore Community College S c o t t v i l l e , Michigan 49454 W have examined the combined f i n a n c i a l statements of the West Shore Community e College f o r the year ended June 30, 1985, and have issued our r e p o r t thereon dated August 20, 1985. As part of our examination, we made a study and evaluation of the system of i n t e r n a l accounting control of the College to the extent we considered necessary to evaluate the system as required by generally accepted a u d i t i n g standards and the standards f o r f i n a n c i a l and compliance audits contained i n the U.S. General Accounting Office Standards f o r Audit of Governmental Organizations, Programs, A c t i v i t i e s and Functions. For the purpose of t h i s r e p o r t , we have c l a s s i f i ed the s i g n i f i c a n t i n t e r n a l accounting controls in the f o l l o w i n g categories; revenue/receipts, purchases, and payroll disbursements. The purpose of our study and evaluation was to determine the nature, t i m i n g , and extent of the a u d i t i n g procedures necessary f o r expressing an opinion on the e n t i t y ' s f i n a n c i a l statements. Our study evaluation was more l i m i t e d than would be necessary to express an opinion on the system of i n t e r n a l accounting control taken as a whole or on any of the categories of controls i d e n t i f i e d above. The management of the College i s responsible f o r establishing and maintaining a system of i n t e r n a l accounting c o n t r o l . In f u l f i l l i n g t h i s r e s p o n s i b i l i t y , e s t i mates and judgments by management are required to assess the expected benefits and r e l a t e d costs of control procedures. The objectives of a system are to provide management with reasonable, but not absolute, assurance that assets are safeguarded a g a i n s t loss from unauthorized use or d i s p o s i t i o n , and that transactions are executed in accordance with management's a u t h o r i z a t i o n and recorded properly to permit the preparation of f i n a n c i a l statements in accordance with generally accepted accounting p r i n c i p l e s . Because of inherent l i m i t a t i o n s in any system of i n t e r n a l accounting c o n t r o l , errors or i r r e g u l a r i t i e s may nevertheless occur and not be det e c t e d . Also, projection of any evaluation of the system to future periods i s subj e c t to the r i s k that procedures may become inadequate because of changes i n condit i o n s or that the degree of compliance w i t h the procedures may d e t e r i o r a t e . -27- �Page 2 Our study and evaluation made for the l i m i t e d purpose described in the f i r s t paragraph would not necessarily disclose a l l material weaknesses in the system. Accordingly, we do not express an opinion on the system of i n t e r n a l accounting cont r o l of the College taken as a whole or on any of the categories of c o n t r o l s i d e n t i f i e d in the f i r s t paragraph. This report does not a f f e c t our report on August 20, 1985. the f i n a n c i a l statements dated This report is intended solely for the use of West Shore Community College, the cognizant a u d i t agency, and other federal a u d i t agencies and should not be used f o r any other purpose. Respectfully submitted, Merskin & Merskin -28- �M E R S K I N & M E R S K I N , P.C. West Shore Community College Federal Programs Schedule of Active Awards Fiscal Year Ended June 30, 1985 Project Code Grant T i t l e JTPA 8 JTPA 10 Vocational Education Quick S t a r t Grant Quick S t a r t Grant Quick S t a r t Grant Rural Occupational Dean's Grant Vocational Education 32G5 32K5 32K5 32K5 33C5 Total Grant Awards Amount of Award 14,928.82 10,173.20 3,581.00 8,359.00 23,614.00 9,960.00 10,000.00 225.25 7878 416319 416308 416334 80104 $ -29- 80,841.27 �MERSKIN & MERSKIN, P.C. West Shore Community College Federal Programs Expenditures Fiscal Year Ended June 30, 1985 Amount o f Grant Grant T i t l e Grant Expendi ture JTPA 8 JTPA 10 Vocational Education Quick S t a r t Quick S t a r t Quick S t a r t Rural Occupational Dean's Grant Vocational Education $ 14,928.82 10,173.20 3,581.00 8,359.00 23,614.00 9,960.00 10,000.00 225.25 ; 14,928.82 10,173.20 3,581.00 7,571.00 22,396.00 1,852.85 6,000.00 225.25 Total $ 80,841.27 $ 66,728.12 -30- �West Shore Community College Foundation -31- �MEMBERS: MICHIGAN ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OFFICES: 26 N. STATE STREET HART, MICHIGAN 49420 PHONE: 616-873-2111 MERSKIN & MERSKIN, P.C. CERTIFIED PUBLIC ACCOUNTANTS 906 E. LUDINGTON AVENUE LUDINGTON, MICHIGAN 49431 PHONE: 616-845-6251 PARTNERS: DONALD T. MERSKIN, C.P.A. GUY MERSKIN, C.P.A. GERALD E. THORNE. C.P.A DALE L. FITCH, C.F.A. KERRY E. CLARK, C.P.A. DAVID L. HATCH, C.P.A. 67 BENZIE BOULEVARD BOX 157 BEULAH, MICHIGAN 49617 PHONE: 616-882-5144 14252 BLUFF ROAD TRAVERSE CITY, MICHIGAN 49684 PHONE: 616-223-7198 August 20, 1985 Board o f Directors West Shore Community College Foundation W have examined the balance sheet as of June 30, 1985 and 1984 of the West e Shore Community College Foundation and the related statements of revenues, expendi t u r e s and changes in fund balance f o r the years then ended. Our examination was made in accordance with generally accepted a u d i t i n g standards and, accordingly, included such tests of the accounting records and such other a u d i t i n g procedures as we considered necessary in the circumstances. In our opinion, the aforementioned f i n a n c i a l statements present f a i r l y the f i n a n c i a l position of the West Shore Community College Foundation a t June 30, 1985 and 1984, and the changes in fund balances and the current revenues and expenditures for the years then ended, in conformity with generally accepted accounting p r i n c i p l e s applied on a basis consistent with that of the preceding year. Respectfully submitted, Merskin & Merskin -32- �M E R S K I N & M E R S K I N , P.C. West Shore Community College Foundation Balance Sheet June 30, 1985 June 30 1985 1984 Assets Cash and Temporary Investments Accrued I n t e r e s t Receivable $152,921.56 1,029.91 $136,251.83 $153,951.47 $136,251.83 Liabilities Accounts Payable $ $ Fund Balance Restricted Unrestricted $ 50,000.00 103,821.36 $ 50,100.00 86,151.83 Total Fund Balance $153,821.36 $136,251.83 Total $153,951.47 $136,251.83 Total Assets L i a b i l i t i e s and Fund Balance See Notes to the Financial Statements. -33- 130.11 �M E R S K I N & M E R S K I N , P.C. West Shore Community College Foundation Statement of Revenues, Expenditures and Changes in Fund Balance Fiscal Year Ended June 30, 1985 1985 Revenues Donations Membership Dues I n t e r e s t Income - Investments - Land Contracts $ 35,031.81 - Fund Balance - June 30, 1983 2,745.41 32,357.00 5,505.00 $ 1,053.33 337.00 8,429.59 $ 9,819.92 $ 17,569.53 $ 18,945.72 Unrestricted $ 67,076.11 Total $117,306.11 19,075.72 Restricted $ 50,230.00 $ 28,765.64 $ 40,607.41 Excess Revenues (Expenditures) 25.00 16,522.15 653.90 $ Total Expenditures 19,075.72 Excess Revenues (130.00) Excess (Expenditures) Fund Balance - June 30, 1984 $ 50,100.00 Excess (Expenditures) Fund Balance - June 30, 1985 : (100.00) $ See Notes to Financial Statements. -34- 50,000.00 $ (130.00) 86,151.83 $136,251.83 17,669.53 Add: Excess Revenues Deduct: $ 11,564.59 $ 58,176.94 Expenditures M a t e r i a l s and Supplies Special Programs Scholarships Deduct: 1984 23,145.13 Total Revenues Add: June 30, 17,669.53 = $ 103,821.36 (100.00) $153,821.36 �M E R S K I N & M E R S K I N , P.C. West Shore Community College Foundation Notes to Financial Statements General The West Shore Community College purposes o f : Foundation was established in 1971 f o r the 1. Securing etc. g i f t s or loans of property, works of a r t , h i s t o r i c a l papers, 2. Fund r a i s i n g by means of loan, g i f t s , grant and bequest for a broad v a r i ety of purposes, including i n s t r u c t i o n and research, establishment of endowments, scholarships, f e l l o w s h i p s , professorships, academic c h a i r s , c u l t u r a l events and for b u i l d i n g s , equipment and other f a c i l i t y of a l l kinds. 3. To a c t in the capacity of a f i d u c i a r y or trustee in carrying out these purposes and o b j e c t i v e s . The College is the sole beneficiary of any donations t o , or funds raised by the Foundation. Note A - Accounting Policies The income and expenses of the West Shore Community College accounted for according to the accrual method of accounting. -35- Foundation are � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Business Office Description An account of the resource Audit reports, budget documents Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource AuditReportFYEndedJune301985and1984.pdf Audit Report https://wsccarchives.org/files/original/dfdf523e6277810747cd5f7087799113.pdf 31d9fb063f020872ba16220b3d8b2611 PDF Text Text West Shore Community College Audit Report S c o t t v i l l e . Michigan F i s c a l Years Ended June 30. 1990 and 1989 MERSKIN & MERSKIN, P.C. CERTIFIED PUBLIC ACCOUNTANTS HART, MICHIGAN 49420 LUDINGTON, MICHIGAN 49431 �M E R S K I N & M E R S K I N , P.C. West Shore Community College Audit Report S c o t t v i l l e . Michigan F i s c a l Years Ended June 30. 1990 and 1989 1 �1 M E R S K I N & M E R S K I N , P.C. Contents Page West Shore Community College Audited Financial Statements Independent Auditor's Report 3 Comparative Balance Sheet 4-7a Statements o f Changes i n Fund Balance 8- 8a Statements of Current Funds Revenues, Expenditures and Other Changes 9- 9a Notes t o Financial Statements 10-16 SUPPLEMENTAL FINANCIAL INFORMATION D e t a i l s o f General Fund Expenditures and Other Changes 18- 18a D e t a i l s o f A u x i l i a r y Fund 19- 19a D e t a i l s o f Restricted Funds 20- 20a D e t a i l s o f Student Loan Funds 21 Student Loan Funds - Summary o f Loan Transactions 22 D e t a i l s o f Endowment Fund 23- 23a D e t a i l s o f Construction Fund 24- 24a Federal Grant Programs Independent Auditor's Report on Compliance With Laws and Regulations Independent Auditor's Report on I n t e r n a l Controls f o r Federal Grant Programs Schedule o f Active Awards and Expenditures 26 27-28 29 West Shore Community College Foundation Audited Financial Statements Independent Auditor's Report 31 Comparative Balance Sheets 32 Statements of Revenues, Expenditures and Changes i n Fund Balance 33 Notes t o Financial Statements 34 �Merskin & Merskin, P.C. Certified Public Accountants August 9, 1990 Independent Auditor's Report Board o f Trustees West Shore Community College S c o t t v i l l e , Michigan 49454 Dear Board Members: We have audited the balance sheet as o f June 30, 1990 and 1989 o f the West Shore Community College and the r e l a t e d statements o f changes i n fund balances and current funds revenues, expenditures, and other changes f o r the years then ended. These general purpose f i n a n c i a l statements are the r e s p o n s i b i l i t y o f West Shore Community College management. Our r e s p o n s i b i l i t y i s t o express an opinion on these general purpose f i n a n c i a l statements based on our a u d i t . We conducted our audit i n accordance w i t h g e n e r a l l y accepted a u d i t i n g standards and Government Audit Standards issued by the Comptroller General o f the United States. Those standards r e q u i r e t h a t we plan and p e r f o r m t h e a u d i t t o o b t a i n reasonable assurance about whether the general purpose f i n a n c i a l statements are free of m a t e r i a l misstatement. An a u d i t includes examining, on a t e s t basis, evidence supporting the amounts and disclosures i n the general purpose f i n a n c i a l statements. An a u d i t also includes assessing the accounting p r i n c i p l e s used and s i g n i f i c a n t estimates made by management, as w e l l as evaluating the o v e r a l l f i n a n c i a l statement presentation. We b e l i e v e t h a t our a u d i t p r o v i d e s a reasonable basis f o r our opinion. I n our o p i n i o n , t h e aforementioned f i n a n c i a l statements r e f e r r e d t o above present f a i r l y , i n a l l material respects, the f i n a n c i a l p o s i t i o n o f West Shore Community College, as o f June 30, 1990 and 1989, and the changes i n fund balances and the current funds revenues, expenditures, and other changes f o r the year then ended, i n conformity w i t h generally accepted accounting p r i n c i p l e s . Our a u d i t was made f o r t h e purpose o f f o r m i n g an o p i n i o n on t h e combined f i n a n c i a l statements taken as a whole. The Supplemental Financial Information i s presented f o r purposes o f a d d i t i o n a l analysis and i s not a required part of the combined f i n a n c i a l statements. Such information has been subjected t o the a u d i t i n g procedures applied i n the examination o f the combined f i n a n c i a l statements and, i n our opinion, i s f a i r l y stated i n a l l material respects i n r e l a t i o n t o the combined f i n a n c i a l statements taken as a whole. 26 N . State Street H a r t , M i c h i g a n 49420 616-873-2111 F A X 616-873-5836 3 906 E . L u d i n g t o n A v e n u e L u d i n g t o n , M i c h i g a n 49431 616-845-6251 F A X 616-845-1028 �M E R S K I N & M E R S K I N , P.C. West Shore Community College Comparative Balance Sheet June 30. 1990 and 1989 Assets June 30, 1990 Current Funds U n r e s t r i c t e d Funds: General Fund: Cash and Temporary Investments $ Property Taxes Receivable Accounts Receivable, less allowance f o r possible losses of $1,250.00 f o r 1990 and 1989 r e s p e c t i v e l y Accrued I n t e r e s t Receivable Prepaid Expenses Due From Other Funds - Note G 863,708.99 2,958.98 1989 $ 835,729.60 A u x i l i a r y Fund: Cash Inventories Accounts Receivable 34,364.94 2,772.34 97,760.82 36,116.21 $ 1 ,068,438.81 T o t a l General Fund 89,069.10 2,038.98 69,050.94 41,611.82 $ 1 ,006,743.91 $ T o t a l Current U n r e s t r i c t e d Funds $ 330.00 64,577.51 28,097.85 $ T o t a l A u x i l i a r y Fund 533.30 79,705.65 23,867.37 104,106.32 $ 93,005.36 $1 ,172,545.13 See Notes t o Financial Statements. 4 $1 ,099,749.27 �L i a b i l i t i e s and Fund Balances June 30, 1990 Current Funds U n r e s t r i c t e d Fund: General Fund: Accounts Payable Accrued Payrolls Accrued Expenses Unearned Student T u i t i o n and Fees Deferred Revenue - State Appropriations - Cultural Affairs $ $ Fund Balance: Budgeted f o r Following Year Unallocated T o t a l Fund Balance $ $ 23, 736. 32 167, 940. 72 193, 792. 38 52, 972. 00 126, 922. 00 214. 00 565, 577. 42 133, 857. 00 369, 004. 39 502, 861. 39 1989 $ $ $ $ 51, 692. 54 104, 010. 20 127, 447. 69 48, 123. 00 123, 802. 00 775. 00 455, 850. 43 107, 645. 00 443, 248. 48 550, 893. 48 $ 1 ,068, 438. 81 A u x i l i a r y Fund: Accounts Receivable Accrued Payrolls Accrued Expenses Due t o Other Funds Fund Balance: Budgeted f o r Following Year $1 ,006, 743. 91 $ T o t a l General Fund $ 7, 683. 62 1, 559. 52 3, 556. 17 41, 611. 82 48, 273. 89 49, 695. 19 T o t a l A u x i l i a r y Fund $ T o t a l Current Unrestricted Funds $1 ,172, 545. 13 4a 104, 106. 32 4, 570. 67 1, 701. 66 2, 342. 93 36, 116. 21 $ 93, 005. 36 $1 ,099, 749. 27 �M E R S K I N & M E R S K I N , P.C. West Shore Community College Comparative Balance Sheet - Continued June 30, 1990 and 1989 Assets June 30, 1990 Current Funds - Continued R e s t r i c t e d Fund: Cash Accounts Receivable Grants Receivable Accrued I n t e r e s t Receivable Prepaid Expenses 1989 $ 116,996.35 59.00 129,810.94 134.45 8,132.50 $ 5,848.90 79.00 114,480.24 53.50 5,496.55 T o t a l R e s t r i c t e d Fund $ 255,133.24 $ 125,958.19 Total Current Funds $ 1 ,427,678.37 Student Loan Fund: Cash Student Notes Receivable Accrued I n t e r e s t Receivable $ 1 ,225,707.46 $ See Notes t o Financial Statements. 5 314,187.85 $ 290,784.92 78,843.49 159.28 $ 57,466.25 179.75 $ Total Endowment Fund 19,633.77 271,071.55 79.60 $ Endowment Fund: Cash and Temporary Investments Accrued I n t e r e s t Receivable $ $ T o t a l Student Loan Fund 15,387.60 298,781.16 19.09 79,002.77 $ 57,646.00 �L i a b i l i t i e s and Fund Balances June 30, 1990 Current Funds - Continued R e s t r i c t e d Fund: Accounts Payable Deferred Revenue - Grants Accrued Expenses Accrued Payrolls Fund Balance 1989 $ 672.18 233,418.76 1,876.20 750.35 18,415.75 $ 914.65 104,771.22 1,990.26 673.60 17,608.46 T o t a l R e s t r i c t e d Fund $ 255,133.24 $ 125,958.19 T o t a l Current Funds $ 1 ,427,678.37 Student Loan Fund: Accounts Payable $1 ,225,707.46 $ 10.00 $ 169.37 $ $ $ 1,818.36 955.50 2,773.86 311,403.99 $ 1,688.69 1,736.19 3,424.88 287,190.67 T o t a l Fund Balance $ 314,177.85 $ 290,615.55 T o t a l Student Loan Fund $ 314,187.85 $ 290,784.92 $ 79,002.77 $ 57,646.00 $ 79,002.77 $ 57,646.00 Fund Balance: College Student Loan Programs: Restricted Unrestricted Federal Student Loan Programs Endowment Fund: Fund Balance T o t a l Endowment Fund 5a �M E R S K I N & M E R S K I N , P.C. West Shore Community College Comparative Balance Sheet - Continued June 30. 1990 and 1989 June 30, Assets 1990 Plant Funds Construction Fund: Cash and Temporary Investments Due From Other Funds Accrued I n t e r e s t Receivable $ 1989 15,124.57 21.06 32.29 21.06 $ Physical Properties: Land and Improvements Buildings and B u i l d i n g Improvements Furniture and Equipment L i b r a r y Books $ 169,077.72 507.56 55,653.00 60,654.50 299,667.53 $ 285,892.78 36,765.24 54.22 210.45 $ 25,373.02 49.64 37,029.91 $ 25,422.66 $ Total Debt Retirement 203,949.09 476.44 95,242.00 $ Debt Retirement Fund: Cash and Temporary Investments Accrued I n t e r e s t Receivable Property Taxes Receivable 21.06 $ Total Maintenance and Replacement Fund $ $ Maintenance and Replacement Fund: Cash and Temporary Investments Accrued I n t e r e s t Receivable Grants Receivable Prepaid Expenses 15,177.92 $ Total Construction Fund 321,188.80 5,420,490.00 2,744,300.11 301,286.26 $ 300,369.40 5,275,395.99 2,509,857.48 289,066.02 Total Physical Properties $8,787,265.17 $8,374,688.89 Total Plant Funds $9,139,140.53 $8,686,025.39 Agency Fund: Cash and Temporary Investments $ See Notes t o Financial Statements. 6 $ 28, 338.66 $ Total Agency Fund 21,220.67 21,220.67 $ 28, 338.66 �L i a b i l i t i e s and Fund Balances June 30, 1989 1990 Plant Funds Construction Fund: Fund Balance - Restricted Fund Balance - Unrestricted T o t a l Construction $ 21.06 15,177.92 $ 21.06 $ Maintenance and Replacement Fund: Accounts Payable Due t o Other Funds Fund Balance - Unrestricted: Reserve f o r Replacement Reserve f o r Encumbrances Unallocated $ $ Fund 15,156.86 21.06 36,118.00 21.06 $ 1,707.79 21.06 100,000.00 154,764.17 29,399.76 100,000.00 154,077.00 9,451.47 T o t a l Fund Balance $ 263,528.47 $ 284,163.93 T o t a l Maintenance and Replacement Fund $ 299,667.53 $ 285,892.78 $ 197.60 25,225.06 Debt Retirement Fund: Accounts Payable Fund Balance - Restricted $ 37,029.91 $ Physical Properties: Notes Payable - Note C Bond Payable - Note C Fund Balance T o t a l Physical 37,029.91 $ 25,422.66 $ T o t a l Debt Retirement Fund 5,400.00 500,000.00 8, 281,865.17 $ 9,000.00 625,000.00 7 ,740,688.89 $8, 787,265.17 Agency Fund: Accounts Payable P a y r o l l Taxes and Other Deductions Due t o Depositors $8 ,686,025.39 $ T o t a l Plant Funds $8 ,374,688.89 $9, 139,140.53 Properties $ 9,531.86 8,752.92 10,053.88 $ 28,338.66 11,442.29 9,778.38 Total Agency Fund $ 6a 21,220.67 �M E R S K I N & M E R S K I N , P.C. West Shore Community College Comparative Balance Sheet - Continued June 30. 1990 and 1989 June 30 Assets 1990 T o t a l A l l Funds Cash and Temporary Investments - Note B Property Taxes Receivable Accounts Receivable Student Notes Receivable Grants Receivable Other Receivables Inventories Prepaid Expenses Land and Improvements Buildings and B u i l d i n g Improvements Furniture and Equipment L i b r a r y Books 1989 1,352,529.30 3,169.43 112,995.47 298,781.16 225,052.94 2,914.75 79,705.65 77,183.44 321,188.80 5,420,490.00 2,744,300.11 301,286.26 $ 10,939,597.31 Total See Notes t o F i n a n c i a l Statements. 7 $ 1,141,797.92 $ 10,252,365.16 62,541.79 271,071.55 172,905.58 870.05 64,577.51 163,911.87 300,369.40 5,275,395.99 2,509,857.48 289,066.02 �/ L i a b i l i t i e s and Fund Balance June 30, 1990 T o t a l A l l Funds Accounts Payable Accrued P a y r o l l Accrued Expenses Unearned Student T u i t i o n and Fees P a y r o l l Taxes and Other Deductions Deferred Revenue Due t o Depositors Notes and Bonds Payable 1989 68,220.12 170,250.59 199,224.75 52,972.00 11,442.29 360,554.76 9,778.38 505,400.00 $ 1,377,842.89 $ 1,237,228.84 33,572.61 1,818.36 311,403.99 79,002.77 Total L i a b i l i t i e s 68,784.48 106,385.46 131,780.88 48,123.00 8,752.92 229,348.22 10,053.88 634,000.00 17,608.46 1,688.69 287,190.67 57,646.00 Fund Balance: Restricted: R e s t r i c t e d Fund A c t i v i t i e s College Student Loan Programs Federal Student Loan Programs Endowment »*•" ««• Debt Retirement Funds $ 389,358.88 $ R e s t r i c t e d Fund Balance Net Investment i n Physical Properties Unrestricted: Budgeted f o r Following Year Used f o r College Student Loan Programs Funds f o r Construction Projects Reserve f o r Replacement Funds f o r Maintenance and Replacement Encumbered - Note D Unencumbered Unallocated 462,827.64 $ 8,281,865.17 $ 7,740,688.89 183,552.19 955.50 21.06 100,000.00 155,918.89 1,736.19 21.06 100,000.00 154,077.00 9,451.47 369,004.39 154,764.17 29,399.76 443,248.48 U n r e s t r i c t e d Fund Balance $ Total $ 10,939,597.31 7a 817,061.61 $ 885,088.55 $ 10,252,365.16 �M E R S K I N & M E R S K I N , P.C. West Shore Community College Statement of Changes i n Fund Balance With Comparative P r i o r Year Totals F i s c a l Year Ended June 30. 1990 Current Funds Additions(Deductions): Current Funds Revenues and Other Changes Federal Grants and Contracts Property Taxes f o r Debt Retirement G i f t s and P r i v a t e Grants Investment Income Student Loan I n t e r e s t Expenditures from Current Funds f o r Equipment and Other C a p i t a l Additions Expenditures f o r C a p i t a l Additions Notes and Bonds Retired Plant Assets Sold or Retired Current Funds Expenditures U n c o l l e c t i b l e Loans C o l l e c t i o n Expense Loan Cancellations Distributions t o Beneficiary Funds Expenditures Not C a p i t a l i z e d I n t e r e s t and Bond Premium Mandatory Transfers: For Matching Grants Other Transfers I n (Out): For Plant Improvements For Miscellaneous Purposes Net Increase (Decrease) f o r the Year $ 4,894,197.30 $ (4,732,167.71) 384,672.05 $ 5,278,869.35 (384,674.75) (5,116,842.46) (5,136.82) (5,136.82) (183,409.86) (21,515.00) $ Fund Balance a t Beginning of Year Fund Balance a t End of Year Total Unrestricted Fund Auxiliary Fund General Fund (48,032.09) $ 550,893.48 $ 502,861.39 See Notes t o F i n a n c i a l Statements. 8 (183,409.86) (20,091.00) 1,424.00 1,421.30 $ 599,167.37 48,273.89 $ 49,695.19 (46,610.79) $ 552,556.58 �Student Loan Fund Restricted Fund $ 948,936.72 Plant Maintenance & Replacement Fund Construction Fund Endowment Fund Combined Totals - A l l Funds Funds Debt Retirement Fund $ 36,527.00 145,693.00 June 30, Physical Properties 1990 $ 6,227,806.07 197,093.00 $ 5,786,233.21 141,835.88 161,152.89 35,570.77 22,505.79 4,775.56 14,873.00 212,347.98 435.00 23,324.02 3,643.08 232,781.99 121,350.67 161,152.89 20,470.77 5,017.96 100.00 666.85 4,775.56 15,000.00 156.86 14,253.71 2,410.41 232,781.99 (199,223.29) 199,223.29 128,600.00 (19,429.00) (128,600.00) (19,429.00) (6,116,873.71) (1,477.00) (1,122.32) (19,966.79) (1,477.00) (1,122.32) (19,966.79) (5,362.96) 1,077.82 18,415.75 183,409.86 (36,164.00) 1,231.00 $ 17,608.46 | (3,999.53) (236,120.30) (53,900.00) 4,059.00 50,824.00 807.29 (1,693.95) (40,537.50) (31,225.54) (5,262,001.64) (396.50) (994.06) (2,625.00) (5,362.96) (130,298.69) (40,537.50) (1,000,031.25) (128,604.74) 1989 23,562.30 $ 290,615.55 $ 314,177.85 21,356.77 $ 79,002.77 8a $ 21.06 57,646.00 $ 15,156.86 $ 15,177.92 (20,635.46) 4,200.00 $ 284,163.93 $ 263,528.47 11,804.85 25,225.06 $ 37,029.91 $ 541,176.28 $ 546,618.10 7,740,688.89 9,015,136.32 $ 8,281,865.17 $ 9,561,754.42 $ 697,907.27 8,317,229.05 $ 9,015,136.32 �M E R S K I N & M E R S K I N , P.C. West Shore Community College Statement of Current Funds Revenues. Expenditures and Other Changes With Comparative Figures f o r P r i o r Year F i s c a l Year Ended June 30. 1990 General Fund Revenues and Other Changes T u i t i o n and Fees Property Taxes State A p p r o p r i a t i o n Federal Grants and Contracts State Grants and Contracts P r i v a t e G i f t s , Grants & Contracts I n d i r e c t Cost Recoveries Investment Income Sales & Services of A u x i l i a r y A c t i v i t i e s Other Sources $ 765,458.05 2 ,265,924.13 1 ,398,825.00 84,573.97 Auxiliary Fund $ - 37,167.17 113,593.16 66,933.89 - 384,672.05 161,721.93 T o t a l Revenues & Other Changes $4 ,894,197.30 Mandatory Transfers I n (Out) For Matching Grants $ $4 ,732,167.71 T o t a l Expenditures $ $2 ,066,739.10 232,773.63 443,274.64 588,270.50 689,557.43 711,552.41 Expenditures and Transfers Instruction Public Service I n s t r u c t i o n a l Support Student Services I n s t i t u t i o n a l Administration Physical Plant Operations $ $ $ (183,409.86) T o t a l Expenditures and Transfers $4 ,942,229.39 Revenues and Other Changes Over (Under) Expenditures and Transfers $ $ (21,515.00) See Notes t o F i n a n c i a l Statements. 9 384,672.05 -- 384,674.75 (5,136.82) $ Other Transfers I n (Out) For Plant Improvements For Miscellaneous Purposes ---- 384,674.75 - 1,424.00 $ 383,250.75 (48,032.09) $ 1,421.30 �Total Unrestricted Funds $ Memorandum Only June 30, 1990 1989 Total Total Current Current Funds Funds Restricted Fund 765,458.05 2,265,924.13 1,398,825.00 84,573.97 $ 17,793.07 765,458.05 2,265,924.13 1,398,825.00 907,966.25 102,503.00 58,128.76 91,921.26 72,892.57 384,672.05 179,515.00 823,392.28 102,503.00 20,961.59 (21,671.90) 5,958.68 37,167.17 113,593.16 66,933.89 384,672.05 161,721.93 $ 763,117.20 2,174,811.72 1,341,550.00 857,869.46 50,228.38 47,565.23 (5,737.75) 65,508.95 317,811.19 173,508.83 $5,278,869.35 $ 948,936.72 $6,227,806.07 $5,786,233.21 $2 ,066,739.10 232,773.63 443,274.64 972,945.25 689,557.43 711,552.41 $ 41 ,377.62 205 ,923.02 7 ,181.83 745 ,548.78 $2 ,108,116.72 438,696.65 450,456.47 1 ,718,494.03 689,557.43 711,552.41 $ 1 ,773,357.93 316,425.30 398,966.60 1 ,486,983.19 704,382.87 581,885.75 $5 ,116,842.46 $1,000 ,031.25 $6 ,116,873.71 $5 ,262,001.64 $ - (5,136.82) $ 1 ,077.82 $ (183,409.86) $ (20,091.00) 50,824.00 1 ' $5,325,480.14 $ ' $ 948,129.43 (46,610.79) $ 807.29 $ (4,059.00) $ (2,000.00) $ (183,409.86) $ (287,758.23) 30,733.00 22,756.00 "w' • $6, 273,609.57 $ $5,529,003.87 (45,803.50) $ 9a 257,229.34 �M E R S K I N & M E R S K I N , P.C. West Shore Community College Page 1 Notes t o F i n a n c i a l Statements Note A - Summary of S i g n i f i c a n t Accounting P o l i c i e s The f i n a n c i a l statements have been prepared i n accordance w i t h the a c c o u n t i n g p r i n c i p l e s o u t l i n e d i n the American I n s t i t u t e of C e r t i f i e d Public Accountants' a u d i t g u i d e , A u d i t s of Colleges and U n i v e r s i t i e s , and the Manual f o r Uniform F i n a n c i a l Reporting - Michigan Public Community Colleges. E n t i t y : West Shore Community College, established i n 1967, i s located near Scott v i l l e , Michigan. The College p r o v i d e s e d u c a t i o n a l s e r v i c e s t o r e s i d e n t s of Manistee and Mason Counties as w e l l as p o r t i o n s o f Lake, Oceana and Newaygo Counties. The College i s governed by a seven member Board which i s elected by residents of the aforementioned counties who are located w i t h i n the College's District. Fund C l a s s i f i c a t i o n s : The accounts of the College are organized on the basis of funds, each of which i s considered a separate accounting e n t i t y . The operations of each fund are accounted f o r w i t h a separate set of self-balancing accounts t h a t comprise i t s assets, l i a b i l i t i e s , fund e q u i t y , revenues, and expenditures, as app r o p r i a t e . Resources are a l l o c a t e d t o and accounted f o r i n i n d i v i d u a l funds based upon the purposes f o r which they are t o be spent and the means by which spending a c t i v i t i e s are c o n t r o l l e d . The various funds are grouped, i n the f i n a n c i a l s t a t e ments i n t h i s r e p o r t , i n t o current funds and other funds as follows: The c u r r e n t funds, c o n s i s t i n g of the General, A u x i l i a r y , and R e s t r i c t e d (use r e s t r i c t e d by donor or supporting agency) Funds, are used t o account f o r transact i o n s r e l a t e d to the i n s t r u c t i o n a l and academic programs, including r e s t r i c t e d purpose contracts and grants, research, extension and departmental programs and the a u x i l i a r y a c t i v i t i e s which provide services t o the student body, f a c u l t y and s t a f f , and p u b l i c . The Statement o f Current Funds Revenues, Expenditures and Other Changes i s a statement of f i n a n c i a l a c t i v i t i e s of current funds r e l a t e d t o the c u r r e n t r e p o r t i n g year. I t does not purport t o present the r e s u l t s of operat i o n s or the net income or loss f o r the year. The non-current funds and t h e i r functions are described as follows: (1) Student Loan Fund i s used to account f o r transactions r e l a t e d t o loans t o students; (2) Endowment Fund i s used t o account f o r g i f t s which allow only the income thereon t o be expended; (3) Plant Fund i s used t o account f o r transactions r e l a t i n g t o i n vestment i n i n s t i t u t i o n a l p r o p e r t i e s , indebtedness i n c u r r e d i n the f i n a n c i n g thereof and reserves f o r maintenance and replacements; (4) Agency Fund i s used t o account f o r amounts withheld from p a y r o l l s , employer's p o r t i o n of p a y r o l l taxes and various p a y r o l l b e n e f i t s , f o r amounts held i n custody f o r students, Colleger e l a t e d organizations or others. 10 �M E R S K I N & M E R S K I N , P.C. West Shore Community College Notes t o Financial Page 2 Statements Note A - Summary of S i g n i f i c a n t Accounting P o l i c i e s - continued Method of Accounting: The accompanying f i n a n c i a l statements have been prepared on the accrual basis w i t h the f o l l o w i n g exceptions, which i s common p r a c t i c e i n c o l leges and u n i v e r s i t i e s : (1) i n t e r e s t on student loans are recorded when received, and (2) R e s t r i c t e d Fund revenue i s recognized only to the extent expended. I n v e s t m e n t s and I n s t i t u t i o n a l P r o p e r t i e s : I n v e s t m e n t s and i n s t i t u t i o n a l p r o p e r t i e s are stated at cost or market value a t date of g i f t . Amounts expended d i r e c t l y from c u r r e n t funds f o r equipment or other c a p i t a l a d d i t i o n s are included i n expenditures or t r a n s f e r s of such funds and are c a p i t a l i z e d w i t h i n the Plant Fund. Depreciation i s not provided on physical p r o p e r t i e s . Inventories: I n v e n t o r i e s are stated at the lower of cost or market on a f i r s t - i n f i r s t - o u t basis. Revenue Recognition: A l l revenues and r e l a t e d expenditures incurred i n connection w i t h the c u r r e n t summer session are deferred a t June 30. R e s t r i c t e d Fund revenues are recognized only t o the extent expended. The State o f Michigan appropriates funds t o the College f o r operations covering the State's f i s c a l year, October 1 through September 30. Since the College's f i s c a l year i s from J u l y 1 through June 30, revenue from the S t a t e i s recognized proportionately. T o t a l Columns: T o t a l columns on the Combined Statements are captioned (Memorandum Only) t o i n d i c a t e t h a t they are presented only t o f a c i l i t a t e f i n a n c i a l analysis. Data i n these columns do not present f i n a n c i a l p o s i t i o n or changes i n f i n a n c i a l p o s i t i o n i n conformity w i t h g e n e r a l l y accepted accounting p r i n c i p l e s . Neither i s such data comparable to a consolidation. I n t e r f u n d e l i m i n a t i o n s have not been made i n the aggregation of t h i s data. Note B - Cash and Temporary Investments Cash balances consist of the f o l l o w i n g : June 30, 1990 Cash C e r t i f i c a t e s of Deposit Totals $ 705,436.48 647.092.82 $1.352.529.30 11 1989 $ 530,442.74 611.355.18 $1.141.797.92 �M E R S K I N & M E R S K I N , P.C. Page 3 West Shore Community College Notes t o Financial Statements Note C - Bonds and Notes Payable The p r i n c i p a l and i n t e r e s t on notes are payable from General Fund revenues. The p r i n c i p a l and i n t e r e s t on bonds are payable from property taxes assessed f o r debt retirement. The o b l i g a t i o n s are generally c a l l a b l e , bear i n t e r e s t a t rates varying from 5.1% t o 10% and mature a t various dates through 1996. The minimum annual p r i n c i p a l and i n t e r e s t payments due w i t h i n one year from June 30, 1990 aggregate $162,238; w h i l e payments due w i t h i n one year from June 30, 1989 aggregated $169,737. 1. Bonds Payable Issue of March 1, 1969 On March 1, 1969, the West Shore Community College D i s t r i c t issued $750,000 of 1969 Community College Building Bonds. The bonds are payable from ad valorem taxes, l e v i e d without l i m i t a t i o n as t o rate or amount as provided by Section 6, A r t i c l e I I , of the Constitution of the State o f Michigan. The amounts of p r i n c i p a l and i n t e r e s t payments are as follows: Maturity Year 1990 1991 Payable March 1, Interest Principal Interest Payable Sept. 1, Annual Requirement $ 1.425.00 $ 50.000.00 $ 1,425.00 - $ $ 1.425.00 $ 50.000.00 $ 1.425.00 $ 52.850.00 The bonds are i n $5,000 denomination each w i t h rates as f o l l o w s : Bonds Maturing 1990-1991 1,425.00 51.425.00 interest a t various i n t e r e s t 5.70% Issue of February 1. 1975 On February 1, 1975, the West Shore Community College D i s t r i c t issued $1,000,000 of 1975 Community College B u i l d i n g Bonds. The bonds are payable from ad valorem taxes, l e v i e d without l i m i t a t i o n as t o rate or amount as provided by Section 6, A r t i c l e I I , of the Constitution of the State o f Michigan. Amounts of p r i n c i p a l and i n t e r e s t payments are as follows: 12 �M E R S K I N & M E R S K I N , P.C. West Shore Community College Page 4 Notes t o Financial Statements Note C - Bonds and Notes Payable - continued 1. Bonds Payable - continued Maturity Year Interest Rate 1990 1991 1992 1993 1994 1995 1996 6.200 6.400 6.550 6.700 6.800 6.900 6.900 Interest Payable Sept. 1, Payable March 1. Interest Principal $ _ $ $15,093.75 12,693.75 10,237.50 7,725.00 5,175.00 2,587.50 $ 15,093.75 12,693.75 10,237.50 7,725.00 5,175.00 2,587.50 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75.000.00 53,512.50 $450,000.00 $53,512.50 Annual Requirement $ 15,093.75 102,787.50 97,931.25 92,962.50 87,900.00 82,762.50 77.587.50 $557,025.00 The bonds are issued i n $5,000 denominations. 2. Notes Payable - Other long-term debt o f the College includes a note payable t o State Savings Bank of S c o t t v i l l e on a t r a c t o r purchase. The $18,000 note which matures on December 3, 1991, c a r r i e s i n t e r e s t o f 6.25%. The p r i n c i p l e and i n t e r e s t payments remaining on the note are as follows: Year 1990- 91 1991- 92 Interest $ 600.00 300.00 900.00 $ 13 Principal $ $ 3,600.00 1.800.00 5.400.00 �M E R S K I N & M E R S K I N , P.C. Page 5 West Shore Community College Notes t o F i n a n c i a l Statements Note C - Bonds and Notes Payable - continued 2. Notes Payable - continued P r i n c i p a l m a t u r i t i e s of the Bonds and Notes Payable f o r each of the f i v e years succeeding June 30, 1990, are as f o l l o w s : Year Ending June 30. 1991 1992 1993 1994 1995 and Thereafter Maturity Amount $128,600 76,800 75,000 75,000 150,000 $505.400 The f o l l o w i n g i s a summary of long-term debt transactions of the College f o r the year ended June 30, 1990: Outstanding 7/01/89 Plant Fund Notes Payable State Savings Bank of Scottville - Tractor $ Retired Issued 9,000.00 $ $ 3,600.00 Outstanding 6/30/90 $ 5,400.00 Bonds Payable 1969 Community College B u i l d i n g Bonds 100,000.00 50,000.00 50,000.00 1975 Community College B u i l d i n g Bonds 525.000.00 75,000.00 450.000.00 Totals $ 634.000.00 $ $128.600.00 $ 505.400.00 Note D - Encumbrances Encumbrances are budget commitments r e l a t e d t o unperformed contracts f o r goods or services. Encumbrances outstanding a t year-end are reservations of fund balance f o r subsequent years' expenditure and are noted as Reserve f o r Encumbrances i n the Maintenance and Replacement Fund i n the amount of $154,077 f o r the year ended June 30, 1990; and $154,764 f o r the year ended June 30, 1989. 14 �M E R S K I N & M E R S K I N , P.C. West Shore Community College Page 6 Notes t o Financial Statements Note E - Retirement Contributions The College p a r t i c i p a t e s i n the Michigan Public School Employees Retirement System which i s a defined c o n t r i b u t i o n pension plan. The retirement s t a t u t e required t h a t the College c o n t r i b u t e 9.00% of the aggregate annual compensation paid t o a l l employees who are members of the Retirement System. The employees covered by the p l a n i n c l u d e : a l l t e a c h i n g and non-teaching employees, employees paid from Federal Funds, students working summer months but not a t t e n d i n g classes, and students working i n a school other than the one they are e n r o l l e d i n and attending class. During t h e year ended June 30, 1990, t h e College c o n t r i b u t e d $249,268 t o t h e retirement system based on t o t a l current year covered s a l a r i e s of $2,769,644. The t o t a l p a y r o l l f o r the current year was $2,797,698. Member Investment Plan: E f f e c t i v e January 1, 1987, members o f MPSERS may i r revocably e l e c t t o contribute a percentage of t h e i r gross wages on a tax deferred b a s i s t o a "member investment p l a n " (MIP) which q u a l i f i e s them f o r a d d i t i o n a l benefits. The c o n t r i b u t i o n rate w i l l be f i x e d a t 4% f o r wages received through December 31, 1989 and f o r wages received January 1, 1990 and l a t e r , the r a t e w i l l be permanently reduced t o 3.9%. This applies t o current MIP members and employees h i r e d through December 31, 1989 who e l e c t MIP. E f f e c t i v e January 1, 1990, employees f i r s t h i r e d on or a f t e r January 1, 1990 and r e t u r n i n g members who d i d not work between January 1, 1987 and December 31, 1989 w i l l a u t o m a t i c a l l y be provided w i t h MIP membership a t the f o l l o w i n g graduated cont r i b u t i o n s : 3.0% of the f i r s t $5,000; 3.6% of $5,001 through $15,000; and 4.3% o f a l l wages over $15,000. Three years a f t e r the i n i t i a l date of h i r e , a member may i r r e v o c a b l y e l e c t t o discontinue p a r t i c i p a t i o n i n the MIP, pending IRS approval. During the year ended June 30, 1990, employee c o n t r i b u t i o n s t o MIP were $55,107 based on t o t a l current year covered s a l a r i e s of $1,396,280 and t o t a l p a y r o l l of $2,797,698. Note F - Contracts/Commitments Contracts have been l e t f o r r o o f i n g replacement i n the amount of $81,318; basement f l o o r waterproofing i n the amount of $10,262; and energy systems update i n the amount of $31,890; a l l of which w i l l be financed by a v a i l a b l e resources. 15 �M E R S K I N & M E R S K I N , P.C. West Shore Community College Page 7 Notes t o Financial Statements Note G - I n t e r f u n d Payables-Receivables Fund General Fund A u x i l i a r y Fund Plant Fund Maintenance-Replacement Due t o $ $ 41,611 21 $ 16 - 41.632 Due From 41,611 - $ 21 41.632 �M E R S K I N & M E R S K I N , P.C. SUPPLEMENTAL FINANCIAL INFORMATION 17 �M E R S K I N & M E R S K I N , P.C. West Shore Community College D e t a i l s of General Fund Expenditures and Other Changes F i s c a l Year Ended June 30, 1990 Salaries and Wages Instruction: General Business and Public Service Trade, I n d u s t r i a l and Technical Health Occupations Total Instruction 655,867.89 315,983.39 224,591.29 238,005.78 $1 ,434,448.35 $ Public Service: C u l t u r a l A r t s Program Recreation Center Total Public Service $ $ I n s t r u c t i o n a l Support: I n s t r u c t i o n a l Media Center Instructional Administration T o t a l I n s t r u c t i o n a l Support $ $ Student Services: Student Personnel Student F i n a n c i a l Aid Total Student Services $ $ Instructional Administration: Board of Trustees President's O f f i c e & Public Information Business Services Total I n s t r u c t i o n a l A d m i n i s t r a t i o n 32,693.57 79,695.62 112,389.19 71,850.88 225,905.01 297,755.89 224,300.33 49,380.17 273,680.50 Supplies and Expenses $ $ $ $ $ $ $ $ $ $ $ 272,274.43 $ $ 272,274.43 $ $ I n t e r n a l Service Operations: Data Processing Duplication $ $ Physical Plant Operations: Physical Plant Energy Services Total Physical Plant Operations 116,697.07 218,685.60 335,382.67 38,888.36 $ $ E l i m i n a t i o n of Rebilled Charges Net I n t e r n a l Service $ Totals - - 38,888.36 $ (38,888.36) - $2,725,931.03 18 $ 260,617.01 134,718.32 103,757.41 81,249.34 580,342.08 90,886.48 29,201.96 120,088.44 39,461.45 78,805.25 118,266.70 155,080.92 136,237.17 291,318.09 72,952.53 50,313.38 188,745.33 312,011.24 235,505.09 164,335.06 399,840.15 8,372.32 51,660.48 60,032.80 (60,032.80) - $1,821,866.70 �Capital Outlay Transfers $ 44,382.57 1,000.02 6,566.08 $ - $ 51,948.67 $ - $ - $ I 296.00 296.00 $ Total 960,867.47 451,701.73 334,914.78 319,255.12 $2 ,066,739.10 $ $ $ $ - $ $ 15,777.38 11,474.67 27,252.05 $ - $ $ 23,271.91 $ $ $ 23,271.91 $ $ 5,136.82 5,136.82 $ 123,580.05 109,193.58 232,773.63 127,089.71 316,184.93 443,274.64 402,653.16 190,754.16 593,407.32 $ 261,958.00 $ $ 3,767.00 38,396.52 42,163.52 $ 29,432.30 291,390.30 $ $ 39,437.83 $ 4,977.25 $ $ 39,437.83 $ 4,977.25 $ $ 4,376.45 $ $ 4,376.45 (4,376.45) $ - 51,637.13 51,660.48 $ 103,297.61 (103,297.61) $ - $ $ $ $ 184,369.98 $ - 301,504.37 334,910.53 170,777.45 475,259.75 980,947.73 552,194.60 164,335.06 716,529.66 $ - $5 ,033,672.08 18a �M E R S K I N & M E R S K I N , P.C. West Shore Community College D e t a i l s of A u x i l i a r y Fund F i s c a l Year Ended June 30, 1990 Activity Bookstore Food Service Fund Balance 7/01/89 Salaries and Wages Revenues Expenditures Supplies & Expenses Capital Outlay $ 48,273.89 - $244,854.79 139,817.56 $ 23,241.15 41,295.63 $206,228.50 94,984.50 $14,337.72 4,587.25 $ 48,273.89 $384,672.35 $ 64,536.78 $301,213.00 $18,924.97 19 �Revenues Over (Under) Expenditures $ $ Transfers I n (Out) 1,047.42 $ (1,049.82) 1,424.00 (2.40) $ 1,424.00 Fund Balance 6/30/90 $ 49,321.31 374.18 $ 49,695.49 19a �M E R S K I N & M E R S K I N , P.C. West Shore Community College D e t a i l s of R e s t r i c t e d Funds F i s c a l Year Ended June 30. 1990 Balance 7/01/89 Instruction Various Grants $ 54,203.62 Public Service Various Grants 135,805.95 I n s t r u c t i o n a l Support Various Grants Student Services Various Grants Revenues Private Gifts, Grants & Contracts Governmental Grants & Contracts $ Indirect Costs (Deduct) Other $(12,826.00) $ 1,000.00 17,793.07 7,181.83 17,608.46 728,703.88 19,961.59 $17,608.46 $925,895.28 $20,961.59 20 (8,845.90) 5,958.68 $(21,671.90) $23,751.75 �Expenditures Salaries and Wages Total $ 41,377.62 154,599.02 7,181.83 $ Supplies & Expenses $ 41,377.62 40,329.95 - Capital Outlay $ - Transfers I n (Out) Total $ 41,377.62 149,629.82 15,963.25 205,923.02 282.10 6,899.73 $ Balance 6/30/90 $ - 51,324.00 7,181.83 745,778.25 12,615.68 728,433.25 4,499.85 745,548.78 577.82 18,415.75 $948,936.72 $52,945.63 $919,722.79 $27,362.83 $1,000,031.25 $51,901.82 $18,415.75 20a �M E R S K I N & M E R S K I N , P.C. West Shore Community College D e t a i l s of Student Loan Funds F i s c a l Year Ended June 30. 1990 Contributions & Other Balance 7/01/89 College Loan Funds R e s t r i c t e d Funds: Luzer Memorial Veterans Loan Fund $ U n r e s t r i c t e d Funds: Emergency Student Loan Fund T o t a l College Loan Funds 1,688.69 $ 1,736.19 $ 3,424.88 - Interest Income $ 100.00 $ 100.00 119.67 $ (10.00) 182.06 $ Balance 6/30/90 Deductions 1,062.75 301.73 $ 1,052.75 $ 1,818.36 955.50 $ 2,773.86 Federal Student Loan Funds National D i r e c t Student Loans T o t a l Student Loan Funds 287,190.67 40,586.00 5,140.68 21,513.36 311,403.99 $290,615.55 $ 40,686.00 $ 5,442.41 $22,566.11 $314,177.85 21 �M E R S K I N & M E R S K I N , P.C. West Shore Community College Student Loan Fund - Summary o f Loan Transactions F i s c a l Year Ended June 30, 1990 College Student Loan Funds Luzer Emergency Memorial Student Veterans Loan Fund Loan Fund Loans Outstanding a t 7/01/89 Loans Granted During Fiscal 1990 571.25 5,495.00 $ 6,066.25 Deduct: Loan Payments Cancellation o f Indebtedness Loans Defaulted t o Federal Gov't. Other Defaulted Loans (4,791.25) (1,085.00) Loans Outstanding at 6/30/90 Federal National Direct Student Loans $270,500.05 80,110.00 $350,610.05 (31,660.10) (392.00) (19,966.79) Total $ 271,071.30 85^605.00 $356,676.30 (36,451.35) (1,477.00) (19,966.79) 190.00 381 63 30 2 21 384 121 78 12 21 391 Outstanding a t 6/30/90 $298,781.16 3 58 48 10 Number o f Loans: Outstanding a t 7/01/89 Granted During Year Paid I n F u l l During Year Cancelled Loans Defaulted Loans $298,591.16 394 The above loans outstanding have not been reduced by an allowance f o r d o u b t f u l accounts. 22 �M E R S K I N & M E R S K I N , P.C. West Shore Community college D e t a i l s of Endowment Fund Fiscal Year Ended June 30. 1990 Balance 7/01/89 Metal Works Scholarship $ 10,000.00 Income from Investments Gifts $ 5,000.00 $ 977.10 Distribution of Endowment Income $ 977.10 - 12,250.00 467.57 467.57 Dow Scholarship 10,000.00 - 675.70 675.70 Martin M a r i e t t a Scholarship 10,000.00 695.70 695.70 185.72 530.72 347.85 347.85 224.60 224.60 Garber Scholarship - McGhan Scholarship 2,345.00 Plank Memorial Scholarship 5,000.00 K i l l e n Memorial Scholarship 3,225.00 Maclean Memorial Scholarship 7,076.00 100.00 495.27 495.27 10,000.00 3,020.77 907.16 907.16 100.00 41.29 41.29 C u l t u r a l Arts Endowment Welding Scholarship Totals _ $ 57,646.00 $ 23 20,470.77 $ 5,017.96 $ 5,362.96 �Transfers I n (Out) $ - Principal Balance 6/30/90 $ 15,000.00 12,250.00 10,000.00 10,000.00 2,000.00 5,000.00 3,225.00 7,176.00 13,020.77 1,231.00 $ 1,331.00 1,231.00 $ 79,002.77 23a �M E R S K I N & M E R S K I N , P.C. West Shore Community College D e t a i l s of Construction Fund F i s c a l Year Ended June 30. 1990 Balance 7/01/89 Contributions and Other Investment Income Unexpended Appropriations f o r Plant: Appropriated Construction Funds $ Unappropriated Construction Funds $ 15,000.00 21.06 $ 24 21.06 $ $ 15,000.00 156.86 - $ 156.86 �Expenditures Not Capitalized Transfers I n (Out) Balance 6/30/90 $ 15,156.86 21.06 $ 15,177.92 24a �M E R S K I N & M E R S K I N , P.C. Supplemental Financial Information Federal Grant Programs 25 �Merskin & Merskin, P.C. Certified Public Accountants August 9, 1990 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Trustees West Shore Community College S c o t t v i l l e , Michigan 49454 W have audited the f i n a n c i a l statements o f West Shore Community College as o f and e f o r the year ended June 30, 1990, and have issued our r e p o r t thereon dated August 9, 1990. We conducted our audit i n accordance w i t h generally accepted a u d i t i n g standards and Government A u d i t i n g Standards, issued by the C o m p t r o l l e r General o f t h e U n i t e d States and the provisions of the O f f i c e of Management and Budget's (0MB) Compliance Supplement- Uniform Requirements f o r Grants t o State and Local Governments. Certain programs operated by the College were not included i n 0MB's Compliance Supplement Uniform Requirements f o r Grants t o State and Local Governments. For these programs we reviewed the terms and conditions set f o r t h i n the award agreements and determined the major compliance requirements t o be t e s t e d ; the p r o v i s i o n s of 0MB's C i r c u l a r A-110, Uniform Requirements f o r Grants t o U n i v e r s i t i e s , Hospitals and Other Non-Profit Organizations. Those standards r e q u i r e t h a t we plan and perform the a u d i t t o obtain reasonable assurance about whether the general purpose f i n a n c i a l statements are free of material misstatement. Compliance w i t h laws, regulations, contracts and grants applicable t o West Shore Community College i s the r e s p o n s i b i l i t y o f College's management. As part of obtaining reasonable assurance about whether the f i n a n c i a l statements are free of material misstatement, we performed t e s t s o f West Shore Community College's compliance w i t h c e r t a i n p r o v i s i o n s o f laws, regulations, c o n t r a c t s and grants. However, our object i v e was not t o provide an opinion on o v e r a l l compliance w i t h such provisions. The r e s u l t s o f our t e s t s indicate t h a t , w i t h respect t o the items tested, West Shore Community College complied, i n a l l material respects, w i t h the provisions r e f e r r e d to i n the preceding paragraph. With respect t o items not t e s t e d , nothing came t o our a t t e n t i o n t h a t caused us t o believe t h a t West Shore Community College had not complied, i n a l l material respects, w i t h those p r o v i s i o n s . This r e p o r t i s intended f o r the information o f West Shore Community College, the cognizant agency and other Federal agencies. This r e s t r i c t i o n i s not intended t o l i m i t the d i s t r i b u t i o n of t h i s report, which i s a matter o f p u b l i c record. 26 N . State Street H a r t , M i c h i g a n 49420 616-873-2111 F A X 616-873-5836 26 906 E . L u d i n g t o n A v e n u e L u d i n g t o n , M i c h i g a n 49431 616-845-6251 F A X 616-845-1028 �Merskin & Merskin, P.C Certified Public Accountants August 9, 1990 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROLS FOR FEDERAL GRANT PROGRAMS Board o f Trustees West Shore Community College S c o t t v i l l e , Michigan 49454 We have audited the f i n a n c i a l statements o f the West Shore Community College f o r the year ended June 30, 1990, and have issued our r e p o r t thereon dated August 9, 1990. As p a r t o f our a u d i t , we made a study and e v a l u a t i o n o f the i n t e r n a l cont r o l systems, including applicable i n t e r n a l a d m i n i s t r a t i v e c o n t r o l s , used i n adm i n i s t e r i n g federal f i n a n c i a l assistance programs t o t h e extent we considered necessary t o evaluate the systems as r e q u i r e d by g e n e r a l l y accepted a u d i t i n g standards, Government Auditing Standards, issued by the Comptroller General o f the United States, and the provisions o f 0MB C i r c u l a r A-110, Uniform Requirements f o r Grants t o U n i v e r s i t i e s . Hospitals and Other Non-profit Organizations. For the purpose o f t h i s report, we have c l a s s i f i e d the s i g n i f i c a n t i n t e r n a l accounting c o n t r o l s i n the f o l l o w i n g categories: Receipts/Revenues Cash Disbursements Purchases and P a y r o l l Our study and evaluation o f the i n t e r n a l c o n t r o l systems used s o l e l y i n administ e r i n g these Federal f i n a n c i a l assistance programs o f West Shore Community College d i d not extend beyond t h i s p r e l i m i n a r y review phase. The management o f t h e West Shore Community College i s r e s p o n s i b l e f o r establ i s h i n g and maintaining i n t e r n a l c o n t r o l systems used i n administering federal f i n a n c i a l assistance programs. I n f u l f i l l i n g t h a t r e s p o n s i b i l i t y , estimates and judgments by management are required t o assess the expected b e n e f i t s and r e l a t e d costs o f c o n t r o l procedures. The o b j e c t i v e s o f i n t e r n a l c o n t r o l systems used i n administering federal f i n a n c i a l assistance programs are t o provide management w i t h reasonable, but not absolute, assurance t h a t , w i t h respect t o federal f i n a n c i a l assistance programs, resource use i s consistent w i t h laws, r e g u l a t i o n s , and p o l i c i e s ; resources are safeguarded against waste, loss, and misuse; and r e l i a b l e data are obtained, maintained, and f a i r l y disclosed i n reports. Because o f i n h e r e n t l i m i t a t i o n s i n any system o f i n t e r n a l accounting and adm i n i s t r a t i v e c o n t r o l s used i n a d m i n i s t e r i n g f e d e r a l f i n a n c i a l a s s i s t a n c e programs, e r r o r s or i r r e g u l a r i t i e s may nevertheless occur and not be detected. Also, p r o j e c t i o n o f any evaluation o f the systems t o f u t u r e periods i s subject t o the r i s k t h a t procedures may become inadequate because o f changes i n conditions or t h a t the degree o f compliance w i t h the procedures may d e t e r i o r a t e . 26 N . State Street H a r t , M i c h i g a n 49420 616-873-2111 F A X 616-873-5836 27 906 E . L u d i n g t o n A v e n u e L u d i n g t o n , M i c h i g a n 49431 616-845-6251 F A X 616-845-1028 �MERSKIN & MERSKIN, P.C. Single Audit Act Page 2 Our study and evaluation was more l i m i t e d than would be necessary t o express an opinion on the i n t e r n a l c o n t r o l systems used i n a d m i n i s t e r i n g the federal f i n a n c i a l assistance programs of West Shore Community College. Accordingly, we do not express an o p i n i o n on the i n t e r n a l c o n t r o l systems used i n a d m i n i s t e r i n g t h e federal f i n a n c i a l assistance programs o f West Shore Community College. Further, we do not express an opinion on the i n t e r n a l c o n t r o l systems used i n administering the f e d e r a l f i n a n c i a l assistance programs of the College. This r e p o r t does not a f f e c t our r e p o r t s on the f i n a n c i a l statements and on the College's compliance w i t h laws and r e g u l a t i o n s dated August 9, 1990. This r e p o r t i s intended s o l e l y f o r the use o f West Shore Community College, the cognizant agency and other Federal agencies and should not be used f o r any other purpose. This r e s t r i c t i o n i s n o t i n t e n d e d t o l i m i t t h e d i s t r i b u t i o n o f t h i s r e p o r t , which i s a matter of p u b l i c record. MERSKIN'& MERSKIN, 28 P.C. �M E R S K I N & M E R S K I N , P.C. West Shore Community College Federal Programs Schedule of Active Awards and Expenditures F i s c a l Year Ended June 30. 1990 Grant Expenditure Project Code Amount of Award JT&R - BIDI JT&R - BIDI JTPA - BIDI - W Central . JTPA - BIDI - W Central . JTRIF Competitive Train JTRIF Competitive Train JTPA Northwest Annual I n t e r e s t Grant FiveCAP CDA Project FY 1989 FY 1990 3759/2011033 3850/2011043 FY 1989 FY 1990 FY 1987-1988 5-5-00699-0 FY 1990 107,800.00 113,060.00 20,000.00 20,000.00 63,758.00 149,994.00 222.09 14,873.00 8,355.32 18,833.05 78,163.02 3,750.00 18,198.90 35,720.00 23,136.00 222.09 14,873.00 8,355.32 Vocational Education: Special Needs Special Needs Single Parent Single Parent Sex Equity Local Administration Local Administration Program Improvement A n c i l l a r y Post Sec. 3L18/8826 3L10/9026 3L39/1428 3L30/4029 3L40/2029 3N28/8528 3N29/8558 3P10/6729 3R19/6704 18,750.00 18,823.00 22,116.00 22,508.00 1,804.00 16,500.00 16,500.00 50,451.00 25,000.00 (1,950.00) 11,099.93 (28.77) 22,116.44 1,554.25 485.00 14,500.00 50,451.00 19,139.05 Grant T i t l e Total $ 690,514.41 29 $ 318,618.28 �M E R S K I N & M E R S K I N , P.C. West Shore Community College Foundation 30 �Merskin & Merskin, P.C. Certified Public Accountants August 9, 1990 Board o f D i r e c t o r s West Shore Community College Foundation S c o t t v i l l e , Michigan 49454 We have a u d i t e d t h e balance sheet as o f June 30, 1990 and 1989 o f West Shore Community College Foundation, and the r e l a t e d statements of revenues, expenditures and changes i n fund balances f o r the years then ended. These f i n a n c i a l statements are the r e s p o n s i b i l i t y o f the College's management. Our respons i b i l i t y i s t o express an opinion on these general purpose f i n a n c i a l statements based on our a u d i t . We conducted our audit i n accordance w i t h generally accepted a u d i t i n g standards. Those standards require t h a t we plan and perform the a u d i t t o obtain reasonable assurance about whether t h e general purpose f i n a n c i a l statements are f r e e o f m a t e r i a l misstatement. An audit includes examining, on a t e s t basis, evidence supporting the amounts and disclosures i n the general purpose f i n a n c i a l s t a t e ments. An a u d i t also includes assessing the accounting p r i n c i p l e s used and s i g n i f i c a n t estimates made by management, as w e l l as evaluating the o v e r a l l f i n a n c i a l statement presentation. We believe t h a t our a u d i t provides a reasonable basis f o r our opinion. In our opinion, the f i n a n c i a l statements r e f e r r e d t o above present f a i r l y , i n a l l m a t e r i a l respects, the f i n a n c i a l p o s i t i o n o f West Shore Community College Foundat i o n as o f June 30, 1990 and 1989, f o r the years then ended i n conformity w i t h g e n e r a l l y accepted accounting p r i n c i p l e s . 26 N . State Street H a r t , M i c h i g a n 49420 616-873-2111 F A X 616-873-5836 31 906 E . L u d i n g t o n A v e n u e L u d i n g t o n , M i c h i g a n 49431 616-845-6251 F A X 616-845-1028 �M E R S K I N & M E R S K I N , P.C. West Shore Community College Foundation Comparative Balance Sheets June 30. 1990 and 1989 June 30, 1990 1989 Assets Cash and Temporary Investments Accrued I n t e r e s t Receivable $ 214,784.19 465.29 $ 215,249.48 T o t a l Assets $ 200,795.24 637.23 $ 201,432.47 L i a b i l i t i e s and Fund Balance Liabilities Accounts Payable Deferred Revenue - C u l t u r a l Events Total L i a b i l i t i e s $ Fund Balance Restricted Unrestricted T o t a l Fund Balance $ - 1,052.50 1,052.50 $ $ 67.92 250.00 317.92 $ 69,000.00 145,196.98 $ 214,196.98 $ 215,249.48 T o t a l L i a b i l i t i e s and Fund Balance See Notes t o the Financial Statements. 32 61 ,000.00 140 ,114.55 $ 201 ,114.55 $ 201 ,432.47 $ �M E R S K I N & M E R S K I N , P.C. West Shore Community College Foundation Statements of Revenues. Expenditures and Changes i n Fund Balance F i s c a l Years Ended June 30, 1990 and 1989 June 30 1989 1990 Revenues Donations I n t e r e s t Income - Investments $ Restricted Fund Balance - June 30, 1989 Add: Excess Revenues $ Fund Balance - June 30, 1990 Add: Excess Revenues $ Fund Balance - June 30, 1990 $ $ 69,803.21 2,139.63 44,487.94 37,291.59 630.00 $ 3,227.89 42,104.63 14,288.98 84,549.16 $ 59,621.50 $ Excess Revenues (Expenditures) 97,631.59 $ T o t a l Expenditures 54,517.17 15,286.04 $ Expenditures M a t e r i a l and Supplies Special Programs Scholarships Membership Dues $ $ T o t a l Revenues 81,743.22 15,888.37 13,082.43 $ 10,181.71 Unrestricted Total $ 129,932.84 10,181.71 $ 190,932.84 61,000.00 8,000.00 $ 140,114.55 5,082.43 $ 201,114.55 69^000.00 $ 145,196.98 $ 214,196.98 61,000.00 See Notes t o Financial Statements. 33 10,181.71 13,082.43 �M E R S K I N & M E R S K I N , P.C. West Shore Community College Foundation Notes t o Financial Statements Entity The West Shore Community College Foundation was e s t a b l i s h e d i n 1971 f o r the purpose o f : 1. Securing g i f t s or loans of property, works o f a r t , h i s t o r i c a l papers, e t c . 2. Fund r a i s i n g by means of loan, g i f t s , grant and bequest f o r a broad v a r i e t y of purposes, i n c l u d i n g i n s t r u c t i o n and research, establishment of endowments, scholarships, f e l l o w s h i p s , professorships, academic chairs, c u l t u r a l events and f o r b u i l d i n g s , equipment and other f a c i l i t y of a l l kinds. 3. To act i n the capacity o f a f i d u c i a r y or t r u s t e e i n c a r r y i n g out these purposes and objectives. The College i s the sole b e n e f i c i a r y o f any donations t o , or funds raised by, the Foundation. Note A - Accounting P o l i c i e s : The income and expenses of the West Shore Community College Foundation are accounted f o r by the accrual method of accounting. 34 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Business Office Description An account of the resource Audit reports, budget documents Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource AuditReportFYendedJune301990and1989.pdf Audit Report https://wsccarchives.org/files/original/3f9f24137fbc1e15fac0886038d0897c.pdf 9ab7ad5b87600438f6756e1e811c7a59 PDF Text Text AUDIT REPORT WEST SHORE COMMUNITY COLLEGE J u l y 1, 1972 t h r o u g h J u n e 30, 1974 ALBERT LEE C P . A . Auditor General �AUDIT REPORT » WEST SHORE COMMUNITY COLLEGE J u l y 1, 1972 t h r o u g h J u n e 30, 1974 OFFICE of the AUDITOR G E N E R A L ALBERT LEE C P . A . Auditor General �TABLE OF CONTENTS Page REPORT OF EXAMINATION C o n s t r u c t i o n Fund 2 G e n e r a l Fund 5 Financial Aid 7 Purchasing 12 C a s h and C a s h P r o c e d u r e s 14 T i m e k e e p i n g and P a y r o l l 17 Accounting System 19 T r a v e l Expenses 20 Auto Shop ' 21 Space U t i l i z a t i o n 24 Faculty Utilization 26 Bond I n d e n t u r e s 26 Equipment 27 I n s u r a n c e and Bonding 27 Board M i n u t e s 27 EXHIBITS A - B a l a n c e S h e e t - G e n e r a l Fund 29 B - S t a t e m e n t of Changes i n Fund E q u i t y - G e n e r a l Fund 30 C - S t a t e m e n t of Fund - G e n e r a l Fund 31 Activities D - E d u c a t i o n a l A c t i v i t y Cost Center E x p e n d i t u r e s - G e n e r a l Fund 33 �EXHIBITS con't. E - Supportive Function Cost Center E x p e n d i t u r e s - G e n e r a l Fund E - l - Special Project G e n e r a l Fund Expenditures - Comments - G e n e r a l Fund F - Auxiliary Enterprises General Fund - S t a t e m e n t o f Revenue and E x p e n d i t u r e s G - B a l a n c e S h e e t - C o n s t r u c t i o n Fund of December 19, 1969 H - S t a t e m e n t o f Changes i n Fund E q u i t y - C o n s t r u c t i o n Fund of December 19, 1969 I - S t a t e m e n t o f Fund A c t i v i t i e s C o n s t r u c t i o n Fund o f December 19, 1969 Comments - C o n s t r u c t i o n Funds J - B a l a n c e S h e e t s - Debt Funds Retirement K - S t a t e m e n t of Fund A c t i v i t i e s R e t i r e m e n t Funds Schedule of Bonded L - Balance Indebtedness Sheets - R e s t r i c t e d M - S t a t e m e n t o f Fund A c t i v i t i e s R e s t r i c t e d Funds Comments - R e s t r i c t e d DESCRIPTION OF AGENCY SCOPE OF AUDIT - Debt Funds Funds - �STATE OF MICHIGAN OFFICE OF ALBERT LEE, CP.A. AUDITOR GENERAL Franklin C. Pinkelman, C. P. A. Deputy LANSING March 1 3 , 1975 Board o f T r u s t e e s West S h o r e Community S c o t t v i l l e , Michigan College Gentlemen: Presented for herewith the period J u l y 1, 1972 t h r o u g h J u n e 30, 1974. i n accordance with accordingly Our i s o u r r e p o r t on t h e a u d i t o f West S h o r e Community g e n e r a l l y accepted included such other g o v e r n m e n t a l a u d i t i n g s t a n d a r d s , and a u d i t i n g p r o c e d u r e s a s were t i v e a n a l y s e s , a p p r a i s a l s and recommendations. lic Our e x a m i n a t i o n was made necessary. a u d i t s a r e d i r e c t e d t o p r o v i d e management and t h e L e g i s l a t u r e w i t h review on t h e f i n a n c i a l accounting relating tive, Where p o s s i b l e , we b a s e d o u r I n a d d i t i o n , we a s s e m b l e d data t o p e r f o r m a n c e t o d e t e r m i n e t h a t programs w e r e o p e r a t e d i n a n e f f e c - this We r e q u e s t and e c o n o m i c a l manner. D e t a i l s regarding our examination letter. t h a t you f u r n i s h o u r o f f i c e to t h e B o a r d o f T r u s t e e s The courtesy and staff on t h i s a u d i t and c o o p e r a t i o n with a copy o f your s t a f f ' s e x t e n d e d t o o u r a u d i t o r s by t h e a d m i n i s t r a t o r s i s appreciated. yours, ALBERT L E E , C P . A . Auditor General Th* C>mi Lake Stat* response report. Very t r u l y MICHIGAN objec- s t a t e m e n t s c e r t i f i e d b y a n i n d e p e n d e n t c e r t i f i e d pub- f i r m engaged by t h e c o l l e g e . efficient, follow College �REPORT OF EXAMINATION The f o l l o w i n g Construction I. comments and recommendations r e s u l t from o u r e x a m i n a t i o n : Fund S e c t i o n 7 o f t h e 1973-74 ( a n d t h e two p r e v i o u s appropriations a c t s t a t e s , "...A c o n t r a c t years) community college s h a l l n o t be l e t f o r c o n s t r u c t i o n of any s e l f - l i q u i d a t i n g p r o j e c t a t a community o r j u n i o r c o l l e g e w i t h o u t p r i o r a p p r o v a l t h e r e f o r by t h e l e g i s l a t u r e . " clear i n that a l l p r o j e c t s financed L e g i s l a t i v e intent i s quite from n o n - s t a t e f u n d s r e c e i v e p r i o r l e g i s l a t i v e approval before s t a r t i n g construction. T h i s i n t e n t i s r e i t e r a t e d i n t h e March 28, 1974 l e t t e r C a p i t a l O u t l a y Subcommittee ment." This l e t t e r (JCOS) r e g a r d i n g from t h e J o i n t t h e "Use and F i n a n c i n g s t a t e s , "The u s e and f i n a n c i n g State- s t a t e m e n t s . . . s h a l l be submitted to t h e J o i n t C a p i t a l O u t l a y Subcommittee f o r a r e v i e w and i n f o r mational hearing. authorized A l l n o n - s t a t e funded p r o j e c t s w i l l be r e c o g n i z e d by t h e L e g i s l a t u r e t h r o u g h t h e p a s s a g e o f a c o n c u r r e n t which i s i n i t i a l l y compliance of b i d w i t h t e n t a t i v e l y awarded a c o n t r a c t s p e c i f i c a t i o n s ) to construct heavy equipment program. from n o n - s t a t e s o u r c e s . a building (pending to house i t s The c o l l e g e h a s a l s o s p e n t a p p r o x i m a t e l y on l a n d p u r c h a s e s and s i t e p r e p a r a t i o n . Financing resolution, a p p r o v e d by t h e JCOS." On August 26, 1974, t h e c o l l e g e to c o n s t r u c t and T h i s p r o j e c t i s t o be The c o l l e g e h a s n o t r e c e i v e d S t a t e m e n t s " t o t h e JCOS. 2 financed legislative t h i s b u i l d i n g nor has i t submitted the required $1,100 approval "Use and �We recommend t h a t t h e c o l l e g e comply w i t h a c t s and the g u i d e l i n e s of the n e c e s s a r y approval "Use and conditions of t h e appropriations the J o i n t C a p i t a l O u t l a y Subcommittee by Financing S t a t e m e n t s " and obtaining filing legislative f o r a l l b u i l d i n g c o n s t r u c t i o n p r o j e c t s p r i o r to s t a r t i n g construc- tion. We were s u b s e q u e n t l y i n f o r m e d t h a t a p p r o v a l h a s been o b t a i n e d and that the statements h a v e been s u b m i t t e d . 2. West Shore Community C o l l e g e In f i s c a l y e a r s 1971-72 and g e n e r a l fund $30,899.19 and r e p a i d t h e s e amounts by This s i t u a t i o n has now has experienced $29,793.59, r e s p e c t i v e l y . paying expenditures reversed the i n t e r i m f i n a n c i n g n e c e s s a r y itself. The of to a c c u m u l a t e e x p e n d i t u r e s The fund fund. college general are fund to p r o v i d e that a l l a l s o recommend t h a t the we the interim expenditures general fund be promptly r e i m b u r s e d upon r e c e i p t of c o n s t r u c t i o n g r a n t m o n i e s . were s u b s e q u e n t l y i n f o r m e d t h a t t h e c o l l e g e h a s mendation. 3 of received. i n t o the p r o p e r f u n d , f i n a n c i n g f o r t h e p r o j e c t to the c o n s t r u c t i o n fund and We the t h e c o n s t r u c t i o n fund l a c k s construction grants directly general past. c o l l e g e i s i n the p r o c e s s recommend t h a t t h e c o l l e g e t r a n s f e r amounts n e c e s s a r y be p a i d from the c o n s t r u c t i o n f u n d . The the c o n s t r u c t i o n f o r the p r o j e c t . finance construction costs u n t i l I n order i n the 1972-73, t h e c o n s t r u c t i o n fund advanced c o n s t r u c t i n g a h e a v y equipment b u i l d i n g , and will cash d i f f i c u l t i e s complied w i t h this We recom- �3. The college maintains a building by t h e c o l l e g e ) a s recommended by Colleges. Our within fund do for the the was By allocating and separate cost values recommend t h a t fund fund. expenditure accounts segregated d e t a i l The capital outlay Community information account, to s e v e r a l p r o j e c t s . information f o r e a c h completed p r o j e c t would r e s u l t . the t i m e of "New This f i n a l a c c o u n t i n g of c a p i t a l the p u b l i c a c c o u n t i n g f i r m outlay engaged college. d e t a i l cost the e x p e n d i t u r e a c c o u n t s be i n f o r m a t i o n by p r o j e c t s be c o l l e g e has p r o j e c t and appropriately revised to r e f l e c t that a l l expenditures for allocated. We necessary capital were informed t h a t the e s t a b l i s h e d a c a p i t a l p o s i t i o n fund to a c c o u n t for complied. c o l l e g e has funds i n v e s t e d not in physical properties. Community C o l l e g e s I n order f o r the be construction c h a r g e s to a p r o j e c t , c o s t c o n t r o l would r e d u c e a u d i t We capital that p r o v i d e the n e c e s s a r y a l l appropriate the The (titled charged f o r expenditures r e l a t i n g by 4. t h i s fund d i s c l o s e d i n f o r m a t i o n would f a c i l i t a t e p r o j e c t s and outlay not s i t e fund t h e A c c o u n t i n g Manual f o r P u b l i c i n d i v i d u a l p r o j e c t s i n the Buildings," t y p e of r e v i e w of and requires college A c c o u n t i n g Manual f o r t h a t s u c h a fund be to a c c u r a t e l y a s s e t s from a l l s o u r c e s , e s t a b l i s h e d as required The by we established. r e f l e c t i t s t o t a l investment recommend t h a t a c a p i t a l 4 in position t h e A c c o u n t i n g Manual f o r P u b l i c Colleges. Public fund Community �3. The college maintains a building by t h e c o l l e g e ) a s recommended by Colleges. Our within fund do for the the was By a l l o c a t i n g separate t y p e of cost values recommend t h a t the segregated d e t a i l The capital outlay information account, the t i m e of "New to s e v e r a l p r o j e c t s . information f o r e a c h completed p r o j e c t would r e s u l t . This f i n a l a c c o u n t i n g of c a p i t a l the p u b l i c a c c o u n t i n g f i r m e x p e n d i t u r e a c c o u n t s be i n f o r m a t i o n by p r o j e c t s be c o l l e g e has outlay engaged p r o j e c t and appropriately revised to r e f l e c t that a l l expenditures for allocated. We necessary capital were informed t h a t the e s t a b l i s h e d a c a p i t a l p o s i t i o n fund to a c c o u n t for complied. c o l l e g e has funds i n v e s t e d not in physical properties. Community C o l l e g e s I n order f o r the be fund. Community college. d e t a i l cost capital fund accounts c h a r g e s to a p r o j e c t , c o s t c o n t r o l would r e d u c e a u d i t We construction that expenditure p r o v i d e the n e c e s s a r y a l l appropriate the The (titled charged f o r expenditures r e l a t i n g by 4. t h i s fund d i s c l o s e d i n f o r m a t i o n would f a c i l i t a t e p r o j e c t s and outlay not s i t e fund t h e A c c o u n t i n g Manual f o r P u b l i c i n d i v i d u a l p r o j e c t s i n the Buildings," and r e v i e w of and requires college A c c o u n t i n g Manual f o r t h a t s u c h a fund be to a c c u r a t e l y a s s e t s from a l l s o u r c e s , e s t a b l i s h e d as required The by we Public established. r e f l e c t i t s t o t a l investment in recommend t h a t a c a p i t a l p o s i t i o n t h e A c c o u n t i n g Manual f o r P u b l i c Colleges. 4 fund Community �G e n e r a l Fund 5. The o f f i c i a l refund p o l i c y as stated t u i t i o n refunds i n the college catalog provides f o r i n d e c l i n i n g percentages through the f i r s t four days of classes. Our r e v i e w o f t h e 66 r e f u n d s issued f o r the f a l l q u a r t e r o f 1974 r e v e a l e d t h a t 12 w e r e made i n amounts g r e a t e r t h a n a l l o w e d by c o l l e g e p o l i c y . 12 r e s u l t e d i n e x c e s s r e f u n d s o f $206. We recommend t h a t stated 6. These t h e c o l l e g e comply w i t h t h e o f f i c i a l refund p o l i c y as i n the catalog. T u i t i o n r e c e i v e d f o r t h e summer q u a r t e r , w h i c h o v e r l a p s two f i s c a l y e a r s , i s recorded i n t h e f i s c a l y e a r t h e money i s r e c e i v e d . w i t h t h e summer q u a r t e r a r e r e c o r d e d The summer q u a r t e r i s c o m p r i s e d y e a r and t h e r e m a i n i n g received during Expenditures associated i n the f i s c a l year incurred. o f e i g h t w e e k s ; two weeks a r e i n one f i s c a l s i x i n the succeeding f i s c a l year. t h e two-week p o r t i o n o f t h e summer session. The A m e r i c a n I n s t i t u t e o f C e r t i f i e d P u b l i c A c c o u n t a n t s for c o l l e g e s and u n i v e r s i t i e s s t a t e s , Tuition i s i n i t s audit guide " R e v e n u e s and e x p e n d i t u r e s o f a n a c a d e m i c term, s u c h a s a summer s e s s i o n , w h i c h i s c o n d u c t e d over a fiscal y e a r end, s h o u l d be r e p o r t e d t o t a l l y w i t h i n t h e f i s c a l y e a r i n w h i c h t h e program i s p r e d o m i n a n t l y We recommend t h a t conducted." the c o l l e g e r e c o r d revenue and e x p e n d i t u r e s f o r t h e summer quarter i n the f i s c a l year i n which the quarter i s predominantly 5 conducted. �7. Our review disclosed the f o l l o w i n g items which s e p a r a t e r e v e n u e and e x p e n s e a. s h o u l d be r e f l e c t e d items but which were r e f l e c t e d S p e c i a l fees f o r courses i n bowling, g o l f and c o v e r t h e c o s t of f a c i l i t i e s u s e d to c o n d u c t accounted and f o r i n a " l i a b i l i t y " account. as as follows: skiing are assessed t h e s e c o u r s e s and are Both the c o l l e c t i o n of t h e e x p e n d i t u r e o f them a r e r e c o r d e d i n t h i s a c c o u n t . to fees These fees amounted to $2,081 f o r f i s c a l y e a r 1973-74. b. Welding f e e s a r e r e c o r d e d a s an e x p e n d i t u r e c r e d i t s u p p l i e s account. to t h e w e l d i n g T h e s e f e e s amounted to $3,857 f o r f i s c a l year 1973-74. c. A l l transactions relating in t h e a u t o shop r e v e n u e To p r o p e r l y r e f l e c t golf, to t h e o p e r a t i o n of t h e a u t o shop a r e r e c o r d e d account. r e v e n u e and e x p e n d i t u r e s , we 8. The bowling, s k i i n g and w e l d i n g f e e s , a s w e l l a s f e e s c o l l e c t e d a t t h e a u t o be r e c o r d e d a s r e v e n u e and s o r e f l e c t e d We recommend t h a t were informed shop, on t h e c o l l e g e f i n a n c i a l s t a t e m e n t s . t h a t t h i s recommendation h a s been c o m p l i e d w i t h . c o l l e g e r e c e i v e s g i f t s from i n d i v i d u a l s and p r i v a t e b u s i n e s s and receipts entitling t h e donors to Michigan income t a x c r e d i t s . t i o n o f d o n a t i o n s r e c e i v e d and r e c e i p t s i s s u e d Our issues examina- f o r f i s c a l y e a r s 1972-73 and 1973-74 r e v e a l e d : a. We noted to employees of t h e c o l l e g e f o r s e r v i c e s p e r f o r m e d expenses f o u r i n s t a n c e s where t h e c o l l e g e i s s u e d f o r w h i c h no reimbursement was accepted. r e c o r d e d by t h e c o l l e g e a s d o n a t i o n s n o r was account charged. 6 tax c r e d i t and receipts for travel T h e s e were n e i t h e r the a p p r o p r i a t e expense �b. A t a x c r e d i t r e c e i p t was i s s u e d f o r a t u i t i o n payment f o r a The to t h e payment was credited a c o n t r i b u t i o n and We does n o t t u i t i o n revenue account. T h i s i s not q u a l i f y f o r a M i c h i g a n income t a x c r e d i t . recommend t h a t t h e c o l l e g e p r o p e r l y tax c r e d i t r e c e i p t s o n l y seminar. record d o n a t i o n s r e c e i v e d and for those c o n t r i b u t i o n s issue q u a l i f y i n g f o r such tax credits. Financial 9. The Aid c o l l e g e p a r t i c i p a t e s i n the N a t i o n a l Study, and monies. a. Educational Our To be students school or College age only these i n s t i t u t i o n of h i g h e r programs, f e d e r a l regulations e d u c a t i o n must admit a s regular p e r s o n s h a v i n g a c e r t i f i c a t e of g r a d u a t i o n from a the r e c o g n i z e d secondary equivalent. admission p o l i c y allows or o l d e r , who federal programs d i s c l o s e d : to p a r t i c i p a t e i n t h e s e s p e c i f y t h a t an Work O p p o r t u n i t y G r a n t programs w h i c h a r e funded by r e v i e w of eligible D i r e c t Student Loan, C o l l e g e non-high s c h o o l d e s i r e to p r o f i t g r a d u a t e s , 18 y e a r s from c o l l e g e i n s t r u c t i o n t o of be admitted. We recommend t h a t t h e c o l l e g e r e s o l v e t h e a d m i s s i o n r e q u i r e m e n t with f e d e r a l government r e g u l a t i o n s to p a r t i c i p a t e i n t h e s e b. Federal regulations have n o t a student to i n s u r e the c o l l e g e ' s eligibility f e d e r a l f i n a n c i a l a i d programs. p r o h i b i t a w a r d i n g f i n a n c i a l a i d to s t u d e n t s been a c c e p t e d f o r e n r o l l m e n t . to be conflict attending These r e g u l a t i o n s a l s o c o l l e g e on a f u l l - t i m e b a s i s . 7 As who require stated in �the f i n a n c i a l hours a i d award l e t t e r , a term. financial full time i s determined t o be 12 We s e l e c t e d a random sample o f 25 s t u d e n t s credit receiving a i d and n o t e d : ( 1 ) Two s t u d e n t s w e r e awarded f i n a n c i a l enrollment. a i d before being accepted f o r Thus, a s t u d e n t a c c e p t e d f o r enrollment c o u l d be d e n i e d f i n a n c i a l a i d w h i l e a s t u d e n t who may n o t e n r o l l h a s b e e n awarded financial aid. (2) E l e v e n s t u d e n t s reduced their the f i n a n c i a l a i d o f f i c e . credit The f i n a n c i a l student's full-time status after is It t h e f i r s t week o f c l a s s e s . and r e c e i v e f i n a n c i a l credit hours We recommend No r e v i e w i s made a f t e r period. l e s s t h a n 12 c r e d i t i f he e n r o l l s f o r 12 t h a t t h e c o l l e g e comply w i t h f e d e r a l r e g u l a t i o n s g o v e r n i n g fund a c c o u n t s sources f o r f i n a n c i a l Grant, a i d programs. f o r s c h o l a r s h i p and l o a n m o n i e s p r o v i d e d by R e s t r i c t e d m o n i e s r e c e i v e d from a i d a r e accounted These i n c l u d e the N a t i o n a l D i r e c t Education term this o r more. t h e c o l l e g e and p r i v a t e d o n o r s . Opportunity reviews a t h e "drop and a d d " p e r i o d , w h i c h a i d the next the o p e r a t i o n of t h e s e f i n a n c i a l restricted t h e knowledge o f aid office i s p o s s i b l e f o r a s t u d e n t t o f i n i s h a term w i t h hours The load without f o r i n the college general Student Loan, Supplemental B a s i c Educational Opportunity programs. 8 federal Grant, fund. Educational and Law E n f o r c e m e n t �The A c c o u n t i n g Manual f o r P u b l i c Community C o l l e g e s restricted f o r s p e c i f i c p u r p o s e s or p r o j e c t s a r e t o be the r e s t r i c t e d restricted fund. fund was The restricted and t h a t monies accounted f o r i n a i d programs i n the c o l l e g e p u b l i c the accounting letter. recommend t h a t t h e c o l l e g e comply w i t h Community C o l l e g e s We accounting for f i n a n c i a l a l s o recommended by f i r m i n i t s management We provides t h e A c c o u n t i n g Manual f o r Public a c c o u n t f o r f e d e r a l f i n a n c i a l a i d programs i n the fund. were s u b s e q u e n t l y i n f o r m e d t h a t t h e c o l l e g e has complied w i t h this recommendation. 11. College financial s t a t e m e n t s do not r e f l e c t f e d e r a l funds, r e c e i v e d awarded f o r f i n a n c i a l a i d , a s r e v e n u e and received $23,788 f o r E d u c a t i o n a l Opportunity grants The tions We 12. i n f i s c a l year and student Educational s t a t e s t h a t governmental aid) are t o be included appropria- accounting for f i n a n c i a l complied w i t h the guide, i n revenue. generally accepted account for f e d e r a l grants were informed t h a t the c o l l e g e has I n f i s c a l year college P u b l i c Accountants i n i t s audit recommend t h a t t h e c o l l e g e comply w i t h properly Basic The 1973-74. Universities," ( i n c l u d i n g those for p r a c t i c e s and We O p p o r t u n i t y and A m e r i c a n I n s t i t u t e of C e r t i f i e d "Audit of C o l l e g e s expense items. and aid. recommendation. 1974-75, t h e c o l l e g e r e c e i v e d a v e r b a l p r o m i s e from a donor t h a t he would c o n t r i b u t e $5,000 f o r a s c h o l a r s h i p . 9 The college does �not have w r i t t e n documentation c o n c e r n i n g the s h i p o r when payment from t h e donor i s to be If no funds a r e r e c e i v e d , t h e c o l l e g e w i l l be scholarship from a l t e r n a t e s o u r c e s . distributed to We For the c o l l e g e donors' s c h o l a r s h i p obtain the forced to s u b s i d i z e term of 1974, the $1,263 was conditions and payment t e r m s . We concerning further recommend o b t a i n e d p r i o r to d i s t r i b u t i n g students. college Corrections scholarships c o n d u c t s c l a s s e s f o r i n m a t e s a t Camp S a u b l e , a Department facility, a s a community s e r v i c e . g r a n t e d to i n m a t e s o f statements as f r i n g e b e n e f i t t h i s program a r e shown on expenditures, "remission of A m e r i c a n I n s t i t u t e of C e r t i f i e d P u b l i c A c c o u n t a n t s a u d i t center. u n i v e r s i t i e s s t a t e s that only t u i t i o n a p p l i c a b l e s t a f f and We a l s o noted t h a t We recommend t h a t t h e i r f a m i l i e s i s to be t h e Board of T r u s t e e s t h e Board of T r u s t e e s program, i f i t i s to be the f i n a n c i a l t u i t i o n , " under The college of determined that t u i t i o n Board of T r u s t e e s c o l l e g e s and cost We the t a k e n by scholar- received. w r i t t e n documentation t h a t d o c u m e n t a t i o n f o r f u t u r e g i f t s be The of students. recommend t h a t f u n d s to fall conditions c o n t i n u e d , and has not guide to for courses c h a r g e d to t h i s account. a p p r o v e d t h i s program. approve the o p e r a t i o n t h a t e x p e n d i t u r e s be of this properly recorded. We w e r e s u b s e q u e n t l y i n f o r m e d t h a t e x p e n d i t u r e s a r e now 10 properly recorded. �14. I n our r e v i e w o f f i n a n c i a l a i d , we n o t e d t h a t committee does n o t f o r m a l l y the student f i n a n c i a l a i d a p p r o v e s t u d e n t a i d awarded. We c o u l d n o t l o c a t e any f o r m a l m i n u t e s o f committee m e e t i n g s o r g u i d e l i n e s action t o be t a k e n by t h e committee. in i t s management l e t t e r , by governing The c o l l e g e p u b l i c a c c o u n t i n g recommended t h a t s t u d e n t a i d be f o r m a l l y firm, approved t h e committee. • We recommend t h a t g u i d e l i n e s be e s t a b l i s h e d f o r the student f i n a n c i a l a i d committee g o v e r n i n g i t s a p p r o v a l o f f i n a n c i a l a i d . We a l s o recommend that f o r m a l m i n u t e s be k e p t . 15. The s t u d e n t l o a n fund i s o p e r a t i n g r e s t r i c t i o n s on u s e o f f u n d s . a c c o u n t i n g f i r m ' s management We recommend t h a t of 16. without e s t a b l i s h e d guidelines T h i s was a l s o n o t e d i n t h e c o l l e g e public letter. t h e Board o f T r u s t e e s the student loan o r known establish guidelines f o r operation fund. The f i n a n c i a l a i d o f f i c e h a s t h e r e s p o n s i b i l i t y o f d e t e r m i n i n g each s t u d e n t ' s award and t h e d i s t r i b u t i o n o f f i n a n c i a l a i d c h e c k s a t t i m e o f registration. We r e v i e w e d r e g i s t r a t i o n p r o c e d u r e s f o r t h e f a l l and noted: a. Checks were l e f t term 1974 file b. To u n a t t e n d e d on a s e c r e t a r y ' s d e s k o r i n an u n l o c k e d cabinet. No i d e n t i f i c a t i o n was r e q u i r e d t o p i c k up t h e c h e c k s . i n s u r e a d e q u a t e i n t e r n a l c o n t r o l o v e r f i n a n c i a l a i d c h e c k s , we recommend that the business o f f i c e d i s t r i b u t e t h e c h e c k s and t h a t i d e n t i f i c a t i o n be required. S u b s e q u e n t c o m p l i a n c e w i t h t h i s recommendation was 11 indicated. �17. We n o t e d guarded. i n our r e v i e w o f l o a n f u n d s t h a t n o t e s a r e n o t p r o p e r l y s a f e Deferred t u i t i o n loan notes a r e stored emergency l o a n n o t e s a r e s t o r e d I n i n s u r e adequate stored i n a d e s k drawer and i n a f i l e cabinet. s a f e g u a r d s o v e r l o a n n o t e s , we recommend t h a t t h e y be i n the business o f f i c e We w e r e s u b s e q u e n t l y i n f o r m e d safe. t h a t the c o l l e g e h a s complied w i t h this recommendation. Purchasing 18. The c o l l e g e ' s p u r c h a s i n g p h i l o s o p h y i s t o s e e k maximum e d u c a t i o n a l v a l u e for every d o l l a r and p r o c e d u r e s a. expended. Our r e v i e w o f c o l l e g e p u r c h a s i n g p r a c t i c e s disclosed: The c o l l e g e e s t a b l i s h e d a p o l i c y r e q u i r i n g o v e r $1,500. f o r m a l b i d s on a l l i t e m s Our t e s t sample o f 45 p u r c h a s e o r d e r s d i s c l o s e d o n l y two w e r e i n e x c e s s o f t h i s amount, and t h e r e was no on hand t h a t b i d s had b e e n r e q u e s t e d f o r t h o s e p u r c h a s e s . that documentation Our e x p e n d i - t u r e a n a l y s i s a l s o showed t h a t t h e c o l l e g e p u r c h a s e d v e r y few i t e m s i n t h e $1,500-and-over p r i c e r a n g e . A l o w e r b i d l i m i t would more p u r c h a s e s t o t h e b i d r e q u i r e m e n t subject and would be more s u i t e d to the college's purchasing philosophy. b. Of t h e 45 p u r c h a s e o r d e r s r e v i e w e d , o v e r $500. c. t h r e e w e r e f o r equipment Documentation of p r i c e comparisons The S t a t e p u r c h a s i n g d i v i s i o n i s n o t u t i l i z e d cost savings. 12 items c o u l d n o t be l o c a t e d . a s a s o u r c e of p o s s i b l e �To o b t a i n t h e maximum e d u c a t i o n a l v a l u e f o r e v e r y d o l l a r expended, we recommend that to d e t e r m i n e t h e c o l l e g e r e v i e w and a n a l y z e h i s t o r i c a l d a t a on p u r c h a s e s t h e most e c o n o m i c a l dollar limits for requiring bids. a l s o recommend t h a t t h e c o l l e g e c o n s i d e r a l l a v a i l a b l e v e n d o r s We i n obtain- ing t h e b e s t p o s s i b l e p r i c e , r e g a r d l e s s of the s i z e of the order. Our review of the purchasing a. Purchase orders a r e not routed issuance. brance system disclosed: through Doing s o would f a c i l i t a t e the b u s i n e s s o f f i c e p r i o r to t h e e s t a b l i s h m e n t o f a n encum- s y s t e m and would p r o v i d e a f i l e of outstanding purchase t o be matched w i t h r e c e i v i n g r e p o r t s and i n v o i c e s p r i o r b. t o payment. Vendor i n v o i c e s a r e r e c e i v e d by t h e d e p a r t m e n t s o r d e r i n g t h e merchand i s e r a t h e r than the b u s i n e s s c. orders office. Payment was made on 7 o f 45 p u r c h a s e orders reviewed e v e n though a s i g n e d r e c e i v i n g document was n o t p r e s e n t . d. C r e d i t memos a r e m a i n t a i n e d than by t h e b u s i n e s s o f f i c e . ness o f f i c e , by d e p a r t m e n t s o r d e r i n g m e r c h a n d i s e r a t h e r By m a i n t a i n i n g c r e d i t memos i n t h e b u s i - t h e y c o u l d b e more e f f e c t i v e l y d e d u c t e d from payments due the vendor. To i n c r e a s e i n t e r n a l c o n t r o l and t o e s t a b l i s h g r e a t e r e f f i c i e n c y i n t h e p u r c h a s i n g and a c c o u n t s p a y a b l e and f u n c t i o n s , we recommend t h a t a l l p u r c h a s i n g a c c o u n t s p a y a b l e documents b e r o u t e d d i r e c t l y to the business office f o r t h e m a t c h i n g o f documents and t h a t a l l documents be p r e s e n t p r i o r t o payment. 13 �Cash and C a s h 20. Procedures We examined c a s h bank a c c o u n t balances f o r t h e 1973-74 f i s c a l y e a r and noted t h a t t h e a v e r a g e d a i l y c a s h b a l a n c e By n o t e f f i c i e n t l y u t i l i z i n g investment i d l e c a s h and c a s h f l o a t , 21. $92,000. the c o l l e g e l o s e s income. We recommend t h a t t h e c o l l e g e r e v i e w effort i n t h e bank e x c e e d e d to i n c r e a s e investment Our e x a m i n a t i o n i t s c a s h management program i n a n income by i n v e s t i n g a v a i l a b l e c a s h of c a s h procedures and i n t e r n a l c o n t r o l i n t h e b u s i n e s s o f f i c e d i s c l o s e d that cash control i s centered a u d i t , one p e r s o n bank and p o s t i n g i n one p e r s o n . was r e c e i p t i n g i n m o n i e s r e c e i v e d , p r e p a r i n g receipts report, preparing and p h y s i c a l l y the ledgers. change f u n d s and a p e t t y c a s h balances. At time of the cash t r a n s p o r t i n g deposits to the T h i s same p e r s o n i s r e s p o n s i b l e f o r two fund. I d e a l l y , r e s p o n s i b i l i t i e s s h o u l d be s e p a r a t e d c o n t r o l a l l p h a s e s of any t r a n s a c t i o n . so t h a t no one p e r s o n Even i n a s m a l l o p e r a t i o n , will some s e p a r a t i o n o f r e s p o n s i b i l i t i e s c o u l d be made, s u c h a s : a. H a v i n g a s e c r e t a r y a l s o a c t a s a c a s h i e r c o l l e c t i n g and r e c e i p t i n g a l l monies r e c e i v e d , h a n d l i n g receipts b. t h e change f u n d s and p r e p a r i n g the cash report. Having the cash r e c e i p t s r e p o r t submitted to a second person f o r v e r i f i c a t i o n and r e c o n c i l i a t i o n w i t h bank v a l i d a t e d d e p o s i t slips. We recommend t h a t t h e c o l l e g e r e v i e w and e s t a b l i s h a d e q u a t e c o n t r o l s business o f f i c e cashiering operations. 14 over �22. I n o u r r e v i e w o f l o c a t i o n s r e c e i v i n g c a s h , we n o t e d : a. D u r i n g t h e day, c a s h i s s t o r e d a t two l o c a t i o n s i n t h e b u s i n e s s (in a s a f e and a d e s k d r a w e r ) . unlocked file cabinet. was b. a r e s t o r e d i n an C o l l e g e employees and s t u d e n t s h a v e a c c e s s office. We recommend t h a t t h e c o l l e g e s t r e n g t h e n procedures checks D u r i n g o u r a u d i t , we n o t e d t h a t t h e s a f e and desk a r e l e f t unlocked. to t h e b u s i n e s s Also, blank c a s h and b l a n k i n the business o f f i c e during b u s i n e s s hours. indicated with this check storage Compliance recommendation. D u r i n g r e g i s t r a t i o n , when t h e g r e a t e s t c a s h r e c e i p t s a c t i v i t y we n o t e d t h a t t h e c o l l e g e was n o t making d e p o s i t s on a d a i l y For f a l l office r e g i s t r a t i o n 1974, we n o t e d r e c e i p t s o f o v e r stored overnight occured, basis. $15,000 b e i n g a t the c o l l e g e . We recommend t h a t t h e c o l l e g e make d e p o s i t s more f r e q u e n t l y , i f n o t d a i l y , during periods of high amount h e l d a t t h e c o l l e g e . pliance with c. this cash r e c e i p t s a c t i v i t y The c o l l e g e s u b s e q u e n t l y i n d i c a t e d com- recommendation. The b u s i n e s s o f f i c e does n o t v e r i f y s e q u e n c e on c a s h r e g i s t e r bar to reduce the cash remittances. c a s h r e g i s t e r v a l i d a t i o n number t a p e s accompanying t h e b o o k s t o r e and T h i s s h o u l d be done t o v e r i f y snack that a l l r e c e i p t s received are remitted. We recommend t h a t t h e b u s i n e s s o f f i c e v e r i f y t i o n number s e q u e n c e on c a s h r e g i s t e r and snack bar r e m i t t a n c e s . 15 the cash r e g i s t e r valida- t a p e s accompanying t h e b o o k s t o r e �d. R e c e i p t s f o r c a s h r e m i t t a n c e s a r e n o t i s s u e d by t h e b u s i n e s s o f f i c e to the bookstore, responsibility snack b a r or the auto c e n t e r . f o r m o n i e s d e p o s i t e d s h o u l d be documented. We recommend t h a t r e c e i p t s be i s s u e d business office. The c a s h r e g i s t e r f o r a l l monies r e c e i v e d by t h e We w e r e s u b s e q u e n t l y have been w r i t t e n t o a c c o m p l i s h e. informed a t the bookstore t h i s i s done on a w e e k l y We recommend t h a t t h e b o o k s t o r e r e c o n c i l i a t i o n of c a s h to tape f. t h a t new procedures this. i s not c l e a r e d d a i l y nor i s a recon- c i l i a t i o n made o f c a s h on hand t o r e g i s t e r informed The t r a n s f e r o f tape t o t a l s . We were basis. c a s h r e g i s t e r be c l e a r e d d a i l y and a t o t a l s be made a t t h i s time. No r e c e i p t s a r e i s s u e d a t t h e i n s t r u c t i o n a l media c e n t e r f o r monies received. To e s t a b l i s h a d e q u a t e i n t e r n a l c o n t r o l , we recommend t h e i n s t r u c t i o n a l media c e n t e r be a s s i g n e d prenumbered r e c e i p t s t o be u s e d f o r t h e c o l l e c t i o n o f r e c e i p t s from s i g n s a l e s . college has 5 i n a c t i v e checking accounts The out. C o m p l i a n c e was i n d i c a t e d . t h a t h a v e n o t been c l o s e d The c a s h b a l a n c e f o r t h e s e 5 a c c o u n t s We n o t e d be totals $467. t h a t 4 c h e c k s h a v e b e e n o u t s t a n d i n g f o r o v e r two y e a r s and s h o u l d escheated. We recommend t h a t t h e c o l l e g e c l o s e t h e s e i n a c t i v e bank a c c o u n t s and escheat a l l checks which a r e o u t s t a n d i n g f o r two o r more y e a r s . 16 �24. Mail opening procedures a r e inadequate f o r v e r i f y i n g t h a t m a i l r e c e i p t s are properly and promptly recorded a t a c e n t r a l l o c a t i o n where one the a p p r o p r i a t e following procedures e x i s t a. O n l y one b. T a p e s of r e c e i p t s a r e n o t p e r s o n opens t h e endorsed during We A l l mail i s received d e l i v e r s i t unopened to for areas receiving mail: mail. p r e p a r e d and checks a r e not campus a r e n o t o f f i c e prepares t h e bank We restrictively a l s o noted t h a t checks r e s t r i c t i v e l y endorsed until deposits. recommend t h a t t h e c o l l e g e implement m a i l o p e n i n g p r o c e d u r e s w h i c h will all p e r s o n s o r t s and the m a i l opening p r o c e s s . r e c e i v e d a t some a r e a s on We deposited. offices. The the b u s i n e s s and i n s u r e c o n t r o l of c h e c k s be f u n d s r e c e i v e d by m a i l . restrictively A l s o , we recommend that e n d o r s e d when r e c e i v e d a t a l l campus a r e a s . w e r e s u b s e q u e n t l y i n f o r m e d t h a t a l l c h e c k s a r e now restrictively endorsed. T i m e k e e p i n g and 25. The Payroll c o l l e g e ' s Coordinator of P l a c e m e n t and a l e a d e r s h i p development program d u r i n g r e q u i r e d him to a t t e n d J u l y 8 t o A u g u s t 16. a p p r o v e d by participated in t h e summer of 1974. T h i s program a summer workshop i n a n o t h e r p a r t of t h e S t a t e During t h i s period, a s i f he w e r e w o r k i n g f o r the c o l l e g e . was F i n a n c i a l Aid t h e Dean of Academic and dent. 17 he from received his regular salary His p a r t i c i p a t i o n i n t h i s S t u d e n t S e r v i c e s and the program Presi- �Board p o l i c y s t a t e s t h a t l e a v e s of absence other than s a b b a t i c a l leaves may be g r a n t e d by t h e b o a r d . We recommend t h a t leaves of absence o t h e r than s a b b a t i c a l l e a v e s a p p r o v e d by t h e b o a r d a s r e q u i r e d Our Preparation and posting Ideally, r e s p o n s i b i l i t y s h o u l d be separated t h a t no one p e r s o n c a n c o n t r o l a l l p h a s e s o f any t r a n s a c t i o n . Written authorization i s not provided f o r the addition s t u d e n t s to the p a y r o l l . all of d u t i e s . t h e p a y r o l l , along w i t h the d i s t r i b u t i o n of p a y r o l l checks, i s p e r f o r m e d by one employee. so weaknesses i n control: There i s an inadequate s e p a r a t i o n of b. policy. review of the p a y r o l l process d i s c l o s e d the f o l l o w i n g internal a. by b o a r d be Written authorization o f work s t u d y s h o u l d be p r o v i d e d f o r payroll addititions. We recommend t h a t t h e c o l l e g e r e v i e w p a y r o l l p r o c e d u r e s and e s t a b l i s h adequate s e p a r a t i o n r o l l additions of d u t i e s and p r o v i d e w r i t t e n d o c u m e n t a t i o n f o r p a y - to i n s u r e adequate i n t e r n a l c o n t r o l over p a y r o l l operations. T i m e k e e p i n g i s on a n e g a t i v e b a s i s , e x c e p t f o r h o u r l y e m p l o y e e s , i n t h a t only leave basis, time i s reported. F o r t h o s e employees r e p o r t i n g on a n e g a t i v e t h e i n d i v i d u a l employee does n o t s i g n o r o t h e r w i s e c e r t i f y time worked. We recommend that b a s i s and t h a t time r e p o r t s these be r e q u i r e d r e p o r t s be s i g n e d supervisor. 18 f o r a l l employees on a p o s i t i v e by t h e employee and h i s immediate �28. I n r e v i e w i n g l e a v e r e c o r d s , we n o t e d t h a t t h e c o l l e g e was n o t m a i n t a i n i n g v a c a t i o n and s i c k l e a v e b a l a n c e s on a c u r r e n t b a s i s . A u g u s t 15, 1974 d i s c l o s e d Our r e v i e w on t h a t l e a v e r e c o r d s had n o t been u p d a t e d since April. To e n a b l e t h e c o l l e g e t o e f f e c t i v e l y c o n t r o l s i c k and v a c a t i o n l e a v e time we recommend t h a t l e a v e r e c o r d s be m a i n t a i n e d on a c u r r e n t b a s i s . were informed taining Accounting 29. We t h a t t h e c o l l e g e h a s u p d a t e d i t s l e a v e r e c o r d s and i s m a i n - them on a c u r r e n t basis. System The c o l l e g e a c c o u n t i n g s y s t e m does n o t p r o v i d e f o r encumbrances f o r p u r chase orders issued. When an i n v o i c e i s r e c e i v e d , i t i s compared t o t h e p u r c h a s e o r d e r and r e c e i v i n g r e p o r t and, i f p r o p e r , a c h e c k i s p r e p a r e d . T h i s check i s n o t dated o r s i g n e d . The c h e c k i s p o s t e d to the accounting r e c o r d s a s i f payment were made a t t h a t t i m e , t h u s c h a r g i n g t h e e x p e n s e a c c o u n t and r e d u c i n g t h e c a s h b a l a n c e by t h e amount o f t h e c h e c k . check remains pay i n the accounts payable f i l e u n t i l t h e amount due. A t t h e time o f o u r a u d i t , The funds a r e a v a i l a b l e to t h e s e c h e c k s were h e l d up to 90 d a y s . T h i s s y s t e m r e q u i r e s t h a t a s e p a r a t e "memo" a c c o u n t be m a i n t a i n e d t o reflect The the college's t r u e book c a s h b a l a n c e . c u r r e n t s y s t e m o r i g i n a t e d d u r i n g a p e r i o d o f c a s h c r i s i s and was a n attempt t o s e t a s i d e , o r encumber, f u n d s f o r known p a y a b l e s . A true encumbrance s y s t e m would encumber a t t h e t i m e a p u r c h a s e o r d e r i s w r i t t e n n o t when t h e i n v o i c e i s r e c e i v e d . 19 �We recommend t h e d i s c o n t i n u a n c e o f t h e p r e s e n t p r o c e d u r e by w h i c h to v e n d o r s a r e p r e p a r e d , p o s t e d t o a c c o u n t i n g r e c o r d s a s though but then h e l d pending the a v a i l a b i l i t y of funds. We recommend checks issued, instead t h a t a n encumbrance s y s t e m be e s t a b l i s h e d by w h i c h f u n d s a r e encumbered when a p u r c h a s e o r d e r i s w r i t t e n . Unencumbered b a l a n c e s would t h e n show funds a v a i l a b l e . Travel 30. Expenses Our e x a m i n a t i o n o f t r a v e l expense r e i m b u r s e m e n t s d i s c l o s e d the following deficiencies: a. The n a t u r e and p u r p o s e o f t h e t r i p was n o t s t a t e d on t h e t r a v e l report. A l s o , reimbursements w e r e made t o employees ment e x p e n s e s w i t h o u t p r o p e r d o c u m e n t a t i o n . and a l i s t of persons entertained documentation. for entertain- The r e a s o n f o r t h e e x p e n s e s h o u l d be r e q u i r e d No r e c e i p t s were r e q u i r e d expense f o r normal to provide proper travel expendi- tures . We recommend t h a t p r o p e r d o c u m e n t a t i o n be r e q u i r e d to support travel expenses submitted f o r reimbursement. b. The c o l l e g e expenses. i s s u e s t r a v e l advances T r a v e l advances a r e charged d i r e c t l y than e s t a b l i s h e d ment. t o employees b a s e d on e s t i m a t e d to expenses, a s a r e c e i v a b l e , w i t h no f o l l o w - u p f o r f i n a l rather settle- A l l settlements are voluntary. We recommend t h a t t r a v e l a d v a n c e s be r e c o r d e d a s r e c e i v a b l e s a t t h e time of i s s u e , w i t h p e r i o d i c subsequently informed t h a t f o l l o w - u p made f o r s e t t l e m e n t . this i s now b e i n g done. 20 We w e r e �c. We noted t r a v e l r e i m b u r s e m e n t payments made w i t h o u t r e p o r t s being We d. travel expense approved. recommend t h a t t r a v e l e x p e n s e r e p o r t s be a p p r o v e d p r i o r The u s i n g d e p a r t m e n t s a r e b i l l e d only documentation provided to payment. f o r c o l l e g e snack bar charges. i s the cash r e g i s t e r t a p e s i g n e d by The the employee. We recommend t h a t s n a c k b a r c h a r g e s be a d e q u a t e l y were informed t h a t t h i s i s now being documented. We done. Auto Shop 31. A u t o m o t i v e t e c h n i c a l s t u d e n t s a r e g i v e n e x p e r i e n c e by w o r k i n g on owned v e h i c l e s i n t h e a u t o r e p a i r ments t o m a j o r o v e r h a u l s . Our i n t h e o p e r a t i o n of t h e a u t o a. Procedures b. recommend t h a t p r o c e d u r e s viding and shop w e r e w r i t t e n i n 1970 current operating be reviewed, u p d a t e d and in followed. pro- t o s e c u r e t h e amount of r e p a i r s i n c a s e I t also contains a waiver of l i a b i l i t y against t h e c o l l e g e f o r s a t i s f a c t i o n of c o m p l e t e d r e p a i r work. i n a t i o n of 100 and procedures. form i s u s e d w h i c h c o n t a i n s a s t a t e m e n t f o r a mechanics l i e n o f nonpayment. from minor a d j u s t - shop: longer r e f l e c t A prenumbered j o b o r d e r The work r a n g e s review d i s c l o s e d the f o l l o w i n g weaknesses f o r o p e r a t i o n of t h e a u t o most c a s e s no We shop. privately^ Our job orders d i s c l o s e d the f o l l o w i n g e x c e p t i o n s : 21 students exam- �(1) Twenty-nine of j o b o r d e r s c o u l d n o t be l o c a t e d . j o b o r d e r forms The i s not accounted i n v e n t o r y of b l a n k forms completed Customers cases, c. Our i s s t o r e d i n t h e a u t o shop. The j o b o r d e r form i s u s e d a s a r e c e i p t when payment i s had n o t orders. s i g n e d t h e j o b o r d e r s i n 63 i n s t a n c e s . the j o b o r d e r s were not I n most dated. e x a m i n a t i o n o f 23 r e p a i r o r d e r s f o r p r o p e r p r i c i n g of p a r t s c l o s e d 3 i n s t a n c e s i n which retail We number f o r by t h e b u s i n e s s o f f i c e . r e c e i v e d by t h e a u t o shop f o r completed (2) The s e q u e n c e t h e customer dis- was n o t c h a r g e d t h e r e q u i r e d c o s t p l u s 10%. recommend t h a t a l l j o b o r d e r f o r m s , b o t h b l a n k and t r o l l e d and a c c o u n t e d be d a t e d and s i g n e d by f o r by the b u s i n e s s o f f i c e . the customer completed, be con- E a c h one u s e d s h o u l d a s a u t h o r i z a t i o n to do t h e work r e q u e s t e d and a s a c c e p t a n c e o f t h e terms o f t h e c o l l e g e . t h a t p a r t s u s e d be p r i c e d i n a c c o r d a n c e w i t h approved We also recommend policies. A c c o r d i n g t o c o l l e g e p r o c e d u r e s , j o b o r d e r s a r e t o be p a i d b e f o r e t h e vehicle i s released to the customer. Faculty, staff and s t u d e n t s of t h e a u t o t e c h n i c a l a r e a a r e p e r m i t t e d to t a k e t h e i r c a r s and make payment a t a l a t e r date. T h e s e r e c e i v a b l e s a r e n o t r e c o r d e d on t h e c o l l e g e books. Our review disclosed: a. The b u s i n e s s o f f i c e f i l e amounting t o $719. Our o f u n p a i d j o b o r d e r s c o n t a i n e d 20 j o b o r d e r s review of t h i s f i l e disclosed 9 job orders amounting t o $352 w h i c h had been p a i d and 5 amounting to $192 the customers c l a i m h a v e been p a i d b u t no r e c e i p t s f o r payment 22 which have �been l o c a t e d . The b u s i n e s s o f f i c e h a s a s e c o n d c o n t e s t e d f i l e o f 19 a d d i t i o n a l j o b o r d e r s amounting t o $570 f o r w h i c h t h e c u s t o m e r s c o n t e n d payment h a s been made b u t r e c e i p t s h a v e n o t been b. located. We l o c a t e d 6 c o m p l e t e d and u n p a i d j o b o r d e r s i n t h e a u t o shop. These w e r e from s t u d e n t s i n t h e a u t o t e c h n i c a l a r e a , and c o l l e c t i o n i s t h e r e s p o n s i b i l i t y of t h e i n s t r u c t o r . of The b u s i n e s s o f f i c e was n o t aware these unpaid j o b o r d e r s . We recommend t h a t p r o c e d u r e s be e s t a b l i s h e d and f o l l o w e d w h i c h w i l l a c c o u n t s r e c e i v a b l e o f t h e a u t o shop t o a minimum. hold A l l collections for c o m p l e t e d j o b o r d e r s s h o u l d be i d e n t i f i e d w i t h t h e j o b o r d e r s s o t h a t a c c u r a t e a c c o u n t s r e c e i v a b l e r e c o r d s c a n be m a i n t a i n e d i n t h e b u s i n e s s office. 33. Payments f o r j o b o r d e r s a r e r e c e i v e d a t t h e a u t o shop d u r i n g c l a s s e s when t h e b u s i n e s s o f f i c e i s c l o s e d . lished evening No change f u n d h a s b e e n estab- i n t h e a u t o shop. We recommend t h a t t h e c o l l e g e e s t a b l i s h a change f u n d i n t h e a u t o shop t o f a c i l i t a t e c o l l e c t i o n o f payments. We w e r e s u b s e q u e n t l y i n f o r m e d t h a t p r o c e d u r e s h a v e b e e n implemented t o comply w i t h recommendations 31, 32 and 33. 23 �Space 34. Utilization We r e v i e w e d t h e u s e o f a v a i l a b l e s p a c e d u r i n g t h e f a l l term of 1973. Usage was a s f o l l o w s : Type o f Room Number o f Rooms Average Hours Used P e r Week Classrooms 13 18.69 Laboratories 11 27.45 1 1.00 25 21.84 Auditorium Total 24 �The s c h o o l h a s a r e g u l a r o p e r a t i n g s c h e d u l e from 8:30 a.m. Monday t h r o u g h F r i d a y . day t o 10:00 p.m. The number o f rooms v a c a n t by hour o f t h e day and o f t h e week i s : Classrooms Hour ( 1 3 ) and A u d i t o r i u m Monday 9:30 8:30 _ 9:30 - 10:30 11:30 10:30 11:30 12:30 1:30 12:30 - 2:30 1:30 2:30 - 3:30 3:30 - 4:30 4:30 - 5:30 5:30 - 6:30 7:30 6:30 8:30 7:30 8:30 — 9:30 - - p.m. - - Tuesday Wednesday Thursday Friday 8 8 6 8 10 7 11 13 13 12 10 9 11 a.m. - 11 10 6 14 9 11 11 10 10 12 9 8 10 10 9 8 7 6 6 9 12 13 11 8 4 8 12 11 6 12 8 11 11 10 10 13 10 9 11 8 8 7 11 9 8 12 14 14 14 14 14 14 Laboratories Hour 8:30 9:30 10:30 11:30 12:30 1:30 2:30 3:30 4:30 5:30 6:30 7:30 8:30 Note: - - - Monday 9:30 10:30 11:30 12:30 1:30 2:30 3:30 4:30 5:30 6:30 7:30 8:30 9:30 The (1) 5 4 4 8 5 4 5 8 9 10 7 7 7 a.m. p.m. Tuesday Wednesday (11) Thursday 5 4 4 8 5 4 5 8 9 9 5 4 4 4 3 5 11 7 5 4 7 9 9 5 . 5 5 3 2 3 8 7 6 5 8 8 9 6 5 5 p r e c e d i n g t a b l e s do n o t i n c l u d e a room v a c a n c y for half of the hour. facilities 5 5 4 8 6 5 6 8 10 11 11 11 11 when i t was They a l s o do n o t i n c l u d e t h e u s e o f c o l l e g e f o r e x t e n s i o n c o u r s e s o f f e r e d by o t h e r Also, primary Friday institutions. usage of the a u d i t o r i u m i s not f o r scheduled 25 classes. �We recommend t h a t , i n addition u t i l i z a t i o n of p r e s e n t sidered the Faculty 35. prior facilities to t h e c o n s t r u c t i o n o f new c l a s s r o o m f a c i l i t i e s and conthat documented. Utilization high c o n d u c t s a community s e r v i c e program on campus and a t l o c a l schools. Due t o i n a d e q u a t e r e c o r d s , these we were u n a b l e t o r e v i e w f a c u l t y community s e r v i c e c o u r s e s . determine f a c u l t y contact We be t h o r o u g h l y r e v i e w e d and f u l l y e x i s t i n g and p o t e n t i a l u t i l i z a t i o n be s p e c i f i c a l l y The c o l l e g e for to p o t e n t i a l s f o r growth, the l e v e l of utilization Records were not s u f f i c i e n t to hours f o r a l l c l a s s e s . recommend t h a t t h e c o l l e g e m a i n t a i n s u f f i c i e n t records f o r community s e r v i c e c l a s s e s to f a c i l i t a t e a r e v i e w of f a c u l t y u t i l i z a t i o n . informed t h a t We w e r e t h e c o l l e g e h a s c o m p l i e d w i t h t h i s recommendation. Bond Indentures 36. The bond i n d e n t u r e s f o r b o t h t h e March 1, 1969 and September 1, 1969 bond i s s u e s s p e c i f y t h a t s e p a r a t e for t h e two bond i s s u e s . S e p a r a t e a c c o u n t s f o r t h e two f u n d s h a v e n o t been e s t a b l i s h e d by t h e c o l l e g e . ing firm separates At year-end, the c o l l e g e p u b l i c t h e two bond i s s u e s f o r f i n a n c i a l r e p o r t i n g To comply w i t h t h e c o n d i t i o n s audit f u n d s and a c c o u n t s be s e t up t o a c c o u n t of t h e bond t r u s t i n d e n t u r e s account- purposes. and t o r e d u c e t i m e o f t h e c o l l e g e p u b l i c a c c o u n t i n g f i r m , we recommend t h a t t h e college e s t a b l i s h separate f u n d s and a c c o u n t s f o r t h e two bond i s s u e s . We w e r e i n f o r m e d t h i s h a s b e e n done. 26 �Equipment 37. The c o l l e g e does n o t m a i n t a i n u p d a t e d equipment i n v e n t o r y f i s c a l y e a r 1974-75, t h e c o l l e g e and appraise i t s equipment. equipment i n v e n t o r i e d We recommend t h a t 38. f i r m to For inventory I t i s t h e i n t e n t o f t h e b o a r d t o have t h e and a p p r a i s e d annually. on a current c o n t r o l a l l equipment i t e m s on hand. and Bonding The c o l l e g e h a s e s t a b l i s h e d general fund a r e c h a r g e d . them t o t h e a p p l i c a b l e The an o u t s i d e t h e c o l l e g e m a i n t a i n equipment r e c o r d s b a s i s to e f f e c t i v e l y Insurance contracted records. c o s t of insurance cost cost centers As e x p e n s e s a r e i n c u r r e d , Included the c o l l e g e charges center. coverage i s charged to the c o s t c e n t e r p l a n t , " e v e n though n o t a l l i n s u r a n c e center. to which a l l e x p e n d i t u r e s of t h e c o s t s a r e a t t r i b u t a b l e to t h a t i n t h e amount o f i n s u r a n c e f o r employees o f a l l c o s t c e n t e r s "physical cost expense a r e bonding expenses and t h e t r e a s u r e r o f t h e Board o f Trustees. We recommend that the c o l l e g e a l l o c a t e insurance cost centers to a c c u r a t e l y reflect cost center expense to the a p p l i c a b l e expenditure data. Board M i n u t e s 39. The m i n u t e s o f t h e Board o f T r u s t e e s b a s i s and a r e s i g n e d a r e not always signed o n l y by t h e b o a r d 27 secretary. on a current �Inasmuch a s b o a r d m i n u t e s r e p r e s e n t c o l l e g e m a t t e r s , we be s i g n e d recommend t h a t the o f f i c i a l a c t i o n s of the board i n t h e Board o f T r u s t e e s by b o t h t h e b o a r d c h a i r m a n and 28 the s e c r e t a r y . official minutes �Exhibit A Balance Sheet General Bund West Shore Community C o l l e g e June 30 1974 197? Assets Bank - S t u d e n t s (See A u d i t o r ' s C e r t i f i c a t e ) - Other Taxes R e c e i v a b l e (See A u d i t o r ' s C e r t i f i c a t e ) N a t i o n a l D i r e c t Student Loans R e c e i v a b l e Due from Other Funds I n v e n t o r i e s - At Cost Prepaid Expenses Liabilities $ 15,881.81 8,097.51 19,028.17 $ 15,678.30 7,590.15 12,749.64 5,628.89 26,865.00 15,166.18 24,798.39 300.00 18,854.30 $115,765,95 Cash on Hand and i n Accounts R e c e i v a b l e Accounts R e c e i v a b l e Delinquent Property $ 77,882,76 $ 42,591.56 31,939.27 48,478.40 1,682.36 1,112.89 $ 69,901.48 33,971.43 65,349.40 29,793.59 22,810.37 2QQ.Q0 and Fund E q u i t y Liabilities Accounts Payable Accrued C o n t r a c t s Payable - I n s t r u c t o r s P a y r o l l Taxes W i t h h e l d and Accrued Due t o Other Funds Due t o Student A c t i v i t y Groups Other L i a b i l i t i e s 2,896,QQ $128,700.48 Fund E q u i t y - E x h i b i t B $200,307.93 (12,934,5$) (122.425.17) (Deficit) $115.765.95 $ 77.882.76 This statement i s as presented i n the West Shore Community College F i n a n c i a l Report. 29 �Exhibit B Statement, o f Changes i n Fund E q u i t y General Fund West Shore Community C o l l e g e Fund Balance - B e g i n n i n g o f P e r i o d (Deficit) $(122,425.17) 3 .-H 0 f i s c a l Year 1974 $( 62,348.76) Deduct 109.490.64 Net D e f i c i t ( 60.076.41) f o r Year - E x h i b i t C $( 12.934.53) $(122,425-17) Fund Balance ( D e f i c i t ) - End o f P e r i o d - E x h i b i t A T h i s statement i s as presented i n the West Shore Community C o l l e g e F i n a n c i a l Report. 30 �Exhibit C Statement o f Fund A c t i v i t i e s General Fund Page 1 West Shore Community C o l l e g e F i s c a l Year Ended June 30. 1974 1222 Reveoves Local Sources P r o p e r t y Tax Levy I n t e r e s t and P e n a l t i e s on 'Delinquent P r o p e r t y Taxes T u i t i o n - Resident - Non-Resident - Community S e r v i c e s S t u d e n t S e r v i c e Fees A c t i v i t y Admission Fees - Community - Students C h i l d Day Care Center R e n t a l o f P r o p e r t y and Leases G i f t s and Grants I n t e r e s t Earned on I n v e s t m e n t s Cost Recovery - Sponsored Programs H o s p i t a l A s s i s t a n c e Program A l l Other $ 446,448.90 $ 232.11 163,509.86 12,714.75 14,826.90 7,906.50 7,318.91 3,758.39 12,256.70 450.00 471.01 298.83 2,715.85 $ S t a t e and F e d e r a l Sources D i r e c t State A i d Aid t o Vocational Education Emergency Employment A c t R e d i s t r i b u t i o n s G r a n t s " P r o j e c t RITE - Work-Study Program - Library - Placement - N a t i o n a l D i r e c t Student Loan - Veterans - Other $ $ To/U.l Revenues 4.233.01 677,141.72 463,265.00 33,494.39 7,999.17 29,398.83 5,000.00 17,035.00 26,865.00 4,211.77 4.389.5? 691,658,68 381,205.59 1,041.45 152,973.32 20,366.00 8,518.51 7,913.30 5,958.40 2,199.08 4,016.04 5,635.93 6,101.05 1,336.81 $ 6,168.00 6.170.97 609.604.45 $ 448,971.00 44,459.90 12,837.17 10,821.00 16,000.00 9,067.00 18,035.00 $ 565.490.07 6,299.00 $1,268,800,40 Expenditures E d u c a t i o n a l A c t i v i t y Cost Centers - E x h i b i t D S u p p o r t i v e F u n c t i o n Cost Centers - E x h i b i t E Excess Revenues from O p e r a t i o n s $1.175.094.52 $ $ 685,760.48 408,402,68 $1,094,163,16 615,515.44 415.777.94 $1.031.993.38 $ 174,637.24 $ 143,801,14 $ $ 1,374.88 176,012,12 902.04) 142.899.10 Add Excess Revenues - A u x i l i a r y E n t e r p r i s e s - B o o k S t o r e 31 $ �Exhibit Statement o f Fund A c t i v i t i e s C (continued) General Fund West Shore Community C o l l e g e Page 2 F i s c a l Year Ended Jung 30, 1974 Deduct T r a n s f e r s - Debt R e t i r e m e n t Fund o f March 3 1 , 1969 - Debt R e t i r e m e n t Fund o f September 1,1969 Excess E x p e n d i t u r e s - A u x i l i a r y E n t e r p r i s e s - Snack Bar 1973 19,014.60 42,081.20 $ F.xcess Revenues ( E x p e n d i t u r e s ) f o r P e r i o d $ $ 59,232.40 137,176.20 66,521,4? j . 202,975,51 5.425.68 $ 109.490.64 6.566.91 $( 60.076.41) This statement i s as presented i n the West Shore Community College F i n a n c i a l Report. 32 �Exhibit Educational A c t i v i t y Cost Center General - D Expenditures Fund Wpst. .Shore Community College E d u c a t i n g Administration Liberal A r t s and Sc i e n c e s S a l a r y and Waae C o s t s I n s t r u c t i o n - F u l l Time - P a r t Time S e c r e t a r i a l and O f f i c e Students Directors Librarians Business and Commerce $190,717.80 28,942.17 $ 42,450.94 15,747.19 3,785.65 $223,445.62 $ 1,816.25 6 0 0- 4 . 3 8 1 r Health Sr. i pnr.es VocationalTenhnical Continuing Education Dean o f VocationalTechnical $ 7,664.68 24,272.35 $ 83,710.17 23,331.53 $ $ - $109,745.44 1,243.74 13,975.00 $ 47.155.77 15,080.01 Total Cost, C p n j p n L i b r a r y and Educational Resources Dean $ $ - J""9 Academic 1974 3,971.15 $ 15,221.19. $ 23,790.1,9 $339,623.60 92,293.24 23,071.37 14,451.21 18,795.45 8,822.53 141.18 67,475.00 15,500.00 19,000.00 6.109.79 6.109.79 $547,368.45 $ 44,883.53 $-23.11?. 33 $ $ $ 4,649.01 141.18 19,000.00 141.18 2,703.74 — - 30T 1973 $311,875.78 93,408.03 13,438.77 10,818.32 62,832.20 lo.sin.nn $502.883.1(1 Other Costs Fringe Benefits Retirement Medical L i f e Insurance R e m i s s i o n of T u i t i o n Professional Services M a i n t e n a n c e and R e p a i r I n s t r u c t i o n a l M a t e r i a l s and Supplies Placement S e r v i c e s L i n e n and U n i f o r m Subscriptions Forms and S u p p l i e s Audio V i s u a l M a t e r i a l s T r a v e l and C o n f e r e n c e s Dues Counseling Rent and R e n t a l s P r i n t i n g and D u p l i c a t i n g C a p i t a l Outlay $ 26,984.37 3,321.50 2,380.96 938.50 127.20 - $ - 521.02 286.36 814.31 65.00 - - 1,946.70 1,500.00 — 5,413.82 334.23 312.25 16.00 - 1,046.58 1,616.31 $ 11,012.65 1,302.15 760.96 56.50 - - — • 1,446.70 389.95 7,997.29 — 3,034.19 900.88 311.32 383.00 40.00 — 210.28 205.51 4,797.24 1,300.12 518.15 231.50 - 163.40 2,359.01 $ 2,986.25 578.55 297.94 96.50 293.30 49.00 88.00 3.50 245.74 - 1,226.96 245.74 2,535.00 — 958.45 -6.00 374.11 - $ 60,441.02 8,516.84 5,156.88 1,794.00 1,613.90 1,599.93 7,095.58 4,852.86 892.00 122.40 1,329.97 14,410.98 6,109.11 — 81.50 56.83 — — 5,778.28 — — — 517.98 1,462.91 107.00 — ~ 1,839.60 796.25 100.00 — 1,584.03 205.00 — 1,039.95 5,835.11 6.00 1,839.60 8,392.86 529.50 88.00 — 341.48 1,445.16 • 266.94 417.08 — 150.00 17,794.28 239.34 3,853.02 23,274.44 $ 35,827,83 $ 8.280.91 $138,399.03 $ 80.711.36 $685,780.48 — — $ 11.541.90 $ $264,864.37 $ 71.556.28 $ 54.597.44 7.441.67 . 25.489.15 $ $ 2.623.24 $138,934.59 $ 17.844.43 i n t h e West Shore Community C o l l e g e F i n a n c i a l 33 31.20 — 4].418.75 1 T h i s statement i s as presented Report. 6,181.30 779.41 575.30 72.00 2,538.21 flthpr Total $ $ 8.768.58 $ 30.558.77 $ 99.393.24 815.52 2,335.52 5,785.91 44.84 3,763.94 253.50 200.66 494.20 813.67 28,301.02 60.79 �Exhibit E Supportive Function Cost Center Expenditures General Fund West Shore Community College Student Personnel S a l a r y and Wage Costs Deans Staff S e c r e t a r i a l and Office Students Directors Student Activities Office of the President Board of Business Trustees Office 7,709.91 $ 35.2Q9.91 $ 44,592.90 JL $ 53.720.70 Spec i a l Projects Physical Exhibit E-l Plant Total Cost Centers $ $ 19,000.00 10,500.00 22,027.08 2,193.62 $ 27,500.00 18,128.36 8,174.33 3,622.59 14-667.62 Cultural Events 31,700.86 3,721.76 3,598.45 4,661.06 5,724.81 _I.494.90 22.825.1? $ 34.806.39 !_4L22!k52 3_ F i s c a l Year June 30 1974 1973 46,500.00 64,050.98 41,509.77 16,202.08 $ 61,937.31 83,359.64 34,540.67 8,667.62 44.987.64 24.466.65 $213.250.47 $212.971.89 Other Costs Fringe B e n e f i t s Retirement Group Medical Group L i f e Insurance Remission of T u i t i o n Professional Services Contracted S e r v i c e s M a t e r i a l s and Supplies General Forms Vehicle Groundskeeping Maintenance and Repair Equipment Vehic le Plant Gasoline Rentals Insurance - General Subscriptions T r a v e l and Conferences Advertising Catalogs U t i l i t i e s - Heat - Electricity Telephone Postage Expense Allowances A c t i v i t y Expenses P r i n t i n g and Duplicating Memberships and Dues Scholarships C a p i t a l Outlay Other 5,295.80 1,324.85 689.34 790.00 3,080.00 2,164.78 $ 884.76 4,577.29 1,019.89 402.31 463.00 $ 1,152.00 7,472.69 369.57 109.28 26.00 4,534.28 1,737.35 868.20 711.00 2,672.50 1,195.82 1,334.96 213.45 236.99 $ 3,327.55 696.67 310.55 144.00 -7.20 1,981.74 2,435.94 3,767.51 2,985.00 390.50 $ 5,095.45 1,520.69 1,536.76 623.00 - 1,192.00 - - $ 25,001.02 6,299.45 3,807.16 3,883.00 13,225.19 5,733.48 $ 21,891.86 5,748.26 2,866.14 1,028.50 8,084.76 16,305.79 8,040.91 213.45 7,816.63 135.50 141.43 6,014.13 - 24.388.00 $ 12.350.94 $ 18.152.68 $ 18.20 7.118.69 $ 16.046.66 13,529.34 954.03 167.07 1,035.35 175.96 10,361.00 10,361.00 317.94 9,327.62 356.89 2,733.78 11.20 111.50 9,692.33 9,69:2.33 21,341.00 21,341.00 11,727.68 11,727.68 4,777.79 4,77 7.79 2,984.04 8,458.70 6,255.67 3,505.35 10,840.34 3,248.10 970.50 7.403.96 781 .33 $ 84,31 1 .74 tlQ6.152.21 68.980.90 $ 12.360,94 S 81.362.59 ft 7.118.69 $ 60.853.05 $122^232^1 1,361.67 175.96 702.16 2,021.57 111.50 421.48 8.10 217.74 123.25 4,016.32 186.59 940.10 112.60 588.41 166.40 - 384.04 2,600.00 8,458.70 1,303.71 244.95 6,659.34 308.40 389.34 2,452.00 485.00 1,196.00 628.71 15.00 - 2,277.60 6,222-QO T h i s statement i s as presented i n the West Shore Community College F i n a n c i a l Report. 34 8.07) 12,167.67 954.03 167.07 1,035.35 - 2,183.83 891.42 2,510.58 - 3,278.95 20,036.17 360.29 12,600.22 3,244.37 7,806.53 10,637.01 22,400.86 13,843.49 3,840.54 1,800.00 6,112.63 3,313.90 3,131.50 7,171.70 6,185.54 1,423,52 $202,806.06 4,408.402.68 $415,777.94 - - �Exhibit E - l Special Project Expenditures Genera 1 Fund West Shore Community C o l l e g e F i s c a l Year Ended June 30. 1974 Placement Office Veteran Habitat Improvement Outreach $ $12,000.00 $ C h i l d Day Care Center T o t a l of A l l Cost Centers $10,825.12 Projec t Rite $22,825.12 S a l a r y and Wage Gusts Director Secretarial & Office Staff Students $ - 3,598.45 - 154.75 $15,753.20 Other Costs Fringe B e n e f i t s Retirement $ Group M e d i c a l Insurance Group L i f e Insurance Remission o f Tuition Contracted Services M a t e r i a l s and Supplies Travel P r i n t i n g and Duplicating Scholarships Other $ $ $ $ 1,981.50 $ $ 3.524.66 - $ - 197.10 4.506.31 $15,528.53 3,598.45 3,721.76 4.661.06 $34,806.39 $ 1,346.05 3,524.66 $ 3,327.55 - $ - 598.76 234.52 - 72.00 - 7.20 170.40 $ 170.40 $27,659.30 $ This statement i s as presented Report. 76.03 310.55 72.00 144.00 - 7.20 1,981.74 2,435.94 86.63 390.50 - $ 3.630.83 3,767.51 2,985.00 390.50 $16,046.66 $19,159.36 $50,853.05 252.70 3,767.51 2,985.00 $11,906.10 696.67 814.40 833.94 15.54 71.09 252.70 170.40 97.91 252-70 $ 3.611.29 899.10 1,360.51 - - $ - i n the West Shore Community College F i n a n c i a l 35 �Page 1 o f 2 Comments, -.General Fund Cash, on, Hand and i n Banks Demand Deposits - S t a t e Savings Bank of S c o t t v i l l e - Ludington State Bank - Manistee Bank and T r u s t Change and Petty Cash Funds $ 311.34 14,790.47 100.00 680.00 $ 15.88U81 Accounts Receivable - Students The balance represents p r i m a r i l y t u i t i o n and textbook d e f e r r a l s unpaid by students for past and c u r r e n t y e a r s . $ 8.097.51 It i s estimated that approximately $3,500.00 i s u n c o l l e c t a b l e . Accounts Receivable - Other Federal - Basic Economic Opportunity Grant $ - Supplemental Economic Opportunity Grant - Work Study - Veterans Outreach - Emergency Employment Act R e d i s t r i b u t i o n s State - Michigan Higher Education A s s i s t a n c e A u t h o r i t y - Placement O f f i c e Grant Delinquent Property Taxes Detail by Years: Year 1969 1973 1974 Le.vy 260,905.30 381,205.59 446.448.90 $1,088.559.79 714.00 2,764.70 3,184.00 4,211.77 3,151.70 1,000.00 4.002.00 $ Collections Through June 30. 1974 $ 260,761.12 380,630.58 Balance 144.18 575.01 4,909,70 441,539.20 $ 24,113.33 685.06 $ 5.628.89 $ 24,798,32 3 Iny.entori.es - At Cost Bookstore Snack Bar $1,082.930.90 19,028.17 300.00 Prepaid Expenses Postage Meter Deposit NaUoaai, Direct,.Student, Loans Receivable During the current period the c o l l e g e began p a r t i c i p a t i n g in the National D i r e c t Student Loan Program. The balance r e p r e s e n t s t o t a l loans outstanding a t June 30, 1974. Due, from Other, Funds Construction Fund of 1969 $ Restricted Funds 5,441.02 9.725.16 $ 15.166.ia Accounts Payable The balance includes reimbursement to Off-Campus Work Study Employers of $5,211.40. 36 �Page 2 of Cppnments - General Accrued C o n t r a c t s Payable - I n s t r u c t o r s The l i a b i l i t y r e p r e s e n t s t h e J u l y and August payments due on c o n t r a c t s f o r the c o n t r a c t year ending August 3 1 , 1974. P a y r o l l Taxes W i t h h e l d and Accrued The balance i s composed o f t h e f o l l o w i n g ; M i c h i g a n S t a t e Income Tax W i t h h e l d F e d e r a l Income Tax W i t h h e l d R e t i r e m e n t W i t h h e l d and Accrued Other Due 2 Fund - ( c o n t i n u e d ) $ ( educator's $ 31.939.27 1,335.99 6,565.94 41,235.21 658.74) i _ 48.478.40 t o Other Funds The balance r e p r e s e n t s amounts due t o Debt R e t i r e m e n t Funds. Other The balance r e p r e s e n t s t h e f e d e r a l p o r t i o n o f unexpended N a t i o n a l D i r e c t Student Loan monies. T h i s amount i s t o be c a r r i e d f o r w a r d as a r e d u c t i o n o f e n t i t l e m e n t s o f t h e succeeding f i s c a l y e a r . T h i s statement i s as presented i n the West Shore Community College F i n a n c i a l Report. 37 �Exhibit F A u x i l i a r y E n t e r p r i s e s General Fund Statement o f Revenues and E x p e n d i t u r e s West. Shore Community College Snack Bar F i s c a l Year Ended June 30 1974 1973 Book, stpre F i s c a l Year Ended 1974 1973 $ 40.689.61 $ P8.609.44 £ 24.260.83 $ 23,765.52 29.352.32 $ 53,117.84 22.551.28 $ 259.09 14.850.57 $ 15,109.66 685.06 $ 24,113-33 332.36 11.560.49 $ 11,892.85 259.09 £ 29.377.52 £ 30.566.56 £ 14.424.60 $ 11,633,76 £ 11.312.09 Cost o f Sales Beginning Inventory Purchases $ 39.556.04 $ 22,551.28 30.939.57 $ 53,490.85 Revenue - Sales Ending June 30 $ 8.989.48 £ 14.184.84 $ 12,627.07 $ $ 5,104.68 1,263.36 964.40 7,332.44 $ 6,306.03 8,689.60 1,074.69 £ 16.070.32 $ 6,095.35 708.71 235.32 102.92 31.50 145.80 65.00 1.50 $ $ Inventory Cost of Sales Gross Margin on Sales Expenditures : Direct Costs Only S a l a r i e s and Wages Manager Service S t a f f Students - 5,870.98 2,294.89 - $ 8.165.87 $ $ 1,061.57 343.35 111.97 72.00 91.72 65.00 21-45 $ 8,991.39 1 .296.88 $ 16.383.62 ier Ousts Fringe Benefits ~ Retirement Group M e d i c a l Insurance Group L i f e Insurance Remission o f T u i t i o n Supplies Dues T r a v e l and Conventions Laundry S e r v i c e s Loss on Obsolete I n v e n t o r y R e p a i r s and Maintenance Other - 1,952.45 252.15 399.35 25.90 - - -- 4.28 - 259.58 235.40 3.540.20 Excess Revenues ( E x p e n d i t u r e s ) Exhibit C 320.65 234.32 - 36.43 $ Total Expenditures 190.25 181.05 1,231.90 1,771,34 $ 2,559,08 $ £ 9.937.21 $ 9,891,52 £ 19.610.52 £ 1.374.88 £( - 308.54 3 - 2.810.36 $ 19,193,98 902.04) £( 5.425.68.) £( 6.566.91.) This statement i s as presented i n the West Shore Community College F i n a n c i a l Report. 38 1,644.70 235.32 110.90 �Exhibit G Balance sheet C o n s t r u c t i o n Fund o f December 19. 1969 West Shore Community C o l l e g e Juafi 30, 1974 Assets Cash i n Bank Federal C o n s t r u c t i o n G r a n t s Receivable $ 349.41 —10,000,00 $ 10.349.41 L i a b i l i t i e s and Fund E q u i t y Liabilities Accounts and C o n s t r u c t i o n Payables D e f e r r e d Income Due t o General Fund Fund E q u i t y - E x h i b i t H $ 19,546.37 10,000.00 5,441.02 _(24,637,9§) £ 10,349.41 This statement i s as presented i n the West Shore Community College F i n a n c i a l Report. 39 �Exhibit H Statement o f Changes i n Fund E q u i t y C o n s t r u c t i o n Fund o f December 19. 1969 West. Shore Community C o l l e g e F i s c a l Year Ended June 30. 1974 Fund F o u i t v June SO. 1973 $ 496.20 Additions Deductions Excess E x p e n d i t u r e s _ —25,134.18 Exhibit I Fund D e f i c i t June 30. 1974 - E x h i b i t G $(24,637,9£) This statement i s as presented i n the West Shore Community C o l l e g e Report. 40 Financial �Exhibit I Statement of Fund A c t i v i t i e s C o n s t r u c t i o n Fund of December 19. 1969 West Shore Community C o l l e g e F i s c a l Y e a r s Ended June 30. 1970. 1971. 1972. 1973 and 1974 June 30 Tunc 1971 1970 1972 ]g 30 73 f!omb i npH Revenues Proceeds of Bond I s s u e I n t e r e s t Earned on Investments T r a n s f e r from C o n s t r u c t i o n Fund of March 31, 1969 West Shore Community College Foundation G r a n t s - Governmental S t a t e of Michigan U. S. Government - H.E.W. Equipment Other 278,559.00 43,553.00 £1.822.170.93 £ 107,503.25 - - 121,588.47 17,058.51 5,649.48 2,239.01 898.00 31,949.65 11,126.23 21,874.89 18,885.26 13,839.01 75,792.10 - 18.00 452.571.92 $1,369,599,01 " 7,500.00 117,386.00 £ 258,604.00 462,750.00 37,323.44 1,700.00 775,421.48 £ 14,767.22 276.82 140.991.60 £ 34,999.49 £ - £ 52,239.52 201,310.38 £1.126.431.86 1 L £ 59.04 3,500.00 $ £ - 32,826.00 17,559,04 32.826.On - £ £ 23,545.44 32,912.00 - - - 1,200.00 2,408.40 28,561.20 534.16 - - - 846.32 4,927.20 - — 12,908.18 - - - - — $ £( Q«-s / i z n , ? 6 ) j U 2 l 5 . 0 8 Q . 7 l ) $( 86.131.88 £ - 268.85 - 558,663.00 656,515.00 37,323.44 1,700.00 £2,788,969.05 10,713.24 84,416.62 12,140.00 23,840.31 22,506.55 15,242.98 - £1,500,000.00 30,990.79 276.82 3,500.00 14,000.00 - 5,083.74 906,165.05 426.00 16,006.00 34,822.88 35,808.48 7,696.79 8,955.77 12,958.71 21,338.70 376.70 3,122.84 - - - - 452,866.66 142,141.45 16,326.54 17,868.84 57,886.10 35,937.00 18,712.69 6,912.73 23,395.98 5,086.97 43.80 2,814.15 36,113.85 21,775.71 T h i s statement i s a s presented i n the West Shore Community C o l l e g e F i n a n c i a l Report. 41 - $ 16,105.60 - — £ E x c e s s Revenues ( E x p e n d i t u r e s ) 10,713.24 13,436.82 $ o ao Expenditures Finance S e r v i c e s A r c h i t e c t s and E n g i n e e r i n g C o n s t r u c t i o n Payments _ J . C. C o n s t r u c t i o n : Voc. - Tech. Center IMC Other R e l o c a t a b l e B u i l d i n g Payments A d d i t i o n a l S e r v i c e s for B u i l d i n g s Equipment - Voc. - Tech. - S c i e n t i f i c and Lab - Audio - V i s u a l - Library - Office - Maintenance - Other F u r n i t u r e - Voc. - Tech. - Library L i b r a r y Books S i t e Improvements Land Purchases Transfers C o n s t r u c t i o n Fund of March 31, 1969 G e n e r a l Fund - Pre S a l e Expenditures Miscellaneous $1 ,500,000.00 58.93 - £ 68.572.84) $( 57.960,18 565,453.65 1,071,851.94 426.00 65,513.39 52,691.72 216,483.05 60,692.30 35,726.34 50,671.65 46,166.84 5,463.67 3,122.84 31,993.45 13,940.38 94,249.79 60,831.15 13,839.01 128,031.62 201,310.38 18.00 £2.813.607.03 ?2^1SL) ,$( 24,637-98) �Comments - C o n s t r u c t i o n Funds A l l major c o n s t r u c t i o n has been completed as o f June 30, 1973. Cash i n Bank Funds a r e d e p o s i t e d i n banks as f o l l o w s : L u d i n g t o n S t a t e Bank N a t i o n a l Bank o f L u d i n g t o n Manistee Bank & T i u s t 347.41 1.00 1-00 349.41 Que from General Fund I n accordance w i t h Board a c t i o n o f August 17, 1972, temporary advances were a u t h o r i z e d t o be made t o t h e General Fund t o o f f s e t f u t u r e c a p i t a l o u t l a y expenditures. $ 29,793.59 Grant Amount U.S. Government H.E.W. $397,102.00 $ Title I 219,413.00 43,553.00 Title I 40,000.00 State of Michigan 276,104.00* Spec i a l Equipment 37.323.44 - $969.942.44 Received as o f June 30 1971 .1972-1973 1970 $43,553,00 $ 92,570.00 24,816.00 $377,247.00 72,319.00 13,184.00 7,500.00 1974 258,604.00 - $124,836,00 $19,855.00 10,971.00 2,000.00 - 37,323.44 $768,677,44 Unpaid Amount $ 10,000.00 I $32.826,00 I $10,000,00 * I n c l u d e s $10,000.00 g r a n t a p p r o p r i a t e d i n 1970 f o r t h e p l a n n i n g o f academic c l a s s room f a c i l i t i e s which was r e a p p r o p r i a t e d by t h e S t a t e o f Michigan Department o f A d m i n i s t r a t i o n t o a p p l y t o t h e A r t s and Careers Center B u i l d i n g . The unpaid amount i s a l s o shown as D e f e r r e d Income under L i a b i l i t i e s . Accounts and Construction Payables The balance i s composed o f t h e f o l l o w i n g : A r c h i t e c t Fees - I n s t r u c t i o n a l Media Center - A r t s and Careers B u i l d i n g $ 7,406.37 12.140.00 £ 19.546.37 T h i s statement i s as presented i n the West Shore Community College F i n a n c i a l Report. 42 �Exhibit J Ral anr.s Sheets Debt R e t i r e m e n t Funds West Shore Community C o l l e g e June 30, 1974 Assets Fund o f September 1 March 3 1 , 1969 1969 $ Cash C e r t i f i c a t e s of Deposit P r o p e r t y Taxes Receivable Due from General Fund 286.74 17,493.46 629.60 546.40 S 18.956.20 $ 637.04 38,864.33 1,481.91 1.135.96 $ 42.119.24 Fund Equity $ 18,956-20 $ 42.119.24 Fund E q u i t y - E x h i b i t K T h i s statement i s as presented i n the West Shore Community College F i n a n c i a l Report. 43 �Exhibit Statement K o f Fund A c t i v i t i e s pebt R e t i r e m e n t Funds West Shore Community C o l l e g e June 30. 1974 • March 3 1 , 1969 $ 19,014.60 Revenues T r a n s f e r s from General Fund P r o p e r t y Tax Levy I n t e r e s t on Investments September 1 1969 $ 42,081.20 133,994.18 182.00 £176.257.38 $ Expenditures Bond Redemptions Interest Agent Fees 57,889.54 78.63 76.982.77 $ 20,000.00 $ 58,031.20 £ 50,000.00 84,000.00 173.40 £.134.173.40 Excess Revenues ( E x p e n d i t u r e s ) $ 18.951.57 £ 42.083.98 Fund Equity June 30, 1973 $ £ 37,910.00 121,20 Additions Excess Revenues (See Above) 4.63 35.26 $ 18.956.20 42.083.98 £ 42.119.24 $ £ 18,951,57 Dedueticns Excess E x p e n d i t u r e s $ 18,956,20 $ 42,119,24 Fund E q u i t y June 30. 1974 - E x h i b i t J This statement i s as presented Report. i n the West Shore Community College F i n a n c i a l 44 �Page 1 o f 2 Schedule o f Bonded Indebtedness L&Sllfi n f March 1 . 1969 On March 1 , 1969, t h e West Shore Community C o l l e g e d i s t r i c t i s s u e d $750,000.00 of 1969 Community C o l l e g e b u i l d i n g bonds. The bonds are payable from ad v a l o r e m t a x e s , l e v i e d w i t h o u t l i m i t a t i o n as t o r a t e or amount as p r o v i d e d by S e c t i o n 6, A r t i c l e I I , of t h e C o n s t i t u t i o n o f the S t a t e o f M i c h i g a n . The amounts o f p r i n c i p a l and i n t e r e s t payments are as f o l l o w s : Maturity Year 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 Payable March 1, Interest Princ i p a 1 $ $ 18,355.00 17,605.00 16,855.00 16,105.00 15,355.00 14,455.00 13,630.00 12,835.00 11,775.00 10,675.00 9,575.00 8,475.00 7,075.00 5,675.00 4,262.50 2,850.00 1.425.00 * 25,000.00 25,000.00 25,000.00 25,000.00 30,000.00 30,000.00 30,000.00 40,000.00 40,000.00 40,000.00 40,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50.000.00 186,982,50 $ 650.000.00 The bonds are i n $5,000.00 d e n o m i n a t i o n each w i t h r a t e s as f o l l o w s : Bonds M a t u r i n g 1970 1980 1981 1983 1986 1988 1990 Overall net i n t e r e s t - 1979 Interest Payable Sept. 1 . $ 18,355.00 17,605.00 16,855.00 16,105.00 15,355.00 14,455.00 13,630.00 12,835.00 11,775.00 10,675.00 9,575.00 8,475.00 7,075.00 5,675.00 4,262.50 2,850.00 1,425.00 $ 45 $1.023.965.00 interest at various interest 6.00 5.50 5.30 5.50 5.60 5.65 5.70 - 1982 - 1985 - 1987 - 1989 - 1991 c o s t i s 5.6361 % - 186.982.50 Annual Requirement $ 18,355.00 60,960.00 59,460.00 57,960.00 56,460.00 59,810.00 58,085.00 56,465.00 64,610.00 62,450.00 60,250.00 58,050.00 65,550.00 62,750.00 59,937.50 57,112.50 54,275.00 51,425.00 % % % % % % % �Page 1 of 2 Schedule o f Bonded Indebtedness Issue o f March 1 . 1969 On March 1 , 1969, t h e West Shore Community College d i s t r i c t i s s u e d $750,000.00 of 1969 Community C o l l e g e b u i l d i n g bonds. The bonds are payable from ad v a l o r e m t a x e s , l e v i e d w i t h o u t l i m i t a t i o n as t o r a t e or amount as p r o v i d e d by S e c t i o n 6, A r t i c l e I I , of t h e C o n s t i t u t i o n o f the S t a t e of Michigan. The amounts o f p r i n c i p a l and i n t e r e s t payments are as f o l l o w s : Maturity Year 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 Payable Marc, h 1 , Interest $ Princ i p a 1 $ 18,355.00 17,605.00 16,855.00 16,105.00 15,355.00 14,455.00 13,630.00 12,835.00 11,775.00 10,675.00 9,575.00 8,475.00 7,075.00 5,675.00 4,262.50 2,850.00 1.425.00 $ 186.982.50 25,000.00 25,000.00 25,000.00 25,000.00 30,000.00 30,000.00 30,000.00 40,000.00 40,000.00 40,000.00 40,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50.000.00 $ The bonds are i n $5,000.00 denomination r a t e s as f o l l o w s : Bonds M a t u r i n g 1970 - 1979 1980 1981 - 1982 1983 - 1985 1986 - 1987 1988 - 1989 1990 - 1991 O v e r a l l n e t i n t e r e s t c o s t i s 5.6361 % 650.000.00 Interest Payable Sept. 1 . $ 18,355 .00 17,605 .00 16,855 .00 16,105 .00 15,355 .00 14,455 .00 13,630 .00 12,835 .00 11,775 .00 10,675 .00 9,575 .00 8,475 .00 7,075 .00 5,675 .00 4,262 .50 2,850 .00 1,425 .00 $ 186,982,50 $1,023,968.00 each w i t h i n t e r e s t a t v a r i o u s I n t e r e s t 6.00 5.50 5.30 5.50 5.60 5.65 5.70 45 Annual Requirement $ 18,355.00 60,960.00 59,460.00 57,960.00 56,460.00 59,810.00 58,085.00 56,465.00 64,610.00 62,450.00 60,250.00 58,050.00 65,550.00 62,750.00 59,937.50 57,112.50 54,275.00 51,425.00 % % % % % % % �Page 2 of 2 Schedule o f Bonded Indebtedness-(continued) Tssue o f September 1 . 1969 D u r i n g December, 1969 t h e c o l l e g e d i s t r i c t s o l d $1,500,000.00 o f bonds d e s i g n a t e d "1969 Community C o l l e g e B u i l d i n g Bonds, S e r i e s I I . " The proceeds a r e f o r t h e purpose o f e r e c t i n g , f u r n i s h i n g and e q u i p p i n g b u i l d i n g s and s i t e purchase and development c o s t s . The bonds a r e payable from ad valorem taxes l e v i e d w i t h o u t l i m i t a t i o n as t o r a t e or amount, as p r o v i d e d i n S e c t i o n 6, A r t i c l e IX o f t h e C o n s t i t u t i o n o f Michigan o f 1963. The annual debt r e q u i r e m e n t s are as f o l l o w s : Maturity Year 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 Payable March 1. Interest $ Princ i D a l $ - 40,500.00 38,250,00 36,000.00 33,750.00 31,500.00 29,250.00 27,000.00 24,000.00 21,000.00 18,000.00 15,000.00 12,000.00 9,000.00 6,000.00 3.000.00 $ 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100.000.00 344.250.00 $1, 350.000.00 The bonds are i n denominations Interest Payable Sept 1 . $ 40,500.00 38,250.00 36,000.00 33,750.00 31,500.00 29,250.00 27,000.00 24,000.00 21,000.00 18,000.00 15,000.00 12,000.00 9,000.00 6,000.00 3,000.00 Annual Re quirements 40,500.00 $ 153,750.00 149,250.00 144,750.00 140,250.00 135,750.00 131,250.00 151,000.00 145,000.00 139,000.00 133,000.00 127,000.00 121,000.00 115,000.00 109,000.00 103.000.00 $ 344.250.00 $2 .038.500.00 o f $5,000.00 each w i t h i n t e r e s t a t b%. T h i s statement i s as presented i n the West Shore Community College Report. 46 Financial �Exhibit L Balance Sheets R e s t r i c t e d Funds West Shore Community C o l l e g e June 30, 1974 Student Loan Fund Endowment Fund Library Fund $ $ Scholarship Fund Assets 1,284.41 Savings Accounts I n v e s t m e n t - At Cost Loans R e c e i v a b l e - C u r r e n t Due from General Fund C e r t i f i c a t e s o f Deposit 339.68 680.94 $ 17,992.19 2,000.00 660,Q0 7,700.00 128.00 83.50 5QQ,Q0 $ 1.495.91 $ 839,68 $ 1,330.94 $ 27,692,19 L i a b i l i t i e s and Fund E q u i t y $ Due t o General Fund Fund E q u i t y - E x h i b i t M $ This statement Report. 1,495.91 1.330.94 839,68 1,495.91 $ 839.68 $ 9,808.66 17,883,53 1,330.94 $ 27,692,19 i s as presented i n the West Shore Community College F i n a n c i a l 47 �Exhibit Statement M o f Fund A c t i v i t i e s Restricted Funds West Shore Community C o l l e g e F i s c a l Year Fnded June 30. 1974 Student Loan Fund Endowment Library Fund Fund Scholarship Fund Revenues 25.00 D o n a t i o n s , G i f t s and Grants I n t e r e s t Earned on Investments 25-00 11-50 11.50 i _ $ 15,627.25 67.22 559,01 25,Q0 JL 92.22 $ 16,186,26 Expenditures $ 10.978.19 S c h o l a r s h i p s Allowed Excess Revenues ( E x p e n d i t u r e s ) Fund E q u i t y - June 30, 1973 11.50 JL $ 1,484.41 25,00 1. $ 814.68 $ 92.22 $ 5.208.07 $ 1,238.72 $ 12,675.46 92-22 5,208-07 839.68 $ 1,330.94 $ 17,883.53 839.68 $ . .330.94 1 Additions 11,50 Excess Revenues " See Above 1,495.91 25,00 Deductions Excess E x p e n d i t u r e s .Fund Equity ~ June 30, 1974 Exhibit L $ 1,495,91 JL % 17.883.53 T h i s statement i s as presented i n the West Shore Community College F i n a n c i a l Report. 48 �Comments - R e s t r i c t e d Funds The Funds are f o r the purpose and t o be a d m i n i s t e r e d as follows: Student. Loan Fund - For the purpose o f p r o v i d i n g t u i t i o n o n l y loans t o s t u d e n t s . The Student F i n a n c i a l Aids Committee, composed o f the Deans o f Business S e r v i c e s , S t u d e n t Personnel and T e c h n i c a l - V o c a t i o n a l , Academic C u r r i c u l a and t h e P r e s i d e n t , w i l l make the d e t e r m i n a t i o n o f e l i g i b i l i t y . There are no p r i n c i p a l or i n t e r e s t restrictions. Endowment Fund - For t h e purpose o f p r o v i d i n g books and fees t o w o r t h w h i l e s t u d e n t s and o t h e r purposes as proposed and s t i p u l a t e d by t h e donor. The fund w i l l be adm i n i s t e r e d by the Student F i n a n c i a l Aids Committee. There are no p r i n c i p a l or interest restrictions presently. L i b r a r y Fund - For the purpose o f p r o v i d i n g books and o t h e r l i b r a r y i n s t r u c t i o n a l media as d e t e r m i n e d by t h e D i r e c t o r o f the I n s t r u c t i o n a l Media C e n t e r , w i t h e x e c u t i v e o f f i c e a p p r o v a l . The funds are n o t t o be d i s b u r s e d f o r b u i l d i n g s or b u i l d i n g improvements. S c h o l a r s h i p Fund - For t h e purpose o f p r o v i d i n g t u i t i o n and o t h e r c o s t s o f a complete course of study o f f e r e d by the c o l l e g e . The fund w i l l be a d m i n i s t e r e d by t h e Student F i n a n c i a l Aids Committee. There are no p r i n c i p a l or i n t e r e s t r e s t r i c t i o n s . The investment i s r e p r e s e n t e d by a Pennsylvania Power Company, F i r s t Mortgage Bond, 8% S e r i e s due October 1, 2001. The bond i s dated October 27, 1972, and i n t e r e s t i s p a i d on A p r i l 1 and October 1 of each y e a r . The bond i s a d o n a t i o n from t h e McGhan f a m i l y and i s d e s i g n a t e d as the McGhan S c h o l a r s h i p Fund. T h i s statement i s as presented i n the West Shore Community College F i n a n c i a l Report. 49 �DESCRIPTION OF AGENCY West S h o r e Community C o l l e g e was o r g a n i z e d 1966 ( S e c t i o n s 389.1 - 389.195, C.L. 1 9 7 0 ) , 1966" The i n accordance "The Community C o l l e g e A c t of and e s t a b l i s h e d by a v o t e o f t h e p e o p l e community c o l l e g e l e g a l t a x b a s e d i s t r i c t mediate School D i s t r i c t , Manistee School w i t h A c t 331, P.A. on March 6, 1967. i s comprised o f t h e Mason Inter- Intermediate School D i s t r i c t , W a l k e r v i l l e and the Weare-Crystal The c o l l e g e i s e s t a b l i s h e d on a 3 7 5 - a c r e campus l o c a t e d s i x m i l e s n o r t h w e s t o f the C i t y of S c o t t v i l l e . Districts. Facilities include a multipurpose s t u d e n t s e r v i c e s and a d m i n i s t r a t i o n b u i l d i n g , a t e c h n i c a l v o c a t i o n a l c e n t e r and a n i n s t r u c t i o n a l media c e n t e r . The c o l l e g e i s g o v e r n e d by a seven-member B o a r d o f T r u s t e e s e l e c t e d a t l a r g e from t h e c o l l e g e d i s t r i c t . West S h o r e Community C o l l e g e makes e d u c a t i o n beyond t h e h i g h s c h o o l available to a l l students i n t e r e s t e d a program o f h i g h e r Operating tuition, funds level i n , and c a p a b l e o f , b e n e f i t i n g from such education. a r e d e r i v e d from a o n e - m i l l d i s t r i c t and S t a t e o f M i c h i g a n appropriations. 50 t a x assessment, student �SCOPE OF AUDIT The f i n a n c i a l r e c o r d s w e r e examined by a c e r t i f i e d public accounting firm. B a l a n c e s h e e t s and income and e x p e n d i t u r e s t a t e m e n t s w e r e p r e p a r e d by t h e f i r m f o r t h e g e n e r a l o p e r a t i n g f u n d s and o t h e r A p p l i c a b l e p u b l i c a c t s and Board pliance. funds. of T r u s t e e s minutes were reviewed The c o l l e g e p o l i c i e s and o r g a n i z a t i o n p l a n were f o r com- reviewed. Procedures f o r r e c e i v i n g , d e p o s i t i n g and d i s b u r s i n g c a s h w e r e o b s e r v e d and reviewed. R e v e n u e s , t u i t i o n and f e e s , and i n v e s t m e n t s w e r e examined. C o l l e c t i o n procedures and w r i t e - o f f s o f r e c e i v a b l e s were examined. E x p e n d i t u r e s from a l l f u n d s w e r e t e s t e d and replacement Records travel, i n s u r a n c e , maintenance o f v e h i c l e s and equipment, and m i s c e l l a n e o u s e x p e n d i t u r e s . and p r o c e d u r e s ships, National Direct Opportunity including pertaining to f i n a n c i a l a s s i s t a n c e to s t u d e n t s , s c h o l a r - S t u d e n t L o a n s , work s t u d y programs, E d u c a t i o n a l G r a n t s and B a s i c E d u c a t i o n a l O p p o r t u n i t y Grants were reviewed f o r adequacy and p r o p r i e t y . S a l a r y s c h e d u l e s , timekeeping and p a y r o l l p r o c e d u r e s , f r i n g e b e n e f i t s and l e a v e r e c o r d s w e r e examined. S t u d i e s w e r e made o f c l a s s r o o m u t i l i z a t i o n , i n s u r a n c e and equipment purchasing, control. A f o l l o w - u p r e v i e w was made t o d e t e r m i n e t i o n s of the c e r t i f i e d faculty utilization, public compliance accountants. 51 oag with the p r i o r recommenda- �� Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Business Office Description An account of the resource Audit reports, budget documents Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource AuditReportJuly1972-June1974.pdf Audit Report https://wsccarchives.org/files/original/21d398e7eb3ea4f814523fd5868556c9.pdf fc7a6aca618f7c11bd64da53468a6265 PDF Text Text AUDIT REPORT Franklin C. Pinkelman, C.P.A. Auditor General �Executive Digest The objectives of our audit of West Shore Community College were to evaluate selected college programs and to determine if the college was in compliance with prescribed policies and procedures for the period July I, 1985 through September 30, 1987. The major areas examined were the college's foundation, Job Training/Retraining Investment Fund grants, and student financial aid. Our examination of the college's foundation showed that future revenues from mineral rights should be restricted for general academic purposes. In the Job Training/Retraining Investment Fund area, we determined that the college used fund money for expenditures not provided for in the college's grant proposals. Our review of student financial aid showed that the college should forward delinquent National Direct Student Loans to the collection agency on a timely basis. In the other areas, we determined that the college needs to improve documentation of computer programs and bid openings. The college should also develop written procedures for computer-based activities of the business office and improve internal controls for tuition revenue and allocations of costs. Our audit report includes 12 comments and recommendations including I repeated from our prior audit. The college had complied with many of the recommendations in our prior audit. The college is to be commended for the action taken on our prior audit recommendations. Annual appropriations acts require the principal executive officer of the audited institution to submit a written response to our audit to the House and Senate Appropriations Committees, the Auditor General, the Senate and House Fiscal Agencies, and the Department of Management and Budget. The response is due within 60 days after the audit report has been issued and should specify the action taken by the institution regarding the audit report's recommendations. �S T A T E O F MICHIGAN O F F I C E OF T H E AUDITOR G E N E R A L 333 SOUTH CAPITOL AVENUE-SUITE A L A N S I N G , MICHIGAN 4 8 9 1 3 FRANKLIN C . PINKELMAN, C . P . A . (517) 373-3773 AUDITOR G E N E R A L C H A R L E S S . JONES, C . P . A . DEPUTY June 28, 1988 Board of Trustees West Shore Community College Scottville, Michigan Dear Board Members: This is our report on the audit of West Shore Community College for the period July I, 1985 through September 30, 1987. This report contains our executive digest, description of agency, audit objectives and scope of audit, and comments and recommendations. Our comments and recommendations are organized by major topics. We appreciate the courtesy and cooperation extended to our auditors. Sincerely, Franklin C. Pinkelman, C.P.A. Auditor General ii �TABLE OF CONTENTS WEST SHORE COMMUNITY C O L L E G E INTRODUCTION Page Executive Digest i Report Letter ii Description of Agency I Audit Objectives and Scope of Audit 2 COMMENTS AND RECOMMENDATIONS Foundation 1. Oil Lease Revenue Job Training/Retraining Investment Fund (JTRIF) 3 3 3 2. JTRIF Expenditures 4 3. Grant Documentation 5 Financial Aid 6 4. Collection Procedures 6 5. Student Receivables 6 6. Financial Aid Self-Evaluation 7 Data Processing 7 7. Written Procedures 7 8. Data Processing Programs 8 Internal Controls 9. Purchase Orders 8 8 10. Documentation of Bids 9 11. Cost Allocations 9 12. Cashier's Duties 10 �Description of Agency West Shore Community College is a two-year institution of higher education offering academic, vocational-techni cal, and continuing education programs. established in 1967. The college was The college district includes all of Mason County; most of Manistee County; and parts of Lake, Newaygo, and Oceana Counties. A seven-member Board of Trustees elected at-large from the college district provides direction for the college's overall operation. The college is accredited by the North Central Association of Secondary Schools and Colleges. The college operates under the authority of the Community College Act (Act 331, P.A. 1966), being Sections 389.1 - 389.195 of the Compiled Laws. It receives its support from student tuition and fees, appropriations from the State of Michigan, a 1.5-mill property tax assessment, and federal grants and contracts. For the fiscal year ended June 30, 1987, the college reported current general fund revenue of $3.68 million and expenditures and transfers of $3.61 million. As of September 18, 1987, the college employed 26 full-time faculty, 36 part-time faculty, and 60 administrative and other personnel. The college enrolled 470 full-time students and 693 part-time students in fall semester 1987. I �Audit Objectives and Scope of Audit Our audit of West Shore Community College had the following objectives: 1. To evaluate selected college programs and operations (including selected internal controls) in achieving their intended purposes. 2. To assess college compliance with legislative reporting requirements and State statutes. 3. To determine that the information reported to the Department of Education on the activities classification structure fonns for fiscal year 1986-87 was in compliance with provisions of the annual appropriations act (Act 137, P.A. 1987), the Michigan Community Colleges Activities Classification Structure manual, and the Manual for Uniform Financial Reporting of Michigan Public Community Colleges. Our audit scope was to examine the financial and other records of West Shore Community College for the period July 1, 1985 through September 30, 1987. Our examination was made in accordance with generally accepted government auditing standards and, accordingly, included such tests of the records and such other auditing procedures as we considered necessary in the circumstances. The financial statements of West Shore Community College are audited annually by a certified public accounting firm engaged by the college. 2 �COMMENTS AND RECOMMENDATIONS FOUNDATION Oil Lease Revenue I. In 1983, the Board of Trustees deeded the mineral rights of the college property to the West Shore Community College Foundation. This resulted in oil lease revenue of $18,000 being paid directly to the foundation rather than to the college general fund. The college is the sole beneficiary of funds raised by the foundation. However, the majority of foundation expenditures were not for general academic purposes. For example, during fiscal year 1985-86, 79% of expenditures were for cultural/community events, 18% were for scholarships, and the remaining 3% were for supplies and materials. We question the propriety of transferring college mineral rights to a college foundation when there was no financial consideration given by the foundation nor specific restrictions placed on the proceeds of such money. Revenue derived from college property should be credited to, and be restricted for purposes of, the college general fund. We recommend that the Board of Trustees request the foundation Board of Directors to restrict future mineral rights revenue to general academic purposes. JOB TRAINING/RETRAINING INVESTMENT FUND (JTRIF) The college has a Business and Industrial Development Institute (BIDl). The purpose of BID1 is to coordinate the economic development efforts of the college and the community. received BIDl received JTRIF grants from the Department of Education. Community Growth Alliance (CGA) Commerce. 3 grants from It also the Department of �JTRIF Expenditures 2. The college did not spend JTRIF grants according to established criteria and the college's approved grant proposals: a. The college continuously charged personnel costs for the same staff positions to the fiscal years 1984-85, 1985-86, and 1986-87 JTRIF grants. Although the Department of Education approved the college's budget for personnel expenditures in fiscal years 1984-85 and 1986-87, the grants were not to fund the same positions continuously. The purpose of JTRIF grants is to fund projects which will have an economic impact, such as the creation of additional jobs. The funding of the same positions for three fiscal years was not consistent with the purpose of the grants. b. The college charged personnel costs against JTRIF grants in excess of budgets or without a budget. In fiscal year 1984-85, the college charged $13,090 of personnel costs when the approved budget was $3,100. In fiscal year 1985-86, the college charged $26,579 of personnel costs but there was no budget for personnel costs. In fiscal year 1986-87, the college charged $28,931 of personnel costs when the approved budget was $24,000. c. The college JTRIF grant budget for consulting fees for fiscal year 1986-87 was $22,950. However, we determined that $21,150 of consulting fee money was used for renting a facility and for program administration expenses. Therefore, the college obtained reimbursement for funds spent in expenditure categories not budgeted for. We were informed in discussions with personnel from the Department of Education that community colleges have minimal authority to change the method of spending JTRIF grant money. Significant deviations from approved grant proposals should be submitted to the Department of Education. Department of Education personnel also informed us of the lack of written guidelines for community colleges on the proper expenditure of JTRIF grants. This lack of written guidelines affected the manner that the college spent grant funds. We recommend that the college either obtain retroactive approval from the Department of Education for fiscal years 4 1984-85, 1985-86, and 1986-87 �expenditures which were not provided for under the college's approved grant proposals or reimburse the State for these expenditures. We also recommend that the Department of Education provide written guidelines to community colleges on the allowable expenditure of JTRIF grants. Grant Documentation 3. Our review of the college's grant accounting practices disclosed: a. The college charged the JTRIF and Community Growth Alliance grants $19,920 to rent a facility and $25,552 to rent equipment in fiscal years 1985-86 and 1986-87 without adequate documentation. The documentation did not identify the facility rented and the event involved. The documentation did not show the equipment rented or its purpose. b. The college paid $61,608 of consulting fees during the period February I through September 30, 1987 to the Mason and Manistee Economic Development Offices without a written contract. While progress reports were submitted detailing which businesses were assisted, a written contract signed by each party would help to ensure that the duties and responsibilities of all parties are met. c. Grant records did not identify expenses by category applicable to a specific funding source. Therefore, grant records did not clearly show that grant funds were appropriately spent. The Department of Commerce requires grantees to have effective financial control and accountability over grant funds. Such controls include adequate documentation and written contracts to support expenditures. We recommend that the college improve grant accounting practices by: (a) Supporting expenditures with documentation and written contracts. (b) Identifying the funding source for each expenditure category. 5 �FINANCIAL AID Collection Procedures 4. The college did not forward delinquent National Direct Student Loans (NDSL's) to collection agencies on a timely basis. On September 30, 1987, $30,978 of the NDSL's in repayment status were over six months past due. Collection efforts were not started for $15,144 of these loans. The college's Financial Aid Procedures Manual requires the college to forward NDSL's which are more than three months past due to collection agencies after other collection efforts have proved unsuccessful. Federal regulations also allow the college to forward NDSL's to collection agencies after billing efforts and personal contacts fail. We recommend that the college forward delinquent NDSL's to collection agencies on a timely basis in accordance with established procedures and federal regulations. Student Receivables 5. In our test of 17 student loans, 2 students received financial aid awards of $1,250 and $429 even though they had delinquent loans of $125 and $160 at the time of disbursement of the awards. The Financial Aid Procedures Manual states that the business office should collect from students who owe money to the college before disbursing awards. Because the business office did not collect these two delinquent loans, both loans were assigned to a collection agency which caused the college to incur additional costs. Upon completion of our fieldwork, we were informed that the $125 loan was collected but the $160 loan was still outstanding. We recommend that the college comply with established procedures and collect outstanding debts from students before disbursing financial aid awards to the same students. 6 �Financial Aid Self-Evaluation 6. The college had not performed a formal self-evaluation of its financial aid operations. The college should use the guide developed by the National Association of Student Financial Aid Administrators and conduct a self-evaluation to help ensure effective financial aid operations. The guide has recently been updated to include federal requirements mandated by the Higher Education Amendments of 1986 (P.L. 99-498). We recommend that the college conduct a self-evaluation of its financial aid operations on a periodic basis in accordance with guidelines issued by the National Association of Student Financial Aid Administrators. DATA PROCESSING Written Procedures 7. The business office did not have written procedures for source document preparation, data entry, and batch balancing of the following computer-based activities: Accounting Budget Cash Receipts Payroll Written procedures are important because they provide reference for processing transactions in the manner authorized by management. The lack of written procedures weakens controls because there is no documentation of management's direction and authorization for processing transactions. Also, the lack of written procedures does not ensure continuity of processing when personnel changes occur. We recommend that the college develop written procedures for source document preparation, data entry, and batch balancing operations of the business office. 7 �Data Processing Programs 8. The college needs to improve its documentation of data processing programs. The college had not established standards for documenting data processing programs. As a result, documentation of programs was limited to source code listings, procedures listings, copies of output, and record of programming changes. This level of documentation was not adequate to ensure continuity of processing and maintenance of programs when employee changes occur. Also, it did not provide the basis of how data processing was to be carried out as authorized by management. The college should establish documentation standards for data processing programs to ensure adequate documentation. Documentation standards should provide: a. Program overview and description. b. Program design specifications in the form of flow charts, structure charts, decision tables, and explanations of programming techniques used. c. File descriptions, layouts, explanations of file contents and purpose. d. Report layouts and operating instructions. e. Other information to assist in maintaining the program, such as modifications to the program. We recommend that the college establish program documentation standards and require the data center to implement the standards. INTERNAL CONTROLS Purchase Orders 9. The college needs to improve the handling of purchase orders. Some departments kept only an alphabetical file of purchase orders issued. A file by purchase order number was not kept and we could not account for some purchase orders. The college's procedural statement number 33 states that the pink and gold copies of 8 �the purchase orders should be retained in the ordering department and filed in alphabetical and purchase order number, respectively. The file by purchase order number accounts for and controls the use of purchase orders. We also determined that management did not conduct periodic reviews to ensure that departments adhered to purchase order procedures. This lessens the reliability of the controls provided by the purchase order system. We recommend that the college maintain copies of purchase orders in the appropriate files and initiate periodic reviews to ensure adherence by the various departments to the college's purchase order procedures. Documentation of Bids 10. We determined that the college's procurement of materials and services was appropriate. However, the college should improve records and documentation of bids and awards. We reviewed 4 formal bid openings and noted that the bid folders for 3 of them did not: a. Contain an analysis of the bid results. b. Indicate the time, date, and persons present when the bids were opened. The college should keep detailed records of formal bid openings to provide adequate support for procurement decisions. WE AGAIN RECOMMEND THAT THE COLLEGE KEEP A DETAILED RECORD OF FORMAL BID OPENINGS. Cost Allocations 11. The college has not documented that the amounts charged the auxiliary fund activities for direct and indirect costs were reasonable. During fiscal year 1986-87, the college allocated costs of $1,200 and $600 to the food service operation and bookstore, respectively. These amounts included direct costs, such as insurance and space usage, and indirect costs, such as accounting and personnel administration. 9 �However, the business office costs alone were $380,1 16. We estimate that the auxiliary fund share of business office costs was $24,435. To accurately determine the results of its operations, the college should charge auxiliary fund activities with the full costs of their operations. We recommend that the college determine that the amounts charged the auxiliary fund activities reasonably reflect the full direct and indirect costs of those operations. Cashier's Duties 12. The college has not separated the functions of maintaining the accounts receivable records from the cashiering operations. We found the same situation in our prior audit. The handling of accounts receivable records by the cashier weakens internal control because it results in the cashier performing incompatible duties. The college should separate the handling of accounts receivable records from the cashier to have adequate internal control. The college should realign the duties of the business office staff so that the accounting functions of the cashier are assigned to other employees or install compensating controls to enhance internal control over cash operations. We recommend that the college either realign the duties of cashiering and recordkeeping among different employees or install compensating controls to enhance internal control over cash operations. 10 oag �� Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Business Office Description An account of the resource Audit reports, budget documents Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource AuditReportWSCCJuly1985-September301987.pdf Audit Report https://wsccarchives.org/files/original/088097342d44861aeb35b41d29300bd0.pdf e91b1e7bfbdb7232a578c0fbd7f65a5e PDF Text Text �A u d i t Report West Shore Community College Scottville, Michigan June 30. 1968 -1- �--Contents-- Auditor's Certificate Balance Sheet - General Fund Statement o f Fund A c t i v i t i e s - General Fund Investments - General Fund Schedule o f I n s u r a n c e - General Fund Comments - General Fund Balance Sheet - R e s t r i c t e d Funds Statement o f Fund A c t i v i t i e s - R e s t r i c t e d Funds Comments - R e s t r i c t e d Funds �O F F I C E S : M E M B E R S : MICHIGAN TIFIED ASSOCIATION PUBLIC AMERICAN TIFIED ACCOUNTANTS INSTITUTE PUBLIC 101 OF MERSKIN & MERSKIN ACCOUNTANTS C E R T I F I E D P U B L I C A C C O U N T A N T S M I C H I G A N 4 9 4 2 0 PARTNERS: GUY T. MERSKIN, MERSKIN, HART, STREET (BOX MICHIGAN PHONE 201) 49420 873-2843 OF H A R T , DONALD STATE 108 LUDINGTON, PHONE SOUTH RATH MICHIGAN 49431 843-9712 C.P.A. C.P.A. J u l y 9, 1968 Board o f T r u s t e e s West Shore Community College S c o t t v i l l e , Michigan Gentlemen: We have examined t h e statements o f t h e g e n e r a l and r e s t r i c t e d funds f o r t h e f i s c a l year ended June 30, 1968. Our e x a m i n a t i o n was made i n accordance w i t h g e n e r a l l y accepted a u d i t i n g standards and a c c o r d i n g l y i n c l u d e d such t e s t s o f t h e accounting r e c o r d s and o t h e r such a u d i t i n g procedures as were considered necessary i n t h e c i r c u m s t a n c e s , except as i n d i c a t e d i n t h e f o l l o w i n g paragraph. Procedures were n o t a p p l i e d t o v e r i f y o r s u p p o r t p r o p e r t y t a x e s r e c e i v a b l e . I n o u r o p i n i o n , s u b j e c t t o t h e p r e c e d i n g paragraph, t h e accompanying s t a t e ments p r e s e n t f a i r l y t h e a c t i v i t i e s o f t h e West Shore Community College f o r t h e f i s c a l year ended June 30, 1968, i n accordance w i t h g e n e r a l l y accepted accounting p r i n c i p l e s . Respectfully submitted, C e r t i f i e d P u b l i c Accountants -3- �-4- �Balance Sheet Exhibit A General Fund West Shore Community C o l l e g e June 30, 1968 Assets Current Assets P e t t y Cash Cash i n Bank - General Investments - U.S. T r e a s u r y B i l l s - E x h i b i t C D e l i n q u e n t P r o p e r t y Taxes R e c e i v a b l e - 1967 Accrued I n t e r e s t R e c e i v a b l e T o t a l C u r r e n t Assets $ 103.88 4,107.09 $ 4,210.97 158,176,68 13,581.65 383.98 $176,353.28 Deferred Expense Prepaid I n s u r a n c e - E x h i b i t D 354.38 $176,707.66 Fund E q u i t y Liabilities Fund E q u i t y Balance June 30, 1968 - E x h i b i t B $ None 176,707.66 $176,707.66 �Statement o f Fund Exhibit B Activities General Fund West Shore Community College F i s c a l Year Ended June 30, 1968 Revenues Local Sources: P r o p e r t y Tax Assessments - 1967 I n t e r e s t and P e n a l t i e s on D e l i n q u e n t P r o p e r t y Tax C o l l e c t i o n s G i f t from Mason - Manistee Community College Fund I n t e r e s t Earned on U.S. T r e a s u r y B i l l s $223,287.00 7.96 417.60 2.778.42 $ 23,820.00 4,000.00 S t a t e Sources: Direct Aid V o c a t i o n Study Grant $226,490.98 27,820.00 $254.310.98 T o t a l Revenues Expenditures Salaries: President Business Manager Professional Staff Services S t a f f Fringe B e n e f i t s - Group Medical Insurance Services - P r o f e s s i o n a l : Audit - Financial A p p r a i s a l and Survey Legal M i s c e l l a n e o u s Surveys Site Consultants Other Services - C u s t o d i a l : Cleaning Other General S u p p l i e s : O f f i c e S t a t i o n e r y and Forms O f f i c e General S u p p l i e s P r i n t i n g and D u p l i c a t i n g Custodial Supplies Rent: A d m i n i s t r a t i v e Space O f f i c e Equipment and Other Utilities Insurance: General Fire Public L i a b i l i t y F i d e l i t y Bonds $ 14 ,999.94 7 ,249.92 4 ,833.28 6 ,134.27 $ 33 ,217.41 450.57 $ $ $ $ $ -6- 50.00 8 ,769.46 145.15 684.61 8 ,017.58 315.00 17 ,981.80 360.00 35.63 395.63 343.40 904.13 697.51 730.00 246.20 140.40 37.94 33.36 147.82 1 ,945.04 81.00 976.20 81.68 359.52 �Statement o f Fund A c t i v i t i e s Exhibit B General Fund West Shore Community College F i s c a l Year Ended June 30, 1968 Expenditures - Continued Memberships and T r a v e l : Professional Organizations Convention Fees S u b s c r i p t i o n s - General Use Books and P e r i o d i c a l s Mileage Allowed T r a v e l Allowances A d v e r t i s i n g and P u b l i c i t y : Bulletins Publications A d v e r t i s i n g - Newspaper Other Communi c a t i o n s : Telephone Postage Other E x p e n d i t u r e s : Maintenance and Other F r e i g h t and Moving Allowances I n t e r e s t and Other Capital Outlay: O f f i c e Equipment Office Furniture $ $ $ $ $ Total Expenditures 917.50 225.55 199.75 183.44 2 ,392.95 2 ,151.19 6,070.38 93.00 47.95 234.48 52.45 427.88 988.21 252.50 1,240.71 152.01 4 ,214.66 212.56 4,579.23 4 ,375.28 5 ,420.99 9,796.27 $ 77,603.32 Excess Revenues and Fund E q u i t y - E x h i b i t A -7- $176,707.66 �Investments Exhibit C General Fund West Shore Community C o l l e g e June 30, 1968 U.S. U.S. U.S. U.S. U.S. U.S. Treasury Treasury Treasury Treasury Treasury Treasury Bills Bills Bills Bills Bills Bills Purchased 5- 13-68 6- 20-68 6-20-68 6-20-68 6-20-68 6-21-68 Effective Interest Rate 5.558% 5.200 5.450 5.450 5.550 5.340 Due 8-15-68 7- 18-68 8- 15-68 9- 12-68 10- 17-68 11- 14-68 -8- Redemption Value $ 30,000.00 55,000.00 15,000,00 11,000.00 19,000.00 30.000.00 $ 29,578.50 54,809.33 14,881.92 10,866.78 18,663.15 29.377.00 $160.000.00 Date $158.176.68 COST �Schedule o f Insurance Exhibit D General Fund West Shore Community College June 30, 1968 P o l i c y No. BT(1)11511 Company and Purpose The T r a v e l e r s I n s u r a n c e CompanyTravel Insurance 31-97-28 Aetna Insurance Company F i r e and Extended Coverage CG88-64-84 Aetna Insurance Company General Automobile L i a b i l i t y , Non - Owned A u t o m o b i l e s , and General Tenant L i a b i l i t y WC39-07-12 Aetna Insurance Company Workmen's Compensation and Employer's L i a b i l i t y EX1-214-50-86-01 D e t r o i t Automobile I n t e r - I n s u r a n c e Exchange - General Automobile L i a b i l i t y - P r e s i d e n t ' s Leased Automobile (Premium Paid by Automobile L e s s o r ) B98150 W o l v e r i n e I n s u r a n c e Company T r e a s u r e r ' s Bond o f Mr. Bruce R. Draper B84577 W o l v e r i n e I n s u r a n c e Company P u b l i c Employees B l a n k e t Bond CPP605390 Wolverine I n s u r a n c e Company Crime P r o t e c t i o n P o l i c y -9- �Term Coverage Death, Dismemberment and Loss o f S i g h t P r i n c i p a l Sum $100,000.00 - L i m i t s $500,000.00 From To 1-23-68 1-23-69 12- 1-67 12- 1-70 9-21-67 9-21-68 9-21-67 9-21-68 12-13-67 12-13-68 Surety o f $10,000.00 9-11-67 9-11-68 Honesty Only $5,000.00 1 - 1-68 1- 1-69 Robbery Robbery Loss o f Subject 1-23-68 1-23-69 Contents and Improvements on O f f i c e s Located a t 101 l / 2 N. Main, S c o t t v i l l e , M i c h i g a n , $10,000.00 w i t h 8 0 % Co-Insurance B o d i l y I n j u r y - Each Person - Each Occurrence - Aggregate P r o p e r t y Damage - Each Occurrence Uninsured M o t o r i s t s - Each Person - Each A c c i d e n t $100,000.00 300,000.00 300,000.00 50,000.00 10,000.00 20,000.00 Statutory B o d i l y I n j u r y - Each Person - Each Occurrence P r o p e r t y Damage - Each Occurrence Uninsured M o t o r i s t s - Each Person - Each A c c i d e n t Medical Payments - Each Person F u l l Coverage Comprehensive Deductible $100.00 $100,000.00 300,000.00 25,000.00 10,000.00 20,000.00 2,000.00 I n s i d e o f Premises $ 10,000.00 Outside o f Premises 10,000.00 Merchandise - Co-Insurance o f 6 0 % t o L i m i t o f $2,000.00 -9a- �--Comments - General Fund-- On March 6, 1967, t h e v o t e r s o f Mason and Manistee c o u n t i e s e l e c t e d t o e s t a b l i s h a Community C o l l e g e t a x i n g d i s t r i c t . The purpose o f t h e d i s t r i c t i s t o develope and o p e r a t e a Community C o l l e g e . The f i r s t t a x was assessed and c o l l e c t ed as o f December 3 1 , 1967 as f o l l o w s : $223,287.00 209.705.35 $ 13,581.65 Gross Levy 1967 C o l l e c t e d t o June 30, 1968 D e l i n q u e n t a t June 30, 1968 F i n a n c i a l o p e r a t i o n s began under t h e d i r e c t i o n o f t h e College on J u l y 3 1 , 1967 w i t h a g i f t o f $417.60 f r o m t h e Mason - Manistee Community College Fund, t h e promoters and developers o f t h e Community College d i s t r i c t e l e c t i o n . Our examin a t i o n d i d n o t i n c l u d e a r e v i e w o f t h e a c t i v i t i e s o f t h e Mason - Manistee Communit y College Fund, b u t was r e s t r i c t e d t o Community College o p e r a t i o n s o n l y . Cash on hand and i n banks was v e r i f i e d by d i r e c t correspondence w i t h t h e d e p o s i t o r y bank and t h e e x a m i n a t i o n o f s u p p o r t i n g documents. R e c e i p t s and d i s bursements were examined from s a t i s f a c t o r y e v i d e n t i a l m a t e r i a l . Investments were v e r i f i e d by a p p r o p r i a t e r e c e i p t s , l e t t e r s and c a n c e l l e d checks, i n a d d i t i o n t o t h e e x a m i n a t i o n o f bank a d v i c e s . D e l i n q u e n t p r o p e r t y t a x e s were computed from t h e best e v i d e n t i a l m a t t e r av a i l a b l e and a r e s u b s t a n t i a l l y c o r r e c t . Accrued I n t e r e s t Receivable i s t h e e s t i m a t e d i n t e r e s t due, a t June 30, 1968, on t h e i n v e s t m e n t s i n U.S. T r e a s u r y B i l l s . Prepaid Insurance r e p r e s e n t s t h e u n e x p i r e d insurance premiums and d e p o s i t s at June 30, 1968. -10- �R e s t r i c t e d Funds -11- �Balance Sheet Exhibit E R e s t r i c t e d Funds West Shore Community College June 30, 1968 Assets Fund Student Loan Endowment Current Assets Investments - S t a t e Savings Bank o f S c o t t v i l l e : Savings Accounts $ C e r t i f i c a t e o f D e p o s i t No. 4559, Dated May 2, 1967, I n t e r e s t a t 5% $ 200.00 $ 90.00 Total $ 500.00 290.00 500.00 200.00 $ 590.00 $ 790.00 $ None $ None $ None $ 200.00 200.00 $ 590.00 590.00 $ 790.00 790.00 Fund E q u i t y Liabilities Fund E q u i t y Balance June 30, 1968 - E x h i b i t F -12- �Statement o f Fund A c t i v i t i e s Exhibit F R e s t r i c t e d Funds West Shore Community College F i s c a l Year Ended June 30, 1968 Fund Student Loan Endowment Revenues G i f t s f r o m Patrons $ 200.00 $ _ Expenditures Excess Revenues and Fund E q u i t v Exhibit E $ -13- 200.00 590.00 Total $ _ $ 590.00 790.00 _ $ 790.00 �--Comments - R e s t r i c t e d Funds-- The amounts p r e s e n t e d on t h e f u n d balance sheet as Endowment Fund and Student Loan Fund a r e r e s t r i c t e d f o r t h e purpose i n d i c a t e d by t h e t i t l e s and are n o t t o be used t o f i n a n c e t h e g e n e r a l o p e r a t i o n s o f t h e c o l l e g e . The savings accounts and c e r t i f i c a t e s o f d e p o s i t were v e r i f i e d by d i r e c t correspondence w i t h t h e bank and t h e e x a m i n a t i o n o f t h e p r o p e r e v i d e n t i a l m a t e r i a l . -14- � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Business Office Description An account of the resource Audit reports, budget documents Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource AuditReportWSCCJune30,1968.pdf Audit Report https://wsccarchives.org/files/original/836677d3d0c821af1d04cc18265edbb0.pdf 56b4b5f8b4a40dd88b33ab5b3a3546f9 PDF Text Text �A u d i t Report West Shore Community College S c o t t v i l l e . Michigan June 3 0 . 1974 �- -Contents - Auditor's Certificate General Fund - Balance Sheet ~ E x h i b i t A - Statement o f Changes i n Fund E q u i t y ~ E x h i b i t B - Statement o f Fund A c t i v i t i e s - E x h i b i t C - E d u c a t i o n a l A c t i v i t y Cost Center E x p e n d i t u r e s ~ E x h i b i t D - S u p p o r t i v e F u n c t i o n Cost Center E x p e n d i t u r e s - E x h i b i t E - Auxiliary Enterprises - General Fund - E x h i b i t F - Special Project Expenditures _ Exhibit E~l - Comments - General Fund C o n s t r u c t i o n Funds Balance Sheet Exhibit G Statement o f Changes i n Fund E q u i t y - E x h i b i t H Statement o f Fund A c t i v i t i e s Exhibit I Comments - C o n s t r u c t i o n Funds Debt R e t i r e m e n t Funds Balance Sheets Exhibit J Statement o f Fund A c t i v i t i e s Exhibit K Schedule o f Bonded Indebtedness R e s t r i c t e d Funds Balance Sheets Exhibit L - Statement o f Fund A c t i v i t i e s Exhibit M Comments West Shore Community C o l l e g e F o u n d a t i o n ~ Balance Sheet ~ E x h i b i t N - Statement o f Fund A c t i v i t i e s Comments Schedule o f I n s u r a n c e -2 Exhibit 0 �MEMBERS: MICHIGAN ASSOCIATION OF RTIFIEO PUBLIC ACCOUNTANTS OFFICES: 101 MERSKIN & MERSKIN, P.C. CERTIFIED PUBLIC ACCOUNTANTS AMERICAN INSTITUTE OF RTIFIED PUBLIC ACCOUNTANTS STATE STREET (BOX 201) HART, MICHIGAN 49420 PHONE 873-2843 HART, MICHIGAN 49420 906 E. LUDINGTON AVENUE UUDINGTON, MICHIGAN 49431 PHONE 843-9712 PARTNERS: D N L T. MERSKIN, C.P.A. O AD GUY MERSKIN, C.P.A. GERALD E. THORNE, C.P.A. DALE L. FITCH, C.P.A. 101 6 MICHIGAN AVENUE, BENZONIA BOX 506 BEULAH, MICHIGAN 49617 PHONE 882-4319 September 6, 1974 Board o f T r u s t e e s West Shore Community C o l l e g e S c o t t v i l l e , M i c h i g a n 49454 Gentlemen: We have examined t h e statements o f t h e G e n e r a l , C o n s t r u c t i o n , Debt Retirement, R e s t r i c t e d Funds and t h e West Shore Community C o l l e g e Foundation for the f i s c a l year ended June 3 0 , 1974. Our e x a m i n a t i o n was made i n accordance with g e n e r a l l y accepted a u d i t i n g standards and, a c c o r d i n g l y , i n c l u d e d such t e s t s of the a c c o u n t i n g r e c o r d s and o t h e r such a u d i t i n g procedures as were c o n s i d e r e d necessary i n t h e c i r c u m s t a n c e s , except as i n d i c a t e d i n t h e f o l l o w i n g p a r a g r a p h . Procedures were n o t a p p l i e d t o v e r i f y p r o p e r t y t a x e s r e c e i v a b l e o r accounts receivable from s t u d e n t s . I n our o p i n i o n , s u b j e c t t o t h e p r e c e d i n g p a r a g r a p h , t h e accompanying s t a t e ments p r e s e n t f a i r l y t h e a c t i v i t i e s o f t h e v a r i o u s funds o f t h e West Shore Community College f o r t h e f i s c a l year ended June 30, 1974, i n accordance w i t h g e n e r a l l y accepted fund a c c o u n t i n g p r i n c i p l e s a p p l i e d on a b a s i s c o n s i s t e n t w i t h t h a t o f t h e preceding y e a r . Respectfully submitted, M e r s k i n & Merskin -3- ��Balance Sheet Exhibit A General Fund West Shore Community C o l l e g e June 30 1974 1973 Assets Cash on Hand and i n Bank Accounts Receivable Students (See A u d i t o r ' s C e r t i f i c a t e ) Accounts Receivable - Other Delinquent P r o p e r t y Taxes Receivable (See A u d i t o r ' s C e r t i f i c a t e ) National D i r e c t Student Loans Receivable Due from Other Funds Inventories - At Cost Prepaid Expenses $ 15,678.30 7,590.15 12,749.64 5,628.89 26,865.00 15,166.18 24,798.39 300.00 18,854.30 $115.765.95 $ 77.882.76 42,591.56 31,939.27 48,478.40 1,682.36 1,112.89 2.896.00 69,901.48 33,971.43 65,349.40 29,793.59 $128,700.48 Liabilities $ 15,881.81 8,097.51 19,028.17 $200,307.93 22,810.37 200.00 and Fund E q u i t y liabilities Accounts Payable Accrued C o n t r a c t s Payable - I n s t r u c t o r s P a y r o l l Taxes W i t h h e l d and Accrued Due t o Other Funds Due t o Student A c t i v i t y Groups Other L i a b i l i t i e s Fund E q u i t y - E x h i b i t B (Deficit) 1.292.03 (12,934.53) (122.425.17) $115.765.95 -5" $ 77.882.76 �Statement o f Changes i n Fund E q u i t y Exhibit B General Fund West Shore Community College F i s c a l Year Ended June 30. 1974 1973 Fund Balance - Beginning o f P e r i o d ( D e f i c i t ) $(122,425.17) $( 62,348.76) f o r Year - E x h i b i t C 109.490.64 ( 60.076.41) Fund Balance ( D e f i c i t ) - End o f P e r i o d - E x h i b i t A $( 12.934.13) $(122.425.17) Deduct Net D e f i c i t -6" �Statement o f Fund A c t i v i t i e s Exhibit C General Fund e 1 West Shore Community C o l l e g e 1974 1973 Revenues Local Sources P r o p e r t y Tax Levy I n t e r e s t and P e n a l t i e s on D e l i n q u e n t P r o p e r t y Taxes T u i t i o n - Resident - Non-Resident - Community S e r v i c e s Student S e r v i c e Fees A c t i v i t y Admission Fees - Community - Students Child Day Care Center Rental o f P r o p e r t y and Leases G i f t s and Grants I n t e r e s t Earned on Investments Cost Recovery - Sponsored Programs H o s p i t a l A s s i s t a n c e Program A l l Other $ 446,448.90 $ 232.11 163,509.86 12,714.75 14,826.90 7,906.50 7,318.91 3,758.39 12,256.70 450.00 471.01 298.83 2,715.85 1,041.45 152,973.32 20,366.00 8,518.51 7,913.30 5,958.40 2,199.08 4,016.04 5,635.93 6,101.05 1,336.81 - - $ State and F e d e r a l Sources Direct State Aid Aid t o V o c a t i o n a l E d u c a t i o n Emergency Employment Act R e d i s t r i b u t i o n s Grants - P r o j e c t RITE - Work-Study Program - Library - Placement - N a t i o n a l D i r e c t Student Loan - Veterans - Other $ 4.233.01 677.141.72 463,265.00 33,494.39 7,999.17 $ $ Total Revenues 6,168.00 6.170.97 609.604.45 $ 448,971.00 44,459.90 12,837.17 10,821.00 16,000.00 9,067.00 18,035.00 - 29,398.83 5,000.00 17,035.00 26,865.00 4,211.77 4.389.52 591.658.68 381,205.59 - $ 5.299.00 565.490.07 $1.268.800.40 $ Expenditures Educational A c t i v i t y Cost Centers - E x h i b i t D Supportive F u n c t i o n Cost Centers ~ E x h i b i t E $1,175,094.52 $ 615,515.44 685,760.48 408.402.68 $1.094.163.1.6 $ Excess Revenues from O p e r a t i o n s 415.777.94 .031.293.38 $1 174.637.24 $ 143.801.14 $ 1.374.88 $( 902.04 142.899.10 Add Excess Revenues - A u x i l i a r y E n t e r p r i s e s - B o o k Store $ -7- �Statement o f Fund A c t i v i t i e s Exhibit C General Fund West Shore Community College Page 2 F i s c a l Year Ended June 30. 1974 1973 Deduct Transfers _ 19,014.60 42,081.20 Debt Retirement Fund o f March 3 1 , 1969 - Debt Retirement Fund o f September 1,1969 Excess E x p e n d i t u r e s ~ A u x i l i a r y E n t e r p r i s e s - Snack Bar $ Excess Revenues ( E x p e n d i t u r e s ) f o r P e r i o d $ -8- 66.521 .48 109.490 59,232.40 137,176.20 $5 202.975.51 l( 60.076.41 �J Exhibit D E d u c a t i o n a l A c t i v i t y Cost Center - ExDenditures General Fund West Shore Community C o l l e a e Liberal A r t s and Sciences S a l a r y and Waae Costs I n s t r u c t i o n - F u l l Time - P a r t Time S e c r e t a r i a l and O f f i c e Students Directors Librarians Business and Commerce $190,717.80 28,942.17 $ 42,450.94 15,747.19 - Health Sciences Vocational" Continuin Technical Education $ $ 83,710.1" $ 15,080. - 3,785.65 - - 1,243.74 13,975.00 1,816.25 - 7,664.68 24,272.35 - 23,331.1 - 2,703.7 - - 141. • - $223,445.62 Other Costs. Fringe Benefits Retirement Medical L i f e Insurance Remission o f T u i t i o n Professional Services Maintenance and Repair I n s t r u c t i o n a l M a t e r i a l s and Supplies Placement S e r v i c e s L i n e n and U n i f o r m Subscriptions Forms and S u p p l i e s Audio V i s u a l M a t e r i a l s T r a v e l and Conferences Dues Counseling Rent and R e n t a l s P r i n t i n g and D u p l i c a t i n g C a p i t a l Outlay Other $ 60.014.38 $ 47.155.77 $109,745.4' $ 15.221. $ 26,984.37 3,321.50 2,380.96 938.50 127.20 $ $ $ 11,012.65 $ 1,302.15 K 760.9f 56.50 1' - - - - 81.50 - ... - 1,616.31 65.00 - 374.11 49.00 88.00 814.31 - - 6.00 - - 245.74 1,946.70 1,500.00 341.48 1,445.16 4.1 .418.75 - $ 11.541.90 $ $264,564.37 $ 71,556,25 $ 54.597.44 -9- - 7.441.67 31.1 1,446 389.95 [ 521,02 286.36 - - - 1,046.58 2,538.21 5,413.82 334.23 312.25 16.00 - - - $ Total 6,181.30 779.41 575.30 72.00 - 7,997.25 210 - - 1,226.96 - - 958.45 - 517 - 3.50 - • - - 245.74 2,535.00 417 - - $ 26.489.15 - $ 2.622 $ 17.84^ �Continuing Education (0.17 31.53 Educational Administration Dean o f L i b r a r y and E d u c a t i o n a l Academic Vocational Resources Dean Technical $ 15,080.01 $ - - - 4,649.01 141.18 19,000.00 $ - 45.44 $ 15.221.19 $ 23.790.19 14,451.21 8,822.53 15,500.00 6.109.79 $ 44.883.53 L2.65 32.15 30.96 36.50 $ $ $ 33.74 141.18 - - - - - 31.20 - - 1,446.70 39.95 — 37.29 — 210.28 205.51 - - 38.45 - 26.96 3.50 34,59 $ 17,844.43 2,986.25 578.55 297.94 96.50 - - - 163.40 2,359.01 293.30 - $ 60,441.02 8,516.84 5,156.88 1,794.00 1,613.90 1,599.93 $ 49,360.85 7,095.58 4,852.86 892.00 122.40 1,329.97 14,410.98 6,109.11 1,039.95 5,835.11 6.00 1,839.60 8,392.86 529.50 88.00 6.280.91 $138,392.03 $ 30.558.77 $ 80.711.36 $ 29.393.24 $685,760.48 $615-515.44 - - 5,778.28 - 1,839.60 796.25 100.00 1,584.03 205.00 - - -- - 266.94 417.08 2.623,24 $ $ - - $ - $ 23.112.33 $311,875.78 93,408.03 13,438.77 10,818.32 62,832.20 10.510.00 $502,883.10 $ 35.827.83 - 1,462.91 107.00 - - 3,971.15 141.18 19,000.00 $339,623.60 92,293.24 23,071.37 18,795.45 67,475.00 6.109.79 $547,368.45 6.768.58 - - 45.74 35.00 39.15 4,797.24 1,300.12 518.15 231.50 - 815.52 2,335.52 5,785.91 44.84 3,763.94 253.50 200.66 494.20 813.67 28,301.02 60.79 $112,632.34 56.83 517.98 - 3,034.19 900.88 311.32 383.00 40.00 $ T o t a l Cost Centers F i s c a l Year June 30. 1974 1973 $ - 150.00 17,794.28 239.34 - - - -9a- - 3,853.02 23,274.44 - �Exhibit E SuDDortive F u n c t i o n Cost Center ExDenditures General Fund West Shore Community C o l l e a e Student Personnel S a l a r y and Waae Costs Deans Staff S e c r e t a r i a l and O f f i c e Students Directors Office of t h e Pres i d e n t Board o f Trustees Busine: Office $ $ $ 27,500.00 $ $ 19,0( 10,5' 22,0: 2,1 $ 35.209.91 $ $ 53.7 $ $ 18,128.36 8,174.33 3,622.59 14.667.62 $ 44.592.90 $ $ - $ 5,295.80 1,324.85 689.34 790.00 3,080.00 - 7,709.91 - - - - - - - 2,164.78 - 884.76 - 4,577.29 1,019.89 402.31 463.00 109.28 $ - 1,152.00 m 7,472.60 369.57 - - - - - - - 421.48 702.16 2,021.57 111.50 - 2,600.00 - - 389.34 2,452.00 - - - 8,458.70 1,303.71 244.95 6,659.34 308.40 - - 2,277.60 - - - 1,= 1 8.10 217.74 ] c - ] - 384.04 - ( 485.00 1,196.00 - $ 12.350.94 $ 51.362.59 5 17.507.14 6 $ 70. CM -10 - O $ 17. ID $ 16.152.68 6.222.00 $ 17.507.14 $ 24.388.00 $ 68.980.90 123.25 4,016.32 - - 1,1 - - - 7 2,6 - - - 6,6 1,7 8 - MT Other Costs Fringe Benefits Retirement Group M e d i c a l Group L i f e Insurance Remission o f T u i t i o n Professional Services Contracted Services M a t e r i a l s and S u p p l i e s ~ General Forms Vehicle Groundskeeping _ Maintenance and Repair Equ ipment Vehic l e Plant Gasoline Rentals Insurance - General Subscriptions T r a v e l and Conferences Advertising Catalogs U t i l i t i e s ~ Heat - Electricity Telephone Postage Expense Allowances A c t i v i t y Expenses P r i n t i n g and D u p l i c a t i n g Memberships and Dues Sc h o l a r s h i p s C a p i t a l Outlay Other Student Activities ( �Business Office Cultural Events Spec i a l Projects Exhibit E-l $ 19,000.00 10,500.00 22,027.08 2,193.62 Physical Plant 5,724.81 7.494.90 $ 44.920.57 3,327.55 696.67 310.55 144.00 5,095.45 1,520.69 1,536.76 623.00 7.20 1,192.00 1,334,96 213.45 1,981.74 J_ 26.00 6,678.93 1,737.35 868.20 711.00 2,672.50 1,195.82 $ 1,361.67 31,700.86 12,167.67 954.03 167.07 1,035.35 175.96 10,361.00 186.59 940.10 112.60 236.99 588.41 2,435.94 356.89 11.20 9,692.33 21,341.00 11,727.68 4,777.79 628.71 15.00 166.40 3,767.51 2,985.00 1 18.20 7,113.69 8-07) 17.276.36 70.997.06 $ 390.50 16.046.66 970.50 781-33 84.311.74 7.118.69 $ 50.853,05 $.129.232.31 •10a- $ 46,500.00 64,050.98 41,509.77 16,202.08 44.987.64 $213.250.47 $ 61,937.31 83,359.64 34,540.67 8,667.62 24.466.65 $212.971.i 25,001.02 6,299.45 3,807.16 3,883.00 13,225.19 5,733,48 $ 21,891.86 5,748.26 2," ..14 1,028.50 8,084.76 16,305.79 8,040.91 213.45 3,721.76 3,598.45 4,661.06 22,825,12 34.806.39 4,534.28 53.720.70 T o t a l Cost Centers F i s c a l Year June 30 1974 1973 7,816.63 135.50 141.43 6,014,13 13,529.34 954.03 167.07 1,035.35 175.96 10,361.00 317.94 9,327.62 2,733.78 111.50 9,692.33 21,341.00 11,727.68 4,777.79 2,984.04 8,458.70 6,255.67 3,505.35 10,840,34 3,248.10 7.403.96 $195.152.21 2,183.83 891.42 2,510.58 3,278.95 20,036.17 360.29 12,600.22 3,244.37 7,806,53 10,637.01 22,400.86 13,843.49 3,840.54 1,800.00 6,112.63 3,313,90 3,131.50 7,171,70 6,185.54 1,423.52 $202.806.05 $408.402.68. $415.777, �A u x i l i a r y E n t e r p r i s e s General Fund Exhibit F Statement o f Revenues and E x p e n d i t u r e s West Shore Community C o l l e g e Snack Bar F i s c a l Year Ended June 30 1974 1973 Book S t o r e F i s c a l Year Ended June 30 1974 1973 $ 40.689.61 39.556.04 28.609.44 $ 24.260.83 $ 22,551.28 30.939.57 $ 53,490.85 24.113.33 23,765.52 29,352.32 53,117.84 22.551.28 259.09 14.850.57 $ 15,109.66 685.06 332.36 11.560.49 11,892.85 259.09 $ 29.377.52 30.566.56 14.424.60 $ 11.633.76 Gross Margin on Sales $ 11,312.09 L48 14,184.84 12,627.07 Expenditures ~ D i r e c t Costs S a l a r i e s and Wages Manager Service S t a f f Students $ 5,870.98 2,294.89 $ 8.165.87 5,104.68 1,263.36 964.40 7.332.44 6,306.03 8,689.60 1.074,69 $ 16.070.32 6,095.35 8,991.39 1,296.88 $ .16.383.62 $ 1,061,57 343.35 111.97 72.00 91.72 65.00 21.45 708.71 235.32 102,92 31,50 145.80 65.00 1.50 Revenue - Sales Cpgt o f Sgie.s Beginning Inventory Purchases Ending Inventory Cost of Sales Other Costs Fringe B e n e f i t s ~ Retirement Group M e d i c a l Insurance Group L i f e Insurance Remission o f T u i t i o n Supplies Dues T r a v e l and Conventions Laundry S e r v i c e s Loss on Obsolete I n v e n t o r y Repairs and Maintenance Other $ 1,952.45 252.15 399.35 Excess Revenues Exhibit C 1,644.70 235.32 110.90 181.05 320.65 25.90 234.32 190.25 1,231.90 $ Total Expenditures $ 4.28 1,771.34 36-43 2.559.08 259.58 935.40 3.540.20 $ 9.937.21 .2,891.52 19.610.52 $ 1.374.88 (Expenditures) -11- $( 902.04) $( 5.425.68) 308.54 $ 2.810.36 $ 19.193.98 �Special Project Expenditures Exhibit E - l General Fund West Shore Community College F i s c a l Year Ended June 30. 1974 Salary and Project Rite Veteran Habitat Imorovement Outreac h $ C h i l d Day Care Center T o t a l of A l l Cost Centers $10,825.12 Placement Office $22,825.12 Waae Costs $ - $12,000.00 - - 3,598.45 $ Director Secretarial & Office Staff Students Other Costs Fringe B e n e f i t s Retirement $ Group Medical Insurance Group L i f e Insurance Remission o f Tuition Contracted Services M a t e r i a l s and Supplies 170. 40 Travel P r i n t i n g and Duplicating Scholarships Other 170. 40 $ $ 170.40 $ - - - .154.75 $15,753.20 - $ 3.524.66 - $ $ 1,346.05 - $ $ 1,981.50 - 197.10 4.506.31 $15,528.53 3,524.66 - $ - 3,598.45 3,721.76 4.661.06 $34,806.39 $ 3,327.55 598.76 - - 97.91 696.67 234.52 - - 76.03 310.55 72.00 - - 72.00 144.00 7.20 - - - $11,906.10 $27,659-30 814.40 833.94 7.20 1,981.74 2,435.94 $ 252.70 $ 86.63 390,50 $ 3.630.83 3,767.51 2,985.00 390.50 $16,046.66 $ 252-70 $ 3.611.29 $19,159.36 $50,853.05 - - 3,767.51 2,985.00 - 15.54 71.09 252.70 899.10 1,360.51 - - -12- - - �Comments - General Fund Cash on Hand and i n panks _ Demand D e p o s i t s S t a t e Savings Bank o f S c o t t v i l l e - L u d i n g t o n S t a t e Bank - Manistee Bank and T r u s t Change and P e t t y Cash Funds 311.34 14,790.47 100.00 680.00 $ 15.881.81 AccQunt.s,,Receivable , ~ Students The balance r e p r e s e n t s p r i m a r i l y t u i t i o n and t e x t b o o k d e f e r r a l s unpaid by students f o r past and c u r r e n t y e a r s . $ 8,097.£1 I t i s e s t i m a t e d t h a t a p p r o x i m a t e l y $3,500.00 i s u n c o l l e c t a b l e , At;punts Receivable ,-, Other Federal - Basic Economic O p p o r t u n i t y Grant $ - Supplemental Economic O p p o r t u n i t y Grant - Work Study - Veterans Outreach - Emergency Employment Act R e d i s t r i b u t i o n s State M i c h i g a n Higher E d u c a t i o n A s s i s t a n c e A u t h o r i t y - Placement O f f i c e Grant Delinquent P r o p e r t y Taxes D e t a i l by Years: 714.00 2,764.70 3,184.00 4,211.77 3,151.70 1,000.00 4.002.00 12., 028 -17 Levy 260,905.30 381,205.59 446.448.90 Collec t i o n s Through June 30. 1974 $ 260,761.12 380,630.58 441.539.20 $1.088.559.79 $1.082.930.90 $ 5.628.89 24,113.33 685.06 $ 24,798-39 Year 1969 1973 1974 Inventories - At Cost Bookstore Snack Bar Prepaid Expenses Postage Meter Deposit Balance 144.18 575.01 4.909.70 300.00 National D i r e c t Student Loans Receivable During t h e c u r r e n t p e r i o d t h e c o l l e g e began p a r t i c i p a t i n g i n t h e N a t i o n a l D i r e c t Student Loan Program. The balance r e p r e s e n t s t o t a l loans o u t s t a n d i n g a t June 30, 1974, Due Frpm Other Funds C o n s t r u c t i o n Fund o f 1969 R e s t r i c t e d Funds 5,441.02 9.725.16 15,166-18 Aecpunts Payable The balance i n c l u d e s reimbursement t o Off-Campus Jork Study Employers o f $5,211.40. -13- �Comments ~ General Fund - ( c o n t i n u e d ) Accrued C o n t r a c t s Payable - I n s t r u c t o r s The l i a b i l i t y r e p r e s e n t s t h e J u l y and August payments due on educator's c o n t r a c t s f o r t h e c o n t r a c t year ending August 3 1 , 1974. $ 31.939.27 P a y r o l l Taxes W i t h h e l d and Accrued The balance i s composed o f t h e f o l l o w i n g M i c h i g a n S t a t e Income Tax W i t h h e l d F e d e r a l Income Tax W i t h h e l d R e t i r e m e n t W i t h h e l d and Accrued Other 48.478.40 Due t o Other Fun^s The balance r e p r e s e n t s amounts due t o Debt Retirement 5 ( 1,335.99 6,565.94 41,235.21 658.74) Funds. Other The balance r e p r e s e n t s t h e f e d e r a l p o r t i o n o f unexpended N a t i o n a l D i r e c t Student Loan monies. T h i s amount i s t o be c a r r i e d f o r w a r d as a r e d u c t i o n o f e n t i t l e m e n t s o f the succeeding f i s c a l y e a r . -14- �C o n s t r u c t i o n Funds -15- �Balance Sheet Exhibit C CensttMction Fund, of December 19, 1969 West Shore Community C o l l e g e June 3 0 , 1974 [Assets $ [Cash i n Bank 'Federal C o n s t r u c t i o n G r a n t s R e c e i v a b l e 349.41 10.000.00 $ 10.349.41 L i a b i l i t i e s and Fund E q u i t y liabilities Accounts and C o n s t r u c t i o n Payables D e f e r r e d Income Due t o General Fund Fund E q u i t y - E x h i b i t H $ 19,546.37 10,000.00 5,441.02 _(24,637.98) $ 10,349-41 -16- �Statement o f Changes i n Fund E q u i t y Construction Exhibit H Fund o f December 19. 1969 West Shore Community C o l l e g e F i s c a l Year Ended Jung 3 0 , 1974 496.20 Fund Equity June 3 0 , 1973 Additions Deductions Excess E x p e n d i t u r e s - E x h i b i t I 25.134.18 Fund D e f i c i t June 30. 1974 - E x h i b i t G $(24,637.98) -17- �Exhibit I Statement o f Fund A c t i v i t i e s C o n s t r u c t i o n Fund o f December 19. 1969 West Shore Community C o l l e g e F i s c a l Years Ended June 3 0 , 1970, 1 9 7 1 , 1972, 1973 and 1974 June 30 1970 Revenues Proceeds o f Bond Issue I n t e r e s t Earned on Investments T r a n s f e r from C o n s t r u c t i o n Fund o f March 3 1 , 1969 West Shore Community College Foundation Grants Governmental S t a t e o f Michigan U. S. Government - H.E.W. Equipment Other $1,500,000.00 58.93 pnditure Finance S e r v i c e s A r c h i t e c t s and E n g i n e e r i n g C o n s t r u c t i o n Payments ~ J . C. C o n s t r u c t i o n : Voc. - Tech. Center IMC Other R e l o c a t a b l e B u i l d i n g Payments A d d i t i o n a l Services f o r Buildings Equipment - Voc. - Tech. - S c i e n t i f i c and Lab _ - Audio Visual - Library - Office - Maintenance - Other F u r n i t u r e - Voc. - Tech. - Library L i b r a r y Books S i t e Improvements Land Purchases Transfers Construction _ Fund o f March 3 1 , 1969 General Fund Pre Sale E x p e n d i t u r e s Miscellaneous 10,713.24 13,436.82 107,503.25 121,588.47 17,058.51 5,649.48 2,239.01 898.00 7,500. 117,386. $ 140,991. 34,999.49 452,866.66 142,141.45 16,326.54 17,868.84 57,886.10 35,937.00 18,712.69 6,912.73 23,395.98 5,086.97 31,949.65 11,126.23 21,874.89 18,885.26 13,839.01 43.80 2,814.15 36,113.85 21,775.71 75,792.10 $ 52,239.52 201,310.38 ] 8.00 452.571.92 $1.369.599.01 -18- 16,105.60 278,559.00 43,553.00 $1.822.170.93 Excess,, Revenues. (Expenditgre.sj 1971 $1.126.431.86 ,$( 985,440.26) �June 30 1972 $ 14,767.22 276.82 5.60 1973 $ 1974 59.04 $ 1.60 $ 258,604.00 462,750.00 37,323.44 1.700.00 775,421.48 $ $ 9.49 5.66 1.45 $ - .1.86 $1.090.5.11.19 0.26) i( $ $ 32,826.00 _ $ - 32,912.00 268.85 - - - 1,200.00 - 2,408.40 28,561.20 534.16 - - - - 846.32 4,927.20 12,908.18 — - - $ 315.089.71 ) $( - 86.131.88 $ 68.572.84) $( 558,663.00 656,515.00 37,323.44 .1.700.00 $2,788,969-05 10,713.24 84,416.62 12,140.00 _ - 22,506.55 15,242.98 — •9.52 0.38 _ 23,545.44 - 3.80 4.15 3.85 5.71 23,840.31 32,826.00 _ 5,083.74 906,165.05 426.00 16,006.00 34,822.88 35,808.48 7,696.79 8,955.77 12,958.71 21,338.70 376.70 3,122.84 6.54 8.84 6.10 7.00 2.69 2.73 5.98 6.97 17.559.04 $1,500,000.00 30,990.79 276.82 3,500.00 • u 14,000.00 - _ - - 3,500.00 0.00 5.00 Combined - 57.960.18 565,453.65 1,071,851.94 426.00 65,513.39 52,691.72 2165,483.05 60,692.30 35,726.34 50,671.65 46,166.84 5,463.67 3,122.84 31,993.45 13,940.38 94,249.79 60,831.15 13,839.01 128,031.62 201,310.38 18.00 $2,813,607.03 25.134.18) $( -18a- 24.637.98) �Comments ~ C o n s t r u c t i o n Funds A l l major c o n s t r u c t i o n has been completed as o f June 30, 1973. Qash i n Bank Funds are d e p o s i t e d i n banks as f o l l o w s : L u d i n g t o n S t a t e Bank N a t i o n a l Bank o f L u d i n g t o n Manistee Bank & U u s t 347.41 1.00 1.00 349.41 Pue from General Fund I n accordance w i t h Board a c t i o n o f August 17, 1972, temporary advances were authorized t o be made t o t h e General Fund t o o f f s e t f u t u r e c a p i t a l o u t l a y $ 29.793.59 expenditures. Grant Amount Received as o f June 30 1971 1972-1973 1970 U.S. Government H.E.W. $397,102.00 $ Title I 219,413.00 43,553.00 Title I 40,000.00 State o f Michigan 276,104.00* Spec i a l Equipment 37.323.44 $969.942.44 $43.553.00 $ 92,570.00 24,816.00 $377,247.00 72,319.00 13,184.00 7,500.00 258,604.00 $124.886.00 1974 $19,855.00 10,971.00 2,000.00 37.323.44 $758.677.44 ~ $32.826.00 Unpaid Amount $ 10,000.00 $10.000.00 * I n c l u d e s $10,000.00 g r a n t a p p r o p r i a t e d i n 1970 f o r t h e p l a n n i n g o f academic c l a s s room f a c i l i t i e s which was r e a p p r o p r i a t e d by t h e S t a t e o f Michigan Department o f A d m i n i s t r a t i o n t o a p p l y t o t h e A r t s and Careers Center B u i l d i n g . The unpaid amount i s a l s o shown as D e f e r r e d Income under L i a b i l i t i e s . Accounts and C o n s t r u c t i o n Payables The balance i s composed o f t h e f o l l o w i n g : A r c h i t e c t Fees I n s t r u c t i o n a l Media Center - A r t s and Careers B u i l d i n g -19- $ 7,406.37 12.140.00 $ 19,546.37 �Debt Retirement Fund -20- �Balance Sheets Exhibit J Debt R e t i r e m e n t Funds West Shore Community Collec June 30. 1974 Fund o f March 3 1 , September 1 , 1969 1969 Cash C e r t i f i c a t e s of Deposit Property Taxes Receivable Due from General Fund 286.74 17,493.46 629.60 . S>4£u40 637.04 38,864.33 1,481.91 _ 1.135.96 $ $ 18.956.20 $ 18.956.20 Fund E q u i t y - E x h i b i t K -21- $ 42,119.24 $ 42.119.24 �Exhibit K Statement o f Fund A c t i v i t i e s Debt Retirement Funds West Shore Community C o l l e g e June 3 0 . 1974 Fund o f September 1 March 3 1 , 1969 1969 Revenues T r a n s f e r s from General Fund P r o p e r t y Tax Levy I n t e r e s t on Investments $ 19,014.60 $ 20,000.00 37,910.00 121-20 $ 58.03.1 .20 $ 50,000.00 84,000.00 173.40 $134,173.40 $ 18.951.57 $ 42.083.98 $ Expenditures Bond Redemptions Interest Agent Fees Excess Revenues $ 42,081.20 133,994.18 182.00 $176,257.38 $ 57,889.54 78.63 76,982-77 $ (Expe.ndlture.s) Fund E q u i t y June 30. 1973 Additions Excess Revenues (See Above) 4.63 35.26 $ 18.956.20 42.083.98 $ 42.119.24 Deductions Excess E x p e n d i t u r e s $ $ Fund E q u i t y June 30. 1974 - E x h i b i t J $ 18.956.20 $ 42,119-24 18.951.57 -22- �Schedule o f Bonded Indebtedness Issue of Match L i 1969 On March 1 , 1969, t h e West Shore Community C o l l e g e d i s t r i c t issued $750,000.00 of 1969 Community College b u i l d i n g bonds. The bonds are payable from ad valorem t a x e s , l e v i e d w i t h o u t l i m i t a t i o n as t o r a t e o r amount as p r o v i d e d by S e c t i o n 6, A r t i c l e I I , of the C o n s t i t u t i o n o f the State of Michigan. The amounts o f p r i n c i p a l and i n t e r e s t payments are as f o l l o w s : $ 18,355.00 17,605.00 16,855.00 16,105.00 15,355.00 14,455.00 13,630.00 12,835.00 11,775.00 10,675.00 9,575.00 8,475.00 7,075.00 5,675.00 4,262.50 2,850.00 1.425.00 186.982.50 $ $ The bonds are i n $5,000.00 denomination rates as f o l l o w s : Bonds M a t u r i n g 1970 - 1979 1980 1981 - 1982 1983 - 1985 1986 - 1987 1988 - 1989 1990 - 1991 O v e r a l l n e t i n t e r e s t c o s t i s 5.6361 % -23" Interest Payable a $ Payable March 1 , Interest Princ i p a l CD Maturity Year 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 $ 18,355.00 17,605.00 16,855.00 16,105.00 15,355.00 14,455.00 13,630.00 12,835.00 11,775.00 10,675.00 9,575.00 8,475.00 7,075.00 5,675.00 4,262.50 2,850.00 1,425.00 25,000.00 25,000.00 25,000.00 25,000.00 30,000.00 30,000.00 30,000.00 40,000.00 40,000.00 40,000.00 40,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50.000.00 650.000.00 $ 186.982.50 Annual Requirement $ 18,355.00 60,960.00 59,460.00 57,960.00 56,460.00 59,810.00 58,085.00 56,465.00 64,610.00 62,450.00 60,250.00 58,050.00 65,550.00 62,750.00 59,937.50 57,112.50 54,275.00 51.425.00 $1,023,965.00 each w i t h i n t e r e s t a t v a r i o u s i n t e r e s t 6.00 5.50 5.30 5.50 5.60 5.65 5.70 % % % % % % % �Schedule o f Bonded - Indebtedness (continued) psue o f September 1 . 1969 During December, 1969 t h e c o l l e g e d i s t r i c t s o l d $1,500,000.00 o f bonds d e s i g n a t e d "1969 Community C o l l e g e B u i l d i n g Bonds, S e r i e s I I . " The proceeds are f o r t h e urpose o f e r e c t i n g , f u r n i s h i n g and e q u i p p i n g b u i l d i n g s and s i t e purchase and [development c o s t s . The bonds are payable from ad valorem taxes l e v i e d w i t h o u t l i m i t a t i o n as t o rate or amount, as p r o v i d e d i n S e c t i o n 6, A r t i c l e IX o f t h e C o n s t i t u t i o n o f Michigan of 1963. The annual debt r e q u i r e m e n t s are as f o l l o w s : Maturity Year 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 $ $ Pavable March 1 . Interest Princ i p a l $ 40,500.00 38,250,00 36,000.00 33,750.00 31,500.00 29,250.00 27,000.00 24,000.00 21,000.00 18,000.00 15,000.00 12,000.00 9,000.00 6,000.00 3.000.00 344.250.00 The bonds are i n denominations 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100.000.00 $1,350,000.00 Interest Payable Sept 1 , $ 40,500.00 38,250.00 36,000.00 33,750.00 31,500.00 29,250.00 27,000.00 24,000.00 21,000.00 18,000.00 15,000.00 12,000.00 9,000.00 6,000.00 3,000.00 $ 344.250.00 o f $5,000.00 each w i t h i n t e r e s t a t 6%. -24- Annual Requ irements $ 40,500.00 153,750.00 149,250.00 144,750.00 140,250.00 135,750.00 131,250.00 151,000.00 145,000.00 139,000.00 133,000.00 127,000.00 121,000.00 115,000.00 109,000.00 103.000.00 $7.038,500.00 �Restricted Funds -25- �Balance Sheets Exhibit l R e s t r i c t e d Funds West Shore Community C o l l e g e June 30. 1974 Student Loan Fund Endowment Fund Library Fund Scholarship Fund $ $ $ 680.94 $ 17,992.19 2,000.00 650.00 7.700.00 1.330.94 $ 27.692.19 Assets Savings Accounts Investment - At Cost Loans Receivable - C u r r e n t Due from General Fund C e r t i f i c a t e s o f Deposit 1,284.41 339.68 128.00 83.50 500.QO $ 1.495,91 $ 839.68 $ l i a b i l i t i e s and Fund, E q u i t y Due t o General Fund Fund E q u i t y - E x h i b i t M $ 1.495.91 $ 1.495.91 -26" 839.68 $ 839.68 1.330.94 $ 1.330.94 9,808.66 17.883.53 �Statement o f Fund A c t i v i t i e s Exhibit M R e s t r i c t e d Funds West Shore Community C o l l e g e F i s c a l Year Ended June 30. 1974 Student Loan Fund Endowment Fund Library Fund Scholarship Fund $ $ $ 25.00 $ 15,627.25 25.00 . 67.22 559.01 25.00 $ 92.22 $ 16.186.2.6 Revenues Donations, G i f t s and Grants I n t e r e s t Earned on Investments 11.50 11.50 $ Expenditures Scholarships Allowed $ Excess Revenues (Expenditures) $ u.50 Fund E q u i t y - June 30. 1973 $ 1,484.41 $ $ Additions Excess Revenues - See Above $ s> $ $ 10.978.19 25.00 $ 92.2? $ 5.208.07 $ 814.68 $ 1,238.72 $ 12,675.46 11.50 1,495.91 $ 25.00 839.68 $ 92.22 1,330.94 5.208.07 $ 17,883.53 1.495.91 $ 839.68 $ 1.330.94 $ 17.883.53 Deductions Excess E x p e n d i t u r e s Fund Equity - June 30. 1974 ixhibit L -27- �Comments ~ R e s t r i c t e d Funds The Funds are f o r t h e purpose and t o be a d m i n i s t e r e d as f o l l o w s : Student Loan Fund - For t h e purpose o f p r o v i d i n g t u i t i o n o n l y loans t o s t u d e n t s . The Student F i n a n c i a l A i d s Committee, composed o f t h e Deans o f Business S e r v i c e s , Student Personnel and T e c h n i c a l - V o c a t i o n a l , Academic C u r r i c u l a and t h e P r e s i d e n t , w i l l make t h e d e t e r m i n a t i o n o f e l i g i b i l i t y . There are no p r i n c i p a l o r i n t e r e s t restrictions. Endowment Fund - For t h e purpose o f p r o v i d i n g books and fees t o w o r t h w h i l e s t u d e n t s and o t h e r purposes as proposed and s t i p u l a t e d by t h e d o n o r . The fund w i l l be adm i n i s t e r e d by t h e Student F i n a n c i a l Aids Committee. There are no p r i n c i p a l o r interest restrictions presently. L i b r a r y Fund - For t h e purpose o f p r o v i d i n g books and o t h e r l i b r a r y i n s t r u c t i o n a l media as determined by t h e D i r e c t o r o f t h e I n s t r u c t i o n a l Media C e n t e r , w i t h e x e c u t i v e o f f i c e a p p r o v a l . The funds a r e n o t t o be d i s b u r s e d f o r b u i l d i n g s o r b u i l d i n g improvements. S c h o l a r s h i p Fund - For t h e purpose o f p r o v i d i n g t u i t i o n and o t h e r c o s t s o f a complete course o f study o f f e r e d by t h e c o l l e g e . The fund w i l l be a d m i n i s t e r e d by the Student F i n a n c i a l A i d s Committee. There are no p r i n c i p a l o r i n t e r e s t r e s t r i c t i o n s . The investment i s r e p r e s e n t e d by a Pennsylvania Power Company, F i r s t Mortgage Bond, 8% S e r i e s due October 1 , 2001. The bond i s dated October 2 7 , 1972, and i n t e r e s t i s p a i d on A p r i l 1 and October 1 o f each y e a r . The bond i s a d o n a t i o n from the McGhan f a m i l y and i s d e s i g n a t e d as t h e McGhan S c h o l a r s h i p Fund. -28- ��Balance Sheet Exhibit N West Shore Community College Foundation ..June 3Q, 1974 Assets $_ 2,591.14 Cash i n Bank Fund E q u i t y Balance June 30, 1973 - E x h i b i t 0 $ -30- 2.591.14 �Statement o f Fund A v t i v i t i e s West Shore Community College Exhibit 0 Foundation F i s c a l Year Fnded June 3 0 . 1974 Rs.v.snv.e.s Donations $ Expenditures Contracted Services Other 900.00 10.00 Excess Revenues 910.00 $ Fund Balance - June 3 0 , 1973 - June 3 0 , 1974 1,100*00 190.00 2.401.14 Exhibit N -31- $ 2.591,14 �Comments The Board o f Trustees e s t a b l i s h e d the West Shore Community C o l l e g e Foundation for the purposes o f r e c e i v i n g and managing c o n t r i b u t i o n s from p a t r o n s f o r the good of the i n s t i t u t i o n . A l l c o n t r i b u t i o n s r e c e i v e d were f u l l y u n r e s t r i c t e d as t o e a r n i n g s and p r i n c i p a l . -32- �Supplementary -33 Information �gchedule Qf Insurance West Shore Community C o l l e g e June 3 0 . 1974 P o l i c y No. Company AYA 894152 American and Foreign Insurance Company 712101 76701216 Auto-Owners Limits Coverage Comprehensive Business P o l i c y A l l B u i l d i n g s and P e r s o n a l P r o p e r t y Co-Insurance 90% E x t r a Expense T u i t i o n Fees Audio V i s u a l Equipment D e m o l i t i o n - Each B u i l d i n g B o d i l y I n j u r y - Each Person - Each Occurrence - Aggregate P r o p e r t y Damage - Each Occurrence - Aggregate M e d i c a l Payments - Each Person - Each Occurrence Automobile ~ B o d i l y I n j u r y - Each Person - Each Occurrence P r o p e r t y Damage - Each Occurrence U n i n s u r e d M o t o r i s t - Each Person - Each Occurrence Comprehensive C o l l i s i o n ($100.00 D e d u c t i b l e ) Open Stock B u r g l a r y - 60% Co-Insurance Student Services B u i l d i n g Vocational Technological Building Crime Coverage Employee D i s h o n e s t y Loss I n s i d e Premises Loss Outside Premises D e p o s i t o r s Forgery B o i l e r s and Machinery - p e r a c c i d e n t Fine A r t s and J e w e l r y B i n d e r Commercial Umbrella P o l i c y Each Occurrence Retained L i m i t P S 750066 C Workmen's Compensation Royal Globe I n s . Co. 100,000 300,000 50,000 20,000 40,000 ACV ACV 23,000 20,000 50,000 5,000 5,000 5,000 500,000 1,000,000 10,000 10,000 Non-Owner Occupied B u i l d i n g F i r e , Extended Coverage and A l l Risk 2240 W. Sugargrove Road 2000 W. Sugargrove Road 1758 W. Sugargrove Road -34- 1/1/74-77 30,000 220,000 31,740 25,000 300,000 300,000 300,000 50,000 50,000 1,000 10,000 Statutory 727601 T r e a s u r e r ' s Bond 01686558 - Auto-Owners W F 197596 K $ 3,122,500 Term 1/1/74-77 1/1/74-75 1/1/74-75 1/1/74-75 20,000 15,000 15,000 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource Business Office Description An account of the resource Audit reports, budget documents Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Title A name given to the resource AuditReportWSCCJune30,1974.pdf Audit Report