(70,518) (3,449) DR.DO NA LD J.A YO,PRESIDENT N IC HO LLS STA TE U N IV ERSITY STATE O F LO UISIA NA A uditreport,june 30,1996
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1 LEGISLATIVE A UDITOR DR.DO NA LD J.A YO,PRESIDENT N IC HO LLS STA TE U N IV ERSITY STATE O F LO UISIA NA A uditreport,june 30,1996 EXPENDITURES O F O UTSIDE O RGA NIZATIO N M A DE FO R O R IN BEHA LF O F THE NICHO LLS STATE!UNIVERSITY INTERCO LLEG IATE A THLETICS PRO G RA M Review of FinancialA ctivities ofo utside O rganizations W e obtained w ritten representation from m anagem entofthe university thatthe Colonel's C lub w as the only outside organization created fororin behalfofthe athletic departm ent. In addition,w e obtained from the university a statem entof activities forthe yearended June 30,1996,forthe Colonel's Club and traced the figures from the statem ents to the university athletic departm ent's general ledger. Figures from the Colonei's Club account were traced to the club's supporting records. W e also reconciled the expenses incurred by the outside organization for or in behalf of the athletic departm ent to the statem ent of revenues and expenditures,and w e reconciled direct paym ents ofthe outside organization to the accounting records of the university and to the revenues reported on the statem entofrevenues and expenditures (Statem enta). The financial activity of the C olonel's C lub account w ithin the N icho ls C o lege Foundation,Incorporated,forthe yearended June 30,1996,is as fo low s: Fund balance,july 1,1995 Revenue and othersupport(donation, fund-raisers,etc.) Transferto Nichorls State University Athletic Agency Fund Expenses fororin behalfofthe Nicho ls State U niversity Athletic Departm ent-direct reim bursem ents Fund balance.june $68,487 24,478 (70,518) (3,449) $ The university receives m onthly financialstatem ents from the boosterclub as a basis to m onitorspending ofthe organization forathletics. The Nicho ls Co lege Foundation's statem ents are audited annua ly by an independentcertified public accounting firm.
2 LEGISLATIVE A UDITOR D R.D O NA LD J.A Y O,PR ESID ENT NICH O LLS STA TE UNIVERSITY STATE O F LO UISIA NA A uditreport,june 30,1996 NTER NA L CO NTRO L PO LIC IES A ND PRO CEDURES RELATING TO INTERCO LLEG IATE ATH LETICS - A G REED -UPO N PRO CEDURES M anagem entofn ichofls State University is responsible forestablishing and m aintaining a system of internalaccounting control. In fulfiling this responsibility,estim ates and judgments by managementare required to assess the expected benefits and related costs ofcontrolprocedures. The objectives ofa system are to provide management w ith reasonabte,butnotabsotute,assurance thatassets are safeguarded againstloss from unauthorized use ordisposition and thattransactions are executed in accordance w ith m anagem ent's authorization and recorded properly to perm it the preparation of financialstatem ents in accordance w ith genera ly accepted accounting principles. Because of inherent lim itations in any internal control structure, errors and/or irregularities may,nevertheless,occurand notbe detected. Also,projection ofany evaluation ofthe system to future periods is subjectto the risk thatprocedures may becom e inadequate because ofchanges in conditions orthatthe degree ofcom pliance w ith the procedures m ay deteriorate. The m inim um agreed-upon procedures, applied to certain aspects of the athletic departm ent's internalaccounting control,were m ore lim ited than would be necessary to express an opinion on the system of internal accounting controltaken as a w hole. Because our study and evaluation w as lim ited to applying m inim um agreed-upon procedures discussed in the fo low ing paragraphs to certain aspects of the internal accounting control,w e do not express an opinion on w hether the system of internal accounting controlofthe Nicho ls State University Athletic Departm ent,in efectforthe yearended June 30,1996,taken as a whole,was suficientto meetthe objectives stated previously. In connection w ith our appsed procedures, w e noted certain opportunities for im provem ent in the system of internal accounting controḷ O ur m inim um agreed-upon procedures are as fo low s: Testof the InternalC ontrolenvironm ent W e perform ed a prelim inary review of the internal accounting control of the athletic departm ent by reviewing the organizational chart prepared by the associate athletic director and by perform ing tests on the flow oftransactions through the accounting system.
3 LEGISLATIVE A UDITOR DR.DO NA LD J.AYO,PRESIDENT N IC t'io LLS STATE U N IV ERSITY STA TE O F LO U ISIA NA A uditreport,june 30,1996 B oosterg roup A ctivities W e review ed the university's procedures form onitoring boostergroup activities. The vice presidentforinstitutionaladvancem ent,w ho is an ex-oficio m em beron the board ofthe Nicho ls Co lege Foundation,Incorporated,and to w hom the athletic director reports,attends board m eetings and receives annualfinancial statem ents from the foundation. In addition, the associate athletic director m aintains the financial records of the Colonel's C lub account w ithin the foundation../~ ectfulysubmited;/ LL:LW M :dl DanielG.Kyle,C PA,C FE Legislative A uditor
4 LEGISLATIVE A UDITOR DR.DO NA LD 3.AYO,PRESIDENT N IC HO LLS STATE U NIV ER SITY STATE O F LO UISIA NA A uditreport,june 30,1996 STATEM E'NT O F REVENUES A ND EXPENDITURES TestofStatem ent W e obtained from m anagem entthe statem entofrevenues and expenditures for the yearended June 30,19g6,as show n on Statem enta,and requested w ritten representation from m anagem ent as to its fair presentation. In addition,we verified the m athem aticalaccuracy ofthe am ounts on the statem entand traced the am ounts on the statem ent to various accounts in the revenue and expenditure ledgers of the university. W e noted no differences betw een the am ounts in the revenue and expenditure ledgers and the am ounts on the statem ent. Com parison of Statem ents W e com pared the statem ents ofrevenues and expenditures forjune 30, 1995, and June 30, 1996, to determ ine the percentage of increase or decrease betw een the tw o years. The university provided satisfactory responses for any m aterialvariances betw een the tw o years. Com parison of Budgetto A ctua Revenues and Expenditures W e com pared the am ount of budgeted revenues and expenditures to actual revenues and expenditures forthe yearended June 30, 1996,to determ ine if there w ere any m aterialbudgetvariances. The university provided satisfactory responses forany m aterialvariances between budgeted and actualam ounts. Contributions Exceeding Ten Percentof TotalContributions W e obtained from m anagem ent a list of contributions received by the athletic departm ent and determ ined that there w as one individual contribution, from State Farm Insurance Com panies totaling $27,660,thatexceeded ten percent ($21,679)ofthe totalcontributions.
5 Nicho ls State University is a publicly supported institution ofhighereducation. The university is a com ponent unitofthe State of Louisiana w ithin the executive branch ofgovernm ent. The Nicho ls State University Athletic Departm ent, w hich operates the interco legiate athletics program,is a partofnicho ls State University. The accom panying financialstatem entpresents inform ation only as to the transactions ofthe N icho ls State U niversity Athletic Departm ent. SUM M A RY O F SIG NIFICA NT A CC O UNTING PO LICIES A. FU N D A C C O U NTIN G To observe lim itations and restrictions placed on the use of available resources,the accounts ofn ichol/s State University are m aintained in accordance w ith the principles of fund accounting. Such principles prescribe the m annerin w hich resources forvarious purposes are classified,for accounting and reporting purposes,into funds that are in accordance with the activities orspecified objectives. Accounts are maintained forthe transactions ofthe athletic departm entas fo low s: C urrentfunds -Unrestricted Unrestricled current funds include a lfunds for operating purposes on w hich there are no restrictions,exceptthe budgetary controlprovisions included in the annuallegislative appropriation act,and include the G eneralfund and auxiliary enterprise funds. The auxiliary enterprise funds include the accounts of the athletic departm ent. A gency Funds This fund group represents funds forw hich the university acts as custodian or fiscalagent on behalf of others,such as contributions and interest earnings of the athletic departm ent. B. BA SIS O F A CCO UNTING The accounts of the athletic departm ent are m aintained on the accrual basis of accounting as fo low s:
6 ST A T E O F L O U ISIA N A L E G ISL A T IV E A U D IT O R A thletic D epartm ent N icholls State U niversity Sta te oflouisiana Thibodaux,Louisiana April23,1997 Financialand C om p liance A udit D ivision '-~ D anielg.k yle P h.d.,c PA,C FE, Legislative A uditor
7 LEGI.C;LATIVE A UDITOR A TH LETIC D EPA RTM ENT N IC HO LLS STA TE U NIV ERSITY STA TE O F LO U ISIA NA Notes to the FinancialStatement(Continued) Revenues Substantia ly a lrevenues are recognized w hen earned Expenditures Expenditures are genera ly recognized underthe accrualbasis of accounting when incurred,exceptthat(1)depreciation is notrecognized;(2)annualand sick leave are recognized when paid;and (3)faculty salaries and related benefits for June are notprorated butare deferred to the succeeding year. C. EM PLO YEE CO M PENSATED A BSENCES Em ployees ofthe university w orking in the athletic departm ent earn annualand sick leave in accordance w ith state law and adm inistrative regulations. Leave benefits are reflected in the accom panying financialstatem entw hen paid. D. TO TA L C O LU M N O N STA TEM E-NT The totalcolum n on Statem enta is captioned M em orandum Only (overview)to indicate that it is presented only to facilitate financialanalysis. Data in this colum n does not present results of operations in conform ity w ith genera ly accepted accounting principles. Neitheris such data com parable to a consolidation. CONTRIBUTIONS (GIFTS-IN-KIN[)) FRO M O UTSIDE O RGA NIZATIO NS The fo low ing is a sum m ary of contributions-in-kind received and reported as revenues and expenditures on Statem enta : Revenues A utom obile dealerships -use ofone courtesy careach J.G raham D odge,inc. Dantin M otors,inc. G reg LeBlanc N issan Brow n Ford,Inc. G erileblanc Pontiac Buick G M C Truck How ard Johnson -lodging forrecruits on oficialvisits C hiropractic and PhysicalTherapy C linic,inc.- chiropractic and physicaltherapy services $
8 LEG ISLATIVE"-A UDITO R ATHLETIC DEP A RTM ENT N IC HO LLS STA TE U N IV ERSITY STATE O F LO UISIA NA Notes to the FinancialStatement(Conclucled) Revenues (Cont.) Kern's Drycieaning,Inc.-laundry services Bayou Country C lub -use ofgolfing facilities EIlendale Country C lub -use ofgolfing facilities Thibodaux Driving Range -use ofgolfing facilities E.D.W hite High School-use oftrack Johnny's M en's Shop -uniform clothing forathletic events Piccadily Cafeteria -postgam e m eals and catering serv ices Bo lingershipyard,inc.-footba lblocking sled A nlyn System s,inc.-facsim ile services Totalrevenues Expenditures O perating services Travel Supplies Professionalservices Equipm ent Totalexpenditures $1, , $31,345 $19,050 2,500 6, $31,345 3 O UTS ID E O RG A N IZA TIO NS C R EA TED FO R O R IN B EHA LF O F THE NIC HO LLS STATE UNIVERSITY INTERCO LI.EG IATE A TH LETIC S PRO G RA M The Colonel's Club is the only outside organization created fororin behalfofthe Nicho ls State University Interco legiate Athletics Program. "]he accounts forthis club are m aintained as an athletic agency fund ofnicho ls State University and as an accountw ithin the Nicho ls Co lege Foundation, Incorporated, w hich is a separate corporation. The athletic director and the associate athletic directordeterm ine the am ounts transferred to the University Athletic Agency Fund forthe Foundation. 10
9 ATHLETIC DEPA RTM ENT NICHO LLS STATE U NIVERSITY STATE O F LO UISIA NA Statem entof Revenues and Expenditures Forthe YearEnded June 30,1996 (PORTION OF) CURRENT FUNDS - UNRESTRICTED - AUXILIARY ENTERPRISE FUND ATHLETIC AG ENCY FUND REVENUES Education and generaltransfers G ate receipts Guarantees Com m issions NCAA receipts In-kind contributions(note 2) Outside funds(note 3) M isce laneous Totalrevenues $1,570,000 89, ,000 4, ,210,113 $31, EXPENDITURES Personalservices and related benefits Travel O perating service s Supplies Professionalaervi(:es G uarantees Scholarships O thercharges Equ,pm ent ]otalexpenditures 862, , ,363 76, ,747 5, ,688 2, ,309 39,765 39,005 68, ,648 1, , , , ,197 5, ,688 32, ,377,825 EXCESS O F REVENUES OVER EXPENDITURES $61,332 $59,609 $120,941
10 I)ANIEI,O.KYLE,P!I,D.,CPA,CFE LEGISLATIVE AUDITOR OFFICE:OF L EG ISLA TIV F.A U D ITO R STATE OF LOU ISIAN A BATON ROUG E,1,OUISIAN A M arch NO R'I' ITIIIRI)S]RI,:I~I POS3 0 :FICE BOX TELEPtlONE:(504) FACSIMILE: (504) nder)endenta uditor's R eoort DR.DO NA LD J.AYO,PR ESIDENT NICHO LLS STATE UNIVERSITY STA TE O F LO UISIA NA Thibodaux.Louisiana W e have audited the general purpose financial statem ents of Nicho ls State University, a com ponentofthe State of Louisiana reporting entity,as ofjune 39,1996,and forthe years ended June 30, 1996, and June 30, 1995, and have issued our report thereon dated Decem ber19, As requested by the university,w e have also applied certain m inim um agreed-upon procedures contained in the N ational Co legiate A thletic A ssociation Financial Audit G uidelines to the accounting records and system of internalaccounting controlof the N icho ls State University Athletic Departm entand to the related outside organization created for or in behalfofthe university's Interco legiate Athletics Program forthe year ended June 30, 1996, solely to assist the university in com plying w ith the National Co legiate Athletic Association (NCAA) Bylaw It is understood that this report is solely for your inform ation. H ow ever,by provisions ofstate law,this reportis a public docum entand has been distributed to the appropriate public oficials. Because the fo low ing m inim um agreed-upon procedures do notconstitute an audit m ade in accordance w ith genera ly accepted auditing standards,w e do notexpress an opinion on any of the accounts or item s on the accom panying statem ent of revenues and expenditures of the athletic departm ent or on the sum m ary of financial inform ation of the related outside organization included in this report. In connection w ith the fo low ing m inim um agreed-upon procedures,nothing cam e to ourattention thatcaused us to believe thatthe specified accounts oritems should be adjusted. Had we performed additionalprocedures orhad we made an auditofany financialstatem ents ofthe Interco legiate Athletics Program and the related outside organization of the Nicho ls State University, in accordance w ith genera ly accepted governm ental auditing standards, m atters m ight have com e to our attention that w ould be reported to you. This report relates only to the accounts and item s discussed on the fo low ing page,; and does not extend to the financial statem ents of Nicho ls State University, its Interco legiate Athletics Program,orthe related outside organization taken as a w hole. O ur m inim um agreed-upon procedures fo low :
11 A TH LETIC D EPA RTM ENT N IC HO LLS STA T["UN IV ERSITY STA TE O F LO UISIA NA FinancialStatem entand IndependentA uditor's Report Forthe YearEnded June C O NTENTS Statem ent Page N o ndependentauditor's Report (including section on internalcontrol) FinancialStatem ent-statem entof Revenues and F_xpenditures N otes to the FinancialStatem ent A 2 7 8
12 LI'G ISLA TIV E A U DIT A DV ISO RY C O U NC IL M EM BERS Representative Francis C.Thom pson,c hairm an SenatorRonald C.B ean,v ice C hairm an Senator Robert J.Barham SenatorW ilson E.Fields SenatorThom as A.G reene SenatorCraig I-'.Rom ero Representative F.C harles M cm ains,jr Representative Edw in R.M urray Representative W arren J.Triche,Jr. Representative David V itter DanielG.Kyle,Ph.D.,C PA,C FE A lbert J.Fi:obinson,Jr.,C PA
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