L E G ISL A T IV E A U D IT O R

Transcription

1 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 Louisiana Com m unity and TechnicalC ollege System State oflouisiana Baton Rouge,Louisiana Decem ber Financialand C om tm iance A uditd ivision D anielg.k yle,p h.d.,c PA,C FE Legislative A uditor

2 LEG ISLATIVE A UDIT A DVISO RY CO UNC IL M EM BERS Representative Edw in R.M urray,c hairm an SenatorJ."Tom " Schedler,Vice Chairm an SenatorRobertJ.Barham SenatorFosterL.Cam pbell,jr. SenatorLynn B.Dean SenatorW illie L.M ount Representative R ick Farrar Representative VictorT.Stelly Representative T.TaylorTow nsend Representative W arren J.Triche,Jr. LEG ISLATIV E A U D ITO R DanielG.Kyle,Ph.D.,CPA,CFE r)irecto R O F FINA NC IA L A ND CO M PLIANCE A UDIT A lbert J.Robinson,Jr.,C PA This docum entis produced by the Legislative Auditor,State of Louisiana,Post Ofice Box 94397, Baton Rouge, Louisiana in accordance w ith Louisiana Revised Statute 24:513. Forty-six copies ofthis public docum entw ere produced at an approximate cost of $ his m aterialwas produced in accordance w ith the standards for state agencies established pursuantta R.S. 43:31. A copy ofthis docum entis available on the Le{~islative Auditor's W eb site atww w Ila.state.la.us. In com pliance w ith the Am ericans W ith Disabilities Act, if you need ~;pecial as.,;istance relative to this docum ent,orany docum ent.,;ofthe Legislative A uditor, please contactw ayne "Skip"Irw in,directorofadm inistration,at225/

3 LO U ISIA NA C O M M LIN ITY A N D TEC H N ICA L C O LLEG E SYSTEM STATE O F LO UISIA NA Baton Rouge,Louisiana G eneralpurpose FinancialStatem ents and IndependentA udilor's Reports As ofand forthe YearEnded June 30,2000 W ith Supplem entalinform ation Schedules Underthe provisions ofstate law,this reportis a public docum ent. A copy ofthis reporthas been subm itted to the G overnor,to the Attorney G eneral,and to other public oficials as required by state law. A copy ofthis reporthas been m ade available forpublic inspection atthe Baton Rouge,Shreveport,and New O rleans offices ofthe Legislative A uditor. Decem ber

4 LO UISIANA C O M M UNITY AN D TEC HNICA L CO LLEG E SYSTEM STATE O F LO UISIANA G eneralpurpose FinancialStatem ents and IndependentAuditor's Reports As ofand forthe YearEnded June 30,2000 W ith Supplem entalinform ation Schedules CO NTENTS Statem ent Page No ndependentauditor's Reporton the FinancialStatem ents 5 G eneralpurpose FinancialStatem ents Com bined Balance Sheet-A IFunds Com bined Statem entofc hanges in Fund Balances A B Com bined Statem entofrevenues,expenditures and O therc hanges -C urrentfunds Notes to the FinancialStatem ents Schedule Page No Supplem entalinform ation Schedules Board ofsupervisors ofcom m unity and TechnicalCo leges Balance Sheet-A IFunds Schedule ofc hanges in Fund Balances Schedule ofrevenues,expenditures,and O therchanges -CurrentFunds 36

5 LO U ISIA NA C O M M U N ITY A N D TEC HNICAL CO LLEG E SYSTEM STATE O F LO U ISIA NA Contents.June CONTENTS (Cont.) Schedule Page No SupplementalInformation Schedules:(Cont.) Baton Rouge Com m unity Co lege Balance Sheet-A lfunds Schedule ofchanges in Fund Balances Schedule ofrevenues,expenditures,and O therc hanges -CurrentFunds Delgado Com m unity Co lege Balance Sheet-A lfunds Schedule ofc hanges in Fund Balances Schedule ofrevenues,expenditures,and O therchanges -CurrentFunds Elaine P.Nunez Com m unity Co lege Balance Sheet-A lfunds Schedule ofchanges in Fund Balances Schedule ofrevenues,expenditures,and O therchanges -C urrentfunds BossierParish Com m unity Co lege Balance Sheet-A lfunds Schedule ofchanges in Fund Balances Schedule ofrevenues,expenditures,and OtherChanges -CurrentFunds 15 56

6 LO U ISIA NA C O M M U NITY A N D TECHNICA L C O LLEG E SYSTEM STATE O F LO U ISIA NA Contents.June CONTENTS (Cont.) Schedule Page No SupplementalInformation Schedules:(Cont.) South Louisiana Com m unity Co lege Balance Sheet-A lfunds Schedule ofchanges in Fund Balances Schedule ofrevenues,expenditures,and O therchanges -CurrentFunds R iverparishes Com m unity Co lege Balance Sheet-A lfunds Schedule ofc hanges in Fund Balances Schedule ofrevenues,expenditures,and O therc hanges -C urrentfunds Louisiana TechnicalCo lege Balance Sheet-A lfunds Schedule ofchanges in Fund Balances Schedule ofrevenues,expenditures,and O therchanges -CurrentFunds Schedule ofperdiem Paid Board M em bers Schedule oflouisiana TechnicalCo lege Cam puses Reporton C om pliance and on InternalControlO ver FinancialReporting Based on an Auditofthe G eneral Purpose FinancialStatem ents Perform ed in Accordance W ith G overnm enta uditing Standards Exhibit

7 LO UISIA NA CO M M UNITY A ND TEC HNICA L CO LLEG E SYSTEM STATE O F LO UISIA NA Contents.June 30,2000 CONTENTS (Concluded) A ppendix M anagem ent's Corrective Action Plans and Responses to the Findings and Recom m endations A

8 )ANIE[ O.KYI.E,PII[).,CPA,CFE I1G]SLATIVIiAUD ]OR OFFICF.OF L EG ISLA TIV E A U D ITO R STA TE O F LOU ISIAN A BATON RO U G F.,LO U ISIAN A Decem ber NORTll"IIIIRD S IRliEI POST O I'H CI BO X ~IEI.EPIIONE:(225) FACSIM ILIr~: (225) ndependenta uditor's Report on the FinancialStatem ents LO UISIANA CO M M UNITY AND TEC HNICA L.CO LI_EG E SYSTEM STATE O F LO UISIANA Baton Rouge,Louisiana W e have audited the accom panying generalpurpose financialstatem ents of the Louisiana Com m unity and TechnicalC o lege System,a com ponent unitofthe State of Louisiana,as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financialstatem ents are the responsibility ofm anagem entofthe Louisiana Com m unity and TechnicalCo lege System. O ur responsibility is to express an opinion on these general purpose financialstatem ents based on ouraudit. W e conducted ouu audit in accordance w ith genera ly accepted auditing standards and G overnm ent A uditing Standards, issued by the Com ptro ler G eneral of the United States. Those standards require thatw e plan and perform the auditto obtain reasonable assurance aboutw hetherthe generalpurpose financialstatem ents are free ofm aterialm isstatem ent. A n auditinclude.(;exam ining,on a testbasis,evidence supporting the am ounts and disclosures in the generalpurpose financialstatem ents. An auditalso includes assessing the accounting principles used and significant estim ates m ade by m anagem ent,as we las evaluating the overa lfinancialstatem entpresentation. W e believe thatourauditprovides a reasonable basis forouropinion. In ouropinion,the accom panying generalpurpose financialstatem ents referred to previously presentfairly,in a lm aterialrespects,the financialposition ofthe Louisiana Com m unity and TechnicalCo lege System atjune 30,2000;the changes in fund balances;and the current funds'revenues,expenditures,and otherchanges forthe yearthen ended,in conform ity w ith genera ly accepted accounting principles. In accordance w ith Governm enta uditing Standards,we have also issued our report dated Decem ber13,2000,on ourconsideration ofthe Louisiana Com m unity and TechnicalCo lege System 's internalcontroloverfinancialreporting and on ourtests ofits com pliance w ith certain provisions oflaw s,regulations,contracts,and grants. Thatreport is an integralpart ofan audit perform ed in accordance w ith G overnm ent Auditing Standards and sheuld be read in conjunction with this reportin considering the results ofouraudit.

9 LEGISLATIVE AUDITOR LO UISIA NA CO M M UNITY A ND TEC H N ICA L C O LLEG E SYSTEM STATE O F LO UISIA NA AuditReport,June 30,2000 Legislative A uditor LJD:THC:RCL:ss

10 LO UISIANA CO M M UNITY AND TEC HNICA L CO LLEG E SYSTEM STATE O F LO UISIA NA ALL FUNDS Com bined Balance Sheet:,June 30,2000 GENERAL CURRENT FUNDS AUXILIARY ENTERPRISES RES'fRICTED STUDENT LOAN FUNDS ASSETS Cash and cash equivalents (note 2) Jnvestm ents {note 3) Accounts receivable (note 4) Notes rece ivable Due from state treasury (note 13) Due from otherce rnpuses Due from otherfunds (note 6) Due from federalgovernm ent Deferred charges and prepaid expenses Inventodes Institutionalplant(note 17) O therassets $9,892,049 2,669,065 2,743,720 7, , ,232 15,370 $1,491,242 1, $1,131, , $741 16,846 9,390 1,533,384 1,708,649 6,625 11, ,503 1,416 1,457,666 TOTAL ASSETS LIABJLITIES AND FUN[)EQUITY Liabilities: Accounts payable arid accrued liabilities Due to state treasury (note 13) Due to othercam puses Dueto otherfunds(note 5) Oepos(ts held forothers Deferred revenues Notespayable (note 12) Compensated absence s payable {note 10 Bondspayable (note 12) Otherliabilities TotalLiabilities F~ d Equity: Netinvestm entin plant Fund balance s: Reserved (note 14) Currentoperations: Unrestricted (deficit)(note 23) Restricted Noncurrentoperations: Restricted Endowm ent TotalFund Equity (Deficit) TOTAL LIABILITIES AND FUND EQUITY $20,812,059 $6,409,200 $25,215,662 $29,114 $11,074, ,472 25,692 3,231,443 $21,084 $12, $ ,506 18,917 1,592,356 1,549,967 4,322, ,172,506 34, , ,232 {11,029,382) 3.810,565 79,984 20,792, ,224 6,233,634 6,329,216 4, , ,863 $20,812,059 $6,409,200 $25,215,662 $29,114 The accom panying notes are an integralpartofthis statem ent 7

11 Statem ent A ENDOW MENT FUNDS UNEXPENDED PLANT FUNDS RETIREM ENT OF INVESTM ENT INDEBTEDNESS IN PLANT AGENCY FUNDS TOTAL (MEMORANDUM ONLY) $1.909, $474,117 $5,728 1,100, , , $289,050,500 $217,502 9, $15,121,146 4,459,751 5,479,109 16,846 3,198,588 1,549,967 6,159,719 19,009, ,430 2,026, ,050, $ $2,283,286 $112,761 $289,050,600 $433,190 $346,819,827 $1.199 $23,643,175 1,948,340 1,549,967 $294,362 1,824,625 6,159, , , ,614 3,958,907 $293, ,235 12,406, , , ,362 1,897,348 NONE 708, ,190 51,367, ,342, ,342,265 $112, ,351 (10,934,158) 14,467, ,342,265 NONE 714, ,452,492 $2,474,055 $2,283,288 $112,761 $289,050,500 $433,190 $346,819,827

12 LO UISIANA CO M M UNITY AN D TEC HNICA L CO LI.EG E SYSTEM STATE O F LO U ISIA NA A LL FUNDS Com bined Statem entof C hanges in Fund Balances For the YearEnded June 30,2000 GENERAL CURRENT FUNDS AUXILIARY ENTERPRISES RESTRICTED STUDENT LOAN FUNDS Revenues and otheradditions: Unrestricted currentfund revenues Tuition and fees -restricted State appropriations -restlicted Federalgrants end contracts State grants and (ontracts Localgrants and (;ontracts Private gifts,grants,and contracts Investm entincom e -restricted State funded endowm ents Endowm entincom e Auxiliary enterprises revenues Retirementofindebtedness Additions to plsntfacilities Othersources Totalrevenues and otheradditions $157,159, , , , $6,890,236 6,890,236 $4,[)60, ,594 71,694,154 3,276, , ,813 6,586 $ , g76, Expenditures and otherdeductions: Educationaland general Auxiliary enterprises Expended forplantfacilities Indirectcosts rec~.veted Retirem entofindebtedness Intereston indebtedness Refunded to grantors Disposalofplantfacilities Other Totalexpendituresand otherdeductions , ,470 6,764,290 13, ,410 6,764,290 81,691,576 NONE Transfers among funds -additions(deductions): M andatory -principaland interest Nonmandatory -other Totaltransfers among funds (173,974) (288,420) (462,394) 288, ,420 (52,396) {52,396) NONE inventory increase NONE NONE Netincrease (decrease)forthe year 2,277, ,738 1,132, Fundbalances(deficit)atbeginning ofyear,restated(note14) (6,927,311) 5,723,478 3,2'99,750 28,561 Fund balance s (deficit)atend ofyear ($6,649,585) $6,329,216 $4~423,341 $ The accom panying notes are an integralpartofthis statem ent 9

13 Statem entb ENDOW MENT FUNDS UNEXPENDED PLANT FUNDS RETIREM ENT OF INVESTM ENT INDEBTEDNESS IN plant TOTAL (MEMORANDUM ONLY) $472, ,028 $463,292 4,103 56,542 80, , ,465,826 NONE $250, , $157,159,658 4,218,632 1,091,002 71,694,154 3,911,852 1,938,189 1,508,105 67,269 80,000 82,317 6,897, ,311 18,166, ,854,496 NONE $250, ,332 4,964, ,283 5,484, ,170,815 7,141, ,609 29, ,311 35,021 4,410 4,964, , ,358) ,332 NO NE NO NE NONE NONE NONE NO NE ,889 (126,253) NONE 12,931,584 17,432, , , ,410, ,019,915 $2,179,693 $685,938 $112,761 $288,342,265 $295,452,492 10

14 Statem ent C LO UISIANA CO M M UNITY AND TEC HNICA L.CO LLEG E SYSTEM STATE O F LO UISIANA C URRENT FUNDS C om bined Statem entof Revenues,Expenditures, and OtherChanges Forthe YearEnded June 30,2000 GENERAL AUXILIARY ENTERPRISES RESTRICTED Revenues: Tuition and fees State appropriations Federalgrants and contracts State grants and co ntracts Localgrants and contracts Private gifts,grants,arid Contracts Sates and service ofeducationaldepartm ents Investm entincom e Endow m entlncom e Auxiliary enterprise revenues Adm inistrative expense recovery Othersources Totalrevenues $29,340, ,428,027 30, , , ,948, ,456,500 $6,890,236 6,890,236 $3,220, ,677 71,731,337 3,903,337 1,934, ,073 10,714 13, ,918,127 Expenditures and transfers: Educationaland general: instruction Research Public service Academ ic support Studentservices institutionalsupport O perations and m aintenance ofplant Scholarships and fe lowships Com pensated absences O therexpenditures Totaleducationaland generalexpenditures M andatory transfers -principaland interest Auxiliary enterpdses expenditc.lres Nonm andatory transfers -other Totalexpenditures and transfers 83,169, , ,520 6,046,421 8,625,463 35,590,674 16,219,344 3,012, ,755 2, ,339, , , , ,165,472 14,698, ,166 28,326,381 5,454,506 4,278, ,610 28,003, NO NE 81,844,470 6,784,290 _!.288,420) ,512 60,000 81,917,982 Otheradditions (deductions): Excess ofrestricled receipts overtransfers to revenue Inventory increase O ther 41,656 (54,958) 191,372 1,166,040 (33,594) Netincrease (decrease)in fund balances $2,277,726 $605,738 $1,132,591 The accom panying notes are an integralpartofthis statem ent 11

15 LO UISIANA CO M M UNITY AND TECHNICAL CO LLEG E SYSTEM STATE O F LO UISIA NA Notes to the FinancialStatem ents As ofand forthe YearEnded June NTRO D UCTIO N The Louisiana Com m unity and TechnicalC o lege System is a publicly supported institution of higher education. The system is a com ponent unit of the State of Louisiana, w ithin the executive branch ofgovernm ent. The system is underthe m anagem entand supervision ofthe Louisiana C ornm unity and Technical Co lege System 's Board of Supervisors. The board of supervisors is com prised of15 m em bers appointed fora six-yearterm by the governor,w ith the consentofthe Senate,and tw o studentm em bers appointed fora one-yearterrn. O ne student m em ber is selected by and from a co uncilcom posed of the student body presidents of the system 's com m unity co leges,and one student m em ber is selected by and from a council com posed ofthe studentbody presidents ofthe system 's technica lco lege ca m puses. As a state institution,operations ofthe system 's instructionalprogram s are funded through annual lapsing appropriations m ade by the Louisiana Legislature. The chiefexecutive officerofthe com m unity and technica lco lege system is the president. The Louisiana C om m unity and TechnicalCo lege System includes a lprogram s ofpublic postsecondary vocational/technical training and the institutior~s of higher educa tion that offer associate degrees but not baccalaureate degrees. It is com posed of two divisions--the Com m unity Co lege division and the Technical Co lege division. The Com m unity Co lege division is com prised of six cam puses--baton Rouge, Elaine P. Nunez, Delgado, South Louisiana,BossierParish,and RiverParishes. The TechnicalCo lege division includes the 42 separate cam puses throughoutthe state. Studentenro lm entforthe com m unity and technicalco lege system forthe 1999 fa lsem ester totaled 34,801 fu l-tim e equivalent students. During fiscalyear 2000, the com m unity and technica lco lege system had approxim ately 2,900 faculty m em bers. SUM M ARY O F SIG NIFICANT ACCO UNTING PO LICIES A. BA SIS O F PRESENTATIO N The GovernmentalAccounting Standards Board (GASB)considers both the America n Institule of Certified Public Accountants (AICPA) Colege Guide model and the governm ental m odel to be acceptable for accounting and financial reporting by governm entalco leges and universities. The accom panying financialstatem ents have been prepared in accordance w ith the A IC PA C o lege G uide m odelprinciples. 12

16 LO UISIANA CO M M UNITY AND TEC HNICA L CO LI..EG E SYSTEM STATE O F LO UISfANA Notes to the FinancialStatements (Continued) B. REPO RTING ENTITY GASB Codification Section 2100 has defined the governm entalreporting entity to be the State of Lo uisiana. The system is considered a com ponent unit of the State of Louisiana because the state exercises oversightresponsibility and has accountability for fiscalmatters as folows: (1)a majority ofthe members ofthe governing boards are appointed by the governor;(2)the state has controland exercises authority overbudget matters;(3) state appropriations provide the largest percentage of totalrevenues; (4)the state issues bonds to finance certain construction;and (5)the system primarily serves state residents.the accom panying financialstatem ents presentinform ation only as to the transactions of the program s of the Louisiana Com m unity and Technica l Co lege System,a com ponentunitofthe State oflouisiana. A nnua ly, the State of Louisiana issues general purpose financial statem ents, w hich include the activity contained in the accom panying financialstatem ents. Those general purpose financialstatem ents are audited by the Louisiana Legislative A uditor. C. FU N D A C C O U NTING To observe the lim itations and restrictions placed on the use ofavailable resources,the accounts of the system are m aintained in accordance w ith the principles of fund accounting. Such principles prescribe the m anner in w hich resources for various purposes are classified,for accounting and reporting purposes,into funds thatare in accordance with specified activities orobjectives. Accounts are separately maintained foreach fund;however,in the accom panying financialstatem ents,funds having sim ilar characteristics have been com bined into fund groups. Accordingly, a l financial statem ents have been reported by fund groups. A briefdescription ofeach fund group fo low s: C urrentfunds C urrentfunds are operating funds thatw ilbe expended in the nearterm. Such funds include the G eneral Fund, Auxiliary Enterprises Fund, and Restricted Fund. The G eneral Fund is used for operating purposes on w hich there are no restrictions, except the budgetary control provisions included in the annual legislative appropriation act. The currentfunds also include auxiliary enterprise funds designated by the Board ofsupervisors as applicable to certain activities to m aintain the operations as essentia ly self-supporting. Unexpended balances in the auxiliary activities are retained to fund future expenses of the auxiliary operations. Restricted currentfunds representthose operating funds on w hich restrictions have been im posed thatlim itthe purposes forw hich such funds can 13

17 LO UISIANA C O M M UNITY A ND TEC HNICAL CO LLEG E SYSTEM STA TE O F LO U ISIA NA Notes to the FinancialStatements (Continued) be used and include gifts,grants,or contracts from governm entalor private agencies. StudentLoan Funds The student loan funds group accounts for resources available for loans to sfudents. Endow m entfunds The endowm ent fund group consists of endowm ent funds, term endowm ent funds,and quasi-endow m entfunds. [-'ndow m entfunds are funds w ith respectto w hich donors orotheroutside agencies have stipulated,as a condition ofthe gift instrum ent,thatthe principalis to be m aintained inviolate and in perpetuity and invested forthe purpose ofproducing presentand future incom e thatm ay either be expended or added to principal. Term endow m ent funds differ from endow m entfunds in thata lor a portion ofthe principalbecom es expendable after a stated period of tim e or an occurrence of a specified event. Q uasiendow m entfunds are those funds that the governing board of the institution, rather than a donor or other external agency, has determ ined to treat as endowm ent funds,to be retained and invested, Expendable incom e derived fiom investm entof principalis accounted for in the restricted currentfund;any nonexpendable interestis accounted foras incom e in the endow m entfund. PlantFunds The plantfunds group contains three self-balancing subgroups. Unexpended plant funds are used for the acquisition of long-lived asset.<; for institutional purposes. Funds for retirem ent of indebtedness are to service plant indebtedness ofthe system. Investm entin plantincludes a llong-lived assets of the system. A gency Funds Agency funds are deposits in w hich the system acts as custodian orfiscalagent on behalfofothers,such as studentorfaculty organizations and workshops. D. BASIS O F ACCO U NTING The financialstatem ents of the system have been prepared on the accrualbasis of accounting,exceptthat(1)depreciation is notrecognized;(2)summerschooltuition and fees and faculty salaries and related benefits forjune are notprorated butare deferred to the succeeding year;and (3)the inventories ofthe GeneralFund are recorded as expenditures atthe tim e ofpurchase. 14

18 LO U ISIA NA C O M M U NITY A N D TEC HNICA L CO LL.EG E SYSTEM STATE O F LO U ISIA NA Notes to the FinancialStatements (Continued) The statem ent of current funds' revenues, expenditures, and other changes is a statem entoffinancialactivities ofcurrentfunds relating to the currentreporting period. Itdoesnotpurportto presentthe results ofoperations (netincome orloss)forthe period as w ould a statem entofrevenues and expenses. To the extent that current funds are used to finance plant assets, the am ounts so provided are accounted foras expenditures in the case of norm alacquisitions,repairs, and renovations; m andatory transfers in the case of required provisions for debt am ortization and interest;and as transfers ofa nonm andatory nature fora lothercases. E. BUDG ET PRACTICES The appropriations m ade for the G eneral Fund of the Louisiana Com m unity and TechnicalCo lege System are annuallapsing appropriations established by legislative action and by Title 39 ofthe Louisiana Revised Statutes. The statute requires thatthe budget be approved by the Board of Regents for Higher Education and certain legislative and executive agencies ofstate governm ent. Budgetrevisions are granted by the Joint Legislative C om m ittee on the Budget. In com pliance w ith these legal restrictions, budgets are adopted on the accrual basis of accounting, except that (1)depreciation is notrecognized;(2)leave costs are treated as budgeted expenditures to the extentthatthey are expected to be paid;and (3)inventories in the GeneralFund are recorded as expenditures atthe tim e ofpurchase. The originalapproved budgets and subsequentam endm ents approved are as fo low s Board of Baton Supervisors of Rouge Delgado Com m unity and Com m unity Com m unity TechnicalCo leges Co lege _. Co lege O riginalapproved budget increases: State GeneralFund Interagency transfers Federalfunds Reduction -federalfunds Total $41,068,320 $7,904,200 $42,211,717 7, , , /' $38,929,933 $9,645,471 $42,863,060 15

19 Elaine P Nueez Bossier Parish South Louisiana River Parishes Community Community Community Community Co lege Co lege Co lege Co lege Louisiana Technical Co lege $5,518,277 $13,987,926 $1,748,505 $1,410,000 $101,924, , , , ,684 3,653, $5,905,558 $14,167,225 $2,007,856 $1,958,284 $112,219,044 16

20 LO U ISIA NA C O M M U NITY A N D TEC HNICA L CO LLEG E SYSTEM STATE O F LO U ISIA NA Notes to the FinancialStatements (Continued) The otherfunds ofthe system are notrequired to subm itbudgets forapprovalthrough the legislative:budgetprocess. F CASH AND CASH EQ UIVALENTS AND INVESTM ENTS C ash includes cash on hand,dem and deposits,and interest-bearing dem and deposits. C ash equivalents include am ounts in tim e deposits. In accordance w ith Louisiana Revised Statute (R.S.)49:327(C)(3),the system is authorized to investfunds in direct United States Treasury obligations. In addition,funds derived from gifts and grants, endow m ents,and reserve funds established in accordance w ith bond issues m ay be invested as stipulated by the conditions ofthe giftinstrum entorbond indenture. The investm ents consistofu nited States Treasury Bils and are reported atfairvalue on the balance sheet. G. INVENTO RIES Inventories are valued at cost or replacem ent cost.the system uses periodic and perpetualinventory system s and values its various other inventories using the first-in, first-out(fifo)method. Inventories in the GeneralFund are recorded as expenditures atthe tim e ofpurchase. Year-end balances are ofsetby a fund balance reserv e that indicates this portion of the fund balance does not constitute available spendable resources. The inventories ofthe auxiliary enterprise funds are expended w hen sold or used. H. DEFERRED REVENUES Tuition and fees co lected atjune 30,2000,butapplicable to the 2000 sum m ersession, are reported as deferred revenues. Expenses relating to this session are reported in the period the tuition and fees are recognized as revenues. I. EN CU M BRANCES Encum brance accounting, under w hich purchase orders, contracts, and other com m itm ents forthe expenditure ofm onies are recorded to reserv e fund balances,is em ployed by the system during the year. Encum brances outstanding atyear-end in a l funds,exceptforthe G eneralfund,are reported as reserv ations offund balance since they do notconstitute expenditures orliabilities in the yearencum bered. Encum brances ofthe G eneralfund are notincluded in the financialstatem ents because the system does nothave the ability to finance the liquidation ofencum brances afterjune 30,2000, as provided by R.S.39:82. 17

21 LO UISIA NA CO M M UNITY A ND TEC HNICA L CO LLEG E SYSTEM STATE O F LO UISIA NA Notes to the FinancialStatements (Continued) J. PLANT ASSETS Physicalplantand equipm entare stated at cost atthe date of acquisition,estim ated costifactualcostis notknow n,fairm arketvalue atdate ofdonation in the case ofgifts, orm arketvalue forlivestock. Public dom ain orinfrastructure assets are notcapitalized. Construction-in-progress is capitalized during construction. No depre~-iation has been provided on plantassets. K. CO M PENSATED ABSENC ES Em ployees accrue and accum ulate annualand sick leave in accordance w ith state law and adm inistrative regulations. The leave is accum ulated w ithout lim itation;how ever, nine-m onth faculty m em bers do notaccrue annualleave butare granted faculty leave during holiday periods w hen students are not in classes. Em ployees w ho are considered as having non-exem pt status according to the guidelines contained in the FairLaborStandards Actm ay be paid forcom pensatory leave earned. Upon separation or term ination of em ploym ent, both classified and non-classified personnelortheirheirs are com pensated foraccum ulated annualleave notto exceed 300 hours. In addition, aca dem ic and non-classified personnel or their heirs are com pensated for accum ulated sick leave not to exceed 25 days upon retirem ent or death. Act343 of1993 a lows m em bers ofthe Louisiana State Em ployees Retirem ent System, upon application for retirem ent, the option of receiving an actuaria ly determ ined lum p sum paym entfor annualand sick leave that would otherw ise have been used to com pute years ofservice forretirem ent. Upon term ination or transfer, an em ployee w il be paid for any tim e and one-half com pensatory leave earned and m ay or m ay notbe paid forany straighthour-for-hour com pensatory leave earned. Com pensation paid w il be based on the em ployee's hourly rate ofpay atterm ination ortransfer. L. TO TA L CO LUM NS O N STATEM ENTS Totalcolumns on the statements are captioned Memorandum Only (overview) to indicate that they are presented only to facilitate financial analysis. Data in these colum ns do notpresentfinancialposition orresults ofoperations. Neitherare such data com parable to a consolidation. 18

22 LO UISIANA CO M M UNrI-Y A ND TEC HNICA L.CO LLEG E SYSTEM STATE O F LO U ISIA NA Notes to the FinancialStatements (Continued) 2. CASH AND CASH EQ UIVALENTS AtJune 30,2000,the system has cash and cash equivalents (book balances)of$15,121,146 as fo low s: Cash Cash - Equivalents - Cash in Cash on Dem and Tim e State Hand Deposits Deposits Treasury To~ t Board ofsupervisors Com m Jnity co leges: Baton Rouge eelgado Nunez Bossier South Louisiana RiverParishes Louisiana TechnicalCo lege $22,909 $400 2,347,113 27, ,508 1, ,919 1,550 1,171,921 73,119 78, , , $790,392 2,347,513 1,759, ,244 1,173, , ,199 7,106,179 "rotal $45,456 $5,480,084 $1,411,803 $8,183,803 $15,121,146 These deposits arc;stated atcost,w hich approxim ates m arket. U nderstate law,these deposits (orthe resulting bank balances)m ustbe secured by federaldepositinsurance orthe pledge of securities ow ned by the fiscalagent bank. The m arketvalue ofthe pledged securities plus the federaldepositinsurance m ustata ltim es equalthe am ount on depositwith the fiscalagent. AtJune 30,2000,the system has $11,057,624 in deposits (colected bank balances),excluding amounts held within the state treasury. These deposits are secured from risk by $5,708,337 offederaldepositinsurance and colateralized with securities held by the system in the system's name (GASB Category 1),$2,070,426 colateralized with securities held by the pledging financialinstitution's trustdepartmentoragentin the system's name (GASB Category 2),and $3,278,861of pledged securities held by the custodialbank in the nam e of the fiscalagent bank (GASB Category 3). Included in cash and cash equivalents is cash available to the system w ithin the state treasury totaling $8,183,803. Securities pledged forcash in the state treasury are not included in the above com putations as these am ounts are secured by fiscalagentbanks forthe state treasury. 3. INVESTM ENTS AtJune 30,2000,the system has investments totaling $4,459,751,ofwhich $4,341,130 is held by Delgado Com munity Colege and $118,621 is held by a private foundation in an external investm entpoolm anaged in accordance w ith the term s outlined in a m anagem entagreem ent executed belw een Elaine P.Nunez Com m unity Co lege and the foundation. Elaine P.Nunez 19

23 LO UISIA NA CO M M UNITY A ND TEC H N ICA L C O LLEG E SYSTEM STATE O F LO U ISIA NA Notes to the FinancialStatements (Continued) Com m unity Co lege is a voluntary participant in the:externalinvestm ent pool,. The system 's investm ents are reported atfairvalue as required by G ASB Statem ent31. The creditrisk ofg ASB Codification Section w as applied to the system 's investm ents. United States governm entsecurities of$4,341,130 are in the name ofdelgado Com munity Colege and are held in the:trustdepartmentofa custodialbank selected by the colege (GASB Category A). Investments of$118,621 held by a private foundation in an externalinvestment poolare notcategorized. 4. ACCO UNTS REC EIVA BLE Accounts receivable are show n on Statem enta as fo low s Fund G eneral A uxiliary Enterprises Restricted U nexpended Plant Agency Tota $2,669, ,950 2,030, , $5,4'79,109 The system has notyetestablished an a low ance fordoubtfulaccounts 5. DUE I=RO M fto O THER FUNDS The fo lowing is a sum m ary ofam ounts due from /to otherfunds atjune 30,2000 CurrentFunds Generel Auxiliary Enterprises Restricted StudentLoan Funds Endowm entfunds PlantFunds: Unexpended Renew als and Replacem ents Agency Funds Tota Due From OtherFunds $4,184,416 1,708,649 6, D ue to O therfunds $18, ,680 1,524, , $6,159,719 $6,159,719

24 LO U ISIA NA C O M M UNITY A ND TECH NICAL.CO LLEG E SYSTEM STATE O F LO UISIA NA Notes to the F:inancialStatements (Continued) 6. PENSIO N PLANS Plan Description. Substantia ly a lem ployees ofthe system are m em bers of two statew ide, public em ployee retirem ent system s. Academ ic em ployees are genera ly m em bers of the Louisiana Teachers RetirementSystem (TRS),and classified/unclassified state employeesare members ofthe Louisiana State Employees RetirementSystem (LASERS). Both plans are cost-sharing,m ultiple-em ployerdefined benefitpension plans adm inistered by separate boards of trustees. TRS and LASERS provide retirem ent,disability,and survivors'benefits to plan m em bers and beneficiaries. Benefits granted by the retirem entsystem s are guaranteed by the State oflouisiana by provisions ofthe Louisiana Constitution of G enera ly,a lfu l-tim e em ployees are eligible to participate in the system s,w ith em ployee benefits vesting after 10 years of service. Article 10,Section 29 of the Louisiana Constitution of 1974 assigns the authority to establish and am end benefitprovisions to the state legislature. The system s issue annual publicly available financial reports that include financial statem ents and required supplem entary inform ation for the system s. The reports m ay be obtained by w riting to the Teachers Retirem ent System of Louisiana,Post O fice Box 94123,Baton Rouge,Louisiana ,orby caling (225) ,and/orthe Louisiana State E-mpleyees Retirement System,PostOffice Box 44213,Baton Rouge,Louisiana 70804,orby ca ling (225) Funding Policy. The contdbution requirem ents ofem ployee plan m em bers and the system are established and m ay be am ended by the state legislature. The legislature annua ly sets the required em ployercontribution rate equalto the actuaria ly required em ployercontribution as setforth in R.S.11:102. Employees contribute 8% (TRS)and 7.5% (LASERS)ofcovered salaries. The state is required to contribute 15.2% of covered salaries to TRS and 12.3% of covered salaries to LASERS. The system 's em ployer contribution is funded by the State of Louisiana through the annualappropriation to the system. The system 's em ployercontribution to TRS forthe yearended June 30,2000,was$2,049,041and to LASERS forthe yearended June 30,2000,was $9,806,343,equalto the required contributions forthe year. 7. O PTIO NAL RETIREM ENT SYSTEM R.S.11:921 created an optionalretirem entplan foracadem ic and adm inistrative em ployees of public institutions of higher education. This program w as designed to aid universities in recruiting em ployees who m ay notbe expected to rem ain in TRS for10 or m ore years. The purpose of the optional retirem ent plan is to provide retirem ent and death benefits to the participants w hile affording the m axim um portability ofthese benefits to the participants. The optionalretirem entplan is a defined contribution plan thatprovides forfu land im m ediate vesting ofa lcontributions rem itted to the participating com panies on behalfofthe participants. Eligible em ployees m ake an irrevocable election to participate in the optionalretirem ent plan ratherthan the TRS and purchase retirem entand death benefits through contracts provided by designated cornpanies. 21

25 LO UISIA NA C O M M UNITY A ND TECH NICAL.CO LLEG E SYSTEM STATE O F LO UISIA NA Notes to the FinancialStatements (Continued) Total contributions by the system are 15.2% of the covered payro l. -Ihe participant's contribution (8% ),less any monthly fee required to cover the cost of administration and m aintenance of the optional retirem ent plan, is rem itted to the designated com pany or com panies. Upon receiptofthe em ployer's contribution,the TRS pays overto the appropriate com pany orcom panies,on behalfofthe participant,an am ountequalto the em ployer's portion ofthe norm alcostcontribution as determ ined annua ly by the actuarialcom m ittee. The TRS retains the balance ofthe em ployercontribution forapplication to the unfunded accrued liability ofthe system. Benefits payable to participants are notthe obsgations ofthe State oflouisiana orthe TRS. Such benefits and otherrights ofthe eptionalretirem entplan are the liability and responsibility solely ofthe designated com pany orcom panies to w hom contributions have been m ade. Em ployerand em ployee contributions to the optionalretirementplan totaled $1,872,279 and $981,773,respectively,forthe yearended June 30, PO STR ETIR EM ENT H EA LTH C A R E A N D I_IFE INSU RA NC E B EN EFITS The system provides certain continuing health care and life insurance benefits forits retired em ployees. Substantia ly a lofthe system 's em ployees becom e eligible for these benefits if they reach norm alretirem entage while working forthe system. These benefits forretirees and sim ilar benefits for active em ployees are provided through a state-operated group insurance program and various insurance companies whose monthly premiums are paid jointly by the em ployee and the system. The system recognizes the cost of providing these benefits to retirees (system's portion ofpremiums)as an expenditure when paid during the year. These retiree benefits totaled $2,291,563 forthe yearended June 30, CO NTING ENT LIABILITIES A ND RISK M A NA G EM ENT The system is involved in num erous law suits atjune 30,2000. In the opinion oflegalcounsel forthe system,the ultim ate outcom e of these lawsuits cannot be determ ined;however,any losses, with few exceptions, would be fuly covered by insurance. Losses arising from judgments,claims,and sim ilarcontingenciesare paid by eitherprivate insurance companiesor through the state's self-insurance fund operated by the O ffice ofrisk M anagem ent,the agency responsible forthe state's risk m anagem entprogram,orby G eneralfund appropriation. The system is also involved in seven law suits atjune 30,2000,thatare being handled by contract attorneys. The system 's attorneys do notexpectthe suits to resultin a liability to the system in excess ofinsurance coverage. 10. CO M PENSATED ABSENCES AtJune 30,2000,em ployees ofthe system have accum ulated and vested annual,sick,and com pensatory leave benefits of $6,821,280, $5,416,601,and $168,133, respectively,which w ere com puted in accordance w ith G ASB Codification Section C The leave payable is recorded in the accom panying financialstatem ents.

26 LO U ISIA NA C O M M U N ITY A N D TEC H NICAl-CO LLEG E SYSTEM STATE O F LO U ISIA NA Notes to the FinancialStatements (Continued) 11. LEASE O BLIG ATIO NS O perating L.eases The annualrentalpaym ents for noncancelable operating leases during the next five fiscalyears are presented as fo low s: Nature of _O~ _ e ra tinf:llease = O fice space Equipm ent $2,230,105 $2,033,333 $1,809,380 $441,891 $259,356 13,360 37,918 22,802 10,394 5,700 Total $2,243,465 $2, $1,832,182 $452,265 $265,656 The system does nothave any capitalleases atjune 30,2000 Lessor-O perating Leases As a lessor, Delgado Com m unity Co lege leases office space to G eneral M otors Corporation underan operating lease agreem ent. Future m inim um rentalpaym ents to be received underthis operating lease are as fo low s: Fisca lyear Ending June Tota A m ount $59,640 59, $ LO NG -TERM DEBT Notes Payable Notes payable totaling $293,235 are reflected on Statem enta. These notes represent an insta lm entpurchase agreem entforthe purchase ofcom puterequipm entby Delgado Com m unity Co lege. This agreem entrequires scheduled paym ents on a m onthly basis forthree years beginning in A pril1999 w ith an effective rate of4.127%. The fo low ing is a sum m ary of insta lm ent notes payable by the co lege for the year ended June 30, 2000:

27 LO UISIANA CO M M UNITY A ND TEC HNICA L.CO LI-EG E SYSTEM STA TE O F LO UISIA NA Notes to the FinancialStatements (Continued) Balance atjuly 1,1999 Insta lm entpaym ents in 2000 nsta lm entnotes payable atjune 30,2000 $451,546 L158,311 _~ $293,235 The fo low ing is a sum m ary of future m inim um insta lm ent paym ents as of June : YearEnding. June Totalm inim um insta lm entpaym ents Less -am ountrepresenting interest Tota 173, , ,455 11,220 $,;!93,235 The insta lm ent purchase agreem ent has a non-appropriation exculpatory clause that a lows forlease cance lation ifthe Louisiana Legislature does notm ake an appropriation forits continuation during any future fiscalperiod. Bonds Payable As presented on Statem enta,atjune 30,2000,bonds payable total$4.15,000 The fo low ing is a sum m ary ofbonds payable by the system forthe yearended June : Delgado Com m unity Colege Bonds payable atjuly 1,1999 Bonds retired Bonds payable atjune 30,2000 $507,000 1 /92,000) $415,000 24

28 LO UISIANA CO M M UNITY A ND TEC HNICA L.C O LLEG E SYSTEM STATE O F LO UISIA NA Notes to the FinancialStatements (Continued) Detailed sum m aries, by issues, of a lbonded debt outstanding at June 30, 2000, including interestof$63,029,fo low: Issue Date ofissue O rigina Issue O utstanding July 1, 1999 Delgado Com m unity College EducationalFacility Bonds Series 1970-A Series 1970-B Series 1972-A Series 1976-C January 15,1970 January 15,1970 April1,1972 June , , , $209, ,000 32, TotalBonds Payable $1,862,000 $507,000 The annualrequirem ents to am ortize a lbonds outstanding atjune 30,2000,including interest of$63,029,are as folows: FiscalYear Subsequentyears T ota Delgado Com m unity Colege $112,761 50,868 :39,280 39,350 :39, $478,029 The bond agreem ent of the educationalfacilities bonds requires that a Reserve Fund be established in an am ountequalto the highestcom bined principaland interestrequirem ents in any succeeding fiscalyearon a loutstanding bonds. AtJune 30,2000,the required reserve totals $112,761. As shown on Statem enta,the system has cash reserves available totaling $112,761.The system has metthe required reserve. 25

29 O utstanding June 30, Redeem ed 2000 M aturities Interest Rates Interest O utstanding June 30, 2000 ($16,000) (12,000) (10,000) (54,ooo~ $193, ,000 22, % 3.0% 6, % 5.8% $33,270 24,390 2, $415,000 $63,029 26

30 LO UISIANA CO M M UNITY AND TEC HNICA l.co LLEG E SYSTEM STATE O F LO UISIA NA Notes to the FinancialStatements (Continued) 13. DUE FRO M /TO STATE TREASURY As shown on Statem enta,the GeneralFund has $2,743,720 and the Unexpended PlantFund has $454,868 due from the state treasury atjune 30,2000. The am ounts in the GeneralFund are funds w ithdraw n from the state treasury in July 2000 forfiscalyear2000 expenditures. The am ounts in the Unexpended PlantFund are due from the Scientific Acquisition Fund in the state treasury. As shown on StatementA,the GeneralFund has $355,990 and the Restricted Fund has $1,592,350 due to the state treasury atjune 30,2000. The am ounts in the GeneralFund consist of $45,085 in petty cash advances and $308,905 of unexpended appropriations. Substantia ly a lof the $1,592,350 in the Restricted Fund is forfunds drawn from the state treasury in excess efavailable m eans offinance. 14. RESERVATIO NS O F FUND BALA NC ES Reservations offund balances atjune 30,2000,as show n on Statem enta,are sum m arized as fo low s: Inventor'1 Debt Encum brances Service Total CurrentF und.';: G eneral Auxiliary Enterprises PlantFund -retirem entof indebtedness $569,232 $569,232 $ $ "[eta $569,232 $358 $112,761 $682, R ESTATEM ENT O F PRIO R YEAR FU ND BALANC ES As show n on Statem ent[3,fund balances atthe beginning ofthe yearhave been restated for priorperiod adjustrnents made during the yearby the system. The adjustments made to fund balance atthe beginning ofthe yearare sum m arized as fo low s: 27

31 LO UISIANA CO M M UNITY A ND TEC HNICAL CO LLEG E SYSTEM STATE O F LO UISIA NA Notes to the FinancialStatements (Continued) CurrentFunds General Auxilia~ _ Restricted Endowment IRVe~ Une;~pended entin Plant Inv~stm entin Plant Fund Balance atjune , aspteviously tepor~e6 $3.267,154 $4,283,892 $3,040,592 ~1,5E.4,946 $~1~~,373 $109,790,625 Adjustments: Prioryearincornele ~penditures Transfers between funds Notes receivable Com pensated Bbsences Addition ofriverboatgam ing tax Addition o1plantfacilitles. Louisiana TeehniesIColege cam puses (198,637) 67,212 72, (1,388,788) 1,391,090 (1,363) (475,OOO) 10,152,040) (19,901) (14,342) ,873 (3,183 ( ,619,856 Fund Balance atjune 30,1999, asres~ted $8,927,311)= $5,723,47~ $3,290,750 $1,568,804 $812,191 $275,410, STU D ENT LO A N FU N DS The fund balances ofthe studentloan funds atjune 30,2000,forDelgado Com m unity Co lege are as fo low s: Perkins Loan Fund M isce laneous otherloan funds Teta $15, $28, PLA NT FUNDS In August1987,the FinancialAccounting Standards Board (FASB)issued StatementNo.93, Recognition of D epreciation by N ot-for-profit Organizations, w hich requires not-for-profit organizations,including co leges and universities,to recognize depreciation oftheirlong-lived tangible assets in their financialstatem ents. In January 1988,the G A SB issued Statem ent N o.8, w hich addresses the im plem entation of FASB Statem ent No. 93. Codification of G overnm ental Accounting and Financial Reporting Standards Section Co5.102 states that, "Co leges and universities that fo low the A ICPA Industry Audit G uide, A udits of C o leges and U niversities,should notchange theiraccounting and reporting fordepreciation of capitalassets as a resultoffasb StatementNo.93;the GASB has severalprojects underway that m ay affect that reporting." recognized by the system. A sum m ary ofinvestm entin plantfo low s As reflected in note l-d, depreciation is not currently 28

32 LO UISIA NA CO M M UNITY A ND TEC H NICAl.CO LLEG E SYSTEM STATE O F LO UISIANA Notes to the FinancialStatements (Continued) Board ofsupervisors and System Adm inistration Baton Elaine P. Rouge Delgado Nunez Com m unity Com m unity Com m unity Colege Colege Colege Land Im provem ents Buildings Equipm ent Library books Construction-inprogress $611,854 $2,952,971 9,555, , $800,000 4,204,225 36,451,804 25,292, $1,999,816 71,562 15,864,433 3,493,301 1,251,632 Total $611,854 $15,183,768 $78, $22.593,969 The Division ofadm inistration - Ofice of Facility Planning and Controlis responsible forthe adm inistration and m onitoring ofa lconstruction-in-progress. In accordance w ith R.S.39: , the Louisiana C om m unity and Technical Co lege System, except for the Board of Supervisors and System Adm inistration and the Louisiana TechnicalCo lege cam puses oft.h. H arris,m organ Sm ith,and O akdale,com plied w ith the Louisiana m ovable property statutes. 18. AUXILIARY ENTERPRISES The system m aintains various auxiliary enterprise funds that provide serv ices to the system com m unity. Segm entinform ation forthe yearended June 30,2000,fo low s: NetIncrease in Fund Balance Net Assets Food sel~ices Housing Bookstore Other $ , $20, ,384 (64,587) $238, ,154 5,817,498 60,039 Tota $605,738 $702,786 $6,329,216 29

33 Bossier Parish South Leuisiana River Parishes Louisiana C om m unity C om m unity C om m unity "rechnical Co]lege Colege Cole~le Colege Tota $3,216,945 1,454,258 $507,480 $390, $4,978,574 79,232, ,862 $10,641,361 4,275, ,103, ,798,592 9,290,718 $4,671,203 $537,452 $390, $166,569,746 $289,050,500

34 LO UISIA NA CO M M UNITY A ND TECHNICA L CO LLEG E SYSTEM STATE O F LO U ISIA NA Notes to the FinancialStatements (Continued) 19. FO UNDATIO NS The accom panying financial statem ents do not include the accounts of the fo low ing foundations: Baton Rouge Com m unity Co lege Foundation, Incorporated BossierParish Com m unity Co lege Foundation BossierParish Com m unity Co lege Alum niassociation Delgado Com m unity Co lege Foundation Delgado Com m unity Co lege Alum niassociation Nunez Com m unity Co lege Foundation RiverParishes Com m unity Co lege Foundation,Incorporated These foundationsare separate corporations whose financialstatements are subjectto auditby independentcertified public accountants. 20. DEFERRED CO M PENSATIO N PLAN UNEXPENDED A PPRO PRIATIO N The system at June 30, 2000 has unexpended G eneral Fund appropriation in current operations - unrestricted of$1,525,671 and in currentoperations - restricted of$3, 810,565. These balances and theirdisposition are described as fo low s: Elaine P.Nunez Com m unity Co lege has unexpended G eneralfund appropriation of $33,118 in currentoperations -unrestricted. As provided by Act971 of1985 [R. S (A)],the university adopted a building and facility preventative maintenance program. These funds are retained forthese purposes.

35 LO UISIANA CO M M UNITY A ND TEC HNICA L CO LLEG E SYSTEM STATE O F LO U ISIA NA Notes to the FinancialStatements (Concluded) Bossier Parish C om m unity Co lege has unexpended G eneral Fund appropriation of $148,771in currentoperations -unrestricted. These funds were used to offseta deficit of$475,000. Louisiana TechnicalColege has unexpended GeneralFund appropriation of$3,810,565 in current operations - restricted for am ounts retained in the Vocational Technical Enterprise Fund. As provided by R.S. 17:2008,a lunexpended and unencum bered funds rem aining atthe end ofeach fisca lyearsha lrem ain in the fund to the creditof the voca tional-technicalcam pus to w hich it w as appropriated. These m onies w ilbe used to fund any unfunded m andates in the ca m pus'operating budgets. 22. IM PROVEM ENTS TO PLA NT O N BEHA LF O F CO LLEG E The system has entered into an agreem entw ith the Delgado Com m unity Co lege Foundation (the Foundation)on June 1,1999,whereby the Foundation agreed to develop,construct,and renovate the studentlife centerand w ould lease back the studentlife centerto the system for use by students, faculty, and staf of Delgado Com m unity Co lege. The Louisiana Loca l G overnm ental Environm ental Facilities and Com m unity Developm ent Authority issued $4,395,000 of 30-year bonds dated and delivered Novem ber 9, 1999, on behalf of the Foundation fordevelopm ent,construction,and renovation ofthe studentlife ca nter. Delgado Com m unity Co lege wiluse future m onies co lected from the studentself-assessed fees to fund theirannua ly appropriated lease paym ent. The system has agreed to pay a base rentalrate sem iannua ly,on each M arch 15 and Septem ber 15,during the term of the facilities'lease, com m encing M arch 15,2000,in an am ountequalto the sum of principaland/orinterestdue. As ofjune 30,2000,Delgado Com m unity Colege had made an initialpaym entof$99,866. The developm ent,construction,and renovation ofthe student life centerw as notcom plete at June FUND DEFICITS The GeneralFund had a deficitof$11,029,382 forthe yearended June 30,2000,in the current operations -unrestricted account. The deficitwas the resultofthe recognition ofcom pensated absences. The deficit w ilbe resolved by paying com pensated absences from future fiscal years. 32