SACS Compliance Certification Report (PDF) - South Florida State ...

the formula with adjustments for the operating cost of new facilities and enrollment growth.The 2010-11 operating budget appropriations from the state illustrate the changes in fundinglevels for the current fiscal year compared to the total state and federal funding for the previousfiscal year.Student Fees – Student fee rate ranges are established by the Florida Legislature. The DistrictBoard of Trustees (DBOT) adopts student fee rates within these ranges to be charged as part of thebudget for the upcoming year and in accordance with Florida Statutes (FS) 1009.22 and 1009.23.The college has experienced increases in student fee revenue in recent years as a result of significantenrollment growth and increases in student fee rates. Student fee revenues include scholarshipallowances. For financial reporting purposes, scholarship allowances reduce tuition revenue by theamount of tuition paid by scholarships.Other Revenues – The college operates several ancillary programs in conjunction with itsvocational training programs as well as community education programs that have generated steadilyincreasing sales and services revenues. Federal support, gifts and transfers-in have steadilyincreased since 2006-07 as well.Financial StabilityPer FS 1011.84, any time the unencumbered balance in the general fund of the community collegeboard of trustees-approved operating budget falls below 5%, the President must provide writtennotification to the State Board of Education. This is a benchmark used to provide a guideline for thecollege's financial policies to provide for a sound financial base. The college has had an ending fundbalance well in excess of 5% for each of many years (See calculation at the end of Schedule 1 in theAnnual Financial Reports; Finance | Annual Financial Report 2006 FYE (Page 40), Finance |Annual Financial Report 2007 FYE (Page 42),Finance | Annual Financial Report 2008 FYE(Page 48), Finance | Annual Financial Report 2009 FYE (Page 42), and Finance AnnualFinancial Report 2010 FYE (Page 43)). At no time has the unencumbered balance in the generalfund fallen below the requisite 5% level, validating fiscal stability at all times.Further evidence of SFCC’s sound financial base and demonstrated financial stability can be found inresponse to criteria 3.10.1.Evidence of Financial Statements1. Annual Financial Statements – The college is audited by the State of Florida’s Auditor General inaccordance with FS 11.45. The Auditor General issues a separate audit report for the college andvalidates that the audited numbers are carried forth for accumulation in the State of FloridaComprehensive Annual Financial Report since the college is a component unit of the state of Florida.To get the audits for all the political subdivisions in the state of Florida completed in a timelymanner, the Auditor General splits the college’s Single Audit Act audit into three distinct audits.a. Financial Statement Audit - The financial statements (Annual Financial Report FYE 2006,Annual Financial Report FYE 2007, Annual Financial Report FYE 2008, AnnualFinancial Report FYE 2009, and Annual Financial Report FYE 2010) and all accompanyingschedules and notes are audited in accordance with auditing standards generally accepted in theUnited States and Government Auditing Standards as prescribed by the Comptroller General ofthe United States. As part of the financial statement audit, the independent auditor also issues areport on the college’s system of internal control as it relates to financial reporting and a writtenmanagement letter (Financial Audit 2006 FYE, Financial Audit 2007 FYE , Financial Audit2008 FYE, and Financial Audit 2009 FYE). As stated in the executive summaries, theindependent auditors found that financial statements were presented fairly and that there wereno material weaknesses in internal control (unqualified opinion for each year). The fiscal yearended June 30, 2010 financial audit will be submitted under separate cover upon receipt by thecollege. A draft of the FYE 2010 is included for reference (Preliminary Financial StatementAudit Report FYE 2010).b. Federal Office of Management and Budget Circular A-133 Audit – The independent auditorannually audits the college’s Schedule of Federal Assistance as part of a statewide federal audit.South Florida Community College Page 42 / 202