Fiscal Year 2010 IHL System A-133 Audit Report - Mississippi Board ...

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STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNINGManagement’s Discussion and Analysis (Unaudited)June 30, 2010 and 2009The following is a list of abbreviations used throughout this financial report for the member universities of theIHL System:ASU -- Alcorn State UniversityDSU -- Delta State UniversityJSU -- Jackson State UniversityMSU -- Mississippi State UniversityMUW -- Mississippi University for WomenMVSU -- Mississippi Valley State UniversityUM -- University of MississippiUSM -- University of Southern MississippiUMMC -- University of Mississippi Medical CenterIHL Executive Office -- Institutions of Higher Learning – Executive OfficeMCVS -- Mississippi Commission for Volunteer Services - Off-campus entityIHL SYSTEM -- (Summary of all of the above)Overview of the Financial StatementsThe IHL System’s financial report consists of three sections – Management’s Discussion and Analysis, financialstatements including notes, and financial statements of the discrete component units. The three main statementsof IHL System’s financial statements are Statement of Net Assets, the Statement of Revenues, Expenses, andChanges in Net Assets, and the Statement of Cash Flows.Financial StatementsThe financial statements present information for the IHL System as a whole. The Statement of Net Assetspresents the financial position of the IHL System at the end of the fiscal year and includes all assets and liabilitiesfor all institutions within the IHL System. The difference between total assets and total liabilities – net assets – isone measure of the IHL System’s financial health or position. The change in net assets is a useful indicator offinancial health of the System. Over time, increases or decreases in the System’s net assets provides a usefultrend in assessing whether its financial health is improving. Other non-financial factors such as enrollment trendsand the condition of the physical plant are also useful in evaluating the overall financial health of the IHLSystem.4
STATE OF MISSISSIPPI INSTITUTIONS OF HIGHER LEARNINGManagement’s Discussion and Analysis (Unaudited)June 30, 2010 and 2009The Statement of Revenues, Expenses and Changes in Net Assets presents the operating results of the System,as well as non-operating revenues and expenses. Operating revenues are received for providing goods andservices to various customers and constituencies of the System. Operating expenses are incurred to acquire orproduce the goods and services provided in return for the operating revenues. Non-operating revenues arereceived for which goods and services are not provided as an exchange transaction. State appropriations, whichrepresent 26 percent of total system revenues, are classified a non-operating revenue because these revenues arerecognized at the state level rather than at the institutional level. This accounting treatment for this revenueclassification typically results in the system showing an operating loss. Other typical non-operating revenuesources include gifts, grants and appropriations restricted for capital purposes.The Statement of Cash Flows provides information about the cash sources and uses of the system. Additionalinformation for this statement is provided later in this report.Financial HighlightsThe financial position of the IHL System has shown steady growth over the last several years. Net assets haveincreased by $290.3 million (assets minus liabilities) since June 30, 2008. The main sources of this improvementwere a $293.3 million increase in capital assets, net of related debt, and a $109.9 million increase in unrestrictednet assets. Many of the institutions have recently undergone, or are in the process of major building projects,especially for student housing. Additional details for these increases are presented later in this report.Despite tuition rate increases, enrollment has continued to increase for the IHL System since 1999. Full timestudent enrollment, as well as student headcounts, for the fall 2009 academic term were at an all time high for theIHL System (see chart below). IHL management believes this increase is indicative of the strong demand for aquality educational product at a reasonable price.5
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A deficiency in internal control ov
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In our opinion, the IHL System comp
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University of Mississippi Medical C
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FA09-SW-01 Internal Controls over R
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Fiscal Year 2010 IHL System A-133 Audit Report - Mississippi Board ...

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