REPORT NO. 2010-138 MARCH 2010 EDISON STATE COLLEGE _part1 doc

REPORT NO. 2010-138
M
ARCH 2010

EDISON STATE COLLEGE
Financial Audit
For the Fiscal Year Ended
June 30, 2009



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BOARD OF TRUSTEES AND PRESIDENT
Members of the Board of Trustees and President who served during the 2008-09 fiscal year are listed below:
Count
y
Dr. Washington D. Baquero, Chairman Lee
Dr. Randall T. Parrish, Jr., Vice Chairman Hendr
y
A
nn E. Berlam Collie
r
JoAnn P. Helphenstine, from 8-07-08 (1) Charlotte
W. Mahlan Houghton, Jr. Lee
Dr. David M. Klein Charlotte
Mary Lee Mann Lee
Julia G. Perry Glades

Christopher T. Vernon, J.D. Collie
r
Note: (1)
Dr. Kenneth P. Walker, President
Board member position was vacant from
July 1, 2008, through August 6, 2008.

T
he Auditor General conducts audits of governmental entities to provide the Legislature, Florida’s citizens, public entity
management, and other stakeholders unbiased, timely, and relevant information for use in promoting government
accountability and stewardship and improving government operations.
The audit team leader was Claudia A. Salgado, and the audit was supervised by Deirdre F. Waigand, CPA. Please address
inquiries regarding this report to James R. Stultz, CPA, Audit Manager, by e-mail at
or by telephone
at (850) 922-2263.
This report and other reports prepared by the Auditor General can be obtained on our Web site at
www.myflorida.com/audgen
; by telephone at (850) 487-9024; or by mail at G74 Claude Pepper Building, 111 West Madison
Street, Tallahassee, Florida 32399-1450.
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MARCH 2010 REPORT NO. 2010-138

EDISON STATE COLLEGE
TABLE OF CONTENTS
PAGE
NO.
EXECUTIVE SUMMARY i
INDEPENDENT AUDITOR’S REPORT ON FINANCIAL STATEMENTS 1
MANAGEMENT’S DISCUSSION AND ANALYSIS 3

BASIC FINANCIAL STATEMENTS
Statement of Net Assets 13
Statement of Revenues, Expenses, and Changes in Net Assets 15
Statement of Cash Flows 16
Notes to Financial Statements 18
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
40
Internal Control Over Financial Reporting 40
Compliance and Other Matters 41


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MARCH 2010 REPORT NO. 2010-138
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In our opinion, based on our audit and the report of the other auditors, the financial statements referred to above
present fairly, in all material respects, the respective financial position of Edison State College and of its discretely
presented component unit as of June 30, 2009, and the respective changes in financial position and cash flows thereof
for the fiscal year then ended, in conformity with accounting principles generally accepted in the United States of
America.
In accordance with Government Auditing Standards, we have also issued a report on our consideration of Edison State
College’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws,
rules, regulations, contracts, and grant agreements and other matters included under the heading INDEPENDENT
AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF THE FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS
.
The purpose of that report is to describe the scope of our testing of internal control over financial reporting and
compliance and results of that testing, and not to provide an opinion on the internal control over financial reporting
or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be considered in assessing the results of our audit.
The MANAGEMENT’S DISCUSSION AND ANALYSIS on pages 3 through 12 is not a required part of the
basic financial statements, but are supplementary information required by accounting principles generally accepted in
the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of
management regarding the methods of measurement and presentation of the required supplementary information.
However, we did not audit the information and express no opinion on it.
Respectfully submitted,

David W. Martin, CPA
March 15, 2010

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MARCH 2010 REPORT NO. 2010-138
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financial activities to the State of Florida. Based on the application of the criteria for determining component
units, the Financing Corporation is included within the College’s reporting entity as a blended component
unit. The Financing Corporation’s fiscal year is from April 1
st
through March 31
st
. As a result, the Financing
Corporation’s financial activities are included in the MD&A and accompanying financial statements are for
the years ended March 31, 2009, and 2008, respectively.
T

HE STATEMENT OF NET ASSETS AND THE STATEMENT

OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS
One of the most important questions asked about the College’s finances is, “Is Edison State College, as a whole,
better or worse off as a result of the year’s activities?” The statement of net assets and the statement of revenues,
expenses, and changes in net assets report information on the College as a whole and on its activities in a way that
helps answer this question. When revenues and other support exceed expenses, the result is an increase in net assets.
When the reverse occurs, the result is a decrease in net assets. The relationship between revenues and expenses may
be thought of as Edison State College’s operating results.
These two statements report Edison State College’s net assets and changes in them. You can think of the College’s
net assets, the difference between assets and liabilities, as one way to measure the College’s financial health or financial
position. Over time, increases or decreases in the College’s net assets are one indicator of whether its financial health
is improving or deteriorating. You will need to consider many other nonfinancial factors, such as certain trends,
student retention, condition of buildings, and the safety of the campus, to assess the overall financial health of the
College.
These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the
accounting used by most private-sector institutions. All of the current year revenues and expenses are taken into
account regardless of when cash is received or paid.
A condensed statement of assets, liabilities, and net assets for the College and its discretely presented component unit
for the respective periods ended is shown in the following table:
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MARCH 2010 REPORT NO. 2010-138
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Assets, Liabilities, and Net Assets at
(In Thousands)
6-30-09 6-30-08 3-31-09 3-31-08
Assets
Current Assets 47,167$ 28,715$ 1,272$ 2,322$
Capital Assets, Net 94,176 85,640

Other Noncurrent Assets 7,792 9,745 39,685 53,338
Total Assets
149,135 124,100 40,957 55,660
Liabilities
Current Liabilities 4,246 3,896 5,158 10,990
Noncurrent Liabilities 6,836 6,581
Total Liabilities
11,082 10,477 5,158 10,990
Net Assets
Invested in Capital Assets,
Net of Related Debt 91,596 82,920
Restricted 37,356 24,504 31,657 28,372
Unrestricted 9,101 6,199 4,142 16,298
Total Net Assets
138,053$ 113,623$ 35,799$ 44,670$
Increase (Decrease) in Net Assets
24,430$
21.5%
(8,871)$
-19.9%
College Component Unit

The following chart presents the College’s net assets as of June 30:
Net Assets: College
(In Thousands)


$82,920
$24,504
$6,199

$91,596
$37,356
$9,101
$0
$50,000
$100,000
Invested in Capital
Assets, Net of Related
Debt
Restricted Unrestricted
2008
2009
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