Audit report lauds GCCC for financial reporting
By ANGIE HAFLICH
By ANGIE HAFLICH
Garden City Community College was applauded for its consistency in financial reporting Tuesday night during a presentation of the 2012-13 college audit at the Board of Trustees meeting.
Charles H. Claar, Jr., of Lewis, Hooper and Dick, LLC, presented the audit, stating that there were no weaknesses or deficiencies identified in the college's financial statements or federal awards.
"Your controls in financial accounting are functioning as you've established it and have intended to be, and it's being implemented in that fashion," Claar said. "And no Kansas statutory violations were noted."
Claar told trustees that the college's total assets are $38,402,654; its total operating revenue is $9,954,420; and its total non-operating revenue is $13,984,000.
Using a pie chart in his Power Point summary of the audit report, Claar showed GCCC's revenue coming from eight major sources: Finney County property taxes, 46 percent; state and local grants, 2 percent; the state of Kansas, 12 percent; federal grants and contracts, 26 percent; tuition and fees, 5 percent; auxiliary funds, 3 percent; other miscellaneous sources, 5 percent; and investment income, 1 percent.
Operating revenues increased by 29.54 percent from fiscal year 2012, due primarily to an increase in revenues from federal grants, namely the Trac 7 grant.
Property tax revenue accounting for 46 percent of revenue, compared to 51 percent a year ago, Claar said, was because of the increase in federal grant revenue and other sources.
Expenditures came from eight major sources: 35 percent from instruction, 4 percent from academic support, 17 percent from student services, 3 percent from community service, 13 percent from institutional support, 9 percent from auxiliary enterprises, 7 percent from depreciation and 12 percent from operation and maintenance of the physical plant,
"That's where you see a lot of commercial and municipal businesses drop to save money. When things are tight, you cut the maintenance and operating costs of maintaining your plant and facility. Well, in the long run, that's going to cost you, so you've done a really very consistent job of maintaining and keeping that going, so you shouldn't run into that issue," Claar said.
According to the report, actual expenditures, excluding transfers, for the general fund were under budget by $2,350,333, or 15.1 percent, and the comparison of actual to published budget reflects that GCCC operated within its legal budget authority as required by the State of Kansas.
Claar told trustees that the 2013 fiscal year is the first since 2009, when he said the economic downturn had the opposite effect, that the college's revenues have exceeded expenditures.
He also told trustees that the college's reserve in the general fund was at 21.7 percent, exceeding the college's goal of a 20 percent reserve.
According to the report, the college's capital assets increased a total of $2,300,996 from 2012, as a result of construction in progress. Major projects during fiscal year 2013 included renovations to the academic, administration and John Collins buildings and the acquisition of the indoor rodeo arena.
The report also said that GCCC's long-term debt increased by $1,321,420, 17 percent over the previous fiscal year. The key factor in this increase, the report said, was the issuance of $2,600,000 in capital lease obligations for the multi-sports facility.