REPORT NO. 2009-116
F
EBRUARY 2009

SOUTH FLORIDA COMMUNITY
COLLEGE
Financial Audit
For the Fiscal Year Ended
June 30, 2008 This is trial version
www.adultpdf.com

BOARD OF TRUSTEES AND PRESIDENT
Members of the Board of Trustees and President who served during the 2007-08 fiscal year are listed below:
County

Dr. Louis H. Kirschner, Chair from 7-25-07 DeSoto
Gary Delatorre, Vice-Chair from 7-25-07 Hardee
Jan B. Brewer, Vice-Chair to 7-24-07 DeSoto
Tamela Cullens Highlands
Joan H. Hartt Highlands
David Leidel from 8-31-07 (1) Highlands
Richard L. Maenpaa Hardee
Kimble D. McKay, Chair to 7-24-07,
to 8-24-07 (1)


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
33
Internal Control Over Financial Reporting 33
Compliance and Other Matters 34
FEBRUARY 2009 REPORT NO. 2009-116
-4-
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 South Florida Community College‘s operating results.
These two statements report South Florida Community 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 indication 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 the buildings, and the safety of the campus, to assess
the College’s overall financial health.
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 fiscal year’s revenues and expenses are taken
into account regardless of when cash is received or paid.
A condensed statement of assets, liabilities, and net assets of the College and its component unit for the respective
fiscal years is shown in the following table:
6-30-08 6-30-07 12-31-07 12-31-06
Assets
Current Assets 10,519$ 8,469$ 4,447$ 3,719$
Capital Assets, Net 58,605 55,498 1,539 1,310
Other Noncurrent Assets 3,661 4,818 4,366 4,429
Total Assets
72,785 68,785 10,352 9,458
Liabilities
Current Liabilities 1,612 3,241 141 137
Noncurrent Liabilities 1,915 1,725
Total Liabilities
3,527 4,966 141 137
Net Assets
Invested in Capital Assets,
Net of Related Debt 58,605 55,498 1,539 1,310

Total Operating Revenues
4,047 5,925 211 183
Less, Operating Expenses 29,213 28,736 1,593 1,190
Operating Loss
(25,166) (22,811) (1,382) (1,007)
Nonoperating Revenues (Expenses)
State Appropriations 17,374 16,820
Other Nonoperating Revenues 5,448 4,551 2,272 2,016
Nonoperating Expenses (5) (761)
Net Nonoperating Revenues
22,822 21,366 2,272 1,255
Income (Loss) Before Other Revenues,
Expenses, Gains, or Losses
(2,344) (1,445) 890 248
Capital Appropriations 7,207 5,801
Capital Grants, Contracts, Gifts, and Fees 576 960
Increase in Net Assets
5,439 5,316 890 248
Net Assets, Beginning of Year 63,819 58,503 9,321 9,073
Net Assets, End of Year
69,258$ 63,819$ 10,211$ 9,321$
Operating Results for the Fiscal Years
(In Thousands)
College Component Unit
$ $

Operating Revenues
GASB Statement No. 35 categorizes revenues as either operating or nonoperating. Operating revenues generally
result from exchange transactions where each of the parties to the transaction either give up or receive something of
equal or similar value.

2007-08

College operating revenue changes were the result of the following factors:
¾ Net student tuition decreased by $41,650 after the scholarship allowance. This is a bit misleading given
increased enrollment and increased fee rates. However, scholarships and scholarship allowance increased
$241,792 so the net tuition recognized on the statements is less even though more was charged and received
for tuition.
¾ Federal grants decreased by $1.3 million and State grants decreased by $478,863. This was primarily caused by
the State funding the Florida Center for Dual Addictions directly rather than indirectly through the College
with a grant containing a mixture of Federal and State dollars. Additionally, a private grant was not renewed
and that contributed significantly to the $99,419 decrease in nongovernmental grants and contracts.
¾ Sales and services of educational activities increased by $134,719. The increase was caused by an overall
increase of activity for ancillaries. Conversely, auxiliary revenues decreased by $41,049. The small overall
decrease was caused by small declines to auxiliary activities.
Component unit operating revenues increased $27,899 due to an increase in rental income.
Operating Expenses
Expenses are categorized as operating or nonoperating. The majority of the College’s expenses are operating
expenses as defined by GASB Statement No. 35. GASB gives financial reporting entities the choice of reporting
operating expenses in the functional or natural classifications. The College has chosen to report the expenses in
their natural classification on the statement of revenues, expenses, and changes in net assets and has displayed the
functional classification in the notes to financial statements.
Operating expenses for the College and its component unit for the respective fiscal years are presented in the
following table:
This is trial version
www.adultpdf.com