REPORT NO. 2011-108 FEBRUARY 2011 SEMINOLE STATE COLLEGE OF FLORIDA Financial Audit For the Fiscal Year Ended June 30, 2010_part5 pptx

FEBRUARY 2011 REPORT NO. 2011-108 SEMINOLE STATE COLLEGE OF FLORIDA A COMPONENT UNIT OF THE STATE OF FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J UNE 30, 2010 37 of $22.5 million with payments of $500,100 made as a deposit, $12,500,000 made at closing, and the $10 million balance plus interest due by July 29, 2011. On September 29, 2010, the College closed on a 2.58 acre parcel of land adjacent to the south entrance of the Sanford/Lake Mary Campus. The purchase price of this property was $600,000 and was funded with general operating funds. This is trial version www.adultpdf.com FEBRUARY 2011 REPORT NO. 2011-108 SEMINOLE STATE COLLEGE OF FLORIDA OTHER REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS – OTHER POSTEMPLOYMENT BENEFITS PLAN 38 Actuarial UAAL as a Actuarial Accrued Unfunded Percentage Actuarial Value of Liability (AAL) AAL Funded Covered of Covered Valuation Assets (2) (UAAL) Ratio Payroll Payroll Date (1) (a) (b) (b-a) (a/b) (c) [(b-a)/c] 7/1/2007 $ 715,854$ 715,854$ 0% 31,261,578$ 2.3% 7/1/2009 $ 822,003$ 822,003$ 0% 34,652,305$ 2.4% Notes: (1) (2) The initial OPEB actuarial calculation was performed as of July 1, 2007, for the College as it im p lemented the p rovisions of GASB 45. The College's OPEB actuarial valuation used the projected unit credit actuarial method to estimate the unfunded actuarial liabilities. This is trial version www.adultpdf.com FEBRUARY 2011 REPORT NO. 2011-108 SEMINOLE STATE COLLEGE OF FLORIDA OTHER REQUIRED SUPPLEMENTARY INFORMATION NOTES TO REQUIRED SUPPLEMENTARY INFORMATION 39 1. SCHEDULE OF FUNDING PROGRESS – OTHER POSTEMPLOYMENT BENEFITS PLAN The July 1, 2009, unfunded actuarial accrued liability (UAAL) of $822,003 was 14.8 percent higher than the July 1, 2007, UAAL of $715,854. The increase was due to the expected growth of liabilities over time and demographic changes of approximately $133,000. Updated participation and medical trend assumptions accounted for an additional $55,000 increase in the liability. These increases were partially offset by a decrease in the UAAL of $82,000 resulting from updated claims costs, contributions, and the revised mortality assumption. This is trial version www.adultpdf.com FEBRUARY 2011 REPORT NO. 2011-108 40 AUDITOR GENERAL STATE OF FLORIDA G74 Claude Pepper Building 111 West Madison Street Tallahassee, Florida 32399-1450 The President of the Senate, the Speaker of the House of Representatives, and the Legislative Auditing Committee 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 We have audited the financial statements of Seminole State College of Florida, a component unit of the State of Florida, and its discretely presented component unit as of and for the fiscal year ended June 30, 2010, which collectively comprise the College’s basic financial statements, and have issued our report thereon included under the heading INDEPENDENT AUDITOR’S REPORT ON FINANCIAL STATEMENTS. Our report on the financial statements was modified to include a reference to other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Other auditors audited the financial statements of the discretely presented component unit as described in our report on the College’s financial statements. This report does not include the results of the other auditors’ testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors. Internal Control Over Financial Reporting In planning and performing our audit, we considered the College’s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the College’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the College’s internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the College’s financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting DAVID W. MARTIN, CP A AUDITOR GENERAL PHONE: 850-488-5534 F AX: 850-488-6975 This is trial version www.adultpdf.com FEBRUARY 2011 REPORT NO. 2011-108 41 that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether the College’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, rules, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Pursuant to Section 11.45(4), Florida Statutes, this report is a public record and its distribution is not limited. Auditing standards generally accepted in the United States of America require us to indicate that this report is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, Federal and other granting agencies, and applicable management and is not intended to be and should not be used by anyone other than these specified parties. Respectfully submitted, David W. Martin, CPA February 9, 2011 This is trial version www.adultpdf.com . FEBRUARY 2011 REPORT NO. 2011- 108 SEMINOLE STATE COLLEGE OF FLORIDA A COMPONENT UNIT OF THE STATE OF FLORIDA NOTES TO FINANCIAL STATEMENTS (CONTINUED) J UNE 30, 2010 37 of $22.5. BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS We have audited the financial statements of Seminole State College of Florida, a component. unit of the State of Florida, and its discretely presented component unit as of and for the fiscal year ended June 30, 2010, which collectively comprise the College s basic financial statements,