Auxiliary Organizations Presented by Patty McClendon Senior Manager - KPMG LLP Presented by Patty McClendon Senior Manager - KPMG LLP

2 Supplementary Information – Highlights of Significant Changes  No statement of cash flows  New disclosures (“Other Information”)  Endowment cash and cash equivalents  Composition of investments  Breakout of significant components of “other” category  Current and noncurrent portions  Long-term liabilities activity schedule  Breakout of significant components of “other” category  Current and long-term portions  Prior period adjustment(s) information, if any

3 Supplementary Information – Highlights of Significant Changes  New format to Note 16 – Other Information –Check formulas added –Protected cells

4 Key Deadlines  4 th Quarter FIRMS data submission – July 31, 2004  Audited financial statements and supplementary schedules – September 30, 2004  FIRMS detail IPEDS reporting – October 31, 2004 (see Chapter 7)  Campus President’s review of auxiliary organizations’ audited financial statements – December 1, 2004 (sample letter provided – see Chapter 8)

5 Statement of Net Assets  Classified balance sheet  Reconcile inter-entity account balances with campus and other auxiliaries  Net assets categories  Invested in capital assets, net of related debt - Debt related to unspent bond proceeds should not be included in this category but rather in the same net assets category as the unspent bond proceeds (e.g. restricted for capital projects)  Restricted

6 Statement of Revenue, Expenses and Changes in Net Assets  No significant changes from prior year

7 Common Errors  Additions to accumulated depreciation does not equal depreciation expense (22)  Capital assets rollforward does not agree to statement of net assets (15)  FASB financial statements do not include supplementary information (11)  Restatement adjustments to beginning net assets are not listed (10)

8 Common Errors (cont’d.)  Long-term obligations rollforward does not agree to statement of net assets (8)  Total fair value of investments, per supplementary information, does not agree to the statement of net assets (4). Investments must include short-term, endowment and long-term investments.

9 Questions?