Auxiliary OrganizationsAuxiliary Organizations

Presented by Patty McClendon

Senior Manager - KPMG LLP

Presented by Patty McClendon

Senior Manager - KPMG LLP

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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

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Supplementary Information – Highlights of Significant Changes

New format to Note 16 – Other Information

– Check formulas added

– Protected cells

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Key Deadlines

4th 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)

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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

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Statement of Revenue, Expenses and Changes in Net Assets

No significant changes from prior year

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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)

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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.

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Questions?