SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Year Ended June 30, 2012
BYRON BIRD AND ASSOCIATES, CHARTERED
Certified Public Accountants
224 N. Lincoln
Liberal, Kansas 67901
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Financial Statements
For the Year Ended June 30, 2012
TABLE OF CONTENTS
Page
Number
Item
BASIC FINANCIAL STATEMENTS
Independent Auditors' Report
1-2
Management’s Discussion and Analysis
3-12
STATEMENT 1
Statement of Net Assets
13
STATEMENT 2
Statement of Financial Position – SCCC/ATS Foundation
14
STATEMENT 3
Statement of Revenues, Expenses, and Changes in Net Assets
15
STATEMENT 4
Statement of Activities – SCCC/ATS Foundation
16
STATEMENT 5
Statement of Cash Flows
17-18
STATEMENT 6
Statement of Cash Flows – SCCC/ATS Foundation
Notes to the Financial Statements
19
20-36
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE 1
Schedule of Funding Progress – Other Post-Employment Benefits
SCHEDULE 2
Budgetary Comparison Schedules
37
38-50
SUPPLEMENTARY INFORMATION
SCHEDULE 3
Schedule of Current Funds Revenues, Expenditures, and Changes in Fund Balances
SCHEDULE 4
Schedule of Cash Receipts and Cash Disbursements Student Organization Accounts
51
52-53
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Financial Statements
For the Year Ended June 30, 2012
TABLE OF CONTENTS (Continued)
Item
Page
Number
Report on Internal Control over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards
54-55
Independent Auditor’s Report on Compliance with Requirements That Could
Have a Direct and Material Effect on Each Major Program and on Internal
Control over Compliance in Accordance with OMB Circular A-133
56-57
SCHEDULE 5
Schedule of Expenditures of Federal Awards
58
Notes to Schedule of Expenditures of Federal Awards
59
SCHEDULE 6
Summary Schedule of Prior Audit Findings
60
SCHEDULE 7
Schedule of Findings and Questioned Costs
61
MANAGEMENT’S DISCUSSION AND ANALYSIS
Overview of the Financial Statements and Financial Analysis
Seward County Community College/Area Technical School proudly presents its financial
statements for fiscal year ending June 30, 2012. The emphasis of discussions about these
statements will be on current year data for the college only. Comparative data for the
college is included for fiscal year ending June 30, 2011 per GASB 35 and will be briefly
discussed enumerating noteworthy differences between the fiscal years.
Component unit information is provided in the colleges’ audited financial statements for
the Seward County Community College/Area Technical School Foundation, a 501(c)(3)
organization organized February 24, 1969.
The management of Seward County
Community College/Area Technical School expresses no opinion, nor analysis of the
component unit information. However, it is noted that the Seward County Community
College/Area Technical School Foundation received an unqualified opinion with no
statutory or budgetary violations from their independent audit. The audit period for the
Foundation is July 1, 2011 through June 30, 2012. The independent audit firm for the
Foundation is Hay, Rice & Associates, 21 Plaza Drive, Liberal, KS 67901. The reader
of this management discussion and analysis is encouraged to contact the Seward County
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Community College/Area Technical School Foundation directly for a copy of their
audited financial statements when available.
Contact information for the Seward County Community College/Area Technical School
Foundation is:
SCCC/ATS Foundation
Tammy Doll, Secretary
P. O. Box 1137
Liberal, KS 67905-1137
tammy.doll@sccc.edu
There are three financial statements presented:
the Statement of Net Assets; the
Statement of Revenues, Expenses and Changes in Net Assets; and, the Statement of Cash
Flows. All following dollar amounts are presented as actual rounded to the nearest
dollar. This discussion and analysis of the college’s financial statements provides an
overview of its financial activities for fiscal year ending June 30, 2012. All readers are
encouraged to peruse the three audited financial statements and the accompanying notes.
The notes provide insight into the values contained in the financial statements.
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Statement of Net Assets
The Statement of Net Assets presents the Assets (current and non-current), Liabilities
(current and non-current) as of the end of the fiscal year. The purpose of the Statement of
Net Assets is to present to the readers of the financial statements a fiscal snapshot of
Seward County Community College/Area Technical School. The difference between
current and non-current is discussed in the footnotes to the financial statement.
From the data presented, readers of the Statement of Net Assets are able to determine the
assets available to continue the operations of the institution. They are also able to
determine how much the institution owes vendors, investors and lending institutions.
Finally, the Statement of Net Assets provides a picture of the net assets (assets minus
liabilities) and their availability for expenditure by the institution.
Net assets are divided into three major categories. The first category, invested in capital
assets, net of debt, provides the institution’s equity in property, plant and equipment
owned by the institution. The next asset category is restricted net assets, which is divided
into two categories, nonexpendable and expendable.
Seward County Community
College/Area Technical School does not have any nonexpendable restricted assets.
Expendable restricted net assets are available for expenditure by the institution but must
be spent for purposes as determined by donors, the board of trustees, and/or external
entities, most commonly bond covenants, that have placed time or purpose restrictions on
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the use of the assets. The final category is unrestricted net assets. Unrestricted assets are
available to the institution for any lawful purpose of the institution.
ABBREVIATED STATEMENT OF NET ASSETS
JUNE 30
2011 2012 ASSETS Current Assets Capital Assets Other Non Current Assets Total Assets $13,536,210
$31,372,462
$ 145,959
$45,054,631
$12,248,014
$30,238,860
_____ ‐__
$42,486,874
$4,799,352
$6,699,278
$11,498,630
$4,792,986
$5,797,399
$10,590,385
$25,630,921
$24,537,128
LIABILITIES Current Liabilities Long Term Liabilities Total Liabilities NET ASSETS Invested in Capital Assets, net of related debt Restricted for: Expendable Capital Projects Expendable Debt Service Expendable Scholarships Expendable Technology Expendable Other Unrestricted Total Net Assets Total net assets decreased by $1,659,512.
$536,813
$1,246,352
$63,052
$425,143
‐ $5,653,720
$33,556,001
$475,845
$1,253,898
$69,790
$417,752
‐ $5,142,076
$31,896,489
A review of the Statement of Net Assets
reveals the net overall decrease is primarily a result of accumulated depreciation on
capital assets and a reduction in cash.
-6-
Statement of Revenues, Expenses and Changes in Net Assets
Changes in total net assets as presented on the Statement of Net Assets are based on the
activity presented in the Statement of Revenues, Expenses and Changes in Net Assets.
The purpose of the statement is to present the revenues received by the institution, both
operating and non-operating, and the expenses paid by the institution, operating and nonoperating, and any other revenues, expenses, gains and losses received or spent by the
institution.
Generally speaking, operating revenues are received for providing goods and services to
the various customers and constituencies of the college. Operating expenses are those
expenses paid to acquire or produce the goods and services provided in return for the
operating revenues, and to carry out the mission of the college. Non-operating revenues
are revenues received for which goods and services are not provided. Examples of nonoperating revenues are state appropriations and local ad valorem taxes. These are “nonoperating” because state appropriations are provided by the Kansas Board of Regents to
the institution with the Kansas Board of Regents directly receiving no commensurate
goods and services for those revenues. Local ad valorem taxes are provided by the
property owners of Seward County, Kansas with the Seward County property owners
directly receiving no commensurate goods and services for those revenues.
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ABBREVIATED STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET ASSETS
For Fiscal Years Ended June 30
2011
2012
Student Tuition and Fees
$1,681,574
$1,843,283
Grants and Contracts
$3,999,727
$4,735,546
Auxiliary Enterprise Revenue
$1,366,361
$1,516,084
Other Operating Revenue
$495,214
$686,578
Total Operating Revenues
$7,542,876
$8,781,491
Instruction
$7,089,537
$7,548,155
Academic Support
$184,655
$196, 543
Student Services
$2,195,052
$2,238, 794
Institutional Support
$3,189,746
$3,258,019
Operation and Maintenance of Plant
$2,828,802
$2,400,726
Depreciation
$2,917,825
$3,007,337
Scholarships and Fellowships
$1,034,164
$1,107,136
Auxiliary Enterprise Expenses
$1,498,622
$1,660,553
Total Operating Expenses
$20,938,403
$21,417,263
Operating Income (Loss)
($13,395,527) ($12,635,772)
State Appropriations
$3,071,180
$2,995,856
Local Property Taxes
$7,885,525
$8,011,738
Noncapital Gifts and Contributions
$17,500
$21,257
Interest Income
$74,536
$46,663
Interest and Fees on Capital Asset debt
($224,690)
($141,004)
Net Non Operating Revenues (Expenses)
$10,824,051
$10,934,510
Capital gifts and contributions
$13,500
$41,750
Increase in Net Assets
($2,557,976) ($1,659,512)
Net Assets – July 1
$36,113,977
$33,556,001
Net Assets – June 30
$33,556,001
$31,896,489
As presented in the statement, total operating revenues increased $1,238,615.
This
increase is mainly due to the increase in overall enrollment and grant revenue. Operating
expenses increased $478,860.
This increase was primarily from increased costs in
personnel, energy, residence hall updates, and food service, tempered by a reduction of
physical plant capital project costs.
-8-
Statement of Cash Flows
The final statement presented by Seward County Community College is the Statement of
Cash Flows. The Statement of Cash Flows presents detailed information about the cash
activity of the institution during the year. The statement is divided into five parts. The
first part deals with the operating cash flows and shows the net cash used in the operating
activities of the institution. The second section reflects cash flows from non-capital
financing activities. This section reflects cash received and spent for non-operating, noninvesting, and non-capital financing purposes. The third section deals with cash flows
from capital and related financing activities. The section deals with the cash used in the
acquisition and construction of capital and related items. The fourth section reflects the
cash flows from investing activities and shows the purchases, proceeds, and interest
received from investing activities. The fifth section reconciles net cash used to the
operating income or loss reflected on the Statement of Revenues, Expenses and Changes
in Net Assets.
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ABBREVIATED STATEMENT OF CASH FLOWS
For the Fiscal Years Ended June 30
2011 Net Cash Flows From Operating Activities Net Cash Flows From Non‐Capital Financing Activities Net Cash Flows from Capital & Related Financing Activities Net Cash Flows from Investing Activities Net Increase (Decrease) in Cash Cash, Beginning of Year, July 1 Cash, End of Year, June 30 ($10,182,541) $10,681,325 ($1,421,338) $74,536 ($848,018) $12,387,512 $11,539,494 2012 ($9,890,277) $10,637,430 ($2,535,371) $46,663 ($1,741,555) $11,539,494 $9,797,939 The reader of the cash flow statement should be aware that the “Cash Provided by
Operations” will always be negative due to the definitions of operating revenues and
operating expenses as defined by GASB 35.
The decrease in end of year cash balance from 2011 to 2012 was largely from the
retirement of debt, and an increase in revenue receivables.
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CAPITAL ASSET AND DEBT ADMINISTRATION
Certificates of Participation
Seward County Community College/Area Technical School currently has a certificate of
participation note outstanding as of June 30, 2012. This certificate is being retired
through revenues earned from the colleges Auxiliary Enterprise System and by a fee
levied per credit hour on all students enrolled each semester.
Series 20011A
This series of certificates was issued to fund the restructuring of revenue bond debt. The
original debt was used to refund prior debt and construct a 168 bed Student Living Center
with furnishings. The amount of issue was $4,290,000. The outstanding principal as of
June 30, 2012 is $4,215,000. The outstanding interest is $1,142,356.
This series of
certificates matures March 1, 2025.
General Obligation Bonds
Seward County Community College/Area Technical School has no general obligation
bond issues outstanding as of June 30, 2012.
- 11 -
Kansas Finance Authority No Interest Bonds
Seward County Community College/Area Technical School has received two issues of
KFDA No Interest Bonds.
$1,260,000.
$630,000.
The series 2008 PEI Bonds had an original value of
The outstanding principal on this bond issue as of June 30, 2012 is
The series 2009 PEI Bonds had an original value of $1,244,000.
The
outstanding principal on this bond issue as of June 30, 2012 is $777,500. Principal
payments for each bond issue are due December 1.
The series 2008 PEI Bonds mature on December 1, 2015. The series 2009 PEI Bonds
mature on December 1, 2016.
There is no accrued interest on either series of bonds.
Lease Purchase Agreement
Seward County Community College/Area Technical School entered into a lease purchase
agreement with First National Bank of Liberal, Kansas in June 2011.
The purpose of
the agreement was to provide a cash source for the improvement and renovation of a
technical instruction building on the Area Technical School site. The original amount of
the lease purchase agreement was $500,000 with an effective interest rate of 5.641%.
The outstanding principal as of June 30, 2012 is $460,700. The outstanding interest is
$125,341. The final payment is due June 2021.
Dennis M. Sander
Dean of Finance and Operations
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SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Statement 1
Seward County Community College / Area Technical School
Statement of Net Assets
June 30, 2012
College
ASSETS
Current Assets:
Cash and cash equivalents
Taxes receivable
Accounts receivables, net of allowance for doubtfual accounts
of $590,000
Inventories
Total Current Assets
$
9,797,939
501,200
1,551,037
397,838
12,248,014
Noncurrent Assets:
Capital assets, net (Note 5)
Total Noncurrent Assets
30,238,860
30,238,860
42,486,874
Total Assets
LIABILITIES
Current Liabilities:
Accounts payable
Accrued interest on debt
Dorm deposits payable
Deferred revenue (Note 6)
Deposits held in custody for others
Accrued compensated absences
Current portion of early retirement liability
Current portion of long-term debt
Total Current Liabilities
368,062
48,104
19,600
3,133,570
290,879
252,737
56,279
623,755
4,792,986
Noncurrent Liabilities:
Early retirement liability, net of current portion
Net OPEB obligation
Long-term debt
Total Noncurrent Liabilities
89,446
629,976
5,077,977
5,797,399
10,590,385
Total Liabilities
NET ASSETS
Invested in capital assets, net of related debt
Restricted - expendable for:
Capital projects
Debt Service
Scholarships
Technology
Unrestricted
Total Net Assets
24,537,128
475,845
1,253,898
69,790
417,752
5,142,076
$
31,896,489
(The Notes to the Financial Statements are an Integral Part of This Statement)
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SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Statement 2
Seward County Community College / Area Technical School Foundation - Component Unit
Statement of Financial Position
June 30, 2012
Foundation
ASSETS
Current Assets:
Cash and cash equivalents
$
780,877
Accrued interest receivable
4,981,600
Investments
5,762,477
Total Current Assets
Total Assets
$
5,762,477
LIABILITIES AND NET ASSETS
Total Liabilities
NET ASSETS
Unrestricted
Temporarily restricted
Permanently restricted
Total net assets
Total Liabilities and Net Assets
-
$
207,923
1,724,093
3,830,461
5,762,477
$
5,762,477
(The Notes to the Financial Statements are an Integral Part of This Statement)
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SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Statement 3
Seward County Community College / Area Technical School
Statement of Revenues, Expenses, and Changes in Net Assets
For the Year Ended June 30, 2012
College
Operating Revenues
Student tuition and fees (net of scholarship allowances
of $1,035,900)
Federal grants and contracts
State and local grants and contracts
Auxiliary enterprises revenues (net of scholarship allowance
of $415,103)
Other operating revenues
Total operating revenues
$
1,843,283
3,694,344
1,041,202
1,516,084
686,578
8,781,491
Operating Expenses
Instruction
Academic support
Student services
Institutional support
Operation and maintenance of plant
Depreciation
Scholarships and fellowships
Auxiliary enterprises expenses
Total operating expenses
7,548,155
196,543
2,238,794
3,258,019
2,400,726
3,007,337
1,107,136
1,660,553
21,417,263
Net Operating Loss
(12,635,772)
NONOPERATING REVENUES (EXPENSES)
State appropriations
Local property taxes
Noncapital gifts and contributions
Interest income
Interest and fees on capital asset related debt
Net nonoperating revenues (expenses)
2,995,856
8,011,738
21,257
46,663
(141,004)
10,934,510
Loss before other revenues, expenses, gains, and losses
(1,701,262)
41,750
Capital gifts and contributions
Decrease in net assets
(1,659,512)
Net Assets - July 1, 2011
33,556,001
Net Assets - June 30, 2012
$
31,896,489
(The Notes to the Financial Statements are an Integral Part of This Statement)
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SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Statement 4
Seward County Community College / Area Technical School Foundation - Component Unit
Statement of Activities
For the Year Ended June 30, 2012
Foundation
Temporarily Permanently
Unrestricted Restricted
Restricted
Revenue and Other Support:
Donations
Individuals
$
Business organizations
Foundations/Trusts
Clubs/Organizations/Schools
State Board of Regents - Grants
Special events
Interest/Dividends income
Realized gain (loss) on investments
Unrealized gain (loss) on investments
Net Assets Released from Restrictions:
Restrictions Satisfied by Payments:
Scholarships and other student support
Foundation projects
270,857
43,537
303,494
78,574
2,250
139,859
80,180
(182,555)
16,746
10,090
50,517
-
603,201
59,508
(603,201)
(59,508)
-
Total revenue and other support
759,629
73,487
77,353
910,469
Expenses:
Program Expenses:
Scholarships and other student support
Special events
Foundation projects
Total program services
603,201
18,509
59,508
681,218
-
-
603,201
18,509
59,508
681,218
30,139
1,120
31,259
27,468
27,468
-
30,139
28,588
58,727
712,477
27,468
-
739,945
(12,724)
7,034
5,690
34,428
53,053
83,043
170,524
173,495
1,671,040
3,747,418
5,591,953
207,923
1,724,093
3,830,461
5,762,477
Supporting Services:
General and administrative
Investment expenses
Total supporting services
Total expenses
Transfer
Change in Net Assets
Net Assets - July 1, 2011
Net Assets - June 30, 2012
$
29,910
6,835
59,296
6,123
3,764
(9,008)
Total
(The Notes to the Financial Statements are an Integral Part of This Statement)
-16-
317,513
60,462
354,011
78,574
2,250
59,296
145,982
83,944
(191,563)
-
-
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Statement 5
Page 1 of 2
Seward County Community College / Area Technical School
Statement of Cash Flows
For the Year Ended June 30, 2012
College
CASH FLOWS FROM OPERATING ACTIVITIES
Tuition and fees
Grants and contracts
Payments to vendors and suppliers
Payments to employees
Payments for scholarships
Auxiliary enterprise charges
Other receipts (payments)
Net cash used by operating activities
$
1,745,866
4,682,952
(7,900,820)
(8,549,748)
(1,990,785)
1,435,680
686,578
(9,890,277)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Local property taxes
State appropriations
Noncapital donations and special events
Student organization agency transactions
Net cash provided by noncapital financing activities
7,665,749
2,995,856
21,257
(45,432)
10,637,430
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Purchase of capital assets
Capital gifts and contributions
Proceeds from PEI Bond Loan Fund
Proceeds from certificates of participation
Payment to refunded bond escrow agent
Cost of issuance for new debt
Principal paid on capital debt
Interest & fees paid on capital debt
Net cash used by capital and related financing activities
(1,873,725)
41,750
458,949
4,322,805
(4,891,883)
(49,300)
(427,299)
(116,668)
(2,535,371)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest income
Net cash provided by investing activities
46,663
46,663
Net decrease in cash
(1,741,555)
11,539,494
Cash and cash equivalents, Beginning of year
Cash and cash equivalents, End of the year
$
9,797,939
(The Notes to the Financial Statements are an Integral Part of This Statement)
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SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Statement 5
Page 2 of 2
Seward County Community College / Area Technical School
Statement of Cash Flows
For the Year Ended June 30, 2012
College
RECONCILIATION OF NET OPERATING LOSS TO NET CASH
USED BY OPERATING ACTIVITIES:
Net Operating loss
Adjustments to reconcile net operating loss to net cash
used by operating activities:
Depreciation expense
Changes in assets and liabilities:
Receivables, net
Inventories
Accounts payable and accrued liabilities
Deferred revenue
Net cash used by operating activities
Noncash activities
State on-behalf payments for fringe benefits
$
(12,635,772)
3,007,337
(357,686)
(27,197)
118,574
4,467
$
$
(9,890,277)
769,276
(The Notes to the Financial Statements are an Integral Part of This Statement)
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SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Statement 6
Seward County Community College / Area Technical School Foundation - Component Unit
Statement of Cash Flows
For the Year Ended June 30, 2012
Foundation
CASH FLOWS FROM OPERATING ACTIVITIES
Interest and dividend income
Donations and special events
Scholarships and other student support
Special events
Foundation projects
General and administrative
Investment expenses
Net cash provided by operating activities
$
CASH FLOWS FROM INVESTING ACTIVITIES
Net proceeds from purchase and sale of investments
Net cash used by investing activities
(114,178)
(114,178)
CASH FLOWS FROM FINANCING ACTIVITIES
Contributions restricted for permanent investment
Net cash provided by financing activities
77,319
77,319
Net decrease in cash
163,965
616,912
Cash and cash equivalents, Beginning of year
Cash and cash equivalents, End of the year
145,983
794,786
(603,201)
(18,509)
(59,508)
(30,139)
(28,588)
200,824
$
780,877
(The Notes to the Financial Statements are an Integral Part of This Statement)
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SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Notes to Financial Statements
June 30, 2012
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Seward County Community College / Area Technical School (the College) is located in Liberal,
Kansas and serves the surrounding area. The Two-year College was organized in 1967 and is
governed by an elected six member board. The College receives funding from local, state and
federal government sources and must comply with the requirements of these funding source
entities. However, the College is not included in any other governmental “reporting entity” as
defined in Governmental Accounting Standards Board (GASB) pronouncements, since Board
members are elected by the public and have decision making authority, the authority to levy taxes,
the power to designate management, the ability to significantly influence operations and primary
accountability for fiscal matters.
The accounting policies of the College conform to accounting principles generally accepted in the
United States of America as applicable to colleges and universities. The College reports are based
on applicable Governmental Accounting Standards Board (GASB) pronouncements as well as
applicable Financial Accounting Standards Board (FASB) Statements, issued on or before
November 30, 1989, unless those pronouncements conflict with or contradict GASB
pronouncements. The following is a summary of the more significant policies.
Reporting Entity
These financial statements present Seward County Community College / Area Technical School
(the primary government) and its component unit.
Discretely Presented Component Unit
The Seward County Community College / Area Technical School Foundation is considered to be a
related organization to the college. The Foundation is a legally separate, tax-exempt organization
that acts primarily as a fund-raising organization to supplement the resources that are available to
the College in support of its programs.
Although the College does not control the timing or
amount of receipts from the Foundation, the majority of resources, or income thereon that the
Foundation holds and invests, are restricted to the activities of the College by the donors. Because
these restricted resources held by the Foundation can only be used by, or for the benefit of, the
College, the Foundation is considered a component unit of the College and is discretely presented
in the College’s financial statements. During the year ended June 30, 2012, the College received
scholarships totaling $546,492 and expenditure reimbursements of $123,935.
The foundation is reported in separate financial statements because of the difference in its
reporting model, as further described below.
The Foundation reports its financial results under Financial Accounting Standard Board (FASB)
Statements. As such, certain revenue recognition criteria and presentation features are different
from GASB revenue recognition criteria and presentation features. No modifications have been
made to the Foundation’s financial information in the College’s financial reporting entity for these
differences; however, significant note disclosures (see Note 16) to the Foundation’s financial
statements have been incorporated into the College’s notes to the financial statements.
Separately issued audited financial statements of the Foundation may be obtained from:
SCCC /ATS Foundation, Tammy Doll, Secretary, P.O. Box 1137, Liberal, KS 67905-1137.
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SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Notes to Financial Statements
June 30, 2012
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Measurement Focus, Basis of Accounting and Financial Statement Presentation
For financial statement reporting purposes, the College is considered a special-purpose
government engaged only in business-type activities. Accordingly, the College’s financial
statements have been presented using the economic resources measurement focus and the
accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized in
the accounting period in which they are earned, and expenses are recognized in the period
incurred, regardless of the timing of related cash flows. All significant intra-agency and intra-fund
transactions have been eliminated.
Non-exchange transactions, in which the College receives value without directly giving equal value
in return, includes property taxes: federal, state, and local grants: State appropriations, and other
contributions. On an accrual basis, revenue from property taxes is recognized in the period for
which the levy is intended to finance. Revenue from grants, State appropriations, and other
contributions is recognized in the year in which all eligibility requirements have been satisfied.
Eligibility requirements include timing requirements, which specify the year when the resources are
required to be used or the fiscal year when use is first permitted, matching requirements, in which
the College must provide local resources to be used for a specified purpose, and expense
requirements, in which the resources are provided to the College on a reimbursement basis.
The College maintains an encumbrance system for tracking outstanding purchase orders and other
commitments for materials or services not received during the year. Encumbrances at year-end
were approximately $193,970, which represent the estimated amount of expenses ultimately to
result if unperformed contracts in process at June 30, 2012 are completed. Encumbrances
outstanding at June 30, 2012 do not constitute expenses or liabilities and are not reflected in these
financial statements. Encumbered appropriations expire at year-end but are typically renewed in
the next fiscal year.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted
in the United States of America requires management to make estimates and assumptions that
affect the reporting amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of revenues, expenses,
and changes in net assets during the reporting period. Actual results could differ from those
estimates.
Budgetary Information
Kansas statutes require that an annual operating budget be legally adopted for the current
unrestricted funds, capital outlay fund, and retirement of indebtedness funds. Although directory
rather than mandatory, the statutes provide for the following sequence and timetable in the
adoption of the legal annual operating budget:
1. Preparation of the budget for the succeeding calendar year on or before August 1st.
2. Publication in local newspaper on or before August 5th of the proposed budget and notice of
public hearing on the budget.
- 21 -
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Notes to Financial Statements
June 30, 2012
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
3. Public hearing on or before August 15th, but at least ten days after publication of notice of
hearing.
4. Adoption of the final budget on or before August 25th.
The statutes allow for the governing body to increase the originally adopted budget for previously
unbudgeted increases in revenue other than ad valorem property taxes. To do this, a notice of
public hearing to amend the budget must be published in the local newspaper. At least ten days
after publication the hearing may be held and the governing body may amend the budget at that
time. The budget for the year ended June 30, 2012 was amended to establish the designated
construction fund and its subsequent budget authority of $500,000.
The statutes permit transferring budgeted amounts between line items within an individual fund.
However, such statutes prohibit expenditures in excess of the total amount of the adopted budget
of expenditures of individual funds.
All legal annual operating budgets are prepared using the regulatory basis of accounting, in which,
revenues are recognized when cash is received and expenditures include disbursements,
accounts payable, and encumbrances, with disbursements being adjusted for prior year’s accounts
payable and encumbrances. Encumbrances are commitments by the municipality for future
payments and are supported by a document evidencing the commitment, such as a purchase
order or contract. Any unused budgeted expenditure authority lapses at year-end.
A legal operating budget is not required for current restricted funds and agency funds.
Spending in funds which are not subject to the legal annual operating budget requirement is
controlled by federal regulations, other statutes, or by the use of internal spending limits
established by the governing body.
Current and Non-current
Current liabilities are those that will be paid within one year of the date of the statement of net
assets. Non-current liabilities include principal amounts of capital lease obligations and bond
obligations with contractual maturities greater than one year. Current assets are those that are
available to satisfy current liabilities. They include assets that will be converted to cash within one
year of the date of the statement of net assets. Typically other assets and liabilities expected to
become due beyond one year are considered non-current.
Cash and Cash Equivalents
Cash and cash equivalents include deposits held at banks and all highly liquid instruments
purchased with an original maturity of three months or less, plus small amounts of cash maintained
for petty cash and change funds.
- 22 -
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Notes to Financial Statements
June 30, 2012
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Accounts Receivable
Accounts receivable consists of tuition and fee charges to students and auxiliary enterprise
services provided to students, faculty, staff and general public. Accounts receivable also include
amounts due from the federal, state and local governments, or private sources, in connection with
reimbursement of allowable expenditures made pursuant to the college’s grant and contracts.
Accounts receivable are recorded net of estimated uncollectible amounts.
Inventories
Inventories consist primarily of items held for resale by the bookstore, cosmetology, and auto parts
management and are stated at the lower of cost (determined on a first-in, first-out basis) or market.
The cost is recorded as expenses as the inventories are consumed.
Capital Assets
Capital assets include property, plant, equipment, and infrastructure assets such as roads and
sidewalks. Capital assets are recorded at cost at the date of acquisition, or estimated fair value at
the date of donation in the case of gifts. For equipment, the College’s capitalizations policy
includes all items with a unit cost of $5,000 or more, and an estimated useful life of greater than
one year. Renovations to building, infrastructure, and land improvements that significantly
increase the value or extend the useful life of the structure are capitalized. Routine repairs and
maintenance are charged to operating expense in the year in which the expense was incurred.
Property and equipment of the College are depreciated using the straight-line method over the
estimated useful lives of the assets. The estimated useful lives range from 20-30 years for
buildings, 5-30 years for improvements other than buildings, and 3-10 years for equipment and
library materials.
Deferred Revenue
Deferred revenues include (1) tax levies received and accrued that are restricted for future fiscal
years; (2) amounts received for tuition and fees prior to the end of the fiscal year but related to the
subsequent accounting year; (3) amounts received from grant and contract sponsors that have not
yet been earned.
On-Behalf Payments for Fringe Benefits and Salaries
The college recognizes as revenues and expenses, contributions made by the State of Kansas to
the Kansas Public Employee Retirement System (KPERS) on behalf of the College’s employees.
In fiscal year 2012, the state made contributions of $769,276 (see Note 9).
- 23 -
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Notes to Financial Statements
June 30, 2012
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Compensated Absences
The College records a liability for employees’ vacation leave earned, but not taken. The
employees earn vacation time during the current school year and use it the following school year
with no accumulation. The liability and expense incurred are recorded at year-end as accrued
expenses in the statements of net assets, and as a component of compensation and benefit
expense in the statement of revenues, expenses and changes in net assets.
Net Assets
The College’s net assets are classified as follows:
Invested in capital assets, net of related debt – This represents the College’s total investment in
capital assets, net of accumulated depreciation and net of outstanding debt obligations related to
those capital assets.
Restricted net assets – nonexpendable – This includes resources subject to externally imposed
stipulations that they be maintained permanently. Such assets include permanent endowment
funds. The College has no restricted nonexpendable net assets at June 30, 2012.
Restricted net assets – expendable – This includes resources that the College is legally or
contractually obligated to spend in accordance with restrictions imposed by external third parties.
Unrestricted net assets – This includes resources derived from student tuition and fees, state
appropriations, and sales and services of auxiliary enterprises. These resources are used for
transactions relating to the educational and general operations of the College and may be used at
the discretion of the governing board to meet current expenses for any purpose.
When both restricted and unrestricted resources are available for use, the order of use of such
funds is determined on a case-by-case basis. Restricted funds remain classified as restricted until
they are expended.
Property Taxes
In accordance with governing statutes, property taxes are levied each year on all taxable real
property located in the County. The County Treasurer is the tax collection agent for all taxing
entities within the County. Property owners have the option of paying one-half or the full amount of
the taxes on or before December 20 during the year levied with the balance to be paid on or before
May 10 of the following year. Property taxes are recorded on an accrual basis of accounting.
Property tax levies passed in November 2011 were allocated between fiscal years 2012 and 2013.
As of June 30, 2012, the county treasurer had distributed to the College approximately 91% of the
2011 taxes levied. A portion of the 2011 and 2012 taxes levied will be used to finance the year
ending June 30, 2013.
- 24 -
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Notes to Financial Statements
June 30, 2012
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Classification of Revenues
The College has classified its revenues as either Operating or Non-Operating. Operating revenue
include activities that have the characteristics of exchange transactions, such as (1) student tuition
and fees and (2) sales and services of auxiliary enterprises, net of scholarship discounts and
allowances, and (3) most federal, state and non-governmental grants and contracts. Nonoperating revenue includes activities that have the characteristics of non-exchange transactions,
such as (1) local property taxes, (2) state appropriations, and (3) gifts and contributions.
Reimbursements
A reimbursement is an expenditure or expense initially made in one fund, but properly attributable
to another fund. For example, it is common for the general fund to pay a vendor’s bill and have
portions of it reimbursed by other funds. In accounting for such reimbursements, the College
records an expenditure (or expenses) in the reimbursing fund and a reduction of expenditure (or
expense) in the reimbursed fund, following the authoritative guidance of the Governmental
Accounting, Auditing and Financial Reporting.
Federal Financial Assistance Programs
The College participates in federally funded Pell Grants, SEOG Grants, Federal Work-Study,
Family Education Loans programs, and Direct Loans programs. Federal programs are audited in
accordance with the Single Audit Act Amendments of 1996, the U.S. Office of Management and
Budget Revised Circular A-133 Audit of States, Local Governments and Non-Profit Organizations,
and the Compliance Supplement.
Scholarship Discounts and Allowances
Student tuition and fee revenues, and certain other revenues from students, are reported net of
scholarship discounts and allowances in the statements of revenues, expenses and changes in net
assets. Scholarship discounts and allowances are the difference between the stated charge for
goods and services provided by the College, and the amount that is paid by students and/or third
parties making payments on the students’ behalf. Certain governmental grants, such as Pell
grants, and other federal, state or non-governmental programs, are recorded as either operating or
non-operating revenues in the College’s financial statements. To the extent that revenues from
such programs are used to satisfy tuition and fees and other student charges, the College has
recorded a scholarship discount and allowance.
NOTE 2: COMPLIANCE WITH KANSAS STATUTES
Negative Cash:
The Federal Pell grant fund, Bridges grant fund, A-OK grant fund, SSS grant fund, Title V
grant fund, Title III grant fund, and Federal Loan funds have negative cash balances.
Expenditures from this fund are reimbursed by federal and state aid. Per K.S.A. 12-1663 this
is not a violation of Kansas Statute.
Management is aware of no statutory violations for the period covered by the audit.
- 25 -
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Notes to Financial Statements
June 30, 2012
NOTE 3: DEPOSITS AND INVESTMENTS
K.S.A. 9-1401 establishes the depositories which may be used by the College. The statute
requires banks eligible to hold the College’s funds have a main or branch bank in the county in
which the College is located, or in an adjoining county if such institution has been designated as an
official depository, and the banks provide an acceptable rate of return on funds. In addition, K.S.A.
9-1402 requires the banks to pledge securities for deposits in excess of FDIC coverage. The
College has no other policies that would further limit interest rate risk.
K.S.A. 12-1675 limits the College’s investment of idle funds to time deposits, open accounts, and
certificates of deposit with allowable financial institutions; U.S. government securities; temporary
notes; no-fund warrants; repurchase agreements; and the Kansas Municipal Investment Pool. The
College has no investment policy that would further limit its investment choices.
Concentration of Credit Risk. State statutes place no limit on the amount the College may invest in
any one issuer as long as the investments are adequately secured under K.S.A. 9-1402 and 91405.
Custodial credit risk – deposits. Custodial credit risk is the risk that in the event of a bank failure,
the College’s deposits may not be returned to it. State statutes require the College’s deposits in
financial institutions to be entirely covered by federal depository insurance or by collateral held
under a joint custody receipt issued by a bank within the State of Kansas, the Federal Reserve
Bank of Kansas City, or the Federal Home Loan Bank of Topeka, except during designated “peak
periods” when required coverage is 50%. The College has not designated a “peak period”. All
deposits were legally secured at June 30, 2012.
At June 30, 2012, the College’s carrying amount of the deposits was $9,793,739 and the bank
balance was $9,900,525. The bank balance was held by two banks resulting in a concentration of
credit risk. Of the bank balance, $276,225 was covered by federal depository insurance;
$9,624,300 was collateralized with securities held by the pledging financial institutions’ agents in
the College’s name.
Custodial credit risk - investments. For an investment, this is the risk that, in the event of the failure
of the issuer or counterparty, the College will not be able to recover the value of its investments or
collateral securities that are in the possession of an outside party. State statutes require
investments to be adequately secured.
NOTE 4: ACCOUNTS RECEIVABLE, NET
Accounts receivable consisted of the following at June 30, 2012:
Student tuition and fees
Auxiliary enterprises and other operating activities
Federal and state agencies
Gross accounts and grants receivable
Less allowance for doubtful accounts
$ 1,280,908
699,856
160,273
2,141,037
( 590,000)
Net accounts and grants receivable
$ 1,551,037
- 26 -
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Notes to Financial Statements
June 30, 2012
NOTE 5: CAPITAL ASSETS, NET
Capital asset activity for the year ended June 30, 2012 was as follows:
Balance
June 30,
2011
Capital assets not being depreciated:
Land
$
Construction in progress
Total assets not being depreciated
Capital assets being depreciated:
Land improvements
Buildings
Furniture and equipment
Library materials
Total assets being depreciated
294,019
55,530
349,549
Additions/
Transfers
-
Retirements/
Reductions
Balance
June 30,
2012
( 55,530)
( 55,530)
294,019
294,019
1,017,693
40,678,094
9,334,349
1,081,170
52,111,306
1,366,095
563,170
1,929,265
-
1,017,693
42,044,189
9,897,519
1,081,170
54,040,571
52,460,855
1,929,265
( 55,530)
54,334,590
Less accumulated depreciation:
Land improvements
991,279
Buildings
13,383,386
Furniture and equipment
5,632,558
Library materials
1,081,170
Total accumulated depreciation 21,088,393
6,856
2,125,951
874,530
3,007,337
-
998,135
15,509,337
6,507,088
1,081,170
24,095,730
( 1,078,072)
( 55,530)
30,238,860
Total capital assets
Capital assets, net
$31,372,462
NOTE 6: DEFERRED REVENUES
Deferred revenues consisted of the following at June 30, 2012:
Property taxes levied for future period
Summer session payments received in advance
$ 3,067,737
65,833
Total deferred revenues
$ 3,133,570
- 27 -
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Notes to Financial Statements
June 30, 2012
NOTE 7: LONG-TERM LIABILITIES
Changes in long-term liabilities for the College for the year ended June 30, 2012, were as follows:
Balance
Balance
Amounts
Fees &
Beginning
Reductions/
End
due within Interest
of Year
Additions Payments
of Year
one year
Paid
Bonds payable and capital lease obligations:
KBOR PEI Loans
$ 1,720,500
313,000
1,407,500 313,000
4,301
Capital lease obligations
500,000
39,300
460,700
40,755
25,714
Revenue bonds
4,480,000
4,480,000
Certificates of Participation
4,290,000
75,000
4,215,000 270,000
86,654
Deferred Refunding
( 411,883) ( 30,415) ( 381,468)
6,700,500 3,878,117 4,876,885
5,701,732
623,755
116,669
51,251
77,000
7,708
145,725
629,976
252,737
56,279
252,737
-
Total Long-term obligations $ 7,550,986 4,192,028 5,012,844
6,730,170
932,771
116,669
Other liabilities:
Early retirement benefits
Net OPEB Obligation
Compensated absences
88,741
501,300
260,445
108,235
205,676
-
Loans and certificates payable and capital lease obligations consist of the following:
Date of
Balance
Date of
Amount
Final
June 30,
Debt Issue
Issue
of Issue
Maturity
Interest Rates
2012
KBOR PEI Infrastructure Loan
Series 2008
3/26/08 1,260,000
12/1/15
0.00%
630,000
Series 2009
3/31/09 1,244,000
12/1/16
0.00%
777,500
Lease purchase obligation 5/6/11
500,000
6/3/21
5.50%
460,700
Certificates of Participation
Series 20011A
9/1/11
4,290,000
3/1/2025 3.00% to 4.00% 4,215,000
Loan Obligations
The College has entered into two loan agreements with the Kansas Board of Regents (KBOR) at a
zero percentage interest rate with an annual financing fee of 0.25%. The loans are to finance
certain costs of infrastructure improvement projects. Payments are due annually on December 1.
Debt service requirements to maturity for KBOR PEI Infrastructure loans:
Year ending June 30,
2013
2014
2015
2016
2017
Total
Principal
Due
$ 313,000
313,000
313,000
313,000
155,500
$ 1,407,500
Interest/Fees
Due
3,519
2,736
1,954
1,171
389
9,769
- 28 -
Total
Due
316,519
315,736
314,954
314,171
155,889
1,417,269
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Notes to Financial Statements
June 30, 2012
NOTE 7: LONG-TERM LIABILITIES (Continued)
Lease Purchase Agreement
The College has entered into a lease purchase agreement with First National Bank, Liberal Kansas
for the construction of an addition to the ATS campus for the corrosion and process technician
programs. Payments are due monthly.
Assets under capital leases as of June 30, 2012 are as follows:
Building
$ 500,000
Less accumulated depreciation
( 20,254)
Net
$ 479,746
Future minimum lease payments are as follows
Year ending June 30,
2013
2014
2015
2016
2017
2018-2021
Total
Principal
Due
$ 40,755
43,054
45,482
48,048
50,758
232,603
$ 460,700
Interest
Due
24,361
22,062
19,634
17,068
14,358
27,858
125,341
Total
Due
65,116
65,116
65,116
65,116
65,116
260,461
586,041
Refunding Certificates of Participation
The College issued Certificates of Participation to refund the Series 2008 and 2001B Revenue
Bonds. Net proceeds of $4,273,505 (after the payment of underwriting fees and other costs) plus
$618,378 from the College were deposited into an irrevocable escrow account with an escrow
agent to provide for future debt service. Accordingly the trust account assets and the liability for
the defeased bonds are not included in the financial statements of the College. At June 30, 2012,
bonds totaling $4,285,000 are considered defeased.
The advance refunding resulted in a difference between the reacquisition price and the net carrying
amount of the old debt of $411,883. This difference, reported in the accompanying financial
statements as a deduction from long-term debt, is being charged to operations through the year
2025 using the effective-interest method. The college completed the advance refunding to reduce
its total debt service payments over the next 16 years by $463,291 and to obtain an economic gain
(difference between the present values of the old and new debt service payments) of $138,715.
The Certificates are collateralized by the campus student union and dormitory facilities.
- 29 -
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Notes to Financial Statements
June 30, 2012
NOTE 7: LONG-TERM LIABILITIES (Continued)
Future annual maturities of Certificates of Participation payable are as follows:
Year ending June 30,
2013
2014
2015
2016
2017
2018-2022
2023-2025
Total
Principal
Due
$ 270,000
270,000
280,000
290,000
300,000
1,655,000
1,150,000
$ 4,215,000
Interest
Due
146,300
138,200
130,100
121,700
113,000
400,775
92,281
1,142,356
Total
Due
416,300
408,200
410,100
411,700
413,000
2,055,775
1,242,281
5,357,356
NOTE 8: INTERFUND TRANSACTIONS
Interfund transfers for the year ended June 30, 2012, consisted of the following:
Mandatory Transfers
From
Student Union Bond Retirement
General
General
General
General
Totals
To
Bond and Interest
Post-Secondary Tech Ed
Adult Basic Education
Truck Driver Education
Capital Outlay
Amount
$ 364,989
3,163,949
50,000
84,936
100,000
$ 3,763,874
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect
them to the fund that statute or budget requires to expend them, (2) move receipts restricted to
debt service from the funds collecting the receipts to the debt service fund, and (3) use unrestricted
revenue collected in the general fund to finance various programs accounted for in other funds in
accordance with budgetary authorizations, binding legal agreements, and grant agreements with
agencies of the government, donors, or other organizations to match gifts and grants.
NOTE 9: DEFINED BENEFIT PENSION PLAN
Plan description. The Seward County Community College / Area Technical School participates in
the Kansas Public Employees Retirement System (KPERS), a cost-sharing multiple-employer
defined benefit pension plan as provided by K.S.A. 74-4901, et seq. KPERS provides retirement
benefits, life insurance, disability income benefits, and death benefits. Kansas law establishes and
amends benefit provisions. KPERS issues a publicly available financial report that includes
financial statements and required supplementary information. That report may be obtained by
writing to KPERS (611 S Kansas, Suite 100, Topeka, KS 66603-3869) or by calling 1-888-2755737.
- 30 -
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Notes to Financial Statements
June 30, 2012
NOTE 9: DEFINED BENEFIT PENSION PLAN (Continued)
Funding Policy. K.S.A. 74-4919 and K.S.A. 74-49,210 establishes the KPERS member-employee
contribution rates. Effective July 1, 2009 KPERS has two benefit structures and funding depends
on whether the employee is a Tier 1 or tier 2 member. Tier 1 members are active and contributing
members hired before July 1, 2009. Tier 2 members were first employed in a covered position on
or after July 1, 2009. Kansas law establishes the KPERS member-employee contribution rate of
4% of covered salary for Tier 1 and 6% of covered salary for Tier 2 members. Member-employees’
contributions are withheld by their employer and paid to KPERS according to the provisions of
section 414(h) of the Internal Revenue Code.
The State of Kansas is required to contribute the statutory required employers share. Kansas
currently contributes 9.77% of covered payroll for the period July 1, 2011 to June 30, 2012.
NOTE 10: DEFINED CONTRIBUTION PLAN
Employees of the College can participate in a 403(b) tax sheltered annuity. The plan is
administered by TIAA-CREF and Oppenheimer. The college will match employee contributions up
to $600 in FY 2012. During the year ended June 30, 2012, the employees contributed $168,543
and the College contributed $128,991.
NOTE 11: EARLY RETIREMENT PROGRAM
The College provides an early retirement program for certain eligible employees. Those eligible
under the program may receive benefits for up to 5 years. Eligible employees will receive health
insurance coverage (single membership) equal to that of a full-time employee from the time the
employee chooses to take early retirement and will continue until the early retirement employee
becomes eligible for Medicare or reaches age 65, whichever occurs first. The College also
provides annual payments in amounts based upon the final year of contracted salary for eligible
individuals retiring from employment. Per GASB Statement No. 47 the College recognizes a
liability and expense for voluntary termination benefits when the offer is accepted and the amount
can be estimated. Payments for the retired employees under this plan were $51,251 for the year
ended June 30, 2012.
NOTE 12: OTHER POST EMPLOYMENT BENEFITS
Plan description. As provided by K.S.A. 12-5040, the College allows retirees to participate in the
group health insurance plan. While certain retirees pay the full amount of the applicable premium,
conceptually, the local government is subsidizing the retirees because each participant is charged
a level of premium regardless of age. Upon meeting specified criteria, retirees may fully receive
single coverage until they are Medicare eligible. Otherwise, retirees are required to pay carriercharged premiums to maintain coverage. In all cases, the retiree contribution for spousal coverage
is equal to the family coverage rate less the single coverage rate.
- 31 -
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Notes to Financial Statements
June 30, 2012
NOTE 12: OTHER POST EMPLOYMENT BENEFITS (Continued)
Benefits are provided through fully insured arrangements. Coverage is made available through one
plan option that operates as a Traditional Comprehensive Major Medical Program. Coverage is
available until Medicare eligibility for both retirees and spouses.
Funding Policy. The current funding policy of the College is to fund benefits on a pay-as-you-go
basis. This arrangement does not qualify as other post employment benefits (OPEB) plan assets
under Governmental Accounting Standards Board (GASB) Statement No. 45 for current GASB
reporting.
Plan Report. The plan does not issue a stand-alone financial report
Annual OPEB Cost and Net OPEB Obligation. The College’s annual OPEB (Other Post
Employment Benefits) cost is calculated based on the annual required contribution of the employer
(ARC), an amount actuarially determined in accordance with parameters of GASB Statement 45.
The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the
normal cost each year and to amortize any unfunded actuarial liabilities (or funding excess) over a
period not to exceed thirty years. The following table presents the components of the College’s
annual OPEB cost for the year, the contribution to the plan, and changes in the College’s net
OPEB obligation.
Normal cost
Amortization of unfunded actuarial accrued liability
Annual Required Contribution (ARC)
$142,936
65,680
208,616
Net OPEB obligation, July 1
Annual OPEB cost
Expected Net Employer contributions for year
Net OPEB obligation, June 30
501,300
205,676
( 77,000)
$ 629,976
Fiscal
Year
2009
2010
2011
2012
Annual
OPEB Cost
$ 183,100
183,100
183,100
205,676
Net
Employer
Contributions
$ 16,000
16,000
16,000
77,000
Percentage
Contributed
9%
9%
9%
37%
End of Year
Net OPEB
Obligation
$ 167,100
334,200
501,300
629,976
Funding Status and Funding Progress. As of July 1, 2011, the most recent actuarial valuation
date, the plan was zero percent funded. The College’s actuarial accrued liability (AAL) for benefits
was $1,552,902, all of which was unfunded. The covered payroll (annual payroll of active
employees covered by the plan) was $7,111,451, and the ratio of the UAAL to the covered payroll
was 21.8%.
- 32 -
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Notes to Financial Statements
June 30, 2012
NOTE 12: OTHER POST EMPLOYMENT BENEFITS (Continued)
Actuarial methods and assumptions: Projections of benefits for financial reporting purposes are
base on the substantive plan (the plan as understood by the employer and the plan members) and
included the types of benefits provided at the time of each valuation and the historical pattern of
sharing costs between the employer and plan members to that point. The actuarial methods and
assumptions used include techniques that are designed to reduce the effects of short-term volatility
in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term
perspective of the calculations.
In the July 1, 2011 actuarial valuation, the projected unit actuarial cost method was used. The
actuarial assumptions included a 3.5 percent annual interest rate, 2 percent per year aggregate
payroll growth, and an annual health care cost trend of 8 percent reduced by decrements of 1
percent annually to an ultimate rate of 5.0 percent. The AAL is being amortized as a level
percentage of pay. The amortization of AAL is done over a period of 30 years.
NOTE 13: RENT REVENUE
The College rents dorm rooms. The dorm rooms are rented on a semester basis and have a
signed contract. The College also charges fees for the use of its facilities. These fees vary
according to the area being used. A contract is signed. There are no minimum future payments
required.
NOTE 14: RISK MANAGEMENT
The College is exposed to various risks of loss from torts; theft of, damage to, and destruction of
assets; business interruptions; errors and omission; employee injuries and illnesses; natural
disasters; and employee health, life, and accident benefits. Commercial insurance coverage is
purchased for claims arising from such matters.
NOTE 15: COMMITMENTS AND CONTINGENCIES
The College conducts certain programs pursuant to various grants and contracts, which are
subject to audit by various federal and state agencies. Costs questioned as a result of audits, if
any, may result in refunds to these governmental agencies from various sources of the College.
- 33 -
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Notes to Financial Statements
June 30, 2012
NOTE 16: SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
FOUNDATION – ACCOUNTING POLICIES
Seward County Community College / Area Technical School Foundation is a not-for-profit
corporation under Internal Revenue Code Section 501(c)(3), organized February 24, 1969 for the
purpose of promoting and fostering the educational and cultural interests of Seward County
Community College. The Foundation maintains and administers the resources available for
college projects, equipment and scholarships. The revenue is generated by bequests, gifts, and
private contributions. This money is expended based upon the requirements established by the
donor.
Basis of Presentation
The Foundation’s financial statements were prepared on the accrual basis of accounting to
conform with accounting principles generally accepted in the United States of America.
Receivables
Due to the nature of the receivables (interest), the company does not provide for an allowance.
This method of accounting for an allowance does not materially differ from accounting procedures
generally accepted in the United States of America.
Cash and cash equivalents
For purposes of the statement of cash flows, the nonprofit corporation considers all highly liquid
debt instruments purchased with a maturity of three months or less to be cash equivalents with the
exception of money market funds which are for long-term investment purposes.
Contributions
Contributions are recorded when received as unrestricted, temporarily restricted or permanently
restricted support, depending on the existence and/or nature of any donor restrictions. When a
donor restriction expires (such as when a stipulated time restriction ends), temporarily restricted
net assets are released to unrestricted net assets and reported in the statement of activities as net
assets released from restrictions.
Net Assets
The Foundation separates its net assets as follows:
Temporarily restricted – principal and income designated for a specific purpose.
Permanently restricted – principal is to remain intact as an endowment.
Unrestricted – no restrictions or designations place on principal or income.
Advertising
Advertising costs are expensed when incurred.
- 34 -
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Notes to Financial Statements
June 30, 2012
NOTE 16: SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
FOUNDATION – ACCOUNTING POLICIES (Continued)
Noncash Donations
Donated marketable securities and other noncash donations are recorded as contributions at their
estimated fair values at the date of donation.
Deposits and Investments
Cash deposits in excess of FDIC are sufficiently covered by depository securities.
The Foundation has adopted SFAS No. 124, “Accounting for Certain Investments Held by Not-forProfit Organizations.” Under SFAS No. 124, investments in marketable securities with readily
determinable fair values and all investments in debt securities are reported at their fair values in
the statement of financial position. Unrealized gains and losses are included in the change in net
assets. Investment income and gains restricted by a donor are reported as increases in
unrestricted net assets if the restrictions are met (either by passage of time or by use) in the
reporting period in which the income and gains are recognized.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted
in the United States of America requires management to make estimates and assumptions that
affect certain reported amounts and disclosures. Accordingly, actual results could differ from those
estimates.
Reconciliation of Net Change in Assets to Net Cash Provided by Operating Activities
Net Change in Assets
Adjustments:
(Gain) loss on sale of assets
Contributions – permanently restricted
(Increase) decrease in interest receivable
(Increase) decrease in dividend receivable
Unrealized (gain) loss on investments
$ 170,523
Net Cash Provided by Operating Activities
$ 200,824
( 83,944)
( 77,319)
191,564
For the year ended June 30, 2012, there were no non-cash transactions.
- 35 -
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Notes to Financial Statements
June 30, 2012
NOTE 16: SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
FOUNDATION – ACCOUNTING POLICIES (Continued)
Temporarily Restricted Net Assets
Net assets temporarily restricted for the following purposes:
Scholarship and other student support
Library and music department needs
Capital projects
Athletic programs
Professional development
$ 1,475,336
44,240
71,862
111,773
20,882
$ 1,724,093
Permanently Restricted Net Assets
Net assets were permanently restricted for the following purposes:
Professional development
Scholarship and other student support
Library and music department needs
$
25,129
3,719,825
85,507
$ 3,830,461
Donated Services
The Foundation receives a significant amount of donated services from unpaid volunteers who
assist in fundraising and special projects. No amounts have been recognized in the statement of
activities because the criteria for recognition under SFAS No. 116 have not been satisfied.
Transfers
Assets were transferred for the following reasons for the fiscal year ended June 30, 2012:
Unrestricted
Campus Ambassador’s transfer from undesignated
to temporarily restricted to match
Saints Booster Club donation
Transfer ten percent of fundraising administrative
fees to Foundation scholarships
Seward County Farm Bureau fund became eligible
For transfer to permanently restricted fund
Temporarily
Restricted
Permanently
Restricted
$ (10,000)
10,000
-
(2,724)
2,724
-
5,690)
7,034
5,690
5,690
$ ( 12,724)
(
Subsequent Events
Foundation’s management has evaluated subsequent events through October 4, 2012, the date
which the Foundation’s financial statements were available to be issued.
- 36 -
REQUIRED SUPPLEMENTARY INFORMATION
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Schedule of Funding Progress Other Post-Employment Benefits
June 30, 2012
Actuarial
Valuation
Date
7/1/2008
7/1/2011
Actuarial
Value of
Assets
(a)
$
$
-
Actuarial
Accrued
Liability (AAL)
(b)
$ 1,504,416
$ 1,552,902
Unfunded
AAL
(b-a)
$ 1,504,416
$ 1,552,902
(See Auditors' Report)
-37-
Funded
Ratio
(a/b)
0.00%
0.00%
Covered
Payroll
(c)
$ 5,436,098
$ 7,111,451
Schedule 1
UAAL as a
Percentage
of Covered
Payroll ((b-a)/(c)
27.7%
21.8%
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Budgetary Comparison Schedule
General Fund
For the Year Ended June 30, 2012
General Fund
Actual Amounts
Budgetary
Basis
Original
and Final
Budget
Cash Receipts:
Taxes and Shared Revenue:
Prior year ad valorem property tax
Current year ad valorem property tax
Motor vehicle tax
Recreational vehicle tax
Delinquent tax
In lieu of tax - IRB
State sources
Federal sources
Student tuition and fees
Interest income
Other local income - cash reserve
Other income
Operating transfers in
$
Schedule 2
Page 1 of 13
VarianceOver
(Under)
121,590
7,267,500
520,467
7,145
34,749
12,000
3,034,540
1,770,000
90,000
400,000
352,455
-
72,245
6,927,263
486,982
5,609
159,570
14,079
2,107,934
3,200
1,187,469
46,629
606,797
-
(49,345)
(340,237)
(33,485)
(1,536)
124,821
2,079
(926,606)
3,200
(582,531)
(43,371)
(400,000)
254,342
-
Total Cash Receipts
13,610,446
11,617,777
(1,992,669)
Expenditures:
Instruction
Academic support
Student services
Institutional support
Operation and maintenance of plant
Scholarships
Operating transfers out
1,890,077
704,717
1,602,773
4,167,678
2,577,446
253,640
4,311,667
2,680,929
162,853
1,830,761
1,901,714
2,477,379
216,240
3,398,885
790,852
(541,864)
227,988
(2,265,964)
(100,067)
(37,400)
(912,782)
15,507,998
12,668,761
(2,839,237)
(1,897,552)
(1,050,984)
Total Expenditures
Cash Receipts Over (Under) Expenditures
$
6,084,070
Unencumbered Cash, Beginning of Year
Unencumbered Cash, End of Year
$
(See Auditors' Report)
-38-
5,033,086
846,568
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Budgetary Comparison Schedule
Post Seconday Technical Education Fund
For the Year Ended June 30, 2012
Schedule 2
Page 2 of 13
Post Secondary Technical Education Fund
Original
Actual Amounts
Varianceand Final
Budgetary
Over
Budget
Basis
(Under)
Cash Receipts:
Student tuition and fees
State sources
Other income
Operating transfers in
$
7,300
928,023
3,163,949
614,034
887,922
8,809
3,163,949
606,734
(40,101)
8,809
-
Total Cash Receipts
4,099,272
4,674,714
575,442
Expenditures:
Instruction
Academic support
Student services
Institutional support
Operation and maintenance of plant
3,548,283
150,419
127,534
263,319
202,417
3,311,270
34,363
144,465
318,881
443,523
(237,013)
(116,056)
16,931
55,562
241,106
4,291,972
4,252,502
(39,470)
Total Expenditures
Cash Receipts Over (Under) Expenditures
$
(192,700)
422,212
269,524
Unencumbered Cash, Beginning of Year
Unencumbered Cash, End of Year
$
(See Auditors' Report)
-39-
691,736
614,912
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Budgetary Comparison Schedule
Adult Supplementary Education Fund
For the Year Ended June 30, 2012
Schedule 2
Page 3 of 13
Adult Supplementary Education Fund
Original
Actual Amounts
Varianceand Final
Budgetary
Over
Budget
Basis
(Under)
Cash Receipts:
State sources
Student tuition and fees
Other income
$
Total Cash Receipts
Expenditures:
Instruction
Total Expenditures
Cash Receipts Over (Under) Expenditures
$
65,000
800,000
24,000
826
148,936
106,384
(64,174)
(651,064)
82,384
889,000
256,146
(632,854)
800,000
243,742
(556,258)
800,000
243,742
(556,258)
89,000
12,404
(76,596)
150,096
Unencumbered Cash, Beginning of Year
Unencumbered Cash, End of Year
$
(See Auditors' Report)
-40-
162,500
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Budgetary Comparison Schedule
Truck Driver Training Course Fund
For the Year Ended June 30, 2012
Schedule 2
Page 4 of 13
Truck Driver Training Course Fund
Original
Actual Amounts
Varianceand Final
Budgetary
Over
Budget
Basis
(Under)
Cash Receipts:
State sources
Student tuition and fees
Operating transfers in
$
Total Cash Receipts
Expenditures:
Instruction
Total Expenditures
Cash Receipts Over (Under) Expenditures
$
6,000
40,000
88,271
5,858
58,933
84,936
(142)
18,933
(3,335)
134,271
149,727
15,456
243,929
132,359
(111,570)
243,929
132,359
(111,570)
(109,658)
17,368
127,026
106,993
Unencumbered Cash, Beginning of Year
Unencumbered Cash, End of Year
$
(See Auditors' Report)
-41-
124,361
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Budgetary Comparison Schedule
Auxiliary Enterprises
For the Year Ended June 30, 2012
Bookstore
Actual Amounts
Budgetary
Basis
Original
and Final
Budget
Cash Receipts:
Student sources
Sales
Other income
$
Total Cash Receipts
Expenditures:
Salaries and benefits
General operating expenses
Supplies
Cost of goods sold
Equipment
Travel
Utilities
Mandatory transfers
Total Expenditures
Cash Receipts Over (Under) Expenditures
$
Original
and Final
Budget
Dorm/Cafeteria
Actual Amounts
Budgetary
Basis
VarianceOver
(Under)
750,000
200,000
821,218
19,189
71,218
(180,811)
800,000
75,000
846,895
2,980
46,895
(72,020)
950,000
840,407
(109,593)
875,000
849,875
(25,125)
129,954
60,000
26,000
710,000
32,000
10,000
150,000
127,763
26,595
9,754
639,562
96
9,894
-
(2,191)
(33,405)
(16,246)
(70,438)
(31,904)
(106)
(150,000)
194,567
10,000
12,000
450,000
35,000
5,000
100,000
150,000
207,785
26,924
655
484,412
53,496
11,089
-
13,218
16,924
(11,345)
34,412
18,496
(5,000)
(88,911)
(150,000)
1,117,954
813,664
(304,290)
956,567
784,361
(172,206)
26,743
194,697
(81,567)
65,514
147,081
(167,954)
216,623
Unencumbered Cash, Beginning of Year
Unencumbered Cash, End of Year
VarianceOver
(Under)
Schedule 2
Page 5 of 13
$
243,366
(See Auditors' Report)
-42-
689,433
$
754,947
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Budgetary Comparison Schedule
Auxiliary Enterprises
For the Year Ended June 30, 2012
Cosmetology
Actual Amounts
Budgetary
Basis
Original
and Final
Budget
Cash Receipts:
Student sources
Sales
Other income
$
Total Cash Receipts
Expenditures:
Salaries and benefits
General operating expenses
Supplies
Cost of goods sold
Equipment
Travel
Utilities
Mandatory transfers
Total Expenditures
Cash Receipts Over (Under) Expenditures
$
Auto Parts Management
Original
Actual Amounts
Varianceand Final
Budgetary
Over
Budget
Basis
(Under)
100,000
4,000
84,443
2,847
(15,557)
(1,153)
95,000
-
75,677
-
(19,323)
-
104,000
87,290
(16,710)
95,000
75,677
(19,323)
8,000
50,000
35,000
10,000
4,000
-
2,476
708
45,955
8,231
1,484
1,046
-
2,476
(7,292)
(4,045)
(26,769)
(8,516)
(2,954)
-
10,000
10,000
85,000
10,000
5,000
-
1,650
67,699
2,968
452
-
(8,350)
(10,000)
(17,301)
(7,032)
452
(5,000)
-
107,000
59,900
(47,100)
120,000
72,769
(47,231)
27,390
30,390
(25,000)
2,908
27,908
(3,000)
63,447
Unencumbered Cash, Beginning of Year
Unencumbered Cash, End of Year
VarianceOver
(Under)
Schedule 2
Page 6 of 13
$
90,837
(See Auditors' Report)
-43-
56,817
$
59,725
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Budgetary Comparison Schedule
Auxiliary Enterprises
For the Year Ended June 30, 2012
Total Auxiliary Enterprises
Original
Actual Amounts
Varianceand Final
Budgetary
Over
Budget
Basis
(Under)
Cash Receipts:
Student sources
Sales
Other income
$
Total Cash Receipts
Expenditures:
Salaries and benefits
General operating expenses
Supplies
Cost of goods sold
Equipment
Travel
Utilities
Mandatory transfers
Total Expenditures
Cash Receipts Over (Under) Expenditures
$
1,745,000
279,000
1,828,233
25,016
83,233
(253,984)
2,024,000
1,853,249
(170,751)
324,521
88,000
98,000
1,280,000
87,000
19,000
105,000
300,000
338,024
55,877
56,364
1,199,904
58,044
11,392
11,089
-
13,503
(32,123)
(41,636)
(80,096)
(28,956)
(7,608)
(93,911)
(300,000)
2,301,521
1,730,694
(570,827)
(277,521)
122,555
1,026,320
Unencumbered Cash, Beginning of Year
Unencumbered Cash, End of Year
$
1,148,875
(See Auditors' Report)
-44-
400,076
Schedule 2
Page 7 of 13
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Budgetary Comparison Schedule
Capital Outlay
For the Year Ended June 30, 2012
Capital Outlay
Actual Amounts
Budgetary
Basis
Original
and Final
Budget
Cash Receipts:
Federal sources
State sources
PEI loan program income
Other local income
Other income
Tax credit donations income
Mandatory transfers
$
Total Cash Receipts
Expenditures:
Plant Equipment and Facility
Total Expenditures
Cash Receipts Over (Under) Expenditures
$
Schedule 2
Page 8 of 13
VarianceOver
(Under)
173,045
308,302
331,000
-
132,722
123,044
458,949
15,207
41,750
100,000
132,722
(50,001)
150,647
15,207
(289,250)
100,000
812,347
871,672
59,325
802,347
793,640
(8,707)
802,347
793,640
(8,707)
10,000
78,032
68,032
-
Unencumbered Cash, Beginning of Year
Unencumbered Cash, End of Year
$
(See Auditors' Report)
-45-
78,032
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Budgetary Comparison Schedule
Bond and Interest Fund (Revenue Bonds)
For the Year Ended June 30, 2012
Schedule 2
Page 9 of 13
Bond and Interest (Revenue Bonds)
Original
Actual Amounts
Varianceand Final
Budgetary
Over
Budget
Basis
(Under)
Cash Receipts:
Other local sources
Mandatory transfers
$
Total Cash Receipts
Expenditures:
Principal on Bonds
Interest and fees
Total Expenditures
Cash Receipts Over (Under) Expenditures
$
300,000
364,989
64,989
300,000
364,989
64,989
75,000
71,396
75,000
71,395
-
146,396
146,395
153,604
218,594
898,834
Unencumbered Cash, Beginning of Year
Unencumbered Cash, End of Year
$
(See Auditors' Report)
-46-
1,117,428
(1)
(1)
64,990
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Budgetary Comparison Schedule
Construction Fund
For the Year Ended June 30, 2012
Construction Fund
Actual Amounts
Amended
Budgetary
Budget
Basis
Cash Receipts:
Loan Proceeds
Mandatory transfers
$
Total Cash Receipts
Expenditures:
Plant Equipment and Facility
Total Expenditures
Cash Receipts Over (Under) Expenditures
Schedule 2
Page 10 of 13
VarianceOver
(Under)
500,000
-
500,000
-
-
500,000
500,000
-
500,000
500,000
-
500,000
500,000
-
$
-
-
Unencumbered Cash, Beginning of Year
Unencumbered Cash, End of Year
$
(See Auditors' Report)
-47-
-
-
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Budgetary Comparison Schedule
Notes to Schedule
For the Year Ended June 30, 2012
Schedule 2
Page 11 of 13
Reconciliation of Revenue and Expenditures on a budgetary basis to GAAP basis.
Revenues:
Actual amounts (budgetary basis) from the budgetary
comparison schedules (Schedule 2 pages 1 to 9)
$
Adjustments
Revenues accrued but not received are reported in
the year received for budgetary purposes, but in
the year earned for GAAP reporting.
Revenues received but deferred for future fiscal years
are reported in the year received for budgetary
purposes, but in the year earned for GAAP reporting
Prior year encumbrances cancelled are not recorded
for GAAP reporting
Transfers reported separately for GAAP reporting
Total revenues on GAAP basis
Expenditures:
Actual amounts (budgetary basis) from the budgetary
comparison schedules (Schedule 2 pages 1 to 9)
Adjustments
Compensated absences are reported in the year paid
for budgetary purposes, but in the year earned for
GAAP reporting.
Net OPEB obligations are reported in the year paid
for budgetary purposes, but in the year earned for
GAAP reporting.
Encumbrances for supplies and equipment ordered
but not received are reported in the year the order
is placed for budgetary purposes, but in the year
the items are received for GAAP reporting.
Interest accrued on the bonds but not paid yet are
reported in the year paid for budgetary purposes,
but in the year accrued for GAAP reporting.
Expenditures for cost of goods sold are reported in
year ordered for budgetary purposes, but in the
year sold for GAAP reporting
Transfers reported separately for GAAP reporting
Total Expenditures on GAAP basis
General
Vocational
Education
11,617,777
4,674,714
49,514
52,821
(18,598)
339,112
-
-
(
24,932)
-
(8,809)
(3,163,949)
Adult
Supplemental
256,146
-
$
11,981,471
1,554,777
237,548
$
12,668,761
4,252,502
243,742
(
3,458)
-
-
274,401
-
-
121,582
3,742
-
-
-
-
-
-
( 3,398,885)
$
(See Auditors' Report)
-48-
9,662,401
4,256,244
243,742
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Budgetary Comparison Schedule
Notes to Schedule
For the Year Ended June 30, 2012
Schedule 2
Page 12 of 13
Reconciliation of Revenue and Expenditures on a budgetary basis to GAAP basis.
Truck
Driver
Revenues:
Actual amounts (budgetary basis) from the budgetary
comparison schedules (Schedule 2 pages 1 to 9)
$
Adjustments
Revenues accrued but not received are reported in
the year received for budgetary purposes, but in
the year earned for GAAP reporting.
Revenues received but deferred for future fiscal years
are reported in the year received for budgetary
purposes, but in the year earned for GAAP reporting
Prior year encumbrances cancelled are not recorded
for GAAP reporting
Transfers reported separately for GAAP reporting
Total revenues on GAAP basis
Expenditures:
Actual amounts (budgetary basis) from the budgetary
comparison schedules (Schedule 2 pages 1 to 9)
Adjustments
Compensated absences are reported in the year paid
for budgetary purposes, but in the year earned for
GAAP reporting.
Net OPEB obligations are reported in the year paid
for budgetary purposes, but in the year earned for
GAAP reporting.
Encumbrances for supplies and equipment ordered
but not received are reported in the year the order
is placed for budgetary purposes, but in the year
the items are received for GAAP reporting.
Interest accrued on the bonds but not paid yet are
reported in the year paid for budgetary purposes,
but in the year accrued for GAAP reporting.
Expenditures for cost of goods sold are reported in
year ordered for budgetary purposes, but in the
year sold for GAAP reporting
Transfers reported separately for GAAP reporting
Total Expenditures on GAAP basis
Auxiliary
Enterprises
149,727
(
1,853,249
336)
Capital
Outlay
871,672
80,405
-
-
-
-
(84,936)
(2,467)
-
(3,876)
(100,000)
$
64,455
1,931,187
767,796
$
132,359
1,730,694
793,640
-
-
-
-
-
-
-
13,505
-
-
-
35,351)
-
-
$
(See Auditors' Report)
-49-
132,359
(
1,708,848
(109,814)
683,826
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Budgetary Comparison Schedule
Notes to Schedule
For the Year Ended June 30, 2012
Reconciliation of Revenue and Expenditures on a budgetary basis to GAAP basis.
Bond & Interest
(Rev. Bonds)
Revenues:
Actual amounts (budgetary basis) from the budgetary
comparison schedules (Schedule 2 pages 1 to 9)
Adjustments
Revenues accrued but not received are reported in
the year received for budgetary purposes, but in
the year earned for GAAP reporting.
Revenues received but deferred for future fiscal years
are reported in the year received for budgetary
purposes, but in the year earned for GAAP reporting
Prior year encumbrances cancelled are not recorded
for GAAP reporting
Transfers reported separately for GAAP reporting
Total revenues on GAAP basis
364,989
-
-
( 364,989)
-
$
Expenditures:
Actual amounts (budgetary basis) from the budgetary
comparison schedules (Schedule 2 pages 1 to 9)
Adjustments
Compensated absences are reported in the year paid
for budgetary purposes, but in the year earned for
GAAP reporting.
Net OPEB obligations are reported in the year paid
for budgetary purposes, but in the year earned for
GAAP reporting.
Encumbrances for supplies and equipment ordered
but not received are reported in the year the order
is placed for budgetary purposes, but in the year
the items are received for GAAP reporting.
Interest accrued on the bonds but not paid yet are
reported in the year paid for budgetary purposes,
but in the year accrued for GAAP reporting.
Expenditures for cost of goods sold are reported in
year ordered for budgetary purposes, but in the
year sold for GAAP reporting
Transfers reported separately for GAAP reporting
Total Expenditures on GAAP basis
$
$
146,395
(
$
(See Auditors' Report)
-50-
Construction
Fund
500,000
-
(500,000)
-
500,000
-
-
-
-
22,573)
-
-
-
123,822
500,000
Schedule 2
Page 13 of 13
SUPPLEMENTARY INFORMATION
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Schedule of Current Funds Revenues, Expenditures, and
Changes in Fund Balances
For the Year Ended June 30, 2012
Revenues:
Prior year ad valorem property tax
Current year ad valorem property tax
Motor vehicle tax
Recreational vehicle tax
Delinquent tax
In lieu of tax - IRB
State sources
Federal sources
Student tuition and fees
Interest income
Donations
Other revenue
Auxiliary enterprises
Total Current Revenues
$
Expenditures:
Instruction
Academic support
Student services
Institutional support
Operation and maintenance of plant
Debt payment
Scholarships
Auxiliary enterprises
Total Expenditures
Transfers Among Funds - Additions/(Deductions):
Nonmandatory transfers
Mandatory transfers
Net Increase/(Decrease) in Fund Balances
$
Schedule 3
Unrestricted
Restricted
Total
72,245
7,273,253
486,982
5,609
159,570
14,079
3,002,540
3,200
2,077,896
46,629
21,257
674,991
1,931,187
15,769,438
142,474
4,442,071
801,287
256
5,386,088
72,245
7,273,253
486,982
5,609
159,570
14,079
3,145,014
4,445,271
2,879,183
46,629
21,257
675,247
1,931,187
21,155,526
6,375,374
196,543
1,971,660
2,510,417
2,642,197
398,823
216,240
1,692,340
16,003,594
1,322,259
257,471
255,428
-
7,697,633
196,543
2,229,131
2,765,845
2,642,197
398,823
3,441,788
1,692,340
21,064,300
3,225,548
5,060,706
(127,490)
(149,590)
127,490
(315,399)
(464,989)
(511,236)
137,473
(373,763)
(See Auditors' Report)
-51-
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Schedule of Cash Receipts and Cash Disbursements
Student Organization Accounts
For the Year Ended June 30, 2012
Admin Office Tech
Alumni & Friends
Assoc. of Info Tech Professionals
Athletic Business Acctg.
Athletic Trainer
Atlas
Auto Body Repair
Auto Mechanic
BESO
Black Collegiate Union
Block & Bridle
Carpentry
Ceramics Club
Cheerleaders
Collegiate Farm Bureau
Community Education - GED
Crusader Newspaper
Diesel Mech
Drafting
Education Club
Educational & Cultural Growth
Gift Certificates
Halo Club
House Construction
HVAC
International Student Organization
Intramural Sports
Kappa Beta Delta
KYLIX
Mach Shop
Martial Arts Club
Med Assistants
Musicals/Drama
OWLS
Phi Theta Kappa
Professional Employees Assoc
Respiratory Therapy Student Group
Retirement Fund
SCCCOP
Science Club
Science Field Trips
S.I.F.E.
Sigma Chi Chi
$
Schedule 4
Page 1 of 2
Cash
Balance
6/30/2011
Cash
Receipts
Cash
Disbursed
Cash
Balance
6/30/2012
395
1,339
1,057
1,748
377
102
4,958
20,229
1
12
9,544
264
80
1,105
975
59,100
11,688
1,345
2,092
193
2,346
205
1,198
98,613
2,241
918
3,795
793
200
2,280
142
7,114
8,373
541
648
945
812
20
2,724
548
1,828
19,409
3,196
1,305
85,615
169
26,641
49,552
15,832
46
5,892
51,644
14,033
3,642
1,705
140
1,247
5,555
353
338
1,995
1,049
1,847
9,474
305
4,651
5,315
1,380
45
1,052
45
2,660
3,302
1,465
414
83,041
31,547
57,307
16,200
6,997
95,911
16,704
4,922
751
42
73
85
6,217
1,384
642
1,427
914
1,053
5,258
4,512
298
5,797
1,148
1,381
548
3,139
956
847
395
1,339
1,948
4,322
377
271
52
12,474
1
12
9,176
264
126
975
14,833
9,017
65
3,046
291
3,520
120
536
98,613
1,210
614
4,363
928
994
6,496
142
7,419
8,512
243
166
1,177
857
20
2,395
45
1,349
21,755
3,814
(See Auditors' Report)
-52-
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Schedule of Cash Receipts and Cash Disbursements
Student Organization Accounts
For the Year Ended June 30, 2012
Skills USA
Student Government Assoc
SGA - Student/Club Alloc
Student Life
Student Nursing Assoc
Surg Tech Student Assoc
Vocal Music
Welding
Total Student Organization Accounts
$
Schedule 4
Page 2 of 2
Cash
Balance
6/30/2011
Cash
Receipts
Cash
Disbursed
Cash
Balance
6/30/2012
2,281
7,711
11,812
14,232
2,845
68
68
1,803
2,775
8,230
7,475
21,957
13,193
1,255
72
1,138
4,262
9,023
19,932
13,370
829
614
3,918
11,679
10,264
16,257
2,668
68
494
1,261
316,313
353,251
398,683
270,881
(See Auditors' Report)
-53-
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2012
Federal Grantor / Pass Through
Grantor / Program Title
U.S. Department of Education
Direct Programs:
Student Financial Assistance Cluster
Federal Pell Grant Program
Federal College Work Study Program
Federal Supplemental Educational Opportunity Grants
Federal PLUS Loans
Federal Direct Unsubsidized Stafford Loans
Federal Direct Subsidized Stafford Loans
Higher Education - Inst Aid / Expanding Access to High
Demand Technical and Allied Health Programs
Higher Education - Inst Aid / Building Access and Success
TRIO - Student Support Services
Total Direct Programs
Passed Through Kansas Board of Regents
Adult Basic Education
Career and Technical Education - Carl Perkins
ARRA - State Fiscal Stabilization Fund - Education
Total Passed through Kansas Board of Regents
Total U.S. Department of Education
U.S. Department of Health and Human Services
Passed Through Kansas State University
Special Minority Initiatives
Total U.S. Department of Health and Human Serv.
Federal
CFDA
Number
Schedule 5
Pass-through
Entity Identifying
Number
84.063
84.033
84.007
84.268
84.268
84.268
Federal
Expenditures
$
84.031S
84.031C
84.042A
2,039,432
52,213
45,930
6,826
312,382
564,441
826,815
137,543
215,258
4,200,840
84.002
84.048
84.394
3042-3000
3539-3539
3509-3502
93.960
E8021
Total Expenditures of Federal Awards
(The Accompanying Notes are an Integral Part of This Schedule)
-58-
98,653
103,668
98,146
300,467
4,501,307
42,110
42,110
$
4,543,417
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Liberal, Kansas
Notes to Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2012
Note A:
The accompanying schedule of expenditures of federal awards includes the federal grant activity of
Seward County Community College and is presented on the accrual basis of accounting. The
information in this schedule is presented in accordance with the requirements of OMB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations . Therefore, some amounts
presented in this schedule may differ from amounts presented in, or used in the preparation of, the
financial statements.
-59-
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Summary Schedule of Prior Audit Findings
Year Ended June 30, 2012
None
- 60 -
Schedule 6
SEWARD COUNTY COMMUNITY COLLEGE / AREA TECHNICAL SCHOOL
Schedule of Findings and Questioned Costs
Year Ended June 30, 2012
Schedule 7
Section I – Summary of Auditor’s Results
Financial Statements
The auditor’s report expresses an unqualified opinion on the financial statements of Seward County Community
College / Area Technical School.
Internal Control over financial reporting:
• Material weakness(es) identified?
Yes
X
• Significant deficiency(ies) identified that are
not considered to be material weaknesses?
Yes
X none reported
Yes
X
No
• Material weakness(es) identified?
Yes
X
No
• Significant deficiency(ies ) identified that are
not considered to be material weaknesses?
Yes
X none reported
Noncompliance material to financial statements noted?
No
Federal Awards
Internal Control over major programs:
The auditor’s report on compliance for the major federal award programs for Seward County Community
College / Area Technical School expresses an unqualified opinion on all major federal programs.
Any audit findings disclosed that are required to be reported in
accordance with section 510(a) of OMB Circular A-133?
Yes
X
No
Identification of major programs:
CFDA Numbers
84.007, 84.033, 84.063, & 84.268
84.031S
Name of Federal Program or Cluster
Student Financial Assistance Cluster
Higher Education – Institutional Aid /
Expanding Access to High Demand Technical
and Allied Health Programs
Dollar threshold used to distinguish between
Type A and Type B programs:
$
Auditee qualified as low-risk auditee?
300,000
X
Section II – Financial Statement Findings
None reported
Section III – Federal Award Findings and Questioned Costs
None reported
- 61 -
Yes
No