COMPLIANCE AUDIT REPORTS

Section 3: Comprehensive Standard 3.10.2

The institution provides financial profile information on an annual basis and other measures of financial health as requested by the Commission. All information is presented accurately and appropriately and represents the total operation of the institution.

Statement of Compliance: Dyersburg State Community College is in compliance with Comprehensive Standard 3.10.2.

Rationale for Judgment of Compliance:

Dyersburg State Community College (DSCC) provides annual financial reports as a measure of determining financial health [Ref 1]. These reports are prepared in accordance with generally accepted accounting principles of the Governmental Accounting Standards Board (GASB), the National Association of College and University Business Officers (NACUBO), and standards of the American Institute of Certified Public Accountants (AIPCA).

The financial reports and related documents are audited by the State of Tennessee Comptroller of the Treasury, Division of State Audit [Ref 2].

DSCC’s financial reports include multiple measures for determining financial health including:

·         The Statement of Revenues, Expenses and Changes in Net Assets presents operating results of the College, as well as non-operating revenues and expenses. Revenues are reported by source, and expenditures are displayed in two formats: natural classification and program classification [Ref 3].

·         The Statement of Net Assets illustrates the financial position of the College at the end of the fiscal year and includes all assets and liabilities of the College. Net assets are used as an indicator of the current financial condition of the College. DSCC’s net assets, as of June 30, 2006, were $18,647,716.52 [Ref 4].

·         The Statement of Cash Flows provides information on cash receipts and cash payments during the year. This statement assists in determining the College’s ability to meet obligations as they come due, generate net cash and cash flows, and assess need for external financing. Cash and cash equivalents increased by $1,123,342.58 (31 percent) during fiscal year ending June 30, 2006, thereby increasing the College’s liquidity [Ref 5].

DSCC has submitted the 2006 Financial Profile and Indicators and General and Enrollment Information as requested by the Commission [Ref 6]. Other related documents include the Integrated Postsecondary Education Data System (IPEDS) financial report sent to the National Center for Education Statistics as required by the Department of Education [Ref 7]. These annual reports reflect the health of the College.

The College prepares the following financial ratios to demonstrate financial stability. DSCC compared favorably in all of the following:

·         Current Ratio

·         Debt Service Ratio

·         Tuition Dependency Ratio [Ref 8]

The integrity of the systems used to maintain and present data are validated by the fact that there have been no audit findings related to financial matters in eight years [Ref 9].

Authored by Ms. Velma Travis in coordination with the SACS Leadership Team

Documentation: