DR.DO NA LD J.AYO ,PRESIDENT
N IC HO LLS STA TE U N IV ERSITY
STATE O F LO UISIA NA
A uditReport,June 30,1996
LEGISLATIVEA...
DR.DO NA LD J.AYO ,PRESIDENT
NICHO LLS STATE UNIVERSITY
STATE O F LO UISIANA
A uditReport,June 30,1996
LEGISLATIVEAUDITOR
...
DR.DO NALD J.AYO ,PRESIDENT
N IC t'IO LLS STATE U N IV ERSITY
STA TE O F LO UISIA NA
AuditReport,June 30,1996
LL:LW M :dl
...
DR.DO NA LD 3.AYO ,PRESIDENT
N IC HO LLS STATE U NIV ER SITY
STATE O F LO UISIANA
AuditReport,June 30,1996
LEGISLATIVEA UD...
Nicholls State University is a publicly supported institution ofhighereducation. The university is
a com ponentunitofthe S...
ST A T E O F L O U ISIA N A
L E G ISL A T IV E A U D IT O R
Athletic Departm ent
Nicholls State U niversity
Sta te ofLouis...
LEGI.C;LATIVE A UDITOR
ATHLETIC DEPA RTM ENT
NIC HO LLS STATE U NIV ERSITY
STA TE O F LO UISIA NA
NotestotheFinancialState...
LEGISLATIVE"-AUDITOR
ATHLETIC DEP A RTM ENT
N IC HO LLS STA TE U N IV ERSITY
STATE O F LO UISIA NA
Notestothe FinancialSta...
ATHLETIC DEPA RTM ENT
NICHO LLS STATE UNIVERSITY
STATE O F LO UISIA NA
Statem entofRevenues and Expenditures
Forthe YearEn...
I)ANIEI,O.KYLE,P!I,D.,CPA,CFE
LEGISLATIVE AUDITOR
OFFICE:OF
LEG ISLA TIV F.A U D ITO R
STATE OF LOU ISIAN A
BATON ROUG E,1...
A THLETIC DEPA RTM ENT
NIC HO LLS STAT["UNIVERSITY
STATE O F LO UISIA NA
FinancialStatem entand
IndependentAuditor's Repor...
LI'G ISLATIVE A U DIT A DVISO RY CO UNC IL
M EM BERS
Representative Francis C .Thom pson,C hairm an
SenatorRonald C .Bean,...
ATHLETIC DEPA RTM ENT
NIC HO LLS STATE U NIVERSITY
STATE O F:LO UISIA NA
Thibodaux,[.ouisiana
FinancialStatem entand
Indep...
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Financial statement laundry shop5

  1. 1. DR.DO NA LD J.AYO ,PRESIDENT N IC HO LLS STA TE U N IV ERSITY STATE O F LO UISIA NA A uditReport,June 30,1996 LEGISLATIVEA UDITOR EXPENDITURES O F O UTSIDE O RGA NIZATIO N M A DE FO R O R IN BEHA LF O F THE NICHO LLS STATE!UNIVERSITY INTERCO LLEG IATE ATHLETICS PRO G RA M Review ofFinancialA ctivities ofO utside O rganizations W e obtained w ritten representation from m anagem entofthe university thatthe Colonel's Club was the only outside organization created fororin behalfofthe athletic departm ent. In addition,we obtained from the university a statem entof activitiesforthe yearended June 30,1996,forthe Colonel's Club and traced the figures from the statem ents to the university athletic departm ent's general ledger. Figures from the Colonei's Club account were traced to the club's supporting records. W e also reconciled the expenses incurred by the outside organization for or in behalf of the athletic departm ent to the statem ent of revenues and expenditures,and we reconciled direct paym ents ofthe outside organization to the accounting records of the university and to the revenues reported on the statementofrevenues and expenditures (StatementA). The financial activity of the Colonel's Club account w ithin the Nicholls College Foundation,Incorporated,forthe yearended June 30,1996,is asfollows: Fund balance,July 1,1995 Revenueandothersupport(donation, fund-raisers,etc.) Transferto Nichorls State UniversityAthletic Agency Fund Expensesfororin behalfofthe Nicholls State UniversityAthletic Departm ent-direct reim bursem ents Fund balance.June 30.1996 $68,487 24,478 (70,518) (3,449) $18.998 The university receives m onthlyfinancialstatem ents from the boosterclub as a basisto m onitorspending ofthe organization forathletics. The Nicholls College Foundation's statem ents are audited annually by an independentcertified public accounting firm .
  2. 2. DR.DO NA LD J.AYO ,PRESIDENT NICHO LLS STATE UNIVERSITY STATE O F LO UISIANA A uditReport,June 30,1996 LEGISLATIVEAUDITOR NTERNA L CO NTRO L PO LICIES A ND PRO CEDURES RELATING TO INTERCO LLEG IATE ATHLETICS - AG REED-UPO N PRO CEDURES M anagem entofNichofls State University is responsible forestablishing and m aintaining a system of internalaccounting control. In fulfilling this responsibility,estim ates and judgments by managementare required to assessthe expected benefits and related costs ofcontrolprocedures. The objectives ofa system are to provide management w ith reasonabte,butnotabsotute,assurance thatassets are safeguarded againstloss from unauthorized use ordisposition and thattransactions are executed in accordance w ith m anagem ent's authorization and recorded properly to perm it the preparation of financialstatem ents in accordance with generally accepted accounting principles. Because of inherent lim itations in any internal control structure, errors and/or irregularities may,nevertheless,occurand notbe detected. Also,projection ofany evaluation ofthe system to future periods is subjectto the riskthatprocedures may becom e inadequate because ofchanges in conditions orthatthe degree ofcom pliance w ith the procedures m ay deteriorate. The m inim um agreed-upon procedures, applied to certain aspects of the athletic departm ent's internalaccounting control,were m ore lim ited than would be necessary to express an opinion on the system of internalaccounting controltaken as a w hole. Because our study and evaluation was lim ited to applying m inim um agreed-upon procedures discussed in the follow ing paragraphs to certain aspects of the internal accounting control,w e do not express an opinion on w hether the system of internal accounting controlofthe Nicholls State University Athletic Departm ent,in effectforthe yearended June 30,1996,taken as a whole,was sufficientto meetthe objectives stated previously. In connection with our appSed procedures, we noted certain opportunities for im provem ent in the system of internal accounting control. O ur m inim um agreed-upon procedures are as follow s: Testofthe InternalControlEnvironm ent W e perform ed a prelim inary review of the internalaccounting controlof the athletic departm ent by reviewing the organizational chart prepared by the associate athletic director and by perform ing tests on the flow oftransactions through the accounting system .
  3. 3. DR.DO NALD J.AYO ,PRESIDENT N IC t'IO LLS STATE U N IV ERSITY STA TE O F LO UISIA NA AuditReport,June 30,1996 LL:LW M :dl LEGISLATIVEAUDITOR BoosterG roup A ctivities W e reviewed the university's procedures form onitoring boostergroup activities. The vice presidentforInstitutionalAdvancem ent,who isan ex-officio m em beron the board ofthe Nicholls College Foundation,Incorporated,and to whom the athletic director reports,attends board m eetings and receives annualfinancial statem ents from the foundation. In addition, the associate athletic director m aintains the financial records of the Colonel's Club account w ithin the foundation. ./~ ectfullysubmitted;/ DanielG .Kyle,CPA ,CFE Legislative Auditor
  4. 4. DR.DO NA LD 3.AYO ,PRESIDENT N IC HO LLS STATE U NIV ER SITY STATE O F LO UISIANA AuditReport,June 30,1996 LEGISLATIVEA UDITOR STATEM E'NT O F REVENUES A ND EXPENDITURES TestofStatem ent W e obtained from m anagem entthe statem entofrevenues and expenditures for the yearended June 30,19g6,as shown on Statem entA ,and requested written representation from m anagem ent as to its fair presentation. In addition,we verified the m athem aticalaccuracy ofthe am ounts on the statem entand traced the am ounts on the statem ent to various accounts in the revenue and expenditure ledgers of the university. W e noted no differences between the am ounts in the revenue and expenditure ledgers and the am ounts on the statem ent. Com parison ofStatem ents W e com pared the statem ents ofrevenues and expenditures forJune 30,1995, and June 30, 1996, to determ ine the percentage of increase or decrease between the tw o years. The university provided satisfactory responses forany m aterialvariances betw een the tw o years. Com parison ofBudgetto Actua Revenues and Expenditures W e com pared the am ount of budgeted revenues and expenditures to actual revenues and expenditures forthe yearended June 30,1996,to determ ine if there were any m aterialbudgetvariances. The university provided satisfactory responsesforany m aterialvariances between budgeted and actualam ounts. Contributions Exceeding Ten PercentofTotalContributions W e obtained from m anagem ent a list of contributions received by the athletic departm ent and determ ined that there w as one individual contribution, from State Farm Insurance Companies totaling $27,660,thatexceeded ten percent ($21,679)ofthetotalcontributions.
  5. 5. Nicholls State University is a publicly supported institution ofhighereducation. The university is a com ponentunitofthe State ofLouisiana w ithin the executive branch ofgovernm ent. The Nicholls State University Athletic Department, which operates the intercollegiate athletics program ,is a partofNicholls State University. The accom panying financialstatem entpresents inform ation only asto the transactions ofthe NichollsState UniversityAthletic Departm ent. SUM M ARY O F SIG NIFICA NT ACC O UNTING PO LICIES A . FUND A CCO UNTING To observe lim itations and restrictions placed on the use of available resources,the accounts ofNichol/s State University are m aintained in accordance with the principles of fund accounting. Such principles prescribe the m annerin w hich resources forvarious purposes are classified,foraccounting and reporting purposes,into funds thatare in accordance with the activitiesorspecified objectives. Accounts are maintained forthe transactions ofthe athletic departm entas follows: CurrentFunds -Unrestricted Unrestricled current funds include allfunds for operating purposes on w hich there are no restrictions,exceptthe budgetary controlprovisions included in the annuallegislative appropriation act,and include the G eneralFund and auxiliary enterprise funds. The auxiliary enterprise funds include the accounts of the athletic departm ent. Agency Funds This fund group represents funds forw hich the university acts as custodian or fiscalagenton behalfofothers,such as contributions and interestearnings of the athletic departm ent. B. BASIS O F ACCO UNTING The accounts of the athletic departm ent are m aintained on the accrual basis of accounting as follows:
  6. 6. ST A T E O F L O U ISIA N A L E G ISL A T IV E A U D IT O R Athletic Departm ent Nicholls State U niversity Sta te ofLouisiana Thibodaux,Louisiana April23,1997 Financialand C om pliance A uditD ivision D anielG .K yl'-~ e, Ph.D .,C PA ,C FE Legislative A uditor
  7. 7. LEGI.C;LATIVE A UDITOR ATHLETIC DEPA RTM ENT NIC HO LLS STATE U NIV ERSITY STA TE O F LO UISIA NA NotestotheFinancialStatement(Continued) Revenues Substantially allrevenuesare recognized w hen earned Expenditures Expenditures are generally recognized underthe accrualbasis of accounting whenincurred,exceptthat(1)depreciationisnotrecognized;(2)annualandsick leaveare recognizedwhenpaid;and (3)facultysalariesand related benefitsfor June are notprorated butare deferred to the succeeding year. C. EM PLOYEE CO M PENSATED A BSENCES Em ployees ofthe university working in the athletic departm entearn annualand sick leave in accordance w ith state law and adm inistrative regulations. Leave benefits are reflected in the accom panying financialstatem entwhen paid. D. TO TA L C O LUM N O N STATEM E-NT The totalcolumn on StatementA iscaptioned Memorandum Only (overview)to indicate that itis presented only to facilitate financialanalysis. Data in this colum n does not present results of operations in conform ity with generally accepted accounting principles. Neitheris such data com parable to a consolidation. CONTRIBUTIONS (GIFTS-IN-KIN[)) FRO M O UTSIDE O RGA NIZATIO NS The follow ing is a sum m ary of contributions-in-kind received and reported as revenues and expenditures on Statem entA : Revenues A utom obile dealerships -use ofone courtesy careach J.G raham Dodge,Inc. Dantin M otors,Inc. G reg LeBlanc Nissan Brow n Ford,Inc. G eriLeBlanc Pontiac Buick G M C Truck Howard Johnson -lodging forrecruits on officialvisits Chiropractic and PhysicalTherapy Clinic,Inc.- chiropractic and physicaltherapy services $3,000 3,000 3,000 3,000 3,000 2.500 3.000
  8. 8. LEGISLATIVE"-AUDITOR ATHLETIC DEP A RTM ENT N IC HO LLS STA TE U N IV ERSITY STATE O F LO UISIA NA Notestothe FinancialStatement(Conclucled) 3 Revenues(Cont.) Kern's Drycieaning,Inc.-laundry services Bayou Country Club -use ofgolfing facilities EIlendale Country Club -use ofgolfing facilities Thibodaux Driving Range -use ofgolfing facilities E.D.W hite High School-use oftrack Johnny's M en's Shop -uniform clothing forathleticevents Piccadilly Cafeteria -postgam e m eals and catering serv ices BollingerShipyard,Inc.-footballblocking sled A nlyn System s,Inc.-facsim ile services Totalrevenues Expenditures O perating services Travel Supplies Professionalservices Equipm ent Totalexpenditures O UTSIDE O RG A NIZATIO NS C REATED FO R O R IN BEHA LF O F THE NICHO LLS STATE UNIVERSITY INTERCO LI..EG IATE ATH LETICS PRO G RA M $1,500 100 200 1,500 500 3,000 3,000 795 250 $31,345 $19,050 2,500 6,000 3,000 795 $31,345 The Colonel's Club is the only outside organization created fororin behalfofthe Nicholls State University Intercollegiate Athletics Program . "]he accounts forthis club are m aintained as an athletic agency fund ofNicholls State University and as an accountw ithin the Nicholls College Foundation, Incorporated, w hich is a separate corporation. The athletic director and the associate athletic directordeterm ine the am ounts transferred to the University Athletic Agency Fund forthe Foundation. 10
  9. 9. ATHLETIC DEPA RTM ENT NICHO LLS STATE UNIVERSITY STATE O F LO UISIA NA Statem entofRevenues and Expenditures Forthe YearEnded June 30,1996 REVENUES Educationandgeneraltransfers G ate receipts Guarantees Commissions NCAA receipts In-kindcontributions(note2) Outsidefunds(note3) M iscellaneous Totalrevenues EXPENDITURES Personalservicesand related benefits Travel O perating service s Supplies Professionalaervi(:es G uarantees Scholarships Othercharges Equ,pment ]otalexpenditures EXCESS O F REVENUES OVER EXPENDITURES (PORTION OF) CURRENT FUNDS - UNRESTRICTED - AUXILIARY ATHLETIC ENTERPRISE AG ENCY FUND FUND $1,570,000 89,975 232,000 4,954 298.360 14.824 2,210,113 862,428 211,019 184,363 76,399 164,747 5,750 641,688 2,095 292 2.148.781 $31,345 257.308 288.653 45,309 39,765 39,005 68,818 4.450 30,648 1,049 229.044 $61,332 $59,609 250,784 223,368 145,217 169,197 5,750 641,688 32,743 1.341 2,377,825 $120,941
  10. 10. I)ANIEI,O.KYLE,P!I,D.,CPA,CFE LEGISLATIVE AUDITOR OFFICE:OF LEG ISLA TIV F.A U D ITO R STATE OF LOU ISIAN A BATON ROUG E,1,OUISIANA 70804-9397 M arch 20.1997 nder)endentA uditor's Reoort DR.DO NALD J.AYO ,PRESIDENT NICHO LLS STATE UNIVERSITY STATE O F LO UISIA NA Thibodaux.Louisiana 1600NOR'I'|ITIIIRI)S]RI,:I~I POS3 0|:FICE BOX 94397 TELEPtlONE:(504)339-3800 FACSIMILE: (504)339-3870 W e have audited the generalpurpose financialstatem ents of Nicholls State University, a com ponentofthe State ofLouisiana reporting entity,as ofJune 39,1996,and forthe years ended June 30, 1996, and June 30, 1995, and have issued our report thereon dated Decem ber19,1996. As requested by the university,we have also applied certain m inim um agreed-upon procedures contained in the National Collegiate Athletic Association Financial AuditG uidelines to the accounting records and system of internalaccounting controlofthe Nicholls State University Athletic Departm entand to the related outside organization created for orin behalfofthe university's Intercollegiate Athletics Program forthe yearended June 30, 1996, solely to assist the university in com plying w ith the National Collegiate Athletic Association (NCAA) Bylaw 6.2.3.1. It is understood that this report is solely for your inform ation. How ever,by provisions ofstate law ,this reportis a public docum entand has been distributed tothe appropriate publicofficials. Because the follow ing m inim um agreed-upon procedures do notconstitute an auditm ade in accordance with generally accepted auditing standards,we do notexpress an opinion on any of the accounts or item s on the accom panying statem entof revenues and expenditures ofthe athletic departm ent or on the sum m ary of financial inform ation of the related outside organization included in this report. In connection with the follow ing m inim um agreed-upon procedures,nothing cam e to ourattention thatcaused us to believe thatthe specified accounts oritems should be adjusted. Had we performed additionalprocedures orhad we made an auditofanyfinancialstatem ents ofthe Intercollegiate Athletics Program and the related outside organization of the Nicholls State University, in accordance w ith generally accepted governm entalauditing standards, m atters m ight have com e to our attention that w ould be reported to you. This report relates only to the accounts and item s discussed on the follow ing page,,; and does not extend to the financial statem ents of Nicholls State University, its Intercollegiate Athletics Program ,orthe related outside organization taken as a whole. Our m inim um agreed-upon proceduresfollow :
  11. 11. A THLETIC DEPA RTM ENT NIC HO LLS STAT["UNIVERSITY STATE O F LO UISIA NA FinancialStatem entand IndependentAuditor's Report Forthe YearEnded June 30.1996 ndependentAuditor'sReport (including sectiononinternalcontrol) FinancialStatem ent-Statem entof Revenues and F_xpenditures Notes to the FinancialStatem ent CO NTENTS Statem ent Page No A 2 7 8
  12. 12. LI'G ISLATIVE A U DIT A DVISO RY CO UNC IL M EM BERS Representative Francis C .Thom pson,C hairm an SenatorRonald C .Bean,V ice C hairm an SenatorRobertJ.Barham SenatorW ilson E.Fields SenatorThom as A .G reene SenatorCraig I-'.Rom ero Representative F.C harles M cM ains,Jr Representative Edw in R.M urray Representative W arren J.Triche,Jr. Representative David Vitter DanielG .Kyle,Ph.D.,CPA ,CFE A lbertJ.Fi:obinson,Jr.,C PA
  13. 13. ATHLETIC DEPA RTM ENT NIC HO LLS STATE U NIVERSITY STATE O F:LO UISIA NA Thibodaux,[.ouisiana FinancialStatem entand IndependentAuditor's Reports Forthe YearEnded June 30,1996 April23,1997

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