351.7232
L72aisac
1985
State of Montana Office of the Legislative Auditor
REPORT TO THE LEGISLATURE
MONTANA STATE UNIVERSITY
MONTANA AGRICULTURAL EXPERIMENT STATION
MONTANA COOPERATIVE EXTENSION SERVICE
Financial-Compliance Audit for the Two Fiscal Years Ended June 30, 1985
This report contains seven recommendations for improvement of the university operations. The ma- jor items addressed in the report include:
► Compliance with state and federal laws gov- erning hiring policies and compensation for student and non-student hourly employment.
► Compliance with reporting of unrestricted stu- dent FTEs.
► Lost interest of approximately $50,000 due to cash management of federal funds.
► Compliance with purchasing policies.
PLEASE RETURN
STATE DOCUMENTS COLLECTION
OCT 2 8 1986
MONTANA STATE LIBRARY
1515 E. 6th AVE. HCLENA, MONTANA 59620
85-2
Direct Comments/Inquiries to:
Office of the Legislative Auditor
Room 135, State Capitol
Helena, Montana 59620
MONTANA STATE LIBRARY
S 35 1 .7232 L72msuc 1 985 c. 1
Montana State University, Montana Agricu
3 0864 000S5971 9
FINANCIADCOMPLIANCE AUDITS
Financial-compliance audits are conducted by the Office of the Legislative Auditor to determine if an agency's financial operations are properly conducted, the financial reports are presented fairly, and the agency has complied with applicable laws and regulations which could have a significant impact on the financial schedules. In performing the audit work, the audit staff uses standards set forth by the American Institute of Certified Public Accountants and the United States General Accounting Office.
Financial-compliance audit staff members hold degrees with an emphasis in accounting. Most staff members hold Certified Public Accountant (CPA) certificates.
MEMBERS OF THE LEGISLATIVE AUDIT COMMITTEE:
Senator Judy Jacobson, Chairman Representative John Cobb,
Senator Dave Fuller Vice Chairman
Senator Pat Goodover Representative Dorothy Bradley
Senator Tom Keating Representative Roland Kennedy
Representative Bruce Simon
Office of the Legislative Auditor
MONTANA STATE UNIVERSITY MONTANA AGRICULTURAL EXPERIMENT STATION
MONTANA COOPERATIVE EXTENSION SERVICE
Financial and Compliance Report For the Two Fiscal Years Ended June 30, 1985
Members of the audit staff involved in this audit were:
Julie Barr Brian Farmer Jody Mauel
Don Davies John Fine Suzanne Wellcome
Mike Donovon Wayne Kedish Brian Zwang
Laurie Evans Diane Madden
^(1/
STATE OF MONTANA
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STATE CAPITOL
HELENA, MONTANA 59620
406/444-3122
SCOTT A. SEACAT
LEGISLATIVE AUDITOB
DEPUTY LEGISLATIVE AUDITORS: JAMES GILLETT
FINANCIAL COMPLIANCE AUDITS
JIM PELLEGRINI
PERFORMANCEAUOITS
LEGAL COUNSEL:
JOHN W. NORTHEY
The Legislative Audit Committee of the Montana State Legislature:
This is our financial-compliance audit report on the Montana State University, Cooperative Extension Service, and Agriculture Experiment. Station financial activity for fiscal years 1983-84 and 1984-85. The university's written response to audit
recommendations is included in the back of the audit report.
We thank the president and his staff for their cooperation and assistance throughout the audit.
ResDectfully submitted.
Scott A. Seacat Legislative Auditor
TABLE OF CONTENTS
Page
Appointive and Administrative Officials iv
Summary of Recommendations v
Introduction 1
Background 1
Legal Compliance 2
Hourly Pay Issues 3
Funding Levels '^
Student Withdrawal Notices 5
Purchasing 7
Cash Management 8
Inter-Entity Loans 9
Expenditure Accruals 10
Cash Deposits 11
Equipment 12
Internal Control 13
Prior Audit Recommendations 1^
Auditor's Opinion Letter and Montana State University Financial Statements
Summary of Audit Opinion
Auditor's Opinion Letter - MSU 15
MSU Financial Statements
Balance Sheets - June 30, 1985 17
Statement of Changes in Fund Balances
Year Ended June 30, 1985 21
TABLE OF CONTENTS (Continued^
Page
Statement of Current Funds, Revenues, Expen- ditures, and Other Changes, Year Ended June 30, 1985 25
Notes to the Financial Statements, June 30, 1985 27
Balance Sheets - June 30, 1984 33
Statement of Changes in Fund Balances
Year Ended June 30, 1984 37
Statement of Current Funds, Revenues,
Expenditures, and Other Changes,
Year Ended June 30, 1984 41
Notes to the Financial Statements - June 30, 1984 43
Schedule of Grant Expenditures and
Disbursements Fiscal Year Ended
June 30, 1985 49
Schedule of Grant Expenditures and
Disbursements Fiscal Year Ended
June 30, 1984 63
Schedule of Full-Time Equivalent (FTE)
Students For the Two Years Ending
June 30, 1985 77
Auditor's Opinion Letter and Agricultural Experiment Station Financial Statements
Auditor's Opinion Letter - AES 78
AES Financial Statements
Balance Sheets - June 30, 1985 80
Statement of Changes in Fund Balances
Year Ended June 30, 1985 82
Statement of Current Funds, Revenues,
Expenditures, and Other Changes, Year
Ended June 30, 1985 84
Notes to the Financial Statements - June 30, 1985 85
TABLE OF CONTENTS (Continued)
Page
Balance Sheets - Year Ended June 30, 1984 88
Statement of Changes in Fund Balances
Year Ended June 30, 1984 90
Statement of Current Funds, Revenues, Expenditures and Other Changes, Year Ended June 30, 1984 92
Notes to the Financial Statements - June 30, 1984 93
Auditor's Opinion Letter and Cooperative Extension Service Financial Statements
Auditor's Opinion Letter - CES 96
CES Financial Statements
Balance Sheets - Year Ended June 30, 1985 98
Statement of Changes in Fund Balances
Year Ended June 30, 1985 100
Statement of Current Funds, Revenues, Expenditures and Other Changes, Year Ended June 30, 1985 101
Notes to the Financial Statements - June 30, 1985 102
Balance Sheets - Year Ended June 30, 1984 105
Statement of Changes in Fund Balances
Year Ended June 30, 1984 _ 107
Statement of Current Funds, Revenues, Expenditures and Other Changes, Year Ended June 30, 1984 108
Notes to the Financial Statements 109
Agencies Response
Montana State University 112
Commissioner of Higher Education 115
III
APPOINTIVE AND ADMINISTRATIVE OFFICIALS
BOARD OF REGENTS OF HIGHER EDUCATION
Term Expires
Ted Schwinden, Governor* 1988
Ed Argenbright, Superintendent
|
of Public Instruction* |
1988 |
|
|
Jeffrey Morrison, Chairman |
Helena |
1987 |
|
Dennis Lind, Vice Chairman |
Missoula |
1989 |
|
Beatrice McCarthy |
Anaconda |
1990 |
|
David Paoli |
Missoula |
1986 |
|
Bert Hurwitz |
White Sulphur Springs |
1993 |
|
Elsie Redlin |
Sidney |
1991 |
|
John Scully |
Bozeman |
1992 |
|
*Ex officio members |
COMMISSIONER OF HIGHER EDUCATION
Dr. Carrol Krause Commissioner of Higher Education
John Noble Deputy Commissioner for Management and
Financial Affairs
MONTANA STATE UNIVERSITY ADMINISTRATION
Dr. William Tietz President
Dr. Stuart Knapp Vice President for Academic Affairs
Dr. James Pickett Acting Director of Administration
Until June 30, 1986
James Isch Director of Administration
Effective July 1 , 1986
Dr. John Jutila Vice President for Research
Dr. James Welsh Director, Agricultural Experiment Station
Dr. Carl J. Hoffman Vice President for Extension and
Director, Cooperative Extension Service
iv
SUMMARY OF RECOMMENDATIONS
This listing serves as a means of summarizing the recommendations contained in the report and the university's response to them. The major issues address problems concerning compliance with state and federal laws governing hiring policies and compensation for student and nonstudent hourly employment; compliance with reporting of unrestricted student FTEs; cash management of grant and contract funds; and compliance with purchasing policies.
Page
Recommendation #1
The university properly report student FTE
in accordance with Regents policy. 5
University Response: Concur. See page 113. Commissioner of Higher Education Response: Concur. See page 116.
Recommendation #2
The university follow state purchasing
laws and policies. 7
University Response: Concur. See page 113.
Recommendation #3
The university request federal moneys in
a manner which will minimize the necessity
for the state to advance cash to federal
programs. 9
University Response: Concur. See page 113.
Recommendation #4
The university establish procedures to
forecast cash needs to ensure positive
cash balances are maintained in compliance
with state laws. 10
University Response: Concur. See page 113.
Recommendation #5 The university:
A. Accrue expenditures in accordance with
state accounting policies. 11
University Response: Concur. See page 114.
V
SUMMARY OF RECOMMENDATIONS (Continued?
Page
B. Correct invalid expenditure accruals. 11
University Response: Concur. See page 114.
Recommendation #6
The university deposit receipts on a timely
basis in accordance with state law. 12
University Response: Concur. See page 114.
Recommendation #7 The university:
A. Improve controls to ensure all items disposed of and ail inventories are
deleted from its property records. 12
University Response: Concur. See page 114.
B. Ensure all state equipment items are
tagged as state property. 12
University Response: Concur. See page 114.
VI
INTRODUCTION
We performed a financial-compliance audit of Montana State University (MSU) and the related Cooperative Extension Service fCES) and Agricultural Experiment Station (AES) for the two fiscal years ended June 30, 1985. The objectives of the audit were to:
1. determine if the university complied with applicable laws and regulations which could have a significant effect on the financial statements;
2. determine if the financial statements present fairly the financial position and results of operations of the univer- sity for the two fiscal years ended June 30, 1985; and
3. make recommendations for improvements in the manage- ment and internal accounting controls of the university.
This report contains seven recommendations to the university. These recommendations address areas where compliance with laws and regulations, management, internal control, and financial re- porting can be improved. Other areas of concern deemed not to have a significant effect on the successful operations of the uni- versity programs are not specifically included in the report, but have been discussed with management.
In accordance with section 5-13-307, MCA, we analyzed the costs of implementing the recommendations made in this report. Each report section discloses the cost, if significant, of imple- menting the recommendation.
BACKGROUND
Montana State University was founded on February 15, 1893, as the Agricultural College of the state of Montana, and instruction started on April 17 of that year. The school was later named Montana State College, and on July 1, 1965, it became Montana State University (MSU). The university is a land-grant institution as authorized by the Morrill Act of 1862 and receives part of its support from land-grant income, as well as state appropriations, student fees, and federal and private grants.
The public service function of the university had its origin in the establishment of the Cooperative Extension Service (CES) in 1915, created under the federal Smith-Lever Act and state legis- lation. Financial support for its operation comes from county, state, and federal governments, as well as from federal and pri- vate grants. County agents and specialists are an integral part of the university and channel information to Montanans to aid in solving home, farm, and community problems.
The Agricultural Experiment Station (AES) is also an integral part of the university. It was established in 1893 by the Montana Legislature under authorization provided by the federal Hatch Act of 1887. The station receives federal funds under the Hatch Act, as well as state appropriations, federal and private grants, and funds from the sale of surplus agricultural products. The Agri- cultural Experiment Station has eight locations in the state, ex- cluding the Bozeman campus. The station components are devoted to solving present and future agricultural and home economics problems of local, regional, and national concern. The distribution of research centers is such that the peculiarities of local or area soil, water, and climate can be considered.
The president of Montana State University is the chief execu- tive officer for all three units: MSU, AES, and CES. The presi- dent is responsible for the immediate direction, management, and control of the institution under the general supervision and direc- tion of the Board of Regents.
LEGAL COMPLIANCE
We have examined the financial statements of MSU, AES, and CES for the two fiscal years ended June 30, 1985, and have issued our report thereon dated February 14, 1986. Our examination was made in accordance with generally accepted auditing standards. Standards for Audits of Governmental Organizations, Programs, Activities, and Functions, Office Management and Budget (0MB) Circulars A-21 and A-110, and the March 1984 student aid audit guide prescribed by the U.S. Department of Education. Accordingly,
we reviewed the state and federal laws and regulations applicable to the university's operations. Areas reviewed include specific state laws which could have a material impact on the university's financial operations, specific grant provisions, cost allowability, eligibility, and grantor reporting. For the items tested, except for the items discussed in the following sections of this report, we found the university complied with applicable laws and regulations. Nothing came to our attention that causes us to believe untested compliance items are not in accordance with applicable laws and regulations.
Hourly Pay Issues
As part of the regular audit process, MSU officials provide the Legislative Auditor's Office information regarding internal audits they have performed during the audit period or are currently working on. At the end of our audit, we reviewed one internal audit which dealt with issues concerning adherence to state and federal laws and Board of Regents rules governing hiring policies and compensation for student and non-student hourly employment.
The first issue addressed the legality of MSU hiring hourly employees without regard to the state pay classification plan. Board of Regents policy (Montana University System Policy and Procedures Manual, section 707), states: "The state classification system shall apply to all non-academic employees of the Montana University System not on individual Board of Regent's contracts."
The second issue addressed MSU not paying overtime for temporary hourly employees working in excess of 40 hours per week. This is a violation of state statutes and the federal Fair Labor Standards Act.
MSU personnel are currently working with the Office of the Commissioner of Higher Education to resolve the concerns addressed in the internal audit report. Personnel Services and the Financial Aid Office at MSU are in the process of developing systems which will monitor and report any individual who works in excess of 40 hours per week to ensure overtime is paid.
Due to the corrective actions MSU is currently taking to address the policy and compliance issues raised in the internal audit report, we are disclosing these compliance issues for infor- mational purposes and make no recommendation at this time. During the next audit, we will follow up on these issues to ensure MSU adequately resolves them.
Funding Levels
Student enrollment is a factor used by the legislature when it determines state funding levels for each unit of the Montana Uni- versity System. Each unit converts its enrollment figures into full-time equivalents (FTEs).
The Office of the Commissioner of Higher Education (CHE) has established policies outlined in the "Registrars' Manual for Reporting Enrollment Data" for the university units to follow in reporting enrollment information. One of the reports CHE requires is the "Summary of Restricted Enrollments and Student Classifica- tions." The criteria for this report states that enrollments gen- erated by restricted funds must be identified so they may be removed from the total enrollment figures utilized to generate state funding. It further states that restricted enrollments mean stu- dent credit hours generated in any course or program in which the instructor's teaching responsibilities are funded by sources outside the regular operating budget (current unrestricted) of the institu- tion. Because MSU receives funding other than state (current unrestricted) moneys for some of its academic programs, MSU should eliminate the FTEs associated with this type of funding from the total FTE counts to properly determine state funding levels.
MSU generates a report based on quarterly statistics showing the student credit hours and associated FTE levels produced by grant and contract (restricted) funding. These restricted enroll- ment figures indicate the necessary reductions to total FTEs needed to be made in order to properly compute state funding. We noted that, although the Military Science program is partially federally funded, MSU does not factor out the applicable FTEs in
computing the state funded FTE levels. The FTEs associated with the Military Science program were 28.53 in fiscal year 1983-84 and 29.82 in fiscal year 1984-85. MSU reports these FTE because the instructor salaries are paid directly by the federal government and are not supported through a MSU grant and contract account. Therefore, MSU does not consider these FTE to be restricted enrollments. As defined in regents policy. Military Science FTEs clearly meet the restricted criteria and MSU should identify and remove them from enrollment figures used to generate state fund- ing.
A university official estimated the General Fund support per FTE is approximately $2,648 during fiscal years 1983-84 and 1984-85. Since MSU did not remove the FTEs associated with the Military Science program, MSU received a maximum of approximately $77,255 additional funding for each of the fiscal years 1983-84 and 1984-85.
RECOMMENDATION #1
WE RECOMMEND THE UNIVERSITY REPORT STUDENT FTE IN ACCORDANCE WITH REGENTS POLICY.
Student V>^ithdrawai Notices
Federal regulations (34 CFR Part 682] require schools to notify lenders who issue students Guaranteed Student Loan (GSL) whenever the students graduate, withdraw, or cease to be enrolled at least half-time. The notification is to be made within 60 days of the withdrawal. MSU uses the Student Confirmation Report (SCR), which discloses the status of GSL students, as a source for lender notification. The Student Confirmation Report is initiated by a private company contracted by the state to act as an information pool and processing facility for the Montana Guaranteed Student Loan Program. The company sends the report to MSU's financial aid office each May and October. The financial aid office sends the report to the registrar's office. The registrar's office
indicates the enrollment status of each student and sends the report back to the financial aid office. The report is sent back to the company who then uses the information to update its data base and notify applicable lenders. In those instances where notifica- tion of lenders within 60 days cannot be met via the SCR process, MSU notifies the lenders directly. In a sample of four students who met the above criteria, we found one instance where MSU did not notify the lender of the change in the student's status because MSU did not complete the SCR report for the period covering spring quarter 1984.
In order to determine the approximate number of students affected, we reviewed the SCRs for the period just prior and subsequent to the period notification was not made. The SCR for the fall of 1983 showed approximately 400 students who were not enrolled at least half-time and about 800 for the fall of 1984. Since the report for the spring of 1984 was not issued, the fall 1984 report contained the students for both spring and fall. Based on this data, we estimate lenders were not informed of 400 students who had GSLs and were less than half-time as of spring quarter 1984.
Beginning in spring quarter 1985, MSU revised its time consuming manual reporting system to an automated one. This system compares a computerized listing of students with GSLs to those students who are not registered at least half-time. A listing is generated for those students meeting the match and MSU then notifies the lenders.
After reviewing the procedures employed at MSU to update and complete the SCRs, we determined the procedures appear adequate to ensure these reports are completed and lenders are notified. Therefore, we are only disclosing the compliance issue and do not make a recommendation at this time. We will follow up on MSU's revised reporting system during the next audit and re-evaluate its adequacy to meet federal regulations and reporting requirements.
Purchasing
State law (section 18-it-221, MCA) states the Department of Administration (DofA), shall govern the procurement of all supplies and services to be procured by the state. The DofA, Purchasing Division, acts as the state's central purchasing agent. The pur- pose of having a centralized function is to provide state agencies with necessary supplies and materials at a reduced cost through quantity discounts and lower overhead. The Department of Admin- istration has delegated purchasing authority to the Cooperative Extension Service Multilith Department for purchases up to $2,000.
In our previous two audits we found the Multilith Department of the Cooperative Extension Service (CES) was not properly using Central Purchasing for paper purchases. We reviewed a sample of purchases greater than $2,000 to ensure Multilith was complying with purchasing policies. We found that in five instances Multilith did not use Central Purchasing as required. These purchases ranged from slightly above $2,000 to over $17,000.
Multilith personnel explained they do not always use Central Purchasing because they believe they can usually get a better quality paper more suited to their printing needs at a lower cost and in less time than Central Purchasing can deliver. In fiscal year 1983-84, Multilith requested delegated authority for purchases up to $30,000 from DofA. However, DofA denied this request. Because CES has an exemption only for purchases up to $2,000, Multilith purchases greater than $2,000 are in violation of state purchasing policies.
In addition, federally sponsored projects use Multilith ser- vices. Federal regulations (0MB Circular A-21 section C3) states that one -of the factors affecting allowability of costs is that the costs claimed for federal reimbursement must be consistent with state laws and regulations.
RECOMMENDATION #2
WE RECOMMEND THE UNIVERSITY FOLLOW STATE PURCHAS- ING LAWS AND POLICIES.
Cash Management
During fiscal year 1984-85, the university received approxi- mately $16 million of federal moneys for federally assisted grants, contracts, and student aid. The university receives these funds through cash requests or drawdowns. Because drawdowns are predominantly on a reimbursement basis and are requested on a monthly or longer basis, there is a time lag between an expendi- ture and subsequent reimbursement that is filled by using state funds. Based on our analysis of balances in federal accounts, we estimated MSU's use of state funds to cover federal cash shortfalls due to the time lag is costing the state approximately $50,000 per year in lost interest.
According to university personnel, one of the reasons MSU needs state funds to cover federal cash shortfalls is because of the timing of drawdowns. Drawdowns are generally made during the first 10 days of the month prior to the payroll costs being paid. If MSU were to request federal funds more frequently and also at the time the payroll expenses are paid, it should help reduce the amount of state funds needed to temporarily support federal proj- ects. MSU personnel also indicated that in the past, insufficient staff made frequent drawdowns unrealistic. Since the hiring of additional staff, it should be feasible for MSU to request more fre- quent drawdowns. A certain amount of time lag can be expected, however, we believe MSU could substantially reduce the time lag through more frequent drawdowns.
Federal regulations (0MB Circular A-1 10 Attachment F(2e)) state the recipient shall make drawdowns as close as possible to the time of making disbursements. State law (section 17-2-108, MCA), requires agencies to use non-General Fund moneys wherever possible before using General Fund moneys. These federal and state requirements advocate the use of frequent drawdowns in order to minimize lost interest on state or federal funds.
RECOMMENDATION #3
WE RECOMMEND THE UNIVERSITY REQUEST FEDERAL MON- EYS IN A MANNER WHICH WILL MINIMIZE THE NECESSITY FOR THE STATE TO ADVANCE CASH TO FEDERAL PRO- CRAMS.
Inter-Entity Loans
State law (section 1 7-2-1 07(2) , MCA] states that when an expenditure of an appropriation is necessary and there is an insufficient amount of cash, the Department of Administration may authorize a cash transfer (inter-entity loan) of unrestricted moneys from other accounts, provided there is reasonable evidence that income provided for the remainder of the year will be suffi- cient to restore the transferred amount. The loan must be repaid by the end of the fiscal year unless an extension is granted by the Department of Administration. Extensions may be granted for one additional fiscal year if the Department of Administration receives sufficient written justification that the loan is for the sole purpose of:
a) repairing or replacing property damage covered by insurance; or
b) payment of expenses which will later be reimbursed by certain receipts as detailed in 17-2-107(3), MCA.
In addition, section 17-2-107(6), MCA, states that no accounting entity may have a negative cash balance at fiscal year-end.
Just prior to fiscal year-end 1983-84 and 1984-85, AES and CES had negative cash balances in certain designated funds. Since this was in violation of section 17-2-107(6), MCA, and to comply with generally accepted accounting principles, MSU recorded inter-entity loans to correct the negative cash balances. However, since the loans were not in accordance with sections 17-2-107(2) and (3), MCA, the Department of Administration did not authorize
them. The Department of Administration processed the loans without giving its approval.
The problems noted with inter-entity loans are not confined to MSU. The overall issue of inter-entity loans is further addressed in the Department of Administration's report for fiscal years 1983-84 and 1984-85. The Department of Administration has acknow- ledged that this issue exists and intends to address, at least in part, this issue in the next legislative session. MSU should establish cash controls that will ensure compliance with state laws and accounting policies.
RECOMMENDATION #4
WE RECOMMEND THE UNIVERSITY ESTABLISH PROCEDURES
TO FORECAST CASH NEEDS TO ENSURE POSITIVE CASH
BALANCES ARE MAINTAINED IN COMPLIANCE WITH STATE
LAWS.
Expenditure Accruals
According to state law (section 17-7-302, MCA) and account- ing policies (MOM 2-1420 and Management Memo 2-85-3), agencies are allowed to accrue expenditures at fiscal year-end for any valid obligations. An agency has a valid obligation when it has re- quested goods or services through a valid purchase order or inter-agency or intra-agency agreement or has received those goods or services but has not yet paid for them.
We found MSU accrued $32,600 for a deferred plant mainte- nance project for which MSU had not received the goods nor had a valid maintenance work order agreement been issued. Plant per- sonnel indicated the accrual was made to use available funds for a project to replace windows in one of the campus buildings as soon as the plans were final. Since MSU did not have a valid obliga- tion, the accrual was not valid under state accounting policies. MSU would have reverted $32,600 of appropriation authority if this accrual had not been made.
10
We also found that during fiscal year 1983-84 MSU received $132,399 of services through computer use agreements. MSU did not accrue these expenditures at fiscal year-end 1983-84. When MSU paid these expenditures, it recorded them as fiscal year 1984-85 expenditures. Since MSU had received the services, it should have accrued the expenditures.
In addition, at fiscal year-end 1983-84 CES accrued $3,466 related to two purchases. However, CES did not receive a pur- chase order for these items until July of fiscal year 1984-85. Since CES did not have a valid obligation at June 30, 1984, the accrual was not valid under state accounting policies. If CES reverses these accruals, it will not cause a General Fund reversion because Chapter 710, Laws of 1983 allowed CES to carry over fiscal year 1983-84 unused appropriation balance into fiscal year 1984-85 to fund vacancy savings.
RECOMMENDATION #5
WE RECOMMEND THE UNIVERSITY:
A. ACCRUE EXPENDITURES IN ACCORDANCE WITH STATE ACCOUNTING POLICIES.
B. CORRECT INVALID EXPENDITURE ACCRUALS.
Cash Deposits
State law (section 17-6-105(6), MCA) requires all moneys received be deposited each day when the accumulated amount of coin and currency exceeds $100 or total collections exceed $500. In any event, all moneys collected shall be deposited at least weekly. During our testing we noted Multilith collections were not deposited on a timely basis. We reviewed deposits made between July 1984 and April 1985. During this time period Multilith deposited collections once or twice a month. These deposits ranged from $207 to $3,000. Multilith personnel indicated this occurs because of busy schedules and wanting to ensure deposits are accurate. The failure to deposit receipts on a timely basis results in lost interest on the undeposited amounts during the time period the deposits are delayed and increases possibility of loss.
11
RECOMMENDATION #6
WE RECOMMEND THE UNIVERSITY DEPOSIT RECEIPTS ON A
TIMELY BASIS IN ACCORDANCE WITH STATE LAW.
EQUIPMENT
MSU, AES, and CES had approximately $45.5 million of equip- ment recorded on its respective Net Investment in Plant Fund at June 30, 1985, During our audit, we noted the following problems:
1. MSU did not delete, from its property listing, all equip- ment which had been disposed of in previous years. For instance, we noted a mass spectrometer valued at $100,000 and a Sigma computer valued at $345,457 were still on the listing even though MSU had disposed of them. MSU should ensure all items disposed of are removed from its property listing,
2. MSU recorded service shop, chemical store, on-campus living and Multilith inventories in its property listing. MSU also recorded these inventories on the financial statements in the Current Funds. Since inventories are not fixed assets, MSU should exclude them from its property listing.
3. MSU did not tag numerous equipment items. For example, we noted many dining hall items and musical instruments were not tagged. To safeguard items, state policy requires all items over $200 be tagged or otherwise identified as state property. MSU should ensure all items are tagged. For those items where placing tags on them is not feasible, MSU should consider alternatives, such as engraving, to identify them as state property.
RECOMMENDATION #7
WE RECOMMEND THE UNIVERSITY:
A. IMPROVE CONTROLS TO ENSURE ALL ITEMS DISPOSED OF AND ALL INVENTORIES ARE DELETED FROM ITS PROPERTY RECORDS.
B. ENSURE ALL STATE EQUIPMENT ITEMS ARE TAGGED AS STATE PROPERTY.
12
INTERNAL CONTROL
We have examined the financial statements of the Montana State University (MSU), Montana Cooperative Extension Service (CES), and Montana Agricultural Experiment Station (AES) for the two fiscal years ended June 30, 1985. We issued our opinions dated February 14, 1986, on these statements. As part of our examination, we made a study and evaluation of the system of internal control of the university. Our study evaluated the system as required by generally accepted auditing standards and Standards for Audits of Governmental Organizations, Programs, Activities, and Functions for financial and compliance audits. We classified the controls in the following categories:
1. revenue/ receipts;
2. operating expenditures;
3. payroll;
4. accounts payable/interfund loans payable;
5. accounts receivable/interfund loans receivable;
6. plant, property, and equipment;
7. inventory;
8. cash;
9. contracts and grants;
10. student financial aid; and
11. investments.
Our study included the control categories listed above. Through our study, we determined the nature, timing, and extent of our auditing procedures. We applied alternative audit tests to cash, inventory, investments, accounts payable, and accounts receivable because the audit could be performed more efficiently by expand- ing substantive audit work. We did not evaluate the control system to the extent necessary to give an opinion on either indi- vidual segments or the system as a whole.
The management of the university is responsible for establish- ing and maintaining a system of accounting control. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of a system are to provide management with reasonable assurance that: 1) assets are safe-
13
guarded against loss from unauthorized use or disposition; 2) transactions are executed in accordance with management's authorization; and 3) transactions are recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Inherent limitations in any system of controls may cause errors or irregularities to remain undetected. The current system evaluation should not be used to project to future periods since procedures may become inadequate or compli- ance with them may deteriorate.
The limited purpose study described in the first paragraph would not necessarily disclose all material weaknesses in the sys- tem. Accordingly, we do not express an opinion on the system of controls used by the university. However, our study and evalua- tion disclosed no conditions that we believe to be a material weak- ness.
The preceding four paragraphs are intended solely for the use of management and the legislature and should not be used for any other purpose. This restriction as to use is not intended to limit the distribution of this document which, upon presentation to the Legislative Audit Committee, is a matter of public record.
PRIOR AUDIT RECOMMENDATIONS
Our last financial-compliance audit and student financial aid audit of the university for the two fiscal years ended June 30, 1983, contained ten recommendations applicable to the university. The university implemented six of the recommendations, partially implemented three of the recommendations, and did not implement one of the recommendations. The recommendations which the university partially implemented concern recording construction in progress, compliance with state law concerning surplus property, and final determinations of questioned federal costs. These rec- ommendations were not included in the report but have been discussed with management. The recommendation which the uni- versity did not implement concerns CES purchasing and is dis- cussed on page 7.
14
MONTANA STATE UNIVERSITY AUDITOR'S OPINION AND AGENCY FINANCIAL STATEMENTS
SUMMARY OF AUDIT OPINION
The auditor's opinions issued on Montana State University, Agricultural Experiment Station and Cooperative Extension Service are intended to convey to the reader of the financial statements the degree of reliance which can be placed on the amounts pre- sented. The reader may rely on the fairness of the amounts presented on the statements listed in paragraph one of each of the auditor's opinions on pages 15, 78, and 96, except for the specific item discussed in the auditor's opinion on page 15, when analyzing the unit's operations.
SCOTT A. SEACAT
LEGISLATIVE AUDITOB
STATE OF MONTANA
STATE CAPITOL
HELENA, MONTANA 59620
406/444-3122
DEPUTY LEGISLATIVE AUDITORS: JAMES GILLETT
FINANCIAL-COMPLIANCE AUDITS
JIM PELLEGRINI
PERFORMANCE AUDITS
LEGAL COUNSEL:
JOHNW. NORTHEY
The Legislative Audit Committee of the Montana State Legislature;
We have examined the accompanying Balance Sheets of Montana State University (MSU) at June 30, 1984 and June 30, 1985, and the related Statements of Changes in Fund Balances and Current Funds Revenues, Expenditures, and Other Changes for each of the two fiscal years ended June 30, 1985. Our examination was made in accordance with generally accepted auditing standards and Standards for Audits of Governmental Organizations, Programs, Activities, and Functions and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.
The financial statements presented are only for Montana State University. Accordingly, the accompanying financial statements are not intended to present fairly the financial position of the state of Montana as of June 30, 1984 and 1985 or the results of its operations and changes in its fund balances for the two fiscal years then ended, in conformity with generally accepted accounting principles.
The bond payable footnote did not provide adequate disclo- sure. Adequate footnote disclosure for bonds payable should include a summary of the interest rates and repayment amount for each of the next five years on the bonds and a combined amount due following the five year repayment.
15
In our opinion, except for tiie effects discussed in paragrapin three, the financial statements referred to above present fairly the financial position of Montana State University as of June 30, 1984 and June 30, 1985, the changes in its fund balances, and the current funds revenues, expenditures, and other changes for each of the two years then ended in conformity with generally accepted accounting principles which have been applied on a consistent basis.
Our examination was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying Schedules of Grant Expenditures for fiscal years ended June 30, 1984 and 1985, and the Schedule of Full-Time Equivalent (FTE) Students for the two years ending June 30, 1985 prepared in accordance with the U.S. Department of Education, U.S. Department of Health and Human Services, and the Regis- trar's Manual for Reporting Enrollment Data reporting requirements are presented as supplemental information and are not a required part of the basic financial statements. This information has been subjected to the auditing procedures applied in our examination of the basic financial statements. In our opinion, except for the effects of the matter discussed in paragraph three, the information is fairly stated in all material respects in relation to the basic financial statements taken as a whole.
Respectfully S4Jbmitt^d,
0
James Cillett, CPA Deputy Legislative Auditor
February 14, 1985
16
MONTANA STATE UNIVERSITY
BALANCE SHEETS Year Ended June 30, 1985
ASSETS
CURRENT FUNDS: Unrestricted:
General operating: Cash
Accounts receivable Due from other fund groups
$ 1,513,739 865,956
2,427,761
Total general operating
Designated: Cash
Accounts receivable Due from other fund groups Investments (Note 3) Inventories
Total designated
Auxiliary enterprises: Cash
Accounts receivable Due from other fund groups Investments (Note 3) Inventories
4,807,456
123,928 277,278 609,871 225,255 503,479 1,739,811
421,493
68,362
16,944
1,561,081
460,056
Total auxiliary enterprises
Total unrestricted
2,527,936 9,075,203
Restricted:
Cash •
Accounts receivable Due from other fund groups Investments (Note 3)
Total restricted Total current funds
625,529
1,049,632
12,691
640,950
2,328,8"02
$11,404,005
STUDENT LOAN FUNDS: Cash Loans receivable - less allowance for
bad debts $327,902 Accounts receivable
112,840
7,869,646 390
Total student loan funds
See notes to financial statements 17
$ 7,982,876
LIABILITIES AND FUND BALANCES
CURRENT FUNDS: Unrestricted:
General operating: Accrued payroll
Accounts payable and accrued liabilities Due to other fund groups Deposits
Deferred revenue
Compensated absences payable (Note 7) Fund balance (Note 1)
Total general operating
2,536,107
740,126
931,499
40,957
487,322
3,278,410
(3,206,965)
4,807,456
Designated:
Accrued payroll
Accounts payable and accrued liabilities Due to other fund groups Compensated absences payable (Note 7) Fund balance (Note 1) Total designated
236,532 279,737
1,112,537 245,374 (134,369)
1,739,811
Auxiliary enterprises: Accrued payroll
Accounts payable and accrued liabilities Deposits
Deferred revenue Due to other fund groups Compensated absences payable (Note 7) Fund balance
Total auxiliary enterprises
Total unrestricted
255,633 166,249 248,506 41,514 247,461 301,313
|
1 |
,267,260 |
|
2 |
,527,936 |
|
9 |
,075,203 |
Restricted :
Accrued payroll
Accounts payable and accrued liabilities
Due to other fund groups
Compensated absences payable (Note 7)
Fund balance
Total restricted
309,444 2,026
1,359,080 252,723 405,529
2,328,802
Total current funds
STUDENT LOAN FUNDS:
Accounts payable and accrued liabilities Fund balances:
U.S. Government grants refundable
University funds
Private gifts
$7,094,974
788,330
94,145
Total student loan funds
$11,404,005
5,427
7,977,449 $ 7,982,876
18
MONTANA STATE UNIVERSITY
BALANCE SHEETS Year Ended June 30, 1985
ASSETS
ENDOWMENT FUNDS:
Cash $ 13,789
Investments (Note 3) 560,095
Total endowment funds $ 573,884
PLANT FUNDS: Unexpended :
Cash $ 242,272
Accounts receivable 406,864
Investments (Note 3) 11,322,330
Construction advances to state 140 ,848
Total unexpended 12,112,314
Renewals and replacements:
Cash 27,527
Accounts receivable 2,566
Due from other fund groups 275,000
Investments (Note 3) 257,592
Total renewals and replacements 562 ,685
Retirement of indebtedness:
Cash 138,023
Accounts receivable 135,518
Investments (Note 3) 4,653 ,623
Total retirement of indebtedness 4,927 , 164
Investment in plant:
Land and land improvements 2,431,358
Buildings (including construction in progress) 81,600,562
Equipment 40,077,758
Livestock 62 ,075
Total investment in plant 124, 171 , 753
Total plant funds $141,773,916
AGENCY FUNDS:
Cash $ 398,150
Accounts receivable 134,804
Due from other fund groups 626,939
Investments (Note 3) 428 ,595
Total agency funds $ 1,588,488
See notes to financial statements 19
LIABILITIES AXD FUND BALANCES
ENDOWMENT FUNDS:
Fund balance $ 573,884
Total endowment funds $ 573,884
PLANT FUNDS: Unexpended:
Accounts payable and accrued expenditures $ 5,594
Due to other fund groups . 17,407
Bonds payable (Note 4) 10,396,328
Fund balance 1,692,985
Total unexpended 12,112,314
Renewals and replacements:
Accounts payable and accrued expenditures 16,080
Due to other fund groups 26,132
Fund balance 520,473
Total renewals and replacements 562 ,685
Retirement of indebtedness:
Due to other fund groups 103
Fund balance 4,927,061
Total retirement of indebtedness 4 ,927 , 164
Investment in plant:
Bonds payable (Note 4) 17,633,672
Other payables 48,984
Net investment in plant 106,489,097
Total investment in plant 124 , 171 , 753
Total plant funds $141 ,773,916
AGENCY FUNDS:
Accrued payroll $ 24,263
Accounts payable and accrued liabilities • 162,307
Compensated absences payable (Note 7) 2,288
Due to other fund groups 274,985
Deposits held in custody for others 1 , 124 ,645
Total agency funds $ 1,588,488
20
MONTANA STATE UNIVERSITY STATEMENT OF CHANGES IN FUND BALANCES Year Ended Jure 30, 1985
Current Funds
Unrestricted
General Auxiliary
Operating Designated Enterprises Restricted
Revenue and other additions :
Current funds revenue $44,585,416 $ 6,232,697 $11,961,914 $11,172,679
Federal capital contribution - - - -
University capital contribution - - - -
Private capital contribution - - - -
Interest on loans receivable - -
Bond indenture proceeds (Note 5) - - - -
Gain on bond defeasance (Note 5) - - - -
Student fees - - - - Investment income
Endowment income & grants (Note 2) - - - -
Discount on bonds purchased - - _ _
Debt retirement (Note 5) - - - -
Transfer of bond liability - - - - Expended for plant facilities (including $3,350,552 charged
to current funds) - - - -
Insurance proceeds - - - -
State appropriations - - - -
Other 2 I 1 1
Total revenue and other
additions 44,585,416 6,232,697 11,961,914 11,172,679
Expenditures and other deductions:
Current funds expenditures 44,634,354 6,807,600 10,429,787 11,099,975
Loan cancellations - - - -
Refunded to grantors - - - -
Administrative expenditures _ - - -
Provision for bad debts - - - - Expended for plant facilities
(Including $425,137 non-capital
expenditures) - - - "
Debt retirement (Note 5) _ - - -
Interest on debt - - - -
Transfer of bond liability - - - "
Bond indenture debt (Note 5) _ _ - -
Other (Note 5) 2 I 1 -
Total expenditures and other
deductions 44,634,354 6,807,600 10,429,787 11,099,975
See notes to financial statements 21
Loan Endowment and Funds Similar Funds
Unexpended
Plant Funds
Renewals and Replacements
Retirement of Indebtedness
Investment In Plant
121,956
12,471
635
112,348
12,032
202,809
101,663
381,734 680,837
52,732
8,108,454
1,370,506
1,154,934
456,414
297,462
40,375
55,694 13,696
4,732,503
9,518,295
583
310,085 628,566
78,543
11,561
56,742
7,967,002
259,442
203,392
6,913,931
64,293
11,444,512
17,485,297
4,382,733
658,854
9,518,295 2,113,085
1,269,593
4,732,503 8,108,454
109,765
4,382,733
658,854
12,900,973
12,840,957
22
MONTANA STATE UNIVERSITY STATEMENT OF CHANGES IN FUND BALANCES (Continued) Year Ended June 30, 1985
Current Funds
Unrestricted
General Auxiliary
Operating Designated Enterprises Restricted
Transfer among funds - additions
(deductions) :
Mandatory:
All fund groups $ - $ - $ (1,277,200)
Voluntary:
General operating (9,706)
Designated - (48,784)
Auxiliary enterprises-net - 29,345 (235,016)
Repair and replacement-net - -
Retirement of debt-net - - 100,776
Total transfers (9,706) (19,439) (1,411,440)
See notes to financial statements
23
Net increase (decrease) in
fund balance (58,644) (594,342) 120,687 72,704
Fund balances at beginning of
year as previously reported (2,992,186)' 555,176 1,209,917 467,911
Adjustments: (Note 1 & 7)
Prior year revenues (17,341) 20,547 (964) 9,329
Prior year expenditures (740) (96,453) (38,259) (67,835)
Compensated absences payable (138,054) (8,351) (24,121) (7,417)
Other - (10,946) 2 (69,163)
Total adjustments (156,135) (95,203) (63,344) (135,086)
Fund balances at beginning of
year as adjusted (3,148,321) 459,973 1,146,573 332,825
Fund balances at end of year $(3,206,965) S (134,369) $ 1,267,260 $ 405,529
Plant Funds
Loan Endowment and Renewals and Retirement of Investment
Funds Similar Funds Unexpended Replacements Indebtedness in Plant
$(1,782,900) $ - $ 3,060,100 $
9,706 48,784
|
- |
||
|
149 |
,677 |
|
|
7 |
^695 |
,791 |
205,671 177,259 (177,259) 171,433 457,783 (729,992) (1,385,424) 486,195 2,339,814
203,392 1,145,774 (108,366) 883,353 4,644,340
370,492 585,463 647,579 4,043,968 101,290,337
131,491 - 91,356 - (260)
490 - (129,608) (18,740)
554,420
131,981 ^ (38,252) (18,740) (260) 554,420
7,827,772 370,492 547,211 628,839 4,043,708 101,844,757
$7,977,449 $ 573.884 $ 1,692,985 $ 520,473 $ 4,927,061 $106,489,097
24
MONTANA STATE UNIVERSITY STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES AND OTHER CHANGES
Year Ended June 30, 1985
Unrestricted
Revenues :
Tuition and fees Federal appropriations State appropriations Federal grants and contracts State grants and contracts Private gifts, grants and contracts Endowment income Other sources Sales and services Total revenue
Expenditures and mandatory transfers: Education and general Instruction Research Public service Academic support Student services Institutional support Operation and maintenance of plant Scholarships and fellowships Other
Education and general expenditures
Designated and auxiliary enterprises: Expenditures Mandatory transfers
Total designated and auxiliary
Total expenditures and mandatory transfers
Other transfers and additions (deductions):
Excess of restricted receipts over transfers to revenue Transfers
Net increase (decrease) in fund balance
General Operating
$ 8,703,238
50,000
34,097,964
856,158
70,300
225,608
441,402
140,746
44,585,416
24,940,895
577,274
9,955
5,754,897
4,087,884
3,463,924
4,943,870
855,655
44,634,354
44,634,354
(9,706)
Designated
6,232,697 6,232,697
6,807,600
6,807,600
6,807,600
(19,439)
$ (58,644) $ (594,342)
See notes to financial statements 25
Auxiliary Enterprises
Restricted
Total
11,961,914 11,961,914
21,389
8,362,135
1,063,315
1,560,447
592
92,097
11,099,975
8,724,627
50,000
34,097,964
9,218,293
1,133,615
1,786,055
441,994
232,843
18,194,611
73,880,002
639,423
3,915,658
1,101,748
92,098
218,214
437,670
17,796
4,507,731
169,637
11,099,975
25,580,318 4,492,932 1,111,703 5,846,995 4,306,098 3,901,594 4,961,666 5,363,386 169,637
55,734,329
10,429,787
1,277,200
11,706,987
11,706,987
11,099,975
17,237,387
1,277,200
18,514,587
74,248,916
(134,240)
72,704
72,704 (163,385)
120,687
72,704
$ (459,595)
26
MONTANA STATE UNIVERSITY
NOTES TO FINANCIAL STATEMENTS
June 30, 1985
1 . Summary of significant accounting policies
Related parties:
Montana State University, Montana Agricultural Experiment Station and Montana Cooperative Extension Service are related through common management and control; however, they are separate and distinct agencies and they receive separate federal and state appropriations. These agencies have certain related-party transactions, including sharing office facilities, management, accounting and office ser- vices. The accounts of Montana Agricultural Experiment Station and Montana Cooperative Extension Service have not been included in the accompanying financial statements.
Financial Statements:
The accompanying financial statements have been prepared on the ac- crual basis in accordance with generally accepted accounting princi- ples for colleges and universities except as noted hereafter.
The statement of current funds revenues, expenditures and other changes is a statement of financial activities of current funds related to the current reporting period and does not purport to present the re- sults of operations or the net income or loss for the period.
Fund balance for unrestricted general operating funds includes $50,925 allocated for encumbrances and $20,520 prior period revenue overage netted to the unfunded liability of $3,278,410 for compen- sated absences payable. Fund balance for unrestricted designated funds includes positive fund balances of $111,005 netted to the unfunded liability of $245,374 for compensated absences payable.
Per recommendation of the Legislative Auditor's Office and concur- rence by the Financial Aid Office at the University, $69,163 of restricted current funds scholarship were reclassified to agency funds because the awards recipients are selected by parties outside the institution.
Fund accounting:
The accounts of the University are maintained in accordance with the principles of fund accounting wherein resources are classified for accounting purposes into funds that are identified by the limita- tions and restrictions placed upon their use. Separate accounts are maintained for each fund; however, accounts with common characteris- tics are combined into fund groups and reflected as such in the accompanying financial statements. The common characteristics of the funds contained in the various fund groups are as follows:
Current funds :
The current funds group includes economic resources expendable in performing the primary objectives of the University, i.e.,
27
MONTANA STATE UNIVERSITY
NOTES TO FINANCIAL STATEMENTS
June 30, 1985
1. Summary of significant accounting policies (continued)
Fund accounting (continued) :
Current funds (continued) :
Instruction, Research and Public Service. The current funds group has two basic distinct sub-groups; unrestricted funds which have no expenditure restrictions, and restricted funds which have expenditure restrictions. Unrestricted current funds are comprised of the following:
General Operating - utilized for general operations in performing the primary objectives of the University.
Designated - utilized for educational related service activities; these funds are separately classified in order to acciunulate and distinguish the costs of these special- ized service or function areas.
Auxiliary Enterprises - utilized in providing essential on- campus services primarily to students, faculty, and staff.
Student loan funds:
The resources from this group of funds are available to stu- dents to aid in financing their education. Funds for the loans are provided by private and University sources with the major- ity of the funds being provided by the Federal Government.
Endowment funds :
Endowment funds are funds with specific restrictions negating the expenditure of the principal. Generally, the principal is to be maintained in perpetuity and invested for the purpose of producing income.
Plant funds :
Plant funds are separated into four distinct self-balancing sub-group accounts:
Unexpended plant - utilized for acquisition of long-term institutional assets.
Renewal and replacement - utilized for long-term institu- tional asset maintenance.
Retirement of indebtedness - utilized for interest and debt retirement.
Investment in plant - denotes the cost of long-term in- stitutional assets and related liabilities.
28
MONTANA STATE UNIVERSITY
NOTES TO FINANCIAL STATEMENTS
June 30, 1985
Summary of significant accounting policies (continued)
Inventories:
Inventories, which consist mainly of food and operating supplies, are valued at cost (first-in, first-out method).
Investments :
Investments are carried at cost, which approximate market value at June 30, 1985.
Plant and equipment:
At June 30, 1985, investment in plant was adjusted $554,420 to reflect the totals in the property control subsidiaries. Livestock is carried at current market value with any difference from the prior year values recorded in the plant fund.
Depreciation:
No provision has been made for depreciation of plant facilities in accordance with generally accepted accounting principles for col- leges and universities.
Allowance for Bad Debts:
Except for Loan Funds, an allowance for bad debts has not been recorded. Losses from bad debts in other funds are recorded as adjustments to revenue in the year in which they are deemed uncol- lectable.
Allocated for encumbrances:
The University records encumbrances of general operating funds as expenditures in conformance with the Statewide Budgeting and Account- ing System.
At June 30, 1985, the University had encumbered $50,925 of general operating funds that are not included in expenditures in the accom- panying financial statements. The accrual basis of accounting provides that expenditures include only amounts associated with goods and services received and that liabilities include only the unpaid amounts associated with such transactions.
Unearned tuition and fees:
Summer school tuition and fee revenues are deferred at June 30 and recorded as revenue in the succeeding fiscal year.
29
MONTANA STATE UNIVERSITY
NOTES TO FINANCIAL STATEMENTS
June 30, 1985
2. Endowment funds - land grants
Montana State University benefits from two separate land grants. The first granted 90,000 acres for the University under provisions of the Morrill Act of 1862 and the second, under the Enabling Act of 1889, granted an additional 50,000 acres for the University.
Under provisions of both grants, income from the sale of land and land assets must be reinvested and constitutes, along with the bal- ance of the unsold land, a perpetual endowment fund. The State of Montana, State Land Board administers both grants and holds all assets .
Investment income from the first grant may be used for current operations of the University and is reported as current unrestricted funds revenue. Investment income from the second grant is currently pledged to the retirement of the December 1, 1984 - Series 1984 Indenture revenue bonds and is reported as revenue in the retirement of indebtedness fund.
3. Investments
Investments at June 30, 1985 consist of the following:
Cost
State of Montana short-term investment pool $ 3,833,712 U.S. Treasury securities, held by trustees 15,366,712 Federal securities 449 ,097
$ 19,649,521
The investments at June 30, 1985 are owned by the following funds :
Current funds :
Designated $ 225,255
Auxiliary enterprises 1,561,081
Restricted 640,950
Endowment funds 560,095
Plant funds :
Unexpended plant 11,322,330
Renewals and replacements 257,592
Retirement of indebtedness 4,653,623
Agency 428,595
$19,649,521
30
MONTANA STATE UNIVERSITY
NOTES TO FINANCIAL STATEMENTS
June 30, 1985
Boads payable
Bonds payable at June 30, 1985 include the following:
Indenture - December 1, 1984 - Series 1984 $ 8,850,000
Indenture - December 1, 1984 - Series B 1984 9,920,000
Indenture - December 15, 1984 - Series 1984 9 ,260,000
$28,030,000
The records and accounts of the University's revenue bonds are subject to an annual audit by a certified public accounting firm; copies of the report which provides complete descriptive details of each indenture are available upon request.
Bonds defeased, issued, and escrowed:
Defeasance of October 14, 1963 and April 12, 1971 Resolutions:
All bonds outstanding under the October 14, 1963 and April 12, 1971 Resolutions totaling $3,965,000 were defeased when funds from the sale of bonds issued under the December 15, 1984 Indenture, along with funds on hand were deposited in an irrevocable escrow account. This resulted in a gain. Obligations of the United States Government, calculated to be sufficient to provide for the payment of principal and interest on the October 14, 1963 and April 12, 1971 refunded bonds as they become due, were purchased and are held by the Escrow Agent. Other retirement of indebtedness deductions include $1,246,000 to defease the October 14, 1963 and April 12, 1971 Resolutions and issue the December 1, 1984 Series B and December 15, 1984 Indentures.
Issuance of December 1, 1984 Indenture Series B 1984:
An original issue of $9,920,000 dated December 1, 1984 consisting of fully registered bonds without coupons for the construction reno- vation, improvement, furnishing, and equipping of new and existing Student Housing System Facilities at and for the University.
Issuance of December 15, 1984 Indenture:
An original issue of $9,260,000 dated December 15, 1984, consisting of fully registered bonds without coupons to defease all bonds out- standing under the October 14, 1963 and April 12, 1971 Resolutions, to escrow certain General Obligation Bonds under the responsibility of the University, and to finance the construction renovation, im- provement, and equipping of certain Health and Physical Education Facilities at and for the University.
Escrowed General Obligation Bonds:
General Obligation Refunding Bonds, Series 1983A, dated August 1, 1983, in the amount of $4,945,000 were placed in escrow by utilizing the proceeds of the December 15, 1985 Indenture - Series 1984.
31
MO^rrANA state university
NOTES TO FINANCIAL STATEMENTS June 30, 1985
6 . Retirement plans
All of the University's full-time employees are members of the Montana Public Employees Retirement System or Montana Teacher's Retirement System. The University's contributions to these plans, which were determined to be actuarially sound by the most recent biennial valuations, totaled $2,591,631 for the year ended June 30, 1985.
7 . Commitments and contingencies
Compensated absences payable:
As of December 31 of each year, employees can accumulate vacation leave up to twice the number of leave days earned annually and sick leave can be accumulated without limitation. Upon termination, the employee is paid the accumulated vacation leave and 25% of the accumulated sick leave. Vacation and sick leave payments are recorded as an expenditure at the time they are paid to the employee.
Due to system limitations, the change in the compensated absences payable amount is stated as an adjustment and not identified with the fiscal period earned or utilized by the employee.
Capital projects:
As of June 30, 1985, the University has initiated construction on the following major capital projects:
Amount .Amount Exp .
Project Authorized as of 6/30/85
Student union bldg. addition/renovation $ 5,394,400 $ 5,362,318
Physical education facilities addition 2,500,000 2,475,294
University apartments '84 4,200,000 3,073,272
Animal lab facility 2,260,000 2,171,901
Visual communications building 4,598,000 4,589,911
On campus living - fire detection 620,000 568,710
Controlled environmental facility 5,302,000 612,693
Engineering/physical science complex 350,000 171,663
Hedges food system exhaust 197,736 151,974
1984B On Campus Living Construction 8,137,100 10,150
1984 P.E. Indenture Construction 1,400,000 8,896
$34,959,236 $19,196,782
Leases :
The University reserves the right to limit the amount of expenditures associated with lease contracts without penalty, when in the sole judgment of the University annual funding or program changes necessi- tate. Capital lease agreements for various purposes and time periods totaling $104,893 at June 30, 1985 are not added to net investment in plant and not deemed to be material to the overall consolidated financial position of the University.
32
MONTANA STATE UNIVERSITY
BALANCE SHEETS Year Ended June 30, 1984
ASSETS
CURRENT FUNDS: Unrestricted:
General operating: Cash
Accounts receivable Due from other fund groups
$ 3,337,958
727,650
1,455,327
Total general operating
Designated: Cash
Accounts receivable Due from other fund groups Investments (Note 3) Inventories
Total designated
Auxiliary enterprises: Cash
Accounts receivable Due from other fund groups Investments (Note 3) Inventories
5.520,935
105,250 243,936 995,232 296,071 522,160 2,162,649
328,551
47,473
179,934
1,378,098
533,037
Total auxiliary enterprises
Total unrestricted
2,467,093 10,150,677
Restricted: Cash
Accounts receivable Due from other fund groups Investments (Note 3)
Total restricted Total current funds
314,049
1,164,314
18,449
459,764
1,956,57"6
$12,107,253
STUDExNT LOAN FUNDS: Cash Loans receivable - less allowance for
bad debts $314,206 Accounts receivable Due from other fund groups
Total student loan funds
See notes to financial statements 33
$ 71,048
7,540,951
87,887
180
$ 7,70Q,06"6
■ LIABILITIES ANT) FUND BALANCES
CURRENT FUNDS: Unrestricted:
General operating:
Accrued payroll $ 2,712,143
Accounts payable and accrued liabilities 750,374
Due to other fund groups 1,356,223
Deposits 43,112
Deferred revenue 510,913
Compensated absences payable (Note 7) 3,140,356
Fund balance (Note 1) (2,992,186)
Total general operating 5,520,935
Designated:
Accrued payroll 221,994
Accounts payable and accrued liabilities 377,656
Due to other fund groups 781,746
Compensated absences payable (Note 7) 226,077
Fund balance 555 , 176
Total designated 2,162,649
Auxiliary enterprises:
Accrued payroll 264,399
Accounts payable and accrued liabilities 89,772
Deposits 306,352
Deferred revenue 59,459
Due to other fund groups 260,002
Compensated absences payable (Note 7) 277,192
Fund balance - 1,209,917
Total auxiliary enterprises 2,467 ,093
Total unrestricted 10,150,677
Restricted:
Accrued payroll 230,893
Accounts payable and accrued liabilities 74,613
Due to other fund groups 937,853
Compensated absences payable (Note 7) 245,306
Fund balance 467 ,911
Total restricted 1,956,576
Total current funds $12,107,253
STUDENT LOAN FUNDS:
Accounts payable and accrued liabilities $ 4,275
Fund balances:
U.S. Government grants refundable $6,845,403 University funds 760,600
Private gifts 89,788
7,695,791
Total student loan funds $ 7,700,066
34
MONTANA STATE UNIVERSITY
BALANCE SHEETS Year Ended June 30, 1984
ASSETS
ENDOWMENT FUNDS:
Cash $ 3,189
Investments (Note 3) 367,303
Total endowment funds $ 370,492
See notes to financial statements
35
PLANT FUNDS: Unexpended :
Cash $ 421,361
Accounts receivable 129,922
Due from other fund groups 4,918
Investments (Note 3) 3,905,217
Construction advances to state 201 ,209
Total unexpended 4,662,627
Renewals and replacements:
Cash 144,413
Accounts receivable 27,472
Investments (Note 3) 493,402
Total renewals and replacements 665 ,287
Retirement of indebtedness:
Cash 614,846
Accounts receivable 84,-376
Investments (Note 3) 3,349,054
Total retirement of indebtedness 4,048,276
Investment in plant:
Land and land improvements 2,394,226
Buildings (including construction in progress) 76,373,148
Equipment 36,857,556
Livestock 25 ,400
Total investment in plant 115 ,650 ,330
Total plant funds $125,026,520
AGENCY FUNDS:
Cash $ 225,770
Accounts receivable 135,709
Due from other fund groups 716,562
Investments (Note 3) 412,315
Total agency funds $ 1,490,356
LIABILITIES AND FUND BALANCES
ENDOWMENT FUNDS: Fund balance
$ 370,492
Total endowment funds
PLANT FUNDS: Unexpended :
Accounts payable and accrued expenditures Due to other fund groups Bonds payable (Note 4) Fund balance
Total unexpended
Renewals and replacements : Due to other fund groups Fund balance
Total renewals and replacements
Retirement of indebtedness: Due to other fund groups Fund balance
Total retirement of indebtedness
Investment in plant: Bonds payable (Note 4) Other payables Net investment in plant
Total investment in plant
Total plant funds
AGENCY FUNDS: Accrued payroll
Accounts payable and accrued liabilities Compensated absences payable (Note 7) Deposits held in custody for others
Total agency funds
370,492
7,118
12,760
4,057,286
585,463
4,662,627
17,708 647,579
665,287
4,308 4,043,968
4,048,276
14,302,714
57,279
101,290,337
115,650,330
$125,026,520
$
14,507 591,955
11,765 872,129
$ 1,490,356
36
MONTANA STATE UNIVERSITY STATEMENT OF CHANGES IN FUND BALANCES Year Ended June 30, 1984
Current Funds
Unrestricted
General Auxiliary
Operating Designated Enterprises Restricted
Revenue and other additions: Current funds revenue Federal capital contribution University capital contribution Private capital contribution Interest on loans receivable Bond indenture proceeds (Note 5) Gain on bond defeasance (Note 5) Student fees Investment income
Endowment income & grants (Note 2) Discount on bonds purchased Debt retirement (incl. defeasance) Transfer of bond liability Expended for plant facilities (including $3,425,097 charged to current funds) G.O. bond refunding (Note 5) State appropriations Other
Total revenue and other additions
Expenditures and other deductions: Current funds expenditures Loan cancellations Refunded to grantors Administrative expenditures Provision for bad debts Expended for plant facilities (Including $817,706 non-capital
expenditures) Debt retirement (incl. defeasance) Interest on debt Transfer of bond liability Bond indenture debt (Note 5) Other (Note 5)
Total expenditures and other deductions
$43,288,774 $ 6,248,194 $11,931,510 $10,783,571
43.288,774 6,248,194 11,931,510 10,783,571
43,358,513 6,494,516 10,050,700 10,516,676
43,358,513
6,494,516 10,050,700 10,516,676
See notes to financial statements
37
|
Endowment and Similar Funds |
Plant |
Funds |
|||
|
Loan Funds |
Unexpended |
Renewals and Replacements |
Retirement of Indebtedness |
Investment In Plant |
|
|
164,443 31,082 |
$ |
$ |
$ |
$ |
1 1 1 ■to- |
118,122
80,100 70,000
|
- |
- |
- |
- |
4,800,000 |
- |
|
- |
- |
- |
- |
3,426,240 |
- |
|
- |
- |
371,587 |
- |
1,537,246 |
- |
|
- |
- |
36,760 |
15,105 |
669,030 |
- |
|
- |
- |
- |
- |
491,478 |
- |
|
- |
- |
- |
- |
138,346 |
- |
|
- |
- |
- |
- |
- |
12,449,392 |
|
- |
- |
142,714 |
~ |
" |
~ |
|
. |
. |
^ |
^ |
6,370,834 |
|
|
- |
- |
- |
- |
- |
1,150,000 |
|
- |
- |
1,843,267 |
- |
- |
- |
|
1,725 81,825 |
171,815 2,636,143 |
7,148 22,253 |
48,543 11,110,883 |
- |
|
|
313,647 |
19,970,226 |
||||
|
1 69,649 |
- |
- |
- |
- |
- |
|
968 |
- |
- |
- |
■ |
- |
|
53,653 |
- |
- |
- |
- |
- |
|
20,838 |
- |
- |
- |
- |
- |
3,238,764 524,679
12,449,392 1,068,936
581,993
142,714 4,800,000
145,108 2 3,238,764 524,679 14,100,321 4,942,714
38
MONTANA STATE UNIVERSITY
STATEMENT OF CHANGES IN FUND BALANCES (Continued)
Year Ended June 30, 1984
Current Funds
Unrestricted
General Auxiliary
Operating Designated Enterprises Restricted
Transfer among funds - additions
(deductions) :
Mandatory:
All fund groups $ -$ -$ -$-
Voluntary:
General operating (10,093)
Auxiliary enterprises-net - 21,611 (2,970,462)
Repair and replacement - - - -
Retirement of debt-net ____^ 2 I I 1
Total transfers (10,093) 21,611 (2,970,462) 2
See notes to financial statements
39
Net increase (decrease) in
fund balance (79,832) (224,711) (1,089,652) 266,895
Fund balances at beginning of
year as previously reported 354,257 989,583 2,621,652 681,124
Adjustments: (Note 1 Se 7)
Prior year revenues 24,722 10,834 243 (75,116)
Prior year expenditures (150,977) 5,547 (45,134) (154,686)
Compensated absences payable (3,140,356) (226,077) (277,192) (245,306)
Other 2 2 I (5,000)
Total adjustments (3,266,611) (209,696) (322,083) (480,108)
Fund balances at beginning of
year as adjusted (2,912,354) 779,887 2,299,569 201,016
Fund balances at end of year $(2,992,186) $ 555,176 $ 1,209,917 $ 467,911
Plant Funds
Loan Endowment and Renewals and Retirement of Investment
Funds Similar Funds Unexpended Replacements Indebtedness in Plant
10,093 22,639 521,664 2,404,548 178,867 (178,867) 196,236 557,691 (753,927) 397,742 900,488 1,660,714
168,539 81,825 (204,879) 398,062 (1,328,724) 15,027,512
7,527,252 290,828 3,171,241 254,773 4,995,492 85,712,043
(2,161) (2,375,122) (50) 377,700
(5,777) (5,206) (500)
-_ - -_ -_ -_ 550,782
-_ (2,16T) (2,380,899) (5,256) 377,200 550,782
7,527,252 288,667 790,342 249,517 5,372,692 86,262,825 $7,695,791 $ 370,492 $ 585,463 $ 647,579 $ 4,043,968 $101,290,337
40
MONTANA STATE UNIVERSITY STATEMENT OE CURRENT FUNDS REVENUES, EXPENDITURES AND OTHER CHANGES
Year Ended June 30, 1984
Unrestricted
General Operating
Designated
Revenues :
Tuition and fees Federal appropriations State appropriations Federal grants and contracts State grants and contracts Private gifts , grants and contracts Endowment income Other sources Sales and services Total revenue
$ 8,386,014
50,000
33,176,752
789,746
56,781
239,795
421,240
168,446
43,288,774
6,248,194 6,248,194
Expenditures and mandatory transfers: Education and general Instruction Research Public service Academic support Student services Institutional support Operation and maintenance of plant Scholarships and fellowships Other
Education and general expenditures
Designated and auxiliary enterprises: Expenditures Mandatory transfers
Total designated and auxiliary
Total expenditures and mandatory transfers
Other transfers and additions (deductions):
Excess of restricted receipts over transfers to revenue Transfers
Net increase (decrease) in fund balance
24,600,899
577,255
9,637
5,490,831
3,918,496
3,316,390
4,702,712
742,293
43,358,513
43,358,513
(10,093)
6,494,516 6,494,516 6,494,516
21,611
$ (79,832) $ (224,711)
See notes to financial statements 41
Auxiliary Enterprises
Restricted
Total
11,931,510 11,931,510
33,583
7,825,341
776,025
1,798,989
3,504
79,234
10,516,676
8,419,597
50,000
33,176,752
8,615,087
832,806
2,038,784
424,744
247,680
18,179,704
71,985,154
767,280
3,496,956
717,563
74,418
450,294
647,931
8,829
4,237,729
115,676
10,516,676
25,368,179 4,074,211 727,200 5,565,249 4,368,790 3,964,321 4,711,541 4,980,022 115,676
53,875,189
10,050,700 10,050,700" 10,050,700
10,516,676
16,545,216
16,545,216
70,420,405
(2,970,462) $ (1,089,652)
266,895
$ 266,895
266,895
(2,958,944)
$ (1,127,300)
42
MONTANA STATE UNIVERSITY
NOTES TO FINANCIAL STATEMENTS
June 30, 1984
1 . Summary of significant accounting policies
Related parties:
Montana State University, Montana Agricultural Experiment Station and Montana Cooperative Extension Service are related through conunon management and control; however, they are separate and distinct agencies and they receive separate federal and state appropriations. These agencies have certain related-party transactions, including sharing office facilities, management, accounting and office ser- vices. The accounts of Montana Agricultural Experiment Station and Montana Cooperative Extension Service have not been included in the accompanying financial statements.
Financial Statements:
The accompanying financial statements have been prepared on the ac- crual basis in accordance with generally accepted accounting princi- ples for colleges and universities except as noted hereafter.
The statement of current funds revenues, expenditures and other changes is a statement of financial activities of current funds re- lated to the current reporting period and does not purport to pre- sent the results of operations or the net income or loss for the period.
Fund balance for unrestricted general operating funds includes $140,806 allocated for encumbrances and $7,364 prior period revenue overage netted to the unfunded liability of $3,140,356 for compen- sated absences payable.
Fund accounting:
The accounts of the University are maintained in accordance with the principles of fund accounting wherein resources are classified for accounting purposes into funds that are identified by the limita- tions and restrictions placed upon their use. Separate accounts are maintained for each fund; however, accounts with common characteris- tics are combined into fund groups and reflected as such in the accompanying financial statements. The common characteristics of the funds contained in the various fund groups are as follows:
Current funds :
The current funds group includes economic resources expendable in performing the primary objectives of the University, i.e., Instruction, Research and Public Service. The current funds group has two basic distinct sub-groups; unrestricted funds which have no expenditure restrictions, and restricted funds which have expenditure restrictions. Unrestricted current funds are comprised of the following:
43
MONTANA STATE UNIVERSITY
NOTES TO FINANCIAL STATEMENTS
June 30, 1984
1. Summary of significant accounting policies (continued)
Fund accounting (continued):
Current funds (continued):
General Operating - utilized for general operations in performing the primary objectives of the University.
Designated - utilized for educational related service activities; these funds are separately classified in order to accumulate and distinguish the costs of these special- ized service or function areas.
Auxiliary Enterprises - utilized in providing essential on-campus services primarily to students, faculty, and staff.
Student loan funds:
The resources from this group of funds are available to stu- dents to aid in financing their education. Funds for the loans are provided by private and University sources with the major- ity of the funds being provided by the Federal Government.
Endowment funds:
Endowment funds are funds with specific restrictions negating the expenditure of the principal. Generally, the principal is to be maintained in perpetuity and invested for the purpose of producing income.
Plant funds:
Plant funds are separated into four distinct self-balancing sub-group accounts:
Unexpended plant - utilized for acquisition of long-term institutional assets.
Renewal and replacement - utilized for long-term institu- tional asset maintenance.
Retirement of indebtedness - utilized for interest and debt retirement.
Investment in plant - denotes the cost of long-term in- stitutional assets and related liabilities.
44
MONTANA STATE UNIVERSITY
NOTES TO FINANCIAL STATEMENTS
June 30, 1984
1. Summary of significant accounting policies (continued)
Inventories :
Inventories, which consist mainly of food and operating supplies, are valued at cost (first-in, first-out method).
Investments:
Investments are carried at cost, which approximate market value at June 30, 1984.
Plant and equipment:
At June 30, 1984, investment in plant was adjusted $550,782 to reflect the totals in the property control subsidiaries. Livestock is carried at current market value with any difference from the prior year values recorded in the plant fund.
Depreciation:
No provision has been made for depreciation of plant facilities in accordance with generally accepted accounting principles for col- leges and universities.
Allowance for Bad Debts:
Except for Loan Funds, an allowance for bad debts has not been
recorded. Losses from bad debts in other funds are recorded as
adjustments to revenue in the year in which they are deemed uncol- lectable.
Allocated for encumbrances:
The University records encumbrances of general operating funds as expenditures in conformance with the Statewide Budgeting and Account- ing System.
At June 30, 1984, the University had encumbered $140,806 of general operating funds that are not included in expenditures in the accom- panying financial statements. The accrual basis of accounting provides that expenditures include only amounts associated with goods and services received and that liabilities include only the unpaid amounts associated with such transactions.
Unearned tuition and fees:
Summer school tuition and fee revenues are deferred at June 30 and recorded as revenue in the succeeding fiscal year.
45
MONTANA STATE UNIVERSITY
NOTES TO FINANCIAL STATEMENTS
June 30, 1984
Eadowment funds - land grants
Montana State University benefits from two separate land grants. The first granted 90,000 acres for the University under provisions of the Morrill Act of 1862 and the second, under the Enabling Act of 1889, granted an additional 50,000 acres for the University.
Under provisions of both grants, income from the sale of land and land assets must be reinvested and constitutes, along with the bal- ance of the unsold land, a perpetual endowment fund. The State of Montana, State Land Board administers both grants and holds all assets.
Investment income from the first grant may be used for current operations of the University and is reported as current unrestricted funds revenue. Investment income from the second grant is currently pledged to the retirement of the April 15, 1984 indenture revenue bonds and is reported as revenue in the retirement of indebtedness fund.
Investments
Investments at June 30, 1984 consist of the following:
Cost
State of Montana short-term investment pool $ 3,994,157
U.S. Treasury securities, held by trustees 6,317,059
Federal securities 350,008
$10,661,224
The investments at June 30, 1984 are owned by the following funds :
Current funds:
Designated $ 296,071
Auxiliary enterprises 1,378,098
Restricted 459,764
Endowment funds 367,303
Plant funds:
Unexpended plant 3,905,217
Renewals and replacements 493,402
Retirement of indebtedness 3,349,054
Agency 412,315
$10,661,224
46
MONTANA STATE UNIVERSITY
NOTES TO FINANCIAL STATEMENTS
June 30, 1984
4. Bonds payable
Bonds payable at June 30, 1984 include the following:
Resolution - October 14, 1963 $ 2,715,000
Resolution - April 12, 1971 1,445,000
Montana Long Range Building Program - March 1, 1980 5,200,000 Indenture - April 15, 1984 9,000,000
$18,360,000
The records and accounts of the University's revenue bonds are
subject to an annual audit by a certified public accounting firm; copies
of the report are available upon request.
5. Bond defeasance, issuance, and refunding:
Defeasance of July 1, 1954 Indenture:
All bonds outstanding, $11 ,069 ,000, under the July 1, 1954 Inden- ture were defeased when funds, $4,800,000, from the sale of bonds issued under the April 15, 1984 Indenture, along with funds on hand, $2,842,760, were deposited in an irrevocable escrow account resulting in a gain on defeasance of $3,426,240. Obligations of the United States Government, calculated to be sufficient to provide for the payment of principal and interest on the July 1, 1954 refunded Bonds as they became due, were purchased and are held by the Escrow Agent. Other retirement of indebtedness deductions include $556,930 to defease the July 1, 1954 Indenture and issue the April 15, 1984 Indenture.
Issuance of April 15, 1984 Indenture:
An original issue of $9,000,000, consisting of fully registered bonds without coupons; $4,800,000 with the purpose of defeasing all bonds outstanding under the July 1, 1954 Indenture and $4,200,000 for con- struction of approximately 90 additional units of married student housing.
G.O. Bond refunding:
Outstanding general obligation long range building program bonds, Series 1980, dated March 1, 1980, issued by the State of Montana in the amount of $6,350,000 for the construction of additions to the Physical Education Complex and Student Union Building at Montana State University, were refunded by issuance of general obligation refunding bonds. Series 1983A, dated August 1, 1983, in the amount of $5,200,000; resulting in a $1,150,000 lowering of the debt level associated with Investment in Plant.
47
MONTANA STATE UNIVERSITY NOTES TO FINANCIAL STATEMENTS June 30, 1984
Retirement plans
All of the University's full-time employees are members of the Montana Public Employees Retirement System or Montana Teacher's Retirement System. The University's contributions to these plans, which were determined to be actuarially sound by the most recent biennial valuations, totaled $2,471,762 for the year ended June 30, 1984.
Commitments and contingencies
Compensated absences payable:
As of December 31 of each year, employees can accumulate vacation leave up to twice the number of leave days earned annually and sick leave can be accumulated without limitation. Upon termination, the employee is paid the accumulated vacation leave and 25% of the accumulated sick leave. Vacation and sick leave payments are recorded as an expenditure at the time they are paid to the employee.
Previous financial reports have disclosed the leave liability only as a footnote. In accordance with generally accepted accounting principles the liability as of June 30, 1984 has been recorded for the first time as a liability of the applicable fund group.
Capital projects:
As of June 30, 1984, the University has initiated construction on the following major capital projects:
Amount Amount Exp . Project Authorized as of 6/30/84
Student union bldg. addition/ renovation Physical education facilities addition University apartments '84 Animal lab facility Visual communications building On campus living - fire detection Controlled environmental facility Engineering/physical science complex Hedges food system exhaust
$ 5,360,400
2,500,000
4,200,000
2,260,000
4,598,000
620,000
5,302,000
350,000
100,000
$ 5,320,586
2,419,904
142,714
2,006,193
4,529,999
496,779
152,269
67,487
76,712
$25,290,400 $15,212,643
Leases :
The University reserves the right to limit the amount of expenditures associated with lease contracts without penalty, when in the sole judgment of the University annual funding or program changes necessi- tate. Capital lease agreements for various purposes and time periods totaling $30,193 at June 30, 1984 are not added to net investment in plant and not deemed to be material to the overall consolidated financial position of the University.
48
MONTANA STATE UNIVERSITY
SCHEDULE OF GRANT EXPENDITURES AND DISBURSEMENTS
FISCAL YEAR ENDED JUNE 30, 1985
Expenditures Contract Number and Disbursements
FEDERAL GRANTS
Department of Education
G008402119 $ 148,023
G008302783 32,035
G008401682 161,130
G008440245 5,806
G008302783 62,653
00750V1058 8,859
Altans 9,353
G00831153 852
G008004366 3,871
G008101025 43,150
Pell 3,799,391
College Work Study 673,952
NDSL Disbursements 1,214,552
Administrative and Collection Costs 15,057
SEOG 266.956
Department of Interior
IPA $ 5,417
141600091516#8 28,764
CX-1200-2-B035 61
PX157032107 ' 1,964
MT950-CTZ-9 2,993
141600091516#7 24,572
14-10-2-920-13 263
14-06-600-614A 2,598
14-16-0006-84-92 3,061
CX-1200-4-A038 8,448
14 16 0009 1516 4,825
Picton 3,485
1416000685912 2,552
CX 1200 5 A051 266
14-16-0009-1516 _ 2,460
Beattie ' 291
C50-C-1420-5591 34,267
49
Expenditures Contract Number and Disbursements
Health and Human Services
5R23NS17974-123 $ 28,069
7R01CA39611-01 51,925
90AD0012/01 24,522
1R01AM3351001 65,231
1R01GM3182401 57,362
2507RRO710OO6 32,540
5R01AI1794803 11,565 2503RR0309104 3,368
2A11NU00239-09 11,595
5R01GM3182403 18,210
1R01CA35905-01 74,775
12 23 ESO3254-01 30,453
5K04ES00063-3&4 11,970
1D10NU2807801 28,724
5R23-ES03254-02 18,304 2507RRD7100-07 9,045
1P40RR0224901 131,169 1R01HD1744401 7,903
5R01HD1744402 48,874 2ALL NU-00239-08 667
APH0031501 52,649
1 R01AI19089-01 76,526 5R01 ES02995-02 6,489
5G08LM03668-03 6,462
5K04AI00367123 37,653
5R01ES02995-03 70,002
1 506 RR08218-01 29,242
MIN Biomed Res ' 147,617
1506RR0821082 31,979
1506RR0821802 78,917
Nursing Loan Disbursements Collection Costs 87 ,084
Department of Agriculture
12-14-5001-42 $ 165,219
58-9AHZ-3-42 150,136
58-32U4-3-631 40,276 22-C-4-INT-70 5,299
Nielsen 2,750
22-C-3-INT-67 7,838
EED12170981712 5,616
Rust 22,820 22-C-2-INT-65 5,071
PNW-83-318 21,682
28-C2-204 11,190 58-9AHZ-2-687 5,424
50
Expenditures Contract Number and Disbursements
Department of Agriculture (cont.)
53-D398-3DE-3 $ 30,734
58-0401-4-00026 I9 953
22-C-3-INT-66 3 '353
22-C-3-INT-064
348
82CRSR21077 18 322
USDA 5C5 5*499
usDA ilioe
22-C-4-INT-68 39 932
7059230112 2*483
83CR5R2-2319 18*730
84 CR5R 22359 '270
53-0385-3-2685 24 554
530343400795 ' 4'897
530343300682 12*627
PX12002G015 3*788
BARDUS33580 4,'593
22-C-4-INT-69 '592
58519B11110 2 628
22-C-2-OMT 63 '424
58-32R6-3-202 2,622
58-9AHZ-3-724 3 [549
USDA SEA 4*884
84 CRCR 1 1481 33^024
82 CRSR 2 1006 82^169
579020261002A 13^849
USDA 22^937
USDA 12, '339
USDA - 8*878
USDA 9,279
USDA 71474
Sea Formula 84 36,034
Sea Formula 85 52,109
12-05-300-663 5.' 100
12-05-300-664 15^923
EFFM-1-6009 30,*252
12-05-300-0699 '559
12-05-300-567 5,244
EIPM-1-7022 4*093
12-05-300-A39 '498 Smith-Lever 2,014,378
Extension 408,628 Hatch 1,172,944
Regional 584,296
51
Expenditures Contract Number and Disbursements
Department of Defense N00014 84 K 0309 N0001484K0118 DAAG29-82-K-1027 AFOSR 80-0267 DAAG29 84 G 0032
Department of Energy
DEAC6581WP15430
5-11-DO-0116
DEAP1881FC23116
DEAT0780ID1281
4-BOOl-C
National Aeronautics and Space Administration
NAG-9-68
NAS 9 17346
NAS-9-16007
National Science Foundation SPE-8320677 CHE 8308398 CPE 8404337 CPE 8404063 CEE 8318476 INT 8414939 PCM 8410144 DMR-830946 INT 8211113 ATM843143 DMR 8401196 B5R 8506602 CHE 8119857 CPE 8200112 518 Priscu DMR 8205280 EAR 8305173 PRM 8215000 BSR 8315279 BSR 8500849 BNS 8408061 PCM 8208393 DMR 8403993 ATM 8209836 DMR 8205581 CPE 8401335 ■CBT 8305152 BSN 8308209 PRM 8011449 FY 81 Monts Monts
52
|
$ 122, |
,097 |
|
68, |
,720 |
|
15, |
,328 |
|
25, |
,987 |
|
124, |
,000 |
|
$ 17, |
,891 |
|
58, |
,572 |
|
227 |
|
|
10, |
,487 |
|
8, |
.154 |
|
$ 15, |
,008 |
|
3, |
,797 |
|
217 |
|
|
$ 7, |
,533 |
|
19, |
,394 |
|
10, |
,709 |
|
241 |
|
|
19, |
,755 |
|
500 |
|
|
71, |
,714 |
|
348, |
,351 |
|
4, |
,834 |
|
45, |
,411 |
|
51: |
,258 |
|
605 |
|
|
80, |
,786 |
|
9, |
,265 |
|
2, |
,043 |
|
36. |
,020 |
|
63, |
,282 |
|
18, |
,576 |
|
29, |
,222 |
|
1 |
|
|
12 |
,684 |
|
69, |
,805 |
|
45, |
,456 |
|
27, |
,863 |
|
160, |
,426 |
|
23, |
,259 |
|
37, |
,075 |
|
22. |
,574 |
|
57, |
,780 |
|
121, |
.121 |
|
25, |
,814 |
Expenditures Contract Number and Disbursements
Other Federal
Chapter 36, Title 38
5BA-1791-PMA-74
PO1401505
294 Stover
PO HO 100408-10
U of C WRPIAP 85
598AHZ2677CIMMY
84-130
PO4100650-10
DEFG2282PC50787
106-06
83-ABC-00095
RTAP 008
NCAA 84 ABC00173
CA20604
106-05
186-83-3019
PO100614-10
TVA 1131-130
TVA 1141-131
lA 21198 19 G
IC40309 84
PO 6014 9 5
IG-40645-84
PO-4100607-10
DACW4584M1357
NCA2-1R470-401
DEAI7985BP22256
4 BADNF5 1332
DAN1318A00404500
AID/D5ANXIIG0161
TV-39645A
Pesticides
W.R.R.C
Peavy
83/84/WRRC
14-08-0001-G917
14 08 0001 6 102
Environmental Protection Agency
X1149NNEX
U912138 01 0
CR811334-01
CR811334 02
CR80724004
CR81001502
CR0810955-01
CR811958 01-0
TOTAL FEDERAL GRANTS
53
|
$ 8, |
,490 |
|
6: |
,360 |
|
14 |
|
|
h, |
,113 |
|
Z, |
,355 |
|
5, |
,192 |
|
6 |
|
|
L987 |
|
|
2.. |
,562 |
|
14. |
,041 |
|
60; |
,850 |
|
7 , |
,857 |
|
122: |
,060 |
|
13: |
,408 |
|
1; |
,312 |
|
32, |
,932 |
|
8, |
,798 |
|
2.. |
,322 |
|
9, |
,177 |
|
1, |
,477 |
|
30: |
,004 |
|
6: |
,095 |
|
1, |
,451 |
|
50: |
,200 |
|
4: |
,219 |
|
54 |
|
|
15: |
,462 |
|
100 |
|
|
600 |
|
|
283: |
,539 |
|
72: |
,671 |
|
2: |
,530 |
|
16: |
,630 |
|
$ |
390 |
|
46, |
,070 |
|
99: |
,729 |
|
4: |
,192 |
|
$ 1: |
,255 |
|
2: |
,576 |
|
128: |
,380 |
|
33: |
,344 |
|
23: |
,605 |
|
75, |
,094 |
|
14: |
,585 |
|
145 |
,655 |
|
$16,291: |
,669 |
Expenditures Contract Number and Disbursements
STATE GRANTS
Department of Agriculture
ST DEPT AG Bahn $ 5,320
Harris 2,238
84 MWRMC 28,706
85 MWRMC 450,092
86 MWRMC 1.188
Department of Commerce
0229 $ 8,218 85-02 11,251
Montana Dept. Commerce 59,046
McKinsey 6,650
Department of Health
DHF540335 12056 $ 10,902
Department of Highways
Jennings $ 119,606 Hyyppa 14,993
Gould 8,783
|
Department of Natural Resources and Conservation |
$ |
|
|
ED-MSU 672 |
9,783 |
|
|
ED-MCES 778 |
7,530 |
|
|
ED-MSU 775 |
279 |
|
|
WDG-84-5012 |
19,243 |
|
|
Nowlerski |
1,769 |
|
|
RAE-82-1017 |
45 |
|
|
WDG-84-5005 |
13,438 |
|
|
RAE-84-1040 |
16,871 |
|
|
RAE-83-1031 |
1,860 |
|
|
RAE-84-1043 |
17,457 |
|
|
PIG 395162 |
133 |
|
|
RAE-85-1054 |
397 |
|
|
RAE-84-1041 |
13,541 |
|
|
RAE-84-1042 |
16,556 |
|
|
Department of State Lands |
||
|
MT 950-CTO-30 |
$ |
576 |
|
Munshower |
16,830 |
|
|
Dollhopf |
26,507 |
|
|
Weaver |
80 |
|
|
Fish, Wildlife and Parks |
||
|
Gould |
$ |
10,450 |
|
Giddings |
4,967 |
|
|
Wood & Herr |
9,783 |
|
|
Mackie, S602 |
30,820 |
54
Expenditures Contract Number and Disbursements
Office of Public Instruction
84-5703-05-23-22 C616
84-5703-05-20-16
84-5703-05-24-21
84-5703-05-19-17 H321
84-5703=05-23-22 C617
84-5703-05-24-21 T853
84-5703-05-23-21
84-5703-05-23-16
85-OPI-H331
84-5703-05-24-21 T851
84-5703-05-25-22 R413
84-56-5703-060-TE
84-56-5703-064 5
T874
85-C6333
85-OPI-C628
85-OPI T868
85-OPI-D275
85-OPI-D376
85-OPI-C630
85-OPI-D294
85-OPI-T867
85-OPI-H332
85-0PI-R421
85-OPI-C629
85-T865
85-OPI-C626
85-OPI-D377
85-56-5703-200SD
Social and Rehabilitation Services SRS MCG-OAA-84 MCG 4 A 84 MCG R4B 84
Montana Arts Council
Jahnke
MAC 04-1764-4
MAC 05-1773-4
MAC 05-1834-5
MAC-09-1841-5
MAC-02-1866-5
Montana Historical Society
3083-7256-17B
Davis
|
$ |
580 |
|
1 |
,411 |
|
263 |
|
|
29 |
|
|
866 |
|
|
63 |
|
|
4 |
,416 |
|
176 |
|
|
14 |
,030 |
|
686 |
|
|
108 |
|
|
3 |
,395 |
|
615 |
|
|
2 |
.917 |
|
8 |
,196 |
|
2 |
,544 |
|
7 |
.113 |
|
23 |
,538 |
|
21 |
,060 |
|
2 |
,100 |
|
13: |
,538 |
|
23: |
,456 |
|
11: |
,672 |
|
6: |
,282 |
|
3: |
,817 |
|
1: |
,914 |
|
3: |
,148 |
|
21: |
,430 |
|
33: |
,040 |
|
$ 8. |
,350 |
|
26, |
.519 |
|
38, |
,352 |
|
$ 10, |
.771 |
|
32, |
,006 |
|
1, |
,594 |
|
2, |
,275 |
|
630 |
|
|
I, |
,500 |
|
$ |
425 |
|
3, |
,352 |
55
Expenditures Contract Number and Disbursements
Montana Committee for the Humanities
Coffin $ 5,700
8-1-50 3,857
9-1-22 10,043
8-2-5 2,475
9-1-49 3,700
8-1-40 9,052
Montana State Library
Alldredge $ 11,000
Environmental Quality Council
Sel Com Water MA $ 351
McKinsey 3,650
Other
RRD MAES 5501 $ 44,100
84-52-0018 35,847
Flathead Basin 12,989
State College Work Study 107,857
Private
Seed Growers' Association $ 20,912
Rosebud County Commissioners 30, 177
TOTAL STATE GRANTS $ 1,585,795
56
Expenditures Contract Number and Disbursements
OTHER GRANTS
Kain $ 7
DEAC 21 82 MC 19 8,573
CH2MHILL 22,436
BARD 013179 3,163
EAF 150
EAF 9,344
CIBA-GEIGY 781
EAF 250
Hill Task #841 496
Montana Heart Association 16,053
Various 34,856
Burlington Northern 25,000
Tetragenics 30
Various 5,225
EAF 3,550
District Feed Res. Co. 3,684
EAF 5,477
Johns Manville 200
School District #7 24,949
Custer 1,667
Northwest National Life 1,979
Various 3,943
Lilly 215
Hockett 2,480
Sherrick 2,452
Hof fman-Laroche 1,627
Gibson 4,088
Hyyppa 2,062
Welsh 521
Wells 1,475
Burlington 6,002
Material Handlin 500
No 33214 1965
Munshower 949
Fees 1946
Ritchey 3,329
Sheep Foundation 4,305
EAF 14,308
Distellers Feed 3,230
Tetragenics 9,221
PO//SR2545 2,821
EAF 376
EAF 52,541
ZINPRO XOEP 3,242
Triangle Irrigat. 113
National Student Exchange 1,948
Morrill 3,568
Miles Labs 4,242
GW Sugar Commit. 979
57
Expenditures Contract Number and Dibursements
OTHER GRANTS (cont.)
Seed Growers Association $ 839
Kellogg Foundation k ,(ill
Kellogg Foundation 1,325
Boone Crockett 1,966
Catlin 1.409
McKinesy 49,662
Utah 401
Various 2005
PO103956 7,108
Wiesner 1,442
Videon 4,750
Phillips 4,106
EAF 89,112
Kellogg Foundation 6,384
Tetragenics 4,715
PO A 13683 30,318
Decker No. 64 18,639
Chevron 4,071
Anderson 5,155
Lilly 38
Meyer Trust 15,710
IRBY 1,272
Eslick/Mille 40
PO NC 280810 59,032
ERF ^8,156
Wells
ERF
Knapp
Lockerman
Holen
McClure
Whitman
935
King, F. 4,757
Hanson/Amend 20
Tetracgenics 4,714
665
15930-GB2 11,002
Garcia 7,329
Hart 3,238
Power Process In 5,639
FR G&C149 8,379
Potash Corporation 13,487
363 39
12
TIF307740 771
718
Thiokol Corp. 7,357
C49550312 Nerco 22,416
Yellowstone Chemical 9,280
Scharen 2,442
American Malt Barley Association 3,210
PO 4 A205 1>525
645
RDI 22,363
Characklis 201
58
Expenditures Contract Number and Dibursements
587
OTHER GRANTS (cont.)
NRI End Foundation $
Various Companies 3 137
PRF 14460-G5 '309
Hill Task #840 18,407
Hockett 2 927
Bergman 19,873
Stallknecht 5 i^q
Ditterline 3 340
Anderson 9 5^0
Wiesner i 25^
Foley 933
Northwest Area Foundation 21 257
Weisner 4^696
Proctor/Gamble 5 353
Weiss 11,152
Stallkencht 3 ^60
Res. & Development Inst. 14 450
American Colloid Company 7,816
12-14-100-2303 ' 80
Welty 1,580
Stewart 766
Sanks 7,289
Butte Silver-Bow 288
Bergman, J. 4,686
Lang, T. 221
16612-AC-l 8,943
Upjohn 4,001
Miles Labs " 5,508
Jackson 508
Western Energy 368
City of Helena 9,941
RDI 6,068
RDI 21,047
RDI 31,830
26000186 Joint 1,243
AMB Association 18,684
Fay 51,821
Helena School District #3 2,429
GTA 410
Hockett 170
CID-MSU-WM-02 66,240
Walter 437
EAF 156
Davis 306
RDI 4,651
Res Corporation 514
Cascade Company 239
RDI 274
SG-187 2,282
RDI 72
59
Expenditures Contract Number and Disbursements
OTHER GRANTS (cont.)
Blue Cross $ 3,014
Hull 233
Norden Labs 4,540
Hilda Company 2,852
Colorado Serum Company 4,171
Montana Power 4,859
American Meat Inst. 2,804
Kain 9,625
E.I. Dupont HI
RDI 75,262
Tech Committee 11,242
I CARD A 11
Stockgrowers 223
Lilly Company 7,258
Sand Line 178
Western Energy 6,840
Mathre 12,292
American Home Economic Association 600
Various 33
P315 40100 35,002
Hovin 456
MAC0418595 20,010
Skogley 18
Res Corp. 8,324
GTR MT FDH 19,183
Worrest 2,220
American Cyanami 4,386
Myers 4,745
Gavlak/Baude 2,403
Allied Corp 487
Woodhull 310
Canadian Government 174
Montana Heart Association 1,365
Zortman 6,711
Robson 234
Kansas 8215 7,850
ERF 2,094
Brownson 2,124
Lewistown School District 98
RDI 1.260
Burlington Nothern 1,060
Anaconda 37
Upjohn 5,937
RDI 5,304
RDI 868
RM ELK FDN 1,301
CID MSU PCO-03 4,395
Colorado State University 3,843
Robson 19,101
RDI 965
60
Expenditures Contract Number and Disbursements
OTHER GRANTS (cont.)
Audubon Society $ 24
Bergman 264
MSU UM 01 17,478
GMF 5,507
Mott 83-269 20,067
Various 1,628
Mint Council 991
RDI 163
Exxon 13,676
POEA3221 Boeing 13,419
FDFDM University of Arizona 32,054
GH3-11678S 25
MSU 1,469
Idaho F&G 3,140
Tech Committee 9,322
OSP#3569 1,966
S 2,467
RDI 41,232
Welsh 33,336
PVT Companies 14,428
MSU-WIDII-01 4,956
Various 509
MSU 1985 2 4,686
Ath. Sch. Assoc. 40,226
MCH 9,250
RDI 5,366
POT PHOS INST 6.804
Cascade City ' 2,543
Worley 2
MCH 8-1-1 • 497
Montana Power Company 124,519
CSU SUB 7557 6,207
Western Energy 16,628
Western Energy 10,586
Hunt 146
Montana Heart Association 35
McKlnsey 5,142
Western Energy 11,693
Idaho 2,425
CID 7,658
Boeing GE0098 46
Faulkner/Wil 20,952
American Barley Association 20,701
U of C SUB 66019 33,099
9-X65-V2460 28,419
PO35034 Maimi 26
ENG 125
SERI XK404136-4 8,487
Story 1,191
T. Weaver 80
61
Expenditures Contract Number and Disbursements
OTHER GRANTS (cont.")
FR784 $ 1
Jackson 16,862
Stallknecht 749
Graham 646
Stewart 22,439
Gibson 2,087
Sharp 6,071
Bergman 1,674
Amend 22,450
Briggs 1,157
Catlin 4,245
Bellows 213
58202 #6 8,091
Proctor/Gamble 26,809
RDI 13,828
RDI 5,695
Hill Task #842 3,024
62015 154,099
58202 SUPP in 2
NAACOG 263
EAF 600
EAF 1.302
EAF 95
Energoinvest 28,740
ECN 0026 152
Phillips Roxane 8,145
Various 9 ,559
TOTAL OTHER GRANTS $ 2,417,093
62
MONTANA STATE UNIVERSITY
SCHEDULE OF GRANT EXPENDITURES DISBURSEMENTS
FISCAL YEAR ENDED JUNE 30, 1984
Expenditures Contract Number and Disbursements
FEDERAL GRANTS
Department of Education
GG08302783 $ 33,838
G008102311 20,321
G008202081 549
00750V1058 9,738
G008101116 54,378
G008102047 25,113
G00831153 ' 38
G008101025 39,564
6008005038 674
G008102311 40,786
G008004366 156,118
G008101025 172,882
G008004366 6,585
Pell 3,138,055
College Work-Study 691,260
NDSL Disbursements 1,318,682
Administrative and Collection Costs 52,079
SEOG 249,381
Department of Interior
CX12009B035 ' $ 144
IPA 49,677
CX-1200-2-B035 13,005
MT950-CTZ-9 415
14-10-2-920-13 345
141600091516#2 22,902
14160091516#5 2,850
14-06-600-614A 3,387
PX-1570-4-G003 3,300
PO-4C50-0100282 4,304
14-16-0006-84-92 3,129
Picton . 3,757
1416000980015 4,776
CX-1200-2-B040 230
141600091516//4 5,627
Seattle 417
C50-C-1420-4669 32,101
63
Expenditures Contract Number and Disbursements
Health and Human Services
5R23N517974-123 $ 45,271
5R01AI1351205 21,366
90AD0012/01 7,719
1R01AM3351001 95,907
1R01GM3182401 111,814
2507RR0710006 . 1,012
5R01AI1794803 49,864
2503RR0309104 1,133
1501RR0172501 188,830
2503RR0309103 3,698
12 23 ES03254-01 15,722
5K04ES00063-3&4 38,188
1R01HD1744401 46,641
5D10NU28051-03 4,733
2ALL NU-00239-08 20,250
5G08LM0366802 5,903
5D23NU0001 25-05 15,883
1 ROl AI19089-01 65,790
2 A11NU00239-07 123 TOl MHA5898-04 2,125 5R01 ES02995-02 65,087 5G08LM03668-03 63,485 5K04AI00367123 21,666 1R01E50299501 11,388 2507RR07100234 3,997 1 506 RR08218-01 15,898 MIN BIOMED RES 18,494 Nursing Loan Disbursements 120,244
U.S. Department of Agriculture
12-14-5001-42 $ 155,575
58-9AHZ-3-42 125,154
58-32U4-3-631 12,239
Nielsen 2,550
USDA 8,034
22-C-3-INT-67 192
EED12170981712 13,557
Rust 37,836
22-C-2-INT-65 7,873
PNW-83-318 26,243
28-C2-204 7,675
PNW-83-316 9,000
58-9AHZ-2-687 1,745
53-0398-3DE-3 33,348
59010410903590 5,489
22-C-3-INT_66 472
22-C-2-INT-064 6,291
82CRSR21077 20,936
USDA SC5 11,379
64
Expenditures Contract Number and Disbursements
U.S. Department of Agriculture (cont.)
USDA $ 1,295
22-C-4-INT-68 8,991
7059230112 6,991
83CRSR2-2319 12,041
28-C3-288 6,418
53-0385-3-2685 29,694
530343300682 12,933
PX12002G015 2,415
BARDUS33580 27,184
589AHZ1595 10,422
58519B11110 14,596
FROM G&C 706 3,703
22-C-2-INT-63 20,859
USDA SEA 923
58-32R6-3-202 12,378
58-9AHZ-3-724 1,451
12-ll-204-12#56 6,758
USDA SEA 2,802
INT-81-062-CA 4,520
SEA 68,897
BARD 016379 1,693
579020261002A 8,918
USDA 4,322
SEA FORMULA 84 41,009
SEA 56,863
12-05-300-663 25,900
12-05-300-664 25,000
12-05-300-0699 ' 2,086
12-05-300-567 9,272
12-05-300-439 3,253
Smith-Lever 1,792,892
Extension 399,955
Hatch 1,127,831
Regional 535,381
Department of Defense
N00014 84 K 0309 $ 9,397
N0001480C0475 24,330
N0001484K0118 . 32,123
DAAG29-82-K-0127 ' 63,338
AFOSR 80-0267 56,657
AFOSR-82-0267 7,829
65
Expenditures Contract Number and Disbursements
Department of Energy
DEAC6581WP15430
DEAP1881FC23116
1-MOOl-C
L-KOOLOC
DEAT0780ID1281
4-BOOl-C
National Aeronautics and Space Administration NAS-9-16007
National Science Foundation
SPE-8320677
CPE 8404063
CPE-8017439
CEE 8318476
DMR7906892
CHE7916134
DMR-830946
INT 8211113
MEA-8011592
CHE-8119857
CPE 8200112
CHE 8306254
DEB-8023341
DMR-8205280
EAR-8305173
PRM 821500
NSF rPENDING")
PCM 8208393
CME-7901636
ATM 8209836
DMP-8205581
Schmidt
CPE8305152
BSN 8308209
PRM-8011449
FY 81 MONTS
Other Federal
UofC $ 8,729
CHPT 36. TITLE 38 1,165
SBA-1791-PMA-74 6,237
P01401505 3,269
Stover 16,359
PC HO 100408-10 4,166
589AHZ2677 CIMMY 3,394
DTFH61-82-P-4011 450
ES20653 82 6,731
DEAP1882FC24383 9,557
66
|
$ 56, |
,804 |
|
284 |
|
|
17, |
,334 |
|
18, |
,027 |
|
10, |
,883 |
|
15, |
,846 |
|
$ 1, |
,874 |
|
$ |
42 |
|
3 |
|
|
37. |
,940 |
|
18, |
,503 |
|
71, |
,297 |
|
48, |
,066 |
|
184, |
,205 |
|
4, |
,949 |
|
10, |
,787 |
|
64, |
,888 |
|
50, |
,417 |
|
110, |
,500 |
|
8, |
,098 |
|
44, |
,692 |
|
39, |
,928 |
|
16, |
,160 |
|
28 |
,854 |
|
47, |
,576 |
|
365 |
|
|
79 |
,844 |
|
105 |
,468 |
|
65 |
|
|
17 |
,361 |
|
7 |
,278 |
|
50 |
,572 |
|
277 |
,417 |
r^-o^T-o^i- M u Expenditures Contract Number „ j n • v and Disbursements
Other Federal (cont.)
GM2 1560-83 (NEH) $ , . „_.
106-04 * 15.000
P0784828097 ^^'wn
DEFG2282PC50787 J i7o
82-ABA-02125 A iii
83-ABC-00095 A -^qI
RTAP 008 7 7
CA20604 Q ^'^■^
106-05 18,688
186-83-3019 50,871
P0100614-10 J'q^^
TVA 1131-130 ^'l^^
TVA 1131-131 ,^'°^°
lA 21198 19 G lo.yjl
CSRS-48W40 ^5
784-81-8023 ' J^
DTFH61-40073 ^^
DAN1318A00404500 q'^^,
DSAN-C-0024 ?A7 i^t
AID/DSANXIIG0161 a^'i//
TV-39645A ?„ :,„ Pesticides
WRRC
Department of Commerce 30-02-01053
10,269 8,352
Peavy ^
83/84/ WRRC * il'lil
820WRTWRRC '^i
904
1,241
Environmental Protection Agency
X1149NNEX - J
PO-3B0880NAEX ^^^^
R8-8304-14 ^'9^2
R00831501 9679
CR81001501 ^^ oil
Pagenkopf s^7
G008378830 ^^/^
CR811334-01 l7'sfi«
CR80724004 99q'a97
CR81001502 11 li-)
CR80947803 n^ n^o
CR0810955-01 7 „..
TT,- 1 1 • 4,826 Williams
ERA PERS. ACT. /4,830
CR80593503 ^
TOTAL FEDERAL GRANTS $14,995,224
67
Expenditures Contract Number and Disbursements
STATE GRANTS
Department of Agriculture
ST DEPT AG Bahn $ 2,215
Wheat Commission
83MWRMC 14,752
84MWRMC 375,487
85MWRMC 563
Department of Commerce
0229 $ 34,782
MT DEPT COMM 32,795
McKinsey 5,999
Department of Health
DHF540335 12056 $ 98
Department of Highways
Jennings
Gould
Department of Natural Resources and Conservation
ED MSU 672
RAE-83-1025
WDG-84-5012
Nowlerski
RAE-82-1017
WDG-84-5005
RAE-84-1038
RAE-84-1040
RAE-84-1039
RAE-83-1031
RAE-84-1043
ED-MCES-661
Department of State Lands
MT950-CTO-30
Munshower
Dollhopf
Weaver
Fish, Wildlife and Parks
Gould
Greer
Tweten
Irby
Giddings
Wood & Herr
Mackie 5602
68
|
$ |
128,288 |
|
1,922 |
|
|
$ |
5,226 |
|
41,871 |
|
|
401 |
|
|
15,995 |
|
|
5,426 |
|
|
8,339 |
|
|
1,840 |
|
|
3,655 |
|
|
2,962 |
|
|
21,246 |
|
|
7,631 |
|
|
5,582 |
|
|
$ |
5,184 |
|
25,843 |
|
|
20,876 |
|
|
13,073 |
|
|
$ |
12,866 |
|
890 |
|
|
2,448 |
|
|
408 |
|
|
4,978 |
|
|
10,682 |
|
|
29,695 |
Expenditures
Contract Number and Disbursements
Office of Public Instruction
Phillips $ 481
84-OPI C618 5,000
84-5703-05-23-22 C616 1,030
84-5703-05-25-17 4,795
84-5703-05-20-16 13,882
84-5703-05-20-22 2,472
84-5703-05-24-21 4,736
84-5703-05-19-17 H321 15,372
84-5703-05-23-22 C617 2,023
84-5703-05-24-22 T853 6,549
84-5703-05-24-21 T852 1,975
84-5703-05-23-21 3,149
84-5703-05-24-22 5,962
84-5703-05-23-16 4,789
84-5703-05-24-21 T851 1,770
84-5703-05-25-22 R413 6,340
84-5703-05-25-22 R414 1,946
83-5703-05-23-21 1,334
83-56-5703-05-2 TE 6,356
DPI R415 10,100
83-5703-05-23-21 1,056
83-5703-04-19-17 H22 3,507
83-56-5703-050-5 1,262
83-5703-05-25-22 145
84-56-5703-060 TE 9,742
84-56-5703-064 5 5,720
Social and Rehabilitation Services
SRS CSD-90/IV-A $ 16,517
SRS MCG OAA-84 6,055
MCG AA 84 3,481
Montana Arts Council
MAC 226 141 029 $ 19,098
Jahnke 14,209
MAC 04-1764-4 18,124
MAC 05-1773-4 393
MAC 02-1753-4 500
MAC 02-1752-4 1,000
MAC 05-1775-4 750
Montana Historical Society
308-7256-17B $ 26,268
SP 3012332-16-PHI 1,835
30-83-7256-19B 390
SP-30-7256-18B 2,941
69
Contract Number
Expenditures and Disbursements
Montana Committee for the Humanities
Sexson/Merrie
Andersen
7-3-26
Maskiell
7-3-58
7-3-80
Coffin
8-1-50
Cattin
1.511
8,648
3,333
2,881
21,812
1,221
600
714
4,298
Department of Justice Fabianic
1,500
Commissioner of Higher Education Kohl
34
Bureau of Mines Lageson
3,140
Environmental Quality Council SelCom Water MA
Other
Tummala
RRD MAES 5501
84-52-0018
HB 469, Special Appropriation
POI-T841
MDQA Grain Utilization
State CWS
Private
Seed Growers' Association
Rosebud County Commissioners
TOTAL STATE GRANTS
2,765
|
$ |
5,249 |
|
5,684 |
|
|
3,664 |
|
|
1,488 |
|
|
1,427 |
|
|
3,188 |
|
|
57,455 |
|
|
$ |
17,420 |
|
29,762 |
|
|
$ |
1,254,866 |
70
Expenditures Contract Number and Disbursements
OTHER SOURCES
DEAC 21 82 MC 19 $ 124
SIGMAXI 303
Mentzer 200
BRAD 013179 4,593
EAF 4,849
EAF 44
CIBA-GEIGY 870
EAF 14
RDI 29
Unrestricted 51,636
EC-84-011816 3,914
Tatragenics 4,407
EAF 2,600
EAF 1,450
Dist. Fed Res. Co. 10,984
Diamond Shamrock 331
5 R Rust 34,098
School Dist. #7 23,197
Custer 1,085
Various 1,965
Lilly 1,116
Hockett 4,731
Sherrick 902
Fleming 312
Gibson 4,586
Hyyppa 2,314
Welsh 300
Blackketter - 1,001
Brox«mson 1,075
Stallknecht 19,170
RDI . 16,993
NO 33214 9,937
Munshower 22,498
Fees 9,145
Speer 8,865
American Malting 3,000
P0#SR2545 299
Catlin 27,255
ZINPRO XOEP 2,896
Shannon 122
Traingle Irrigat. 1,555
Natinal Student Exchange 356
Morrill 4,992
Gilchrist 24
GW Sugar Commiit. 4,379
Seed Growers Association 1,640
Kellogg Foundation 9,917
Kellogg Foundation 1,415
71
Expenditures Contract Number and Disbursements
OTHER SOURCES (cont.)
Tiahrt $ 504
Groenhout 22,804
Catlin 2,247
McKinsey 32,803
University of Miami 102
Kain 177
EAF 14,578
Kellogg Foundation 5,087
Optical Science Center 1,000
Carrol ^69
EAF 16,000
RDI 22,583
Atlanta University 1,631
IRBY 958
Eslick/Mille 325
Sloan 223
ERF 62,976
Blackketter 2,362
King, F. ■ 3,849
Hanson/Amend 1^0
Ritchey 604
ERF 3,479
IMMUNEX 9,495
NCEA 4,529
Fiscus 311
Hart 6,566
Kushnak 578
Anaconda Company ' ^
Patash Corporation 18,543
RDI (Cargill) 19,47"
Busch 341
Knapp 638
Lockerman 1,149
Holen
Ditterline Wiesner
o
674
TIf307740 663
McClure 1,389
Thiokol Corporation 15,690
3M ^.812 TCM 28320 . 3,360
Stallnecht 16
Whitman 2,634
RDI 6,258
Characklis 3,826
Various Companies 399
PRF 14460-G5 13,432
Cont. Grain Company 4,889
Scaife/EAF 201
299 569
72
Expenditures Contract Number and Disbursements
OTHER SOURCES (cont.)
Cramer $ 802
Weisner 10,203
Proctor/Gamble 6,1^*7
Resource & Development Institution 27,009
TCM 28312 458
12-14-100-2303 249
Stewart 2,239
Sanks 6,214
Butte Silver-Bow 198
Upjohn 47,479
Miles Lab 2,969
Western Energy 4,981
City of Helena 3,811
Econ Inc. 58
RDI 27,040
RDI 120,570
26000186 Joint 400
AMB Association 4,987
Fay 48,275
Anaconda Schools 307
GTA 71
Hockett 1,973
Texaco 23,024
Walter 78
Montana Power 41,268
Overby 50
U of 0 NW Coal 11,208
RDI " 8,349
Res. Corporation 7,486
Chevron
767
RDI 6,542
SG-187 3,070
RDI 14,862
Westesen 898
Big Bud 496
Hull 118
Montana Power (EAF) 2,167
White Sulphur 997
Colorado Serum Company 7,924
American Meat Inst. 4,728
Gibson 1,294
North Cheyenne 2,802
E. I. Dupont 2,524
RDI 74,585
RDI 8,832 RDI
66 ?48
777 Lilly Company 8,557
Blue Ribbon 1,948
Stockgrowers 4,777
73
Expenditures Contract Number and Dibusrsements
OTHER SOURCES (cont.)
Sand Line $ 4,905
Western Energy 7,832
Mathre 5,775
Dow Chemical 106
Federation Fly 256
P315 40100 11,793
Hovin 3
Skogley 478
Res. Coporation 6,126
Gtr. Mt. Fdh. 32,961
American Cyanami 5,154
Myers 434
Ideal 23,235
Gavlak/Baude 422
Montana Heart Association 18,500
Young, S. 26,610
Young, S, 14,729
Montana Heart Association 10,995
Zortman 4,401
Robson 5,62 7
Kansas 8215 5,950
ERF 10,330
Royster Company 7,164
Brownson 2,575
Champion Int. 1,773
Dry Pea Association 2,157
Roundup Public 5 1,146
Anaconda ' 2,211
Upjohn 8,146
RDI 6,696
Calgon 3,775
CID MSU PCO-03 743
Colorado State University 4,907
Robson 32,178
RDI 7,255
Thomas 1,113
Bergman 3,394
MSU1351-01 18,107
MOTT 83-269 58
Dry Pea Association 934
Various 477
CSU SUBCONT 5-38 8,469
CSU SUBCONT 5-38 13,622
RDI 3,178
RDI 40,250
Black Butte 17,835
Exxon 24,050
EAF 3,986
POEA3221 Boeing 4,031
74
Expenditures Contract Number and Disbursements
OTHER SOURCES (cont.)
FDFDM University of Arizona $ 35,277
GH3-116785 17,685
MSU 26,459
Res. Corporation 9510X 489
POEXX2181 (Boeing) 5,741
Anaconda 1,596
S 4,284
RDI 68,763
Burfening 40
Moss 945
Welsh 32,116
PVT Company 30,269
Weaver 1 , 784
Ath. Sch. Assoc. 58,838
Cascade City 12,258
Worley 878
Davis 2,721
MUE5C55833195824 100
MCH 8-1-1 7,154
MSU-WID-01 1,135
Montana Power 10,500
Montana Power 51,374
Munshower 66,992
CSU 18
Western Energy 12,939
Western Energy 9,084
Montana Heart Association 278
Center for Higher Education ' 4,700
MSUEGCP263007008 15,441
MSUEGCP263007008 6,291
Boeing GE098 3,063
Faulkner/Wil 23,228
Sub #224512 96
Sub #589055 4,916
Univ-Wyo 75
P035034 Miami 30,819
679 5,477
690 271
702 1,544
712 999
713 A, 724 715 3,489 726 7,479 747 84 779 31,143
816 75
817 6,046 2912 20,748 58202 #6 159,904
75
Contract Number
OTHER SOURCES (cont.)
58202 Supp #7
118209
145
150
155
156
164
144
146
148
815
|
Exp( |
inditures |
|
|
and D: |
isbursements |
|
|
$ |
14. |
,635 348 |
|
11: |
,940 386 |
|
|
20 |
,215 |
|
|
37 |
,192 |
|
|
5 |
,041 88 |
|
|
3 |
,473 |
|
|
1 |
,770 |
|
|
1 |
,851 |
TOTAL OTHER GRANTS $ 2,483.703
76
MONTANA STATE UNIVERSITY SCHEDULE OF FULL-TIME EQUIVALENT (FTE) STUDENTS FOR THE TWO YEARS ENDING JUNE 30, 1985
|
Quarter |
Year |
Undergraduate^ FTE's Reported |
Graduate „ FTE's Reported |
Total- FTE's |
|
|
Summer |
1983 |
1,367 |
437 |
1,804 |
|
|
Autumn |
1983 |
10,243 |
496 |
10,739 |
|
|
Winter |
1984 |
9,918 |
490 |
10,408 |
|
|
Spring |
1984 |
8,907 |
507 |
9,414 |
|
|
Stimmer |
1984 |
1,275 |
429 |
1,704 |
|
|
Autumn |
1984 |
9,821 |
466 |
10,287 |
|
|
Winter |
1985 |
9,625 |
469 |
10,094 |
|
|
Spring |
1985 |
8,472 |
500 |
8,973 |
1
Undergraduate quarterly credit hours divided by 15,
Graduate quarterly credit hours divided by 12. Includes both Unrestricted and Restricted funded FTE's,
77
I
/
MONTANA AGRICULTURAL EXPERIMENT STATION AUDITOR'S OPINION AND AGENCY FINANCIAL STATEMENTS
SCOTT A. SEACAT
LBStSLATIVE AUDITOR
STATE OF MONTANA
^ffxt:e nf tire J^giskiiit^ ^xtbii:ai::
STATE CAPITOL
HELENA, MONTANA 59620
406/444-3122
DEPUTY LEGISLATIVE AUDITORS: JAMES GILLETT
FINANCIAL-COMPLJANCE AUDITS
JIM PELLEGRINI
PERFORMANCE AUDITS
LEGAL COUNSEL:
JOHN W. NORTHEY
The Legislative Audit Committee of the Montana State Legislature:
We have examined the accompanying Balance Sheets of the Agricultural Experiment Station CAES) at June 30, 1984 and June 30, 1985, and the related Statements of Changes in Fund Balances and Current Funds Revenues, Expenditures, and Other Changes for the two fiscal years ended June 30, 1985. Our examination was made in accordance with generally accepted auditing standards and Standards for Audits of Governmental Organizations, Programs, Activities, and Functions and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.
The financial statements presented are only for the Agricul- tural Experiment Station. Accordingly, the accompanying financial statements are not intended to present fairly the financial position of the state of Montana as of June 30, 1984 and 1985 or the results of its operations and changes in its fund balances for the two fiscal years then ended, in conformity with generally accepted accounting principles.
In our opinion, the financial statements referred to above present fairly the financial position of the Agricultural Experiment Station at June 30, 1984 and June 30, 1985, the changes in fund balances, and the current funds revenue, expenditures, and other
78
changes for each of the two years ended June 30, 1985 in conformity with generally accepted accounting principles which have been applied on a consistent basis.
Respectfully submitted,
James Cillett, CPA Deputy Legislative Auditor
February R, 1986
79
AGRICULTURAL EXPERIMENT STATION BALANCE SHEETS Year Ended June 30, 1985
ASSETS
CURRENT FUNDS: Unrestricted:
General operating: Cash
Accounts receivable Due from other fund groups Investments (Note 2)
Total general operating
Designated: Cash
Accounts receivable Due from other fund groups
Total designated
Total unrestricted
Restricted: Cash
Accounts receivable Due from other fund groups Investments (Note 2)
Total restricted Total current funds
PLANT FUNDS: Unexpended : Cash
Accounts receivable Due from other fund groups Investments (Note 2) Total unexpended
Renewals and replacements: Cash Investments (Note 2)
Total renewals and replacements
Investment in plant:
Land and land improvements
Buildings
Equipment
Livestock
Total investment in plant
710,535
101,367
264
308,832
Total plant funds See notes to financial statements
|
1,120, |
998 |
|
227, |
957 |
|
1, |
700 |
|
8, |
481 |
|
238, |
138 |
|
1,359, |
136 |
|
85, |
951 |
|
385, |
737 |
|
6, |
921 |
|
34, |
497 |
|
513 |
106 |
|
$ 1,872 |
242 |
|
$ 13 |
233 |
|
20 |
103 |
|
298 |
|
|
26 |
,904 |
|
60 |
,538 |
|
2 |
,003 |
|
103 |
,650 |
|
105 |
,653 |
|
1,378 |
,525 |
|
3,829 |
,452 |
|
4,771 |
,098 |
|
1,844 |
,862 |
|
11,823 |
,937 |
|
$11,990 |
,128 |
80
LIABILITIES AND FUND BALANCES
CURRENT FUNDS: Unrestricted :
General operating:
Accrued payroll $ 505,792
Accounts payable and accrued liabilities 216,983
Due to other fund groups 8,779
Compensated absences payable (Note 4) 1,037,106
Fund balance (Note 1) (647,662)
Total general operating 1 , 120 ,998
Designated :
Accrued payroll 15,178
Accounts payable and accrued liabilities 38,944
Due to other fund groups 7,185
Compensated absences payable (Note 4) 5,372
Fund balance ^71,459
Total designated 238, 138
Total unrestricted 1 ,359,136
Restricted:
Accrued payroll 4,764
Accounts payable and accrued liabilities 496,205
Compensated absences payable (Note 4) 6,445
Fund balance 5,692
Total restricted 513,106
Total current funds $ 1,872,242
PLANT FUNDS: Unexpended :
Accrued payroll $ 735
Accounts payable and accrued liabilities 6,421
Fund balances 53,382
Total unexpended 60 ,538
Renewals and replacements:
Fund balance 105 ,653
Total renewals and replacements 105 ,653
Investment in plant:
Net investment in plant 11,823,937
Total investment in plant 11 ,823,937
Total plant funds $11,990,128
81
AGRICULTinRAL EXPERIMENT STATION STATEMENT OF CHANGES IN FUND BALANCES Year Ended June 30, 1985
Current Funds
Revenue and other additions: Current funds revenue Miscellaneous income Expended for plant facilities (including $523,755 charged to current funds) Total revenue and other additions
Expenditures and other deductions: Current funds expenditures Expended for plant facilities (including $10,298 non-capital expenditures) Total expenditures and other deductions
Transfers among funds-additions (deductions) : Voluntary:
Total transfers
Net increase (decrease) in fund balance
Fund balance at beginning of year as previously reported
Unrestricted
General Operating Designated Restricted
$9,140,394 $ 511,349 $2,448,743
9,140,394
9,360,810
9,360,810
(220,416)
(449,092)
|
- |
|
|
94 |
865 |
|
74 |
571 |
511,349 2,448,743
416,484 2,472,747
416,484 2,472,747
(24,004)
34,162
Adjustments: (Note 1 & 4) Prior year revenues Prior year expenditures Compensated absences payable Other
|
32,129 |
867 |
897 |
|
(3,474) |
(61) |
(5,090) |
|
(6,809) |
1,217 |
(273) |
Total adjustments
21,846
2,023
(4,466)
Fund balances at beginning of year as adjusted
Fund balances at end of year
(427.246)
76,594
29,696
$ (647,662) $ 171,459 $ 5,692
See notes to financial statements
Plant Funds
Renewals and Investment Unexpended Replacements in Plant
- $ 64,128 18,971
(566)
85,963 9,780
85,963 9,780
33
609,200
64,128 18,971 609,200
(21,835) 9,191 609,200
75,783 96,462 12,117,752
(903,015)
(566) - (903,015)
75,217 96,462 11,214,737
$ 53,382 $ 105,653 $ 11,823,937
MONTANA AGRICULTURAL EXPERIMENT STATION STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES AND OTHER CHANGES
Year Ended June 30, 1985
Unrestricted
General Operating Designated Restricted Total
Revenues :
Federal appropriations $1,757,239 $ - $ - $ 1,757,239 State appropriations 5,930,543 - 71,212 6,001,755 Fed. grants and contracts - - 1,052,016 1,052,016 State grants and contracts - - 454,445 454,445 Private grants and con- tracts - - 888,378 888,378 Sales and service of
educational activities 1,380,008 - - 1,380,008
Other sources 72,604 511,349 6,696 590,649
. Total revenues 9,140,394 511,349 2,472,747 12,124,490
Expenditures :
Research 8,489,984 - 2,459,860 10,949,844
Institutional support 749,399 - - 749,399 Operation and maintenance
of plant 121,427 - - 121,427
Other 2 416,484 12,887 429,371
Total expenditures 9,360,810 416,484 2,472,747 12,250,041
Transfers and other additions (deductions ) : Transfers - - -
Deficit of restricted receipts over transfers to revenue 2 I (24,004) (24,004)
Net increase (decrease)
in fund balance $ (220,416) $ 94,865 $ (24,004) $ (149,555)
See notes to financial statements
84
MONTANA AGRICULTURAL EXPERIMENT STATION
NOTES TO FINANCIAL STATEMENTS
June 30, 1985
1 . Suminary of significant accounting policies
Related parties:
Montana State University, Montana Agricultural Experiment Station and Montana Cooperative Extension Service are related through common management and control; however, they are separate and distinct agencies and they receive separate federal and state appropriations. These agencies have certain related party transactions, including sharing office facilities, management and accounting and office services. The accounts of Montana State University and Montana Cooperative Extension Service have not been included in the accom- panying financial statements.
Financial statements:
The accompanying financial statements have been prepared on the accrual basis in accordance with generally accepted accounting principles for colleges and universities except as noted hereafter.
The statement of current funds revenues, expenditures and other changes is a statement of financial activities of current funds re- lated to the current reporting period and does not purport to present the results of operations or the net income or loss for the period.
Fund balance for unrestricted general operating funds includes $20,501 allocated for encumbrances and $368,943 prior period revenue overage netted to the unfunded liability of $1,037,106 for compen- sated absences payable.
Fund accounting:
The accounts of the Station are maintained in accordance with the principles of fund accounting wherein resources are classified for accounting purposes into funds that are identified by the limitations and restrictions placed upon their use. Separate accounts are main- tained for each fund, however, accounts with common characteristics are combined into groups and reflected as such in the accompanying financial statements.
Plant and equipment:
At June 30, 1985 investment in plant was adjusted $903,015 to reflect the totals in the property control subsidiaries. Livestock is carried at current market value and any differences from the prior years values are reflected in this adjustment. Livestock is purchased and raised for experimental purposes; the revenues from livestock sales are recorded in the general operating fund, except when a breeding animal is sold and is expected to be replaced; then sales proceeds are recorded in designated funds and used for replacements as needed.
85
MONTANA AGRICULTURAL EXPERIMENT STATION
NOTES TO FINANCIAL STATEMENTS
June 30, 1985
Summary of significant accounting policies (continued)
Depreciation:
No provision has been made for depreciation of plant facilities in accordance with generally accepted accounting principles for col- leges and universities.
Allowance of Bad Debts :
An allowance for bad debts has not been recorded. Losses from bad debts are recorded as adjustments to revenue in the year in which they are deemed uncollectable.
Allocated for encumbrances:
The Station records encumbrances as expenditures in conformance with the Statewide Budgeting and Accounting System.
At June 30, 1985, the Station had encumbered $20,501 of funds that are not included in expenditures in the accompanying financial statements. The accrual basis of accounting provides that expen- ditures include only amounts associated with goods and services received and that liabilities include only the unpaid amounts as- sociated with such transactions.
Investments :
Investments are carried at cost, which approximate market value at June 30, 1985.
Investments
Investments at June 30, 1985 consist of the following:
Montana short-term investment pool
Investments at June 30, 1985 are owned by the following funds:
Current funds :
General operating $ 308,832
Restricted 34,497
Plant funds:
Unexpended 26,904
Renewals and replacements 103 ,650
$ 473,883
|
Cost |
|
|
$ |
473,883 |
|
$ |
473,883 |
86
MONTANA AGRICULTURAL EXPERIMENT STATION
NOTES TO FINANCIAL STATEMENTS
June 30, 1985
3 . Retirement plans
All of the Station's full-time employees are members of the Montana Public Employees Retirement System or the Montana Teachers Retirement System. Employer contributions to these systems, which were determined to be actuarially sound by the most recent biennial valuations, totaled $363, 74A for the year ended June 30, 1985.
4 . Commitments and contingencies
Compensated absences payable:
As of December 31 of each year, employees can accumulate vacation leave up to twice the number of leave days earned annually and sick leave can be accumulated without limitation. Upon termination, the employee is paid the accumulated vacation leave and 25% of the accumulated sick leave. Vacation and sick leave payments are recorded as an expenditure at the time they are paid to the employee.
Due to system limitations, the change in the compensated absences payable amount is stated as an adjustment and not identified with the fiscal period earned or utilized by the employee.
Leases:
The Station reserves the right to limit the amount of expenditures associated with lease contracts without penalty when in the sole judgment of the Station annual funding or program changes necessitate. Capital lease agreements for various purposes and time periods totaling $34,331 at June 30, 1985 are not added to net investment in plant and not deemed to be material to the overall consolidated financial position of the Station.
87
AGRICULTURAL EXPERIMENT STATION BALANCE SHEETS Year Ended June 30, 1984
ASSETS
CURRENT FUNDS: Unrestricted:
General operating: Cash
Accounts receivable Due from other fund groups Investments (Note 2)
Total general operating
Designated: Cash
Accounts receivable Due from other fund groups
$ 729,957
79,263
1,691
477,977
1,288,888
25,154
2,772
70,558
Total designated
Total unrestricted
Restricted: Cash
Accounts receivable Investments (Note 2)
98,484
1,387,372
82,089
426,222
61,196
Total restricted
Total current funds
PLANT FUNDS: Unexpended: Cash
Accounts receivable Due from other fund groups Investments (Note 2) Total unexpended
Renewals and replacements: Cash
Accounts receivable Investments (Note 2)
Total renewals and replacements
Investment in plant:
Land and land improvements
Buildings
Equipment
Livestock
Total investment in plant
569,507
Total plant funds
See notes to financial statements 88
$ 1,956,879
28,824 1,193 6,492
47,972
84,481
3,544 15,080 77,838
96,462
1,367,767 3,710,845 4,483,388 2,555,752 12,117,752
$12,298,695
LIABILITIES AND FUND BALANCES
CURRENT FUNDS: Unrestricted :
General operating:
Accrued payroll ^ 436,633
Accounts payable and accrued liabilities 195 '203
Due to other fund groups 75 'sA?
Compensated absences payable (Note 4) 1 030 '297
Fund balance (Note 1) (449 'o92)
Total general operating 1, 288 j 888
Designated:
Accrued payroll g goi
Accounts payable and accrued liabilities 8*384
Due to other fund groups 2^09
Compensated absences payable (Note 4) 5 539
Fund balance 74*571
Total designated 987484
Total unrestricted
1,387,372
Restricted:
Accrued payroll 90 925
Accounts payable and accrued liabilities 437*045
Due to other fund groups i 203
Compensated absences payable (Note 4) 6*172
Fund balance 34*162
Total restricted 569 507
Total current funds $ 1 956,879
PLANT FUNDS: Unexpended:
Accrued payroll t g^g
Accounts payable and accrued liabilities 6 167
Due to other fund groups i 552
Fund balances 75 -733
Total unexpended 84^"48T
Renewals and replacements:
Fund balance 95 452
Total renewals and replacements 96 462
Investment in plant:
Net investment in plant 12 117 752
Total investment in plant 12 117 752
Total plant funds $12 298 695
89
AGRICULTURAL EXPERIMENT STATION STATEMENT OF CHANGES IN FUND BALANCES Year Ended June 30, 1984
Current Funds
Revenue and other additions: Current funds revenue Miscellaneous income Expended for plant facilities (including $392,881 charged to current funds) Total revenue and other additions
Expenditures and other deductions: Current funds expenditures Expended for plant facilities (including $14,231 non-capital expenditures) Total expenditures and other deductions
Transfers among funds-additions (deductions) : Voluntary:
Total transfers
Net increase (decrease) in fund balance
Fund balance at beginning of year as previously reported
Adjustments: (Note 1 & 4) Prior year revenues Prior year expenditures Compensated absences payable Other
Total adjustments
Fund balances at beginning of year as adjusted
Fund balances at end of year
Unrestricted
General Operating Designated Restricted
$8,904,759 $ 562,861 $2,313,502
8,904,759
9,125,578
9,125,578
37,973 37,973
(182,846) 141,988
740,513
178 23,360 (1,030,297)
(1,006,759)
562,861 2,313,502
420,873 2,256,397
420,873 2,256,397
57,105
(61,226) 43,686
48 (13,966)
350 (46,491)
(6,589) (6,172)
(6,191) (66,629)
(266,246) (67,417) (22,943)
$ (449,092) $ 74,571 $ 34,162
See notes to financial statements
90
|
Plant Funds |
|||||
|
Unexpended |
Renewals and Replacements $ 27,025 |
Investment in Plant |
|||
|
$ 192,180 |
$ |
544,089 |
|||
|
192,180 |
27,025 |
544,089 |
164,443 996
164,443 996
|
(37 |
,973) |
|
(37 |
,973) |
|
(10 |
,236) |
|
88 |
,896 |
(2,896) 19
26,029 544,089
70,433 11,294,237
279,426
(2,877) -_ 279,426
86,019 70,433 11,573,663
75,783 $ 96,462 $ 12,117,752
91
MONTANA AGRICULTURAL EXPERIMENT STATION STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES AND OTHER CHANGES
Year Ended June 30, 1984
|
Unrestricted |
Restricted $ 77,969 842,613 436,788 |
||
|
General Operating |
Designa $ |
ited |
Total |
|
$1,663,210 5,660,387 |
$ 1,663,210 5,738,356 842,613 436,788 |
Revenues :
Federal appropriations
State appropriations
Fed. grants and contracts
State grants and contracts
Private grants and con- tracts - - 892,648 892,648
Sales and service of
educational activities 1,487,298 - - 1,487,298
Other sources 93,864 562,861 6,379 663,104
Total revenues 8,904,759 562,861 2,256,397 11,724,017
Expenditures:
Research 8,301,419 - 2,244,976 10,546,395
Institutional support 711,212 - - 711,212 Operation and maintenance
of plant 112,947 - - 112,947
Other 2 420,873 11,421 432,294
Total expenditures 9,125,578 420,873 2,256,397 11,802,848
Transfers and other additions (deductions) :
Transfers 37,973 - - 37,973
Excess of restricted
receipts over transfers
to revenue ' - - 57,105 57,105
Net increase (decrease)
in fund balance $ (182,846) $ 141,988 $ 57,105 $ 16,247
See notes to financial statements
92
MONTANA AGRICUITTJRAL EXPERIMENT STATION
NOTES TO FINANCIAL STATEMENTS
June 30, 1984
1 . Summary of significant accounting policies
Related parties:
Montana State University, Montana Agricultural Experiment Station and Montana Cooperative Extension Service are related through common management and control; however, they are separate and distinct agencies and they receive separate federal and state appropriations. These agencies have certain related party transactions, including sharing office facilities, management and accounting and office services. The accounts of Montana State University and Montana Cooperative Extension Service have not been included in the accom- panying financial statements.
Financial statements:
The accompanying financial statements have been prepared on the accrual basis in accordance with generally accepted accounting principles for colleges and universities except as noted hereafter.
The statement of current funds revenues, expenditures and other changes is a statement of financial activities of current funds re- lated to the current reporting period and does not purport to present the results of operations or the net income or loss for the period.
Fund balance for unrestricted general operating funds includes $39,334 allocated for encumbrances and $541,871 prior period revenue overage netted to the unfunded liability of $1,030,297 for compen- sated absences payable.
Fund accounting:
The accounts of the Station are maintained in accordance with the principles of fund accounting wherein resources are classified for accounting purposes into funds that are identified by the limitations and restrictions placed upon their use. Separate accounts are main- tained for each fund, however, accounts with common characteristics are combined into groups and reflected as such in the accompanying financial statements.
Plant and equipment:
At June 30, 1984 investment in plant was adjusted $279,426 to reflect the totals in the property control subsidiaries. Livestock is carried at current market value and any differences from the prior years values are reflected in this adjustment. Livestock is purchased and raised for experimental purposes; the revenues from livestock sales are recorded in the general operating fund, except when a breeding animal is sold and is expected to be replaced; then sales proceeds are recorded in designated funds and used for replacements as needed.
93
MONTANA AGRICULTURAL EXPERIMENT STATION
NOTES TO FINANCIAL STATEMENTS
June 30, 1984
1. Summary of significant accounting policies (continued)
Depreciation:
No provision has been made for depreciation of plant facilities in accordance with generally accepted accounting principles for col- leges and universities.
Allowance of Bad Debts:
An allowance for bad debts has not been recorded. Losses from bad debts are recorded as adjustments to revenue in the year in which they are deemed uncollectable .
Allocated for encumbrances:
The Station records encumbrances as expenditures in conformance with the Statewide Budgeting and Accounting System.
At June 30, 1984, the Station had encumbered $39,334 of funds that are not included in expenditures in the accompanying financial statements. The accrual basis of accounting provides that expen- ditures include only amounts associated with goods and services received and that liabilities include only the unpaid amounts as- sociated with such transactions.
Investments :
Investments are carried at cost, which approximate market value at June 30, 1984.
2. Investments
Investments at June 30, 1984 consist of the following:
Cost
Montana short-term investment pool $ 664,983
$ 664,983
Investments at June 30, 1984 are owned by the following funds:
Current funds:
General operating $ 477,977
Restricted 61,196
Plant funds:
Unexpended 47,972
Renewals and replacements 77 ,838
$ 664,983
94
MONTANA AGRICULTURAL EXPERIMENT STATION
NOTES TO FINANCIAL STATEMENTS
June 30, 1984
3. Retirement plans
All of the Station's full-time employees are members of the Montana Public Employees Retirement System or the Montana Teachers Retirement System. Employer contributions to these systems, which were determined to be actuarially sound by the most recent biennial valuations, totaled $354,509 for the year ended June 30, 1984.
4 . Commitments and contingencies
Compensated absences payable:
As of December 31 of each year, employees can accumulate vacation leave up to twice the number of leave days earned annually and sick leave can be accumulated without limitation. Upon termination, the employee is paid the accumulated vacation leave and 25% of the accumulated sick leave. Vacation and sick leave payments are recorded as an expenditure at the time they are paid to the employee.
Previous financial reports have disclosed the leave liability only as a footnote. In accordance with generally accepted accounting principles the liability as of June 30, 1984 has been recorded for the first time in the applicable fund groups.
Leases :
The Station reserves the right to limit the amount of expenditures associated with lease contracts without penalty when in the sole judgment of the Station annual funding or program changes necessitate. Capital lease agreements for various purposes and time periods totaling $243,229 at June 30, 1984 are not added to net investment in plant and not deemed to be material to the overall consolidated financial position of the Station.
95
MONTANA COOPERATIVE EXTENSION SERVICE AUDITOR'S OPINION AND AGENCY FINANCIAL STATEMENTS
SCOTTA. SEACAT
LEGISLATIVE AUDITOR
STATE OF MONTANA
STATE CAPITOL
HELENA, MONTANA 59620
406/444-3122
DEPUTY LEGISLATIVE AUDITORS: JAMES GILLETT
FINANCIAL COMPLIANCE AUDITS
JIM PELLEGRINI
PERFORMANCE AUDITS
LEGAL COUNSEL;
JOHN W. NORTHEY
The Legislative Audit Committee of the Montana State Legislature:
We have examined the accompanying Balance Sheets of the Cooperative Extension Service (CES) at June 30, 1984 and June 30, 1985, and the related Statements of Changes in Fund Balances and Current Funds Revenues, Expenditures, and Other Changes for each of the two fiscal years ended June 30, 1985. Our examination was made in accordance with generally accepted auditing standards and Standards for Audits of Governmental Organizations, Programs, Activities, and Functions and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.
The financial statements presented are only for the Coopera- tive Extension Service. Accordingly, the accompanying financial statements are not intended to present fairly the financial position of the state of Montana as of June 30, 1984 and 1985 or the results of its operations and changes in its fund balances for the two fiscal years then ended, in conformity with generally accepted accounting principles.
In our opinion, the financial statements referred to above present fairly the financial position of the Cooperative Extension Service at June 30, 1984 and June 30, 1985, the changes in fund balances, and the current funds revenue, expenditures, and other
96
changes for each of the two years ended June 30, 1985, in confor- mity with generally accepted accounting principles which have been applied on a consistent basis.
Respectfully submitted.
James Cillett, CPA Deputy Legislative Auditor
February 14, 1986
97
MONTANA COOPERATIVE EXTENSION SERVICE BALANCE SHEETS Year Ended June 30, 1985
ASSETS
CURRENT FUNDS: Unrestricted:
General operating Cash
Accounts receivable Due from other fund groups
$220,803
170
6,746
Total general operating
227,719
Designated : Cash
Accounts receivable Due from other fund groups Inventories
Total designated
Total unrestricted
208,208 80,913 17,021 95,692
401,834
629,553
Restricted: Cash
Accounts receivable Investments (Note 2)
64,668
23,330
1,513
Total restricted Total current funds
89,511 $719 ,064
PLANT FUNDS
Investment in plant: Buildings Equipment
Total plant funds
S 44,508 707,178
S751 ,686
See notes to financial statements
98
LIABILITIES AND FUND BALANCES
CURRENT FUNDS: Unrestricted :
General operating:
Accrued payroll $246,310
Accounts payable and accrued liabilities 88,997
Due to other fund groups 13,888
Compensated absences payable (Note 4) 774,071
Fund balance (Note 1) (895 ,547)
Total general operating 227 , 719
Designated:
Accrued payroll 25,613
Accounts payable and accrued liabilities 38,929
Due to other fund groups 9,548
Compensated absences payable (Note 4) 50,228
Fund balance
Total designated
Total unrestricted
Restricted:
Accrued payroll 26,375
Accounts payable and accrued liabilities 39,581
Due to other fund groups 331
Compensated absences payable (Note 4) 29,682
Fund balance (Note 1) (6,458)
Total restricted 89,511
Total current funds $719 ,064
|
277 |
,516 |
|
401 |
,834 |
|
629 |
,553 |
PLANT FUNDS:
Investment in plant:
Net investment in plant $751,686
Total plant funds $751,686
99
/
I
MONTANA COOPERATIVE EXTENSION SERVICE STATEMENT OF CHANGES IN FUND BALANCES
Year Ended June 30, 1985 j
Unrestricted Plant Funds
|
4,074, |
,287 |
|
4,169: |
,021 |
|
4,169 |
,021 |
|
(94 |
,734) |
|
(699 |
,251) |
General Investment
Operating Designated Restricted in Plant
Revenues and other additions:
Current funds revenue $4,074,287 $ 671,125 $ 768,664 $
Expended for plant facilities (including $105,602 charged to current funds expenditure) Total revenues and other
additions 4,074,287 671,125 768,664
Expenditures and other deductions:
Current funds expenditures 4,169,021 658,910 759,347 Total expenditures and other
deductions 4,169,021 658,910 759,347
Net increase (decrease) for the
year (94,734) 12,215 9,317
Fund balances at beginning of year
as previously reported (699,251) 276,997 (25,497)
Adjustments: (Note 1 & 4) Prior year revenues Prior year expenditures Compensated absences payable Other
|
- |
1,261 |
921 |
|
(43,058) |
(7,198) |
(3,571) |
|
(58,504) |
(5,759) |
12,372 |
Total adjustments (101,562) (11,696) 9,722
Fund balance at beginning of year
as adjusted (800,813) 265,301 (15,775)
Fund balance at end of year $ (895,547) $ 277,516 $ (6,458)
See notes to financial statements
100
|
105, |
,602 |
|
105, |
,602 |
|
_ |
|
|
105 |
,602 |
|
759 |
,767 |
|
(113 |
,683) |
|
(113, |
,683) |
|
646 |
,084 |
|
$ 751 |
,686 |
MONTANA COOPERATIVE EXTENSION SERVICE STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES AND OTHER CHANGES
Year Ended June 30, 1985
Unrestricted
General Operating Designated Restricted Total
Revenues :
Federal appropriations $ 1,889,314 $ - $ 384,116 $2,273,430
State appropriations 2,184,973 - 49,908 2,234,881
Federal grants and contracts - - 166,176 166,176
State grants and contracts - - 84,173 84,173
Local grants and contracts - - 29,581 29,581 Private gifts, grants and
contracts - - 35,397 35,397
Other sources 1 671,125 9,996 681,121
Total revenues 4,074,287 671,125 759,347 5,504,759
Expenditures :
Public service 3,198,364 - 757,260 3,955,624
Institutional support 923,741 - 2,087 925,828 Operation and maintenance
of plant 46,916 - - 46,916
Other ■ 1 658,910 ^ 658,910
Total expenditures 4,169,021 658,910 759,347 5,587,278
Transfers and other additions (deductions) : Excess of restricted
receipts over transfers
to revenue ^ -_ 9,317 9,317
Net increase (decrease) in
fund balances $ (94,734) $ 12,215 $ 9,317 $ (73,202)
I
See notes to financial statements
101
I.
/
MONTANA COOPERATIVE EXTENSION SERVICE
NOTES TO FINANCIAL STATEMENTS
June 30, 1985
1 . Summary of significant accounting policies
Related parties:
Montana State University, Montana Agricultural Experiment Station and Montana Cooperative Extension Service are related through common management and control; however, they are separate and distinct agencies and they receive separate federal and state appropriations. These agencies have certain related-party transactions, including sharing office facilities, management, and accounting and office services. The accounts of Montana Agricultural Experiment Station and Montana State University have not been included in the accompany- ing financial statements.
Financial statements:
The accompanying financial statements have been prepared on the accrual basis in accordance with generally accepted accounting principles for colleges and universities except as noted hereafter.
The statement of current funds revenues and expenditures is a state- ment of financial activities of current funds related to the current reporting period and does not purport to present the results of operations or the net income or loss for the period.
Fund balance for unrestricted general operating funds includes $121,476 prior period revenue shortage combined with the unfunded liability of $774,071 for compensated absences payable. Fund balance for restricted current funds includes $23,224 of unearned revenue netted to the unfunded liability of $29,682 for compensated absences payable .
Fund accounting:
The accounts of the Service are maintained in accordance with the principles of fund accounting wherein resources are classified for accounting purposes into funds that are identified by the limitations and restrictions placed upon their use. Separate accounts are main- tained for each fund, however, accounts with common characteristics are combined into groups and reflected as such in the accompanying financial statements.
Inventory:
Inventory of paper and supplies are valued at cost (first-in, first- out method) .
Plant and equipment: ■
At June 30, 1985, investment in plant was adjusted $113,683 to reflect the totals in the property control subsidiaries.
102
MONTANA COOPERATIVE EXTENSION SERVICE
NOTES TO FINANCIAL STATEMENTS
June 30, 1985
1. SujTTmary of significant accounting policies (continued) Depreciation :
No provision has been made for depreciation of plant facilities in accordance with generally accepted accounting principles for colleges and universities.
Allowance for Bad Debts:
An allowance for bad debts has not been recorded. Losses from bad debts are recorded as adjustments to revenue in the year in which they are deemed uncollectable .
2 . Investments
Investments are carried at cost, which approximates market value; at June 30, 1985, investments consist of the following:
Cost Montana short-term investment pool $1,513
$1,513
Investments at June 30, 1985, are owned by the following fund:
Current funds :
Restricted $1 ,513
$1,513
3 . Retirement plans
All of the Service's full-time employees are members of the Montana Public Employees Retirement System, Montana Teachers Retirement System or the U.S. Civil Service Retirement System. Employer con- tributions to these plans totaled $308,371 for the year ended June 30, 1985. The State of Montana retirement plans were determined to be actually sound by the most recent biennial valuations.
4 . Commitments and contingencies
Compensated absences payable:
As of December 31 of each year, employees can accumulate vacation leave up to twice the number of leave days earned annually and sick leave can be accumulated without limitation. Upon termination, the employee is paid the accumulated vacation leave and 25% of the accumulated sick leave. Vacation and sick leave payments are recorded as an expenditure at the time they are paid to the employee.
Due to system limitations, the change in the compensated absences payable amount is stated as an adjustment and not identified with the fiscal period earned or utilized by the employee.
103
/
MONTANA COOPERATIVE EXTENSION SERVICE
NOTES TO FINANCIAL STATEMENTS
June 30, 1985
4. Commitments and contingencies (continued)
Leases :
The Service reserves the right to limit the amount of expenditures associated with lease contracts without penalty when in the sole judgment of the Service annual funding or program changes necessitate. Capital lease agreements for various purposes and time periods totaling $885, at June 30, 1985, are not added to net investment in plant and not deemed to be material to the overall financial position of the Service.
104
/
MONTANA COOPERATIVE EXTENSION SERVICE
BALANCE SHEETS
Year Ended June 30, 1984
ASSETS
CURRENT FUNDS: Unrestricted:
General operating Cash
Accounts receivable Due from other fund groups
Total general operating
Designated: Cash
Accounts receivable Due from other fund groups Inventories
Total designated
Total unrestricted
|
$283; |
,836 96 ,119 |
|
288 |
,051 |
|
219, 50, 4, 111! |
,009 ,376 ,593 ,608 |
|
385, |
,586 |
|
673, |
,637 |
Restricted: Cash
Accounts receivable Due from other fund groups Investments (Note 2)
PLANT FUNDS
Investment in plant: Buildings Equipment
Total restricted Total current funds
Total plant funds
|
62, 22, 6, |
,468 ,944 ,048 951 |
|
92, |
,411 |
|
S766, |
,048 |
|
$ 34; 725, |
,152 ,615 |
|
$759; |
,767 |
See notes to' financial statements
105
/
LIABILITIES AND FUND BALANCES
CURRENT FUNDS: Unrestricted:
General operating:
Accrued payroll $229,142
Accounts payable and accrued liabilities 32,750
Due to other fund groups 9,843
Compensated absences payable (Note 4) 715,567
Fund balance (Note 1) (699,251)
Total general operating 288 ,051
Designated:
Accrued payroll 22,349
Accounts payable and accrued liabilities 38,760
Due to other fund groups 3,011
Compensated absences payable (Note 4) 44,469
Fund balance 276,997
Total designated 385,586
Total unrestricted 673 , 637
Restricted:
Accrued payroll 40,004
Accounts payable and accrued liabilities 33,942
Due to other fund groups 1,908
Compensated absences payable (Note 4) 42,054
Fund balance (Note 1) (25,497)
Total restricted 92,411
Total current funds $766,048
PLANT FUNDS:
Investment in plant:
Net investment in plant $759,767
Total plant funds $759,767
106
MONTANA COOPERATIVE EXTENSION SERVICE STATEMENT OF CHANGES IN FUND BALANCES Year Ended June 30, 1984
Unrestricted Plant Funds
General Investment
Operating Designated Restricted in Plant
Revenues and other additions:
Current funds revenue $3,930,466 $ 643,619 $ 752,072 $ Expended for plant facilities (including $52,198 charged
to current funds expenditure) 2 1 1 52 , 198
Total revenues and other
additions 3,930,466 643,619
Expenditures and other deductions:
Current funds expenditures 3,886 , 124 617 ,440 Total expenditures and other
deductions 3,886,124 617,440
Net increase (decrease) for the
year 44,342 26,179
Fund balances at beginning of year
as previously reported 2 ,995 326 ,891
Adjustments: (Note 1 & 4)
Prior year revenues (1,897) (3,627) (5,206)
Prior year expenditures (29,124) (27,977) (6,525)
Compensated absences payable (715,567) (44,469) (42,054)
Other -_ -_ -_ 15,1?>U
Total adjustments (746,588) (76,073) (53,785) 75,784
Fund balance at beginning of year
as adjusted (743,593) 250,818 (21,024) 707,569
Fund balance at end of year $ (699,251) $ 276,997 $ (25,497) $ 759,767
|
3, |
,930,466 |
|
3, |
,886,124 |
|
3 |
,886,124 |
|
44,342 |
|
|
2,995 |
|
752. |
,072 |
|
756, |
,545 |
|
756, |
,545 |
|
(4, |
,473) |
|
32 |
,761 |
See notes to financial statements 107
|
52. |
,198 |
|
_ |
|
|
52. |
,198 |
|
631. |
,785 |
MONTANA COOPERATIVE EXTENSION SERVICE STATEMENT OF CURRENT FUNDS REVENUES, EXPENDITURES AND OTHER CHANGES
Year Ended June 30, 1984
Unrestricted
Revenues :
Federal appropriations State appropriations Federal grants and contracts State grants and contracts Local grants and contracts Private gifts, grants and
contracts Other sources Total revenues
Expenditures:
Public service Institutional support Operation and maintenance
of plant Other
Total expenditures
Transfers and other additions (deductions ) : Deficit of restricted receipts over transfers to revenue ^ ^ (4,473) (4,473)
Net increase (decrease) in
fund balances $ 44,342 $ 26,179 $ (4,473) $ 66,048
|
General |
|||||
|
Operating |
Designated $ |
Restricted $ 415,107 |
Total |
||
|
$ 1,793,152 |
$2,208,259 |
||||
|
2,137,314 |
- |
80,442 |
2,217,756 |
||
|
- |
- |
133,128 |
133,128 |
||
|
- |
- |
41,884 |
41,884 |
||
|
- |
- |
37,702 |
37,702 |
||
|
_ |
- |
48,168 |
48,168 |
||
|
- |
643, 643, |
,619 ,619 |
114 756,545 |
643,733 |
|
|
3,930,466 |
5,330,630 |
||||
|
3,120,194 |
_ |
755,350 |
3,875,544 |
||
|
719,365 |
- |
706 |
720,071 |
||
|
46,565 |
- |
_ |
46,565 |
||
|
- |
617 617 |
,440 >40 |
— |
489 756,545 |
617,929 |
|
3,886,124 |
5,260,109 |
See notes to financial statements 108
1
MONTANA COOPERATIVE EXTENSION SERVICE
NOTES TO FINANCIAL STATEMENTS
June 30, 1984
1 . Suminary of significant accounting policies
Related parties:
Montana State University, Montana Agricultural Experiment Station and Montana Cooperative Extension Service are related through common management and control; however, they are separate and distinct agencies and they receive separate federal and state appropriations. These agencies have certain related-party transactions, including sharing office facilities, management, and accounting and office services. The accounts of Montana Agricultural Experiment Station and Montana State University have not been included in the accompany- ing financial statements.
Financial statements:
The accompanying financial statements have been prepared on the accrual basis in accordance with generally accepted accounting principles for colleges and universities except as noted hereafter.
The statement of current funds revenues and expenditures is a state- ment of financial activities of current funds related to the current reporting period and does not purport to present the results of operations or the net income or loss for the period.
Fund balance for unrestricted general operating funds includes $9,123 allocated for encumbrances and $7,193 prior period revenue overage netted to the unfunded liability of $715,567 for compensated absences payable. Fund balance for restricted current funds includes $16,557 of unearned revenue netted to the unfunded liability of $42,054 for compensated absences payable.
Fund accounting:
The accounts of the Service are maintained in accordance with the principles of fund accounting wherein resources are classified for accounting purposes into funds that are identified by the limitations and restrictions placed upon their use. Separate accounts are main- tained for each fund, however, accounts with common characteristics are combined into groups and reflected as such in the accompanying financial statements.
Inventory:
Inventory of paper and supplies are valued at cost (first-in, first- out method) .
Plant and equipment:
At June 30, 1984, investment in plant was adjusted $75,784 to reflect the totals in the property control subsidiaries.
109
MONTANA COOPERATIVE EXTENSION SERVICE /
NOTES TO FINANCIAL STATEMENTS June 30, 1984
1. Summary of significant accounting policies (continued)
Depreciation:
No provision has been made for depreciation of plant facilities in accordance with generally accepted accounting principles for colleges and universities.
Allowance for Bad Debts:
An allowance for bad debts has not been recorded. Losses from bad debts are recorded as adjustments to revenue in the year in which they are deemed uncollectable .
2. Investments
Investments are carried at cost, which approximates market value; at June 30, 1984, investments consist of the following:
Cost Montana short-term investment pool $951
$951
Investments at June 30, 1983 are owned by the following fund:
Current funds:
Restricted $951
$951
3 . Retirement plans '
All of the Service's full-time employees are members of the Montana Public Employees Retirement System, Montana Teachers Retirement System or the U.S. Civil Service Retirement System. Employer con- tributions to these plans totaled $320,946 for the year ended June 30, 1984. The State of Montana retirement plans were determined to be actually sound by the most recent biennial valuations.
4. Commitments and contingencies
Compensated absences payable:
As of December 31 of each year, employees can accumulate vacation leave up to twice the number of leave days earned annually and sick leave can be accumulated without limitation. Upon termination, the employee is paid the accumulated vacation leave and 257o of the accumulated sick leave. Vacation and sick leave payments are recorded as an expenditure at the time they are paid to the employee.
Previous financial reports have disclosed the leave liability only as a footnote. In accordance with generally accepted accounting principles the liability as of June 30, 1984 has been recorded for the first time as a liability of the applicable fund group.
110
MONTANA COOPERATIVE EXTENSION SERVICE
NOTES TO FINANCIAL STATEMENTS
June 30, 1984
Commitments and contingencies (continued)
Leases :
The Service reserves the right to limit the amount of expenditures associated with lease contracts without penalty when in the sole judgment of the Service annual funding or program changes necessitate. Lease agreements for various purposes and time periods, at June 30, 1984, are not deemed to be material to the overall financial position of the Service.
Ill
AGENCIES RESPONSE
Montana State University
Bozeman, Montana 59717
Office of the President
May 21, 198 6
Telephone (406) 994-2341
Scott A. Seacat Legislative Auditor Capitol Building, Room Helena, MT 59620
Dear Mr. Seacat:
135
RECEIVED
ptiAY 2 Y 1955
MONTANA LEGISLATIVE AUDITOR
The r recoitimenda Montana St Agricultur fiscal yea reflected recommenda as effic maintainin Federal re
esponses of Montana State University to the audit tions made relative to the audit report on the ate University, Cooperative Extension Service, and al Experiment Station financial activity for rs 1983-84 and 1984-85 are submitted herewith. As by the number and magnitude of the audit tions, we are continuing in our efforts to operate iently and effectively as possible, while g compliance with the multitude of State and gulations which govern our activities.
The evidence of our sound and responsible financial and business management is contained in the audit report. As we continue to make progress in our business affairs, we are •proud to play an active part in assisting and cooperating with the Commissioner's Office and the Board of Regents in resolving the audit issues raised and in improving communications and the relationships between the University System and the Legislature.
Your staff v/ho performed this audit were all of personal and professional quality and our staff was able to work with them in a personable and professional manner. We look forward to meeting with the Audit Committee to discuss the audit report and our responses and any other issues which may be of interest to you.
Sincerely,
William J President
Tietz
TG:ds ia/1
RECOMMENDATION #1:
WE RECOMMEND THE UNIVERSITY REPORT STUDENT FTE IN ACCORDANCE WITH REGENTS' POLICY.
RESPONSE #1:
WE CONCUR WITH THIS RECOMMENDATION. However, we believe that we were correct in our interpretation of the funding formula guidelines which clearly show the Military Science component. However, we have referred this matter to the Office of the Commissioner of Higher Education for evaluation and request a clarification based upon their interpretation.
RECOMMENDATION #2:
WE RECOMMEND THE UNIVERSITY FOLLOW STATE PURCHASING LAWS AND POLICIES.
RESPONSE #2:
WE CONCUR WITH THIS RECOMMENDATION. The Multilith Department of the Cooperative Extension Service (CES) has again submitted a request to the State Department of Administration, requesting delegated purchasing authority up to $30,000 for the purchase of paper. The granting of that level of purchasing authority will aid in Multilith' s efforts to obtain higher quality, lower cost paper in a more timely manner than is currently available through State Central Stores.
RECOMMENDATION #3:
WE RECOMI-IEND THE UNIVERSITY REQUEST FEDERAL MONIES IN A MANNER WHICH WILL MINIMIZE THE NECESSITY FOR THE STATE TO ADVANCE CASH TO FEDERAL PROGRAMS.
RESPONSE #3:
WE CONCUR WITH THIS RECOMMENDATION. At the time this matter was first brought to our attention, the Federal funds were being ordered the first of each month on a reimbursement basis. The payroll which occurs on the eleventh of each month constitutes the great majority of Federal funds ordered on a monthly basis. Thus, in June 1985, a directive was issued which changed the order date for Federal funds to the fifteenth of each month, after the main monthly payroll.
RECOMMENDATION #4:
WE RECOMMEND THAT THE UNIVERSITY ESTABLISH PROCEDURES TO FORECAST CASH NEEDS TO ENSURE POSITIVE CASH BALANCES ARE MAINTAINED IN COMPLIANCE WITH STATE LAWS.
1 13
I
RESPONSE #4:
WE CONCUR WITH THIS RECOMMENDATION. This is an issue of conflicting State Statutes which is being addressed by the State Department of Administration.
RECOMMENDATION #5:
WE RECOMMEND THE UNIVERSITY:
A. ACCRUE EXPENDITURES IN ACCORDANCE WITH STATE ACCOUNTING POLICIES.
B. CORRECT INVALID EXPENDITURE ACCRUALS.
RESPONSE #5:
WE CONCUR WITH THIS RECOMMENDATION. We make every reasonable effort to fully comply with State accounting policies which relate to expenditure accruals. The invalid expenditure accruals will be corrected prior to this fiscal year end.
RECOMMENDATION #6:
WE RECOMMEND THE UNIVERSITY DEPOSIT RECEIPTS ON A TIMELY BASIS IN ACCORDANCE WITH STATE LAW.
RESPONSE #6:
WE CONCUR WITH THIS RECOMMENDATION. The CES administration will work directly with the department involved to ensure proper and more timely deposits of receipts.
RECOMMENDATION #7:
WE RECOMMEND THE UNIVERSITY:
A. IMPROVE CONTROLS TO ENSURE ALL ITEMS DISPOSED OF AND ALL INVENTORIES ARE DELETED FROM ITS PROPERTY RECORDS.
B. ENSURE ALL STATE EQUIPMENT ITEMS ARE TAGGED AS STATE PROPERTY.
RESPONSE #7:
WE CONCUR WITH THIS RECOMMENDATION. We are taking every action possible within our limited resources to ensure the accuracy of the property listing. We are also continuing in our efforts to identify and tag State property which was not properly tagged in years past .
114
THE MONTANA UNIVERSITY SYSTEM
33 SOUTH LAST CHANCE GULCH
HELENA, MONTANA 59620-2602
(406) 444-6570
COMMfSSIONER OF HIGHER EDUCATION
, .cX-'^J vcu
MAY 2 7 i955
MONTANA LEGISLATIVE AUDITOR
May 23, 1986
Scott A. Seacat Legislative Auditor Room 135, State Capitol Helena, Montana 59620
Dear Mr. Seacat,
The response for the Montana State University audit is attached. I appreciate the opportunity that you provide for my staff to participate in all entrance and exit conferences.
Sincerely,
O^
.^ ^/-
Carrol Krause
Commissioner of Higher Education
CK/JHN/llt
Attachment
115
THE MONTANA UNIVERSITY SYSTEM CONSISTS OF THE UNIVERSITY OF MONTANA AT MISSOULA, MONTANA STATE UNIVERSITY AT BOZEMAN, MONTANA COLLEGE OF MINERAL SCIENCE AND TECHNOLOGY AT BUTTE, WESTERN MONTANA COLLEGE AT DILLON, EASTERN MONTANA COLLEGE AT BILLINGS
AND NORTHERN MONTANA COLLEGE AT HAVRE.
RECOMMENDATION #1
We recommend the University report student FTE in accordance with Regents policy.
Agency Response:
Concur .
Vie will review the reporting criteria for restricted credit hours as they would pertain to military science programs and revise our practice if necessary.
A few additional facts are relevant to the auditor's finding.
1. The study that established the funding formula for higher education in 1981 included military science in the unre- stricted portion of the formula (see page 39 of the Final Report) .
2. While the salaries of the faculty are paid directly by the military, the state must pick up the other program costs and provide the facilities. The student must pay the tuition costs for the enrolled credit hours and the tuition revenue is deposited in the unrestricted funds as general fund offset. If we are going to treat the student credit hour production as restricted, the tuitions collected must also be segregated into the restricted account.
16
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