2013 Comprehensive Annual Financial Report

127 Pages·2014·5.04 MB·English

Comprehensive Annual Financial Report
A component unit of the State of South Carolina
For the Fiscal Year Ended June 30, 2013
Prepared by the
Office of the Vice President for Finance and Administration
COASTAL CAROLINA UNIVERSITY
FINANCIAL STATEMENTS
For the Year Ended June 30, 2013

TABLE OF CONTENTS

Page
INTRODUCTORY SECTION
President’s Letter .............................................................................................................................. 3
Letter of Transmittal ......................................................................................................................... 7
GFOA Certificate of Achievement ................................................................................................... 14
Board of Trustees ............................................................................................................................. 15
Administrative Officers .................................................................................................................... 16
Finance and Administration ............................................................................................................. 17
Organizational Chart ........................................................................................................................ 19

FINANCIAL SECTION
Independent Auditor's Report on the Financial Statements ............................................................. 26
Management’s Discussion and Analysis ........................................................................................... 29
Basic Financial Statements
Statement of Net Position ............................................................................................................ 37
Statement of Revenues, Expenses and Changes in Net Position ................................................ 38
Statement of Cash Flows ............................................................................................................. 39
Non-governmental Component Unit – Coastal Educational Foundation
Statement of Financial Position ............................................................................................ 40
Statement of Activity and Change in Net Assets ................................................................... 41
Non-governmental Component Unit – CCU Student Housing Foundation
Consolidated Statement of Financial Position ....................................................................... 42
Consolidated Statement of Activities ..................................................................................... 43
Non-governmental Component Unit – Chanticleer Athletic Foundation
Statement of Financial Position ............................................................................................. 44
Statement of Activity and Change in Net Assets ................................................................... 45
Notes to Financial Statements ........................................................................................................... 46
Supplementary Schedules Required by the Office of the South Carolina Comptroller General
Schedule of Information on Business-Type Activities Required for the Government-Wide
Statement of Activities in the State Comprehensive Annual Financial Report (CAFR) ...... 80
Schedule Reconciling State Appropriations per the Financial Statements to State
Appropriations Recorded in State Accounting Records ....................................................... 81
Schedule of Tuition Fees for the Year Ended June 30, 2013 ........................................................ 82

STATISTICAL SECTION
Financial Trends ......................................................................................................................... 85
Schedule 1-Net Position by Component ................................................................................... 86
Schedule 2-Major Revenue Sources ......................................................................................... 87
Schedule 3-Expenses by Function ........................................................................................... 88
Schedule 4-Expenses by Use .................................................................................................... 89
Schedule 5-Other Changes in Net Assets ................................................................................. 90

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Continued
Page
Revenue Capacity ....................................................................................................................... 91
Schedule 6-Applications, Enrollment, and Degrees Awarded .................................................. 92
Schedule 7-Undergraduate Annual Required Tuition and Fees at South
Carolina Public Four-Year Institutions ................................................................................. 93
Debt Capacity .............................................................................................................................. 95
Schedule 8-Ratios of Outstanding Debt .................................................................................... 96
Schedule 9-Debt Service Coverage on Revenue Bonds ........................................................... 97
Schedule 10-Debt Service Coverage on General Obligation Bonds......................................... 98
Demographic and Economic Information ................................................................................ 99
Schedule 11-South Carolina Employment by Industry ............................................................ 100
Schedule 12-Top 10 Employers, Horry County, South Carolina ............................................. 101
Schedule 13-State and Regional Population, Income and Unemployment History.................. 102
Operating Information ............................................................................................................... 103
Schedule 14-SAT Scores, New Freshmen ................................................................................ 104
Schedule 15-Average Faculty Salaries by Rank ....................................................................... 105
Schedule 16-Faculty, Staff and Administrative Statistics ......................................................... 106
Schedule 17-Capital Asset Information .................................................................................... 107

SINGLE AUDIT SECTION
Schedule of Federal Financial Assistance for the Year Ended June 30, 2013 ......................... 110
Notes to Schedule of Expenditures of Federal Awards for the Year Ended
June 30, 2013 ....................................................................................................................... 114
Independent Auditors’ Report on Compliance
for each Major Program and on Internal Control over Compliance
Required by OMB Circular A-133 ...................................................................................... 115
Independent Auditors’ Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards ........................................ 118
Summary Schedule of Prior Audit Findings ............................................................................ 120
Schedule of Findings and Questioned Costs ............................................................................ 121

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COASTAL CAROLINA UNIVERSITY
COMPREHENSIVE ANNUAL FINANCIAL REPORT

INTRODUCTORY SECTION

Edward M. Singleton Building

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Office of the President

November 1, 2013

Dear Coastal Carolina University Community:

This is my seventh year serving as President of Coastal Carolina University, and I am both proud
of our accomplishments and determined to continue our efforts to become the public
comprehensive university of choice in South Carolina. We will accomplish this by managing
growth, safeguarding financial viability, meeting educational needs and ensuring success for our
students, faculty and staff. The University has made great strides in implementing its 2008-2013
Strategic Plan, "Tradition, Integrity, Excellence: Building a Comprehensive University," which
provides a guide that links the University’s strategic direction to budgeting and continual outcome-
based assessment. The strategic plan is being updated during the 2013-2014 academic year.

Over the past ten years, Coastal Carolina University has been the fastest growing public university
in South Carolina with a 56.1 percent increase in headcount enrollment. Given more than three
decades of sustained growth, attempts have been made to slow expansion to a more manageable
rate, ensuring that we continue to provide a quality educational experience to our students. Growth
continues as the Fall 2012 semester reported a total enrollment of 9,335 with a corresponding full-
time equivalent enrollment of 8,859.

The University has not raised tuition for in-state students for two consecutive years. We are
committed to keeping tuition flat for in-state students next year as well, but can only accomplish
this goal through increased funding from the State. In FY2014, Public Universities’ recurring funds
received as a percentage of their individual total budget as approved by the State range from 4.9 percent
to 20.7 percent, with Coastal Carolina University receiving the lowest percentage at 4.9. The next
highest university is 6.6 percent, with most schools falling in the 8 to 9 percent range.

Following are some of our most significant accomplishments for the 2012-2013 Academic Year:
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 Over the past year Coastal received the following distinctions:
- Forbes: “America’s Best Colleges”
- U.S. News & World Report: first tier “2013 Best Regional Universities Rankings”
- Center for College Affordability and Productivity: one of top “250 Best Public Colleges
Universities in the South”
- S.C. College of Distinction inclusion
- G.I. Jobs Magazine and Military Advanced Education: “Military-Friendly School”
- Institutional Research & Evaluation, Inc.: one of “America’s 100 Best College Buys”
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 The SACS reaffirmation process was completed December 2012 when the University
received the final notification of accreditation status without one recommendation for
improvement – a rarity in today’s reaccreditation outcomes. In addition, Coastal Carolina
University's Spadoni College of Education received reaccreditation by the National
Council for Accreditation of Teacher Education (NCATE), a professional organization that
oversees teacher education. The E. Craig Wall Sr. College of Business Administration also
maintained its accreditation by the Association to Advance Collegiate Schools of Business
(AACSB) International.

 The University’s Quality Enhancement Plan,