Comprehensive Annual Financial Report - Coastal Carolina University

127 Pages·2012·3.2 MB·English

Comprehensive Annual Financial Report
Included in the Higher Education Fund, an Enterprise Fund of the State of South Carolina
For the Fiscal Year Ended June 30, 2012
Prepared by the
Office of the Vice President for Finance and Administration
COASTAL CAROLINA UNIVERSITY
FINANCIAL STATEMENTS
For the Year Ended June 30, 2012

TABLE OF CONTENTS

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

FINANCIAL SECTION
Independent Auditor's Report on the Financial Statements ............................................................. 27
Management’s Discussion and Analysis ........................................................................................... 29
Basic Financial Statements
Statement of Net Assets .............................................................................................................. 37
Statement of Revenues, Expenses and Changes in Net Assets ................................................... 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
Statement of Financial Position ............................................................................................. 42
Consolidated Statement of Activity and Change in Net Assets ............................................. 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) ...... 79
Schedule Reconciling State Appropriation per the Financial Statements to the State
Appropriation Recorded in State Accounting Records ......................................................... 80
Schedule of Tuition Fees for the Year Ended June 30, 2012 ........................................................ 81

STATISTICAL SECTION
Financial Trends ......................................................................................................................... 85
Schedule 1-Net Assets 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 Tuition and Fees at all 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 and Georgetown Counties, South Carolina................ 101
Schedule 13-State and Regional Population, Income and Unemployment History.................. 102
Operating Information ............................................................................................................... 103
Schedule 14-S.A.T. 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, 2012 ......................... 110
Notes to Schedule of Expenditures of Federal Awards for the Year Ended
June 30, 2012 ....................................................................................................................... 114
Independent Auditors’ Report on Compliance with Requirements
Applicable to Each Major Program and Internal Control over Compliance
in Accordance with 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 ........................................ 117
Summary Schedule of Prior Audit Findings ............................................................................ 119
Schedule of Findings and Questioned Costs ............................................................................ 120

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COASTAL CAROLINA UNIVERSITY
COMPREHENSIVE ANNUAL FINANCIAL REPORT

INTRODUCTORY SECTION

Atheneum Porch

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Office of the President

November 15, 2012

Dear Coastal Carolina University Community:

As Coastal Carolina University enters its twentieth year as an independent institution, I am
proud of the University and enthusiastic about the plans we have for the future. The University
continues to implement its 2008-2013 Strategic Plan, entitled "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
will be updated during the 2012-2013 academic year.

Coastal Carolina University has experienced more than three decades of sustained growth.
Increases in admissions continue as the Fall 2011 semester reported a total enrollment of 9,084
with a corresponding full-time equivalent enrollment of 8,720. Growth is also expressed by
the Fall 2011 headcount enrollment increase of 83% over the last ten years. This expansion
has been accompanied by increased high school grade point averages on the part of accepted
students.

I am most pleased with our decision not to increase in-state undergraduate tuition or any
associated fees for 2012. In fact, we went one small step further by awarding all in-state
students a $50 per semester credit against their tuition costs.

The following are some of the other milestones that were achieved in the 2011-2012 Academic
Year:

• Over the past year Coastal received the following distinctions:
- Forbes: America’s Top Colleges
- U. S. News & World Report: Best Colleges
- S.C. College of Distinction
- G.I. Jobs Magazine: Military-Friendly School

• Coastal Carolina University completed the Southern Association of Colleges and Schools
(SACS) accreditation process with no reported negative findings. The University’s Quality
Enhancement Plan,
Security Studies, was approved, and authorization was received for four concentrations in
Communications and five in Management. The University plans to move forward with the
establishment of its first-ever doctoral program since new legislation was approved allowing
formation of same for Marine Science.

• Coastal Carolina University marked the graduation of the first student to complete its Sino-
American 1+2+1 Double Degree Program, an academic partnership that the University has
participated in since 2007. The program is jointly sponsored by the American Association of
State Colleges and Universities (AASCU) and the China Center for International Educational
Exchange (CCIEE).

• The Investments Laboratory in the E. Craig Wall Sr. College of Business Administration
opened. The state-of-the-art lab is equipped with a 15-foot ticker display, two large screen
televisions, 22 student terminals, and world-class investment management software.

• Graduation rates remain steady with Coastal’s 2005 cohort rate of 46%, the fourth highest
rate for comprehensive teaching colleges and universities in the State of South Carolina. The
six-year graduation rate for African-American students has increased by 10.2% for the cohort
groups 2001 – 2005.

• During the 2011-2012 academic year, more than 1,100 students were offered internships at
over 500 employers. The CCU Internship Program was developed and a Director of Internships
and Service Learning appointed.

• Coastal Carolina University was named to the 2012 President’s Higher Education
Community Service Honor Roll, an annual recognition program that celebrates exemplary
commitment to service and volunteering from institutions of higher education. In 2011-2012,
350 students were engaged in academic service learning, 2,811 were engaged in some type of
community service, and 23,309 total hours were volunteered by Coastal students.

• The University’s Dalton and Linda Floyd Family Mentoring Program provides mentoring
support to 4th- through 10th-grade students deemed at-risk for continuing through high school
in the Horry and Georgetown county school districts. In 2011-2012, 427 students from 31
elementary, middle and high schools in Horry and Georgetown counties participated in the
program.

• The University has been a voluntary partner with the Veterans Administration through the
Yellow Ribbon Program since 2009. From 2009 – 2012 the University assisted 30 veteran
students with matching funds totaling $22,500.

• The Scholars Academy is a unique high school operated by the Horry County School District
on the Coastal Carolina University campus. Top academic ninth and tenth grade students from
the district are brought to the Coastal campus to take courses in special sections made available
for them at their grade level. As early as their sophomore year students may take select college-
level courses in the same sections as Coastal students. An agreement has been reached with
the school district for a dedicated building to be erected on the University grounds to house the
Scholars Academy.

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