Comprehensive Annual Financial Report

143 Pages·2016·4.43 MB·English

Comprehensive Annual Financial Report
A component unit of the state of South Carolina
For the year ended June 30, 2016
Prepared by the
Office of Financial Services
COASTAL CAROLINA UNIVERSITY
FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
TABLE OF CONTENTS

Page
INTRODUCTORY SECTION
President’s Letter............................................................................................................................... 3
Letter of Transmittal.......................................................................................................................... 9
GFOA Certificate of Achievement .................................................................................................... 17
Board of Trustees .............................................................................................................................. 18
Administrative Officers ..................................................................................................................... 19
Finance and Administration .............................................................................................................. 20
Organizational Chart ......................................................................................................................... 22

FINANCIAL SECTION
Independent Auditor’s Report on the Financial Statements ...............................................................27
Management’s Discussion and Analysis ............................................................................................31
Basic Financial Statements
Statement of Net Position ............................................................................................................41
Statement of Revenues, Expenses and Changes in Net Position .................................................42
Statement of Cash Flows ..............................................................................................................43
*Nongovernmental Component Unit – Coastal Educational Foundation
Statement of Financial Position .............................................................................................44
Statement of Activities ............................................................................................................45
*Nongovernmental Component Unit – CCU Student Housing Foundation
Consolidated Statement of Financial Position ........................................................................46
Consolidated Statement of Activities......................................................................................47
*Nongovernmental Component Unit – Chanticleer Athletic Foundation
Statement of Financial Position ..............................................................................................48
Statement of Activities ............................................................................................................49
Notes to Financial Statements ......................................................................................................50
Required Supplementary Information ................................................................................................87
Other Financial Information 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) .......93
Schedule Reconciling State Appropriations per the Financial Statements to State
Appropriations Recorded in State Accounting Records ........................................................94
Schedule of Tuition Fees for the Year Ended June 30, 2016 ........................................................95

STATISTICAL SECTION
Financial Trends ..........................................................................................................................99
Schedule 1-Net Position by Component ....................................................................................101
Schedule 2-Major Revenue Sources ..........................................................................................101
Schedule 3-Expenses by Function .............................................................................................102
Schedule 4-Expenses by Use .....................................................................................................103
Schedule 5-Other Changes in Position ......................................................................................104

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COASTAL CAROLINA UNIVERSITY
FINANCIAL STATEMENTS
For the Year Ended June 30, 2016
TABLE OF CONTENTS

Page
Revenue Capacity ........................................................................................................................105
Schedule 6-Applications, Enrollment and Degrees Awarded....................................................106
Schedule 7-Undergraduate Annual Required Tuition and Fees at South
Carolina Public Four-Year Institutions ..................................................................................107
Debt Capacity ...............................................................................................................................109
Schedule 8-Ratios of Outstanding Debt ....................................................................................110
Schedule 9-Debt Service Coverage on Revenue Bonds ............................................................111
Schedule 10-Debt Service Coverage on General Obligation Bonds .........................................112
Demographic and Economic Information .................................................................................113
Schedule 11-South Carolina Employment by Industry .............................................................114
Schedule 12-Top 10 Employers, Horry County, South Carolina ..............................................115
Schedule 13-State and Regional Population, Income and Unemployment History ..................116
Operating Information ................................................................................................................117
Schedule 14-SAT Scores, New Freshmen .................................................................................118
Schedule 15-Average Faculty Salaries by Rank ........................................................................119
Schedule 16-Faculty, Staff and Administrative Statistics .........................................................120
Schedule 17-Capital Asset Information .....................................................................................121

SINGLE AUDIT SECTION
Independent Auditors’ Report on Compliance for each Major Program and on
Internal Control over Compliance Required by The Uniform Guidance ..............................125
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 ........................................127
Summary Schedule of Prior Audit Findings .............................................................................129
Schedule of Findings and Questioned Costs .............................................................................130
Schedule of Federal Financial Assistance for the Year Ended June 30, 2016 ..........................132
Notes to Schedule of Expenditures of Federal Awards for the Year Ended
June 30, 2016 ........................................................................................................................137

*Financial Statements included in this report for nongovernmental entities will include the words “Net Assets” as opposed to
“Net Position.” Nongovernmental entities are not required to implement GASB statements.

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COASTAL CAROLINA UNIVERSITY
COMPREHENSIVE ANNUAL FINANCIAL REPORT

INTRODUCTORY SECTION

Springs Brooks Stadium at Coastal Carolina University

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Office of the President

December 1, 2016

Dear Coastal Carolina University Community:

Coastal Carolina University has experienced more than three decades of sustained growth. This
trend continues, as the Fall 2016 semester reported a total enrollment surpassing 10,400 students.
I am proud of the University and enthusiastic about the plans we have for the future. It is my
sincere belief that Coastal Carolina University, with the enduring support of the campus
community, Horry County and the State of South Carolina, will continue to prosper and thrive.

Coastal Carolina University continues to focus on differentiating itself from the other
comprehensive higher education choices in South Carolina and to continue to strengthen our
reputation for providing excellent value and outstanding quality in educational programming.
Reflective of the growing breadth of the academic program, Coastal Carolina University offers
seventy-two (72) baccalaureate areas of study, eighteen (18) master’s degree programs, two (2)
educational specialist degrees, and one (1) Ph.D. program. Additionally, CCU offers six (6)
undergraduate certificates and five (5) graduate certificates.

This past fall, CCU enrolled its most academically prepared, most diverse freshman class. A total
of 2,368 freshman were enrolled, a 43 percent growth since 2008. Minority enrollment for
freshman increased to 29 percent. CCU’s Honors program also saw a 15.7 percent increase in
enrollment from the previous year, with 428 students enrolled in the program.

“I’M IN,” the Endowment Campaign for Coastal Carolina University was publicly launched
during an on-campus gala. The goal of the campaign is to increase CCU’s endowment by $20
million by 2020. In doing so, the University would gain approximately $800,000 in new funds
annually to support student scholarships and academic excellence. The campaign is strategically
focused on clearing financial barriers that prevent the best and brightest students from achieving
their greatest potential through higher education and on positioning CCU to support the highest
quality academic programs. These measures ensure that the University can attract and retain the
brightest students and the finest faculty to instruct and train these future leaders. We are very
cognizant of the fact that we must increase the size of our endowment if we are to keep pace with
an ever-changing educational environment, continue to expand our academic programs and
provide greater access to students from a wide range of ethnic and socioeconomic backgrounds.

Following are some of our most significant accomplishments for the 2015-2016 Academic Year:

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• Over the past year Coastal received the following distinctions:

- U.S. News & World Report: “Top Public Schools” & “Best Value” & “Best Colleges for
Veteran’s”
- Victory Media: “Military-Friendly School” for the sixth consecutive year (top 20% of
all schools nationwide as a university committed to educating military veterans.)
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- Chronicle of Higher Education: “19 Fastest Growing Public Master’s Institution,”
based on growth from 2002-2012
- Best Values Schools: Most Beautiful Coastal College Campuses (#12 of the top 30)
- TheBestSchools.org: Best Online Colleges in South Carolina (#7 of 53)
- College Choice: Best Oceanside Colleges and Universities (top 50 in the country)
- U.S. News Short List: 100 percent of May 2015 MBA graduates from CCU’s E. Craig
Wall Sr. College of Business Administration were employed within three months of
graduation. CCU tied for first place with the University of Southern Florida of 14
programs that have the best job-placement record among its graduates.

• Nearly 150 high school graduates were accepted into the Coastal Excellence and
Leadership (CEal) program at CCU for the summer session, tripling the program in size in
just two years. CEal students are selected because they have demonstrated exceptional
academic skills and leadership, but insufficient standardized test scores for college
admission. Students attend a summer session for four weeks and reside in University
housing. They complete two accelerated academic core courses and are introduced to the
rigors of academic study. CEal students are also provided leadership programming and
exclusive access to CCU faculty, staff and administration. Students are expected to at least
a C in both academic courses and, if successful, matriculate into the freshman class.

• The Board of Trustees approved the following new degrees:

- Master’s Degree programs: Master of Arts in Health Communication, Master of
Arts in Music Technology, Master of Education in Instructional Technology,
Master of Education (M.Ed.) in Language, Literacy and Culture
- Bachelor’s Degree programs: Bachelor of Arts in Anthropology and Geography
and Bachelor of Arts in Hispanic Studies

There are also two new undergraduate certificate programs, one in Applied Ethics and the
other in Sustainability.

• Coastal Carolina University is still reeling in the excitement of its first NCAA title in any
sport in school history. Coastal Carolina staved off a furious comeback attempt from
Arizona to win Game 3 of the College World Series Finals 4-3. Following a marathon ride
through the 2016 NCAA Baseball Tournament, the Chanticleers became the first team
since Minnesota in 1956 to win the title in its first College World Series appearance.
Additionally, pitcher Andrew Beckwith was named the Most Outstanding Player of the
series.

• After leading CCU to its first-ever trip to the 2016 College World Series, Chanticleer head
coach Gary Gilmore was named to National Collegiate Baseball Writers Association
National Coach of the Year.
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