Statement of Use Policy Statement of Cash Flows Template Using the Direct Method North Carolina Community Colleges

The accompanying "Statement of Cash Flows Template Using the Direct Method - NC Community Colleges" was developed by the North Carolina Office of the State Controller (OSC) with assistance from Durham Technical Community College, Craven Community College, and the University of North Carolina Office of the President. Except for North Carolina public colleges and universities, we request that users make reference to OSC as the developer of the accompanying template. Also, users should provide OSC with samples of any materials utilizing this template or parts thereof. If you have any questions, please contact Clayton Murphy at (919) 981-5474 or cmurphy@ncosc.net Mailing Address State of North Carolina Office of the State Controller 1410 Mail Service Center Raleigh, NC 27699-1410 Revised August 30, 2005

Statement of Cash Flows Template Using the Direct Method North Carolina Community Colleges
General Enter name of institution (cell "E6") Name of institution Name of College

Data Input (Steps 1 - 6) Checklist Step 1 Prepare comparative statement of net assets (Exhibit A) - Recast balances into the GASB-34 format - Present assets and liabilities in a "classified" format, including separate reporting of restricted assets - Eliminate due from/due to other funds and related operating statement effects - Report capital assets net of accumulated depreciation - Reclassify fund equity into the 3 categories of net assets - Restate prior year balances for any classification changes Step 2 Prepare Statement of Revenues, Expenses, and Changes in Net Assets (Exhibit B) - Recast amounts into the GASB-34 format - Report operating expenses by natural classification (salaries/wages, utilities, etc) - Eliminate transfers between funds - Reduce amount expended for plant facilities in Unexpended Plant by corresponding amount in Investment in Plant (classify net amount as "Supplies and materials") - Eliminate amount for disposal of plant facilities (Note: only report gain/loss on sale) - Report scholarship discounts and allowances as contra-revenues (not as revenues and financial aid expenses) except if developed as employee benefits or received from third party payors to satisfy fees of specified students (NACUBO AR 2000-05) - Report uncollectible amounts related to revenues of the current period as contra-revenues (not as bad debt expense, except for notes receivable) - Eliminate double counting inherent to internal service funds and transactions between an institution and its auxiliary enterprises - Report depreciation expense on capital assets Step 3 Prepare changes in capital assets worksheet (Exhibit C) - (Note: Required note disclosure under GASB Statement 34.) Step 4 Prepare changes in long-term debt worksheet (Exhibit D) - (Note: Required note disclosure under GASB Statement 34.) Step 5 Prepare analysis of receivables, payables, and other items worksheet (Exhibit E) - (Note: includes additional information necessary to prepare a statement of cash flows.) Step 6 The template will automatically generate the cash flow worksheet (Exhibit F) and the statement of cash flows (Exhibit G). Do not enter any data in these exhibits. - Review for accuracy and make any other adjustments deemed necessary - Template has been completed in accordance with all accounting rules (see Exhibit E) - All of the error checks display "OK" as opposed to "ERROR"

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Exhibit A

Name of College Statement of Net Assets June 30, 2005 and 2004

2005

2004

Change

ASSETS
Current assets: Cash and cash equivalents Restricted cash and cash equivalents Short-term investments Restricted short-term investments Receivables, net Due from primary government Due from State of NC component units Due from College component units Inventories Prepaid items Notes receivable, net Total current assets Noncurrent assets: Restricted cash and cash equivalents Receivables, net Restricted due from primary government Endowment investments Other long-term investments Notes receivable, net Capital assets - nondepreciable Capital assets - depreciable, net Total noncurrent assets Total assets $ $ $ A-1 A-1 ExhE ExhE ExhE ExhE ExhE ExhE A-2 A-3 ExhE

A-1 ExhE ExhE ExhE ExhE ExhE ExhC ExhC

LIABILITIES
Current liabilities: Accounts payable and accrued liabilities Due to primary government Due to State of North Carolina component units Deferred revenue Funds held for others Long-term liabilities - current portion Total current liabilities Noncurrent liabilities: Funds held for others US government grants refundable Long-term liabilities Total noncurrent liabilities Total liabilities ExhE A-4 A-5 ExhE ExhE ExhD

ExhE A-6 ExhD

Page 3 of 42

Exhibit A, cont.

Name of College Statement of Net Assets June 30, 2005 and 2004

2005

2004

Change

NET ASSETS
Invested in capital assets, net of related debt Restricted for: Nonexpendable: Scholarships and fellowships Loans Other Expendable: Scholarships and fellowships Loans Capital projects Other Unrestricted Total net assets -

Page 4 of 42

Exhibit A, cont.

Name of College Statement of Net Assets June 30, 2005 and 2004

Notes (1) GASB 34 requires institutions to present assets and liabilities in a "classified" format, including separate reporting of restricted assets. Individual assets and liabilities are classified as current or long-term based on whether that are expected to generate or use cash within 12 months of the end of the fiscal period. Restricted assets that can be used for current operations (e.g., certain grant revenues) should be reported as current assets. Restricted assets that cannot be used for current operations (e.g. restricted for acquisition/construction of capital assets or segregated for the liquidation of long-term debt) should be reported as noncurrent assets. Unrestricted cash and cash equivalents classified as current assets equals the following: - Balances in the unrestricted general and proprietary funds. Restricted cash and cash equivalents classified as current assets equals the following: - Balances in the restricted and loan funds. - Balances in plant funds equal to the amount of current liabilities. Restricted cash and cash equivalents classified as noncurrent assets equals the following: - Balances in the endowment and agency funds. - Balances in plant funds not reported as current restricted. Restricted short-term investments equals the following: - Short-term investment balances in the restricted and loan funds. Receivables are reported net of allowances for doubtful accounts. Noncurrent receivables consist of the following: - Noncurrent portion of pledges receivable. Restricted due from primary government equals the following: - Receivables from DCC in the plant fund that are restricted for expenditure in the acquisition or construction of capital assets (e.g., higher education bond monies and CI appropriations). US government grants refundable classified as noncurrent liabilities equals the following: - The refundable portion of Perkins grants reported in loan funds. Net assets invested in capital assets, net of related debt equals the following: (Note: This amount is automatically calculated by EXCEL upon completing Exhibits C, D and E)
Capital assets Less: Accumulated depreciation Less: Outstanding principal of related debt Net assets, invested in capital assets, net of related debt

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(i.e., Notes payable and capital leases payable)

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Exhibit A, cont.

Name of College Statement of Net Assets June 30, 2005 and 2004

(10) Net assets should be reported as restricted when constraints placed on asset use are externally imposed by creditors, grantors, or laws or regulations of other governments (see new SIG policy on "Net Assets"). - Restricted nonexpendable net assets should include "true endowments" and exclude "quasi-endowments" - Restricted expendable net assets should include the corpus of quasi-endowments if the donor stipulated that the resources must be used for specific purposes, current restricted funds, loan funds, and unexpended plant funds that are restricted. - Net assets restricted for capital projects should equal the restricted fund balance of the unexpended plant fund plus any liabilities reclassified to net assets invested in capital assets. (11) Unrestricted net assets should include the corpus of quasi-endowments if the donor stipulated that the resources could be used for anything determined by the institution. Also, it should include all other unrestricted funds (Note: amount may be negative).

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Exhibit B

Name of College Statement of Revenues, Expenses, and Changes in Net Assets For the Fiscal Year Ended June 30, 2005

2005 OPERATING REVENUES Student tuition and fees, net Federal grants and contracts State and local grants and contracts Nongovernmental grants and contracts Sales and services, net Other operating revenues Total operating revenues OPERATING EXPENSES Personal services Supplies and materials Services Scholarships and fellowships Utilities Depreciation Total operating expenses Operating loss NONOPERATING REVENUES (EXPENSES) State aid County appropriations Noncapital grants Noncapital gifts, net Investment income, net Interest and fees on debt Other nonoperating revenues (expenses) Net nonoperating revenues Income before other revenues, expenses, gains, and losses State capital aid County capital appropriations Capital grants Capital gifts, net Additions to endowments Special items Extraordinary items Increase (decrease) in net assets Net assets, July 1 Restatement Net assets, June 30 $ B-1 B-2 B-3 B-4 B-5 ExhE

B-6 B-7 B-8 B-9 B-10 B-11

B-12 B-13 B-14 B-15 ExhE B-16 ExhE

B-17 B-18 B-19 B-20 B-21 ExhE ExhE

Page 7 of 42

Exhibit B, cont.

Name of College Statement of Revenues, Expenses, and Changes in Net Assets For the Fiscal Year Ended June 30, 2005

Notes (1) Revenues are reported net of discounts and allowances. Allowances related to revenues of the current period include the following: - Scholarship allowances related to student tuition and fees - Uncollectibles related to student tuition and fees - Uncollectibles related to sales and services - Uncollectibles related to noncapital gifts - Uncollectibles related to capital gifts Tuition remission policies developed as employee benefits should be accounted for as compensation expense and not as a scholarship allowance to tuition because the tuition remission was given in exchange for services. Federal grants and contracts classified as operating revenues include the following: - Revenues recognized for Pell, SEOG, and college work study grants; and other federal revenues related to exchange and exchange-like transactions. State, local, and nongovernmental grants and contracts classified as operating revenues include the following: - Other grant and contract revenues related to exchange and exchange-like transactions. State aid classified as nonoperating revenues should include the following: - Certifications received from DCC for operating purposes. Noncapital grants classified as nonoperating revenues should include the following: - Noncapital federal, State, local and nongovernmental grant revenues (include grants from other State agencies but exclude certifications from DCC). State capital aid reported below nonoperating revenues should include the following: - DCC bond and CI revenues restricted for capital projects.

(2)

(3)

(4)

(5)

(6)

(7)

Error Checks - Ending net assets agrees with balance sheet - Beginning net assets agrees with balance sheet OK OK

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Name of College Changes in Capital Assets For the Fiscal Year Ended June 30, 2005

Exhibit C

Beginning Balance Capital assets, non-depreciable: Land Art, literature, and artifacts Construction in progress Total capital assets, non-depreciable (Note: should equal total on Exhibit A) Capital assets, depreciable: Buildings General infrastructure Machinery and equipment Art, literature, and artifacts Intangible assets Totals Less accumulated depreciation for: Buildings General infrastructure Machinery and equipment Art, literature and artifacts Intangible assets Totals Total capital assets, depreciable, net (Note: should equal total on Exhibit A) Capital assets, net $ OK OK $ $ $

Prior Year Adjustments $

Increases $

Decreases $

Ending Balances OK

OK $

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Name of College Changes in Capital Assets

Exhibit C, cont.

Capital assets - increases: Acquisitions: Purchased/constructed Capital leases/other similar financings (noncash) Donations at fair value (noncash) Interest expense capitalized Less: interest income capitalized Reclassifications - construction in progress Total (Note: should equal column J, row 12 plus row 20.) Capital assets - decreases: Cost of capital assets sold Cost of capital assets written off (noncash)1 Reclassifications - construction in progress Total (Note: should equal column L, row 12 plus row 20) Accumulated depreciation - decreases: Accumulated depreciation on capital assets sold Accumulated depreciation on capital assets written off Total (Note: should equal column L, row 27.) Other Information Proceeds from sale of capital assets:

OK

C-1 C-2 (Include notes payable issued for noncash consideration - e.g., building) C-3 C-4 C-5

OK

C-6

OK

OK

C-7

(Must complete Exhibit E to eliminate "ERROR' message) -

Automatic Calculation (must equal above) Cost of capital assets sold Less: Accumulated depreciation on capital assets sold Plus: Gain (loss) on sale of capital assets per Exhibit E Plus: Gain (loss) reported as special item per Exhibit E Proceeds from sale of capital assets

E-46 E-53

Note (1) If capital assets written off are not fully depreciated, insignificant losses on writeoffs could be eliminated by adjusting the current period's depreciation expense by the amount of the gain or loss (Note: losses on writeoffs that are not eliminated should be reported on Exhibit E "Other nonoperating revenues (expenses) - Loss on write-offs of capital assets". (2) General infrastructure includes all assets previously recorded as Other Structures and Improvements. In the year of implementation, each institution should expense their library books (Note: see updated "Libraries Policy" on the SIG).

Page 10 of 42

Name of College Changes in Long-term Liabilities For the Fiscal Year Ended June 30, 2005

Exhibit D

Beginning Balances Notes payable Capital leases payable Compensated absences Total long-term liabilities $ -

Prior Year Adjustments $ $ -

Additions $ $ -

Reductions $ D-3 $ -

Ending Balances
D-2 $ D-4

Due Within One Year $ $ -

Change -

D-5

Notes payable - additions: Cash proceeds from financing agreements Noncash financing agreements Total (Note: should equal column H, row 8)

OK

D-1 D-6

(Include notes payable issued for noncash consideration - e.g., building)

Note: "Beginning Balances" and "Ending Balances" include current and noncurrent portions. Error Checks
Total beginning balances equal current and noncurrent portions per balance sheet Total due within one year equals Long-term liabilities-current portion per balance sheet Total ending balances less due within one year equals Long-term liabilities (noncurrent) per balance sheet

OK OK

OK

Page 11 of 42

Name of College Analysis of Receivables, Payables, and Other Items - FY Ended June 30, 2004 2005 Receivables, net Accounts receivable - tuition and fees, net Accounts receivable - sales and services/other operating Accounts receivable - students (financial aid, etc.) Accounts receivable - nonoperating (related to misc. nonoperating revenues) Accounts receivable - travel advances to employees Intergovernmental receivable - operating (Pell, SEOG, and college work study only) Intergovernmental receivable - noncapital Intergovernmental receivable - capital Private grantors receivable - operating (exchange transactions only) Private grantors receivable - noncapital Private grantors receivable - capital Pledges receivable - noncapital (current and noncurrent) Pledges receivable - capital (current and noncurrent) Interest receivable - investments Interest receivable - loans Total (Note: should equal total on Exhibit A) Due from primary government (current and noncurrent/restricted) DCC certification receivable - noncapital (typically will be zero) DCC bond and CI receivable - capital Other State agencies - noncapital Total (Note: should equal amount on Exhibit A) Due from State of NC component units Due from State of NC component units - noncapital Due from State of NC component units - capital Total (Note: should equal amount on Exhibit A) Due from College component units Due from College component units - noncapital Due from College component units - capital Total (Note: should equal amount on Exhibit A) Page 12 of 42 2004 Change

Exhibit E

OK OK

OK OK

OK OK

OK OK

Name of College Analysis of Receivables, Payables, and Other Items - FY Ended June 30, 2004 2005 Accounts payable and accrued liabilities Accounts payable - operating goods and services Accounts payable - capital assets (related to assets capitalized on Exhibit A) Accrued payroll Contracts payable Intergovernmental payable - noncapital Intergovernmental payable - capital Private grantors payable - noncapital Private grantors payable - capital Interest payable Total (Note: should equal amount on Exhibit A) Deferred revenue Student tuition and fees Operating grants/contracts; sales/services (related to operating revenues only) Noncapital grants Noncapital gifts Capital grants Capital gifts Total (Note: should equal amount on Exhibit A) Funds held for others (current and noncurrent) Funds held for employees - flexible spending accounts Fund held for students - payments from third parties to satisfy fees of specified students (e.g, tuition, books, etc.) Total (Note: should equal amount on Exhibit A) Investments (current, noncurrent, and restricted) Purchase of investments (at cost) Donations of investments/securities (at fair value) Sales and maturities of investments (at cost) Increase (decrease) in "Allowance Fair Value of Investments" Total (Note: must equal change on Exhibit A) Page 13 of 42 2004 Change

Exhibit E

OK OK

OK OK

OK OK

OK

E-37 E-38 E-39 E-40

(Note: Must equal row 86 below)

Name of College Analysis of Receivables, Payables, and Other Items - FY Ended June 30, 2004 2005 Investment income, net Net increase (decrease) in FV of investments Realized gain (loss) on sale Unrealized gain (loss) [Note: 13th period accrual less reversal of PY allowance]. Net increase (decrease) in FV of investments Interest and dividends Investment expenses (assume all paid in cash - no accruals) Total (Must equal amount on Exhibit B) Other operating revenues Interest earnings on loans Other operating revenues (excluding sales and services) Total (Must equal amount on Exhibit B) Other nonoperating revenues (expenses) Gain (loss) on sale of capital assets (Note: exclude special items) (Loss) on write-offs of capital assets (difference between cost and accumulated depreciation) Insurance proceeds on capital assets stolen or destroyed Miscellaneous nonoperating revenues (expenses) Total (Must equal amount on Exhibit B) Notes receivable (net): Loans issued to students Collection of loans to students Increase (decrease) in allowance for doubtful accounts Loans written off Total (Note: should equal change on Exhibit A, which is net of allowance) Special items: (Example: Significant gain (loss) on sale of capital assets - generally N/A) Special items - gain (loss) on sale of capital assets Special items - other expenses Total (Must equal amount on Exhibit B) Page 14 of 42 2004 Change

Exhibit E

OK

E-41

(Note: Must equal row 79 above]

E-42 E-43

OK

E-44 E-45

OK

E-46 E-47 E-48

OK

E-49 E-50 E-51 E-52

OK

E-53 E-54

Name of College Analysis of Receivables, Payables, and Other Items - FY Ended June 30, 2004 2005 2004 Change

Exhibit E

Page 15 of 42

Name of College Analysis of Receivables, Payables, and Other Items - FY Ended June 30, 2004 2005 Extraordinary items: (Examples: Large bequest by a private citizen, significant damage by a natural disaster or terroist act) Extraordinary items - expenses Extraordinary items - noncapital gift revenue Extraordinary items - capital gift revenue Total (Must equal amount on Exhibit B) Note: Template may need to be adjusted for entries related to Perkins Loans, if applicable. 2004 Change

Exhibit E

OK

E-55 E-56 E-57

Page 16 of 42

Name of College Analysis of Receivables, Payables, and Other Items - FY Ended June 30, 2004 2005 Accounting Rules RECEIVABLES Receivables, net Accounts receivable - tuition and fees, net Credit must be to "Student tuition and fees" revenues Accounts receivable - sales and services/other operating Credit must be to "Sales and services" or "Other operating revenues" Accounts receivable - students (financial aid, etc.) Credit must be to "Scholarships and fellowships" operating expenses Accounts receivable - nonoperating Credit must be to "Other nonoperating revenues" Accounts receivable - travel advances to employees Credit must be to "Cash" Intergovernmental receivable Credit must be to "Noncapital grants" revenue or "Capital grants" revenue Private grantors receivable Credit must be to "Noncapital grants" revenue or "Capital grants" revenue Pledges receivable Credit must be to "Noncapital gifts" revenue or "Capital gifts" revenue Interest receivable Credit must be to "Investment income" Due from primary government Credit must be to "State aid" revenue, "State capital aid" revenue, or "Noncapital grants" revenue Due from State of North Carolina component units Credit must be to "Noncapital grants" revenue or "Capital grants" revenue Due from College component units Credit must be to "Noncapital gifts" revenue or "Capital gifts" revenue Note receivable Credit must be to "Cash" 2004 Change

Exhibit E

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Name of College Analysis of Receivables, Payables, and Other Items - FY Ended June 30, 2004 2005 PAYABLES Accounts payable and accrued liabilities Accounts payable - operating goods and services Debit must be to "Supplies and materials", "Services", or "Utilities" operating expenses Accounts payable - capital assets Debit must be to a capital asset account (i.e., not an expense) Accrued payroll Debit must be to "Personal services" operating expenses Contracts payable Debit must be to a capital asset account (i.e., not an expense) Intergovernmental payable Debit must be to "Noncapital grants" revenue or "Capital grants" revenue Private grantors payable Debit must be to "Noncapital grants" revenue or "Capital grants" revenue Interest payable Debit must be to "Interest and fees on debt" operating expenses Due to primary government Debit must be to "Supplies and materials", "Services", or "Utilities" operating expenses Due to State of North Carolina Component Units Debit must be to "Supplies and materials", "Services", or "Utilities" operating expenses Deferred revenue Debit must be to "Cash" Funds held for others Debit must be to "Cash" Notes payable Debit must be to "Cash" or "Capital assets" (non-cash consideration) Capital leases payable Debit must be to "Capital assets" (not cash) 2004 Change

Exhibit E

Page 18 of 42

Name of College Analysis of Receivables, Payables, and Other Items - FY Ended June 30, 2004 2005 OTHER ACCOUNTS Inventories Credit must be to "Cash" (Note: need to adjust worksheet if any donated inventories) Prepaid items Credit must be to "Cash" Other operating revenues Debit must be to "Accounts receivable - sales and services/other operating" or "Cash" Other nonoperating revenues Debit must be to "Accounts receivable - nonoperating" or "Cash" Additions to endowments Debit must be to "Cash" (cannot be accrued per GASB Statement 33) 2004 Change

Exhibit E

NOTE: The accounting rules may need to be modified for new or unique transactions. Also, the template may need to be modified for prior period adjustments to current asset or current liability accounts.

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Exhibit E

E-1 E-2 E-3 E-4 E-5 E-6 E-7 E-8 E-9 E-10 E-11 E-12 E-13 E-14 E-15

E-16 E-17 E-18

E-19 E-20

E-20a E-20b

Page 20 of 42

Exhibit E

E-21 E-22 E-23 E-24 E-25 E-26 E-27 E-28 E-29

E-30 E-31 E-32 E-33 E-34 E-35

E-36

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Exhibit E

Page 22 of 42

Exhibit E

Page 23 of 42

Exhibit E

Page 24 of 42

Exhibit E

Page 25 of 42

Exhibit E

Page 26 of 42

Exhibit E

Page 27 of 42

Name of College Cash Flow Worksheet - FY Ended June 30, 2005 Inflows CASH FLOWS FROM OPERATING ACTIVITIES Received from customers Student tuition and fees, net Federal grants and contracts State and local grants and contracts Nongovernmental grants and contracts Sales and services, net Other operating revenues Change in accounts receivable - tuition and fees receivable, net Change in accounts receivable - sales and services/other operating Change in intergovernmental receivable - operating Change in private grantors receivable - operating Change in deferred revenue - student tuition and fees Change in deferred revenue - operating grants/contracts; sales/services Payments to employees and fringe benefits Personal services Change in accrued payroll Change in accrued vacation leave Payments to vendors and suppliers Supplies and materials Services Utilities Special items - other expenses Extraordinary items - expenses Notes receivable: increase (decrease) in allowance for doubtful accounts Notes receivable: loans written off Change in accounts receivable - travel advances to employees Change in inventories Change in prepaid items Change in accounts payable - operating goods and services Change in due to primary government Change in due to State of North Carolina component units Payments for scholarships and fellowships Payments for scholarships and fellowships Change in accounts receivable - students (financial aid, etc.) Outflows Ref.

B-1 B-2 B-3 B-4 B-5 E-45

E-1 E-2 E-6 E-9 E-30 E-31 B-6 E-23 D-5 B-7 B-8 B-10 E-54 E-55 E-51 E-52 E-5 A-2 A-3 E-21 A-4 A-5 B-9 E-3

Page 28 of 42

Name of College Cash Flow Worksheet - FY Ended June 30, 2005 Inflows Loans issued to students Notes receivable: loans issued to students Collection of loans to students Notes receivable - collection of loans to students Interest earnings on loans Change in interest receivable - loans Other receipts (payments) Miscellaneous nonoperating revenues (expenses) Change in accounts receivable - nonoperating Change in funds held for others Change in US government grants refundable CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES State aid received State aid Change in due from primary government: DCC certification - noncapital County appropriations County appropriations Noncapital grants received Noncapital grants Change in intergovernmental receivable - noncapital Change in private grantors receivable - noncapital Change in due from primary government: other State agencies - noncapital Change in due from State of NC component units - noncapital Change in intergovernmental payable - noncapital Change in private grantors payable - noncapital Change in deferred revenues - noncapital grants Noncapital gifts and endowments received Noncapital gifts, net Additions to endowments Extraordinary items - noncapital gift revenues Investments: donations of investments/securities (at fair value) Change in pledges receivable - noncapital Change in due from College component units - noncapital Change in deferred revenues - noncapital gifts Outflows Ref.
E-49 E-50 E-44

E-15 E-48

E-4 E-36 A-6

B-12

E-16 B-13 B-14

E-7 E-10 E-18 E-19 E-25 E-27 E-32 B-15 B-21 E-56

E-38 E-12 E-20a E-33

Page 29 of 42

Name of College Cash Flow Worksheet - FY Ended June 30, 2005 Inflows CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES State capital aid received State capital aid Change in due from primary government: DCC certification - capital County capital appropriations County capital appropriations Capital grants received Capital grants Change in intergovernmental receivable - capital Change in private grantors receivable - capital Change in due from State of NC component units - capital Change in intergovernmental payable - capital Change in private grantors payable - capital Change in deferred revenues - capital grants Capital gifts received Capital gifts, net Capital assets - increases: donations at fair value Extraordinary items - capital gift revenues Change in pledges receivable - capital Change in due from College component units - capital Change in deferred revenues - capital gifts Proceeds from capital debt Cash proceeds from financing agreements Proceeds from sale of capital assets Proceeds from sale of capital assets Proceeds from insurance on capital assets Insurance proceeds on capital assets stolen or destroyed Acquisition and construction of capital assets Capital assets - increases: acquisitions purchased/constructed Change in accounts payable - capital assets Change in contracts payable Principal paid on capital debt and leases Notes payable - reductions Capital leases payable - reductions Interest paid on capital debt and leases Interest and fees on debt Capital assets - increases: interest expense capitalized Page 30 of 42 Outflows Ref.

B-17

E-17 B-18 B-19

E-8 E-11 E-20 E-26 E-28 E-34 B-20

C-3 E-57 E-13 E-20b E-35 D-1 C-7 E-47 C-1 E-22 E-24 D-2 D-4 B-16 C-4

Name of College Cash Flow Worksheet - FY Ended June 30, 2005 Inflows Change in interest payable Outflows Ref.
E-29

Page 31 of 42

Name of College Cash Flow Worksheet - FY Ended June 30, 2005 Inflows CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sales and maturities of investments Sales and maturities of investments (at cost) Realized gain (loss) on sale Investment income Interest and dividends Capital assets - increases: interest income capitalized Change in interest receivable - investments Purchase of investments and related fees Purchase of investments (at cost) Investment expenses (Note: assume no related payables) Total $ Outflows Ref.

E-39

E-41 E-42 C-5

E-14 E-37 E-43

Error Check Total inflows less total outflows equals change in cash and cash equivalents on balance sheet Notes (1) (2) Always show revenues as inflows and expenses as outflows. Use the table below to determine if account changes are inflows or outflows: Account Type Change in current assets Change in current liabilities Change in fair value of investments Note receivable: change in allowance for doubtful accounts Increase in donated capital assets/investments

OK

Inflow Decrease Increase Decrease Increase N/A

Outflow Increase Decrease Increase Decrease Increase

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Exhibit F

Caption Totals

Page 33 of 42

Exhibit F

Caption Totals -

Page 34 of 42

Exhibit F

Caption Totals

Page 35 of 42

Exhibit F

Caption Totals -

Page 36 of 42

Exhibit F

Caption Totals

$ -

Page 37 of 42

Exhibit G

Name of College Statement of Cash Flows For the Fiscal Year Ended June 30, 2005

2005 CASH FLOWS FROM OPERATING ACTIVITIES Received from customers Payments to employees and fringe benefits Payments to vendors and suppliers Payments for scholarships and fellowships Loans issued to students Collection of loans to students Other receipts (payments) Net cash used by operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES State aid received County appropriations Noncapital grants received Noncapital gifts and endowments received Net cash provided by noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES State capital aid received County capital appropriations Capital grants received Capital gifts received Proceeds from capital debt Proceeds from sale of capital assets Proceeds from insurance on capital assets Acquisition and construction of capital assets Principal paid on capital debt and leases Interest paid on capital debt and leases Net cash provided (used) by capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sales and maturities of investments Investment income Purchase of investments and related fees Net cash provided (used) by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, July 1 Cash and cash equivalents, June 30 $ -

Page 38 of 42

Exhibit G, cont.

Name of College Statement of Cash Flows For the Fiscal Year Ended June 30, 2005

Reconciliation of operating loss to net cash used by operating activities: Operating loss Adjustments to reconcile operating loss to net cash used by operating activities: Depreciation expense Provision for uncollectible loans and writeoffs Miscellaneous nonoperating income Changes in assets and liabilities: Receivables, net Inventories Prepaid items Notes receivable, net Accounts payable and accrued liabilities Due to primary government Due to State of North Carolina component units Deferred revenue Funds held for others Compensated absences Total adjustments Net cash used by operating activities

Note 1

B-11 Note 2 E-48 Note 3 A-2 A-3 Note 4 Note 5 A-4 A-5 Note 6 E-36 D-5

Noncash investing, capital, and financing activities: Assets acquired through assumption of a liability Assets acquired through a gift Change in fair value of investments Capital asset write-offs Increase in receivables related to nonoperating income

Note 7

Note 8 Note 9 E-40 C-6 Note 10

Page 39 of 42

Exhibit G, cont.

Name of College Statement of Cash Flows For the Fiscal Year Ended June 30, 2005

Notes - Reconciliation Section (1) Each statement caption should be analyzed to determine which asset and liability accounts impact accrued operating revenues and expenses. You only need to calculate the changes in accounts that impact operating revenues and expenses. Examples of assets not impacting operating revenues include pledges receivable (gifts considered nonoperating revenues), intergovernmental receivables related to nonexchange transactions (related to nonoperating revenues), interest receivable (investment income considered nonoperating revenues), and due from primary government and due from component unit related to nonexchange transactions (related to nonoperating revenues). Examples of liabilities not impacting operating expenses include accounts payable associated with construction in progress (CIP is capitalized - not expensed) and interest payable (interest expense is nonoperating). Also, you should analyze statement captions to determine which asset and liability accounts impact cash flows from operating activities but not operating revenues and expenses (e.g., inventories, prepaid items, deferred revenues, and funds held for others). Provision for uncollectible loans and writeoffs Notes receivable, net - change in allowance for doubtful accounts Notes receivable, net - loans written off Total Receivables, net (Note: enter an increase as a negative number) (Increase) decrease in accounts receivable - tuition and fees, net (Increase) decrease in accounts receivable - sales and services/other operating, net (Increase) decrease in accounts receivable - students (financial aid, etc.) (Increase) decrease in accounts receivable - nonoperating (Increase) decrease in accounts receivable - travel advances (Increase) decrease in intergovernmental receivable - operating (Increase) decrease in private grantors receivable - operating (Increase) decrease in interest receivable - loans Total Notes receivables, net (Note: enter loans issued to students as a negative number) Loans issued to students (enter as a negative number) Collection of loans to students (enter as a positive number) Total Accounts payable and accrued liabilities (Note: enter a decrease as a negative number) Increase (decrease) in accounts payable - operating goods and services Increase (decrease) in accrued payroll Total

(2)

E-51 E-52

(3)

E-1 E-2 E-3 E-4 E-5 E-6 E-9 E-15

(4)

E-49 E-50

(5)

E-21 E-23

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Exhibit G, cont.

Name of College Statement of Cash Flows For the Fiscal Year Ended June 30, 2005

(6)

Deferred revenues (Note: enter a decrease as a negative number) Increase (decrease) in deferred revenues - student tuition and fees Increase (decrease) in deferred revenues - operating grants/contracts Total

E30 E31

Notes - Noncash Section (7) Paragraph 37 of GASB Statement No. 9 requires that changes in assets and liabilities reported on the balance sheet resulting from noncash investing, capital, or financing activities be disclosed. Either a tabular or a narrative format may be used for this purpose, but the disclosure must be physically attached to the statement of cash flows itself, rather than presented in the notes to the financial statements. According to the Q/A to Statement No. 9, noncash transactions should only be reported if they would have been classified in any one of the following categories had they been cash transactions: (a) cash flows from noncapital financing activities, (b) cash flows from capital and related financing activities, or (c) cash flows from investing activities (Source: GFOA GAAFR Review, November 1995) . Noncash section - assets acquired through the assumption of a liability Increase in accounts payable - capital assets (capitalized on Exhibit A) Increase in contracts payable Increase in notes payable Increase in capital leases payable Total Noncash section - assets acquired through a gift Capital assets - increases: donations at fair value Investments: donations of investments/securities (at fair value) Total

(8)

E-22 E-24 D-6 D-3

(9)

C-3 E-38

(10) Noncash section - increase in receivables related to nonoperating income Increase in intergovernmental receivable Increase in private grantors receivable Increase in pledges receivable Increase in interest receivable - investments Increase in due from primary government Increase in due from State of NC component unit Total

E-7, E-8 E-10, E-11 E-12, E-13 E-14 E-16,17,18 E-19, E-20

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Exhibit G, cont.

Name of College Statement of Cash Flows For the Fiscal Year Ended June 30, 2005

Notes - Other (11) In this illustration, agency fund transactions are considered immaterial. Therefore, agency receipts and disbursements are shown net on a single line in the operating activities section (i.e., "Other receipts (payments)"). If agency fund activity during the year is material, agency receipts and disbursements will need to be reported at gross on separate lines. (12) This illustration also assumes that no funds were received from direct lending programs. If such funds were received during the year, receipts and disbursements of direct lending monies should be reported at gross on the cash flow statement in the noncapital financing section. During the year, these funds should have been reported as agency transactions.

Error Checks - Net increase in cash and cash equivalents agrees with change on balance sheet - Beginning cash and cash equivalents per cash flow statement agrees with the balance sheet - Ending cash and cash equivalents per cash flow statement agrees with the balance sheet - Net cash used by operating activities equals corresponding amount on reconciliation section - Operating loss on reconciliation agrees with Exhibit B - Depreciation expense on reconciliation agrees with Exhibit B

OK OK OK OK OK OK

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