February 2018 Board meeting - CWU Sammamish - a

UNIVERSITY FINANCIAL INFORMATION

Basis of Accounting The University’s financial statements are prepared in accordance with Governmental Accounting Standards Board (“GASB”) Statement No. 34, Basic Financial Statements and Management Discussion and Analysis for State and Local Governments, and GASB Statement No. 35, Basic Financial Statements and Management’s Discussion and Analysis for Public Colleges and Universities . The financial statements include a management’s discussion and analysis, a statement of net position, a statement of revenues, expenses, and changes in net position, a statement of cash flows, and notes to the financial statements. The format provides a comprehensive, entity-wide perspective of the University’s assets, liabilities, net position, revenues, expenses, changes in net position, and cash flows. For financial reporting purposes, the University is considered a special-purpose government, engaged only in business-type activities. Accordingly, the University’s financial statements have been presented using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis, revenues are recognized when earned, and expenses are recorded when an obligation has been incurred. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. All significant intra-agency transactions have been eliminated. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in the financial statements of a special-purpose government engaged in business-type activities to the extent that those standards do not conflict with or contradict guidance of GASB. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The University has elected not to follow subsequent private-sector guidance. Auditing The University’s financial statements and those of selected auxiliary units are audited annually by the State Auditor’s Office, which provides an opinion on the financial statements. The most recent audit covers the financial statements for the year ended June 30, 2017, and is attached at APPENDIX B. The State Auditor’s Office also performs accountability audits to provide reasonable assurance of the University’s compliance with legal requirements and to determine if adequate internal controls are in place. Prior to fiscal year 2016, the State Auditor’s Office conducted compliance and accountability audits for individual universities and reviewed selected areas across the public institutions of higher education. Beginning with fiscal year 2016, the State Auditor’s Office has resumed annual accountability audits, with the most recent accountability audit being completed June 30, 20[16][17]. In addition, the State Auditor’s Office performs an annual audit of federal grant expenditures for the State as required by the Single Audit Act. This audit is performed on a statewide basis and includes major federal programs at the University if selected for audit.

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