Anthony Tricoli

The Atlanta Journal Constitution and WABE-FM are reporting that the Georgia Perimeter College President Anthony Tricoli is being moved to another job in the university system.

Prior to the most recent report, auditors raised questions about the college’s finances during the audit for Fiscal 2011, state records show.

The news agencies reported university system Chancellor Hank Huckaby made the decision after auditors discovered a $16 million shortfall for the current fiscal year, Fiscal 2012. Tricoli, who has been president since 2006, will now work within the university system’s central office, the news agencies reported.

For more on this story, see the AJC story here and the WABE-FM story here.

The audit for Fiscal 2011 described errors in the preparation of financial statements, saying in one finding, “The College did not adequately monitor Restricted and Agency Fund activity, which resulted in invalid accounts receivable and deficit fund balances.”

The 2011 compliance report also found:

1) The College did not adequately monitor Restricted and Agency Fund
activity, which resulted in invalid accounts receivable and deficit fund
balances. Items noted include:
a. Invalid accounts receivable were recorded for HOPE activity, resulting
in an overstatement of accounts receivable and deposits held for
other organizations of $3,274,133. An entry was proposed and
accepted by the College to correct.
b. Invalid accounts receivable totaling $1,064,202 were recorded for
various Federal grants. An entry was proposed and accepted by the
College to correct.
c. Accounts receivable totaling $427,384 were noted for grants with
prior budget periods and/or grant codes. These items should be
reviewed by the College to determine whether the accounts
receivable are still valid.
d. A prior period adjustment to the HOPE program totaling $1,262,269
was not posted by the College, resulting in an understatement of
accounts receivable and deposits held for others. An entry was
proposed and accepted by the College to correct.
e. Restricted net assets were reported at a negative balance of
$310,135.

2) Accumulated Depreciation recorded on the financial statements did not agree to the amount on the accounting records by $1,444,308. An entry was proposed and accepted by the College to reduce depreciation expense by this amount.

3)  The Cash Flow Statement did not accurately reflect activity for the following items:

a. Principal Paid on Capital Debt was overstated by $24,806,138. Error
was corrected.
b. Beginning cash on hand did not agree to the prior year ending cash
balance by $1,675,4 75. Error was corrected.
c. An unreconciled variance of $44,451 was noted for cash flows for
purchases of Capital Assets to Capital Assets additions reported in
the Selected Notes to the Financial Statements.
d. Other items on the cash flow statement do not appear reasonable in
comparison to other financial data presented in the financial
statements. Cash flows from operating activities for grants and
contracts and other receipts appear overstated based on operating
grants and contracts on the Statement of Revenues, Expenses, and
Changes in Net Assets. Cash flows for Agency Fund activities appear
understated.

4) Various other adjustments to the financial statements were identified by Department of Audits and Accounts and adjusted/corrected during the Board of Regents review process.

a. Beginning net assets did not agree to the prior year ending net assets by $21,389,989.
b. Net assets on the Statement of Net Assets did not agree to the net
assets on the Statement of Revenues, Expenses, and Changes in Net
Assets due to various rounding items.
c. State appropriations revenue was not reduced by the amount of
surplus remitted to the State of Georgia in the current year.

The auditors wrote, “Through our examination, it was determined that the College failed to properly monitor budgetary financial activity during the year. At June 30, 2011, the College maintained several funds in a deficit situation.”

The auditors said they found the following deficiencies in the college’s budget basis financial statements for Fiscal 2011.

1. Balances maintained on the College’s general ledger did not agree to the
budgetary statements for cash ($54,550.64 overstatement) and
encumbrances payable ($130, 773.26 overstatement).
2. The College was in a reserved deficit in the Department Sales and
Services Fund ($271,248.25), Technology Fees Fund ($94,896.75), and
Restricted/Sponsored Funds ($200,575.84).
3. Encumbrances Payable with a credit balance of $54,616.04 were
determined to be invalid and were removed from the budgetary
statements.
4. The budget ledger within the accounting system, was not being properly
monitored and maintained. Certain entries posted to the budget ledger
were not reflected on the budgetary statements.

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