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News Release CONTACT Della Elliott GCCCD Public Information

By Linda Ross,2014-05-17 06:39
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News Release CONTACT Della Elliott GCCCD Public Information

    News Release

CONTACT: Della Elliott. GCCCD Public Information, (619) 644-7690

    della.elliott@gcccd.net

FOR IMMEDIATE RELEASE March 3, 2008

    College district continues to sail

    through multiple audits

    Clean reviews crucial as district prepares for third Prop. R bond offering

    EL CAJON –It’s straight A’s again for the Grossmont-Cuyamaca Community College District, which received stellar reports from independent auditors who scrutinized the district’s financial books for the 2006-2007 fiscal year.

    The annual audits by certified public accountants are required by the state education code.

    For the fifth year in a row, auditors have reported no deficiencies in the financial statements in

    the district’s general audit, the Prop. R bond building fund, the district’s alternative pension plan,

    the district’s auxiliary, and the Grossmont and Cuyamaca colleges’ foundations.

    The governing board at its February meeting was presented what are known as

    “unqualified opinions” – clean audits -- from three auditing firms. An unqualified audit opinion

    is one without any restricting or limiting findings.

    Chancellor Omero Suarez noted this is an exceptional result, and reflects conscientious

    work by district and college staff.

    “These audit findings affirm our prudent fiscal management and verify that we have

    accurately accounted for the collection and expenditure of taxpayer monies,” he said. “Through these independent audits, the public can know that we comply fully and openly with our legal

    obligations when it comes to handling public dollars.”

    The certified public accounting firm Vavrinek, Trine, Day & Co. reports that the district’s net assets increased $26.5 million, or 25.5 percent, during the fiscal year, largely due to a

    continuing investment in capital assets such as new and refurbished buildings. Total liabilities, or

    obligations, increased $3.16 million, or 1.7 percent, partly related to the accrual of retention

    funds for construction projects dollars set aside until project completion -- and pending

bargaining agreements. The general audit confirms that the college district is fiscally sound and

    also gives a stamp of approval to its financial reporting practices.

    Governing Board President Bill Garrett said the audits show the district’s commitment to

    responsible spending of public dollars, and in the case of the Prop. R bond fund, support the

    public’s confidence in passing the measure by a wide margin.

    The flawless financial and performance audits of the district’s Prop. R bond facilities fund -- local, voter-approved monies supplementing state bond funds to modernize Grossmont

    and Cuyamaca colleges are particularly important, he said.

     East County’s backing of the $207 million bond measure has led to seven new buildings completed at the two colleges since 2004: the learning and technology resource center, science

    lab building, and digital arts and sculpture buildings at Grossmont; and the student center,

    science and technology, and communication arts buildings at Cuyamaca.

    In addition to new buildings, major renovations have been another component of the Prop.

    R program. At Cuyamaca, the automotive technology complex was completed in 2005 and at

    Grossmont, the exercise science and wellness and athletics complex is currently undergoing

    remodeling.

    The Prop. R audit fulfills the district’s requirement to conduct both a financial and performance audit to ensure that funds have been spent only on the specific projects approved by

    voters in 2002 and that the program is managed well.

    The financial audit by the accounting firm of Wilkinson Hadley & Co. shows that for the

    fiscal year ended in June, the building fund showed total expenditures of $49.8 million and an

    end-of-year balance of $52.3 million.

    Wilkinson Hadley reported that its tests “disclosed no instances of noncompliance or

    other matters that are required to be reported under government auditing standards. Further, auditors noted “no findings or questioned costs related to the performance audit of the Proposition R bond building fund.

    The understated language of the certified public accountants belies the far-reaching

    impact of the audit reports. Bond-rating agencies use the audits in their evaluations of the credit-

    worthiness of public agencies. In addition, the independent reviews of the district’s ledgers are used by financial institutions, government agencies and others for fund-raising and oversight

    purposes.

    The college district’s superior bond ratings earned them premium dollars in the last two

    sales of the Prop. R bonds. The Aa3 rating from Moody’s Investors Service and the AA- credit rating from Standard & Poor’s – among the highest investment-grade rankings issued by the

agencies were for the district’s Series A bond offering of $55 million in spring ’03 and the

    Series B offering of $100 million in ’05.

    The governing board in February approved the issuance of a third series offering of $52

    million.

    Grossmont and Cuyamaca colleges, located in El Cajon and Rancho San Diego,

    respectively, serve about 26,000 students. For Grossmont College information, call (619) 644-

    7000 or visit www.grossmont.edu.

     For Cuyamaca College information, call (619) 660-4000 or visit www.cuyamaca.edu

    The district’s general audit can be found via the district Web site, www.gcccd.edu . Type “audit” in the search box for a link to the audits.

    Intergovernmental Relations, Economic Development, and Public Information

    8800 Grossmont College Drive El Cajon, CA 92020-1799 Phone 619-644-7573 Fax 619-644-7924

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