Texas Higher Education Coordinating Board

AMARILLO COLLEGE Amarillo, Texas

ANNUAL FINANCIAL REPORT August 31, 2015

TABLE OF CONTENTS

PAGE

ORGANIZATIONAL DATA... .................................................................................................... 1

INDEPENDENT AUDITOR'S REPORT .................................................................................. 3

MANAGEMENT'S DISCUSSION AND ANALYSIS ................................................................ 7

FINANCIAL STATEMENTS

Exhibit 1 Statement of Net Position........................................................................ 18

2 Statement of Revenues, Expenses, and Changes

in Net Position .................................................................................. 20

3 Statement of Cash Flows ........................................................................ 21

Notes to Financial Statements........................................................................................... 23

REQUIRED SUPPLEMENTARY INFORMATION

Schedule of the College's Proportionate Share of the Net Pension Liability .......................................................................................... 52

Schedule of the College's Contributions ............................................................................ 53

Notes to Required Supplementary Information .................................................................. 54

OTHER SUPPLEMENTAL INFORMATION

Schedule A Schedule of Operating Revenues............................................................... 56

B Schedule of Operating Expenses by Object ............................................... 58

C Schedule of Nonoperating Revenues and Expenses.................................. 59

D Schedule of Net Position by Source and Availability................................... 60

E Schedule of Expenditures of Federal Awards............................................. 61

Notes to Schedule of Expenditures of Federal Awards............................... 62

F Schedule of Expenditures of State of Texas Awards .................................. 63

Notes to Schedule of Expenditures of State of Texas Awards .................... 64

TABLE OF CONTENTS (CONTINUED)

PAGE

SINGLE AUDIT SECTION

Independent Auditor's 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 ............... 67

Independent Auditor's Report on Compliance for Each Major Program and

on Internal Control Over Compliance Required by OMB Circular A-133

and the State of Texas Single Audit Circular................................................................ 71

Schedule of Findings and Questioned Costs..................................................................... 75

Schedule of Corrective Action for Audit Findings and Questioned Costs ........................... 79

Summary Schedule of Prior Audit Findings ....................................................................... 80

STATISTICAL SUPPLEMENT (UNAUDITED) ....................................................................... 87

AMARILLO COLLEGE

ORGANIZATIONAL DATA

August 31, 2015

Board of Regents

Officers

Michele Fortunato Dr. Paul Proffer Daniel Henke

Chairperson Vice Chairperson Secretary

Jay Barrett Neal D. Nossaman Johnny E. Mize Dr. David C. Woodburn Anette Carlisle Patrick Miller

Members

Amarillo, Texas Amarillo, Texas Amarillo, Texas Amarillo, Texas Amarillo, Texas Amarillo, Texas

Term Expires May

2017 2019 2021

2017 2017 2019 2019 2021 2021

Dr. Russell Lowery-Hart Robert Austin Terry Berg Deborah Vess Ellen Green Lee Colaw Lyndy Forrester

Cara Crowley

Key Officers

President Vice President of Student Affairs Vice President of Business Affairs Vice President of Academic Affairs Vice President of Communications and Marketing Vice President for Information Technology Vice President for Employee & Organizational

Development Chief of Staff

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CO N NOR + M cMILL O N + MIT CH EL L + SH ENNUM CERTIFIED PUBLI C ACCOUNTANTS & CONSULTANTS

Independent Auditor's Report

Board of Regents Amarillo College Amarillo, Texas

Report on the Financial Statements

We have audited the accompanying financial statements of Amarillo College (the College) as of and for the year ended August 31, 2015, and the related notes to the financial statements, which collectively comprise the College's basic financial statements, as listed in the table of contents .

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judg ment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the College's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the College's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements .

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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801 South Fillmore. Suite 600. Amarillo. Texas 791 01 + PO Box 15650. Amarillo. Texas 79 105+ (806) 373.6661 + FAX (806) 372.1 237+

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Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the College as of August 31, 2015, and the changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Emphasis of Matter

As described in Note 2 to the financial statements, in 2015, the College adopted new accounting guidance, GASB Statement No. 68, Accounting and Financial Reporting for Pensions--an Amendment of GASB Statement No. 27 and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date--an Amendment of GASB Statement No. 68. Our opinion is not modified with respect to this matter.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, the Schedule of the College's Proportionate Share of the Net Pension Liability, and the Schedule of the College's Contributions on pages 8-15 and pages 52-54 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming opinions on the basic financial statements of the College. The accompanying supplemental information listed in the table of contents, Schedules A, B, C and D, is likewise presented for purposes of additional analysis and is not a required part of the basic financial statements. The accompanying Schedule of Expenditures of Federal Awards, Schedule E, and Schedule of Expenditures of State of Texas Awards, Schedule F, as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations and the State of Texas Single Audit Circular are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The Schedule of Expenditures of Federal Awards, the Schedule of Expenditures of State of Texas Awards, and the Other Supplemental Information are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing

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