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LORD FAIRFAXCOMMUNITY COLLEGEREVIEW REPORTFOR THE YEAR ENDEDJUNE 30, 2016Auditor of Public AccountsMartha S. Mavredes, CPAwww.apa.virginia.gov(804) 225-3350
February 28, 2017Cheryl Thompson-StacyPresident, Lord Fairfax Community CollegeINDEPENDENT ACCOUNTANT’S REVIEW REPORTWe have reviewed the accompanying Statement of Net Position of Lord Fairfax CommunityCollege as of June 30, 2016, and the related Statement of Revenues, Expenses, and Changes in NetPosition (financial statements) for the year then ended. A review includes primarily applyinganalytical procedures to management’s financial data and making inquiries of College management.A review is substantially less in scope than an audit, the objective of which is the expression of anopinion regarding the financial statements as a whole. Accordingly, we do not express such anopinion.Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financialstatements in accordance with accounting principles generally accepted in the United States ofAmerica; this includes the design, implementation, and maintenance of internal control relevant tothe preparation and fair presentation of financial statements that are free from materialmisstatement whether due to fraud or error.Accountant’s ResponsibilityOur responsibility is to conduct the review engagement in accordance with Statements onStandards for Accounting and Review Services (SSARSs) promulgated by the Accounting and ReviewServices Committee of the American Institute of Certified Public Accountants. We have not reviewedthe financial statements of Lord Fairfax Community College Educational Foundation (theFoundation), a discretely presented component unit of Lord Fairfax Community College, which ispresented in a separate column in the accompanying financial statements. These statements wereaudited by other auditors whose report has been furnished to us, and our conclusion, insofar as itrelates to the amounts included for the Foundation is based solely on the report of other auditors.Fiscal Year 20161
SSARSs require us to perform procedures to obtain limited assurance as a basis for reportingwhether we are aware of any material modifications that should be made to the financial statementsfor them to be in accordance with accounting principles generally accepted in the United States ofAmerica. We believe that the results of our procedures provide a reasonable basis for our conclusion.Accountant’s ConclusionBased on our review, and the report of other auditors, except for the issues noted in theKnown Departures from Accounting Principles Generally Accepted in the United States of Americaparagraph, we are not aware of any material modifications that should be made to the accompanyingfinancial statements in order for them to be in conformity with accounting principles generallyaccepted in the United States of America.Known Departures From Accounting Principles Generally Accepted in the United States of AmericaAccounting principles generally accepted in the United States of America require that thefinancial statements for business-type entities include a statement of cash flows and notes to thefinancial statements, which are considered part of the basic financial statements. The VirginiaCommunity College System consolidates information from its 23 community colleges into the basicfinancial statements for the System; however, the System does not prepare note disclosures for eachindividual college. In addition, the System does not prepare for each college certain requiredsupplementary information, such as management’s discussion and analysis and pension-relatedschedules, which is required to be presented to supplement the basic financial statements. Requiredsupplementary information, although not a part of the basic financial statements, is required by theGovernmental Accounting Standards Board, who considers it to be an essential part of financialreporting for placing the basic financial statements in an appropriate operational, economic, orhistorical context. The effect of these departures from accounting principles generally accepted inthe United States of America has not been determined. Although the statement of cash flows isconsidered part of the basic financial statements, it was not included in the scope of this review.Other MattersLord Fairfax Community College is one of 23 community colleges that comprise the VirginiaCommunity College System (VCCS), which is a component unit of the Commonwealth of Virginia.Federal funds received by the Commonwealth of Virginia are audited at a statewide level by theAuditor of Public Accounts in accordance with auditing standards generally accepted in the UnitedStates of America; the standards applicable to financial audits contained in Government AuditingStandards, issued by the Comptroller General of the United States; and the audit requirements ofTitle 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards (Uniform Guidance). As part of the statewideSingle Audit of federal funds, the Auditor of Public Accounts audits Federal Student Financial Aid atVirginia’s state-supported colleges and universities. The Auditor of Public Accounts audited LordFairfax Community College’s Federal Student Aid programs in fiscal year 2013 and performed followFiscal Year 20162
up procedures on prior year findings in 2014 and 2015 and did not report any material complianceissues. An additional audit of financial aid is ongoing as part of the fiscal year 2016 VCCS financialstatement audit. Copies of our audits of the financial statements of the Virginia Community CollegeSystem along with copies of our statewide Single Audits may be found on our website atwww.apa.virginia.gov.This letter is intended solely for the information and use of the accreditation review board,and is not intended to be, and should not be used by anyone other than this specified party.However, this letter is a matter of public record and its distribution is not limited.AUDITOR OF PUBLIC ACCOUNTSEMS/cljFiscal Year 20163
Virginia Community College SystemLord Fairfax Community CollegeStatement of Net PositionAs of June 30, 2016ComponentUnitCommunityCollegeLord FairfaxCommunityCollegeEducationalFoundation 5,582,7971,243,080365,70335,4213,5007,230,501 1,300,578311,585118,6441,730,807Noncurrent AssetsRestricted cash and cash equivalentsEndowment cash and cash equivalentsEndowment investmentsPledges receivableDue from CommonwealthNon-depreciable capital assets, netDepreciable capital assets, netTotal Noncurrent ,529Total 639,36634,449350,000199,816584,265Noncurrent LiabilitiesLong-term liabilitiesPension obligationsTotal Noncurrent 49,657Total 8,533,92243,014,8481,776,266151,813(12,284,499) 30,882,1624,641,0305,659,044(281,926) 11,794,414AssetsCurrent AssetsCash and cash equivalentsAccounts receivable, netPledges receivableDue from CommonwealthDue from system officePrepaid expensesInventoriesTotal Current AssetsDeferred Outflows of ResourcesTotal Assets and Deferred Outflows of ResourcesLiabilitiesCurrent LiabilitiesAccounts and retainage payableAccrued payroll expenseUnearned revenueLong-term liabilities-current portionSecurities lending obligationDepositsTotal Current LiabilitiesDeferred Inflows of ResourcesTotal Liabilities and Deferred Inflows of ResourcesNet PositionNet investment in capital assetsRestricted for:NonexpendableExpendableUnrestrictedTotal Net PositionSee Independent Accountant's Review ReportFiscal Year 20164
Virginia Community College SystemLord Fairfax Community CollegeStatement of Revenues, Expenses and Changes in Net PositionFor the Year Ended June 30, 2016ComponentUnitRevenuesOperating RevenueTuition and fees (net of scholarship allowance of 4,072,567)Federal grants and contractsState and local grantsNongovernmental grantsAuxiliary enterprises (net of scholarship allowance of 13,464)Gifts and contributionsEndowment incomeOther operating revenuesTotal Operating RevenueCommunityCollege 05,692Lord FairfaxCommunityCollegeEducationalFoundation 89,743(129,198)1,158,9501,119,495ExpensesOperating ExpensesInstructionPublic serviceAcademic supportStudent servicesInstitutional supportOperation and maintenanceScholarships and fellowshipsAuxiliary enterprisesFundraisingOther ,603254,514261,418Total Operating Expenses40,113,3251,434,358Operating Income (Loss)(21,007,633)(314,863)Nonoperating Revenues(Expenses)State appropriationsLocal appropriationsGrants and giftsInvestment incomeOther nonoperating revenue (expense)Net Nonoperating 4,980Income before other revenues, expensesgains (losses)Capital appropriations-stateCapital gifts, grants and contractsAdditions to permanent and term 6935,953,51472,83024,928,64811,721,584 30,882,162 11,794,414Increase (Decrease) in Net PositionNet PositionNet Position beginning of yearNet Position end of year-See Independent Accountant's Review ReportFiscal Year 20165
LORD FAIRFAX COMMUNITY COLLEGE REVIEW REPORT. FOR THE YEAR ENDED JUNE 30, 2016. Auditor of Public Accounts Martha S. Mavredes, CPA. www.apa.virginia.gov (804) 225-3350. Fiscal Year 2016 . 1 . . Tuition and fees (net of scholarship allowance of 4,072,567) 14,838,599 - Federal grants and contracts 2,618,959 - .
