north florida community college foundation, inc. … rpts/2015 north florida... · college...

NORTH FLORIDA COMMUNITY COLLEGE FOUNDATION, INC. (A NONPROFIT CORPORATION)

Madison, Florida

FINANCIAL STATEMENTS AND

SUPPLEMENTARY INFORMATION Years Ended March 31, 2015 and 2014

Ashmore & Ashmore, P.A. Certified Public Accountants

NORTH FLORIDA COMMUNITY COLLEGE FOUNDATION, INC. MADISON, FLORIDA

Years ended March 31, 2015 and 2014

Independent Auditor's Report

General Purpose Financial Statements Statement of Financial Position Statement of Activities Statement of Cash Flows Notes to the Financial Statements

Supplementary Information

Independent Auditor's Report on Supplementary Information

Schedule of Functional Expenses

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

Schedule of Findings and Responses

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6-14

15

16

17-18

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James R. Ashmore, CPA

Sharron C. Ashmore, CPA


109 South Main Street Havana, Florida 32333

Voice {850) 539-5690 Fax {850) 539-5994

INDEPENDENT AUDITOR'S REPORT

To the Board of Directors North Florida Community College Foundation, Inc. Madison, Florida

We have audited the accompanying financial statements of North Florida Community College Foundation, Inc. (a nonprofit organization), which comprise the statement of financial position as of March 31, 2015 and 2014, and the related statements of activities and cash flows for the years then ended, and the related notes to the financial statements.

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 an opinion 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 of 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 judgment, 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 entity's preparation and fair presentation

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Voice {850} 539-5690 Fax (850} 539-5994

INDEPENDENT AUDITOR'S REPORT-Concluded

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 entity'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 opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of North Florida Community College Foundation, Inc. as of March 31, 2015 and 2014, and the changes in net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated August 19, 2015, on our consideration ofNorth Florida Community College Fow1dation, Inc.' s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit perfonned in accordance with Government Auditing Standards in considering N01ih Florida Community College Foundation, Inc.'s internal control over financial reporting and compliance.

(JJ--. ~· tJJ...-../ /,fl- C//J,, Ashmore & Ashmore, P.A. Certified Public Accountants Havana, Florida August 19, 2015

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NORTH FLORIDA COMMUNITY COLLEGE FOUNDATION, INC. STATEMENT OF FINANCIAL POSITION

March 31, 2015 and 2014

2015 ASSETS

Cash and cash equivalents $ 392,459 Accmed interest receivable 7,965 Contributions receivable 1,022 Investments 3,302,504 Collectibles 28,560

Total Assets $ 3,732,510

LIABILITIES AND NET ASSETS

Accounts payable Total Liabilities

Net Assets Unrestricted Temporarily Restricted Permanently Restricted

Total Net Assets

Total Liabilities & Net Assets

See auditor's report and notes to the financial statements. -3-

$ 206 206

126,977 1,840,177 1,765,150 3,732,304

$ 3,732,510

2014

$ 328,239 8,214

810 3,226,389

28,560

$ 3,592,212

$

101,989 1,777,541 1,712,682 3,592,212

$ 3,592,212

NORTH FLORIDA COMMUNITY COLLEGE FOUNDATION, INC. STATEMENT OF ACTIVITIES


2015 2014 Temporarily Permanently Temporarily Permanently

Unrestricted Restricted Restricted TOTAL Unrestricted Restricted Restricted TOTAL -REVENUE, GAINS & OTHER SUPPORT Contributions $ 6,967 $ 154,040 $ 52,468 $ 213,475 $ 2,791 $ 121,116 $ 1,158 $ 125,065

In-kind contributions 141,188 141,188 108,634 108,634 Investment income 29,114 103,216 132,330 73,234 250,810 324,044 Special events 26,225 26,225 16,013 16,013

Net assets released from restrictions: Satisfaction of program restrictions 221,095 -221,095 186,800 -186,800

Transfers -250 250 Total Revenue, Gains & Other Support 398, 114 62,636 52,468 513,218 371,459 201, 139 1, 158 573,756

EXPENSES Program services 221,095 221,095 186,800 186,800 Supporting services 152,031 152,031 117,998 117,998

Total Expenses 373,126 373,126 304,798 304,798

Change in Net Assets 24,988 62,636 52,468 140,092 66,661 201,139 1,158 268,958

Net Assets, Beginning 101,989 1,777,541 1,712,682 3,592,212 35,328 1,576,402 1,711,524 3,323,254 Net Assets, Ending $ 126,977 $1,840, 177 $1,765,150 $3,732,304 $ 101,989 $1,777,541 $1,712,682 $3,592,212


NORTH FLORIDA COMMUNITY COLLEGE FOUNDATION, INC. STATEMENT OF CASH FLOWS


CASH FLOWS FROM OPERATING ACTIVITIES

Increase (Decrease) in net assets Adjustment to reconcile change in net

assets to net cash provided by operating activities: (Increase) Decrease in contribution receivable (Increase) Decrease in accrued interest receivable Increase (Decrease) in accounts payable Umealized (gains) losses on investments Realized (gains) losses on investments

Net Cash (Used) Provided By Operating Activities

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of investments Proceeds from sale of investments

Net Cash (Used) Provided By Investing Activites

Net Increase (Decrease) in Cash and Cash Equivalents

BEGINNING CASH AND CASH EQUIVALENTS

ENDING CASH AND CASH EQUIVALENTS

SUMMARY OF CASH AND CASH EQUIVALENTS: Cash in Bank Cash - Money Market Petty Cash

Total Cash and Cash Equivalents


$

$

$

$

2015 2014

140,092 $ 268,958

-212 1,388 249 269 206 -148

81,881 -141,912 -171,666 -133,606

50,550 -5,051

-1,553,829 -1,282,600 1,567,499 1,377,174

13,670 94,574

64,220 89,523

328,239 238,716

392,459 $ 328,239

48,476 $ 40,682 343,881 287,455

102 102

392,459 $ 328,239

NORTH FLORIDA COMMUNITY COLLEGE FOUNDATION, INC. NOTES TO THE FINANCIAL STATEMENTS

Years Ended March 31, 2015 and 2014

NOTE 1 - Nature of Activities

The purpose of North Florida Community College Foundation, Inc. is to receive gifts and collections for the college, develop an alumni base, provide small grants to support college activities and programs, provide a scholarship program and provide general support for the college. The Foundation receives revenue primarily from private contributions, state matching contributions, donated services from the college and fund raising events.

NOTE 2 - Summary of Significant Accounting Policies

Basis of Accounting The financial statements for the Foundation have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America and, accordingly, reflect all significant receivables, payables and other liabilities.

Basis of Presentation Financial statement presentation follows the recommendations of the Financial Accounting Standards Board (F ASB) in its Accounting Standard Codification 958. Under those provisions, net assets and revenues, gains and losses are classified based on the absence or existence and nature of donor-imposed restrictions as follows:

• Unrestricted net assets - Net assets that are not subject to donor-imposed stipulations.

• Temporarily restricted net assets - Net assets subject to donor-imposed stipulations that can be fulfilled by actions of the Foundation pursuant to those stipulations or that expire by the passage of time.

• Permanently restricted net assets - Net assets subject to donor-imposed stipulations that they be maintained permanently by the Foundation. Generally, the donors of such assets permit the Foundation to use all or part of the income earned on the assets.

Contributions Contributions received are recorded as unrestricted, temporarily restricted or permanently restricted support depending on the existence or nature of any donor restrictions.

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NOTE 2 - Summary of Significant Accounting Policies (Continued)

All donor-restricted support is reported as an increase in temporarily or permanently restricted net assets, depending on the nature of the restriction. When a restriction expires (that is, when a stipulated time restriction ends or the purpose of the restriction is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and reported in the Statement of Activities as net assets released from restrictions.

Functional Allocation of Expenses The cost of providing the various programs and other activities has been detailed in the Schedule of Functional Expenses and summarized on a functional basis in the Statement of Support, Revenue and Expenses and Changes in Net Assets. Accordingly, certain costs have been allocated among the programs and supporting services benefited.

Income Taxes The Foundation has been granted an exemption from income taxes under Internal Revenue Code, Section 501 (c) (3) as a nonprofit corporation. It has been classified as an organization that is not a private foundation under Section 509 (a) (2) of the Internal Revenue Code and qualifies for the charitable contribution deduction under Section 170(b)(l)(A). Accordingly, no provision has been made for income taxes. The Foundation files a Form 990, Return of Organization Exempt From Income Tax, with the Internal Revenue Service on an annual basis. These returns are open to public inspection for three years.

Cash and Cash Equivalents For purposes of the Statement of Cash Flows, cash equivalents include all highly liquid investments with an initial maturity of three months or less. Fair market value approximates carrying amounts.

Investments The Foundation carries investments in marketable securities with readily detenninable fair values and all investments in debt securities at their fair values in the Statement of Financial Position. Unrealized gains and losses are included in the change in net assets in the accompanying Statement of Activities.

Collectibles The Foundation capitalizes its collectibles. Accessions are capitalized at cost if purchased and at appraised or fair value at the date of accession ifreceived by donation. Inexhaustible collectibles consist of a fine China collection that is valued at the fair market value at the date of the gift.

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NOTE 2 - Summary of Significant Accounting Policies (Concluded)

Investment Pools The Foundation maintains a master investment account for its donor-restricted and boarddesignated endowments. Realized and unrealized gains and losses from securities in the master investment account are allocated monthly to the individual endowments based on the relationship of the market value of each endowment to the total fair market value of the master investment accounts, as adjusted for additions and deductions from those accounts.

Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Fair Value of Financial Instruments The Foundation's carrying amount for its financial instruments, which include cash, investments, receivables and accounts payable, approximates fair value.

Donated Assets Donated marketable securities and other noncash donations are recorded as contributions at their estimated fair values at the date of donation.

Advertising Costs The Foundation expenses advertising costs as incurred.

NOTE 3 - Related Party Transactions

The North Florida Community College provides the facility and three part-time employees for the Foundation. The Foundation's Director and Senior Staff Assistant salaries are paid by the College. These individuals also perfonn other duties for the College unrelated to the Foundation. The estimated value of services provided the Foundation is approximately $129,188 and $108,634 for the years ended March 31, 2015 and 2014, respectively. Prior to March 31, 2014, the actual value of the facilities provided is not readily determinable, however, for the year ended March 31, 2015, the Foundation was relocated in a separate house which had an estimated annual rental value of$12,000. The Foundation has recorded these donations as in-kind contributions and related expenses.

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NOTE 4 - Restrictions on Net Assets

Substantially all of the restrictions on net assets at March 31, 2015 and 2014, are related to funds raised through contributions to provide scholarships and student financial aid, except for funds raised in prior years by the Friends of the Mansion, which are used for the maintenance of the Wardlaw-Smith-Goza Conference Center.

Temporarily restricted net assets are available for the following purposes: 2015

Scholarships and financial aid $ 1,817, 771 Wardlaw-Smith-Goza Conference

Center Maintenance 22,306 Total Temporarily Restricted Net Assets $ 1.840.077

2014 $1,754,514

23,027 $1.777.541

Permanently restricted net assets consist of endowment fund investments to be held indefinitely, the income from which is expendable to provide scholarships and financial aid.

NOTE 5 - Investments

The Foundation Investment policy requires the investment funds to be divided into three classes of assets with an indicated allowable range within each class of: 1. Equities (common stock/equity mutual funds), 2. Fixed Income (securities issued by the Federal Government, federal agencies, insured municipal bonds, insured corporate bond issues, and bond mutual funds), and 3. Cash & equivalents (including money market accounts). The Foundation believes that the following target mixture of asset classes will produce the desired acceptable performance fluctuation levels over time:

Target Allowable Target Asset Class ___%___ Range Index 1. Equities 55 35% to 60% S&P 500 2. Fixed Income 35 20% to 60% Lehman Intermediate 3. Cash & Equivalent 10 5% to 15% US Treasury Bills

The Foundation's Investment Policy prohibits the following category of investments: 1. Short sales, or "Naked" positions, 2. Margin purchases, 3. Issuer related to investment manager, 4. Restricted stock, 5. Private placement, 6. Options, "Puts" and "Calls" and 7. Futures contracts. Investment revenues are recorded at net of related custodial fees. The total investment custodial fees for the year ended March 31, 2015 and 2014, were $35,838 and $33,645, respectively.

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NOTE 5 - Investments (Continued)

Investments in debt securities and equity securities with readily determinable fair values are carried at market or appraised value, realized and unrealized gains and losses are reported in the statement of activities. The investment return, which is included in revenue and support as a component of investment income, is composed of the following for the years ended March 31, 2015 and 2014:

Interest and dividend income Less investment expenses Net realized gain (loss) on sale of investments Net unrealized gain (loss) on investments

2015 $ 78,744

-36,199 171,666 -81,881

$ 132,330

Investments at March 31, 2014 were comprised of the following:

Market Portfolio Cost Value Percentage

Common Stock: Energy $ 103,194 $ 128,723 4 Materials 47,520 49,580 2 Industrial 169,056 260,011 8 Consumer Discretion 263,607 295,829 9 Consumer Staples 52,764 88,522 3 Health Care 138,807 225,698 7 Financials 351,989 458,856 14 Information Tech 217,813 199,321 6 Utilities 55,597 83,319 3 Diversified Equity 220,285 228,983 7 Total Common Stock $1,620,632 $2,018,842 63

Bonds: Fixed Income $ 51,554 $ 49,980 2

U.S. Corporate 679,475 690,563 21

Municipal/FNMA 461,592 467,004 14 Total Bonds $1,192,621 $1,207,547 37

Total Investments $2,813,253 $3,226,389 100

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$

$

$

$

$

2014 $ 82,246

-33,720 133,606 141,912

$ 324,044

Unrealized Gain/Loss

25,529 2,060

90,955 32,222 35,758 86,891

106,867 -18,492 27,722

8,698 398,210

-1,574 11,088

5,412 14,926

413,136



NOTE 5 - Investments (Concluded)

Investments at March 31, 2015 were comprised of the following: Market Portfolio Unrealized

Cost Value Percentage Gain/Loss Common Stock: Energy $ 267,022 $ 233,804 7 $ -33,218 Materials 227,516 197,396 6 -30,120 Industrial 202,866 292,331 9 89,465 Consumer Discretion 311,044 403,763 12 92,719 Consuler Staples 101,213 151,911 5 50,698 Health Care 100,979 150,497 5 49,518 Financials 222,195 283,379 9 61,184 Information Tech. 78,934 79,981 2 1,047 Telecomminication 77,279 78,105 2 826 Utilities 105,444 131,018 4 25,574 International Fund 45,522 43,648 1 -1,874 Total Common Stocks 1,740,014 2,045,833 62 305,819

Notes & Bonds: U.S. Corporate 555,647 566,915 16 11,268 Municipal 317,394 326,119 10 8,725 Treasury Notes 150,591 153,942 5 3,351 GNMA 56,550 57,435 2 885 FNMA 93,805 99,943 3 6,138 CMO 53,164 52,317 2 -847 Total Notes & Bonds 1,227,151 1,256,671 38 29,520

Total Investments $ 2,967,165 $ 3,302,504 100 $ 335,339

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NOTE 6 - Fair Value Measurements

The F ASB issued new guidance on fair value measurements. This guidance defines fair value as the price that would be received for an asset or paid to transfer a liability (an exit price) in the Foundation's principal or most advantageous market for the asset or liability in an orderly transaction between participants on the measurement date.

This guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance describes three levels of inputs that may be used to measure fair value:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Foundation has the ability to access as of the measurement date. The fair values of debt and equity investments that are readily marketable are determined by observing quoted prices from nationally recognized securities exchanges.

Level 2: Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. The fair market values are typically the original principal value plus accrued interest earned.

Level 3: Significant unobservable inputs that reflect a reporting entity's own assumptions about the assumptions that market participants would use in pricing an asset or liability.

In many cases, a valuation technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy. The lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy.

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NORTH FLORIDA COMMUNITY COLLEGE FOUNDATION, INC. NOTES TO THE FINANCIAL STATEMENTS For the Years ended March 31, 2015 and 2014

NOTE 6 - Fair Value Measurements (Concluded)

Financial and nonfinancial assets and liabilities measured at fair value on a recurring and nonrecurring basis are summarized below:

Investments restricted for

endowment purposes:

Cash & cash equivalents

Equity Securities

Total investments restricted for

endowment purposes

Investments restricted for

endowment purposes:

Cash & cash equivalents

Equity Securities

Total investments restricted for

endowment purposes

NOTE 7 - Endowments

Fair Value Measurement at March 31, 2014

Level 1 Level 2 Level 3 Total

$ 328,239

3,226,389

$3,554,628

----

====

$ 328,239

3,226,389

$3,554,628

Fair Value Measurement at March 31, 2015

Level 1 Level 2 Level 3 Total

$ 392,459

3,302,504

$3,694,963

---

====

$ 392,459

3,302,504

$3,694,963

The Foundation's endowments consist of one hundred seventeen donor restricted funds and one board designated, unrestricted fund. As required by generally accepted accounting principles, net assets associated with endowment funds are classified and reported based on the existence or absence of donor-imposed restrictions.

The Foundation is governed by Florida Statute Chapter 1010.10 - Florida Uniform Management of Institutional Fund Act. The Uniform Prudent Management of Institutional Funds Act (UPMIF A) has not been enacted in the State of Florida. Unless a donor imposes a restriction to the contrary, all endowment funds at the Foundation adhere to the spending policy adopted by the Foundation's Board of Directors. Florida Statute does not require preservation of the fair value of the original gift, but rather specifically states that spending may include investment appreciation as well as principal.

With regard to donor restricted endowments, the Foundation respects and enforces the donor's restriction(s) to preserve the historic gift value of the fund.

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NORTH FLORIDA COMMUNITY COLLEGE FOUNDATION, INC. NOTES TO THE FINANCIAL STATEMENTS- Concluded

For the Years ended March 31, 2015 and 2014

NOTE 8 - Concentration of Credit Risks

The Foundation maintains cash balances at a financial institution located in Madison County, Florida. The accounts are insured by the Federal Deposit Insurance Corporation up to $250,000 as of March 31, 2015 and 2014. At March 31, 2015 and 2014, the Foundation had $0.00 uninsured cash balances for each year, respectively.

The Foundation also maintains cash and cash equivalents held in short-term investments with Raymond James & Associates. These funds are invested in short-term money market ft.mds which are protected by the Securities Investor Protection Corporation (SIPC), a nonprofit corporation established by the federal government which protects securities customers and its members that become insolvent or are liquidated. If any client's securities or cash are missing from eligible client accounts, SIPC works to replace those securities and cash. SIPC provides a maximum of $500,000, including up to $250,000 on claims for cash. As of March 31, 2015 and 2014 the Foundation maintained cash and cash equivalent balances with Raymond James & Associates in the amount of $335,642 and $279,221, respectively.

NOTE 9 - Contributions Receivable

The contributions receivable consist of unconditional promises to give for the Foundation's various programs. All contributions receivable are collectible within one year.

NOTE 10 - Subsequent Review

Transactions and events occurring subsequent to March 31, 2015, to the date of the report, have been reviewed by management to determine if any disclosure is required. No disclosure was required.

NOTE 11 - Presentation of Fund Raising Expenses

In prior years, the certain fund raising expenses associated with Artist Series presentation were reported as Other Services or Miscellaneous on the Statement of Functional Expenses. For the current year, these expenses are reported as Fund Raising Expenses. The prior year was not restated on these comparable statements.

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SUPPLEMENTARY INFORMATION





Voice {850) 539-5690 Fax {850) 539-5994

INDEPENDENT AUDITOR'S REPORT ON SUPPLEMENTARY INFORMATION

To the Board of Directors North Florida Community College

Foundation, Inc. Madison, Florida

We have audited the financial statements of North Florida Community College Foundation, Inc. (a non-profit organization) as of and for the years ended March 31, 2015 and 2014, and have issued our report thereon dated August 19, 2015, which contained an unmodified opinion on those financial statements. Our audit was performed for the purpose of forming an opinion on the financial statements as a whole.

The schedule of functional expenses is presented for the purpose of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audits of the financial statements and certain additional procedures, including comparing and recording such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements taken as a whole.

(Jd,._ -{ tZl~ / / #;, c,/#i Ashmore & Ashmore, P.A. Certified Public Accountants August 19, 2015

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NORTH FLORIDA COMMUNITY COLLEGE FOUNDATION, INC. SCHEDULE OF FUNCTIONAL EXPENSES

For the year ended March 31, 2015 (With Comparative Totals for 2014)

2015 Program General and Services Administrative Total

EXPENSES: Personnel services $ $ 129,188 $ 129,188 Facilities 12,000 12,000 Professional Fees 7,250 7,250 Other Services Supplies & Materials 98 67 165 Scholarships 199,909 199,909 Food 131 1,128 1,259 Insurance 912 912 Postage 115 640 755 Miscellaneous 720 846 1,566 Fund Raising Expenses 20,122 20,122

Total Expenses $ 221,095 $ 152,031 $ 373,126

See independent auditor's report on supplementary information. -16-

2014 Total

$ 108,634

7,250 5,112

114 166,867

897 918 235

10,329 4,442

$ 304,798





Voice {850) 539-5690 Fax (850) 539-5994

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

Board of Directors North Florida Community College Foundation, Inc. Madison, Florida

We have audited, in accordance with the 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, the financial statements of North Florida Community College Foundation, Inc. (a nonprofit organization), which comprise the statement of financial positions as of March 31, 2015 and 2014, and the related statements of activities, and cash flows for the years then ended, and the related notes to the financial statements, and have issued our repmi thereon dated August 19, 2015.

Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered North Florida Community College Foundation, Inc.'s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of North Florida Community College Foundation, Inc.'s internal control. Accordingly, we do not express an opinion on the effectiveness of the North Florida Community College Foundation, Inc.' s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the nonnal course of perfonning their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material wealmess is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material wealmess, yet important enough to merit attention by those charged with governance.

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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 - Concluded

Internal Control Over Financial Reporting- concluded Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify a certain deficiency in internal control, described in Finding 2015-01 in the accompanying schedule of findings and responses that we consider to be a significant deficiency.

Compliance and Other Matters As part of obtaining reasonable assurance about whether North Florida Community College Foundation, Inc.'s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations and contracts, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that were required to be reported under Government Auditing Standards.

North Florida Community College Foundation, Inc.'s Response to Findings North Florida Community College Foundation, Inc.'s response to the finding identified in our audit is described in the accompanying schedule of findings and responses. North Florida Community College Foundation, Inc.'s response was not subject to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.

Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Foundation's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Foundation's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

c:u'-- c c~...._ /4-, {;/4-, Ashmore & Ashmore, P.A. Certified Public Accountants Havana, Florida August 19, 2015

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NORTH FLORIDA COMMUNITY COLLEGE FOUNDATION, INC. SCHEDULE OF FINDINGS AND RESPONSES

Year Ended March 31, 2015

2015-01 Segregation of Duties Criteria: Separation of incompatible duties provides increased assurances that errors or irregularities will not go undetected for long periods of time.

Condition: The primary weakness in the internal control is one for which no immediate practicable solution is available. One of the basic tenets of sound internal control is the separation of duties among personnel. The Foundation has limited staff. Therefore, separation of all incompatible duties is not currently feasible. We report this condition to make the Foundation aware that separation of duties is desirable.

Effect: Lack of separation of incompatible duties could result in errors and irregularities that go undetected for extended periods of time.

Recommendation: We recommend that incompatible duties be separated where practicable, and for the Foundation's Board continue to provide oversight and guidance.

Management's Response: The Foundation agrees with this finding and recommendation. We will continue to separate incompatible duties where possible, and the Foundation's Board will continue to provide oversight and guidance.

Status of Prior Year Finding:

2014-01 Segregation of Duties - We noted in our prior audit that the Foundation did not have the personnel to provide for adequate separation of duties for proper internal controls. This finding also applies to our current audit. Refer to Finding 2015-01.

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