Garden City Community College received good news on its 2013-14 audit report Tuesday night at the Board of Trustees meeting.

Charles H. Claar, Jr., of Lewis, Hooper and Dick, LLC, presented the audit, stating there were no weaknesses or deficiencies in the college’s financial statements or federal awards.

According to the report, GCCC’s assets exceeded its liabilities at the close of the most recent fiscal year by $25,039,923. Of this amount, $8,515,840 may be used to meet the college’s ongoing obligations to citizens and creditors. The college’s total net position increased by $985,691.

Claar told trustees that the college’s total assets are $38,050,307, its total operating revenue is $9,026,146, and its total non-operating revenue is $14,327,442.

According to the report, operating revenues decreased by $928,274, or 9.33 percent, from fiscal year 2013, due primarily to a decrease in revenues from federal grants.

Using a pie chart in his Power Point summary of the audit report, Claar showed GCCC ‘s revenue coming from eight major sources: Finney County property taxes, 46 percent; state and local grants, 2 percent; state appropriations, 13 percent; federal grants and contracts, 20 percent; tuition and fees, 5 percent; auxiliary funds, 6 percent; other miscellaneous sources, 5 percent; and investment income, 1 percent.

According to the report, operating expenses increased by $1,271,835, or 6.1 percent, from 2013, due primarily to overall cost increases.

Actual expenditures, excluding transfers, for the general fund were under budget by $1,157,651, or 8.1 percent, and GCCC operated within its legal budget authority as required by the State of Kansas.

According to the report, the college’s capital assets increased $682,460 from 2013, as a result of construction in progress. Major projects during fiscal year 2014 included the multi-sports facility and renovations to the John Collins building.

The report also said that GCCC ‘s long-term debt decreased by $1,262,796, or 14.01 percent, during the current fiscal year. The key factor in this decrease, the report said, was due to payments on numerous lease obligations and no new debt issued during the year.

Theresa Dasenbrock, also with Lewis, Hooper and Dick, told trustees that there were some material weaknesses found in the accounting practices of the Endowment Association, mostly related to a change in personnel.

“There has been no misappropriation of funds. This is an issue with the financial reporting,” said Dee Wigner, executive vice president of GCCC.

Wigner also said that the Endowment Association’s board of trustees recently approved an agreement that would allow the college’s accounting department to take over the bookkeeping for the Endowment Association.

“The agreement will be signed Monday at the Endowment Association meeting,” Wigner said.

Trustees also voted for the college to contract with the Gibson, Mancini, Carmichael and Nelson architectural firm at a rate of 6.5 percent of the projected $400,000 construction cost to renovate the former Center for Independent Living, located on Spruce St, where the college will move and expand its welding program.

The renovations to the building will be funded by a portion of the $1,975,549 in grant money the college recently was awarded from the Trade Adjustment Assistance Community College and Career Training grant, co-administered by the U.S. Dept. of Labor and U.S. Department of Education.

The grant was awarded to a consortia consisting of GCCC, Washburn University, Washburn Institute of Technology, Flint Hills Technical College and Wichita Area Technical College.