The audit of the financial statements of the Florida Agricultural and Mechanical University for the fiscal year ended June 30, 2004, was conducted pursuant to the provisions of Section 11.45, Florida Statutes, and applicable standards contained in Government Auditing Standards issued by the Comptroller General of the United States.

The scope of this audit included an examination of the financial statements of the University, a component unit of the State of Florida, and a determination as to whether management has complied with applicable laws, administrative rules, regulations, contracts, and grant agreements and other matters that are material to the financial statements.  An examination of Federal awards administered by the University is included in our Statewide audit of Federal awards administered by the State of Florida.

The following provides a summary of the findings of our audit of the financial statements of the University:

• We found that the University's financial statements presented fairly, in all material respects, the financial positions of the University and its discretely presented component units as of June 30, 2004; the revenues, expenses, and changes in net assets; and the cash flows for the fiscal year then ended.

• We noted certain matters involving the University's internal control over financial reporting and its operation that we considered to be material weaknesses.  These material weaknesses, including the University’s responses, were reported in a September 2004 operational audit, report No. 2005-032, finding Nos. 2, 3, 4, and 5.  We also reported a matter, including the University’s response, that was not considered a reportable condition in finding No. 6.

• The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

We expanded our audit procedures to determine the adjustments to account balances and related note disclosures necessary for fair presentation of the University’s financial statements.  Adjustments were accepted by the University to properly report account balances and related note disclosures in the accompanying financial statements.