The audit report summarizes the financial activities and internal controls of the Nicholls State University Athletic Department for the year ended June 30, 1996. It reviews revenues and expenditures of the department and the Colonel's Club outside organization. It was found that financial statements accurately represented the department's financial activity and that internal controls were properly designed and implemented.

1. DR.DO NA LD J.AYO ,PRESIDENT
N IC HO LLS STA TE U N IV ERSITY
STATE O F LO UISIA NA
A uditReport,June 30,1996
LEGISLATIVEA UDITOR
EXPENDITURES O F O UTSIDE O RGA NIZATIO N
M A DE FO R O R IN BEHA LF O F THE NICHO LLS
STATE!UNIVERSITY INTERCO LLEG IATE ATHLETICS
PRO G RA M
Review ofFinancialA ctivities
ofO utside O rganizations
W e obtained w ritten representation from m anagem entofthe university thatthe
Colonel's Club was the only outside organization created fororin behalfofthe
athletic departm ent. In addition,we obtained from the university a statem entof
activitiesforthe yearended June 30,1996,forthe Colonel's Club and traced the
figures from the statem ents to the university athletic departm ent's general
ledger. Figures from the Colonei's Club account were traced to the club's
supporting records. W e also reconciled the expenses incurred by the outside
organization for or in behalf of the athletic departm ent to the statem ent of
revenues and expenditures,and we reconciled direct paym ents ofthe outside
organization to the accounting records of the university and to the revenues
reported on the statementofrevenues and expenditures (StatementA). The
financial activity of the Colonel's Club account w ithin the Nicholls College
Foundation,Incorporated,forthe yearended June 30,1996,is asfollows:
Fund balance,July 1,1995
Revenueandothersupport(donation,
fund-raisers,etc.)
Transferto Nichorls State UniversityAthletic
Agency Fund
Expensesfororin behalfofthe Nicholls State
UniversityAthletic Departm ent-direct
reim bursem ents
Fund balance.June 30.1996
$68,487
24,478
(70,518)
(3,449)
$18.998
The university receives m onthlyfinancialstatem ents from the boosterclub as a basisto
m onitorspending ofthe organization forathletics. The Nicholls College Foundation's
statem ents are audited annually by an independentcertified public accounting firm .

2. DR.DO NA LD J.AYO ,PRESIDENT
NICHO LLS STATE UNIVERSITY
STATE O F LO UISIANA
A uditReport,June 30,1996
LEGISLATIVEAUDITOR
NTERNA L CO NTRO L PO LICIES A ND
PRO CEDURES RELATING TO
INTERCO LLEG IATE ATHLETICS -
AG REED-UPO N PRO CEDURES
M anagem entofNichofls State University is responsible forestablishing and m aintaining
a system of internalaccounting control. In fulfilling this responsibility,estim ates and
judgments by managementare required to assessthe expected benefits and related
costs ofcontrolprocedures. The objectives ofa system are to provide management
w ith reasonabte,butnotabsotute,assurance thatassets are safeguarded againstloss
from unauthorized use ordisposition and thattransactions are executed in accordance
w ith m anagem ent's authorization and recorded properly to perm it the preparation of
financialstatem ents in accordance with generally accepted accounting principles.
Because of inherent lim itations in any internal control structure, errors and/or
irregularities may,nevertheless,occurand notbe detected. Also,projection ofany
evaluation ofthe system to future periods is subjectto the riskthatprocedures may
becom e inadequate because ofchanges in conditions orthatthe degree ofcom pliance
w ith the procedures m ay deteriorate.
The m inim um agreed-upon procedures, applied to certain aspects of the athletic
departm ent's internalaccounting control,were m ore lim ited than would be necessary to
express an opinion on the system of internalaccounting controltaken as a w hole.
Because our study and evaluation was lim ited to applying m inim um agreed-upon
procedures discussed in the follow ing paragraphs to certain aspects of the internal
accounting control,w e do not express an opinion on w hether the system of internal
accounting controlofthe Nicholls State University Athletic Departm ent,in effectforthe
yearended June 30,1996,taken as a whole,was sufficientto meetthe objectives
stated previously. In connection with our appSed procedures, we noted certain
opportunities for im provem ent in the system of internal accounting control. O ur
m inim um agreed-upon procedures are as follow s:
Testofthe InternalControlEnvironm ent
W e perform ed a prelim inary review of the internalaccounting controlof the
athletic departm ent by reviewing the organizational chart prepared by the
associate athletic director and by perform ing tests on the flow oftransactions
through the accounting system .

3. DR.DO NALD J.AYO ,PRESIDENT
N IC t'IO LLS STATE U N IV ERSITY
STA TE O F LO UISIA NA
AuditReport,June 30,1996
LL:LW M :dl
LEGISLATIVEAUDITOR
BoosterG roup A ctivities
W e reviewed the university's procedures form onitoring boostergroup activities.
The vice presidentforInstitutionalAdvancem ent,who isan ex-officio m em beron
the board ofthe Nicholls College Foundation,Incorporated,and to whom the
athletic director reports,attends board m eetings and receives annualfinancial
statem ents from the foundation. In addition, the associate athletic director
m aintains the financial records of the Colonel's Club account w ithin the
foundation.
./~ ectfullysubmitted;/
DanielG .Kyle,CPA ,CFE
Legislative Auditor

4. DR.DO NA LD 3.AYO ,PRESIDENT
N IC HO LLS STATE U NIV ER SITY
STATE O F LO UISIANA
AuditReport,June 30,1996
LEGISLATIVEA UDITOR
STATEM E'NT O F REVENUES A ND EXPENDITURES
TestofStatem ent
W e obtained from m anagem entthe statem entofrevenues and expenditures for
the yearended June 30,19g6,as shown on Statem entA ,and requested written
representation from m anagem ent as to its fair presentation. In addition,we
verified the m athem aticalaccuracy ofthe am ounts on the statem entand traced
the am ounts on the statem ent to various accounts in the revenue and
expenditure ledgers of the university. W e noted no differences between the
am ounts in the revenue and expenditure ledgers and the am ounts on the
statem ent.
Com parison ofStatem ents
W e com pared the statem ents ofrevenues and expenditures forJune 30,1995,
and June 30, 1996, to determ ine the percentage of increase or decrease
between the tw o years. The university provided satisfactory responses forany
m aterialvariances betw een the tw o years.
Com parison ofBudgetto Actua
Revenues and Expenditures
W e com pared the am ount of budgeted revenues and expenditures to actual
revenues and expenditures forthe yearended June 30,1996,to determ ine if
there were any m aterialbudgetvariances. The university provided satisfactory
responsesforany m aterialvariances between budgeted and actualam ounts.
Contributions Exceeding Ten
PercentofTotalContributions
W e obtained from m anagem ent a list of contributions received by the athletic
departm ent and determ ined that there w as one individual contribution, from
State Farm Insurance Companies totaling $27,660,thatexceeded ten percent
($21,679)ofthetotalcontributions.

5. Nicholls State University is a publicly supported institution ofhighereducation. The university is
a com ponentunitofthe State ofLouisiana w ithin the executive branch ofgovernm ent. The
Nicholls State University Athletic Department, which operates the intercollegiate athletics
program ,is a partofNicholls State University. The accom panying financialstatem entpresents
inform ation only asto the transactions ofthe NichollsState UniversityAthletic Departm ent.
SUM M ARY O F SIG NIFICA NT ACC O UNTING PO LICIES
A . FUND A CCO UNTING
To observe lim itations and restrictions placed on the use of available resources,the
accounts ofNichol/s State University are m aintained in accordance with the principles of
fund accounting. Such principles prescribe the m annerin w hich resources forvarious
purposes are classified,foraccounting and reporting purposes,into funds thatare in
accordance with the activitiesorspecified objectives. Accounts are maintained forthe
transactions ofthe athletic departm entas follows:
CurrentFunds -Unrestricted
Unrestricled current funds include allfunds for operating purposes on w hich
there are no restrictions,exceptthe budgetary controlprovisions included in the
annuallegislative appropriation act,and include the G eneralFund and auxiliary
enterprise funds. The auxiliary enterprise funds include the accounts of the
athletic departm ent.
Agency Funds
This fund group represents funds forw hich the university acts as custodian or
fiscalagenton behalfofothers,such as contributions and interestearnings of
the athletic departm ent.
B. BASIS O F ACCO UNTING
The accounts of the athletic departm ent are m aintained on the accrual basis of
accounting as follows:

6. ST A T E O F L O U ISIA N A
L E G ISL A T IV E A U D IT O R
Athletic Departm ent
Nicholls State U niversity
Sta te ofLouisiana
Thibodaux,Louisiana
April23,1997
Financialand C om pliance A uditD ivision
D anielG .K yl'-~ e,
Ph.D .,C PA ,C FE
Legislative A uditor

7. LEGI.C;LATIVE A UDITOR
ATHLETIC DEPA RTM ENT
NIC HO LLS STATE U NIV ERSITY
STA TE O F LO UISIA NA
NotestotheFinancialStatement(Continued)
Revenues
Substantially allrevenuesare recognized w hen earned
Expenditures
Expenditures are generally recognized underthe accrualbasis of accounting
whenincurred,exceptthat(1)depreciationisnotrecognized;(2)annualandsick
leaveare recognizedwhenpaid;and (3)facultysalariesand related benefitsfor
June are notprorated butare deferred to the succeeding year.
C. EM PLOYEE CO M PENSATED A BSENCES
Em ployees ofthe university working in the athletic departm entearn annualand sick
leave in accordance w ith state law and adm inistrative regulations. Leave benefits are
reflected in the accom panying financialstatem entwhen paid.
D. TO TA L C O LUM N O N STATEM E-NT
The totalcolumn on StatementA iscaptioned Memorandum Only (overview)to indicate
that itis presented only to facilitate financialanalysis. Data in this colum n does not
present results of operations in conform ity with generally accepted accounting
principles. Neitheris such data com parable to a consolidation.
CONTRIBUTIONS (GIFTS-IN-KIN[))
FRO M O UTSIDE O RGA NIZATIO NS
The follow ing is a sum m ary of contributions-in-kind received and reported as revenues and
expenditures on Statem entA :
Revenues
A utom obile dealerships -use ofone courtesy careach
J.G raham Dodge,Inc.
Dantin M otors,Inc.
G reg LeBlanc Nissan
Brow n Ford,Inc.
G eriLeBlanc Pontiac Buick G M C Truck
Howard Johnson -lodging forrecruits on officialvisits
Chiropractic and PhysicalTherapy Clinic,Inc.-
chiropractic and physicaltherapy services
$3,000
3,000
3,000
3,000
3,000
2.500
3.000

8. LEGISLATIVE"-AUDITOR
ATHLETIC DEP A RTM ENT
N IC HO LLS STA TE U N IV ERSITY
STATE O F LO UISIA NA
Notestothe FinancialStatement(Conclucled)
3
Revenues(Cont.)
Kern's Drycieaning,Inc.-laundry services
Bayou Country Club -use ofgolfing facilities
EIlendale Country Club -use ofgolfing facilities
Thibodaux Driving Range -use ofgolfing facilities
E.D.W hite High School-use oftrack
Johnny's M en's Shop -uniform clothing forathleticevents
Piccadilly Cafeteria -postgam e m eals and catering serv ices
BollingerShipyard,Inc.-footballblocking sled
A nlyn System s,Inc.-facsim ile services
Totalrevenues
Expenditures
O perating services
Travel
Supplies
Professionalservices
Equipm ent
Totalexpenditures
O UTSIDE O RG A NIZATIO NS C REATED
FO R O R IN BEHA LF O F THE NICHO LLS
STATE UNIVERSITY INTERCO LI..EG IATE
ATH LETICS PRO G RA M
$1,500
100
200
1,500
500
3,000
3,000
795
250
$31,345
$19,050
2,500
6,000
3,000
795
$31,345
The Colonel's Club is the only outside organization created fororin behalfofthe Nicholls State
University Intercollegiate Athletics Program . "]he accounts forthis club are m aintained as an
athletic agency fund ofNicholls State University and as an accountw ithin the Nicholls College
Foundation, Incorporated, w hich is a separate corporation. The athletic director and the
associate athletic directordeterm ine the am ounts transferred to the University Athletic Agency
Fund forthe Foundation.
10

9. ATHLETIC DEPA RTM ENT
NICHO LLS STATE UNIVERSITY
STATE O F LO UISIA NA
Statem entofRevenues and Expenditures
Forthe YearEnded June 30,1996
REVENUES
Educationandgeneraltransfers
G ate receipts
Guarantees
Commissions
NCAA receipts
In-kindcontributions(note2)
Outsidefunds(note3)
M iscellaneous
Totalrevenues
EXPENDITURES
Personalservicesand related benefits
Travel
O perating service s
Supplies
Professionalaervi(:es
G uarantees
Scholarships
Othercharges
Equ,pment
]otalexpenditures
EXCESS O F REVENUES OVER EXPENDITURES
(PORTION OF)
CURRENT FUNDS -
UNRESTRICTED -
AUXILIARY ATHLETIC
ENTERPRISE AG ENCY
FUND FUND
$1,570,000
89,975
232,000
4,954
298.360
14.824
2,210,113
862,428
211,019
184,363
76,399
164,747
5,750
641,688
2,095
292
2.148.781
$31,345
257.308
288.653
45,309
39,765
39,005
68,818
4.450
30,648
1,049
229.044
$61,332 $59,609
250,784
223,368
145,217
169,197
5,750
641,688
32,743
1.341
2,377,825
$120,941

10. I)ANIEI,O.KYLE,P!I,D.,CPA,CFE
LEGISLATIVE AUDITOR
OFFICE:OF
LEG ISLA TIV F.A U D ITO R
STATE OF LOU ISIAN A
BATON ROUG E,1,OUISIANA 70804-9397
M arch 20.1997
nder)endentA uditor's Reoort
DR.DO NALD J.AYO ,PRESIDENT
NICHO LLS STATE UNIVERSITY
STATE O F LO UISIA NA
Thibodaux.Louisiana
1600NOR'I'|ITIIIRI)S]RI,:I~I
POS3 0|:FICE BOX 94397
TELEPtlONE:(504)339-3800
FACSIMILE: (504)339-3870
W e have audited the generalpurpose financialstatem ents of Nicholls State University, a
com ponentofthe State ofLouisiana reporting entity,as ofJune 39,1996,and forthe years
ended June 30, 1996, and June 30, 1995, and have issued our report thereon dated
Decem ber19,1996. As requested by the university,we have also applied certain m inim um
agreed-upon procedures contained in the National Collegiate Athletic Association Financial
AuditG uidelines to the accounting records and system of internalaccounting controlofthe
Nicholls State University Athletic Departm entand to the related outside organization created for
orin behalfofthe university's Intercollegiate Athletics Program forthe yearended June 30,
1996, solely to assist the university in com plying w ith the National Collegiate Athletic
Association (NCAA) Bylaw 6.2.3.1. It is understood that this report is solely for your
inform ation. How ever,by provisions ofstate law ,this reportis a public docum entand has been
distributed tothe appropriate publicofficials.
Because the follow ing m inim um agreed-upon procedures do notconstitute an auditm ade in
accordance with generally accepted auditing standards,we do notexpress an opinion on any of
the accounts or item s on the accom panying statem entof revenues and expenditures ofthe
athletic departm ent or on the sum m ary of financial inform ation of the related outside
organization included in this report. In connection with the follow ing m inim um agreed-upon
procedures,nothing cam e to ourattention thatcaused us to believe thatthe specified accounts
oritems should be adjusted. Had we performed additionalprocedures orhad we made an
auditofanyfinancialstatem ents ofthe Intercollegiate Athletics Program and the related outside
organization of the Nicholls State University, in accordance w ith generally accepted
governm entalauditing standards, m atters m ight have com e to our attention that w ould be
reported to you. This report relates only to the accounts and item s discussed on the follow ing
page,,; and does not extend to the financial statem ents of Nicholls State University, its
Intercollegiate Athletics Program ,orthe related outside organization taken as a whole. Our
m inim um agreed-upon proceduresfollow :

11. A THLETIC DEPA RTM ENT
NIC HO LLS STAT["UNIVERSITY
STATE O F LO UISIA NA
FinancialStatem entand
IndependentAuditor's Report
Forthe YearEnded June 30.1996
ndependentAuditor'sReport (including
sectiononinternalcontrol)
FinancialStatem ent-Statem entof
Revenues and F_xpenditures
Notes to the FinancialStatem ent
CO NTENTS
Statem ent Page No
A
2
7
8

12. LI'G ISLATIVE A U DIT A DVISO RY CO UNC IL
M EM BERS
Representative Francis C .Thom pson,C hairm an
SenatorRonald C .Bean,V ice C hairm an
SenatorRobertJ.Barham
SenatorW ilson E.Fields
SenatorThom as A .G reene
SenatorCraig I-'.Rom ero
Representative F.C harles M cM ains,Jr
Representative Edw in R.M urray
Representative W arren J.Triche,Jr.
Representative David Vitter
DanielG .Kyle,Ph.D.,CPA ,CFE
A lbertJ.Fi:obinson,Jr.,C PA

13. ATHLETIC DEPA RTM ENT
NIC HO LLS STATE U NIVERSITY
STATE O F:LO UISIA NA
Thibodaux,[.ouisiana
FinancialStatem entand
IndependentAuditor's Reports
Forthe YearEnded June 30,1996
April23,1997