Exhibit G

Name of College Statement of Cash Flows For the Fiscal Year Ended June 30, 2005

2005 CASH FLOWS FROM OPERATING ACTIVITIES Received from customers Payments to employees and fringe benefits Payments to vendors and suppliers Payments for scholarships and fellowships Loans issued to students Collection of loans to students Other receipts (payments) Net cash used by operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES State aid received County appropriations Noncapital grants received Noncapital gifts and endowments received Net cash provided by noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES State capital aid received County capital appropriations Capital grants received Capital gifts received Proceeds from capital debt Proceeds from sale of capital assets Proceeds from insurance on capital assets Acquisition and construction of capital assets Principal paid on capital debt and leases Interest paid on capital debt and leases Net cash provided (used) by capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sales and maturities of investments Investment income Purchase of investments and related fees Net cash provided (used) by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, July 1 Cash and cash equivalents, June 30 $ -

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Exhibit G, cont.

Name of College Statement of Cash Flows For the Fiscal Year Ended June 30, 2005

Reconciliation of operating loss to net cash used by operating activities: Operating loss Adjustments to reconcile operating loss to net cash used by operating activities: Depreciation expense Provision for uncollectible loans and writeoffs Miscellaneous nonoperating income Changes in assets and liabilities: Receivables, net Inventories Prepaid items Notes receivable, net Accounts payable and accrued liabilities Due to primary government Due to State of North Carolina component units Deferred revenue Funds held for others Compensated absences Total adjustments Net cash used by operating activities

Note 1

B-11 Note 2 E-48 Note 3 A-2 A-3 Note 4 Note 5 A-4 A-5 Note 6 E-36 D-5

Noncash investing, capital, and financing activities: Assets acquired through assumption of a liability Assets acquired through a gift Change in fair value of investments Capital asset write-offs Increase in receivables related to nonoperating income

Note 7

Note 8 Note 9 E-40 C-6

Note 10

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Exhibit G, cont.

Name of College Statement of Cash Flows For the Fiscal Year Ended June 30, 2005

Notes - Reconciliation Section (1) Each statement caption should be analyzed to determine which asset and liability accounts impact accrued operating revenues and expenses. You only need to calculate the changes in accounts that impact operating revenues and expenses. Examples of assets not impacting operating revenues include pledges receivable (gifts considered nonoperating revenues), intergovernmental receivables related to nonexchange transactions (related to nonoperating revenues), interest receivable (investment income considered nonoperating revenues), and due from primary government and due from component unit related to nonexchange transactions (related to nonoperating revenues). Examples of liabilities not impacting operating expenses include accounts payable associated with construction in progress (CIP is capitalized - not expensed) and interest payable (interest expense is nonoperating). Also, you should analyze statement captions to determine which asset and liability accounts impact cash flows from operating activities but not operating revenues and expenses (e.g., inventories, prepaid items, deferred revenues, and funds held for others). Provision for uncollectible loans and writeoffs Notes receivable, net - change in allowance for doubtful accounts Notes receivable, net - loans written off Total Receivables, net (Note: enter an increase as a negative number) (Increase) decrease in accounts receivable - tuition and fees, net (Increase) decrease in accounts receivable - sales and services/other operat (Increase) decrease in accounts receivable - students (financial aid, etc.) (Increase) decrease in accounts receivable - nonoperating (Increase) decrease in accounts receivable - travel advances (Increase) decrease in intergovernmental receivable - operating (Increase) decrease in private grantors receivable - operating (Increase) decrease in interest receivable - loans Total Notes receivables, net (Note: enter loans issued to students as a negative number) Loans issued to students (enter as a negative number) Collection of loans to students (enter as a positive number) Total Accounts payable and accrued liabilities (Note: enter a decrease as a negative number) Increase (decrease) in accounts payable - operating goods and services Increase (decrease) in accrued payroll Total

(2)

E-51

E-52

(3)

E-1 E-2 E-3 E-4 E-5 E-6 E-9

E-15

(4)

E-49

E-50

(5)

E-21

E-23

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Exhibit G, cont.

Name of College Statement of Cash Flows For the Fiscal Year Ended June 30, 2005

(6)

Deferred revenues (Note: enter a decrease as a negative number) Increase (decrease) in deferred revenues - student tuition and fees Increase (decrease) in deferred revenues - operating grants/contracts Total

E30 E31

Notes - Noncash Section (7) Paragraph 37 of GASB Statement No. 9 requires that changes in assets and liabilities reported on the balance sheet resulting from noncash investing, capital, or financing activities be disclosed. Either a tabular or a narrative format may be used for this purpose, but the disclosure must be physically attached to the statement of cash flows itself, rather than presented in the notes to the financial statements. According to the Q/A to Statement No. 9, noncash transactions should only be reported if they would have been classified in any one of the following categories had they been cash transactions: (a) cash flows from noncapital financing activities, (b) cash flows from capital and related financing activities, or (c) cash flows from investing activities (Source: GFOA GAAFR Review, November 1995) . Noncash section - assets acquired through the assumption of a liability Increase in accounts payable - capital assets (capitalized on Exhibit A) Increase in contracts payable Increase in notes payable Increase in capital leases payable Total Noncash section - assets acquired through a gift Capital assets - increases: donations at fair value Investments: donations of investments/securities (at fair value) Total

(8)

E-22 E-24 D-6 D-3

(9)

C-3 E-38

(10) Noncash section - increase in receivables related to nonoperating income Increase in intergovernmental receivable Increase in private grantors receivable Increase in pledges receivable Increase in interest receivable - investments Increase in due from primary government Increase in due from State of NC component unit Total

E-7, E-8 E-10, E-11 E-12, E-13 E-14

E-16,17,18 E-19, E-20

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Exhibit G, cont.

Name of College Statement of Cash Flows For the Fiscal Year Ended June 30, 2005

Notes - Other (11) In this illustration, agency fund transactions are considered immaterial. Therefore, agency receipts and disbursements are shown net on a single line in the operating activities section (i.e., "Other receipts (payments)"). If agency fund activity during the year is material, agency receipts and disbursements will need to be reported at gross on separate lines. (12) This illustration also assumes that no funds were received from direct lending programs. If such funds were received during the year, receipts and disbursements of direct lending monies should be reported at gross on the cash flow statement in the noncapital financing section. During the year, these funds should have been reported as agency transactions.

Error Checks - Net increase in cash and cash equivalents agrees with change on balance sheet - Beginning cash and cash equivalents per cash flow statement agrees with the balance sheet - Ending cash and cash equivalents per cash flow statement agrees with the balance sheet - Net cash used by operating activities equals corresponding amount on reconciliation section - Operating loss on reconciliation agrees with Exhibit B - Depreciation expense on reconciliation agrees with Exhibit B

OK OK OK OK OK OK

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