Virginia Military Institute report on audit for the year ended June 30, 2007

VIRGINIA MILITARY INSTITUTEREPORT ON AUDITFOR THE YEAR ENDEDJUNE 30, 2007 AUDIT SUMMARY Our audit of Virginia Military Institute for the year ended June 30, 2007, found: • the financial statements are presented fairly, in accordance with generally accepted accounting principles; • internal control matters that we consider to be significant deficiencies; however we do not consider these matters to be material weaknesses; and • an instance of noncompliance required to be reported under Government Auditing Standards. -T A B L E O F C O N T E N T S- Pages AUDIT SUMMARY INTERNAL CONTROL AND COMPLIANCE FINDINGS AND RECOMMENDATIONS 1 MANAGEMENT’S DISCUSSION AND ANALYSIS 2-9 FINANCIAL STATEMENTS: 10 Staemnt ofNet Aset 1-2 Combined Statement of Financial Position – Component Units 13 Statement of Revenues, Expenses, and Changes in Net Assets 14 Combined Statement of Activities – Component Units 15 Staemnt ofCash Flow 16-7 Notes to Financial Statements 18-42 INDEPENDENT AUDITOR’S REPORT 43-45Report on Financial Statements 43-44 Report on Internal Control over Financial Reporting and on Compliance and Other Matters 44-45 INSTITUTE RESPONSE 46-47 OFFICIALS 48 INTERNAL CONTROL AND COMPLIANCE FINDINGS AND RECOMMENDATIONS ...