Review report, state of Georgia, North Georgia Technical Institute, Clarkesville, Georgia, year ended June 30, 1994

GA P,300 .Rl
N!ob
\lllt3-94
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

REVIEW REPORT
STATE OF GEORGIA NORTH GEORGIA TECHNICAL INSTITUTE
CLARKESVILLE, GEORGIA YEAR ENDED JUNE 30, 1994

NORTH GEORGIA TECHNICAL INSTITUTE - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

EXHIBITS

FINANCIAL STATEMENTS

A COMBINED BALANCE SHEET (STATUTORY BASIS)

ALL FUND TYPES AND ACCOUNT GROUPS

2

B STATEMENT OF CHANGES IN FUND BALANCES (STATUTORY BASIS)

ALL FUND TYPES

5

C STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

6

STATEMENTS OF FUNDS AVAILABLE AND EXPENDITURES

COMPARED TO BUDGET

BUDGET FUND

D

"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

10

E

"B" LOTTERY FOR EDUCATION

11

F STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN

FUND BALANCE

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

12

G NOTES TO THE FINANCIAL STATEMENTS

13

SUPPLEMENTARY INFORMATION

H COMBINING BALANCE SHEET (STATUTORY BASIS)

BUDGET FUND

24

I COMBINING STATEMENT OF CHANGES IN FUND BALANCE

(STATUTORY BASIS)

BUDGET FUND

25

J COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

26

K COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

FIDUCIARY FUND TYPE - AGENCY FUNDS

30

SCHEDULES

1 CASH AND CASH EQUIVALENTS

31

2 INVESTMENTS

32

3 SCHEDULE OF FEDERAL REVENUES

33

NORTH GEORGIA TECHNICAL INSTITUTE - TABLE OF CONTENTS -
SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION I FINANCIAL

CLAUDE L VICKERS
STATE AUDITOR (404) 656-2174
TAX RATIO (404) 656-0494

~.epartm.ent nf J\ubits
254 WASHINGTON STREET, S.W. ROOM 214
J\tlnuht, <ieorBin 30334-8400
September 16, 1994

FINANCIAL AUDITS (404) 656-2180
PROGRAM AUDITS (404) 656-2006

Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members of the State Board of Technical and Adult Education Members of the Local Board ofDirectors
and Honorable James H. Marlowe, President North Georgia Technical Institute
INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have reviewed the accompanying financial statements (Exhibits A through G) of North Georgia Technical Institute as of and for the year ended June 30, 1994, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. As described in Note 1, these financial statements were prepared on a prescribed basis of accounting that
demonstrates compliance with the budgetary statutes and regulations of the State of Georgia, which is a
comprehensive basis of accounting other than generally accepted accounting principles. All information included in these financial statements is the representation of the management of North Georgia Technical Institute.
A review consists principally of inquiries of Institute personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with the basis of accounting described in Note 1.
Our review was made for the purpose of expressing limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with the basis of accounting described in Note I. The accompanying supplementary information (Exhibits H through Kand Schedules 1 through 3) is presented only for supplementary analysis purposes. Such information has been
94ARL-4T

subjected to the inquiries and analytical procedures applied in the review of the financial statements, and we are not aware of any material modifications that should be made thereto.
Respectfully submitted,
~~~
Claude L. Vickers State Auditor
CLV:gp 94ARL-4T

FINANCIAL STATEMENTS - 1-

NORTH GEORGIA TECHNICAL INSTITUTE COMBINED BALANCE SHEET (STATUTORY BASIS)
ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30 1 1994

. ASSETS
Cash and Cash Equivalents (See Schedule)
Investments (See Schedule)
Accounts Receivable State Funds Federal Financial Assistance Student Notes Other
Fixed Assets Equipment
Amount to be Provided for Payment of Accrued Compensated Absences
Total Assets
LIABILITIES AND FUND EQUITY Liabilities
Accounts Payable Deferred Revenue
Tuition and Fees Funds Held for Others Compensated Absences
Total Liabilities Fund Equity
Investment in General Fixed Assets Fund Balances
Reserved Live Work Projects Endowment Corpus
Unreserved Designated Surplus Regular Undesignated Total Fund Equity
Total Liabilities and Fund Equity

GOVERNMENTAL

FIDUCIARY FUND TYPES

FUND TYPE NONEXPENDABLE

BUDGET

TRUST

AGENCY

$ 75,906.45 $

!92.21 $ 57,792.77

$ 35,0Q0.00

$

0.00

17,062.27

16,174.34

$ 33,236.61

$ 8,040.00 $ 8,040.00

$ 109,143.06 $ 35.192.21 $ 65,832.77

$ 90,494.32 7,957.25
$ 98 I 451. 57

$ 65,832.77 $ 65,832.77

$ 10,189.65 $ 35,000.00

501.84

192.21

$ 10,691.49 $ 35,192.21

$ 109,143.06 $ 35,192.21 $ 65.832.77

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement.
- 2-

EXHIBIT "A"

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

TOTALS
(Memorandum Only) JUNE 30, 1994 JUNE 30, 1993

$ 133,891.43 $ 128,829.59

$ 35,000.00 $ 35,000.00

$

0.00 $

6,683.41

17,062.27

26,806.77

8,040.00

8,685.00

16,174.34

27,882.85

$ 41,276.61 $ 70,058.03

$ 2,378,575.43

$ 2,378,575.43 $ 1,821,910.40

$ 378,756.75 $ 378,756.75 $ 347,679.42

$ 2,378,575.43 $ 378,756.75 $ 2,967,500.22 $ 2,403,477.44

$ 90,494.32 $ 94,240.61

$ 378,756.75

7,957.25 65,832.77 378,756.75

19,838.00 77,391.96 347,679.42

$ 378,756.75$ 543,041.09 $ 539,149.99

$ 2,378,575.43

$ 2,378,575.43 $ 1,821,910.40

10,189.65 35,000.00

6,987.39 35,000.00

$ 2,378,575.43

501. 84 192.21

190.35 239.31

$ 2,424,459.13 $ 1,864,327.45

$ 2,378,575.43 $ 378,756.75 $ 2,967,500.22 $ 2,403,477.44

- 3-

~\cuiJL
LU l,I

NORTH GEORGIA TECHNICAL INSTITUTE STATEMENT OF CHANGES IN FUND BALANCES (STATUTORY BASIS)
ALL FUND TYPES YEAR ENDED JUNE 30, 1994

EXHIBIT "B"

GOVERNMENTAL FUND TYPE
------------BUDGET

FIDUCIARY FUND TYPE
-------------
NONEXPENDABLE TRUST
-------------

TOTALS (Memorandum Only)
---------------------------YEAR ENDED
----------------------------
JUNE 30, 1994 JUNE 30, 1993
------------- -------------

FUND BALANCES - JULY 1
----------------------

Reserved Unreserved
Designated Surplus
Undesignated

$

6,987.39 $ 35,000.00 $ 41,987.39 $ 40,227.40

190.35

190.35

60,268.06

239.31

239.31

411.80

------------- ------------- ------------- -------------

$ 7,177.74
-------------

$ 35,239.31
-------------

$ 42,417.05
-------------

$

100,907.26
-------------

ADDITIONS
---------

Adjustments to Prior Year's

Accounts Payable

$

500.73

$

500.73 $

131. 74

Excess of Funds Available over Expenditures

Exhibit "C"

12,834.73

12,834.73

7,046.00

Excess of Revenues over (under) Expenditures

Exhibit "F"

$

-47.10

-47.10

-172.49

------------- ------------- ------------- -------------

$ -----1-3-,3--3-5-.4--6

$---------4--7-. -1-0

$ 13,288.36
-------------

$

7,005.25

-------------

DEDUCTIONS
----------

Unreserved Fund Balance (Surplus) Returned to Georgia Department of
Technical and Adult Education -
Administrative Central Office
Year Ended June 30, 1992 Year Ended June 30, 1993
Adjustments to Prior Year's
Accounts Receivable Reserved Fund Balance Carried Over from
Prior Year as Funds Available

$

0.00

190.35

2,643.97

6,987.39
-------------

$

0.00 $ 60,268.06

190.35

0.00

2,643.97

0.00

6,987.39

5,227.40

------------- -------------

FUND BALANCES - JUNE 30
-----------------------

$ 9,821.71
-------------

$

9,821.71 $ 65,495.46

------------- -------------

(To Exhibit "A")

$ 10,691.49 $ 35,192.21 $ 45,883.70 $ 42,417.05
============= :::============ ============= =============

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement.
- 5-

NORTH GEORGIA TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "C" Page 1

FUNDS AVAILABLE
REVENUES
STATE FUNDS Allotment from Georgia Department of Technical and Adult Education - Administrative Central Office
FEDERAL REVENUES (See Schedule)
OTHER REVENUES RETAINED Contracts Georgia Department of Human Resources PEACH Project Georgia Institute of Technology Satellite Technology Program Donations Fees Application Registration/Continuing Education Testing Other Reimbursements From Various Sources Sales and Services (Net) Tuition Other Sources
Total Other Revenues Retained
Total Revenues
CARRY-OVER FROM PRIOR YEAR
Transfer from Reserved Fund Balance Federal Financial Assistance Live Work Projects
Total Carry-Over from Prior Year
Total Funds Available

TOTALS
------------------------- --
YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$4,852,156.38$ 4,355,226.77 $ 788,975.93 $ 733,544.19

$ 19,248.41 $ 14,906.74

13,021.96 0.00

9,000.00 350.00

13,480.00
158,318.69 25,605.00 22,888.83

12,340.20
263,360.02 11,493.04
13,562.04

53,166.00 283,982.14 423,833.97
2,022.56

1,842.49 277,909.49
372,882.54
200.00

$1,015,567.56$ 977,846.56

$ 6,656,699.87 $ 6,066,617.52

$

0.00 $

0.11

6,987.39

5,227.29

------------- -------------

$

6,987.39

-------------

$ ------5-,2--2-7-.4--0

$6,663,687.26$ 6,071,844.92

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement.
- 6-

NORTH GEORGIA TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND
YEAR ENDED JUNE 30, 1994

EXHIBIT "C" Page 2

EXPENDITURES
PERSONAL SERVICES-INSTITUTIONS
Salaries and Wages Employer's Contributions for:
F.I.C.A. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance . Workers' Compensation Insurance Assessments by Merit System Drug Testing
OPERATING EXPENSES-INSTITUTIONS
Other Costs Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Rents (Other than Real Estate) Insurance and Bonding Other Operating Expenses Publications and Printing
Travel Motor Vehicle Purchases Equipment
Equipment Purchases Lease/Purchase of Equipment Computer Charges Other Costs
Supplies and Materials Repairs and Maintenance Software Equipment Equipment Purchases Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Contracts

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$ 3,491,669.62 $ 3,419,370.56

187,046.21
468,453.52 378,175.56
13,716.00 2,677.00
74,230.00 4,561.84
0.00
-------------

191,058.50
447,074.87 372,184.82
10,545.00 967.00
53,928.81 4,853.24
118.50
-------------

$ 4,620,529.75 $ 4,500,101.30

$ 26,126.34 $ 17,688.44

412,198.71

436,669.80

139,430.62

70,552.10

350,800.89

341,128.63

5,846.63

6,121.83

7,870.00

10,070.00

88,297.71

126,449.13

29,028.00

19,133.85

36,195.55

25,657.06

16,250.00

0.00

138,487.81 0.00

104,672.62 6,713.84

15,150.63 15,317.78 16,317.26

0.00 0.00 18,391.32

133,124.03 37,044.06

17,072.68 34,706.05

21,149.72

17,515.18

315.00

11,271.00

------------- -------------

$1,488,950.74 $1,263,813.53
------------- -------------

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement.
- 7-

NORTH GEORGIA TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND
YEAR ENDED JUNE 30, 1994

EXHIBIT "C" Page 3

EXPENDITURES
QUICK START PROGRAM
Personal Services Salaries and Wages Employer's Contributions for: F. I .C.A. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
Other Costs Supplies and Materials Repairs and Maintenance Utilities Rents (Other than Real Estate) Other Operating Expenses
Travel Equipment
Equipment Purchases Computer Charges
Software Telecommunications Per Diem, Fees and Contracts
Per Diem and Fees
ADULT LITERACY GRANTS
Personal Services Salaries and Wages Employer's Contributions for: F.I.C.A. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
Other Costs Supplies and Materials Repairs and Maintenance Other Operating Expenses Publications and Printing
Travel Equipment
Equipment Purchases

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$ 16,244.64 $ 19,168.78

241. 57 1,972.80
2,088.00 127.00 27.00 750.00

259.56 2,163.88
2,524.22 95.00 0.00 544.73

522.19
1,843.04 3,745.76
0.00 3,750.00 2,769.18

2,055.16
1,907.23 3,822.86
12.00 9,600.00 2,816.21

391.94

535.00

0.00 649.26

505.95 632.51

140.00

1,823.68

------------- -------------

$ -----3-5-,2--6-2-.3--8

$ 48,466.77
-------------

$ 249,523.64 $ 177,599.37

3,573.55 6,585.60 6,970.56
254.00 54.00
1,500.00

2,535.11 6,386.52 6,753.84
190.00 0.00
1,089.46

33,397.50 9,951.77
0.00 794.50
10,848.56

22,146.84 0.00
3,457.58 171. 00
6,759.03

3,444.91

3,506.57

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement.
- 8-

NORTH GEORGIA TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND
YEAR ENDED JUNE 30, 1994

EXHIBIT "C" Page 4

EXPENDITURES
ADULT LITERACY GRANTS
Computer Charges Software Equipment Equipment Purchases
Telecommunications Per Diem, Fees and Contracts
Per Diem and Fees Contracts
JOB TRAINING PARTNERSHIP ACT
Persona 1 Services Salaries and Wages Employer's Contributions for: F.I.C.A. Retirement Health Insurance
EQUIPMENT - STATE SCHOOLS
Equipment Equipment Purchases
Total Expenditures Excess of Funds Available over Expenditures

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$ 1,276.75 $ 4,090.50

4,721.64 2,348.79

10,916.00 0.00

250.00

0.00

0.00

6,815.50

------------- -------------

$ 335,495.77 $ 252,417.32
------------- -------------

$ 8,076.36 $

0.00

108.88

0.00

908.05

0.00

1,009.60

0.00

------------- -------------

$ 10,102.89 $

0.00

------------- -------------

$ 160,511.00 $

0.00

------------- -------------

$ 6,650,852.53 $ 6,064,798.92

12,834.73

7,046.00

------------- -------------

$ 6,663,687.26 $ 6,071,844.92

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement.
- 9-

NORTH GEORGIA TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION YEAR ENDED JUNE 30, 1994

EXHIBIT 110"

FUNDS AVAILABLE REVENUES
State Funds Federal Revenues Other Revenues Retained
CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 4,691,646.00 $ 4,691,645.38 $

-0.62

752,946.00

788,975.93

36,029.93

1,501,683.00 1,015,567.56 -486,115.44
------------- r------------ -------------

$ 6,946,275.00 $ 6,496,188.87 $ -450,086.13

0.00

6,987.39

6,987.39

$6,946,275.00$ 6,503,176.26$ -443,098.74

EXPENDITURES
Personal Services-Institutions Operating Expenses-Institutions Quick Start Program Adult Literacy Grants Job Training Partnership Act

$ 4,721,743.00 $ 4,620,529.75 $ 101,213.25

1,806,945.00 1,488,950.74 317,994.26

35,263.00

35,262.38

0.62

355,829.00 335,495.77

20,333.23

26,495.00

10,102.89

16,392.11

------------- ------------- -------------

$ 6,946,275.00 $ 6,490,341.53 $ 455,933.47

Excess of Funds Availabl~ over Expenditures

$ 12,834.73 $ 12,834.73

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement.
- 10 -

NORTH GEORGIA TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"B" LOTTERY FOR EDUCATION YEAR ENDED JUNE 30, 1994

EXHIBIT "E"

FUNDS AVAILABLE REVENUES
State Funds
EXPENDITURES Equipment - State Schools
Excess of Funds Available over Expenditures

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 160,511.00$ 160,511.00 $

0.00

$ 160,511.00$ 160,511.00$

0.00

$

0.00 $

0.00

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement.
- 11 -

NORTH GEORGIA TECHNICAL INSTITUTE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30. 1994

EXHIBiT "F"

REVENUES Interest Earned
EXPENDITURES Scholarships
Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1, 1993
FUND BALANCE JUNE 30, 1994

LENORA M. SARLI NG SCHOLARSHIP FUND
$ 1,517.90

$ 1,565.00

$

-47.10

35,239.31

$ 35,192.21

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement.
- 12 -

NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "G"

NOTE 1: SUM11ARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY North Georgia Technical Institute is one of twenty-eight (28) State supported member institutes of postsecondary education in Georgia which comprise the Georgia Department of Technical and Adult Education, an organizational unit of the State of Georgia. The accompanying financial statements reflect the operations ofNorth Georgia Technical Institute as a separate reporting entity.
The Institute's Local Board ofDirectors is composed of nine (9) members serving staggered three-year terms who are appointed by the State Board of Technical and Adult Education. Appropriation of State funds is made to the Georgia Department ofTechnical and Adult Education by the General Assembly of Georgia. The Department's Administrative Central Office determines the amount of State funds to be received by North Georgia Technical Institute. The Institute does not have authority to retain unexpended State funds (surplus) for any given fiscal year. Accordingly, North Georgia Technical Institute is considered an organizational unit ofthe Georgia Department of Technical and Adult Education for financial reporting purposes because of the significance of its legal, operational, and financial relationships as defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards.
FUND ACCOUNTING North Georgia Technical Institute uses funds and account groups to report on its financial position and the results of its operations determined in conformity with the accounting practices prescribed or permitted by statutes and regulations ofthe State of Georgia. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group, on the other hand, is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available financial resources.
Funds and account groups presented in the accompanying financial statements are as follows:
GOVERNMENTAL FUND TYPE
BUDGET FUND - The fund used to account for activities and functions as set forth in the Amended Appropriations Act of 1993-1994. This fund also includes operations from various institutional services provided to students, faculty, and/or staff which are funded by fees charged to participants that are directly related to, but not necessarily equal to, the cost of service. The Budget Fund is similar in nature to a General Fund as identified in generally accepted accounting principles in that the Budget Fund is used to account for all activities except those required to be accounted for in some other fund.
FIDUCIARY FUND TYPES
NONEXPENDABLE TRUST FUND - The fund used to account for assets, revenues, and expenses utilized in accordance with the provisions ofthe trust established by individual agreement, statute, or administrative action. Nonexpendable trust funds are used when only the revenues earned on the principal (corpus) of the
- 13 -

NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "Gil ...

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
FIDUCIARY FUND TYPES
NONEXPENDABLETRUSTFUND trust may be expended for the purposes designated in the trust agreement and the principal of the trust agreement must remain intact.
AGENCY FUNDS - The funds used to account for assets held for use by other funds, governments, or individuals.
ACCOUNT GROUPS
GENERAL FIXED ASSETS - The account group used to account for fixed assets used in governmental fund type operations. Fixed assets purchased are recorded at historical cost. Donated fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded values. No depreciation has been provided on general fixed assets.
GENERAL LONG-TERM DEBT - The account group used to report the noncurrent portions ofcertain governmental long-term liabilities, such as claims, judgments, and compensated absences, which will be paid from future resources.
BASIS OF ACCOUNTING MEASUREMENT FOCUS
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. Governmental funds should be accounted for using the current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues) and decreases (i.e.,expenditures) in net current assets. Nonexpendable trust funds, on the other hand, should be accounted for on a flow of economic resources measurement focus, in which all assets and all liabilities are included on the balance sheet. However, in accordance with accounting practices prescribed or permitted by the State of Georgia, the nonexpendable trust funds utilize the current financial resources measurement focus.
GOVERNMENTAL FUND TYPE BUDGET FUND
Except as disclosed in the following paragraphs, units of government of the State of Georgia record their Budget Fund revenues and expenditures in accordance with the modified accrual basis of accounting. Under the modified accrual basis ofaccounting, revenues are recognized when susceptible to accrual (i.e.,when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Revenues that are accrued include primarily State funds, Federal grants and entitlements, and certain amounts earned under operating agreements with other parties. Further, the modified
- 14 -

NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPE BUDGET FUND
accrual basis of accounting calls for expenditures, other than accrued interest of general long-term debt, to be recorded when the related fund liability is incurred.
Contractual obligations for services which have not been performed and for goods which have not been delivered at the end of the fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. This accounting practice causes expenditure-driven grant revenues to be accrued based in part on the unexecuted portion of contracts for goods and services. The recognition of encumbrances as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations ofthe State ofGeorgia, but is not consistent with generally accepted accounting principles, which provide for the recording of encumbrances as a reservation of fund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles.
Prior period adjustments are reported as additions to and deductions from fund balance of the Budget Fund in the accompanying financial statements. This presentation is in accordance with accounting practices prescribed or permitted by statutes and regulations ofthe State of Georgia, but differs from generally accepted accounting principles in that immaterial adjustments should be reported as current period revenues and expenditures.
FIDUCIARY FUND TYPES NONEXPENDABLETRUSTFUND
The Nonexpendable Trust Fund is maintained in accordance with the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Revenues that are accrued include primarily interest income and certain amounts earned under terms ofthe trust agreements. Expenditures are recorded when the related fund liability is incurred.
A Statement ofCash Flows is not presented for the Nonexpendable Trust Fund in the accompanying financial statements as required by generally accepted accounting principles.
AGENCY FUNDS Agency Funds are custodial in nature in that assets are equally offset by liabilities to other funds, governmental units, or individuals. The modified accrual basis of accounting is utilized for recognizing assets and liabilities.
BUDGET The Georgia Department of Technical and Adult Education - Administrative Central Office receives State appropriated funds and certain Federal funds for the various technical institutes throughout the State. The
- 15 -

NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUDGET appropriated budget is adopted at the departmental level and represents appropriations provided by the Amended Appropriations Act of 1993-1994. The budget allocation and disbursement of these funds is made to the various technical institutes by the Administrative Central Office. In addition, the technical institutes receive certain Federal funds and other funds directly and include these funds in the budget filed with the Administrative Central Office.
CASH AND CASH EQUIVALENTS Cash and Cash Equivalents include currency on hand and demand deposits with banks and other authorized financial institutions.
INVESTMENTS Investments are defined as those financial instruments with terms of three months or more from the date of purchase and certain other securities held for the production of revenue. Investments are stated at cost.
ACCOUNTS RECEIVABLE Accounts receivable consist ofreimbursements due from Federal, State, local and private grants and contracts, and other receivables disclosed from information available.
INVENTORIES No inventories ofsupplies are reported in the current financial statements. Expendable supplies are recorded as expenditures at the time of purchase.
RESERVED FUND BALANCE Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. The following is a brief description of the reserves reflected in the accompanying financial statements:
LIVE WORK PROJECTS The accumulated balance of unexpended funds derived from student live work projects. This amount is restricted to expenditures for live work projects in subsequent fiscal years.
ENDOWMENT CORPUS The principal (corpus) of the Lenora M. Sarling Scholarship Fund. This amount must remain intact per provisions of the trust agreement.
COMPENSATED ABSENCES Compensated absences represent obligations of the Institute relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulated leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the Budget Fund for the current portion ofthis obligation as this amount will not be liquidated with
- 16 -

NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
COMPENSATED ABSENCES expendable available financial resources. Funds are provided in the allotment of State funds each year to the Institute to cover the cost of annual leave paid to terminated employees.
The liability for compensated absences at year-end is reported in the General Long-Term Debt Account Group for governmental funds.
MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the Combined Balance Sheet (Statutory Basis) are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
COMPARATIVE DATA Comparative total data for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the Institute's financial position and operations. However, comparative data have not been presented in all statements because their inclusion would make certain statements unduly complex and difficult to understand.
Certain reclassifications have been made to the comparative data in order to provide comparability with the current year classifications.
NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belonging to the State ofGeorgia cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral any one or more ofthe following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59:
(1) Bonds, bills, notes, certificates of indebtedness, or other direct obligations of the United States or of the State of Georgia.
(2) Bonds, bills, notes, certificates ofindebtedness, or other obligations of the counties or municipalities of the State of Georgia.
(3) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose.
(4) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia.
- 17 -

NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "G"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES (5) Bonds, bills, notes, certificates ofindebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

(6) Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation.

As authorized in the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies which allow agencies of the State of Georgia (which include technical institutes) the option of exempting demand deposits from the collateral requirements.

COLLATERALIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, cash deposits consists of all bank balances which include demand deposits and/or interest bearing accounts. These bank balances are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk:

Category 1 - Amounts covered by depository insurance or collateralized with securities (at market value) held by the Institute or by its agent in the Institute's name.

Category 2 - Amounts collateralized with securities (at market value) held by the financial institution's trust department or agent in the Institute's name.

Category 3 - Amounts collateralized with securities (at market value) held by the financial institution or by its trust department or agent, but not in the Institute's name, and amounts uncollateralized.

Carrying Amount

Bank Balances

Risk Categories

2

3

Cash Deposits

$ 131 891 43 $ 385 41004 $ 256 32165 $=====0"='00.,,,, $ 129088 39

CATEGORIZATION OF INVESTMENTS For purposes of analysis of custodial credit risk, investments consist of U. S. government securities. Investments are stated at cost and are summarized and classified as to custodial credit risk within the three categories described below:

Category 1 - Insured or registered, or securities held by the Institute or its agent in the Institute's name.

- 18 -

NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT"G"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

CATEGORIZATION OF INVESTMENTS Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Institute's name.

Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Institute's name.

Type of Investment

Risk Categories

2

3

Carrying Amount

Market Value

U. S. Government Securities $ 35,000 00 $

0 00 $ =====0,.,,,.0-0 $ 35 000.00 $ 32 504 70

NOTE 3: CHANGES IN GENERAL FIXED ASSETS

In accordance with the statutory definition ofmoveable personal property (Official Code of Georgia Annotated Section 50-16-161 ), only those items with an acquisition cost of $1,000.00 or greater are reflected in the General Fixed Assets Account Group.

The following is a summary ofchanges of equipment for the General Fixed Assets Account Group during the fiscal year:

Balance July 1, 1993

$ 1,821,910.40

Additions Deductions

570,867.27 14,202.24

Balance June 30, 1994

$ 2,378 575.43

NOTE 4: GENERAL LONG-TERM DEBT

CHANGES IN GENERAL LONG-TERM DEBT During the year ended June 30, 1994, the following changes occurred in the compensated absences liability reported in the General Long-Term Debt Account Group:

- 19 -

NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXlflBIT "G"

NOTE 4: GENERAL LONG-TERM DEBT

CHANGES IN GENERAL LONG-TERM DEBT

Balance July 1, 1993

$ 347,679.42

Additions Annual Leave Earned and Utilized (Net) Salaries and Wages Salary-Related Fringe Benefits (*)

7,883.55 23,193.78

Balance June 30, 1994

$ 378,756.75

(*) Includes salary-related fringe benefits applicable to compensated absences at July 1, 1993.

NOTE 5: DEFERRED COMPENSATION PLAN

The State of Georgia offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to employees of the State of Georgia and county health departments, permits such employees to defer a portion of their salary until future years. Participation in the plan is optional. Participants choose the option or options in which they wish to participate. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property or rights of the State of Georgia subject only to the claims of the State's general creditors. Participant's rights under the plan are equal to those of a general creditor of the State of Georgia in an amount equal to the fair market value of the deferred account of each participant. Financial information relative to the plan is presented in the financial report of the State Personnel Board Merit System of Personnel Administration for the year ended June 30, 1994.

NOTE 6: RETIREMENT PLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA TEACHERS RETIREMENT SYSTEM OF GEORGIA Substantially all employees are members of the Employees' Retirement System of Georgia or the Teachers Retirement System of Georgia. The Employees' Retirement System of Georgia is a single-employer, defined benefit pension plan, while the Teachers Retirement System of Georgia is a cost-sharing multiple-employer public employee retirement sys_tem.

These Retirement Systems were established by the General Assembly of Georgia for the purpose of providing retirement allowances for employees of the State of Georgia. Both Retirement Systems are funded through a combination of employee and employer contributions. Employees are required to contribute a graduated percentage ofannual compensation. Employer contributions are for a specified percentage of active member payroll determined annually by an actuarial valuation. During the year ended June 30, 1994, the Institute

- 20 -

NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT"G"

NOTE 6: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA TEACHERS RETIREMENT SYSTEM OF GEORGIA contributed $391,740.13 to the Employees' Retirement System of Georgia and $86,179.84 to the Teachers Retirement System of Georgia. Participation in either Retirement System is not segregated by employee groups of individual governmental units and the Institute has no further liability under either Retirement System other than future employer contributions as established for each fiscal year. Information relative to each plan's description, funding status, and historical trends is presented in the financial reports of the Employees' Retirement System of Georgia and the Teachers Retirement System of Georgia for the year ended June 30, 1994.
GEORGIA DEFINED CONTRIBUTION PLAN The State of Georgia provides retirement coverage for temporary, seasonal, and part-time employees who are not eligible for membership in the Retirement Systems referred to above through a single-employer defined contribution plan. The Georgia Defined Contribution Plan was established by the General Assembly of Georgia and is administered by the Board of Trustees of the Employees' Retirement System of Georgia. Covered employees are required to contribute 7.5% of their gross salary, with no matching contribution by the employer. A member who terminates employment may apply for a refund of contributions and interest. Benefits are based solely on the amount contributed by the employee plus investment earnings. Upon discretion ofthe Board ofTrustees, members who leave employment with less than $3,500.00 credited to their account may be required to make a lump-sum withdrawal. Members are eligible to retire at the age of 65 with the option ofreceiving a periodic payment based on mortality tables and interest accumulation as adopted by the Board of Trustees of the Employees' Retirement System of Georgia. Information relative to the plan description and funding status is presented in the financial report of the Employees' Retirement System of Georgia for the year ended June 30, 1994.
NOTE 7: LEAVE POLICIES
Employees earn annual leave ranging from one and one-quarter days to one and three-quarter days each month depending upon the employees' length of continuous State service with a maximum accumulation of forty-five days. Employees are paid for unused accumulated annual leave upon retirement or termination of employment. See Note 1 - Compensated Absences
Employees earn one and one-quarter days of sick leave each month with a maximum accumulation of ninety days. Unused accumulated sick leave does not vest with the employee and is forfeited upon retirement or termination of employment.
Certain employees who retire with one hundred and twenty days or more of forfeited annual and sick leave are entitled to additional service credit in the Employees' Retirement System of Georgia.

- 21 -

NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "G"

NOTE 8: NONMONETARY TRANSACTIONS
The Administrative Central Office of the Georgia Department of Technical and Adult Education used lottery proceeds to purchase $411,214.90 of equipment for North Georgia Technical Institute during the fiscal year ended June 30, 1994. Those items with an acquisition cost of $1,000.00 or greater will be reflected as received in the General Fixed Assets Account Group in the accompanying financial statements. However, revenues and expenditures for these lottery proceeds are not reflected in these financial statements.
The Georgia State Financing and Investment Commission (GSFIC), a unit of State government, is responsible for the issuance of state debt and for the investment and accounting for proceeds derived from the issuance of state debt. In addition, GSFIC is authorized to acquire and construct projects for the benefit of units of State government or to contract with units of State government for the construction or acquisition of capital outlay projects. During the fiscal year ended June 30, 1994, the Georgia State Financing and Investment Commission paid $249,664.80 to various vendors for approved projects related to North Georgia Technical Institute.
NOTE 9: BONDING INFORMATION
The President and all employees ofNorth Georgia Technical Institute are bonded under a Public Employees Blanket Bond written by the Employers Insurance of Wausau, their Bond No.1450-00-110723, on which the premium has been paid to October 1, 1994. Under this agreement, the public employee dishonesty coverage insures North Georgia Technical Institute to a maximum of $1,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. The faithful performance of duty coverage insures the Institute to a maximum of $100,000.00 against loss sustained from failure ofits employees to perform faithfully their duties or to account properly for all monies and property received by virtue of their position or employment.
All employees ofNorth Georgia Technical Institute are also bonded under a Commercial Crime Policy written by the United States Fire Insurance Company, their Policy No. 626 011675 2, on which the premium has been paid to October 1, 1994. Under this additional public employee dishonesty coverage, the policy insures the Institute to a maximum of $4,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees.

- 22 -

SUPPLEMENTARY INFORMATION - 23 -

NORTH GEORGIA TECHNICAL INSTITUTE COMBINING BALANCE SHEET (STATUTORY BASIS)
BUDGET FUND JUNE 30, 1994

EXHIBIT "H"

ASSETS
Cash and Cash Equivalents
Accounts Receivable Federal Financial Assistance Other
Total Assets
LIABILITIES AND FUND EQUITY
---------------------------
Liabilities Accounts Payable Deferred Revenue Tuition and Fees
Total Liabi l iti es
Fund Equity Fund Balance Reserved Live Work Projects Unreserved Designated Surplus Regular Lottery for Education
Total Fund Equity
Total Li abilities and Fund Equity

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION
-------------

"B" LOTTERY FOR
EDUCATION
-----------

TOTAL

$-----6-7-,-7-8-9-.-6-6

$ 8,116.79
-------------

$ 75,906.45
-------------

$ 17,062.27 16,174.34
-------------
$ 33,236.61
-------------

$ 17,062.27 16,174.34
-------------
$ 33,236.61
-------------

$ 101,025.27 $ 8,116.79 $ 109,143.06
============= ============= =============

$ 82,377.53 $ 8,116.79 $ 90,494.32

7,957.25

7,957.25

------------- ------------- -------------

$ 90,334.78 $ 8,116.79 $ 98,451.57
------------- ------------- -------------

$ 10,189.65

$ 10,189.65

501.84

501.84

$

0.00

0.00

------------- ------------- -------------

$ 10,691.49 $

0.00 $ 10,691.49

------------- ------------- -------------

$ 101,026.27 $

8,116.79 $ 109,143.06

============= ============= =============

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 24 -

NORTH GEORGIA TECHNICAL INSTITUTE COMBINING STATEMENT OF CHANGES IN FUND BALANCE (STATUTORY BASIS)
BUDGET FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "I"

FUND BALANCE - JULY 1
---------------------
Reserved Unreserved
Designated Surplus
ADDITIONS
---------
Adjustments to Prior Year's Accounts Payable
Excess of Funds Available over Expenditures Exhibit "J"
DEDUCTIONS
----------
Unreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and
Adult Education - Administrative Central Office
Year Ended June 30, 1993 Adjustments to Prior Year's
Accounts Receivable Reserved Fund Balance Carried Over from
Prior Year as Funds Available
FUND BALANCE - JUNE 30
----------------------
(To Exhibit "H")

"A"
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION
-------------

"8" LOTTERY FOR
EDUCATION
-----------

TOTAL
-------------

$ 6,987.39

$ 6,987.39

190.35 $

0.00

190.35

------------- ------------- -------------

$ 7,177.74 $

0.00 $ 7,177.74

------------- ------------- -------------

$

500.73

$

500.73

12,834.73 $

0.00

12,834.73

------------- ------------- -------------

$ 13,335.46 $

0.00 $ 13,335.46

------------- ------------- -------------

$

190.35 $

0.00 $

190.35

2,643.97

2,643.97

6,987.39

6,987.39

------------- ------------- -------------

$ 9,821.71 $

0.00 $ 9,821.71

------------- ------------- -------------

$ 10,691.49 $

0.00 $ 10,691.49

============= ============= =============

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 25 -

NORTH GEORGIA TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "J" Page 1

FUNDS AVAILABLE
REVENUES
STATE FUNDS Allotment from Georgia Department of Technical and Adult Education - Administrative Central Office
FEDERAL REVENUES
OTHER REVENUES RETAINED Contracts Georgia Department of Human Resources PEACH Project Georgia Institute of Technology Satellite Technology Program Fees Application Registration/Continuing Education Testing Other Reimbursements From Various Sources Sales and Services (Net) Tuition Other Sources
Total Other Revenues Retained
Total Revenues
CARRY-OVER FROM PRIOR YEAR
Transfer from Reserved Fund Balance Live Work Projects

"A"
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

"B"
LOTTERY FOR EDUCATION

TOTAL

$4,691,645.38$ 160,511.00$ 4,852,156.38

$ 788,975.93

$ 788,975.93

$ 19,248.41

$ 19,248.41

13,021.96

13,021.96

13,480.00 158,318.69 25,605.00
22,888.83

13,480.00 158,318.69 25,605.00
22,888.83

53,166.00 283,982.14 423,833.97
2,022.56

53,166.00 283,982.14 423,833.97
2,022.56

$ 1,015,567.56

$ 1,015,567.56

$ 6,496,188.87 $ 160,511.00 $ 6,656,699.87

6,987.39 - - - - -

6,987.39

Total Funds Available

$6,503,176.26$ 160,511.00 $ 6.663.687.26

EXPENDITURES

PERSONAL SERVICES-INSTITUTIONS

Salaries and Wages Employer's Contributions for:
F.I.C.A. Retirement Health Insurance

$ 3,491,669.62
187,046.21 468,453.52 378,175.56

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.

- 26 -

$ 3,491,669.62
187,046.21 468,453.52 378,175.56

NORTH GEORGIA TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "J" Page 2

EXPENDITURES
PERSONAL SERVICES-INSTITUTIONS
Employer's Contributions for: Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance Merit System Assessments
OPERATING EXPENSES-INSTITUTIONS
Other Costs Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Rents (Other than Real Estate) Insurance and Bonding Other Operating Expenses Publications and Printing
Travel Motor Vehicle Purchases Equipment
Equipment Purchases Computer Charges
Other Costs Supplies and Materials Repairs and Maintenance
Software Equipment
Equipment Purchases Telecommunications Per Diem, Fees and Contracts
Per Diem and Fees Contracts
QUICK START PROGRAM
Personal Services Salaries and Wages Employer's Contributions for: F.I.C.A. Retirement Health Insurance Liability Insurance

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR
EDUCATION

TOTAL

$ 13,716.00 2,677.00
74,230.00 4 561.84
$ 4,620,529.75
$ 26,126.34 412,198.71 139,430.62 350,800.89 5,846.63 7,870.00 88,297.71 29,028.00 36,195.55 16,250.00
138,487.81
15,150.63 15,317.78 16,317.26
133,124.03 37,044.06
21,149.72 315.00
$ 1,488,950.74
$ 16,244.64
241. 57 1,972.80 2,088.00
127.00

$ 13,716.00 2,677.00 74,230.00 4,561.84
$ 4,620,529.75
$ 26,126.34 412,198.71 139,430.62 350,800.89 5,846.63 7,870.00 88,297.71 29,028.00 36,195.55 16,250.00
138,487.81
15,150.63 15,317.78 16,317.26
133,124.03 37,044.06
21,149.72 315.00
$ 1,488,950.74
$ 16,244.64
241.57 1,972.80 2,088.00
127.00

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 27 -

NORTH GEORGIA TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "J" Page 3

EXPENDITURES
QUICK START PROGRAM
Personal Services Employer's Contributions for: Unemployment Compensation Insurance Workers' Compensation Insurance
Other Costs Supplies and Materials Repairs and Maintenance Utilities Other Operating Expenses
Travel Equipment
Equipment Purchases Telecommunications Per Diem, Fees and Contracts
Per Diem and Fees
ADULT LITERACY GRANTS
Personal Services Salaries and Wages Employer's Contributions for: F.I.C.A. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
Other Costs Supplies and Materials Other Operating Expenses Publications and Printing
Travel Equipment
Equipment Purchases Computer Charges
Software Equipment
Equipment Purchases Telecommunications Per Diem, Fees and Contracts
Per Diem and Fees

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

nan
LOTTERY FOR EDUCATION

TOTAL

$

27.00

750.00

522.19 1,843.04 3,745.76 3,750.00 2,769.18

391. 94 649.26

140.00

$ 35,262.38

$ 249,523.64
3,573.55 6,585.60 6,970.56
254.00 54.00 1,500.00
33,397.50 9,951.77 794.50 10,848.56
3,444.91
1,276.75
4,721.64 2,348.79
250.00
$ 335,495.77

$

27.00

750.00

522.19 1,843.04 3,745.76 3,750.00 2,769.18

391. 94 649.26

140.00

$ 35,262.38

$ 249,523.64
3,573.55 6,585.60 6,970.56
254.00 54.00
1,500.00
33,397.50 9,951.77 794.50 10,848.56
3,444.91
1,276.75
4,721.64 2,348.79
250.00
$ 335,495.77

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 28 -

NORTH GEORGIA TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "J" Page 4

EXPENDITURES
JOB TRAINING PARTNERSHIP ACT
Personal Services Salaries and Wages Employer's Contributions for: F.I.C.A. Retirement Health Insurance
EQUIPMENT - STATE SCHOOLS
Equipment Equipment Purchases
Tota1 Expenditures
Excess of Funds Available over Expenditures

"A"
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

"8" LOTTERY FOR
EDUCATION

TOTAL

$ 8,076.36
108.88 908.05 1,009.60
$ 10,102.89

$ 8,076.36
108.88 908.05 1,009.60
$ 10,102.89

$ 160,511.00 $ 160 I 511. 00

$ 6,490,341.53 $ 160,511.00 $ 6,650,852.53

12,834.73

0.00

12,834.73

$ 6,503,176.26 $ 160,511.00$ 6,663,687.26

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 29 -

NORTH GEORGIA TECHNICAL INSTITUTE COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIQUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30. 1994

EXHIBIT "K"

FUND
Athens Regional Medical Center MLT Scholarship Fund
Berry, R. Roger, Scholarship Fund Clary, William C., Scholarship Fund Georgia Electrification Council
Educational Loan Fund HOPE Program Knittle Scholarship Fund Mount Vernon Mills Scholarship Fund Pell Grant Program Private Scholarship Fund Supplemental Educational Opportunity
Grants Student Activities Fund

ASSETS/ LIABILITIES JULY l, 1993

ADDITIONS

DELETIONS

ASSETS/ LIABILITIES JUNE 30, 1994

$

0.00 $

1,100.00$

1,100.00 $

0.00

300.00

300.00

105.13

276.97

380.00

2.10

11,337.11 0.00 0.00
200.00 0.00
176.92

108.34 171,606.00
1,000.00 200.00
509,133.00 47.98

4.71 171,606.00
1,000.00 300.00
509,133.00 150.00

11,440.74 0.00 0.00
100.00 0.00 74.90

0.00 65,272.80

30,000.00 87,110.84

30,000.00 98,468.61

0.00 53,915.03

$ 77,391.96$ 800,583.13 $ 812,142.32 $ 65,832.77
============= ============= ============= =============

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 30 -

NORTH GEORGIA TECHNICAL INSTITUTE CASH AND CASH EQUIVALENTS JUNE 30. 1994

SCHEDULE "l"

NONINTEREST BEARING ACCOUNTS
Habersham Bank, Cornelia, Georgia
INTEREST BEARING ACCOUNTS
Community Bank and Trust, Cornelia, Georgia
Money Market Account Habersham Bank, Cornelia, Georgia
Money Market Accounts
OTHER
Petty Cash

$ 75,906.45

$

3,400.74

52,584.24

55,984.98

2,000.00 $ 133,891.43

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 31 -

NORTH GEORGIA TECHNICAL INSTITUTE INVESTMENTS
JUNE 30, 1994

SCHEDULE "2"

NONEXPENDABLE TRUST FUND
------------------------
Sarling, Lenora M., Scholarship Fund U. S. Treasury Securities Holdings Account No. 2000-007-9925 912827J78 912827M25

PURCHASE DATE
-------------

INTEREST RATE
-------------

MATURITY DATE
-------------

AMOUNT

May 17, 1993 August 31, 1993

6.25% 4.75%

February 15, 2003 $ 15,000.00

August 31, 1998

20,000.00

-------------

$ 35,000.00

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Infonnation.
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NORTH GEORGIA TECHNICAL INSTITUTE SCHEDULE OF FEDERAL REVENUES YEAR ENDED JUNE 30, 1994

BUDGET FUND
Appalachian Regional Commission Appalachian Regional Development Direct
Education, U. S. Department of Adult Education - State Administered Basic Grant Program Through Georgia Department of Technical and Adult Education - Administrative Central Office
College Work-Study Program Direct
Vocational Education - Basic Grants to States Through Georgia Department of Technical and Adult Education - Administrative Central Office
Rehabilitation Services - Basic Support Through Georgia Department of Human Resources
Vocational Education - Community Based Organizations Through Georgia Department of Technical and Adult Education - Administ~ative Central Office
Tech-Prep Education Through Franklin County Board of Education Through Habersham County Board of Education Through Towns County Board of Education
Energy, U. S. Department of State Energy Conservation Stripper Well Oil Violation Funds Through Georgia Department of Technical and Adult Education - Administrative Central Office
Health and Human Services, U. S. Department of Job Opportunities and Basic Skills Training Through Georgia Department of Human Resources Various Offices of Department of Family and Children Services
State Legalization Impact Assistance Grants Through Georgia Department of Technical and Adult Education - Administrative Central Office
Labor, U. S. Department of Job Training Partnership Act Through Georgia Department of Technical and Adult Education - Administrative Central Office Through Georgia Mountains Regional Development Center
Veterans Affairs, U. S. Department of Vocational Rehabilitation for Disabled Veterans Direct

CFDA NUMBER
23.001
84.002 84.033 84.048 84.126 84. 17 4 84.243 84.243 84.243
81. 041
93.561 93.565
17.250 17.250 64. 116

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
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SCHEDULE "3"
AMOUNT
$ 19,200.00
151,968.53 80,268.00 364,257.09 31,405.39
9,918.76 2,000.00 30,000.00 2,000.00
18,259.27
23,006.00 16,500.00
10,102.89 25,868.00
4,222.00
$ 788,975.93
=============

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

NORTH GEORGIA TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994

STATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR QUESTIONED COSTS

The status offindings disclosed in the review report for the year ended June 30, 1993, is summarized below:

Audit Control Number

Status of Finding

838-93-01 838-93-02 838-93-03 838-93-04 838-93-05 838-93-06 838-93-07 838-93-08

Corrective Action Implemented See Audit Control Number 83 8-94-02 Corrective Action Implemented See Audit Control Number 838-94-03 See Audit Control Number 838-94-01 Corrective Action Implemented No Corrective Action Implemented Corrective Action Implemented

PRIOR YEAR/CURRENT YEAR

REVENUE/RECEIVABLES/RECEIPTS Inadequate Accounting Control Procedures Subsidiary Accounts Receivable Listing for Tuition and Fees Financial Statements Audit Control Number 838-94-01

The review report for the year ended June 30, 1993, disclosed that a detailed accounting of student tuition and fees activity was not maintained in the formal accounting records for the Governmental Fund Type - Budget Fund in accordance with the Policy Manual of the State Board of Technical and Adult Education. Instead, a detail of activity was maintained in subsidiary ledgers with collections posted to the Fiscal Accounting and Control System as cash was received. As a result, no accounts receivable were included on the formal accounting records for those tuition and fees guaranteed by financial aid. For the year under review, this deficiency continued to exist.

The Institute should follow established procedures to ensure that accounts receivable for tuition and fees guaranteed by financial aid are recorded on the Fiscal Accounting and Control System as required by State Board policy.

GENERAL LEDGER Agency Funds - Inadequate Accounting Records Financial Statements Audit Control Number 838-94-02

The review report for the year ended June 30, 1993, disclosed that North Georgia Technical Institute maintains a student loan program funded by the Georgia Electrification Council. As of June 30, 1994, this Agency Fund had a cash balance of$3,400.74 and student notes receivable of$8,040.00 that were included on the Combined Balance Sheet (Statutory Basis) ofthe Institute. Of the $8,040.00 balance outstanding, $7,535.00 represents student notes which are in default.

NORTH GEORGIA TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994

PRIOR YEAR/CURRENT YEAR

GENERAL LEDGER Agency Funds - Inadequate Accounting Records Financial Statements Audit Control Number 838-94-02

During the year ended June 30, 1993, it was also noted that a loan was improperly made to a student in excess ofthe $250.00 per quarter per student stipulation in the Georgia Electrification Council agreement. No new loans were made during the year under review.

North Georgia Technical Institute's decision effective June 30, 1992, to discontinue the loan program was accepted by the Georgia Electrification Council with the stipulation that the Institute return the original principal of$10,000.00 less a deceased student's loan of$500.00 to the Council. As of the date of this report, a final disposition of the principal balance had not been made.

GENERAL FIXED ASSETS/PROPERTY MANAGEMENT - Financial Statements ADMINISTRATIVE REQUIREMENTS -Federal Financial Assistance Inadequate Equipment Inventory Records Audit Control Number 838-94-03

The review report for the year ended June 30, 1993, disclosed that the equipment inventory records for the Institute's general fixed assets were deficient in that equipment additions were not adequately reconciled to the general ledger expenditure accounts. For the year under review, this deficiency continued to exist and affected the following Federal financial assistance programs:

23.001 81.041 84.048 84.126 84.243 93.565

Appalachian Regional Development State Energy Conservation - Stripper Well Oil Violations Fund Vocational Education - Basic Grants to States Rehabilitation Services - Basic Support Tech-Prep Education State Legalization Impact Assistance Grants

North Georgia Technical Institute should follow established procedures to ensure that equipment inventories are maintained in accordance with provisions of the State Property System Manual and/or applicable Federal regulations.

NORTH GEORGIA TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Agency Fund Overpayments Financial Statements Amount: $100.00 Audit Control Number 838-94-04
In the year under review, two students receiving scholarships from the Athens Regional Medical Center MLT Scholarship Fund were overawarded $50.00 each for one month. Under the terms of the agreement, students are allowed $100.00 per month during their clinical phase of training. For the month of February, 1994, two students received $150.00 each.
Reimbursement should be secured for refund to the Athens Regional Medical Center and the Institute should implement proper internal controls to ensure that the purpose and terms of the agreement are followed.