Review report, state of Georgia, North Georgia Technical Institute, Clarkesville, Georgia, year ended June 30, 1995

GJ-t
A 800 , Rl Nb6 1994-0S
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, 1995

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)

ALLFUNDTYPESANDACCOUNTGROUPS

2

B STATEMENT OF CHANGES IN FUND BALANCE (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"DEPARTMENTOFTECHNICALANDADULTEDUCATION

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

32

COMBINING STATEMENT OF CHANGES IN FUND BALANCE

(STATUTORY BASIS)

BUDGET FUND

33

J COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

34

K COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

FIDUCIARY FUND TYPE - AGENCY FUNDS

38

SCHEDULES

I CASH AND CASH EQUIVALENTS

39

2 INVESTMENTS

40

3 SCHEDULE OF FEDERAL REVENUES

41

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

SECTION! FINANCIAL

CLAUDE L. VICKERS
STATE AUDITOR {404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
November 14, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly of Georgia Members of the State Board of Technical and Adult Education Members ofthe Local Board ofDirectors
and Honorable Judy Hulsey, 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, 1995, 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 inforniation 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 ofany material modifications that should be made to the accompanying financial statements in order for them to be in confonnity with the basis of accounting described in Note 1.
Our review was made for the purpose ofexpressing limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in confonnity with the basis of accounting described in Note 1. The accompanying supplementary inforniation (Exhibits H through K and Schedules I through 3) is presented only for supplementary analysis purposes. Such information has been

95ARL-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.
t t ~ ~ Respectfully submitted,
Claude L. Vickers State Auditor
CLV:gp 95ARL-4T

FINANCIAL STATEMENTS - 1-

NORTH GEORGIA TECHNICAL INSTITUTE COMBINED BAI ANCE SHEET (STATUTORY BASIS)
ALL FUNP tvPFS AHP ACCOUNT GROUP
JUNE ;in 1995

Call and Call Equ...-
1.-
Aoccunts Receivable 5-Funds Federal Anancial Assistance Student Notes Other
FocedAssels Equipment
Amounts to be Provided "" Pyment of: Accrued Compensated Absences
Total Assets

GOVERNMENTAL FUN0TYPE .
BUDGET

FIDUCIARY FUND TYPES

NON EXPENDABLE

TRUST

AGENCY

414,838.<49 $
25,058.29 67,254.27 60,333.30 152,645.88

694.71 $ ---'54=,1=23aa.09~ 35,000.00

$

8,040.00

$

8,040.00

567,485.35 $

35,694.71 s ____62_,1_63_._oe.,

LIABILITIES ANO FUND EQUITY
Liabilities Aoccunts Payable OererredRevenue Tuition and Fees Funds Held in Custody for Others Compensated Absences
Total Liabilities
Fund Equity Investment in General Fixed Assets Fund Balances ReseM>d Endowment Corpus Federal F"manciat Assistance For Refund to Georgia Department of Technical and Adutt Education - Administrative Central Office Live Work Projec;ts Unreserved Designated Surplus Regular
Lottery r... Education
Undesignted
Total Fund Equity

541,635.21 10,992.50
$ _ _.;;55a;;2a,;,62=7::..71:..

$

24.18

13,040.65

1,396.23 396.58

$

14,857.64 $

Total Liabilities and Fund Equity
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 -

567,485.35 $

62,163.09 $ _ _ _62~,1_63_._09_
35,000.00

694.71 35,694.71
35,694.71 $

62,163.09

EXHIBIT"A"

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

TOTALS

(Memorandum On!):)

JUNE 30, 1995

JUNE 30, 1994

2,575,083.83

-469,657.29 $

133,891..43

$

35,000.00 $

35,000.00

25,058.29 $ 67,254.27 8,040.00 60,333.30
160,685.86 $

0.00 17,062.27 8,040.00 16,174.34
41,276.61

2,575,083.83 $

2,378,575.43

361,387.89 $

361,387.89 $

378,756.75

$

2,575,083.83 $

361,387.89 $

3,601,814.87 $

2,967,500.22

$ 2,575,083.83

361,387.89 361,387.89 $

541,635.21 $
10,992.50 62,163.09 361,387.89
976,178.69 $

90,494.32
7,957.25 65,832.n 378,756.75
543,041.09

2,575,083.83 $

2,378,575.43

35,000.00

35,000.00

24.18 13,040.65

0.00 10,189.65

2,575,083.83

1,396.23 396.58 694.71
2,625,636.18 $

501.84 0.00
192.21
2,424,459.13

2,575,083.83 $

361,387.89 $

3,601,814.87 $

2,967 ,50022

-3-

NORTH GEORGIA TECHNICAL INSTITUTE SJAifMfNI Pf CHANGE$ JN FUND BALANCE /STATUTORY BAs1s1
ALL ELJNP TYPES YfAB fNDfD JUNE 3Q 1995

EXHIBIT"B"

GOVERNMENTAL FUND TYPE BUDGET

FIDUCIARY FUND TYPE NONEXPENDABLE
TRUST

TOTALS
(Memorandum On!XJ YEAR ENDED
JUNE 30, 1995 JUNE 30, 1994

FUND BALANCES - JULY 1

ReseMld Unreserved
Designated Surplus
Undesignated

$

10,189.65 $

501.84

35,000.00 $ 192.21

45,189.65 $
501.84 192.21

41,987.39
190.35 239.31

$

10,691.49 $

35,192.21

45,883.70 $

42.417.05

ADDITIONS

Adjustments to Prior Yea(s Accounts Payable Excess of Funds Available over Expenditures
Exhibit"C" Excess of Revenues over Expenditures
Exhibit"F"

$

1,685.88

13,171.76

$

$ 502.50

1,685.88 $ 13,171.76
502.50

500.73 12,834.73
-47.10

$

14,857.64 $

502.50 $

15,360.14 $

13,288.36

DEDUCTIONS

Unreserved Fund Balance (Surplus)

Returned to Georgia Department of Technical and

Adult Education - Administrative Central Office

Year Ended June 30, 1993

$

Year Ended June 30, 1994

Adjustments to Prior Year's Accounts Receivable

Reserved Fund Balance Carried Over from

Prior Year as Funds Available

0.00 501.84
10,189.65

$

0.00 $

501.84

10,189.65

190.35 2,643.97 6,987.39

$

10,691.49

$

10,691.49 $

9,821.71

FUND BALANCES - JUNE 30

(To Exhibit "A")

$

14,857.64 $

35,694.71 $

50552.35 $

45,883.70

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 GEQBGIA TFQHN1CAI INSTITUTE STATEMENT OF FUNDS AVAILABLE ANQ EXPENDITURES
BUQGETFUND YEAR ENQEP JUNE :lQ 1995

EXHIBIT"C"

FUNDS Al/An ABLE
~
STATE FUNDS Allalment from Georgia Department of Technical and Adult Education Administrative Central Office
FEDERAL REVENUES (See Schedule)
OTHER REVENUES RETAINED Contract Georgia Department of Human Resoorces PEACH Project Georgia Institute of Technology Satellite Technology Program Rabun Council of Economic Development Organization
F-
Applicalion 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 ReseM!d Fund Balance Live Work Projects
Total Carry-Over from Prior Year

TOTALS

YEAR ENDED

JUNE 30, 1995

JUNE 30, 1994

5,448,158.94 $ _ _4,c,85cc2::,,.:.;156=.38::. 732,223.82 $ ---'7.:;88::.,,9;;.:7.:;5:=;.93::.

$

17,442.10 $

15,229.09

88,926.81

12,600.00 161,493.36 19,944.00
29,400.00 55,897.94 312,508.67 553,346.91
2,076.62

$ ---'1=,26=8,8=65:.5:0. $
$ _ __7,,4=49=,24=8.'2-6- $

19,248.41
13,021.96
0.00
13,480.00 158,318.69 25,605.00
22,888.83 53,166.00 283,982.14 423,833.97
2,022.56
1,015,567.56
6,656,699.87

10,189.65 $ _ _ _6::.,,98=7-:::39::. 10,189.65 $ _ _ _6::.,,98=7:::.39::.

Total Funds Available

7,459 437.91 $ ==,,;;6.;663~68=7-~26;;;,

EXPENDITURES
PERSONAL SERVICES~NSTITUTIONS
Salaries and Wages Employe(s Contributions for:
F.I.C.A. Retirement Health Insurance
See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary lntonnation.
The notes to the financial statements are an integral part of this statement. 6.

3,779,676.53 $
192,646.47 482,077.72 406,146.32

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

NORTH GEORGIA TECHNICAL INSTITUTE
STATEMENT OF FUNDS AVAILABLE ANp EXPENDITURES
BUPGETFUNp YEAR ENDED JUNE 30 1995

EXHIBIT"C"

EXPENDITURES
PERSONAL SERVJCES-INSTITLJTIONS
Emploier's Contributions for: Liability Insurance Unemployment Compensation Insurance Worl<ers' Compensation Insurance Merit System Assessment
OPERATING EXPENSES-INSTITUTIONS
OtherCosts 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 Real Estate Rentals Telecommunications Per Diem, Fees and Contracts
Per Diem and Fees Contracts
QUICK START PROGRAM
Personal Services Salaries and Wages Emploier's Contributions for: F.I.C.A. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' compensatk>n Insurance
See Independent Accountant's Combined Report on Review of Financial Statements and Supplemenlary Information.
The notes to the financial statements are an integral part of this statement.
-7-

TOTALS

YEAR ENDED

JUNE 30, 1995

JUNE 30, 1994

$

22,985.21 $

3,268.62

118,625.00

3,739.07

13,716.00 2,677.00 74,230.00 4,561.84

$

5,009,164.94 $

4,620,529.75

$

23,371.07 $

26,126.34

418,214.39

412,198.71

69,380.36

139,430.62

338,490.64

350,800.89

6,420.28

5,846.63

16,519.00

7,870.00

63,245.57

88,297.71

24,019.75

29,028.00

42,126.08

36,195.55

36,239.00

16,250.00

75,371.42

138,487.81

17,173.34 6,188.20
17,996.39
128,933.58 1,250.00
47,821.55
124,165.01 0.00
1,476,925.63 $

15,150.63 15,317.78 16,317.26
133,124.03 0.00
37,044.06
21,149.72 315.00
1,488,950.74

$

0.00 $

16,244.64

0.00

241.57

0.00

1,972.80

0.00

2,088.00

0.00

127.00

0.00

27.00

0.00

750.00

NORTH GEORGIA TECHNICAi INSTITUTE STATEMENT OF FUNDS AVAILABLE ANP EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 3Q 199

EXHIBIT"C"

EXPfNDITIJRfS
QUICK START PROGRAM
OlherCosts Supplies and Matmls Repairs and Maintenance UtiHties
other Operating E>cpenses Travel
Equipment Equipment Purchases
Telecommunications Per Diem, Fees and Contracts
Per Diem and Fees
ADULT LITFRACY GRANTS
Personal Services Salaries and Wages Employe(s Contributions for:
F.I.C.A.
Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Wor1<ers' Compensation Insurance other Costs Supplies and Materials Repairs and Maintenance Rents (other than Real Estate) other Operating Expenses Publications and Printing Travel Equipment Equipment Purchases Computer Charges Software Equipment Equipment Purchases Real Estate Rentals Telecommunications Per Diem, Fees and Contracts Per Diem and Fees
JOB TRAINING PARTNERSHIP ACT
Personal Services Salaries and Wages Employe(s Contribution for:
F. I. C.A.
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.

TOTALS

YEAR ENDED

JUNE 30, 1995

JUNE 30, 1994

606.90 $ 0.00
2,307.18 8,398.03
612.78
0.00 601.19
823.68
13,349.76 $

522.19 1,843.04 3,745.76 3,750.00 2,769.18
391.94
649.26
140.00
35,262.38

286,402.07 $
5,928.05 15,367.10 15,527.12
435.78 65.38
2,374.00
51,406.26 2,024.64 1,000.00 9,941.83 1,431.00
13,966.77
2,180.34
1,654.30
2,705.30 250.00
4,191.98
2,780.00
419,632.12 $

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 0.00 0.00 794.50
10,848.56
3,444.91
1,276.75
4,721.64 0.00
2,348.79
250.00
335,495.77

22,106.06 $ 225.79

8,076.36 108.88

NORTH GEORGIA TECHNICAL INSTITUTE
STATEMENT OF FUNDS AYA!LABLE AND EXPENDITURES
BUDGET FUND
YEAR ENDED JUNE 3Q 1995

EXHIBIT"C"

EXPENDITURES
JQB TRAINING PARTNERSHIP ACT
Penional Services Employers Contributions for: Retirement Health Insurance
other Coots Supplies other Operating Expenses
Equipment Equipment Purchases
Computer Charges Software
Telecommunications
(aQUIPM!;NT-TECHNICAL INSTITUTES
other Cost other Operating Expenses
Computer Charges Equipment Equipment Purchases
Equipment Equipment Purchases
REPAIRS AND RENOVATIONS
other Cost Repairs and Maintenance other Operating Expenses
Total Expenditures
Excess of Funds Available over Expenditures

TOTALS

YEAR ENDED

JUNE 30, 1995

JUNE 30, 1994

0.00 $ 237.28
1,486.79 55.85
1,020.15
7,229.03 953.87
33,314.82$

908.05 1,009.60
0.00 0.00
0.00
0.00 0.00
10,102.89

132.99 $

0.00

12,192.82

0.00

141,650.88

160,511.00

$

153,976.69 $

160,511.00

$

339,370.23 $

0.00

531.96

0.00

339,902.19 $

0.00

$

7,446,266.15 $

6,650,852.53

13,171.76

12,834.73

$

7 459437.91 $

6,663,687.26

See Independent Accourltant'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 INSmUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION YEAR ENDED JUNE 30 1995

EXHIBIT"D"

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

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$

4,955,441.00 $

844,664.00

2107 053.00

$

7,907,158.00 $

4,954,280.06 $ 732,223.82
1 268,865.50
6,955,369.38 $

-1,160.94 -112,440.18 -838187.50
-951,788.62

0.00

10,189.65

10 189.65

$

7,907,158.00 $

6,965,559.03 $

-941,598.97

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

$

5,245,718.00 $

2,164,537.00

14,455.00

442,568.00

39,880.00

5,009,164.94 $ 1,476,925.63
13,349.76 419,632.12
33,314.82

236,553.06 687,611.37
1,105.24 22,935.88
6,565.18

$

7,907,158.00 $

6,952,387.27 $

954,TT0.73

Excess of Funds Available over Expenditures

$

13,171.76 $

13,171.76

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 1995

EXHIBIT"E"

FUNDS AVAILABLE REVENUES
State Funds

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$

494,000.00 $

493,878.88 $ _ _ _ _-1_2_1._12_

EXPENDITURES Equipment - Technical Institutes Repairs and Renovations

$

.154,000.00 $

340,000.00

153,976.69 $ 339,902.19

23.31 97.81

$

494,000.00 $

493,878.88 $ _ _ ___;1.::;2_;_1...;.12~

Excess of Funds Available over Expendttures

$

0.00 $ = = = = =0.0=0

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 1995

EXHIBIT"F"

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

LENORAM. SARLING
SCHOLARSHIP FUND

$

1 887.50

$

1 385.00

$

502.50

35192.21

FUND BALANCE JUNE 30 1995

$

35,694.71

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
JUNE30 1995

EXEilBIT "G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY North Georgia Technical Institute is one of twenty-nine (29) State supported member institutes of postsecondary education in Georgia which comprise the Georgia Department of Technical and Adult Education, an organizational unit ofthe 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 ofits 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 ofits operations determined in conformity with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia. A fund is an independent fiscal and accounting entity with a selfbalancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number offunds are maintained consistent with legal and managerial requirements. Account groups are a reporting device used to account for certain assets and liabilities of the governmental funds not recorded directly in those funds.
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 1994-1995. This fund also includes operations from various institutional services provided to students, faculty, and/or staffwhich 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 lRUST 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
JUNE30 1995

EXHIBIT"G"

NOTE l: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
FIDUCIARY FUND TYPES
NONEXPENDABLE TRUST FUND 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.
The cost of normal maintenance and repairs that do not add to the value ofthe asset or materially extend assets' lives are not included in the General Fixed Assets Account Group. Material improvements adding to the value or useful life of the assets are included in the General Fixed Assets Account Group.
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 flow of current financial resources measurement focus. With this measurement focus, operating statements present increases and decreases in net current assets and unreserved fund balance is a measure of available spendable resources. In accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, the Budget Fund returns its unreserved fund balance (surplus) to the Administrative Central Office of the Department of Technical and Adult Education for remittance to the Office of Treasury and Fiscal Services in the subsequent fiscal year. 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.

- 14 -

NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT"G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING 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 ofaccounting. Under the modified accrual basis ofaccounting, revenues are recognized when susceptible to accrual (i.e., when they are "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 pay liabilities ofthe current period. Revenues that are accrued include primarily State funds, Federal grants and entitlements, and certain amounts earned under operating agreements with other parties. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized when due, and certain compensated absences, claims and judgments which are recognized when the obligations are expected to be liquidated with expendable available financial resources.
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 ofencumbrances as a reservation offund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles.
Prior period adjustments and certain other items 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 of the 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 ofaccounting. 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.
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NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT"G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING FIDUCIARY FUND TYPES AGENCY FUNDS
Agency Funds are custodial in nature and do not measure results of operations or have a measurement focus. The modified accrual basis ofaccounting is utilized for recognizing assets and liabilities.
BUDGET The Georgia Department of Technical and Adult Education - Administrative Central Office receives State appropriation allotments and certain Federal funds for the various technical institutes throughout the State. The appropriated budget is adopted at the departmental level and represents appropriations provided by the Amended Appropriations Act of 1994-1995. The budget allocation and disbursement ofthese 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 ofallotments due from the Georgia Department of Technical and Adult Education - Administrative Central Office, reimbursements 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:
FEDERAL FINANCIAL ASSISTANCE REFUNDTO GEORGIA DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE
North Georgia Technical Institute receives Federal funds for the Adult Education Act and the Carl D. Perkins Vocational and Applied Technology Education Act through the Georgia Department of Technical
- 16 -

NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXEilBIT "G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

RESERVED FUND BALANCE

FEDERAL FINANCIAL ASSISTANCE REFUND TO GEORGIA DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE
and Adult Education - Administrative Central Office. As provided by the respective budget allocation to the Institute, these funds were required to be expended by June 30, 1995. At June 30, 1995, the following programs had unexpended Federal funds which should be refunded to the Administrative Central Office:

Adult Education Act Adult Education
Carl D. Perkins Vocational and Applied Technology Education Act Vocational Education - Community Based Organizations

$

12.66

11.52

LIVE WORK PROJECTS The accumulated balance of unexpended funds derived from student live work projects. This amount is restricted to expenditures for Jive 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 ofthe trust agreement.
UNRESERVED FUND BALANCE In accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, the Budget Fund's unreserved fund balance is returned to the Georgia Department of Technical and Adult Education - Administrative Central Office for remittance to the Office of Treasury and Fiscal Services in the subsequent fiscal year as surplus, as follows:
REGULAR - An amount of unexpended general appropriations available to the State for reappropriation in subsequent years.
LOTTERY FOR EDUCATION - An amount ofunexpended lottery appropriations available for future reappropriation for Lottery for Education.
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
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NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXJilBIT "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 an.alysis. The columns do not present information that reflects 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 ofthis data.
COMPARATIVE DATA Comparative total data for the prior year have been presented in selected sections of the accompanying financial statements in order to provide an understanding ofthe changes in the Institute's financial position and operations. Comparative totals have not been included on statements where their inclusion would not provide enhanced understanding of the Institute's financial position and operations or would cause the statements to be unduly complex and difficult to understand. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation.
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, certificates ofindebtedness, notes, or other direct obligations of the United States or ofthe State of Georgia.
(2) Bonds, bills, certificates ofindebtedness, notes, or other obligations ofthe counties or municipalities of the State of Georgia.
(3) Bonds ofany public authority created by the laws ofthe State ofGeorgia, providing that the statute that created the authority authorized the use of the bonds for this purpose.
(4) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws of the State of Georgia.

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NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE30 1995

EXIIlBIT "G"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES (5) Bonds, bills, certificates of indebtedness, notes, or other obligations ofa 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 Horne Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Horne 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 ofGeorgia 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.

CATEGORIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, cash deposits consist of all bank balances which include demand deposits and/or interest bearing accounts. The bank balances as of June 30, 1995, 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 pledging financial institution's trust department or agent in the Institute's name.

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

Cash Deposits

Canying Amount

Bank Balances

S 467 657 29 S 753 707 96

Risk Categories
254 760 80 s'--="o,.,oo"" s 428 241 16

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:

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NORTH GEORGIA TECHNICAL INSTIWTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXlilBIT "G"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

CATEGORIZATION OF INVESTMENTS Category I - Insured or registered, or securities held by the Institute or its agent in the Institute's name.

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

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

The carrying amounts ofinvesttnent balances as ofJune 30,.1995, are categorized below:

Type oflnyestment U. S. Government Securities

Risk Categories

Carrying Amount

Market Value

S 3500000 S

ooo s,....._="o,..o.,.o s 35 ooo oo s 34 36& oo

NOTE 3: OPERATING LEASES

North Georgia Technical Institute has entered into certain agreements to lease equipment which are classified as operating leases (leases on assets not recorded on the balance sheet). These leases generally contain provisions that, at the expiration date ofthe original term of the lease, the Institute has the option ofrenewing the lease on a year-to-year basis.

Expenditures for rental of equipment under operating leases for the year ended June 30, 1995, totaled $2,280.00.

NOTE 4: CHANGES IN GENERAL FIXED ASSETS

In accordance with the statutory definition of moveable personal property as defined in 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 ofequipment for the General Fixed Assets Account Group during the fiscal year:

Balance July 1, 1994

$ 2,378,575.43

Additions Deductions
Balance June 30, 1995

230,357.01 33 848.61
$ 2 575 083 83

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NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT"G"

NOTE 5: GENERAL LONG-TERM DEBT

CHANGES IN GENERAL LONG-TERM DEBT During the year ended June 30, 1995, the following changes occurred in the compensated absences liability reported in the General Long-Term Debt Account Group:

Balance July 1, 1994

$ 378,756.75

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

-15,427.35 -1 941.51

Balance June 30, 1995

$ 361 387 89

NOTE 6: RISK MANAGEMENT

Public Entity Risk Pool The State Personnel Board - Merit System of Personnel Administration internally administers for the State of Georgia a program of health benefits for the employees of units of government ofthe State of Georgia and units of county governments and local education agencies located with the State of Georgia. This plan is funded by participants covered in the plan, by employers' contributions paid by the various units of government participating in the plan, and appropriations made by the General Assembly of Georgia. The State Personnel Board - Merit System ofPersonnel Administration has contracted with Blue Cross Blue Shield of Georgia to process claims in accordance with the State Employees' Health Benefit Plan as established by the State Personnel Board.

Other Risk Management The Department ofAdministrative Services (DOAS) has the responsibility for the State of Georgia of making and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS services claims for risk of loss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' indemnification. Limited amounts ofcommercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. The Institute, as an organizational unit of the Georgia Department of Technical and Adult Education, is part of the State of Georgia reporting entity, and as such, is covered by the State of Georgia risk management program administered by DOAS. Premiums for the risk management program are charged to the state agencies by DOAS to provide claims servicing and claims payment.

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NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXIIlBIT "G"

NOTE 7: DEFERRED COMPENSATION PLAN
The State ofGeorgia offers its employees a deferred compensation plan in accordance with Internal Revenue Code Section 457. The plan, available to employees of the State ofGeorgia and county health departments, permits such employees to defer a portion oftheir 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 ofPersonnel Administration for the year ended June 30, 1995.
NOTES: RETIREMENTPLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Plan Description North Georgia Technical Institute participates in the Teachers Retirement System of Georgia (TRS), a costsharing multiple-employer public employee retirement system (PERS) established by the General Assembly ofGeorgia for the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia. The Institute's payroll for the year ended June 30, 1995, for employees covered by TRS was $916,277.89. The Institute's total payroll for all employees was $4,088,184.66.
Benefits TRS provides service retirement, disability retirement, and survivor's benefits for its members. A member is eligible for service retirement after the member (1) has attained the age of 60 years and has at least ten years ofcreditable service, (2) has at least 30 years ofcreditable service, regardless ofage, or (3) has attained the age of55 years and has at least 25 years of creditable service. For those members with 30 years of service or those age 60 with at least ten years of service, retirement benefits are equal to 2% of the average of the member's two consecutive highest paid years ofservice multiplied by the number of years ofcreditable service up to 40 years. Any member who has between 25 and 30 years of creditable service and is at least 55 years ofage shall receive a benefit which is reduced by the lessor of 1/12 of 7% for each month the member is below age 60, or by 7/4 for each year or fraction thereofby which the member has less than 30 years of service. The no111lal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits whereby the disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The benefit is based on member's creditable service (minimum of 10 years of service) and compensation up to the date of death or up to the time of disability.
- 22 -

NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXIIlBIT "G"

NOTES: RETIREMENTPLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Benefits Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.

Contributions Required and Contributions Made Employees of the Institute who are covered by TRS are required to pay 5% of their gross earnings to TRS. The Institute makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1995, the employer contribution rate was 11.81% for covered employees. The interest rate assumption (rate ofretum on investments) was 7.50%.

Total contributions to the plan made during fiscal year 1995 amounted to $154,028.55, of which $108,212.39 was made by the Institute and $45,816.16 was made by employees. These contributions represented 11.81% (Institute) and 5% (employees) of covered payroll.

Funding Status and Progress Pension Benefit Obligation
The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 of the Governmental Accounting Standards Board (GASB) that is required to be used for reporting purposes. The standardized measurement is the actuarial present value ofcredited projected benefits. This pension valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date and is adjusted for the effects of projected salary increases and any step-rate benefits. A standardized measure of the pension benefit obligation was adopted by the GASB to enable readers of the PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among similar PERS.

The total unfunded pension benefit obligation ofTRS as of June 30, 1994, which was the latest information available, was as follows:

Total pension benefit obligation

$ 15,313,743,000.00

Net assets available for benefits, at cost

14 254 785 000.00

Unfunded pension benefit obligation

$ I 058 958 000 00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1994. Net assets available for benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

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NORTII GEORGIA TECHNICAL INSTITUTE NOTES TO TIIE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT"G"

NOTE 8: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Funding Status and Progress Retirement System Contributions
Total contributions from all employers to TRS for the year ended June 30, 1995, were $565,117,811.00. The Institute's contribution for the year ended June 30, 1995, of $108,212.39 was actuarially determined and represented .0192% oftotal contributions made by all participating employers.
Trend Information Historical trend information is presented in the financial report ofTRS for the year ended June 30, 1995. This information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due.
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Plan Description North Georgia Technical Institute participates in the Employees' Retirement System of Georgia (ERS), a single-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose ofproviding retirement allowances for employees of the State of Georgia. The Institute's payroll for the year ended June 30, 1995, for employees covered by ERS was $2,391,697.00. The Institute's total payroll for all employees was $4,088,184.66.
Benefits The benefit structure of ERS was significantly modified on July 1, 1982. Unless elected otherwise, an employee who currently maintains membership with ERS based upon State employment that started prior to July 1, 1982, is an "old plan" member subject to the plan provisions in effect prior to July 1, 1982. All other members are "new plan" members subject to the modified plan provisions.
Members become vested after 10 years of creditable service. A member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 65. Retirement benefits paid to members are based upon a formula which considers the monthly average of the member's highest eight consecutive calendar quarters of salary, the number of years of creditable service, and the member's age at retirement. Postretirement cost-of-living adjustments are also made to member's benefits. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension at reduced rates to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. If 10 years of service is completed and age 60 is reached, the member may retire with a reduced benefit. Additionally, there are certain provisions allowing for retirement after 30 years of service regardless of age.

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NORTH GEORGIA TECHNICAL INSTmJTE NOTES TO THE FINANCIAL STATEMENTS
JUNE30 1995

EXHIBIT "G"

NOTES: RETIREMENTPLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Contributions Required and Contributions Made Under the old plan, member contnbutions consist of employee contnbutions paid by the employee of 1.25% ofannual compensation and 4.75% of annual compensation paid by the Institute on behalfofthe employee. Under the new plan, member contnbutions consist solely of 1.25% of annual compensation paid by employee. The Institute also is required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation. Contributions are also made on amounts paid for accumulated leave of retiring employees.

Total contributions to the plan made during fiscal year 1995 amounted to $402,718.26, of which $372,821.94 was made by the Institute and $29,896.32 was made by employees. These contributions represented 14.89"/o (Institute) and 1.25% (employees) of covered payroll.

Funding Status and Progress Pension Benefit Obligation
The amount shown as the "pension benefit obligation" is a standardized disclosure measure of the present value ofpension benefits, adjusted for the effects of projected salary increases and step-rate benefits, estimated to be payable in the future as a result ofemployee service to date. The measure is intended to help users assess the funding status ofERS on the going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among employers. The measure is the actuarial present value ofcredited projected benefits, and is independent of the funding method used to determine contributions to the plan.

The pension benefit obligation was computed as part of an actuarial valuation performed as of June 30, 1994. Significant actuarial assumptions used in the valuation include the following:

(1) The present value of future pension benefits paid was computed using a discounted rate of7.5%. This rate is also the same rate assumed to be earned on investments in the plan in future years.

(2) Future pension payments reflect the following assumed salary increases as a result of inflation and merit increases:

~
20 25 30 35 40 to 65

Percentage
9.5% 8.5% 6.5% 6.0% 5.7%

- 25 -

NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXIIlBIT "G"

NOTES: RETIREMENTPLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Funding Status and Progress Pension Benefit Obligation (3) ERS has the authority to grant cost-of-living adjustments by State statute. As of June 30, 1994, cost-of-living adjustments have been included in the pension benefit obligation.

The total unfunded pension benefit obligation ofERS as ofJune 30, 1994, which was the latest information available, was as follows:

Pension Benefit Obligation:

Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receiving benefits

$ 2,227,653,000.00

Current employees:

Accumulated contributions

648,516,000.00

Employer financed - vested

1,085,190,000.00

Employer financed - nonvested

1 206 805 000.00

Total pension benefit obligation

$5,168,164,000.00

Net assets available for benefits, at cost

4 858 015 000.00

Unfunded pension benefit obligation

$ 310 ]49 000 00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1994. Net assets available for benefits were valued as of the same date. ERS does not make separate measurements of assets and pension benefit obligation for individual employers.

Funding Policy The ERS funding policy provides for periodic employer contributions at actuarially determined rates that, expressed as percentages ofannual payroll, are sufficient to accumulate sufficient assets to pay benefits when due. Level percentage of payroll employer contribution rates are determined using the entry age funding method. ERS also uses the level percentage of payroll method to amortize the unfunded liability within approximately 20 years following the valuation date.

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NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT"G"

NOTES: RETIREMENTPLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Funding Status and Progress Funding Policy
Total contributions from all employers to ERS for the year ended June 30, 1995, were $256,624,679.00. The Institute's contribution for the year ended June 30, 1995, of $372,821.94 was actuarially determined and represented .1453% of total contributions made by all participating employers.

Significant actuarial assumptions used to compute contributions are the same as those used to compute the standardized measure of pension obligation.

Trend Information

Historical trend information is presented in the financial report ofERS for the year ended June 30, 1995. This

information gives an indication of the progress made in accumulating sufficient assets to pay benefits when

due.



GEORGIA DEFINED CONTRIBUTION PLAN

Plan Description North Georgia Technical Institute participates in the Georgia Defined Contribution Plan (GDCP) which is a single-employer defined contribution plan established by the General Assembly of Georgia in July 1993 for the purpose ofproviding retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees ofthe Employees' Retirement System of Georgia. The Institute's payroll for the year ended June 30, 1995, for employees covered by GDCP was $515,250.57. The Institute's total payroll for all employees was $4,088,184.66.

Benefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board ofTrustees. If a member has less than$ 3,500.00 credited to his/her account, the Board of Trustees has the option ofrequiring a lump sum distribution to the member in lieu ofmaking periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated
beneficiary.

Contributions and Vesting Member contributions are seven and one-half percent (7.5%) of gross salary. There are no employer contributions. Earnings are credited to each member's account in a manner established by the Board of Trustees. Upon termination ofemployment, the amount ofthe member's account is refundable upon request
by the member.

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NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 199S

EXIIlBIT "G"

NOTES: RETIREMENTPLANS
GEORGIA DEFINED CONTRIBUTION PLAN
Contributions and Vesting Total contributions made by employees during fiscal year 1995 amounted to $38,644.35 which represents 7.5% of covered payroll. These contributions met the requirements ofthe plan.
NOTE 9: 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 ofcontinuous 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.
NOTE 10: NONMONETARY TRANSACTIONS
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, 1995, the Georgia State Financing and Investment Commission paid $979,482.71 to various vendors for approved projects related to North Georgia Technical Institute.
NOTE 11: CONTINGENCIES
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. This could result in refunds to the grantor agency for any expenditures which are disallowed under grant terms. The amount of expenditures which may be disallowed by the grantor cannot be determined at this time although the Institute expects such amounts, if any, to be immaterial to its overall financial position.
Litigation, claims and assessments filed against North Georgia Technical Institute (as an organizational unit of the Department of Technical and Adult Education), if any, are generally considered to be actions against the State of Georgia. Pursuant to the Official Code of Georgia Annotated, the Department of Administrative Services maintains a program of purchased insurance and self-insurance which provides coverage for such
- 28 -

NORTH GEORGIA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXIIlBIT "G"

NOTE 11: CONTINGENCIES
litigation, claims and assessments. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1995.
NOTE 12: 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 was paid to October 1, 1995. 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 $1,000,000.00 against loss sustained from failure of its 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 Commercial Crime Policies written by the United States Fire Insurance Company, their Policy Nos. 626011675 2 and 626 012294 4, on which the premiums were paid to October 1, 1995. Under these additional public employee dishonesty coverages, the policies insure the Institute to a maximum of$9,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees.

- 29-

3u

SUPPLEMENTARY INFORMATION - 31 -

NORTH GfORGIA TECHNICAL INSTITUTE COMBINING BAlANCf SHEET ISTATUTORy BASIS)
BUDGET FUND JUNE 30 1995

EXHIBIT"H"

Cash and Cash Equiva-
Accounts Receivable State Funds Federal Financial Assistance Other
Total Assets
LIABILITIES AND FUND EQUITY
Liabilities Cash OVerdraft Accounts Payable Deferred Revenue Tuition and Fees
Total Liabilities
Fund Equity Fund Balance Reserved Federal Financial Assistance For Refund to Georgia Department of Technical and Adult Education Administrative Central Office Live Work Projects Unreserved Designated Surplus Regular Lottery for Education
Total Fund Equity
Total Liabilities and Fund Equity

.

"A"

DEPARTMENT OF.

TECHNICAL

AND ADULT

EDUCATION

e
LOTTERY FOR
EDUCATION

TOTAL

$

0.00 $

434,694.07 $

434,694.07

$

10,055.41 $

,,,;}.54.'Zl

60,333.30

$

137,642.98 $

15,002.88 $ 15,002.88 $

25,058.29 l,f,254.'Zl 60,333.30
152,645.86

$

137642.98 $

449696.95 $

587339.93

19,854.58 92,334.84 $
10,992.50
123,181.92 $

$ 449,300.37

19,854.58 541,635.21

10,992.50
s 449,300.37 --~s~n~,482-=.29-

$

24.18

13,040.65

$

24.18

13,040.65

1,396.23 $

$

14,461.06 $

396.58 396.58 $

1,396.23 396.58
14,857.64

137642.98 $

449696.95 $

587339.93

See accompanying notes and Independent Accountant's Combined Report on Review of Financial statements and Supplementary Information.
32 -

NORTH GEORGIA TECHNICAL INSTITUTE COMBINING STATEMENT OF CHANGES IN FUND BALANCE /STATUTORY BASIS)
BUDGET FUND
VEAR ENDED JUNE 30 1995

EXHIBIT"!"

FUND BALANCE JULY 1 Reserved Un""""1HMI Designated Surplus
ADDITIONS Adjustments to Prior Yea(s Accounts Payable Excess of Funds Available over Expendttures
Exhibil"J"
DEDUCTIONS Unreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and Adult Education - Administrative Central Office Year Ended June 30, 1994 Reserved Fund Balance Carried over from Prior Year as Funds AvailabJe
FUND BALANCE JUNE 30
(To Exhibit "H")

"A" DEPARTMENT OF .
TECHNICAL AND ADULT EDUCATION

"B"
LOTTERY FOR EDUCATION

TOTAL

$

10,189.65

501.84 $

$

10,691.49 $

0.00 0.00 $

10,189.65
501.84 10,691.49

$

1,289.30 $

13,171.76

$

14,461.06 $

396.58 $ 396.58 $

1,685.88 13,171.76 14,857.64

501.84 $ 10,189.65 10,691.49 $
14461.06 $

0.00 $

501.84

10,189.65

0.00 $ _ ___c1.=,0,"'69'--'1'-'.49"-

396.58 $ ===1=40.857==64=

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
. 33.

NORTH GEORGIA TECHNICAL INSmUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND VEAR ENDED JUNE 30 1995

EXHIBIT"J"

FUNDS AVAILABLE
REVENUES
STATE FUNDS Allotment from Georgia Department of Technical and Adult Education -Administrative Central Office
FEDERAL REVENUES
OTHER REVENUES RETAINED Contract Georgia Department of Human Resources PEACH Project Georgia Institute of Technology Satellite Technology Program Rabun Council of Economic Development Organization 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
Total Carry-Over from Prior Year
Total Funds Available

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR EDUCATION

TOTAL

$

4 954,280.06 $

$ _ _..:.732=,223=:=82=-

493,878.88 $ ----=5'-',448=1-'-'58=.94-'$ ---=-732=,223=:=8=-2

17,442.10

15,229.09

88,926.81

12,600.00 161,493.36
19,944.00 29,400.00 55,897.94 312,508.67 553,346.91
2,076.62

$

1,268,865.50

$

6,955,369.38 $

17,442.10
15,229.09
88,926.81
12,600.00 161,493.36
19,944.00 29,400.00 55,897.94 312,508.67 553,346.91
2,076.62
$ _ __a1,:,268=,865=:=50~
493,878.88 $ ---'7'-'-,44-'-'=9-"'.2'-'48"'.=-26=-

$

10.189.65

$

10,189.65

$ ----'1'-=0-'-'1,.::;89.::;.::;65=. $ _ ___a10:c,,-"189=.65;a._

6.965.559.03 $

493,878.88 $ ==7=,4=59,,.,43=7=.9=1

EXPENDITURES
PERSONAL SERVICES-INSTITUTIONS
Salaries and Wages Employer's Contributions for:
F.I.C.A. Retirement

3,779,676.53
192,646.47 482,077.72

3,779,676.53
192,646.47 482,077.72

See accompanying notes and Independent Accountant's Combined Report on Revievf of Financial Statements and Supplementary Information.
- 34 -

NORTH GEORGIA TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30 1995

EXHIBIT"J"

EXPENDITURES
PERSONAL SERVICES-INSTITUTIONS
Employer's ContriWions for: Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance Merit System Assessment
OPERATING EXPENSES-INSTITUTIONS
Other Costs Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Util~ies 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 Real Estate Rentals Telecommunications Per Diem, Fees and Contracts
Per Diem and Fees
QUICK START PROGRAM
Other Costs Supplies and Materials Util~ Other Operating Expenses
Travel Telecommunications Per Diem Fees and Contracts
Per Diem and Fees

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR EDUCATION

TOTAL

406,146.32 22,985.21 3,268.62
118,625.00 3,739.07
5,009,164.94

23,371.07 418,214.39
69,380.36 338,490.64
6,420.28 16,519.00 83,245.57 24,019.75 42,126.08 36,239.00
75,371.42
17,173.34 6,188.20 17,996.39
128,933.58 1,250.00
47,821.55
124,165.01
1,476,925.63

$

606.90

2,307.18

8,398.03

612.78

601.19

823.68

13,349.76

$

406,146.32

22,985.21

3,268.62

118,625.00

3,739.07

5,009,164.94

$

23,371.07

418,214.39

69,380.36

338,490.64

6,42028

16,519.00

83,245.57

24,019.75

42,126.08

36,239.00

75,371.42

17,173.34 6,188.20
17,996.39
128,933.58 1,250.00
47,821.55
124,165.01
1,476,925.63

606.90 2,307.18 8,398.03
612.78 601.19

823.68

$

13,349.76

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

NORTH GEORGIA TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUQGETFUND YEAR ENDED JUNE 30 1995

EXHIBIT"J"

EXPENDITURES
ADULT LITERACY GRANTS
Personal Services Salaries and Wages Employer's Contributions for: F.I.CA Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
OtherCosts Supplies and Materials Repairs and Maintenance Rents (Other than Real Estate) Other Operating E,cpenses Publications and Printing
Travel Equipment
Equipment Purchases Computer Charges
Software Equipment
Equipment Purchases Real Estate Rentals Telecommunications Per Diem, Fees and Contracts
Per Dtem and Fees
JOB TRAINING PARTNERSHIP ACT
Penional Services Salaries and Wages Employer's Contributions For. F.I.C.A Health Insurance
Other Costs Supplies Other Operating Elcpenses
Equipment Equipment Purchases
Computer Charges Software
Telecommunications

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR EDUCATION

TOTAL

286,402.07
5,928.05 15,367.10 15,527.12
435.78 65.38 2,374.00
51,406.26 2,024.84 1,000.00 9,941.83 1,431.00 13,966.77
2,180.34
1,654.30
2,705.30 250.00
4,191.98
2,780.00
$ _ _ _4_19~,63~2-~12~

$

22,106.06

225.79 237.28

1,486.79 55.85

1,020.15

7,229.03 953.87

33,314.82

286,402.07
5,928.05 15,367.10 15,527.12
435.78 65.38 2,374.00
51,406.26 2,024.84 1,000.00 9,941.83 1,431.00
13,966.77
2,180.34
1,654.30
2,705.30 250.00
4,191.98
2,780.00
$ --~4~19~,63_2_.1~2

$

22,106.06

225.79 237.28

1,486.79 55.85

1,020.15

7,229.03 953.87

33,314.82

See accompanying notes and Independent Acccunlant's Combined Report on Review of Financial Statements and Supplementary lnfonnation.
- 36 -

NORTH GEORGIA TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30 1995

EXHIBIT"J"

EXPENDITURES
EQUIPMENT-TECHNICAL INSTITUTES
Other Coot Other Operating Expenses
Computer Charges Equipment Equipment Purchases
Equipment Equipment Purchases
REPAIRS AND RENOVATIONS
OtherCoot Repairs and Maintenance Other Operating Expenses
Tolal Expenditures Excess of Funds Available over Expenditures

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

'.B" LOTTERY FOR EDUCATION

TOTAL

132.99 $
12,192.82 141,650.88
$---=153=,976.69 $

132.99
12,192.82 141,650.88 153,976.69

6,952,387.27 $ 13,171.76

339,370.23 $ 531.96
339,902.19 $
493,878.88 $ 0.00

339,370.23 531.96
339,902.19
7,446,266.15 13,171.76

======= 6,965,559.03 $

493,878.88 $

7,459,437.91

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 37 -

NORTH GEORGIA TECHNICAi INSTITUTE COMBINING STATEMENT Of CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS
YEAR ENDED JUNE 30 1995

EXHIBIT"K"

fUt:!P Berry, R. Roger, Scholarship Funds
Clan,y, WIiiiam C., Scholarship Fund Federal Supplemental Educational
Opportunity Grants Fund ~ Electrification Council
Educational Loan Fund HOPEScholarshpProgram
Knittle Scholarship Fund Mount Vernon Mills Scholarship Fund
Pell Grant Program Private Scholarship Fund Student Activities Fund

ASSETS/ LIABILITIES JULY1, 1994

$

300.00

2.10 $

ADDITIONS

DEDUCTIONS

ASSETS/ LIABILITIES JUNE 30, 1995

$

300.00

TT.94 $

78.46

1.58

0.00

32,479.00

32,479.00

0.00

11,440.74 0.00 0.00
100.00 0.00
74.90 53,915.03

103.37 592,808.75
215.00 200.00 357,782.00
41.14 27,746.29

592,808.75 215.00
357,782.00 61.54
31,698.42

11,544.11 0.00 0.00
300.00 0.00
54.50 49,962.90

$

65832.n $

1 011 453.49 $

1 015,123.17 $

62163.09

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-38-

NORTH GEORGIA TECHNICAL INSTITUTE CASH AND CASH EQUIVALENTS JUNE30 1995
NONINTEREST BEARING ACCOUNTS Habersham Bank, Comelia,~ia
INTEREST BEARING ACCOUNTS Community Bank and Trust, Comelia,~ia Money Market Account Habersham Bank, Ccmelia,~ia Money Market Accounts
OTHER Cashon Hand Petty Cash

SCHEDULE 1
414,839.49 3,504.11
49,313.69 2.000.00 $ ===469='=65=7=.29=

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-39-

NORTH GEORGIA TECHNICAL IHSIIIVIE
INVESTMENTS JUNE:,O 1995

SCHEDULE "Z'

NONEXPENQABLE IRVSI fUNQ
Sa~ing, Lenora M., Scholarship Fund U.S. Treasury Sacurilies 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 $ August 31, 1998
$

15,000.00 20,000.00
35000.00

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-40-

NORTH GEORGIA TECHNICAL INSTITUTE SCHEDULE OF FEDERAL REVENUES YEAR ENDED JUNE 30 1995

BUDGET FUND
Appalachian Regional Commission Appalachian Regional Development Direct
Education, U. S. Department of Adult Education - S- 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
Tech-Prep Education Through Habersham County Board of Education
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
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

CFDA NUMBER
23.001
84.002 84.033 84.048 84.243
93.561
17.250 17.250

SCHEDULE"3"

AMOUNT

$

29,497.48

159,757.08 80,597.00
343,875.18 35,000.00

28,737.85

33,314.82 21,444.41
732,223.82

See accompanying notes and Independent Accountant's Combined Report on Review of Financial S-ments and Supplementary Information.
- 41 -

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

NORTH GEORGIA TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1995

STATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR QUESTIONED COSTS

The status offindings disclosed in the review report for the year ended June 30, 1994, is summarized below:

Audit Control Number

Status ofFindings

838-93-07 838-94-01 838-94-02 838-94-03 838-94-04

Corrective Action Implemented See Audit Control Number 838-95-01 See Audit Control Number 838-95-02 Corrective Action Implemented Corrective Action Implemented

PRIOR YEAR/CURRENT YEAR

REVENUES/RECEIVABLES/RECEIPTS Inadequate Accounting Control Procedures Subsidiary Accounts Receivable Listing for Tuition and Fees Financial Statements Audit Control Number 838-95-01

The review report for the year ended June 30, 1994, 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 838-95-02

The review report for the year ended June 30, 1994, disclosed that North Georgia Technical Institute maintains a student loan program funded by the Georgia Electrification Council. As of June 30, 1995, this fund had a cash balance of$3,504.11 and student notes receivable of$8,040.00 that were included on the Combined Balance Sheet (Statutory Basis) of the Institute. The student notes receivable, totaling $8,040.00, are in
default.

NORTH GEORGIA TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1995
PRIOR YEAR/CURRENT YEAR
GENERAL LEDGER Agency Funds - Inadequate Accounting Records Financial Statements Audit Control Number 838-95-02
The review report for the year ended June 30, 1994, 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 ofSI0,000.00 less a deceased student's loan of$500.00 to the Council. As ofthe date of this report, a final disposition of the principal balance had not been made.