STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS 
MANAGEMENT REPORT NORTH GEORGIA TECHNICAL COLLEGE 
CLARKESVILLE, GEORGIA 
AN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA YEAR ENDED JUNE 30, 2008 Russell W. Hinton State Auditor 
 
 NORTH GEORGIA TECHNICAL COLLEGE - TABLE OF CONTENTS - 
 
SECTION I 
 
FINANCIAL 
 
LETTER OF TRANSMITTAL 
 
SELECTED FINANCIAL INFORMATION 
 
EXHIBITS 
 
A STATEMENT OF NET ASSETS - (GAAP BASIS) 
 
2 
 
B STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - 
 
(GAAP BASIS) 
 
3 
 
C STATEMENT OF CASH FLOWS - (GAAP BASIS) 
 
5 
 
D SELECTED FINANCIAL NOTES 
 
6 
 
SUPPLEMENTARY INFORMATION 
 
SCHEDULES 
 
1 BALANCE SHEET- (STATUTORY BASIS)-BUDGET FUND 
 
18 
 
2 SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT 
 
(STATUTORY BASIS) BUDGET FUND 
 
19 
 
3 STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING 
 
SOURCE COMPARED TO BUDGET 
 
(STATUTORY BASIS) BUDGET FUND 
 
20 
 
4 RECONCILIATION OF SALARIES AND TRAVEL 
 
23 
 
SECTION II FINDINGS, QUESTIONED COSTS AND OTHER ITEMS SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS 
 
 SECTION I FINANCIAL 
 
 Russell W. Hinton 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 
November 12, 2008 
 
Honorable Sonny Perdue, Governor Members ofthe General Assembly of Georgia Members ofthe State Board of Technical and Adult Education Members ofthe Local Board of Directors 
and Honorable Steve Dougherty, President North Georgia Technical College 
Ladies and Gentlemen: 
As part ofour audit ofthe basic financial statements ofthe State ofGeorgia presented in the State of Georgia Comprehensive Annual Financial Report and the issuance of a State of Georgia Single Audit Report pursuant to the Single Audit Act Amendments, as of and for the year ended June 30, 2008, we have performed certain audit procedures at North Georgia Technical College. Accordingly, the financial statements and compliance activities ofNorth Georgia Technical College were examined to the extent considered necessary in order to express an opinion as to the fair presentation ofthe financial statements contained in the foregoing documents and to issue reports on compliance and internal control as required by the Single Audit Act Amendments of 1996. 
This Management Report contains information pertinent to the financial and compliance activities of North Georgia Technical College as ofand for the year ended June 30, 2008. Information contained in this report is a by-product of our audit ofthe basic financial statements ofthe State ofGeorgia and is the representation ofmanagement. Accordingly, we do not express an opinion or any other form of assurance on it. The particular information provided which includes a section on findings and other items reported in accordance with Commission on Colleges regulation 2.11.1, is enumerated in the Table of Contents. 
 
 This report is intended solely for the information and use of management of North Georgia Technical College, members of the Local Board of Directors, and the Southern Association of Colleges and Schools - Commission on Colleges and is not intended to be and should not be used by anyone other than these specified parties. 
Respectfully submitted, 
 
RWH:as 
 
~l<l.~ 
Russell W. Hinton, CPA, CGFM State Auditor 
 
 SELECTED FINANCIAL INFORMATION -I- 
 
 NORTH GEORGIA TECHNICAL COLLEGE STATEMENT OF NET ASSETS - (GAAP BASIS) 
JUNE 30, 2008 
ASSETS 
Current Assets Cash and Cash Equivalents Accounts Receivable Federal Financial Assistance Other Prepaid Items Inventories 
Total Current Assets 
Noncurrent Assets Investments Capital Assets, Net 
Total Noncurrent Assets 
Total Assets 
LIABILITIES 
Current Liabilities Salaries Payable Accounts Payable Deferred Revenue Funds Held for Others Compensated Absences 
Total Current Liabilities 
Noncurrent Liabilities Compensated Absences 
Total Liabilities 
NET ASSETS 
Invested in Capital Assets, Net of Related Debt Restricted 
Nonexpendable Unrestricted 
Total Net Assets 
 
EXHIBIT "A" 
 
$ 
 
231,715.98 
 
288,619.43 209,402.64 
14,887.88 467,145.83 
 
$ 
 
1,211,771.76 
 
$ 
 
35,461.20 
 
32,183,597.60 
 
$ 
 
32,219,058.80 
 
$ 
 
33,430,830.56 
 
$ 
 
16,157.55 
 
321,044.66 
 
28,942.79 
 
248,672.82 
 
420,505.42 
 
$ 
 
1,035,323.24 
 
455,547.53 
 
$ 
 
1,490,870.77 
 
$ 
 
32,183,597.60 
 
35,461.20 -279,099.01 
 
$ 
 
31,939,959.79 
 
-2- 
 
 NORTH GEORGIA TECHNICAL COLLEGE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - (GAAP BASIS) 
YEAR ENDED JUNE 30, 2008 
 
EXHIBIT"B" 
 
OPERATING REVENUES 
Student Tuition and Fees Less: Scholarship Allowances 
Grants and Contracts Federal 
Rents and Royalties Sales and Services Other Operating Revenues 
Total Operating Revenues 
OPERATING EXPENSES 
Salaries Benefits Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation 
Total Operating Expenses 
Operating Income (Loss) 
NONOPERATING REVENUES (EXPENSES) 
State Appropriations Grants and Contracts 
Federal State Local Gifts Interest and Other Investment Income Other Nonoperating Expenses 
Net Nonoperating Revenues 
Income (Loss) Before Other Revenues, Expenses, Gains, or Losses 
Capital Grants and Gifts State Nongovernmental 
Total Other Revenues, Expenses, Gains, or Losses 
Increase (Decrease) in Net Assets 
Net Assets - Beginning of Year 
Net Assets - End of Year 
 
$ 3,049,885.72 -233,552.78 
2,093,971.85 197,687.14 
2,314,059.66 26,284.05 
$ 7,448,335.64 
 
$ 9,111,633.66 2,925,278.58 131,554.59 1,771,953.07 1, 182,453.86 4,487,558.86 1,411,334.92 
$ 21,021,767.54 
$ -13,573,431.90 
 
$ 10,737,111.33 
 
1,127,122.10 4,364.50 
55,173.79 1,280,053.52 
30,330.39 -358,720.84 
 
$ 12,875,434.79 
 
$ 
 
-697,997.11 
 
$ 
 
661,553.22 
 
10,875.21 
 
$ 
 
672,428.43 
 
$ 
 
-25,568.68 
 
31,965,528.47 
 
$ 31,939,959.79 
 
-3- 
 
 (This page left intentionally blank) 
 
 NORTH GEORGIA TECHNICAL COLLEGE STATEMENT OF CASH FLOWS - (GAAP BASIS) 
YEAR ENDED JUNE 30, 2008 
CASH FLOWS FROM OPERATING ACTIVITIES Tuition and Fees Grants and Contracts Sales and Services of Educational Departments Payments to Suppliers Payments to Employees Payments for Scholarships and Fellowships Other Receipts (Payments) 
Net Cash Provided (Used) by Operating Activities 
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES State Appropriations Agency Funds Transactions Gifts and Grants Received for Other than Capital Purposes Other Nonoperating Receipts 
Net Cash Flows Provided (Used) by Noncapital Financing Activities 
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchases of Capital Assets 
CASH FLOWS FROM INVESTING ACTIVITIES Earnings on Investments 
Net Increase (Decrease) in Cash 
Cash and Cash Equivalents - Beginning of Year 
Cash and Cash Equivalents - End of Year 
RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: 
Operating Income (Loss) Adjustments to Reconcile Operating Income to Net Cash 
Provided (Used) by Operating Activities Depreciation Expense Change in Assets and Liabilities: Receivables, Net Inventories Prepaid Items Accounts Payable Salaries Payable Deferred Revenue Compensated Absences 
Net Cash Provided (Used) by Operating Activities 
NONCASH ACTIVITY Change in Fair Value of Investments Recognized as a Component of Interest Income Gift of Capital Assets Reducing Proceeds of Capital Grants and Gifts 
-5- 
 
EXHIBIT"C" 
 
$ 2,796,457.54 2,274,120.87 2,529,665.52 -8, 768,885.88 -9,062, 152.93 -1,771,953.07 223,971.19 
$ -11,778,776.76 
 
$ 10,737,611.33 735.72 
2,261,272.84 -358,720.84 
$ 12,640,899.05 
 
$ 
 
-875,519.20 
 
$ 
 
29,120.63 
 
$ 
 
15,723.72 
 
215,992.26 
 
$ ===23=1..,,7=1=5.=98= 
 
$ -13,573,431.90 
1,411,334.92 371,398.48 -167,220.08 -5,174.88 132,142.63 -21,474.39 4,481.00 69,167.46 
$ -11,778,776.76 
$====4=6=1.=20= $===67=2=,4=2=8.=43= 
 
 NORTH GEORGIA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2008 
 
EXHIBIT "D" 
 
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
REPORTING ENTITY North Georgia Technical College is one of thirty-three (33) State supported member colleges of postsecondary education in Georgia which comprise the Georgia Department ofTechnical and Adult Education, an organizational unit ofthe State ofGeorgia. The accompanying financial statements reflect the operations of North Georgia Technical College as a separate reporting entity. 
The Technical College's Local Board of Directors is composed of eight (8) members serving staggered three-year terms who are appointed by the State Board ofTechnical and Adult Education. Appropriation of State funds is made to the Georgia Department of Technical and Adult Education by the General Assembly of Georgia. The Department's Administrative Central Office determines the amount of State appropriations to be received by North Georgia Technical College. The Technical College does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, North Georgia Technical College is considered an organizational unit of the Georgia Department of Technical and Adult Education for financial reporting purposes because ofthe significance ofits legal, operational, and financial relationships as defined in Section 2100 ofthe Governmental Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial Reporting Standards. 
NET ASSETS The Technical College's net assets are classified as follows: 
Invested in capital assets, net ofrelated debt: This amount represents the Technical College's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. 
Restricted net assets - nonexpendable: Nonexpendable restricted net assets consist of funds in which donors or other outside sources have stipulated, as a condition ofthe gift instrument, that the principal is to be maintained inviolate and in perpetuity, and invested for the purpose ofproducing present and future income, which may either be expended or added to principal. The Technical College may accumulate as much of the annual net income of an institutional fund as is prudent under the standard established by Code Section 44-15-7 of Annotated Code of Georgia. 
Unrestricted net assets: Unrestricted net assets represent available resources derived from student tuition and fees, state appropriations, and sales and services of educational departments. These resources will be used for transactions relating to the educational and general operations of the Technical College, and may be used at the discretion of the governing board to meet subsequent fiscal year expenses for those purposes, except for unexpended state appropriations (surplus) of $3,097.51. Unexpended state appropriations must be refunded to the Department ofTechnical and Adult Education for remittance to the Office of Treasury and Fiscal Services. 
 
-6- 
 
 NORTH GEORGIA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2008 
 
EXHIBIT "D" 
 
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
NET ASSETS When an expense is incurred that can be paid using either restricted or unrestricted resources, the Technical College's policy is to first apply the expense towards unrestricted resources, and then towards restricted resources. 
NOTE 2: DEPOSITS AND INVESTMENTS 
DEPOSITS The custodial credit risk for deposits is the risk that in the event of a bank failure, the Technical College's deposits may not be recovered. Funds belonging to the State of Georgia (and thus the Technical College) cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu ofa surety bond, the depository may pledge as collateral any one or more of the following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59: 
1. Bonds, bills, certificates of indebtedness, notes, or other direct obligations of the United States or of the State of Georgia. 
2. Bonds, bills, certificates of indebtedness, notes, or other obligations of the counties or municipalities ofthe 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 ofthe bonds for this purpose. 
4. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia. 
5. Bonds, bills, certificates of indebtedness, notes, or other obligations of a subsidiary corporation ofthe United States government, which are fully guaranteed by the United States government both as to principal and interest, or 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 ofaccounts 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 allows agencies ofthe State ofGeorgia (and thus North Georgia Technical College), the option of exempting demand deposits from the collateral requirements. 
At June 30, 2008, the carrying value of deposits was $226,740.98 and the bank balance was $679,904.97. Of the Technical College's deposits, $529,818.42 were uninsured. All of these 
-7- 
 
 NORTH GEORGIA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2008 
 
EXHIBIT"D" 
 
NOTE 2: DEPOSITS AND INVESTMENTS 
 
DEPOSITS uninsured deposits were collateralized with securities held by the financial institution, by its trust department or agency, but not in the Technical College's name. 
 
INVESTMENTS North Georgia Technical College maintains an investment policy which fosters sound and prudent judgment in the management of assets to ensure safety of capital consistent with the fiduciary responsibility each institution has to the citizens ofGeorgia and which conforms with Department of Technical and Adult Education investment policy. All investments are consistent with donor intent, Department ofTechnical and Adult Education policy, and applicable Federal and state laws. Under Georgia Code Sections 50-17-59 and 50-17-63, investment ofstate funds is restricted to direct U. S. government obligations and obligations ofselected U.S. government agencies. Private endowment funds and other non-state fund sources are not subject to this restriction. 
 
The North Georgia Technical College's investments at June 30, 2008 are presented below. All investments are presented by investment type and debt securities are presented by maturity. 
 
Investment Type 
Debt Securities U.S. Treasuries 
 
Fair Value 
 
Less Than 1 Year 
 
Investment Maturity 
 
I -5 
 
6-10 
 
Years 
 
Years 
 
More than 10 Years 
 
$ 35 46] ,2Q $ 2Q,Q86.2Q $ 15,375 QQ $ 
 
QQQ $ 
 
Q,QQ 
 
Interest Rate Risk Interest rate risk is the risk that changes in interest rates ofdebt investments will adversely affect the fair value of an investment. The Technical College does not have a formal policy for managing interest rate risk. 
 
Custodial Credit Risk Custodial credit risk for investments is the risk that, in the event ofa failure ofthe counterparty to a transaction, the Technical College will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. The Technical College does not have a formal policy for managing custodial credit risk for investments. 
 
At June 30, 2008, $35,461.20 ofthe Technical College's applicable investments were uninsured and held by the investment's counterparty in the Technical College's name. 
 
NOTE 3: ACCOUNTS RECEIVABLE 
 
Accounts receivable at June 30, 2008, consists of the following: 
 
-8- 
 
 NORTH GEORGIA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2008 
 
EXHIBIT "D" 
 
NOTE 3: ACCOUNTS RECEIVABLE 
 
Student Tuition and Fees Federal, State and Private Funds Other 
Total Accounts Receivable 
 
$ 24,356.40 390,019.89 83,645.78 
$ 498,022.07 
 
NOTE 4: CAPITAL ASSETS 
 
Following are the changes in capital assets for the year ended June 30, 2008: 
 
Balance Julx 1, 2007 
 
Additions 
 
Reductions 
 
Balance June 30, 2008 
 
Capital Assets, Not Being Depreciated: 
 
Land and Land Improvements 
 
$ 560,722.00 $ 
 
0.00 $ 
 
0.00 $ 560,722.00 
 
Capital Assets, Being Depreciated: Building and Building Improvements Improvements Other Than Buildings Equipment Library Collections 
 
$ 33,144,664.78 1,528,318.00 $ 6,100,947.93 722,006.76 
 
1,032,000.00 459,286.24 $ 56,661.39 
 
$ 33,144,664.78 
 
2,560,318.00 
 
421,445.10 6,138,789.07 
 
53,121.84 
 
725,546.31 
 
$ 41,495,937.47 $ 1,547,947.63 $ 474 566.94 $ 42,569,318.16 
 
Less: Accumulated Depreciation: Buildings and Building Improvements $ Improvements Other Than Buildings Equipment Library Collections 
 
3,242,989.15 $ 1,470,329.06 
4,827,084.44 469,271.93 
 
844,858.43 83,788.99 
422,119.42 $ 60,568.08 
 
$ 
421,445.10 53,121.84 
 
4,087,847.58 1,554,118.05 4,827,758.76 
476,718.17 
 
$ 10,009,674.58 $ 1,411,334.92 $ 474 566.94 $ 10,946,442.56 
 
Total Capital Assets, Being Depreciated, 
 
Net 
 
$ 31,486,262.89 $ 136 612.71 $ 
 
0.00 $ 31,622,875.60 
 
Capital Assets, Net 
 
$ 32,046,984.89 $ 136,612.71 $ 
 
0.00 $ 32,183,597 60 
 
NOTE 5: DEFERRED REVENUE 
 
Deferred revenue at June 30, 2008, consists of the following: 
 
Prepaid Tuition and Fees Federal Grants and Contracts 
 
$ 17,916.00 11,026.79 
 
Totals 
 
$ 28,942.79 
 
NOTE 6: LONG-TERM LIABILITIES 
 
Long-Term liability activity for the year ended June 30, 2008 was as follows: 
 
-9- 
 
 NORTH GEORGIA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2008 
 
EXHIBIT "D" 
 
NOTE 6: LONG-TERM LIABILITIES 
 
Other Liabilities Compensated Absences 
 
Balance July I, 2007 
 
Additions 
 
Reductions 
 
Balance June 30, 2008 
 
Current Portion 
 
$ 806 885 49 $ 578.957.17 $ 509 789 71 $ 876.052.95 $ 420 505 42 
 
NOTE 7: NET ASSETS 
 
Changes in Net Asset activity for the year ended June 30, 2008 was as follows: 
 
Invested in Capital Assets Net of Related Debt 
Restricted Nonexpendable Net Assets 
Unrestricted Net Assets 
Total Net Assets 
 
Balance July 1, 2007 
 
Additions 
 
Reductions 
 
Balance June 30, 2008 
 
$32,046,984.89 $ 136,612.71 
 
$32,183,597.60 
 
34,251.44 
 
1,209.76 
 
35,461.20 
 
-115 707.86 20,323,770.43 $20,487,161.58 
 
-279,099.01 
 
$ 31 965,528.47 $20,461,592.90 $ 20 487 161.58 $ 31939959.79 
 
NOTE 8: LEASE OBLIGATIONS 
 
OPERATING LEASES North Georgia Technical College has entered into certain agreements to lease office space and 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 of the original term of the lease, the Technical College has the option of renewing the lease on a year-to-year basis. Amounts are included only for multi-year leases and for cancelable leases for which an option to renew for the subsequent fiscal year has been exercised. 
 
Expenses for rental ofoffice space and equipment under operating leases for the year ended June 30, 2008, totaled $131,620.76. 
 
NOTE 9: RETIREMENT PLANS 
 
TEACHERS RETIREMENT SYSTEM OF GEORGIA 
 
Plan Description North Georgia Technical College participates in the Teachers Retirement System ofGeorgia (TRS), a cost-sharing multiple-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose ofproviding retirement allowances and other benefits for teachers ofthe State of Georgia. TRS provides service retirement, disability retirement, and survivor's benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. 
 
- 10 - 
 
 NORTH GEORGIA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2008 
 
EXHIBIT "D" 
 
NOTE 9: RETIREMENT PLANS 
 
TEACHERS RETIREMENT SYSTEM OF GEORGIA 
 
Funding Policy Employees of North Georgia Technical College who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. North Georgia Technical College makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. For fiscal year 2008, the employer contribution rate was 9.28% for covered employees. Employer contributions for the current fiscal year and the preceding two fiscal years are as follows: 
 
Fiscal Year 
 
Percentage Contributed 
 
Required Contribution 
 
2008 2007 2006 
 
100% 100% 100% 
 
$ 426,890.01 $ 403,307.96 $ 375,272.74 
 
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 
 
Plan Description North Georgia Technical College 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 of providing retirement allowances for employees of the State of Georgia. 
 
Retirement benefits paid to members are based upon a formula which considers the monthly average ofthe member's highest twenty-four consecutive calendar months of salary, the number ofyears 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 ofthe 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. 
 
In addition, the ERS Board of Trustees created the Supplemental Retirement Benefit Plan (SRBP) effective January 1, 1998. The SRBP was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of ERS. The purpose ofSRBP is to provide retirement benefits to employees covered by ERS whose benefits are otherwise limited by IRC 415. 
 
Funding Policy As established by State statute, all full-time employees of the State of Georgia and its political subdivisions, who are not members ofother state retirement systems, are eligible to participate in the ERS. Both employer and employee contributions are established by State statute. The Technical 
 
- 11 - 
 
 NORTH GEORGIA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2008 
 
EXHIBIT"D" 
 
NOTE 9: RETIREMENT PLANS 
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 
Funding Policy College's payroll for the year ended June 30, 2008, for employees covered by ERS was $3,001,606.52. The Technical College's total payroll for all employees was $9,111,633.66. 
Under the old plan, member contributions consist of 6.5% of annual compensation. Of these member contributions, the employee pays the first 1.5% and the Technical College pays the remainder on behalf ofthe employee. Under the new plan, member contributions consist solely of 1.5% of annual compensation paid by employee. The Technical College also is required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation. For the year ended June 30, 2008, the ERS employer contribution rate for the Technical College amounted to 10.41% ofcovered payroll. North Georgia Technical College did not have any employees covered by the old plan referred to above. Employer contributions are also made on amounts paid for accumulated leave to retiring employees. 
Total contributions to the plan made during fiscal year 2008 amounted to $350,549.97, of which $312,956.86 was made by the Technical College and $37,593.11 was made by employees. These contributions met the requirements ofthe plan. 
GEORGIA DEFINED CONTRIBUTION PLAN 
Plan Description North Georgia Technical College participates in the Georgia Defined Contribution Plan (GDCP) which is a single-employer defined contribution plan established by the General Assembly of Georgia 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 of the Employees' Retirement System of Georgia. 
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 of Trustees. Ifa member has less than $3,500.00 credited to his/her account, the Board ofTrustees 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. Benefit provisions are established by State statute. 
The Employees' Retirement System of Georgia issues a financial report each fiscal year which may be obtained through ERS. 
 
- 12 - 
 
 NORTH GEORGIA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2008 
 
EXHIBIT "D" 
 
NOTE 9: RETIREMENT PLANS 
GEORGIA DEFINED CONTRIBUTION PLAN 
Contributions and Vesting Member contributions are seven and one-halfpercent (7.5%) ofgross salary. There are no employer contributions. Contribution rates are established by State statute. Earnings are credited to each member's account in a manner established by the Board of Trustees. Upon termination of employment, the amount of the member's account is refundable upon request by the member. The Technical College's payroll for the year ended June 30, 2008, for employees covered by GDCP was $745,357.38. The Technical College's total payroll for all employees was $9,111,633.66. 
Total contributions made by employees during fiscal year 2008 amounted to $55,910.80 which represents 7.5% of covered payroll. These contributions met the requirements of the plan. 
NOTE 10: POSTEMPLOYMENT BENEFITS 
The Technical College participates in the Georgia Retiree Health Benefit Fund ("GRHBF") which is a cost-sharing multiple-employer defined benefit postemployment healthcare plan that covers retired employees of the State of Georgia. GRHBF provides health insurance benefits to eligible retirees and their qualified beneficiaries. 
Pursuant to Title 45, Chapter 18 of O.C.G.A., the authority to establish and amend the benefit provisions of the plan is assigned to the Board of Community Health ("Board"). Financial statements and required supplementary information for GRHBF are included in the publicly available financial report of the Department of Community Health. 
The Technical College contributes to the fund based upon amounts recommended by the Board and set forth in the Appropriations Act. This contribution rate is established to fund both the active and retired employee components of the health insurance plan based on projected pay-as-you-go financing requirements. The combined rate for the active and retiree components ofthe plan (payas-you-go basis) for the fiscal year ended June 30, 2008, was 18.534% of covered payroll. An additional contribution of4.309% ofcovered payroll was required by the Board for fiscal year 2008; eleven months ofthis additional contribution will be deposited into the OPEB fund to prefund retiree benefits (such additional contribution amounts are determined annually). The Technical College's contribution to the health insurance plan for the fiscal year ended June 30, 2008, was $1,766,749.32, which equaled the required contribution. 
The Technical College also participates in a program of group term life insurance for retired and vested inactive eligible members of various retirement systems. The State Employees' Assurance Department ("SEAD-OPEB") is a single-employer defined benefit postemployment plan. 
 
- 13 - 
 
 NORTH GEORGIA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2008 
 
EXHIBIT"D" 
 
NOTE 10: POSTEMPLOYMENT BENEFITS 
Pursuant to Title 47 ofthe Official Code ofGeorgia Annotated, the authority to establish and amend the benefit provisions of the plan is assigned to the Boards of Trustees of the Employees' and Judicial Retirement Systems. Financial statements and required supplementary information for SEAD-OPEB are included in the publicly available financial report of the Employees' Retirement System. 
The Technical College is required to contribute the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters ofGASB Statement 45. The ARC for the year ended June 30, 2008, was zero (0). 
NOTE 11: RISK MANAGEMENT 
Public Entity Risk Pool The Department of Community Health (DCH) administers for the State of Georgia a program of health benefits for the employees of units of government of the State of Georgia, units of county governments, and local education agencies located with the State ofGeorgia. This plan is funded by participants covered in the plan, by employers' contributions paid by the various units ofgovernment participating in the plan, and appropriations made by the General Assembly of Georgia. DCH contracted with United Healthcare to process medical claims. For prescription drug claims, DCH contracted with Express Scripts, Incorporated through December 31, 2007 and contracted with Medco, Incorporated beginning January 1, 2008. All claims are to be processed in accordance with the State Employees' Health Benefit Plan as established by the Department of Community Health. 
Other Risk Management The Department ofAdministrative Services (DOAS) has the responsibility for the State of Georgia ofmaking 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 processes 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 of commercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. The Technical College, 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 various state organizations by DOAS to provide claims servicing and claims payment. 
 
- 14 - 
 
 NORTH GEORGIA TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2008 
 
EXHIBIT "D" 
 
NOTE 12: 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 expenses which are disallowed under grant terms. The amount of expenses which may be disallowed by the grantor cannot be determined at this time although North Georgia Technical College expects such amounts, ifany, to be immaterial to its overall financial position. 
Litigation, claims and assessments filed against North Georgia Technical College (an organizational unit of the Department of Technical and Adult Education), if any, are generally considered to be actions against the State of Georgia. 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, 2008. 
NOTE 13: AFFILIATED ORGANIZATIONS 
The North Georgia Technical College Foundation, Inc., is a legally separate, tax exempt organization whose activities primarily support North Georgia Technical College. This affiliated organization is considered to be a potential component unit of the State of Georgia in accordance with GASB Statement No. 39, Determining Whether Certain Organizations are Component Units. Therefore, the financial statements of this affiliated organization is not included in these financial statements. Copies ofthe financial statements for the affiliated organization may be obtained from North Georgia Technical College. 
 
- 15 - 
 
 (This page left intentionally blank) 
 
 SUPPLEMENTARY INFORMATION - 17 - 
 
 NORTH GEORGIA TECHNICAL COLLEGE BALANCE SHEET (STATUTORY BASIS) 
BUDGET FUND JUNE 30, 2008 
ASSETS 
Accounts Receivable Federal Financial Assistance Other 
Prepaid Expenditures Inventories 
Total Assets 
LIABILITIES AND FUND EQUITY 
Liabilities Cash Overdraft Salaries Payable Accounts Payable Encumbrances Payable Deferred Revenue Funds Held for Others Other Liabilities 
Total Liabilities 
Fund Balances Reserved Federal Financial Assistance Live Works Projects Sales and Services Technology Fees Inventories Unreserved Surplus 
Total Fund Balances 
Total Liabilities and Fund Balances 
 
SCHEDULE "1" 
 
$ 
 
130,429.78 
 
972,578.69 
 
14,887.88 
 
489,056.70 
 
$ ====1=,6=0=6,=95=3=.0=5= 
 
$ 
 
603,890.91 
 
15,666.93 
 
288,557.48 
 
172,769.23 
 
17,665.00 
 
2,849.10 
 
21,982.47 
 
$ 
 
1,123,381.12 
 
$ 
 
11,465.39 
 
84,995.86 
 
121,171.81 
 
39,801.39 
 
223,039.97 
 
3,097.51 
 
$ 
 
483,571.93 
 
$ ====1=,6=0=6=,9=5=3=.0=5= 
 
Statutory Basis financial information was prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. 
- 18 - 
 
 NORTH GEORGIA TECHNICAL COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT (STATUTORY BASIS) 
BUDGET FUND YEAR ENDED JUNE 30, 2008 
 
SCHEDULE "2" 
 
REVENUES 
State Appropriation State General Funds 
Federal Funds Other Funds 
Total Revenues 
CARRY-OVER FROM PRIOR YEAR 
Transfer from Reserved Fund Balance 
Total Funds Available 
EXPENDITURES 
Adult Literacy Economic Development Technical Education 
Total Expenditures 
Excess of Funds Available over Expenditures 
FUND BALANCE JULY 1 
Reserved Unreserved 
ADJUSTMENTS 
Prior Year Payables/Expenditures Refunds to Granters 
Federal Financial Assistance Returned to Georgia Department of Technical and Adult Education Year Ended June 30, 2007 
Prior Year Receivables/Revenues Unreserved Fund Balance (Surplus) Returned 
to Georgia Department of Technical and Adult Education Year Ended June 30, 2007 
Prior Year Reserved Fund Balance Included in Funds Available 
FUND BALANCE JUNE 30 
 
BUDGET 
 
ACTUAL 
 
VARIANCEFAVORABLE (UNFAVORABLE) 
 
$ 10,739,480.00 $ 10,739,445.61 $ 
 
1,307,499.95 
 
1,177,536.40 
 
6,381,655.20 
 
5,678,380.94 
 
$ 18,428,635.15 $ 17,595,362.95 $ 
 
-34.39 -129,963.55 -703 274.26 
-833,272.20 
 
0.00 
 
170 985.92 
 
$ 18,428,635.15 $ 17 766 348.87 $ 
 
170 985.92 -662 286.28 
 
$ 1,009,018.00 $ 
 
996,080.23 $ 
 
235,245.00 
 
159,479.27 
 
17184372.15 
 
16 381 468.23 
 
$ 18,428,635.15 $ 17 537 027.73 $ 
 
$ 
 
0.00 $ 
 
229,321.14 $ 
 
12,937.77 75,765.73 802 903.92 
891 607.42 
229 321.14 
 
367,256.78 2,334.28 
 
4,910.09 
 
-142.49 53,212.33 
 
-2,334.28 -170 985.92 
 
$ 
 
483 571.93 
 
SUMMARY OF FUND BALANCE 
Reserved Federal Financial Assistance Live Works Projects Sales and Services Technology Fees Inventories 
Total Reserved 
Unreserved Surplus 
Total Fund Balance 
Statutory Basis financial information was prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. 
- 19 - 
 
$ 
 
11,465.39 
 
84,995.86 
 
121,171.81 
 
39,801.39 
 
223,039.97 
 
$ 
 
480,474.42 
 
3 097.51 
 
$ 
 
483 571.93 
 
 NORTH GEORGIA TECHNICAL COLLEGE STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING SOURCE COMPARED TO BUDGET 
(STATUTORY BASIS) BUDGET FUND YEAR ENDED JUNE 30, 2008 
 
Adult Literacy State Appropriation State General Funds Federal Funds Other Funds 
Total Adult Literacy 
 
Original Appropriation 
 
Final Budget 
 
Current Year Revenues 
 
Funds Available Comeared to Budget 
 
Prior Year Carry-Over 
 
Total Funds Available 
 
Variance Positive (Negative) 
 
0.00 $ 0.00 0.00 
 
466.210 00 472,971.00 
69 837.00 
 
466,175.61 $ 472,971.00 
56 933.62 
 
0.00 0.00 0.00 
 
466,175.61 $ 472,971.00 
56 933.62 
 
-34.39 0.00 
-12 903.38 
 
$ 
 
0.00 $ 1,009,018.00 $ 
 
996,080.23 $ 
 
0.00 $ 
 
996,080.23 $ -12,937.77 
 
Economic Development Other Funds 
 
$ 
 
0.00 $ 
 
235,245.00 $ 
 
210 170.50 $ 18 536.67 $ 
 
228 707.17 $ 
 
-6 537.83 
 
Technical Education State Appropriation State General Funds Federal Funds Other Funds 
Total Technical Education 
Grand Totals  All Programs 
 
$ 10,273,270,00 $ 10,273,270.00 $ 
 
834,528.95 
 
834,528.95 
 
6 076 573.20 
 
6,076,573.20 
 
10,273,270.00 $ 704,565.40 
5,411,276.82 
 
0.00 $ 0.00 152,449.25 
 
10,273,270.00 $ 704,565.40 
5 563 726.07 
 
0.00 -129,963.55 -512 847.13 
 
$ 17184 372.15 $ 17184 372.15 $ 16,389,112.22 $ 152,449.25 $ 16 541 561.47 $ -642 810.68 
 
$ 17,184,372.15 $ 18,428,635.15 $ 17,595,362.95 $ 170,985.92 $ 17,766,348.87 $ -662,286.28 
 
Actual amounts were prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. 
 
- 20 - 
 
 SCHEDULE "3" 
 
Exeenditures Comeared to Budget 
 
Variance 
 
Positive 
 
Actual 
 
(Negative) 
 
Actual Funds Available 
Over/(Under) Expenditures 
 
Prior Period Adjustments 
 
Other Adjustments 
 
Program Fund 
Balances 
 
Transfers 
 
Program Fund Balances 
 
Reserve 
 
Surplus 
 
Total Fund Balance 
 
$ 
 
466,175.61 $ 
 
34.39 $ 
 
472,971.00 
 
0.00 
 
56 933.62 
 
12,903.38 
 
$ 
 
996,080.23 $ 12,937.77 $ 
 
0.00 $ 0.00 0.00 
0.00 $ 
 
0.00 $ 0.00 0.00 
0.00 $ 
 
0.00 $ 0.00 0.00 
0.00 $ 
 
0.00 $ 0.00 0.00 
0.00 $ 
 
0.00 $ 0.00 0.00 
0.00 $ 
 
0.00 $ 0.00 0.00 
0.00 $ 
 
0.00 $ 
 
0.00 
 
0.00 
 
0.00 
 
0.00 
 
0.00 
 
0.00 $ 
 
0.00 
 
$ 
 
159 479.27 $ 75 765.73 $ 
 
69 227.90 $ 
 
0.00 $ 
 
0.00 $ 69 227.90 $ 
 
0.00 $ 
 
69 227.90 $ 
 
0.00 $ 69 227.90 
 
$ 10,273,270.00 $ 
 
0.00 $ 
 
746,573.43 
 
87,955.52 
 
5,361,624.80 
 
714 948.40 
 
$ 16.381.468.23 $ 802 903.92 $ 
 
0.00 $ -42,008.03 202101.27 
160 093.24 $ 
 
2,990.00 $ 53.451.25 
1 538.68 
 
0.00 $ 22.17 -26,791.28 
 
2,990.00 $ 11,465.39 176 848.67 
 
57 979.93 
 
-26 769.11 $ 191 304.06 $ 
 
0.00 $ 0.00 0.00 
0.00 $ 
 
0.00 $ 11.465.39 176 741.16 
188 206.55 $ 
 
2,990.00 $ 0.00 
107.51 
3 097.51 $ 
 
2,990.00 11.465.39 176 848.67 
191 304.06 
 
$ 17,537,027.73 $ 891,607.42 $ 
 
229,321.14 $ 57,979.93 $ -26.769.11 $ 260,531.96 $ 
 
0.00 $ 257.434.45 $ 
 
3,097.51 $ 260.531.96 
 
Unexpendable Reserves Inventories 
 
223 039.97 483 571.93 
 
-21  
 
 (This page left intentionally blank) 
 
 NORTH GEORGIA TECHNICAL COLLEGE RECONCILIATION OF SALARIES AND TRAVEL 
YEAR ENDED JUNE 30, 2008 
 
SCHEDULE "4" 
 
Totals per Annual Supplement 
Accruals June 30, 2007 June 30, 2008 
Compensated Absences June 30, 2007 June 30, 2008 
Lag Salaries June 30, 2007 June 30, 2008 
Payroll Reimbursements 
Agency Funds 
 
SALARIES 
$ 9,125,649.89 $ 
 
TRAVEL 133,114.49 
 
-37,631.94 16,157.55 
 
-682,857.99 704,828.87 
 
11,103.44 -12,768.85 
-3,728.80 
-9,118.51 
 
-1,559.90 
 
$ 9, 111,633.66 $ ==1=31=,5=5=4=.5=9 
 
- 23 - 
 
 SECTION II FINDINGS, QUESTIONED COSTS AND OTHER ITEMS 
 
 NORTH GEORGIA TECHNICAL COLLEGE SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS 
YEAR ENDED JUNE 30, 2008 
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. OTHER ITEMS (NOTED FOR MANAGEMENT'S CONSIDERATION) No matters were reported.