North Georgia Technical College, Clarkesville, Georgia, independent accountant's report on applying agreed-upon procedures for fiscal year ended June 30, 2010

NORTH GEORGIA TECHNICAL COLLEGE
CLARKESVILLE, GEORGIA
INDEPENDENT ACCOUNTANT'S
REPORT ON APPLYING AGREED-
UPON PROCEDURES
FOR FISCAL YEAR ENDED
JUNE 30,2010

- - A_______. Georgia Department of audits and Accounts
/ ,, A ,I\. ( 1ILlfij Russell W.' Hinton
I State Auditor

1

NORTH GEORGIA TECHNICAL COLLEGE - TABLE OF CONTENTS -
INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES EXHIBITS
A SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT B STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING
SOURCE COMPARED TO BUDGET

RUSSELLW. HMTON
STATE AUDITOR
(404) 656-2174

DEPARTMEONFTAUDITASND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
November 17,2010

Members of the State Board of Technical and Adult Education Members of the Local Board of Directors
and Honorable Steve Dougherty, President North Georgia Technical College
lnde~endenAt ccountant's ReD0t-ton ADDIv~~ARgreed-U~onProcedures
Ladies and Gentlemen:
We have performed the procedures enumerated below, which were agreed to by the Technical College and the System Office (Oversight Unit) of the Technical College System of Georgia, solely to assist you in assessing the accuracy of the annual financial statement information reported to the System Office by the Technical College for inclusion in the State of Georgia's CbmprehensiveAnnual Financial Report (CAFR) and SingleAudit RepotZ and to assist you in assessing the accuracy of budget basis information provided in the Summary Budget Cornpanson and Surplus Ana/ysis Report and Statement of Program Revenues and Expenditures by Funding Source Compared to Budget, which is attached as Exhibits A and B, respectively. North Georgia Technical College's management is responsible for the financial information reported to the System Office of the Technical College System of Georgia. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of the parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose.
1. Review selected balance sheet items reported on the annual financial statement worksheets (cash, accounts receivable, accounts payable, deferred revenues, net assets). Confirm that these items have adequate supporting documentation and are properly reconciled to the Technical College's general ledger.
We did not note any exceptions as a result of our procedures.
2. Obtain the Technical College's GAAP basis worksheets for Statement of Net Assets and Statement of Revenues, Expenses and Changes in Net Assets (SRECNA) information that was submitted for inclusion in the State's CAFR and Single Audit. Utilizing test scripts, confirm that financial information presented in these worksheets properly support activity reported in the Technical College's accounting records.
We did not note any exceptions as a result of our procedures.

3. Obtain the Technical College's Statement of Cash Flows submitted for inclusion in the State's CAFR and Single Audit. Utilizing cash flow worksheets, confirm information reported on Statement of Cash Flows.
Cash flows from Capital Financing Activities and Non-Cash Activity were not properly reflected on the Statement of Cash Flows. There is a variance of $7,500.00 noted between the documentation and the amounts reported on the Statement of Cash Flows.
4. Obtain the Technical College's worksheets for financial statement note disclosure information submitted for inclusion in the State's CAFR and Single Audit. Utilizing notes worksheets and other supporting documentation confirm that note disclosures related to Cash, Investments, Accounts Receivable, Capital Assets, Long-Term Debt, Lease Obligations and Retirement Plans have been properly reported.
We did not note any exceptions as a result of our procedures.
5. Review the Technical College's year end GAAP basis journal entries. Obtain documentation for GAAP journal entries and confirm that the entries were posted to the Technical College's annual financial statement worksheets.
We did not note any exceptions as a result of our procedures.
6. Confirm that State Appropriation revenues, receivables and remittances of prior year surplus balances have been properly recorded in the Technical College's financial records. Prior year surplus balances should be netted against State Appropriation revenues in the GAAP basis financial statements; however, prior year surplus balances should be reflected as fund balance adjustments on the Budget basis financial statements.
We did not note any exceptions as a result of our procedures.
7. Obtain listing of write-off requests for accounts receivable less than $3,000.00 for fiscal year 2010. Confirm that these write-off requests have been approved by the State Accounting Officer and have been posted to the Technical College's financial statements.
We did not note any exceptions as a result of our procedures.
8. Verify that the listing of salaries, travel, and professional services reported t o the Department of Audits is in accordance with O.C.G.A. 50-6-27 reconciles to amounts recorded in the Technical College's financial statements.
We did not note any exceptions as a result of our procedures.
9. Review the year end Budgetary Statements including the Summary Budget Comparison and Surplus Ana@s/j Report (Exhibit A) a nd Statement of Program Revenues and Expnditures by Funding Source Compared to Budget (Exhibit B). Confirm that budget information presented in these statements supports activity reported in the Technical College's accounting records, the legal level of budgetary control (funding source within program) was maintained, and determine if any budget overexpenditures exist.
We did not note any exceptions as a result of our procedures.

10. Obtain documentation for Budget basis reserves reported by the Technical College on the Summary Budget Comparison and Surplus Analysis Report (Exhibit A). Confirm that the reserves are properly documented, valid and appropriate.

We did not note any exceptions as a result of our procedures.

11.Review the H.O.P.E. Scholarship Program reconciliation between the Technical College and the Georgia Student Finance Commission. Confirm that information reported to the Georgia Student Finance Commission has been reconciled with H.O.P.E. Scholarship activity reported on the Technical College's financial records.

We did not note any exceptions as a result of our procedures.

12. Review the Schedule of Expenditures of Federal Awards information submitted by the Technical College for inclusion in the Statewide Single Audit. Confirm that the information is properly presented and supported by the Technical College's accounting records.

We did not note any exceptions as a result of our procedures.

13. Review capital asset records to ensure that (1) subsidiary ledgers are appropriately reconciled to the ledgers, (2) capitalization thresholds are being properly followed, and (3) a complete annual physical equipment inventory is being conducted and that issues noted during the physical inventory are being properly addressed by management.

We did not note any exceptions as a result of our procedures.

14. Review bank reconciliations during the year under review to ensure that management is preparing them timely and that reconciling items are being addressed by management timely and in an appropriate manner.

Bank reconciliations were not reconciled in a timely manner by management.

These agreed-upon procedures do not constitute an audit of the financial statements or any part thereof, the objective of which is to express an opinion on the financial statements or a part thereof. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

This report is intended solely for the information and use of the specified users listed above and is not intended to be and should not be used by anyone other than these specified parties.

Respectfully submitted,

.-

~ u d s e lWl . Hinton, CPA, CGFM State Auditor

EXH IBlTS

NORTH GEORGIA TECHNICAL COLLEGE SUMMARY BUDGET COMPARISONAND SURPLUS ANALYSIS REPORT
YEAR ENDED JUNE 30.2010

RNENUES
State Appropriation State General Funds
Federal Funds Other Funds
Total Revenues
CARRY-OVER FROM PRIOR YEAR
Transfer from Resewed Fund Balance
Total Funds Ava~lable
EXPENDITURES
Aduk Literacy EcOnOmlC Development Techn~caEl ducation
Total Expenditures
Excessof FundsAvailable over Expenditures
FUND BALANCEJULY 1
Reserved Unreserved
ADJUSTMENTS
Prior Year Payables/Expenditures Prior Year Rece~vables/Revenues UnreservedFund Balance (Surplus)Returned
to TechnicalCollege System of Georgia Year Ended June 30.2009
Prior Year Reserved Fund Balance Included In Funds Available
FUND BALANCEJUNE 3 0
SUMMARY OF FUND BALANCE
Reserved Sales and Servlces Llve Work Projects Continuing Education Technology Fees Inventories Tuition
Total Reserved
Unreserved Surplus
Total Fund Balance

BUDGET

ACTUAL

VARIANCE -
FAVORABLE (UNFAVORABLE)

Adult Limracy State Appropnatlon state ~ e n e r aFl unas Federal Funds Dther Funds
Total Adult Lltaracy
Economic Dsvsloprnsnt Other Funds
T e c h n ~ mEl ducabon State Appropnatlon State General Funds Federal Funds Amerlcan Recavely and Reinvestment Aotaf 2 0 0 9 Federal Stablllzatlon Funds Other Federal Stlrnulus Other Federal Funds other Funds
Total T ~ h n l c sEl ducatton
Grand Totsls - All Programs

NORTH GEORGIATECHNICAL COLLEGE STATEMENTOF PROGRAM REVENUESANDEXPENDITURES BY FUNDING SOURCE COMPAREDTOBUDGl3
YEAR ENDEDJUNE30 2 0 1 0

Orlglnsl Aporopllat10n

Flnal Budget

CurrentYear Revenues

Funds Avs~lableCompared to Budget

Prlor Year Cawover

Total Funds Avallable

Varlance Posltlve (Negnve)

Expenditures Compared to Budget

vanan-

~ffiltlve

Actual

(Negative)

ktual Funds~ v a ~ l a b l e
over/[under) Expendnuras

Prlor Perlcd Adjustments

Other Adlustrnenm

Program Fund
Balances

Tran~fer~

Program Fund Balances

Resew

Surplus

Total Fund Balance