Review report, state of Georgia, Department of Technical and Adult Education, Administrative Central Office (Oversight Unit), year ended June 30, 1994

GA . A800
.Rl
1-r43j
1443-91+
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET
ATLANTA. GEORGIA 30334

REVIEW REPORT STATE OF GEORGIA DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT) YEAR ENDED JUNE 30, 1994

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)
- TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

FINANCIAL STATEMENTS

A COMBINED BALANCE SHEET (STATUTORY BASIS)

ALL FUND TYPES AND ACCOUNT GROUPS

2

B STATEMENT OF CHANGES IN FUND BALANCE (STATUTORY BASIS)

GOVERNMENTAL FUND TYPE

4

C STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

5

STATEMENTS OF FUNDS AVAILABLE AND EXPENDITURES

COMPARED TO BUDGET

BUDGET FUND

D

"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

10

E

"B" LOTTERY FOR EDUCATION

11

F NOTES TO THE FINANCIAL STATEMENTS

12

SUPPLEMENTARY INFORMATION

G COMBINING BALANCE SHEET (STATUTORY BASIS)

BUDGET FUND

24

H COMBINING STATEMENT OF CHANGES IN FUND BALANCE

(STATUTORY BASIS)

BUDGET FUND

25

I COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

26

J STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

FIDUCIARY FUND TYPE - AGENCY FUNDS

31

SCHEDULES

SCHEDULES OF APPROVED BUDGET

1

"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

32

2

"B" LOTTERY FOR EDUCATION

35

SCHEDULES OF BUDGET TRANSFERS TO OTHER UNITS

3

"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

36

4

"B" LOTTERY FOR EDUCATION

38

5 CASH AND CASH EQUIVALENTS

39

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTR.ATIVE CENTRAL OFFICE (OVERSIGHT UNIT)
- TABLE OF CONTENTS -

Page

SECTION I

FINANCIAL

SUPPLEMENTARY INFORMATION

SCHEDULES

6 SCHEDULE OF GOVERNOR'S EMERGENCY FUND

40

7 SCHEDULE OF FEDERAL REVENUES

41

SCHEDULES OF ALLOTMENTS TO STATE TECHNICAL INSTITUTES

8

"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

42

9

"B" LOTTERY FOR EDUCATION

44

10 ANALYSIS OF PRIOR YEAR'S SURPLUS FUNDS COLLECTED FROM STATE

TECHNICAL INSTITUTES

45

11 RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL

46

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION I FINANCIAL

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

~cpartmcnt nf J\uhits
254 WASHINGTON STREET, S. W. ROOM 214
J\.thmht, @enr_gia 30334-8400
October 21, 1994

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

Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members ofthe State Board of Technical and Adult Education
and Honorable Kenneth H. Breeden, Commissioner Department ofTechnical and Adult Education
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 F) ofthe Administrative Central Office (Oversight Unit) of the Department of Technical and Adult Education as of and for the year ended June 30, 1994, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. As described in Note 1, these financial statements were prepared on a prescribed basis of accounting that demonstrates compliance with the budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. All information included in these financial statements is the representation of the management of the Administrative Central Office (Oversight Unit) of the Department of Technical and Adult Education.
A review consists principally of inquiries of agency 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.
The financial statements referred to above include only the financial activities of the oversight unit of the Department ofTechnical and Adult Education. Financial activities of other organizational units (the various State Technical Institutes) are not included.
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 conformity with the basis ofaccounting 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 conformity with the basis of
94ARL-4X

accounting described in Note 1. The accompanying supplementary information (Exhibits G through J and
Schedules 1 through 11) is presented only for supplementary analysis purposes. Such information has been
subjected to the inquiries and analytical procedures applied in the review ofthe financial statements, and we are not aware ofany material modifications that should be made thereto.
Respectfully submitted,
ff~~~
Claude L. Vickers State Auditor
CLV:cm 94ARL-4X

FINANCIAL STATEMENTS - 1-

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)
COMBINED BALANCE SHEET (STATUTORY BASIS)
ALL FUND TYPES AND ACCOUNT GROUPS
JUNE 30, 1994

EXHIBIT "A" Page 1

GOVERNMENTAL FIDUCIARY FUND TYPE FUND TYPE

BUDGET

AGENCY

ACCOUNT GROUPS

GENERAL FIXED ASSETS

GENERAL LONG-TERM
DEBT

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

ASSETS

Cash and Cash Equivalents

$105,414.79

$ 105,414.79 $ 98,244.18

Accounts Receivable State Appropriation Federal Financial Assistance Other

$13,695,404.32 3,558,963.15 2,389,561.23

$13,695,404.32 $ 2,086,685.54 3,558,963.15 3,104,204.02 2,389,561.23 4,711,785.32

$19,643,928.70

$19,643,928.70$ 9,902,674.88

Prepaid Items

$

0.00

$

0.00 $ 1,500.00

Fixed Assets Equipment

$16,207 ,371.11

$16,207,371.11 $16,162,175.38

Amounts to be Provided for Payment of: Accrued Compensated Absences Capital Lease Coomitments

$450,301.62 $ 450,301.62 $ 348,811.84

7,908.92

7,908.92

16,927.99

$458,210.54 $ 458,210.54$ 365,739.83

Total Assets

$19,643,928.70 $105,414.79 $16,207,371.11 $458,210.54 $36,414,925.14 $26,530,334.27
========== ======= ========= ======== ============= ============

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

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE {OVERSIGHT UNIT)
COMBINED BALANCE SHEET {STATUTORY BASIS) All FUND TYPES AND ACCOUNT GROUPS JUNE 30. 1994

EXHIBIT "A" Page 2

GOVERNMENTAL FIDUCIARY FUND TYPE FUND TYPE

BUDGET

AGENCY

ACCOUNT GROUPS

GENERAL FIXED ASSETS

GENERAL LONG-TERM
DEBT

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

LIABILITIES AND FUND EQUITY

liabi 1i ties Cash Overdraft Accounts Payable Contracts Payable Allotments Due to Other Units Payroll Withholdings Funds Held for Others Canpensated Absences Capital leases

$ 107,497.64 13,008,893.59 1,670,115.27 4,117,905.15
60,780.17 $105,414.79

$ 107,497.64$ 176,251.56

13,008,893.59 6,695,324.85

1,670,115.27 906,545.13

4,117,905.15 1,201,778.02

60,780.17

320.00

105,414.79

98,244.18

$450,301.62 450,301.62 348,811.84

7,908.92

7,908.92

16,927.99

Total Liabilities

$18,965,191.82 $105,414.79

$458,210.54 $19,528,817.15$ 9,444,203.57

Fund Equity Investment in General Fixed Assets Fund Balance Reserved Federal Financial Assistance $ Private Grants Satellite Dish Installation Unreserved Designated Surplus Regular Lottery for Education

18,756.44 0.00
118,320.00
459,935.21 81,725.23

$16,207,371.11

$16,207,371.11 $16,162,175.38

18,756.44 0.00
118,320.00

58,932.81 5.24 0.00

459,935.21 81,725.23

865,017.27 0.00

Total Fund Equity

$ 678,736.88

$16,207,371.11

$16,886,107.99 $17,086,130.70

Total liabilities and Fund

Equity

$19,643,928.70 $105,414.79 $16,207,371.11 $458,210.54 $36,414,925.14 $26,530,334.27
======== ===== ======== ========= =========== =========

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.
- 3-

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT) STATEMENT OF CHANGES IN FUND BALANCE (STATUTORY BASIS)
GOVERNMENTAL FUND TYPE YEAR ENDED JUNE 30.1994

EXHIBIT "B"

FUND BALANCE - JULY 1 Reserved Unreserved Designated Surplus
ADDITIONS Adjustments to Prior Year's Accounts Payable Equity Transfer - Agency Funds Gannett Foundation Grant Excess of Funds Available over Expenditures Exhibit "C" Reimbursement of Non-Budgeted Expenditures Georgia State Financing Investment Commission Reimbursement of Prior Year's Expenditures Transfer of Surplus from State Technical Institutes (See Schedule)
DEDUCTIONS Unreserved Fund Balance (Surplus) Returned to Office of Treasury and Fiscal Services Year Ended June 30, 1992 Year Ended June 30, 1993 Adjustments to Prior Year's Accounts Receivable Non-Bud~eted Expenditures Georgia State Financing Investment Commission Refunds to Granters Georgia Department of Education Federal Financial Assistance Georgia Institute of Technology Satellite Technology Program Office of the Governor Office of Energy Resources Federal Financial Assistance U. S. Department of Education Federal Financial Assistance Reinstate Prior Year Live Work Projects Reserve Pickens Technical Institute Reserved Fund Balance Carried Over from Prior Year as Funds Available
FUND BALANCE - JUNE 30 (To Exhibit "A")

---------B-UY-DEA-GR-E-T-E-NF-UD-NE-DD---------
JUNE 30, 1994 JUNE 30, 1993

$ 58,938.05 $ 68,414.77
----8-6-5-,0--1-7-.2--7 ----1-4-7-,-7-6-7-.-7-4 $---9--2-3-,9--5-5-.3-2- $----2-1-6-,1--8-2-.5-1-

$ 204,456.91 $ 497,305.30

0.00

10,000.00

559,660.83

479,077.30

o.oo 8,460,633.98

74,846.92

58,338.69

286,575.14

560,104.52

$1,125,539.80 $10,065,459.79

$

0.00 $ 707,872.26

1,151,592.41

0.00

127,4'91.65

49,310.70

0.00 8,460,633.98

7,432.68 5.24

18,169.63 0.00

0.00

1,426.19

25,298.21

0.00

0.00

51,859.45

-----5-8-,9--3-8-.0--5 -----6-8-,4--1-4-.7--7 $--1-, 3--7-0-,-7-5-8-.-2-4 $ -9--, 3-5--7-, 6-8--6-. 9--8

$====6=7=8=,=7=3=6=.=8=8$====9=2=3=,=9=5=5=.3==2

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.
- 4-

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT}
STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES BUDGET FUND
YEAR ENDED JUNE 30. 1994

EXHIBIT "C" Page 1

FUNDS AVAILABLE REVENUES
STATE APPROPRIATION General Appropriation Amended Appropriation Governor's Emergency Fund (See Schedule) Total State Appropriation Allotments to State Technical Institutes (See Schedules) Net State Appropriation

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$141,399,041.00$ 123,029,842.00

19,218,650.00 -1,812,854.00

62,500.00

32,000.00

$160,680,191.00$ 121,248,988.00 -105,382,965.53 -86,674,037.20

$ 55,297,225.47 $ 34,574,950.80

FEDERAL REVENUES (See Schedule) Allotments to State Technical Institutes (See Schedule) Net Federal Revenues
OTHER REVENUES RETAINED Contracts Georgia Institute of Technology Satellite Technology Program Allotments to State Technical Institutes TCI Cablevision of Georgia, Incorporated Employee Education Program Allotments to State Technical Institutes G.E.D. Testing Fees Interest Earned Reimbursements From Various Sources Other Sources Total Other Revenues Retained Total Revenues
CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance Federal Financial Assistance Private Grants Total Carry-av.er from Prior Year
Total Funds Available

$ 24,918,065.16 $ 20,568,093.95
---1-5--,4-9--2-,2-4--7-.9--8 ---1-3--,0-6--5-,7-5--8-.7--4 $----9-,4-2--5-,8--1-7-.1--8 $----7-,5-0--2-,3-3--5-.2-1-

$

0.00 $ 170,207.83

0.00

-147,758.90

0.00 0.00 72,895.71 0.00

7,086.00 -4,300.00 63,761.95
81.82

47,540.07

84,484.58

----------1-5-4-.-5-3 ------------0-.0--0

$------1-2-0-,-5-9-0-.3--1 $------1-7-3-,-5-6-3-.-2-8

$---6-4-,8--4-3-,6--3-2-.9--6 $---4-2-,2--5-0-,8--4-9-.2--9

$

58,932.81 $

68,414.77

------------5-.2--4 ------------0-.0--0

$-------5-8-,-9-3-8-.0--5 $-------6-8-,4--1-4-.7--7

$ 64,902,571.01 $ 42,319,264.06

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-

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)
STATEM[NT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "C" Page 2

EXPENDITURES

------------Y-EA-TRO--T-AE-NL-DS-ED------------
JUNE 30, 1994 JUNE 30, 1993

PERSONAL SERVICES

Salaries and Wages Employer's Contributions for:
F. I .C.A. Retirement Health Insurance Liability Insurance Unemplo.yment Compensation Insurance Workers Compensation Insurance Assessments by Merit System REGULAR OPERATING EXPENSES

$ 2,BOS,911.05 $ 2,523,925.23

149,750.52 405,093.32 346,236.22 11,176.00
2,524.00 21,246.00
--------8-,4-2--3-.0--9

142,397.28 371,117.62 314,281.43
8,170.00 1,853.81 3,413.84
--------7-,6--6-6-.-7-0

$---3--,7-5--0-,3--6-0-.2--0 $----3-,3-7--2-,8-2--5-.9--1

Motor Vehicle Expenses Supplies and Materials Re~airs and Maintenance Utilities Rents (Other than Real Estate) Insurance and Bonding Other Operating Expenses Duplicating and Rapid Copy Publications and Printing
TRAVEL EQUIPMENT

$

3,898.46 $

7,667.93

123,414.35

104,569.83

31,342.65

39,134.71

0.00

107.40

16,088.86

4,989.45

1,424.66

1,605.00

181,305.70

231,307.86

14,708.53

12,452.81

------1-6-4-,-7-6-8-.-4-0 -------3-6-,-0-3-2-.-6-0

$------5-3-6-,9--5-1-.6--1 $------4-3-7-,-8-6-7-.5--9

$------1-7-5-,-0-2-7-.-9-0 $------1-3-9-,-0-7-3-.-9-4

Equipment Purchases Lease/Purchase of Equipment Rental of Equipment COMPUTER CHARGES

$

29,970.29 $

13,097.96

10,384.08

10.,500.93

----------3-9-6-.-0-0 ------------0-.0--0

$-------4-0-,7--5-0-.3--7 $-------2-3-,-5-9-8-.8--9

Other Costs Supplies and Materials Repairs and Maintenance
Software Equipment
Equipment Purchases Per Diem, Fees and Contracts
Per Diem and Fees Contracts Computer Billings, DOAS
REAL ESTATE RENTALS TELECOMMUNICATIONS

$

1,504.38 $

112,704.11

26,428.42

18,865.99 13,979.51 25,949.48

81,121.19

76,991.21

13,950.00

12,400.00

361,116.79

238,179.49

-------9-6-,8--5-1-.7-1- -------4-0-,9--5-3-.7--8

$------6-9-3-,-6-7-6-.6--0 $------4-2-7-,-3-1-9-.4--6

$------3-6-2-,5--3-6-.4--2 $------4-5-5-,-2-8-3-.9--2

$------1-8-7-,-1-7-9-.-7-8 $------1-7-2-,-8-5-3-.-0-3

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

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)
STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES BUDGET FUND
YEAR ENDED JUNE 30, 1994

EXHIBIT "C" Page 3

EXPENDITURES PER DIEM, FEES AND CONTRACTS
Per Diem and Fees Contracts
CAPITAL OUTLAY Per Diem, Fees and Contracts _Contracts
OTHER OPERATING EXPENSES-INSTITUTIONS Other Costs Repairs and Maintenance Other OP.erating Expenses Extraordinary Expenditures Publications and Printing Computer Charges Com~uter Billings DOAS Per Diem, Fees and Contracts Per Diem and Fees Contracts
QUICK START PROGRAM Personal Services Salaries and Wages Employer's Contributions for: F. I .C.A. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance Assessments by Merit System Other Costs Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Rents (Other than Real Estate) Insurance and Bonding Grants to Counties, Cities and Civil Divisions Other Operating Expenses Duplicating and Rapid Copy Publications and Printing Travel Equipment Equipment Purchases Rental of Equipment Computer Charges Software Equipment Equipment Purchases Computer Billings, DOAS Real Estate Rentals Telecommunications

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$

92,643.44 $

205,061.48

------3-0-3-,-2-8-8-.2--5 ------6-9-2-,-4-6-0-.6--3

$------3-9-5-,-9-3-1-.6--9 $------8-9-7-,5--2-2-.1-1-

$

915,000.00 $

0.00

$

0.00 $

9,069.07

0.00

9,180.00

0.00

6,112.00

237.50

0.00

0.00

9,338.22

880.03

0.00

------------0-.-0-0 ------6-8-6-,-2-6-2-.3--4

$--------1-,1--1-7-.5--3 $------7-1-9-,-9-6-1-.6--3

$ 1,883,727.96 $ 1,129,475.40

46,412.11 233,870.42 235,609.24
0.00 0.00 0.00 852.63

31,360.84 145,770.00 138,882.20
2,565.00 705.19
1,298.16 1,095.35

5,585.30 304,633.19
59,222.26 35,879.12
5,729.48 2,976.00 151,303.50 95,158.99
0.00 60,545.39 144,015.18

8,427.42 281,382.14 32,405.63
17,414.22 4,690.15 3,908.00 73,709.96 46,356.90
5.00 39,648.18 86,608.45

357,443.11 28,601.45

234,031.87 41,791.32

60,369.81

45,618.37

38,742.64 983.24
142,887.79 62,192.72

0.00 762.60 88,590.98 57,552.72

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

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)
STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES BUDGET FUND
YEAR ENDED JUNE 30. 1994

EXHIBIT "C" Page 4

EXPENDITURES OTHER
QUICK START PROGRAM Per Diem, Fees and Contracts Per Diem and Fees Contracts
AREA SCHOOL PROGRAM Other Costs Grants to Counties, Cities and Civil Divisions
REGENTS PROGRAM Other Costs Grants to Counties, Cities and Civil Divisions Computer Charges Computer Billings, DOAS
ADULT LITERACY GRANTS Other Costs Supplies and Materials Grants to Counties, Cities and Civil Divisions Other Operating Expenses Per Diem, Fees and Contracts Per Diem and Fees Contracts
JOB TRAINING PARTNERSHIP ACT Other Costs Grants to Counties, Cities and Civil Divisions
SPECIAL EDUCATION EQUIPMENT Other Costs Supplies and Materials Equipment Equipment Purchases
DISTANT LEARNING - SATELLITE DISHES Other Costs Repairs and Maintenance Equipment Equipment Purchases

TOTALS
-J-U-N-E--3--0-, --1-9Y-9EA4-R---E-N-JDU-EN-D-E. --3-0-,--1-9-9-3-

$ 1,917,696.53 $ 2,094,156.66
--------1-,6--1-6-.-0-0 -------3-5-,8--1-0-.3--7 $----5-,8-7--6-,0--5-4-.0--6 $----4-,6-4--4-,0--2-3-.0--8
$ 24,506,284.08 $ 23,181,168.76

$ 2,698,066.95 $ 2,405,858.35
------------0-.0--0 ----------3-9-0-.-0-0 $---2--,6-9--8-,0-6--6-.9--5 $----2-,4-0--6-,2-4--8-.3--5

$

1,948.80 $

0.00

5,614,126.42 3,900,053.03

28,680.00

0.00

23,275.61

0.00

------2-3-7-,6--5-9-.6-1- ----1-,0--6-2-,3--8-7-.0--6

$----5-,9-0--5-,6--9-0-.4--4 $----4-,9-6--2-,4-4--0-.0--9

$----1-,0-7--1-,0-9--1-.8--1 $------------0-.0--0

$

61,004.1B $

0.00

------1-3-7-,-2-2-1-.6--5 ------------0-.-0-0

$------1-9-8-,2--2-5-.8--3 $------------0-.0--0

$

7,280.00 $

0.00

------2-9-9-,-8-9-5-.5--0 ------------0-.-0-0

$------3-0-7-,-1-7-5-.5--0 $------------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.
- 8-

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)
STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES BUDGET FUND
YEAR ENDED JUNE 30, 1994

EXHIBIT C 11 11 Page 5

EXPENDITURES OTHER
COMPUTER HARDWARE AND SOFTWARE Other Costs Grants to Count;es, c;t;es and c;v;l Div;s;ons Equ;pment Equ;pment Purchases Telecommunications Per D;em, Fees and Contracts Per Diem and Fees Contracts
CAPITAL OUTLAY - COMPUTER LABS Other Costs Repairs and Ma;ntenance Computer Charges Software Equ;pment Equipment Purchases
CAPITAL OUTLAY - ADULT LITERACY Per Diem, Fees and Contracts Contracts
EQUIPMENT - STATE SCHOOLS Other Costs Repairs and Maintenance Equipment Equipment Purchases Computer Charges Software
EQUIPMENT - AREA SCHOOLS Other Costs Grants to Counties, Cities and Civil Divisions Equipment Equipment Purchases Computer Charges Software
Total Other Total Expend;tures Excess of Funds Available over Expenditures

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$ 237,000.00 $

0.00

1,712,832.24

0.00

397,543.00

0.00

68,400.00

0.00

------4-0-2-,-1-1-7-.4--5

0.00
---------------

$----2-,8-1--7-,8-9--2-.6--9 $------------0-.0--0

$

3,512.88 $

0.00

11,273.18

0.00

2,496,009.39
---------------

------------0-.0--0

$ ----2-,5-1--0-,7--9-5-.4--5

$

0.00

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

$

3,480,000.00
---------------

$ ------------0-.0--0

$

15,750.00 $

0.00

5,607,419.11

0.00

------1-9-8-,-5-1-2-.-2-4 ------------0-.0--0

$

5,821,681.35
---------------

$

0.00

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

$

93,100.00 $

0.00

1,908,862.12

0.00

-------B-9-,-4-5-7-.8--0

0.00
---------------

$

2,091,419.92
---------------

$ ------------0-.0--0

$---5-7-,2--8-5-,4--9-5-.6-1- $--3--5-,9-1--3-,8-4--1-.9-1-

$ 64,342,910.18 $ 41,840,186.76

------5-5-9-,6--6-0-.8--3 ------4-7-9-,-0-7-7-.3--0

----=------=-=s $ 64,902,571.01 $ 42,319,264.06 =====a:raa::u:a:a

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

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)
STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BUDGET FUND
"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION YEAR ENDED JUNE 30. 1994

EXHIBIT "D"

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

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$37,724,399.00 $37,869,989.50$ 145,590.50

11,331,042.00 9,425,817.18 -1,905,224.82

130,600.00

120,590.31

-10,009.69

$49,186,041.00 $47,416,396.99 $-1,769,644.01

0.00

58,938.05

58,938.05

EXPENDITURES
Personal Services Regular Operating Expenses Travel Equipment Computer Charges Real Estate Rentals Telecommunications Per Diem, Fees and Contracts Capital Outlay Personal Services-Institutions Operating Expenses-Institutions Quick Start Program Area School Program Regents Program Adult Literacy Grants Job Training Partnership Act

$49,186,041.00 $47,475,335.04 $-1,710,705.96
============= ------------- -------------

$ 4,090,943.00 $ 3,750,360.20 $ 340,582.80

539,007.00

536,951.61

2,055.39

179,806.00

175,027.90

4,778.10

65,936.00

40,750.37

25,185.63

798,669.00

693,676.60

104,992.40

371,083.00

362,536.42

8,546.58

185,413.00

187,179.78

-1,766.78

719,535.00

395,931.69

323,603.31

915,000.00

915,000.00

0.00

4,103.00

0.00

4,103.00

2,000.00

1,117.53

882.47

6,039,701.00 5,876,054.06

163,646.94

24,674,342.00 24,506,284.08

168,057.92

2,698,067.00 2,698,066.95

0.05

6,438,225.00 5,905,690.44

532,534.56

1,464,211.00 1,071,091.81

393,119.19

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

$49,186,041.00 $47,115,719.44$ 2,070,321.56

Excess of Funds Available over Expenditures

$ 359,615.60$ 359,615.60
============= =============

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 -

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)
STATEMfNT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BUDGET FUND
"B" LOTTERY FOR EDUCATION YEAR ENDED JUNE 30, 1994

EXHIBIT "E"

FUNDS AVAILABLE
REVENUES
State Appropriation
EXPENDITURES
Special Education Equipment Distant Learning - Satellite Dishes Computer Hardware and Software Capital Outlay - Computer Labs Capital Outlay - Adult Literacy Equipment - State Schools Equipment - Area Schools

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$17,422,611.00 $17,427,235.97 $ 4,624.97
============= ------------- -------------

$ 200,000.00$ 198,225.83 $ 1,774.17

439,000.00 307,175.50 131,824.50

2,818,000.00 2,817,892.69

107.31

2,544,000.00 2,510,795.45

33,204.55

3,480,000.00 3,480,000.00

0.00

5,848,511.00 5,821,681.35

26,829.65

2,093,100.00 2,091,419.92

1,680.08

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

$17,422,611.00 $17,227,190.74$ 195,420.26

Excess of Funds Available over Expenditures

$ 200,045.23 $ 200,045.23

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 -

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)
NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXIIlBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES /
REPORTING ENTITY The Department of Technical and Adult Education, an organizational unit of the State of Georgia, is part of the executive branch of government of the State of Georgia. The State Board of Technical and Adult Education is composed ofone member from each Congressional District in the State and five at-large members appointed by the Governor and confirmed by the Senate for five-year terms. The Commissioner is the chief executive officer ofthe Department and is selected by the State Board to serve at its pleasure.
The Department does not have authority to determine the amount of funding it will receive from the State of Georgia for any given fiscal year. Such authority is vested in the General Assembly of Georgia. The Department also does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, the Department of Technical and Adult Education is included within the State of Georgia reporting entity for financial reporting purposes because ofthe significance of its legal, operational, and financial relationships with the State ofGeorgia. These reporting entity relationships are defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards.
The Administrative Central Office ofthe Department ofTechnical and Adult Education is the "Oversight Unit"
ofthe Department and performs administrative functions and provides guidance to the twenty-eight (28) State
Technical Institutes which are organizational units ofthe Department ofTechnical and Adult Education.
The accompanying financial statements represent only the financial position and results of operations of the
Administrative Central Office ofthe Department ofTechnical and Adult Education. The financial position and
results of operations of other organizational units ofthe Department (various State Technical Institutes) are not included in these financial statements.
FUND ACCOUNTING The Administrative Central Office ofthe Department ofTechnical and Adult Education uses funds and account groups to report on its financial position and the results of its operations determined in conformity with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set ofaccounts. An account group, on the other hand, is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available financial resources.
Funds and account groups presented in the accompanying financial statements are as follows:

- 12 -

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)
NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
GOVERNMENTAL FUND TYPE
BUDGET FUND - The fund used to account for activities and functions as set forth in the Amended Appropriations Act of 1993-1994. 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 TYPE
AGENCY FUNDS - The funds used to account for assets held for use by other funds, governments, or individuals.
ACCOUNT GROUPS
GENERAL FIXED ASSETS - The account group used to account for fixed assets used in governmental fund type operations. Fixed assets purchased are recorded at historical cost. Donated fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded values. No depreciation has been provided on general fixed assets.
GENERAL LONG-TERM DEBT - The account group used to report the noncurrent portions of certain governmental long-term liabilities, such as claims, judgments, and compensated absences, which will be paid from future resources.
BASIS OF ACCOUNTING MEASUREMENT FOCUS
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. Governmental funds should be accounted for using the current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues) and decreases (i.e., expenditures) in net current assets.
GOVERNMENTAL FUND TYPE BUDGET FUND
Except as disclosed in the following paragraphs, units of government of the State of Georgia record their Budget Fund revenues and expenditures in accordance with the modified accrual basis of accounting. Under
the modified accrual basis ofaccounting, revenues are recognized when susceptible to accrual (i.e., when they
become both measurable and available).

- 13 -

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)
.NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXIIlBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPE BUDGETFUND
"Measurable" means the amount ofthe 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 State appropriations, Federal grants and entitlements, and certain amounts earned under operating agreements with other parties. Further, the modified accrual basis of accounting calls for expenditures, other than accrued interest of general long-term debt, to be recorded when the related fund liability is incurred.
Contractual obligations for services which have not been performed and for goods which have not been delivered at the end of the fiscal year are recognized as expenditures and liabilities in the accompanying :financial statements. This accounting practice causes expenditure-driven grant revenues to be accrued based in part on the unexecuted portion of contracts for goods and services. The recognition of encumbrances as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations ofthe State ofGeorgia, but is not consistent with generally accepted accounting principles, which provide for the recording of encumbrances as a reservation 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 are reported as additions to and deductions from fund balance ofthe Budget Fund in the accompanying financial statements. This. presentation is in accordance with accounting practices prescribed or pennitted by statutes and regulations ofthe State of Georgia, but differs from generally accepted accounting principles in that immaterial adjustments should be reported as current period revenues and expenditures.
FIDUCIARY FUND TYPE AGENCY FUNDS
Agency Funds are custodial in nature in that assets are equally offset by liabilities to other funds, governmental units, or individuals. The modified accrual basis of accounting is utilized for recognizing assets and liabilities.
BUDGET Appropriation allotments to the Department of Technical and Adult Education are on the basis of budgets submitted by the Department and approved by the Legislature and the Governor. The budgets are compiled in the same manner as all State departments and expenditures are classified by budget unit object classes as provided in Act No. 608 ofGeorgia Laws 1993 as approved April 28, 1993, and amended by Act No. 622 of Georgia Laws 1994 as approved February 8, 1994, which is an appropriated budget and is referred to in these notes as the Amended Appropriations Act of 1993-1994.

- 14 -

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION AD:MINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)
NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUDGET This appropriated budget is adopted at the departmental level and covers the Budget Fund. The budget allocation and disbursement of these funds is made to the various technical institutes by the Administrative Central Office.
CASH AND CASH EQUIVALENTS Cash and Cash Equivalents include demand deposits with banks and other financial institutions.
ACCOUNTS RECEIVABLE Accounts receivable consist of appropriation allotments due from the Office of Treasury and Fiscal Services, reimbursements due from Federal, State, local, and private grants and contracts, and other receivables disclosed from information available.
INVENTORIES No inventories of supplies are reported in the current financial statements. Expendable supplies are recorded as expenditures at the time ofpurchase.
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 The residual portion ofFederal financial assistance revenues not yet expended or encumbered. This amount is restricted for expenditure in future years. This accounting treatment differs from generally accepted accounting principles in that the unearned portion of Federal financial assistance should be reflected as Deferred Revenue.
SATELLITE DISH INSTALLATION Lottery for Education funds restricted to expenditures for installation of satellite dishes at various sites in the subsequent fiscal year.
COMPENSATED ABSENCES Compensated absences represent obligations of the Department relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulating annual 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 expendable available financial resources. Funds are provided in the appropriation of State funds each year to Department to cover the cost of annual leave paid to terminated employees.

- 15 -

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)
NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT "F"

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

- 16-

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)
NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT "F"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS

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

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

As authorized in the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies which allow agencies ofthe State of Georgia 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. These bank balances are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk:

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

Category 2 - Amounts collateraliz.ed with securities (at market value) held by the financial institution's trust department or agent in the Administrative Central Office's name.

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

Canying Amount

Risk Categories

2

3

Cash Deposits

S -2 082 8S S 3 7$2 632 36 S 200 000 00 s=="""ooo,.. S 3 SS2 632 36

NOTE 3: OPERATING LEASES

The Administrative Central Office has entered into certain agreements to lease real property which are classified as operating leases. These leases contain provisions that, at the expiration date of the original term
of the lease, the Administrative Central Office has the option of renewing the lease on a year-to-year basis.

- 17 -

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)
NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT "F"

NOTE 3: OPERATING LEASES

Future minimum commitments for operating leases as of June 30, 1994, are listed below. Amounts are included only for multi-year leases and for cancellable leases for which an option to renew for the subsequent fiscal year has been exercised.

Fiscal Year Ending June 30

1995

S 631,586.71

Expenditures for rental of real property under operating leases for the year ended June 30, 1994, totaled $505,424.21.

NOTE 4: CAPITAL LEASES

The Administrative Central Office acquires certain equipment through multi-year capital leases with varying terms and options. These agreements contain fiscal funding clauses in accordance with Official Code of Georgia Annotated Section 50-5-64 which prohibits the creation of a debt to the State of Georgia for the payment ofany sums under such agreements beyond the fiscal year of execution if appropriated funds are not available. If renewal of such agreements is reasonably assured, however, capital leases which require appropriation by the General Assembly of Georgia are considered noncancellable for financial reporting purposes.

At June 30, 1994, future minimum lease payments under capital leases are as follows:

Fiscal Year Ending June 30

1995

$ 8,271.78

Less: Amounts Representing Interest

362.86

Present Value ofFuture Minimum Lease Payments

$ 7,908.92

NOTE 5: CHANGES IN GENERAL FIXED ASSETS

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

- 18 -

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)
NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXHIBIT "F"

NOTE 5: CHANGES IN GENERAL FIXED ASSETS

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

Balance July 1, 1993

$16,162,175.38

Additions Deductions

389,415.28 344,219.55

Balance June 30, 1994

$16,207,371.11

NOTE 6: GENERAL LONG-TERM DEBT

CHANGES IN GENERAL LONG-TERM DEBT A summary of changes in General Long-Term Debt for the year ended June 30, 1994, follows:

Balance July 1, 1993
Additions Annual Leave Earned and Utilized (Net) Salaries and Wies S~ary-Related ringe Benefits (*)
Deductions
Balance June 30, 1994

Compensated Aosences
$ 348,811.84 $

Capital Leases

Total

16,927.99 $ 365,739.83

. 79,032.99 22,456.79 $ 450,301.62 $

9,019.07

79,032.99 22,456.79
9.019.07

7,908.92 $ 458,210.54

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

NOTE 7: DEFERRED COMPENSATION PLAN

The State of Georgia offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to employees of the State of Georgia and county health departments, permits such employees to defer a portion 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 ofcompensation 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 ofthe 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, 1994.

- 19-

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)
NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994

EXIIlBIT "F"

NOTE 8: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA TEACHERS RETIREMENT SYSTEM OF GEORGIA Substantially all employees are members of the Employees' Retirement System of Georgia or the Teachers Retirement System ofGeorgia. The Employees' Retirement System of Georgia is a single-employer, defined benefit pension plan, while the Teachers Retirement System of Georgia is a cost-sharing multiple-employer public employee retirement system.
These Retirement Systems were established by the General Assembly of Georgia for the purpose of providing retirement allowances for employees ofthe State of Georgia. Both Retirement Systems are funded through a combination of employee and employer contributions. Employees are required to contribute a graduated percentage ofannual compensation. Employer contributions are for a specified percentage of active member payroll determined annually by an actuarial valuation. During the year ended June 30, 1994, the Administrative Central Office contributed $362,052.60 to the Employees' Retirement System of Georgia and $276,911.14 to the Teachers Retirement System of Georgia. Participation in either Retirement System is not segregated by employee groups of individual governmental units and the Administrative Central Office has no further liability under either Retirement System other than future employer contributions as established for each fiscal year. Information relative to each plan's description, funding status, and historical trends is presented in the financial report of the Employees' Retirement System of Georgia and the Teachers Retirement System of Georgia for the year ended June 30, 1994.
GEORGIA DEFINED CONTRIBUTION PLAN
The State ofGeorgia provides retirement coverage for temporary, seasonal, and part-time employees who are
not eligible for membership in the Retirement Systems referred to above through a single-employer defined contribution plan. The Georgia Defined Contribution Plan was established by the General Assembly of Georgia and is administered by the Board of Trustees of the Employees' Retirement System of Georgia. Covered employees are required to contribute 7.5% of their gross salary, with no matching contribution by the employer. A member who terminates employment may apply for a refund of contributions and interest. Benefits are based solely on the amount contributed by the employee plus investment earnings. Upon discretion ofthe Board ofTrustees, members who leave employment with less than $3,500.00 credited to their account may be required to make a lump-sum withdrawal. Members are eligible to retire at the age of 65 with the option ofreceiving a periodic payment based on mortality tables and interest accumulation as adopted by the Board of Trustees of the Employees' Retirement System of Georgia. Information relative to the plan description and funding status is presented in the financial report of the Employees' Retirement System of Georgia for the year ended June 30, 1994.
NOTE 9: LEAVE POLICIES
Employees earn annual leave ranging from ten to fourteen hours 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
-20-

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 9: LEAVE POLICIES
Employees earn ten hours 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 offorfeited 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, 1994, the Georgia State Financing and Investment Commission paid $267,926.43 to various vendors for approved projects related to Sandersville Technical Institute (under construction).
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 Administrative Central Office expects such amounts, if any, to be immaterial to its overall financial position.
Litigation, claims and assessments filed against the Administrative Central Office 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 litigation, claims and assessments. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State ofGeorgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1994.
NOTE 12: BONDING INFORMATION
The Commissioner and all employees ofthe Administrative Central Office ofthe Department of Technical and Adult Education are bonded under a Public Employees Blanket Bond written by Employers Insurance of Wausau, their Bond No. 1450-00-110723, on which the premium was paid to October 1, 1994. Under this agreement, the public employee dishonesty coverage insures the Administrative Central Office to a maximum of $1,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. The faithful
- 21 -

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION
ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNID
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 12: BONDING INFORMATION
perfonnance ofduty coverage insures the Administrative Central Office to a maximum of $100,000.00 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 oftheir position or employment.
All employees ofthe Administrative Central Office are also bonded under a Commercial Crime Policy written
by the United States Fire Insurance Company, their Policy No. 626011675 2, on which the premium was paid to October 1, 1994. Under this additional public employee dishonesty coverage, the policy insures the Administrative Central Office to a maximum of $4,000,000.00 against loss sustained through fraudulent or
dishonest acts by its employees.

-22-

SUPPLEMENTARY INFORMATION -23 -

DEPARTMENT OF TECHNICAL ANO ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)
COMBINING BALANCE SHEET (STATUTORY BASIS) BUDGET FUND
JUNE 30. 1994

EXHIBIT "G"

ASSETS Cash and Cash Equivalents Accounts Receivable
State Appropriation Federal Financial Assistance Other
Total Assets
LIABILITIES AND FUND EQUITY Liabilities
Cash Overdraft Accounts Payable Contracts Payable Allotments Due to Other Units Payroll Withholdings
Total Liabilities Fund Equity
Fund Balance Reserved Federal Financial Assistance Satellite Dish Installation Unreserved Designated Surplus Regular Lottery for Education Total Fund Equity
Total Liabilities and Fund Equity

"A"
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR EDUCATION

TOTAL

$ 2,207,360.54

$ 2,207,360.54

$1,505,408.22 $12,189,996.10 $13,695,404.32

3,558,963.15

3,558,963.15

2,389,561.23

2,389,561.23

$ 7,453,932.60 $12,189,996.10 $19,643,928.70

$ 9,661,293.14 $12,189,996.10 $21,851,289.24
============= ============= =============

$2,314,858.18$ 2,314,858.18

$ 6,648,503.15 6,360,390.44 13,008,893.59

983,661.27

686,454.00 1,670,115.27

1,489,656.90 2,628,248.25 4,117,905.15

60,780.17

60,780.17

$ 9,182,601.49 $11,989,950.87 $21,172~552.36

$ 18,756.44

$ 18,756.44

$ 118,320.00

118,320.00

459,935.21

459,935.21

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

81,725.23
-------------

-----8-1-,7--2-5-.2--3

$ 478,691.65
-------------

$ 200,045.23
-------------

$ 678,736.88
-------------

$ 9,661,293.14 $12,189,996.10 $21,851,289.24
============= ============= =============

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

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT) COMBINING STATEMENT OF CHANGES IN FUND BALANCE (STATUTORY BASIS)
BUDGET FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "H"

FUND BALANCE - JULY 1
---------------------
Reserved Unreserved
Designated Surplus
ADDITIONS Adjustments to Prior Year's Accounts Payable Excess of Funds Available over Expenditures Exhibit "I" Reimbursement of Prior Year's Expenditures Transfer of Surplus from State Technical Institutes
DEDUCTIONS Unreserved Fund Balance (Surplus) Returned to Office of Treasury and Fiscal Services Year Ended June 30, 1993 Adjustments to Prior Year's Accounts Receivable Refunds to Granters Georgia Department of Education Federal Financial Assistance Georgia Institute of Technology Satellite Technology Program U. S. Department of Education Federal Financial Assistance Reserved Fund Balance Carried Over from Prior Year as Funds Available
FUND BALANCE - JUNE 30 (To Exhibit "G")

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

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

TOTAL

$ 58,938.05

$ 58,938.05

865,017.27 $

0.00

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

----8-6-5-,-0-1-7-.-2-7

$ 923,955.32 $

0.00 $ 923,955.32

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

$ 204,456.91

$ 204,456.91

359,615.60 $ 200,045.23

559,660.83

74,846.92

74,846.92

286,575.14
-------------

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

286,575.14
-------------

$ 925,494.57 $ 200,045.23 $ 1,125,539.80
------------- ------------- -------------

$ 1,151,592.41 $ 127,491.65

0.00 $ 1,151,592.41 127,491.65

7,432.68

7,432.68

5.24

5.24

25,298.21

25,298.21

58,938.05

58,938.05

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

$ 1,370,758.24 $

0.00 $ 1,370,758.24

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

$ 478,691.65$ 200,045.23 $ 678,736.88
============= ============= =============

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

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT) COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "I" Page 1

FUNDS AVAILABLE REVENUES
STATE APPROPRIATION General Appropriation Amended Appropriation Governor's Emergency Fund Total State Appropriation Allotments to State Technical Institutes Net State Appropriation
FEDERAL REVENUES Allotments to State Technical Institutes Net Federal Revenues
OTHER REVENUES RETAINED G.E.D. Testing Fees Reimbursements , From Various Sources Other Sources Total Other Revenues Retained Total Revenues
CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance Federal Financial Assistance Private Grants Total Carry-Over from Prior Year
Total Funds Available
EXPENDITURES PERSONAL SERVICES
Salaries and Wages EmQloyer's Contributions for:
F. LC.A.
Retirement Health Insurance

"A"
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

"B"
LOTTERY FOR EDUCATION

TOTAL

$133,918,041.00$ 7,481,000.00$ 141,399,041.00

718,650.00 18,500,000.00 19,218,650.00

62,500.00

62,500.00

$134,699,191.00$ 25,981,000.00$ 160,680,191.00 -96, 829,201.50 -8,553,764.03 -105,382,965.53

$ 37,869,989.50$ 17,427,235.97 $ 55,297,225.47

$ 24,918,065.16 -15,492,247.98

$ 24,918,065.16 -15,492,247.98

$ 9,425,817.18

$ 9,425,817.18

$

72,895.71

47,540.07
----------1-5-4-.-5-3

$------1-2-0-,-5-9-0-.3--1

$ 47,416,396.99 $

$

72,895.71

47,540.07
----------1-5-4-.5--3 $------1-2-0-,-5-9-0-.3--1

17,427,235.97 $ 64,843,632.96

$

58,932.81

------------5-.2--4

$

58,938.05
---------------

$

58,932.81

------------5-.-2-4

$ -------5-8-,-9-3-8-.0--5

$===4=7=,=4=7=5=,=3=3=5=.=0=4$ ==1==7=,4=2==7=,2=3==5=.9=7= $===6=4=,9=0==2=,5=7==1=.0=1=

$ 2,805,911.05 149,750.52 405,093.32 346,236.22

$ 2,805,911.05 149,750.52 405,093.32 346,236.22

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 26 -

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT) COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "I" Page 2

EXPENDITURES PERSONAL SERVICES
Employer's Contributions for: Liability Insurance Unemplorment Compensation Insurance Workers Compensation Insurance Assessments by Merit System
REGULAR OPERATING EXPENSES Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Rents (Other than Real Estate) Insurance and Bonding Other Operating Expenses Duplicating and Rapid Copy Publications and Printing
TRAVEL EQUIPMENT
Equipment Purchases Lease/Purchase of Equipment Rental of Equipment
COMPUTER CHARGES Other Costs Supplies and Materials Repairs and Maintenance Software Equipment Equipment Purchases Per Diem, Fees and Contracts Per Diem and Fees Contracts Computer Billings, DOAS
REAL ESTATE RENTALS TELECOMMUNICATIONS

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR EDUCATION

TOTAL

$

11,176.00

2,524.00

21,246.00

8,423.09

$ 3,750,360.20

$

3,898.46

123,414.35

31,342.65

16,088.86

1,424.66

181,305.70

14,708.53

164,768.40

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

$ ------5-3-6-,-9-5-1-.6--1

$ ------1-7-5-,-0-2-7-.-9-0

$

29,970.29

10,384.08

----------3-9-6-.-0-0

$ -------4-0-,7--5-0-.3--7

$

1,504.38

112,704.11

26,428.42

81,121.19

13,950.00 361,116.79 96,851.71
--------------$ ------6-9-3-,-6-7-6-.6--0

$ ------3-6-2-,-5-3-6-.4--2 $ ------1-8-7-,-1-7-9-.-7-8

$

11,176.00

2,524.00

21,246.00

8,423.09

$ 3,750,360.20

$

3,898.46

123,414.35

31,342.65

16,088.86

1,424.66

181,305.70

14,708.53

------1-6-4-,-7-6-8-.-4-0

$ ------5-3-6-,-9-5-1-.6--1

$ ------1-7-5-,-0-2-7-.-9-0

$

29,970.29

10,384.08

----------3-9-6-.-0-0

$-------4-0-,7--5-0-.3-7-

$

1,504.38

112,704.11

26,428.42

81,121.19

13,950.00 361,116.79
96,851.71
--------------$ ------6-9-3-,-6-7-6-.6--0

$ ------3-6-2-,-5-3-6-.4--2 $ ------1-8-7-,-1-7-9-.-7-8

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

DEPARTMENT OF TECHNICAL ANO ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT) COMBINING STATEMENT OF FUNDS AVAILABLE ANO EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "I" Page 3

"A"
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

EXPENDITURES

PER DIEM, FEES AND CONTRACTS

Per Diem and Fees Contracts CAPITAL OUTLAY

$

92,643.44

------3-0-3-,-2-8-8-.-2-5

$------3-9-5-,-9-3-1-.6--9

Per Diem, Fees and Contracts Contracts

$

915,000.00

OTHER

OPERATING EXPENSES-INSTITUTIONS Other Costs Publications and Printing Per Diem, Fees and Contracts Per Diem and Fees

$

237.50

880.03

$

1,117.53

QUICK START PROGRAM

Personal Services

Salaries and Wages

$ 1,883,727.96

Employer's Contributions for:

F. I.C.A.

46,412.11

Retirement

233,870.42

Health Insurance

235,609.24

Assessments by Merit System

852.63

Motor Vehicle Expenses

5,585.30

Supplies and Materials

304,633.19

Re~airs and Maintenance

59,222.26

Ut1lities

35,879.12

Rents (Other than Real Estate)

5,729.48

Insurance and Bonding

2,976.00

Grants to Counties, Cities and Civil Divisions

151,303.50

Other Operating Expenses

95,158.99

Publications and Printing

60,545.39

Travel

144,015.18

Equipment

Equipment Purchases

357,443.11

Rental of Equipment

28,601.45

Computer Charges

Software

60,369.81

Equipment

Equipment Purchases

38,742.64

Computer Billings, OOAS

983.24

Real Estate Rentals

142,887.79

Telecommunications

62,192.72

Per Diem, Fees and Contracts

Per Diem and Fees

1,917,696.53

Contracts

1,616.00

$ 5,876,054.06

AREA SCHOOL PROGRAM Other Costs Grants to Counties, Cities and Civil Divisions $ 24,506,284.08

"B" LOTTERY FOR
EDUCATION

TOTAL

$

92,643.44

------3-0-3-,-2-8-8-.-2-5

$ ------3-9-5-,-9-3-1-.6--9

$

915,000.00

$

237.50

880.03

$

1,117.53

$ 1,883,727.96 46,412.11 233,870.42 235,609.24 852.63 5,585.30
304,633.19 59,222.26 35,879.12 5,729.48 2,976.00
151,303.50 95,158.99 60,545.39 144,015.18 357,443.11 28,601.45 60,369.81 38,742.64
983.24 142,887.79
62,192.72 1,917,696.53
1,616.00
$ 5,876,054.06

$ 24,506,284.08

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

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT) COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "I" Page 4

"A".
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

"B"
LOTTERY FOR EDUCATION

TOTAL

EXPENDITURES

OTHER

REGENTS PROGRAM Other Costs Grants to Counties, Cities and Civil Divisions
ADULT LITERACY GRANTS Other Costs Supplies and Materials Grants to Counties, Cities and Civil Divisions Other Operating Expenses Per Diem, Fees and Contracts Per Diem and Fees Contracts
JOB TRAINING PARTNERSHIP ACT Other Costs Grants to Counties, Cities and Civil Divisions
SPECIAL EDUCATION EQUIPMENT Other Costs Supplies and Materials Equipment Equipment Purchases
DISTANT LEARNING - SATELLITE DISHES Other Costs Repairs and Maintenance Equipment Equipment Purchases
COMPUTER HARDWARE AND SOFTWARE Other Costs Grants to Counties, Cities and Civil Divisions Equipment Equipment Purchases Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Contracts
CAPITAL OUTLAY - COMPUTER LABS Other Costs Repairs and Maintenance Computer Charges Software Equipment Equipment Purchases

$ ----2-,6-9--8-,0--6-6-.9--5

$ ----2-,6--9-8-,0--6-6-.9--5

$

1,948.80

5,614,126.42

28,680.00

23,275.61
------2-3-7-,-6-5-9-.6--1

$ ----5-,9--0-5-,6--9-0-.4--4

$

1,948.80

5,614,126.42

28,680.00

23,275.61
------2-3-7-,-6-5-9-.6--1

$ ----5-,9--0-5-,6--9-0-.4--4

$ 1,071,091.81

$ ----1-,0--7-1-,0--9-1-.8--1

$

61,004.18 $

61,004.18

------1-3-7-,-2-2-1-.-6-5 ------1-3-7-,-2-2-1-.-6-5

$------1-9-8-,-2-2-5-.8--3 $------1-9-8-,-2-2-5-.8--3

$

7,280.00 $

7,280.00

------2-9-9-,-8-9-5-.-5-0 ------2-9-9-,-8-9-5-.-5-0

$------3-0-7-,-1-7-5-.-5-0 $------3-0-7-,-1-7-5-.-5-0

$

237,000.00 $

237,000.00

1,712,832.24 397,543.00

1,712,832.24 397,543.00

68,400.00

68,400.00

------4-0-2-,-1-1-7-.-4-5

402,117.45
---------------

$----2-,8--1-7-,8--9-2-.6--9 $----2-,8-1--7-,8--9-2-.6--9

$

3,512.88 $

3,512.88

11,273.18

11,273.18

----2-,4-9--6-,0--0-9-.3--9 ----2-,4-9--6-,0--0-9-.3--9

$----2-,5-1--0-,7--9-5-.4--5 $----2-,5-1--0-,7--9-5-.4--5

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

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT} COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "I"
Page 5

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR
EDUCATION

TOTAL

EXPENDITURES

OTHER

CAPITAL OUTLAY - ADULT LITERACY Per Diem, Fees and Contracts Contracts

$ 3,480,000.00$ 3,480,000.00

EQUIPMENT - STATE SCHOOLS Other Costs Repairs and Maintenance Equipment Equipment Purchases Computer Charges Software
EQUIPMENT - AREA SCHOOLS Other Costs Grants to Counties, Cities and Civil Divisions Equipment Equipment Purchases Computer Charges Software Total Other

$

15,750.00 $

15,750.00

5,607,419.11 5,607,419.11

------1-9-8-,-5-1-2-.2--4 ------1-9-8-,-5-1-2-.-2-4 $---5--,8-2--1-,6--8-1-.3--5 $----5-,8--2-1-,6--8-1-.3--5

$

93,100.00 $

93,100.00

1,908,862.12

1,908,862.12

-------8-9-,4--5-7-.8--0 -------8-9-,4--5-7-.-8-0

$----2-,0-9--1-,4--1-9-.9--2 $----2-,0-9--1-,4--1-9-.9--2

$ 40,058,304.87 $ 17,227,190.74 $ 57,285,495.61

Total Expenditures Excess of Funds Available over Expenditures

$ 47,115,719.44$ 17,227,190.74$ 64,342,910.18

359,615.60

200,045.23

559,660.83

$ 47,475,335.04$ 17,427,235.97
=============== ===============

$==6==4=,9=0=2=,=57=1=.0=1=

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

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT) STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 1994

EXHIBIT "J"

FUND Postsecondary Activities Accounts

ASSETS/ LIABILITIES JULY l, 1993
------------

ADDITIONS
---------

DELETIONS
---------

ASSETS/ LIABILITIES JUNE 30, 1994
-------------

$ 98,244.18 $ 337,503.76 $ 330,333.15 $ 105,414.79
============= ============= ============= =============

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

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)
SCHEDULE OF APPROVED BUDGET "A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION
YEAR ENDED JUNE 30. 1994

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

ORIGINAL

AMENDED

APPROPRIATION APPROPRIATION

$133,918,041.00$ 718,650.00 18,079,224.00 1,290,656.00 11,297,198.00
$163,294,463.00$ 2,009,306.00
0.00

EXPENDITURES
Personal Services Regular Operating Expenses Travel Equipment Computer Charges Real Estate Rentals Telecommunications Per Diem, Fees and Contracts Capital Outlay Personal Services-Institutions Operating Expenses-Institutions Quick Start Program Area School Program Regents Program Adult Literacy Grants Job Training Partnership Act

$163,294,463.00$ 2,009,306.00
============== =============

$ 4,110,707.00$ 368,013.00 108,250.00 15,000.00 566,826.00 339,900.00 135,630.00 604,500.00 790,000.00
92,122,611.00 19,142,056.00 6,015,059.00 23,864,833.00 2,660,920.00 12,450,158.00
0.00

-398,994.00
125,000.00 423,465.00 777,502.00 130,627.00 951,706.00

$163,294,463.00$ 2,009,306.00
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 32 -

SCHEDULE "1"

LESS:

TOTAL

BUDGET

GOVERNOR'S

BUDGET

APPROVED

TRANSFERS TO

EMERGENCY FUND ADJUSTMENTS

BUDGET

OTHER UNITS

TOTAL

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

$ 62,500.00

$134,699,191.00$ 96,974,792.00 $37,724,399.00

$16,889,271.00 36,259,151.00 24,928,109.00 11,331,042.00

22,559,663.00 33,856,861.00 33,726,261.00

130,600.00

$

62,500.00 $39,448,934.00 $204,815,203.00 $155,629,162.00 $49,186,041.00

595,603.00

595,603.00

595,603.00

0.00

$

62,500.00 $40,044,537.00 $205,410,806.00 $156,224,765.00 $49,186,041.00

$ 379,230.00 $ 4,090,943.00

$ 4,090,943.00

170,994.00

539,007.00

539,007.00

71,556.00

179,806.00

179,806.00

50,936.00

65,936.00

65,936.00

231,843.00

798,669.00

798,669.00

31,183.00

371,083.00

371,083.00

49,783.00

185,413.00

185,413.00

$

10,000.00

105,035.00

719,535.00

719,535.00

549,267.00 1,464,267.00$ 549,267.00

915,000.00

11,377,968.00 103,924,044.00 103,919,941.00

4,103.00

20,080,907.00 39,222,963.00 39,220,963.00

2,000.00

238,000.00 7,030,561.00

990,860.00 6,039,701.00

678,882.00 24,674,342.00

24,674,342.00

37,147.00 2,698,067.00

2,698,067.00

52,500.00 3,387,847.00 16,842,211.00 10,403,986.00 6,438,225.00

2,603,959.00 2,603,959.00 1,139,748.00 1,464,211.00
-------------- ------------- -------------- -------------- -------------

$

62,500.00 $40,044,537.00 $205,410,806.00 $156,224,765.00 $49,186,041.00

============== ============= ============== ============== =======-==---

- 33 -

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION
ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT) SCHEDULE OF APPROVED BUDGET "B" LOTTERY FOR EDUCATION
YEAR ENDED JUNE 30. 1994

SCHEDULE "2"

FUNDS AVAILABLE REVENUES
State Appropriation

LESS:

TOTAL

BUDGET

ORIGINAL

AMENDED

BUDGET

APPROVED TRANSFERS TO

APPROPRIATION APPROPRIATION ADJUSTMENTS BUDGET

OTHER UNITS

TOTAL

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

$ 7,4Bl,OOO.OO $18,500,000.00 $

0.00 $25,981,000.00 $8,558,389.00 $17,422,611.00

========= ========== 1---======== =========== ============ ========

EXPENDITURES

Special Education Equipment Distant Learning - Satellite
Dishes Canputer Hardware and Software Capital Outlay - ~uter Labs Capital Outlay - Adult Literacy Equipment - State Schools Equipment - Area Schools

$ 200,000.00

$ 200,000.00

$ 200,000.00

320,000.00$ 119,000.00 937,000.00 1,881,000.00 2,544,000.00 3,480,000.00
0.00 14,500,000.00$ -93,100.00 0.00 2,000,000.00 93,100.00

439,000.00 2,818,000.00 2,544,000.00 3,480,000.00 14,406,900.00 $8,558,389.00 2,093,100.00

439,000.00 2,818,000.00 2,544,000.00 3,480,000.00 5,848,511.00 2,093,100.00

$ 7,481,000.00 $18,500,000.00$

0.00 $25,981,000.00 $8,558,389.00 $17,422,611.00

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

See accanpanying notes and Independent Accountant's Canbined Report on Review of Financial Statements and Supplementary Infonnation.
- 35 -

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT) SCHEDULE OF BUDGET TRANSFERS TO OTHER UNITS "A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION
YEAR ENDED JUNE 30, 1994

APPROVED BUDGET

STATE TECHNICAL INSTITUTES
--------------------------
Albany Technical Institute Altamaha Technical Institute Athens Area Technical Institute Augusta Technical Institute Ben Hill-Irwin Technical Institute Carroll Technical Institute Chattahoochee Technical Institute Colunbus Technical Institute Coosa Valley Technical Institute Flint River Technical Institute Griffin Technical Institute Heart of Georgia Technical Institute Lanier Technical Institute Macon Technical Institute Middle Georgia Technical Institute Moultrie Area Technical Institute North Georgia Technical Institute North Metro Technical Institute Ogeechee Technical Institute Okefenokee Technical Institute Pickens Technical Institute South Georgia Technical Institute Southeastern Technical Institute Swainsboro Technical Institute Thomas Technical Institute Valdosta Technical Institute Walker Technical Institute West Georgia Technical Institute

CAPITAL OUTLAY

PERSONAL SERVICESINSTITUTIONS
------------

OPERATING
EXPENSESINSTITUTIONS
------------

$ 5,359,890.00$ 2,761,832.00$

QUICK START PROGRAM
94,130.00

ADULT LITERACY
-G--R-A-N-T-S -

1,982,354.00 786,478.00

12,565.00$ 251,766.00

$ 120,000.00 6,559,676.00 1,708,984.00

49,397.00 610,296.00

8,706,842.00 3,312,585.00 382,548.00 541,805.00

3,066,251.00 981,351.00

1,650.00 230,882.00

3,778,595.00 1,497,525.00

847,037.00

5,355,287.00 1,885,653.00

6,523,502.00 1,560,992.00

37,307.00

3,670,519.00 1,283,171.00 136,753.00 359,430.00

66,575.00 2,486,986.00 1,061,794.00

606,974.00

95,692.00 3,605,211.00 1,904,791.00

21,676.00 682,156.00

42,000.00 2,451,915.00 1,099,311.00

420,091.00

3,566,733.00 1,202,727.00 127,684.00 758,326.00

5,933,644.00 2,701,735.00

19,862.00

67,000.00

2,802,666.00 1,011,341.00

518,696.00

150,000.00 2,655,592.00 829,805.00

403.00 286,485.00

4,721,743.00 1,806,945.00

35,263.00 355,829.00

3,013,941.00 1,064,544.00

230,208.00

2,024,163.00 645,400.00

649.00 354,974.00

2,721,075.00 950,101.00

270,780.00

2,443,524.00 800,977.00

341.00 367,946.00

3,719,136.00 1,929,570.00

16,744.00 467,841.00

1,811,545.00 706,799.00

210,926.00

65,000.00 2,440,700.00 1,043,043.00

4,207.00 473,848.00

3,363,095.00 1,137,889.00

1,520.00 460,674.00

3,660,222.00 1,547,461.00

302,234.00

2,760,782.00 1,088,317.00

345,364.00

10,000.00 2,734,352.00 909,842.00

48,161.00 382,418.00

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

$ 549,267.00 $103,919,941.00 $39,220,963.00$ 990,860.00 $10,403,986.00
========== ========== ======== ========== ==========
See accanpanying notes and Independent Accountant's Canbined Report on Review of Financial Statements and Supplementary Information.
- 36 -

SCHEDULE "3"

--------JO-B----------------------
TRAINING

FUNDING PROVIDED
----------------------------------O--TH-E-R--------C-A--R-R-Y--O-V-E-R-------------------

PARTNERSHIP

STATE

FEDERAL

REVENUES

PRIOR YEAR

ACT

TOTAL

-----------

FUNDS

R--EV--EN--U-E-S

R--E-T-A-IN-E-D-

LOCAL FUNDS
-----------

TOTAL

$ 41,272.00$ 8,257,124.00$ 4,681,493.00$ 1,287,631.00$ 2,288,000.00

$ 8,257,124.00

3,033,163.00 2,002,346.00 292,317.00 738,500.00

3,033,163.00

13,207.00 9,061,560.00 5,822,784.00 1,023,337.00 2,215,439.00

9,061,560.00

44,136.00 12,987,916.00 8,140,139.00 1,610,541.00 3,187,236.00$ 50,000.00 12,987,916.00

56,467.00 4,336,601.00 2,619,563.00 962,829.00 754,209.00

4,336,601.00

69,577.00 6,192,734.00 3,419,344.00 1,365,917.00 1,407,473.00

6,192,734.00

7,240,940.00 4,487,615.00 1,129,048.00 1,624,277.00

7,240,940.00

39,859.00 8,161,660.00 5,567,381.00 1,136,691.00 1,454,964.00

2,624.00 8,161,660.00

125,488.00 5,575,361.00 3,497,993.00 891,248.00 1,181,120.00

5,000.00 5,575,361.00

17,417.00 4,239,746.00 2,289,214.00 952,633.00 997,899.00

4,239,746.00

171,619.00 6,481,145.00 3,428,763.00 1,252,253.00 1,733,060.00

67,069.00 6,481,145.00

25,233.00 4,038,550.00 2,713,800.00 657,125.00 625,625.00

42,000.00 4,038,550.00

33,253.00 5,688,723.00 3,761,905.00 658,119.00 1,218,699.00

50,000.00 5,688,723.00

55,207.00 8,777,448.00 5,248,303.00 1,284,695.00 2,174,450.00

70,000.00 8,777,448.00

56,097.00 4,388,800.00 2,665,106.00 806,604.00 917,090.00

4,388,800.00

68,272.00 3,990,557.00 2,486,008.00 876,151.00 478,398.00 150,000.00 3,990,557.00

26,495.00 6,946,275.00 4,691,646.00 752,946.00 1,501,683.00

6,946,275.00

4,308,693.00 2,713,066.00 378,659.00 1,216,968.00

4,308,693.00

3,025,186.00 2,055,370.00 323,267.00 646,549.00

3,025,186.00

3,941,956.00 2,463,942.00 747,092.00 726,747.00

4,175.00 3,941,956.00

26,797.00 3,639,585.00 2,454,261.00 642,199.00 523,125.00

20,000.00 3,639,585.00

6,133,291.00 4,142,853.00 724,062.00 1,266,376.00

6,133,291.00

2,729,270.00 2,014,980.00 149,124.00 565,166.00

2,729,270.00

101,074.00 4,127,872.00 2,397,882.00 1,161,794.00 468,196.00 100,000.00 4,127,872.00

41,272.00 5,004,450.00 3,044,472.00 957,690.00 1,002,288.00

5,004,450.00

27,000.00 5,536,917.00 3,337,128.00 912,964.00 1,252,090.00

34,735.00 5,536,917.00

58,648.00 4,253,111.00 2,354,688.00 1,075,216.00 823,207.00

4,253,111.00

41,358.00 4,126,131.00 2,472,747.00 915,957.00 737,427.00

4,126,131.00

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

$1,139,748.00 $156,224,765.00 $96,974,792.00 $24,928,109.00 $33,726,261.00$ 595,603.00 $156,224,765.00
========== ========= ========== ========= ======== ========= :=:-=-==========

- 37 -

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION
ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT) SCHEDULE OF BUDGET TRANSFERS TO OTHER UNITS "B" LOTTERY FOR EDUCATION YEAR ENDED JUNE 30, 1994

SCHEDULE "4"

STATE TECHNICAL INSTITUTES
Albany Technical Institute Altamaha Technical Institute Athens Area Technical Institute Augusta Technical Institute Ben Hill-Irwin Technical Institute Carroll Technical Institute Chattahoochee Technical Institute Columbus Technical Institute Coosa Valley Technical Institute Flint River Technical Institute Griffin Technical Institute Heart of Georgia Technical Institute Lanier Technical Institute Macon Technical Institute Middle Georgia Technical Institute Moultrie Area Technical Institute North Georgia Technical Institute North Metro Technical Institute Ogeechee Technical Institute Okefenokee Technical Institute Pickens Technical Institute South Georgia Technical Institute Southeastern Technical Institute Swainsboro Technical Institute Thomas Technical Institute Valdosta Technical Institute Walker Technical Institute West Georgia Technical Institute

APPROVED BUDGET
------------EQUIPMENT -
STATE SCHOOLS
-----------

FUNDING PROVIDED
------------STATE FUNDS

$ 42,517.00 $ 42,517.00

225,351.00 225,351.00

422,900.00 422,900.00

355,251.00 355,251.00

248,869.00

248,869.00

360,193.00 360,193.00

320,433.00 320,433.00

309,671.00 309,671.00

373,834.00 373,834.00

257,840.00 257,840.00

174,618.00

174,618.00

605,916.00 605,916.00

81,975.00

81,975.00

496,675.00 496,675.00

374,209.00 374,209.00

238,228.00 238,228.00

160,511.00 160,511.00

429,807.00 429,807.00

392,369.00 392,369.00

224,667.00

224,667.00

242,903.00

242,903.00

240,717.00

240,717.00

377,472.00 377,472.00

424,386.00

424,386.00

296,328.00 296,328.00

148,769.00

148,769.00

260,463.00

260,463.00

471,517.00 471,517.00
------------- -------------

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

$8,558,389.00$ 8,558,389.00
============= =============

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)
CASH AND CASH EQUIVALENTS JUNE 30 1 1994
NONINTEREST BEARING ACCOUNTS
NationsBank of Georgia, Atlanta, Georgia INTEREST BEARING ACCOUNTS
Wachovia Bank of Georgia, Atlanta, Georgia
Commercial Interest Checking Account

SCHEDULE "5"
$ -107,497.64 105,414.79
$ -2,082.85

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

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)
SCHEDULE OF GOVERNOR'S EMERGENCY FUND YEAR ENDED JUNE 30. 1994
Provide Incentives to Communities Approved to be Participants in the Certified Literate Community Program
Clarke County Board of Commissioners - Operating Expenses Athens-Clarke County Literate Community Alliance
City of Baxley - Create the Baxley-Appling County Office of Higher Learning

SCHEDULE 611 11
$ 50,000.00 2,500.00
10,000.00 $ 62,500.00

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

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)
SCHEDULE OF FEDERAL REVENUES YEAR ENDED JUNE 30. 1994

SCHEDULE "7"

BUDGET FUND
Commerce, U. S. Department of Measurement and Engineering Research and Standards Through Georgia Institute of Technology
Education, U. S. Department of Adult Education - State Administered Basic Grant Program Direct
Vocational Education - Basic Grants to States Through Georgia Department of Education
Vocational Education - Consumer and Homemaking Education Through Georgia Department of Education
Vocational Education - Community Based Organizations Through Georgia Department of Education
State Literacy Resource Centers Direct
Energy, U. S. Department of State Energy Conservation Stripper Well Oil Violation Funds Through Office of the Governor
Health and Human Services, U. S. Department of State Legalization Impact Assistance Grants Through Georgia Department of Human Resources
Labor, U. S. Department of Job Training Partnership Act Through Georgia Department of Labor
Mine Health and Safety Grants Direct

CFDA NUMBER

AMOUNT

11.609 84.002 84.048 84.049 84.174 84.254
81.041 93.565 17.250 17.600

$ 15,962.90 6,743,181.29
14,164,338.63 312,469.11 156,904.99 223,609.00
455,722.79 191,827.83 2,545,970.07 108,078.55
$24,918,065.16

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

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT) SCHEDULE OF ALLOTMENTS TO STATE TECHNICAL INSTITUTES "A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION
YEAR ENDED JUNE 30. 1994

APPROVED ALLOTMENTS

Albany Technical Institute Altamaha Technical Institute Athens Area Technical Institute Augusta Technical Institute Ben Hill-Irwin Technical Institute Carroll Technical Institute Chattahoochee Technical Institute Columbus Technical Institute Coosa Valley Technical Institute Flint River Technical Institute Griffin Technical Institute Heart of Georgia Technical Institute Lanier Technical Institute Macon Technical Institute Middle Georgia Technical Institute Moultrie Area Technical Institute North Georgia Technical Institute North Metro Technical Institute Ogeechee Technical Institute Okefenokee Technical Institute Pickens Technical Institute South Georgia Technical Institute Southeastern Technical Institute Swainsboro Technical Institute Thomas Technical Institute Valdosta Technical Institute Walker Technical Institute West Georgia Technical Institute

PERSONAL SERVICESINSTITUTIONS
------------

OPERATING EXPENSESINSTITUTIONS
------------

$ 4,828,781.00 $ 417,659.00 $

QUICK START
-PR-O-G-R-A-M-
85,435.76

ADULT LITERACY
--G-R-A-N-T-S -

1,654,256.30 270,619.15

12,565.00 $ 171,076.63

5,491,709.57

464,280.07

51,987.64

544,173.46

7,506,414.00

820,617.03

382,536.94

520,804.44

2,616,552.00

317,273.50

1,649.55

204,504.77

3,192,502.41

380,170.86

481,673.00

4,432,462.32

486,723.78

5,718,003.17

699,933.19

36,965.05

3,320,540.09

190,087.00

136,725.87

348,882.76

2,052,635.00

376,596.00

304,229.42

3,056,881.10

484,719.02

21,674.61

375,803.60

2,296,705.64

407,470.91

325,879.33

3,227,978.83

440,518.45

123,245.17

505,416.86

5,296,613.94

907,350.40

20,033.78

2,499,334.00

287,426.55

356,640.75

2,414,461.00

331,154.85

403.00

220,277.92

4,186,444.97

761,533.15

35,262.38

269,308.53

2,317,278.90

365,769.20

189,261.22

1,849,268.42

222,308.92

649.00

143,208.57

2,325,299.81

267,445.41

241,902.69

2,214,945.34

302,645.50

340.13

367,410.83

3,502,329.98

759,080.47

16,651.55

318,313.99

1,717,154.80

238,887.30

161,174.20

2,217,990.00

287,850.63

4,207.00

314,050.07

3,075,103.00

346,361.30

766.96

193,306.91

3,414,342.45

278,259.41

283,141.66

2,296,467.64

344,082.60

327,956.50

2,474,143.14

316,443.49

48,159.81

285,142.00

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

$91,196,598.82 $11,773,267.14$ 979,259.20 $ 7,453,540.11
============= ============= ============= =============
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 42 -

SCHEDULE "8"

-------J-O-B----------------------

FUNDING PROVIDED

TRAINING PARTNERSHIP

-----ST-A-T-E-----------FE-D-E-R-A-L--------------------

ACT

TOTAL

-----------

FUNDS

REVENUES
--------

TOTAL

$ 40,632.30 $ 5,372,508.06$ 4,672,798.76 $ 699,709.30 $ 5,372,508.06

2,108,517.08 1,977,881.89

130,635.19 2,108,517.08

12,030.96 6,564,181.70 5,825,251.92

738,929.78 6,564,181.70

43,675.86 9,274,048.27 8,140,127.94 1,133,920.33 9,274,048.27

44,421.61 3,184,401.43 2,619,562.55

564,838.88 3,184,401.43

59,115.66 4,113,461.93 3,419,344.00

694,117.93 4,113,461.93

4,919,186.10 4,487,615.00

431,571.10 4,919,186.10

20,033.99 6,474,935.40 5,566,068.40

908,867.00 6,474,935.40

119,040.91 4,115,276.63 3,497,965.87

617,310.76 4,115,276.63

9,449.90 2,742,910.32 2,289,214.00 453,696.32 2,742,910.32

133,795.47 4,072,873.80 3,428,761.61

644,112.19 4,072,873.80

16,083.72 3,046,139.60 2,660,884.16

385,255.44 3,046,139.60

30,713.21 4,327,872.52 3,756,725.07

571,147.45 4,327,872.52

49,864.47 6,273,862.59 5,248,474.78 1,025,387.81 6,273,862.59

19,891.91 3,163,293.21 2,665,106.00

498,187.21 3,163,293.21

68,272.00 3,034,568.77 2,486,008.00

548,560.77 3,034,568.77

10,102.89 5,262,651.92 4,691,645.38

571,006.54 5,262,651.92

2,872,309.32 2,713,066.00

159,243.32 2,872,309.32

2,215,434.91 2,025,482.29

189,952.62 2,215,434.91

2,834,647.91 2,456,902.53

377,745.38 2,834,647.91

25,501.75 2,910,843.55 2,454,260.13

456,583.42 2,910,843.55

4,596,375.99 4,142,738.42

453,637.57 4,596,375.99

2,117,216.30 2,014,980.00

102,236.30 2,117,216.30

89,633.66 2,913,731.36 2,394,869.73

518,861.63 2,913,731.36

33,390.03 3,648,928.20 3,036,094.37

612,833.83 3,648,928.20

26,172.00 4,001,915.52 3,329,938.89

671,976.63 4,001,915.52

54,387.60 3,022,894.34 2,354,688.00

668,206.34 3,022,894.34

12,574.31
-------------

3,136,462.75
--------------

2,472,745.81
-------------

663,716.94
-------------

3,136,462.75
--------------

$ 918,784.21 $112,321,449.48 $96,829,201.50 $15,492,247.98 $112,321,449.48
============= ============== ------------- ============= ==============

- 43 -

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT) SCHEDULE OF ALLOTMENTS TO STATE TECHNICAL INSTITUTES
"B" LOTTERY FOR EDUCATION YEAR ENDED JUNE 30. 1994

SCHEDULE "9"

Albany Technical Institute Altamaha Technical Institute Athens Area Technical Institute Augusta Technical Institute Ben Hill-Irwin Technical Institute Carroll Technical Institute Chattahoochee Technical Institute Columbus Technical Institute Coosa Valley Technical Institute Flint River Technical Institute Griffin Technical Institute Heart of Georgia Technical Institute Lanier Technical Institute Macon Technical Institute Middle Georgia Technical Institute Moultrie Area Technical Institute North Georgia Technical Institute North Metro Technical Institute Ogeechee Technical Institute Okefenokee Technical Institute Pickens Technical Institute South Georgia Technical Institute Southeastern Technical Institute Swainsboro Technical Institute Thomas Technical Institute Valdosta Technical Institute Walker Technical Institute West Georgia Technical Institute
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 44 -

.APPROVED ALLOTMENTS
-------------
EQUIPMENT STATE
SCHOOLS
-----------

FUNDING PROVIDED
------------STATE FUNDS

$ 42,419.78 $ 42,419.78

224,483.96

224,483.96

422,899.34

422,899.34

355,248.00

355,248.00

248,869.00

248,869.00

360,193.00

360,193.00

320,433.00

320,433.00

309,052.00

309,052.00

373,834.00

373,834.00

257,840.00

257,840.00

174,618.00

174,618.00

605,834.31

605,834.31

81,975.00

81,975.00

496,675.00

496,675.00

374,209.00

374,209.00

238,228.00

238,228.00

160,511.00

160,511.00

428,677.82

428,677.82

392,108.98

392,108.98

223,306.55

223,306.55

242,903.00

242,903.00

240,717.00

240,717.00

377,294.36

377,294.36

424,356.93

424,356.93

296,328.00

296,328.00

148,769.00

148,769.00

260,463.00

260,463.00

471,517.00

471,517.00

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

$ 8,553,764.03 $ 8,553,764.03
============= =============

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

SCHEDULE "10"

ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)

ANALYSIS OF PRIOR YEAR'S SURPLUS FUNDS COLLECTED FROM STATE TECHNICAL INSTITUTES

YEAR ENDED JUNE 30, 1994

Albany Technical Institute Altamaha Technical Institute Athens Area Technical Institute Augusta Technical Institute Ben Hill-Irwin Technical Institute Carroll Technical Institute Columbus Technical Institute Coosa Valley Technical Institute Flint River Technical Institute Griffin Technical Institute Heart of Georgia Technical Institute Lanier Technical Institute Middle Georgia Technical Institute Moultrie Area Technical Institute North Georgia Technical Institute North Metro Technical Institute Ogeechee Technical Institute Okefenokee Technical Institute Pickens Technical Institute South Georgia Technical Institute Southeastern Technical Institute Swainsboro Technical Institute Thomas Technical Institute Valdosta Technical Institute Walker Technical Institute

$ 42,933.46 7,971.72 3,504.30 325.80 225.32 4,793.53
82,764.01 1,777.09 5,372.34 3,224.04
37,250.06 577.48
8,672.61 341.82 190.35
13,091.48 14,020.03
513.14 28,479.50 1,788.62 7,786.14 5,431.90 3,028.63 3,214.28 9,297.49
$ 286,575.14

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 45 -

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT) RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL
YEAR ENDED JUNE 30. 1994

SCHEDULE "11"

Totals per Annual Supplement Accruals June 30, 1994 June 30, 1993
Totals per Report
SUMMARY BY OBJECT CLASS
BUDGET FUND Personal Services Travel Other Quick Start Program

SALARIES AND WAGES
---------
$ 4,689,639.01 $

TRAVEL 320,554.60

106.40
-1,617.92
------------- -------------

$ 4,689,639.01 $ 319,043.08
============= =============

$ 2,805,911.05 $ 175,027.90

1,883,727.96

144,015.18

$ 4,689,639.01 $ 319,043.08
============= =============

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 46 -

SECTION IT FINDINGS AND IMPROPER OR QUESTIONED COSTS

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)\ SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994

STATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR QUESTIONED COSTS

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

Audit Control Number

Status ofFinding

415-93-01 415-93-02 415-93-03 415-93-04 415-93-05

See Audit Control Number 415-94-01 See Audit Control Number 415-94-02 Corrective Action Implemented Corrective Action Implemented Corrective Action Implemented

PRIOR YEAR/CURRENT YEAR

ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Audit Control Number 415-94-01

The review report for the year ended June 30, 1993, disclosed that the Administrative Central Office did not provide for adequate separation of duties in the performance of accounting functions and related procedures in the area of General Fixed Assets/Property Management. For the year under review, responsibilities for physical inventories, maintenance of property records and custodial functions were assigned to the same individual.

Separation of duties involving key accounting functions is the basis for achieving an adequate system of internal control. Inadequate separation of duties creates an environment which does not provide reasonable assurance that accounting data and financial statements are accurate and complete.

The Administrative Central Office should review the accounting procedures in place, design procedures which would enhance segregation of duties relative to the General Fixed Assets/Property Management control category, and implement those procedures to strengthen the internal controls over the accounting function.

Memorandum Only Federal Financial Assistance Programs Affected and CFDA Numbers:

84.002 84.048 17.250

Adult Education - State Administered Basic Grant Program Vocational Education - Basic Grants to States Job Training Partnership Act

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)\ SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Equipment Inventory Records Vocational Education - Basic Grants To States (CFDA 84.048) Audit Control Number 415-94-02
The review report for the year ended June 30, 1993, disclosed that the equipment inventory records for the general fixed assets of the Administrative Central Office were deficient. For the year under review, some improvements were made, however, deficiencies remained in equipment inventories located at various colleges and technical institutes operated by local boards of education. Title of this equipment vests with the Department ofTechnical and Adult Education; however, the Administrative Central Office does not monitor or account for this equipment.
The Administrative Central Office should follow established procedures to ensure that equipment inventories are maintained in accordance with Federal Regulations (34 CFR 80.32) and the State Property System Manual.
CURRENT YEAR
BUDGET PREPARATION/EXECUTION Budget Transfer Adjustments Financial Statements Audit Control Number 415-94-03
After the end of the fiscal year, the Administrative Central Office amended the "B" Lottery for Education budget for two State technical institutes in order to provide increased budget availability for expenditures incurred by the Administrative Central Office. Budget adjustments subsequent to the end ofthe fiscal year indicate a lack ofbudgetary controls by the Administrative Central Office.
The Administrative Central Office should strengthen internal controls to ensure that budget availability is determined prior to expenditure of funds.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Improper Travel Reimbursements Financial Statements Audit Control Number 415-94-04
During the year under review, the Administrative Central Office discovered improper travel expenses of $1,348.15 made by employees which included airline tickets for personal use and reimbursement for expenses not incurred. Subsequent to June 30, 1994, the Administrative Central Office terminated the employees involved and secured reimbursement ofthese improper travel expenses.

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)\ SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Improper Travel Reimbursements Financial Statements Audit Control Number 415-94-04
Officials of the Administrative Central Office should exercise care when authorizing request for travel reimbursements to ensure that all travel expenses are proper and legitimate according to established travel policies.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Accountability ofLottery Proceeds Financial Statements Audit Control Number 415-94-05
During the year under review, the Administrative Central Office used lottery proceeds totaling $13,597, 161.48 to purchase equipment ofwhich $11,597,732.07 was for State technical institutes and $1,999,429.41 was for technical institutes operated by local boards of education. The revenues and expenditures for these lottery proceeds are reflected in the financial statements of the Administrative Central Office rather than in the individual technical institutes. This accounting practice results in the financial statements of the affected institutes not reflecting all revenues and expenditures associated with operating the school. The accountability offunds which are designated for specific schools should be reflected in their respective financial statements.
The Administrative Central Office should establish procedures to ensure that the financial statements of all technical institutes reflect all revenues and expenditures associated with operating each respective school.
MONITORING SUBRECIPIENTS Inadequate Subrecipient Monitoring Procedures Federal Financial Assistance Vocational Education-Basic Grants to States (CFDA 84.048) Job Training Partnership Act (CFDA 17.250) Audit Control Number 415-94-06
Our review included an analysis of the procedures used by the Administrative Central Office in monitoring subrecipients. The deficiencies noted are as follows:
(1) Subrecipient applications for the Vocational Education - Basic Grants to States program were reviewed to determine if applications were approved before funding was provided. Our examination revealed that eight applications for the grant period of July 1993 through June 1994 were approved later in the months of April and May 1994 after funds were disbursed.

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE (OVERSIGHT UNIT)\ SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR
MONITORING SUBRECIPIENTS Inadequate Subrecipient Monitoring Procedures Federal Financial Assistance Vocational Education-Basic Grants to States (CFDA 84.048) Job Training Partnership Act (CFDA 17.250) Audit Control Number 415-94-06
(2) Subrecipient monitoring procedures for the Job Training Partnership Act program were reviewed to determine if on-site financial monitoring as well as quarterly performance, compliance and programmatic reviews were conducted during the course of contract with subrecipients. Our examination revealed that of the fifty-nine subrecipients identified, forty had not received on-site financial reviews and five had not received programmatic or compliance reviews.
The Administrative Central Office should establish appropriate internal controls to ensure that local applications are approved before granting funds to subrecipients and that all subrecipients are reviewed as required by Section 862.7 of the Georgia Department ofLabor's Program Management Manual.