Technical College System of Georgia, System Office (Oversight Unit), management report for fiscal year ended June 30, 2012

TECHNICAL COLLEGE SYSTEM OF GEORGIA
SYSTEM OFFICE (OVERSIGHT UNIT)
MANAGEMENT REPORT FOR FISCAL YEAR ENDED JUNE 30, 2012
Georgia Department of Audits and Accounts Greg S. Griffin State Auditor

TECHNICAL COLLEGE SYSTEM OF GEORGIA SYSTEM OFFICE (OVERSIGHT UNIT)
- TABLE OF CONTENTS -

SECTION I
FINANCIAL
LETTER OF TRANSMITTAL
SELECTED FINANCIAL INFORMATION
EXHIBITS
A STATEMENT OF NET ASSETS - (GAAP BASIS)
B STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS (GAAP BASIS)
C STATEMENT OF CASH FLOWS - (GAAP BASIS)
D SELECTED FINANCIAL NOTES
SUPPLEMENTARY INFORMATION
SCHEDULES
1 BALANCE SHEET - (STATUTORY BASIS) - BUDGET FUND 2 SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT
(STATUTORY BASIS) BUDGET FUND 3 STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET
BY PROGRAM AND FUNDING SOURCE (STATUTORY BASIS) BUDGET FUND
4 STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE (STATUTORY BASIS) BUDGET FUND
5 RECONCILIATION OF SALARIES AND TRAVEL

Page
2 3 4 5
20 21 22 24 27

SECTION II FINDINGS, QUESTIONED COSTS AND OTHER ITEMS SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS

SECTION I FINANCIAL

Greg S. Griffin
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
December 27, 2012

Honorable Nathan Deal, Governor Members of the General Assembly of Georgia Members of the State Board of the Technical College System of Georgia
and Honorable Ronald Jackson, Commissioner Technical College System of Georgia System Office (Oversight Unit)
Ladies and Gentlemen:
As part of our audit of the basic financial statements of the State of Georgia presented in the State of Georgia Comprehensive Annual Financial Report and the issuance of a State of Georgia Single Audit Report pursuant to the Single Audit Act Amendments, as of and for the year ended June 30, 2012, we have performed certain audit procedures at Technical College System of Georgia System Office (Oversight Unit). Accordingly, the financial statements and compliance activities of Technical College System of Georgia System Office (Oversight Unit) were examined to the extent considered necessary in order to express an opinion as to the fair presentation of the financial statements contained in the foregoing documents and to issue reports on compliance and internal control as required by the Single Audit Act Amendments of 1996.
This Management Report contains information pertinent to the financial and compliance activities of Technical College System of Georgia System Office (Oversight Unit) as of and for the year ended June 30, 2012. Information contained in this report is a by-product of our audit of the basic financial statements of the State of Georgia and is the representation of management. Accordingly, we do not express an opinion or any other form of assurance on it. The particular information provided which includes a section on findings and other items reported in accordance with Commission on Colleges regulation 2.11.1, is enumerated in the Table of Contents.
This report is intended solely for the information and use of management of Technical College System of Georgia and members of the State Board of the Technical College System of Georgia and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully,

GSG:as

Greg S. Griffin State Auditor

SELECTED FINANCIAL INFORMATION - 1 -

TECHNICAL COLLEGE SYSTEM OF GEORGIA SYSTEM OFFICE (OVERSIGHT UNIT)
STATEMENT OF NET ASSETS - (GAAP BASIS) JUNE 30, 2012
ASSETS
Current Assets Cash and Cash Equivalents Accounts Receivable, Net State Appropriations Federal Financial Assistance Other Prepaid Items
Total Current Assets
Noncurrent Assets Capital Assets, Net
Total Assets
LIABILITIES
Current Liabilities Accounts Payable Salaries Payable Grants Payable Deferred Revenue Funds Held for Others Capital Leases Compensated Absences
Total Current Liabilities
Noncurrent Liabilities Capital Leases Compensated Absences
Total Noncurrent Liabilities
Total Liabilities
NET ASSETS
Invested in Capital Assets, Net of Related Debt Restricted
Expendable Unrestricted
Total Net Assets

EXHIBIT "A"

$ 231,311.98
2,929,423.24 3,510,338.38 6,752,564.47
229,996.22
$ 13,653,634.29
15,322,990.00
$ 28,976,624.29

$ 4,650,656.68 4,442.80
6,366,983.37 315,718.61 71,917.00 18,223.94
1,090,281.70
$ 12,518,224.10

$

53,167.15

964,217.71

$ 1,017,384.86

$ 13,535,608.96

$ 15,251,598.91
41,403.75 148,012.67

$ 15,441,015.33

- 2 -

TECHNICAL COLLEGE SYSTEM OF GEORGIA SYSTEM OFFICE (OVERSIGHT UNIT)
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - (GAAP BASIS) YEAR ENDED JUNE 30, 2012

EXHIBIT "B"

OPERATING REVENUES
Sales and Services Other Operating Revenues
Total Operating Revenues
OPERATING EXPENSES
Salaries Benefits Travel Utilities Supplies and Other Services Depreciation
Total Operating Expenses
Operating Income (Loss)
NONOPERATING REVENUES (EXPENSES)
State Appropriations Grants and Contracts
Federal State Local Expenses Gifts Interest Expense (Capital Assets) Other Nonoperating Revenues
Net Nonoperating Revenues
Income (Loss) Before Other Revenues, Expenses, Gains, or Losses
Capital Grants and Gifts Loss on Disposal of Capital Assets
Increase (Decrease) in Net Assets
Net Assets - Beginning of Year
Net Assets - End of Year

$

1,431,781.64

197,098.29

$

1,628,879.93

$ 14,921,948.84 7,469,456.98 690,324.44 412,942.47
34,443,729.23 1,359,191.52
$ 59,297,593.48
$ -57,668,713.55

$ 37,357,704.84

9,787,971.36 260,135.36 58,417.97
-28,657,570.68 38,399,840.92
-6,019.94 181.00

$ 57,200,660.83

$

-468,052.72

-9,976.30

$

-478,029.02

15,919,044.35

$ 15,441,015.33

- 3 -

TECHNICAL COLLEGE SYSTEM OF GEORGIA SYSTEM OFFICE (OVERSIGHT UNIT)
STATEMENT OF CASH FLOWS - (GAAP BASIS) YEAR ENDED JUNE 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES Sales and Services of Educational Departments Payments to Suppliers Payments to Employees Other Receipts (Payments)
Net Cash Provided (Used) by Operating Activities
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES State Appropriations Agency Funds Transactions Gifts and Grants Received for Other than Capital Purposes Other Nonoperating Receipts
Net Cash Flows Provided (Used) by Noncapital Financing Activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchases of Capital Assets Principal Paid on Capital Debt Interest Paid on Capital Debt
Net Cash Provided (Used) by Capital and Related Financing Activities
Net Increase (Decrease) in Cash
Cash and Cash Equivalents - Beginning of Year
Cash and Cash Equivalents - End of Year
RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating Income (Loss) Adjustments to Reconcile Operating Income to Net Cash
Provided (Used) by Operating Activities Depreciation Expense Change in Assets and Liabilities: Prepaid Items Salaries Payable Accounts and Grants Payable Compensated Absences
Net Cash Provided (Used) by Operating Activities
NONCASH ACTIVITY Fixed Assets Acquired by Incurring Capital Lease Obligations

EXHIBIT "C"

$ 1,431,781.64 -35,523,361.11 -14,944,672.82 197,098.29
$ -48,839,154.00

$ 34,515,683.87 14,130.37
11,445,286.80 2,900,071.63
$ 48,875,172.67

$

-413,765.57

-10,394.12

-6,019.94

$

-430,179.63

$

-394,160.96

625,472.94

$

231,311.98

$ -57,668,713.55
1,359,191.52 189,258.58 -26,827.35
7,305,734.28 2,202.52
$ -48,839,154.00

$

81,725.21

- 4 -

TECHNICAL COLLEGE SYSTEM OF GEORGIA
SYSTEM OFFICE (OVERSIGHT UNIT) SELECTED FINANCIAL NOTES
JUNE 30, 2012

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Technical College System of Georgia, 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 the Technical College System of Georgia is composed of one member from each Congressional District in the State and nine at large members appointed by the Governor and confirmed by the Senate for five-year terms. The Commissioner is the chief executive officer of the System and is selected by the State Board to serve at its pleasure

The System 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 System also does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, the Technical College System of Georgia is included within the State of Georgia reporting entity for financial reporting purposes because of the significance of its legal, operational and financial relationships with the State of Georgia. These reporting entity relationships are defined in Section 2100 of the Governmental Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial Reporting Standards.

The System Office of the Technical College System of Georgia is the "Oversight Unit" of the System and performs administrative functions and provides guidance to the twenty-five (25) State Technical Colleges, which are organizational units of the Technical College System of Georgia.

The accompanying financial statements represent only the financial position and results of operations of the System Office of the Technical College System of Georgia. The financial position and results of operations of other organizational units of the System (various State Technical Colleges) are not included in these financial statements.
NET ASSETS
The System Office's net assets are classified as follows:

Invested in capital assets, net of related debt: This amount represents the System Office's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt.

Restricted net assets - expendable: Restricted expendable net assets include resources in which the System Office is legally or contractually obligated to spend resources in accordance with restrictions imposed by external third parties.

Unrestricted net assets: Unrestricted net assets represent available resources derived from state appropriations and sales and services of educational departments. These resources will be used for transactions relating to the educational and general operations of the System Office, and may be used at the discretion of the governing board to meet subsequent fiscal year expenses for those purposes, except for unexpended state appropriations (surplus) of $43,578.73. Unexpended state appropriations must be refunded to the Office of the State Treasurer.

When an expense is incurred that can be paid using either restricted or unrestricted resources, the System Office's policy is to first apply the expense towards unrestricted resources, and then towards restricted resources.

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TECHNICAL COLLEGE SYSTEM OF GEORGIA
SYSTEM OFFICE (OVERSIGHT UNIT) SELECTED FINANCIAL NOTES
JUNE 30, 2012

EXHIBIT "D"

NOTE 2: DEPOSITS
DEPOSITS
The custodial credit risk for deposits is the risk that in the event of a bank failure, the System Office's deposits may not be recovered. Funds belonging to the State of Georgia (and thus the System Office) 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 of the following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59:

1. Bonds, bills, certificates of indebtedness, notes, or other direct obligations of the United
States or of the State of Georgia.

2. Bonds, bills, certificates of indebtedness, notes, or other obligations of the counties or
municipalities of the State of Georgia.

3. Bonds of any public authority created by the laws of the State of Georgia, providing that the
statute that created the authority authorized the use of the bonds for this purpose.

4. Industrial revenue bonds and bonds of development authorities created by the laws of the
State of Georgia.

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, or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

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

At June 30, 2012, the carrying value of deposits was $231,311.98 and the bank balance was $2,840,446.43. The entire bank balance was insured by the Federal Deposit Insurance Corporation under the Dodd-Frank Wall Street Reform and Consumer Protection Act.
NOTE 3: ACCOUNTS RECEIVABLE Accounts receivable at June 30, 2012, consists of the following:

State Appropriations

$

2,929,423.24

Federal, State and Private Funds

3,511,242.32

Georgia State Financing and Investment Commission

6,751,660.53

Total Accounts Receivable

$ 13,192,326.09

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TECHNICAL COLLEGE SYSTEM OF GEORGIA
SYSTEM OFFICE (OVERSIGHT UNIT) SELECTED FINANCIAL NOTES
JUNE 30, 2012

NOTE 4: CAPITAL ASSETS Following are the changes in capital assets for the year ended June 30, 2012:

Beginning Balance July 1, 2011

Additions

Reductions

EXHIBIT "D"
Ending Balance June 30, 2012

Capital Assets, Being Depreciated: Building and Building Improvements Improvements Other Than Buildings Capital Leases Equipment

$ 15,071,763.61 527,101.00 0.00 $
7,937,367.81

81,785.21 413,765.57 $

$ 384,434.39

15,071,763.61 527,101.00 81,785.21
7,966,698.99

Total Assets Being Depreciated

$ 23,536,232.42 $

495,550.78 $

Less: Accumulated Depreciation: Building and Building Improvements Improvements Other Than Buildings Capital Leases Equipment

$ 1,328,199.20 $ 65,332.68 0.00
5,946,093.50

339,114.68 26,355.05 8,958.27
984,763.52 $

Total Accumulated Depreciation

$ 7,339,625.38 $ 1,359,191.52 $

Capital Assets, Net

$ 16,196,607.04 $ -863,640.74 $

NOTE 5: DEFERRED REVENUE Deferred revenue at June 30, 2012, consists of the following:

384,434.39 $ 23,647,348.81

$ 374,458.09

1,667,313.88 91,687.73 8,958.27
6,556,398.93

374,458.09 $ 8,324,358.81

9,976.30 $ 15,322,990.00

Federal Grants and Contracts Other Deferred Revenue

$ 313,200.00 2,518.61

Total Deferred Revenue

$ 315,718.61

NOTE 6: LONG-TERM LIABILITIES Long-Term liability activity for the year ended June 30, 2012 was as follows:

Beginning Balance July 1, 2011

Additions

Reductions

Ending Balance June 30, 2012

Current Portion

Leases

Lease Obligations

$

0.00 $ 81,785.21 $ 10,394.12 $ 71,391.09 $ 18,223.94

Other Liabilities Compensated Absences

2,052,296.89 1,256,997.93 1,254,795.41 2,054,499.41 1,090,281.70

Total Long-Term Obligations $ 2,052,296.89 $ 1,338,783.14 $ 1,265,189.53 $ 2,125,890.50 $ 1,108,505.64

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TECHNICAL COLLEGE SYSTEM OF GEORGIA SYSTEM OFFICE (OVERSIGHT UNIT) SELECTED FINANCIAL NOTES JUNE 30, 2012
NOTE 7: NET ASSETS
Changes in Net Asset activity for the year ended June 30, 2012 was as follows:

EXHIBIT "D"

Beginning Balance July 1, 2011

Additions

Reductions

Ending Balance June 30, 2012

Invested in Capital Assets Net of Related Debt

$ 16,196,607.04 $ -863,640.74 $

81,367.39 $

15,251,598.91

Restricted Net Assets

594,498.23

9,787,971.36 10,341,065.84

41,403.75

Unrestricted Net Assets

-872,060.92 77,705,160.22 76,685,086.63

148,012.67

Total Net Assets

$ 15,919,044.35 $ 86,629,490.84 $ 87,107,519.86 $

15,441,015.33

NOTE 8: LEASE OBLIGATIONS

CAPITAL LEASES

The System Office acquires copiers 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 of any 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 requiring appropriation by the General Assembly of Georgia are considered noncancellable for

financial reporting purposes.

Original

Accumulated

Cost

Depreciation

Net Value

Equipment

$

81,785.21 $

8,958.27 $ 72,826.94

OPERATING LEASES
Technical College System of Georgia has entered into certain agreements to lease buildings, copiers and equipment which are classified as operating leases (leases on assets not recorded on the balance sheet). These leases generally contain provisions that, at the expiration date of the original term of the lease, the System Office has the option of renewing the lease on a year-to-year basis. Amounts are included only for multi-year leases and for cancelable leases for which an option to renew for the subsequent fiscal year has been exercised.

Expenses for rental of buildings, copiers and equipment under operating leases for the year ended June 30, 2012, totaled $2,056,103.17.

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TECHNICAL COLLEGE SYSTEM OF GEORGIA
SYSTEM OFFICE (OVERSIGHT UNIT) SELECTED FINANCIAL NOTES
JUNE 30, 2012

EXHIBIT "D"

SUMMARY OF LEASE OBLIGATIONS

Future commitments for capital leases (which here and on the Statement of Net Assets include other

installment purchase agreements) and for noncancellable operating leases having remaining terms

in excess of one year as of June 30, 2012, were as follows:

Real Property and Equipment

Capital

Operating

Leases

Leases

Year Ending June 30: 2013 2014 2015 2016 2017 2018 - 2022 2023 - 2027 2028 - 2032 2033 - 2037

$

25,980.84 $

2,102,098.36

25,980.82

2,066,604.00

25,980.84

2,109,791.21

9,566.78

2,146,647.48

2,200,167.12

8,407,994.64

4,018,777.92

4,550,047.08

1,984,224.84

Total Minimum Lease Payments

$

87,509.28 $ 29,586,352.65

Less: Interest

16,118.19

Principal Outstanding

$

71,391.09

NOTE 9: RETIREMENT PLANS
Technical College System Office participates in various retirement plans administered by the State of Georgia under two major retirement systems: Employees' Retirement System of Georgia (ERS System) and Teachers Retirement System of Georgia. These two systems issue separate publicly available financial reports that include the applicable financial statements and required supplementary information. The reports may be obtained from the respective system offices. The significant retirement plans that Technical College System Office participates in are described below. More detailed information can be found in the plan agreements and related legislation. Each plan, including benefit and contribution provisions, was established and can be amended by State law.

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
The ERS System is comprised of individual retirement systems and plans covering substantially all employees of the State of Georgia except for teachers and other employees covered by the Teachers Retirement System of Georgia. One of the ERS System plans, the Employees' Retirement System of Georgia (ERS), is a cost-sharing multiple-employer defined benefit pension plan that was established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees and has the powers and privileges of a corporation. ERS acts pursuant to statutory direction and guidelines, which may be amended prospectively for new hires but for existing members and beneficiaries may be amended in some aspects only subject to potential application of certain constitutional restraints against impairment of contract.

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TECHNICAL COLLEGE SYSTEM OF GEORGIA
SYSTEM OFFICE (OVERSIGHT UNIT) SELECTED FINANCIAL NOTES
JUNE 30, 2012

EXHIBIT "D"

On November 20, 1997, the Board created the Supplemental Retirement Benefit Plan (SRBP-ERS) of ERS. SRBP-ERS was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of ERS. The purpose of the SRBP-ERS is to provide retirement benefits to employees covered by ERS whose benefits are otherwise limited by IRC Section 415. Beginning January 1, 1998, all members and retired former members in ERS are eligible to participate in the SRBP-ERS whenever their benefits under ERS exceed the limitation on benefits imposed by IRC Section 415.

The benefit structure of ERS is established by the Board of Trustees under statutory guidelines. Unless the employee elects otherwise, an employee who currently maintains membership with ERS based upon State employment that started prior to July 1, 1982, is an "old plan" member subject to the plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are "new plan" members subject to the modified plan provisions. Effective January 1, 2009, newly hired State employees, as well as rehired State employees who did not maintain eligibility for the "old" or "new" plan, are members of the Georgia State Employees' Pension and Savings Plan (GSEPS). Members of the GSEPS plan may also participate in the GSEPS 401(k) defined contribution component described below. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to the GSEPS plan.

Under the old plan, new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60.

Retirement benefits paid to members are based upon a formula adopted by the Board of Trustees for such purpose. The formula considers the monthly average of the member's highest 24 consecutive calendar months of salary, the number of years of creditable service, and the member's age at retirement. Post-retirement cost-of-living adjustments may be made to member's benefits provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS.

Member contribution rates are set by law. Member contributions under the old plan are 4% of annual compensation up to $4,200 plus 6% of annual compensation in excess of $4,200. Under the old plan, Technical College System Office pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these Technical College System Office contributions are included in the member's accounts for refund purposes and are used in the computation of the member's earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. Technical College System Office is required to contribute at a specified percentage of active member payroll established by the Board of Trustees determined annually in accordance with actuarial valuation and minimum funding standards as provided by law. These Technical College System of Georgia contributions are not at any time refundable to the member or his/her beneficiary.

Employer contributions required for fiscal year 2012 were based on the June 30, 2009 actuarial valuation as follows:

Old Plan* New Plan GSEPS

11.63% 11.63%
7.42%

* 6.88% exclusive of contributions paid by the employer on behalf of old plan members

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TECHNICAL COLLEGE SYSTEM OF GEORGIA
SYSTEM OFFICE (OVERSIGHT UNIT) SELECTED FINANCIAL NOTES
JUNE 30, 2012

EXHIBIT "D"

Members become vested after 10 years of service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits.

TEACHERS RETIREMENT SYSTEM OF GEORGIA
The Teachers Retirement System of Georgia (TRS) is a cost-sharing multiple-employer defined benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS.

On October 25, 1996, the Board created the Supplemental Retirement Benefit Plan of the Georgia Teachers Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1, 1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits.

TRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by State statute. A member is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service.

Normal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 60 or by 7% for each year or fraction thereof by which the member has less than 30 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available.

TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 10 years of service. If a member terminates with less than 10 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2012 were 5.53% of annual salary. Employer contributions required for fiscal year 2012 were 10.28% of annual salary as required by the June 30, 2009, actuarial valuation.

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TECHNICAL COLLEGE SYSTEM OF GEORGIA
SYSTEM OFFICE (OVERSIGHT UNIT) SELECTED FINANCIAL NOTES
JUNE 30, 2012

EXHIBIT "D"

The following table summarizes Technical College System Office's contributions by defined benefit plan for the years ending June 30, 2012, June 30, 2011, and June 30, 2010:

Fiscal Year

ERS

Required

Percentage

Contribution

Contributed

TRS

Required

Percentage

Contribution

Contributed

2012 2011 2010

$ 853,473.95 $ 806,295.92 $ 805,897.81

100% 100% 100%

$ 671,992.63 $ 696,702.63 $ 690,894.90

100% 100% 100%

GSEPS 401(K) DEFINED CONTRIBUTION COMPONENT

In addition to the ERS defined benefit pension described above, GSEPS members may also participate in the Peach State Reserves 401(k) defined contribution plan and receive an employer matching contribution. The 401(k) plan is administered by the ERS System and was established by the State of Georgia Employee Benefit Plan Council in accordance with State law and Section 401(k) of the Internal Revenue Code. The GSEPS segment of the 401(k) plan was established by State law effective January 1, 2009. Plan provisions and contribution requirements specific to GSEPS can be amended by State law. Other general 401(k) plan provisions can be amended by the ERS Board of Trustees as required by changes in Federal tax law or for administrative purposes. The State was not required to make significant contributions to the 401(k) plan prior to GSEPS because most members under other segments of the plan either were not State employees or were not eligible to receive an employer match on their contributions.

The GSEPS plan includes automatic enrollment in the 401(k) plan at a contribution rate of 1% of salary, along with a matching contribution from the State. The State will match 100% of the employee's initial 1% contribution. Employees can elect to contribute up to an additional 4% and the State will match 50% of the additional 4% of salary. Therefore, the State will match 3% against the employee's 5% total savings. Contributions greater than 5% do not receive any matching funds.

GSEPS employer contributions are subject to a vesting schedule, which determines eligibility to receive all or a portion of the employer contribution balance at the time of any distribution from the account after separation from all State service. Vesting is determined based on the following schedule:

Less than 1 year 1 year 2 years 3 years 4 years 5 or more years

0% 20% 40% 60% 80% 100%

Employee contributions and earnings thereon are 100% vested at all times. The 401(k) plan also allows participants to roll over amounts from other qualified plans to their respective account in the 401(k) plan on approval of the 401(k) plan administrator. Such rollovers are 100% vested at the time of transfer. Participant contributions are invested according to the participant's investment election. If the participant does not make an election, investments are automatically defaulted to a Lifecycle fund based on the participant's date of birth.

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TECHNICAL COLLEGE SYSTEM OF GEORGIA
SYSTEM OFFICE (OVERSIGHT UNIT) SELECTED FINANCIAL NOTES
JUNE 30, 2012

EXHIBIT "D"

The participants may receive the value of their vested accounts upon attaining age 59.5, qualifying financial hardship, or retirement or other termination of service (employer contribution balances are only eligible for distribution upon separation from service). Upon the death of a participant, his or her beneficiary shall be entitled to the vested value of his or her accounts. Distributions are made in installments or in a lump sum.

In 2012, the Technical College System Office employer and employee GSEPS contributions were $20,335.32 and $45,844.57, respectively.

DEFINED CONTRIBUTION PLAN
Plan Description Technical College System Office participates in the Georgia Defined Contribution Plan (GDCP) which is a single-employer defined contribution plan established by the General Assembly of Georgia for the purpose of providing retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees of the Employees' Retirement System of Georgia.

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

The Employees' Retirement System of Georgia issues a financial report each fiscal year which may be obtained through ERS.

Contributions and Vesting Member contributions are seven and one-half percent (7.5%) of gross salary. There are no employer contributions. Contribution rates are established by State statute. Earnings are credited to each member's account in a manner established by the Board of Trustees. Upon termination of employment, the amount of the member's account is refundable upon request by the member. The System Office's payroll for the year ended June 30, 2012, for employees covered by GDCP was $420,016.76. The System Office's total payroll for all employees was $14,921,948.84.

Total contributions made by employees during fiscal year 2012 amounted to $31,481.26 which represents 7.5% of covered payroll. These contributions met the requirements of the plan.

NOTE 10: POST-EMPLOYMENT BENEFITS
Technical College System Office participates in the following State of Georgia post-employment benefit plans: the Georgia State Employees Post-employment Health Benefit Fund (administered by the Department of Community Health) and the State Employees' Assurance Department OPEB/Active Plans (administered by the ERS System). Separate financial reports that include the applicable financial statements and required supplementary information for these plans are publicly available and may be obtained from the offices that administer the plans.

- 13 -

TECHNICAL COLLEGE SYSTEM OF GEORGIA
SYSTEM OFFICE (OVERSIGHT UNIT) SELECTED FINANCIAL NOTES
JUNE 30, 2012

EXHIBIT "D"

GEORGIA STATE EMPLOYEES POST-EMPLOYMENT HEALTH BENEFIT FUND
The Georgia State Employees Post-employment Health Benefit Fund (State OPEB Fund) is a costsharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of State organizations (including technical colleges) and other entities authorized by law to contract with the Department of Community Health for inclusion in the plan. The State OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the health insurance plan for State employees. The Official Code of Georgia Annotated (OCGA) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board).

The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. For members with fewer than five years of service as of January 1, 2012, contributions also vary based on years of service. On average, members with five years or more of service as of January 1, 2012, pay approximately 25 percent of the cost of the health insurance coverage. In accordance with the Board resolution dated December 8, 2011, for members with fewer than five years of service as of January 1, 2012, the State provides a premium subsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater than the subsidy percentage offered to active employees) for 30 or more years of service. The subsidy for eligible dependents ranges from 0% to 55% (but no greater than the subsidy percentage offered to dependents of active employees minus 20%). No subsidy is available to Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of Community Health sets all member premiums by resolution and in accordance with the law and applicable revenue and expense projections. Any subsidy policy adopted by the Board may be changed at any time by Board resolution and does not constitute a contract or promise of any amount of subsidy.

Participating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected "pay-as-you-go" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years.

The combined required contribution rates established by the Board for the active and retiree plans for the fiscal year ended June 30, 2012, were as follows:

June 2011 July - November 2011 December 2011 - April 2012 May - June 2012

22.667% of covered payroll for July 2011 coverage 27.363% of covered payroll for August - December 2011 coverage 34.063% of covered payroll for January - May 2012 coverage 27.363% of covered payroll for June - July 2012 coverage

No additional contribution was required by the Board for fiscal year 2012 nor contributed to the State OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the State plan for other post-employment benefits and are subject to appropriation.

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TECHNICAL COLLEGE SYSTEM OF GEORGIA
SYSTEM OFFICE (OVERSIGHT UNIT) SELECTED FINANCIAL NOTES
JUNE 30, 2012

EXHIBIT "D"

The following table summarizes the Technical College System Office's combined active and retiree contributions to the health insurance plans for the years ended June 30, 2012, June 30, 2011, and June 30, 2010 (dollars in thousands):

Fiscal Year

Percentage Contributed

Required Contribution

2012 2011 2010

100% 100% 100%

$

4,324,400.42

$

3,720,150.74

$

3,068,653.96

STATE EMPLOYEES' ASSURANCE DEPARTMENT
State Employees' Assurance Department-OPEB (SEAD-OPEB) and State Employees' Assurance DepartmentActive (SEAD-Active) are cost-sharing multiple-employer defined benefit postemployment plans that were created in fiscal year 2007 by the Georgia General Assembly to provide term life insurance to eligible members of Employees' (ERS), Judicial (JRS), and Legislative (LRS) Retirement Systems. SEAD-OPEB provides benefits for retired and vested inactive members, and SEAD-Active provides benefits for active members. Effective July 1, 2009, no newly hired members of any State public retirement system are eligible for term life insurance under SEAD. Pursuant to Title 47 of the OCGA, benefit provisions of the plan were established and can be amended by State statute.

Contributions by plan members are established by the ERS Board of Trustees, up to the maximum allowed by statute (not to exceed 0.5% of earnable compensation). The ERS Board of Trustees establishes employer contribution rates, such rates which, when added to member's contributions, shall not exceed 1% of earnable compensation.

For the SEAD-OPEB plan, the fiscal year ended June 30, 2012 contributions of ERS "old plan" members were 0.45% of earnable compensation, 0.22% of which was paid by the employer. Contributions of ERS "new plan" members and of members of the Judicial and Legislative Retirement Systems were 0.23% of earnable compensation.

For the SEAD-Active plan, the fiscal year ended June 30, 2012 contributions of ERS "old plan" members were 0.05% of earnable compensation, 0.03% of which was paid by the employer. Contributions of ERS "new plan" members and of members of the Judicial and Legislative Retirement Systems were 0.02% of earnable compensation.

The SEAD-OPEB annual required employer contribution was 0.61% of payroll for fiscal year 2012 based on the actuarial valuation as of June 30, 2009. The ERS Board of Trustees voted and approved that the SEAD-OPEB employer contribution would be paid from existing assets of the Survivors Benefit Fund (SBF) instead of requiring payment by the employers. The contribution by SBF made on-behalf of Technical College System Office for fiscal year 2012 was estimated to be $39,358.40. There were no required employer contributions for the SEAD plans for the fiscal years ended June 30, 2011, and 2010.

- 15 -

TECHNICAL COLLEGE SYSTEM OF GEORGIA
SYSTEM OFFICE (OVERSIGHT UNIT) SELECTED FINANCIAL NOTES
JUNE 30, 2012

EXHIBIT "D"

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 expenses which are disallowed under grant terms. The amount of expenses which may be disallowed by the grantor cannot be determined at this time although the Technical College System Office expects such amounts, if any, to be immaterial to its overall financial position.

Litigation, claims and assessments filed against the Technical College System Office, if any, are generally considered to be actions against the State of Georgia. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 2012.

NOTE 12: AFFILIATED ORGANIZATIONS
The Technical College System of Georgia Foundation, Inc. is a legally separate, tax exempt organization whose activities primarily support Technical College System of Georgia. This affiliated organization is considered a potential component unit of the State of Georgia in accordance with GASB Statement No. 39, Determining Whether Certain Organizations are Component Units. Therefore, the financial statements of the affiliated organization are not included in these financial statements. Copies of the financial statements for the affiliated organization may be obtained from Technical College System Office

NOTE 13: SUPPLEMENTARY INFORMATION
The supplementary information presented on Schedules 1, 2, 3 and 4 was prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. The information was derived from, and relates directly to, the same information used to prepare the financial statements. However, the budgetary statutes and regulations of the State of Georgia require reporting of certain information that is not in accordance with generally accepted accounting principles.

- 16 -

TECHNICAL COLLEGE SYSTEM OF GEORGIA SYSTEM OFFICE (OVERSIGHT UNIT) SELECTED FINANCIAL NOTES JUNE 30, 2012

EXHIBIT "D"

Presented below is a reconciliation of the fund balance of the Budget Fund, as reported on Schedule 1, to Net Assets of business-type activities, as reported on Exhibit A.

Total Fund Balances - Budget Fund - Non-GAAP Basis (Schedule "1")

$

84,982.48

Amounts reported for Business-Type Activities in the Statement of Net Assets are different because:

Capital Assets used in Business-Type Activities are not reported in the Budget Fund.

15,322,990.00

Georgia State Financing and Investment Commission (GSFIC) projects are not reported as a component of the Budget Fund. Assets Liabilities Total Net Effect of GSFIC Activity

$ 3,229,720.38 -2,697,207.72

532,512.66

Agency Fund activities are not reported as a component of the Budget Fund. Assets Liabilities Total Net Effect of Agency Fund Activity

$

76,378.89

-73,585.04

2,793.85

The budgetary basis of accounting implemented by the State of Georgia recognizes expenditures when encumbered. The following adjustments were made to eliminate this activity for reporting on the Statement of Net Assets. Payables reported in the Budget Fund that are based on encumbrances are eliminated for GAAP reporting. Reimbursement from grantors reported as revenues in the Budget Fund that are for expenditures based on encumbrances are deferred for GAAP reporting. Total Net Effect of Encumbrance Activity

$ 8,306,328.82 -315,718.61

7,990,610.21

Certain Liabilities are not due and payable in the current period and therefore are not reported as liabilities in the Budget Fund. Grants Payable Capital Leases Payable Compensated Absences Payable Total Liabilities

$ -6,366,983.37 -71,391.09
-2,054,499.41

-8,492,873.87

Net Assets of Business-Type Activities (Exhibit "A")

$ 15,441,015.33

- 17 -

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SUPPLEMENTARY INFORMATION - 19 -

TECHNICAL COLLEGE SYSTEM OF GEORGIA SYSTEM OFFICE (OVERSIGHT UNIT) BALANCE SHEET (STATUTORY BASIS) BUDGET FUND JUNE 30, 2012
ASSETS
Cash and Cash Equivalents Accounts Receivable
State Appropriations Federal Financial Assistance Other Prepaid Expenditures
Total Assets
LIABILITIES AND FUND EQUITY
Liabilities Salaries Payable Accounts Payable Encumbrance Payable
Total Liabilities
Fund Balances Reserved Federal Financial Assistance Local Grants and Contracts Unreserved Surplus
Total Fund Balances
Total Liabilities and Fund Balances

SCHEDULE "1"

$

180,517.19

2,929,423.24 6,768,354.27
239,244.10 229,996.22

$

10,347,535.02

$

4,442.80

1,951,780.92

8,306,328.82

$

10,262,552.54

$

3,321.32

38,082.43

43,578.73

$

84,982.48

$

10,347,535.02

Statutory Basis financial information was prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles.
- 20 -

TECHNICAL COLLEGE SYSTEM OF GEORGIA SYSTEM OFFICE (OVERSIGHT UNIT)
SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT (STATUTORY BASIS) BUDGET FUND
YEAR ENDED JUNE 30, 2012

SCHEDULE "2"

REVENUES
State Appropriation State General Funds
Federal Funds Other Funds
Total Revenues
CARRY-OVER FROM PRIOR YEAR
Transfer from Reserved Fund Balance
Total Funds Available
EXPENDITURES
Adult Literacy Departmental Administration Economic Development Technical Education
Total Expenditures
Excess of Funds Available over Expenditures
FUND BALANCE JULY 1
Reserved Unreserved
ADJUSTMENTS
Prior Year Payables/Expenditures Prior Year Receivables/Revenues Unreserved Fund Balance (Surplus) Returned
From the Technical Colleges Year Ended June 30, 2011
Unreserved Fund Balance (Surplus) Returned to Office of the State Treasurer Year Ended June 30, 2011 Year Ended June 30, 2012
Prior Year Reserved Fund Balance Included in Funds Available
FUND BALANCE JUNE 30

BUDGET

ACTUAL

VARIANCE FAVORABLE (UNFAVORABLE)

$

37,481,107.70 $

9,397,904.46

1,955,332.74

$

48,834,344.90 $

37,481,107.70 $ 7,995,347.58 1,865,176.97
47,341,632.25 $

0.00 -1,402,556.88
-90,155.77
-1,492,712.65

0.00

$

48,834,344.90 $

594,498.23 47,936,130.48 $

594,498.23 -898,214.42

$

7,988,731.78 $

10,167,602.05

12,933,838.46

17,744,172.61

$

48,834,344.90 $

$

0.00 $

7,819,537.31 $ 9,379,026.92 12,933,730.15 17,601,163.30
47,733,457.68 $
202,672.80 $

169,194.47 788,575.13
108.31 143,009.31
1,100,887.22
202,672.80

594,498.23 100,251.88

578,848.53 -673,387.87

246,080.62

-346,332.50 -23,150.98
-594,498.23

$

84,982.48

SUMMARY OF FUND BALANCE Reserved Federal Financial Assistance Local Grants and Contracts Total Reserved Unreserved Surplus
Total Fund Balance

$

3,321.32

38,082.43

$

41,403.75

43,578.73

$

84,982.48

Statutory Basis financial information was prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles.
- 21 -

TECHNICAL COLLEGE SYSTEM OF GEORGIA SYSTEM OFFICE (OVERSIGHT UNIT)
STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE (STATUTORY BASIS) BUDGET FUND YEAR ENDED JUNE 30, 2012

Adult Literacy State Appropriation State General Funds Federal Funds Federal Funds Not Specifically Identified Other Funds
Total Adult Literacy
Departmental Administration State Appropriation State General Funds Federal Funds Federal Funds Not Specifically Identified American Recovery and Reinvestment Act of 2009 Federal Funds Not Specifically Identified Other Funds
Total Departmental Administration
Economic Development State Appropriation State General Funds Federal Funds Federal Funds Not Specifically Identified Other Funds
Total Economic Development
Technical Education State Appropriation State General Funds Federal Funds Federal Funds Child Care Block Grant Federal Funds Not Specifically Identified Other Funds
Total Technical Education
Totals By Program

Original Appropriation

Amended Appropriation

Final Budget

Current Year Revenues

$ 2,299,465.00 $ 2,616,348.00 $ 2,480,782.70 $

3,923,945.00 208,000.00

3,538,459.21 563,352.20

3,951,388.20 1,556,560.88

$ 6,431,410.00 $ 6,718,159.41 $ 7,988,731.78 $

2,480,782.70
3,836,917.80 1,490,805.46
7,808,505.96

$ 7,635,862.00 $ 7,636,801.00 $ 7,636,801.00 $

2,650,000.00

1,995,084.00

1,425,078.00

0.00 1,440,000.00

0.00 210,000.00

976,314.49 129,408.56

$ 11,725,862.00 $ 9,841,885.00 $ 10,167,602.05 $

7,636,801.00 1,325,099.50
293,964.05 131,070.48 9,386,935.03

$ 12,769,875.00 $ 12,910,423.00 $ 12,910,423.00 $

610,000.00 42,000.00

0.00 11,335.24

0.00 23,415.46

$ 13,421,875.00 $ 12,921,758.24 $ 12,933,838.46 $

12,910,423.00
0.84 23,415.46
12,933,839.30

$ 20,447,462.00 $ 17,820,131.00 $ 14,453,101.00 $

2,850,000.00 4,000,000.00
758,881.00

0.00 4,086,698.60
550,000.00

0.00 3,045,123.77
245,947.84

$ 28,056,343.00 $ 22,456,829.60 $ 17,744,172.61 $

14,453,101.00
0.00 2,539,365.39
219,885.57
17,212,351.96

$ 59,635,490.00 $ 51,938,632.25 $ 48,834,344.90 $

47,341,632.25

Statutory Basis financial information was prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles.
- 22 -

SCHEDULE "3"

Funds Available Compared to Budget

Prior Year

Adjustments and

Total

Carry-Over

Program Transfers

Funds Available

Variance Positive (Negative)

Expenditures Compared to Budget

Variance

Actual

Positive (Negative)

Excess (Deficiency) of Funds Available
Over/(Under) Expenditures

$

0.00 $

203.51 66,261.42

$ 66,464.93 $

0.00 $ 2,480,782.70 $

0.00 0.00

3,837,121.31 1,557,066.88

0.00 $ 7,874,970.89 $

0.00 $ 2,480,782.70 $

-114,266.89 506.00

3,820,486.37 1,518,268.24

-113,760.89 $ 7,819,537.31 $

0.00 $
130,901.83 38,292.64
169,194.47 $

0.00
16,634.94 38,798.64
55,433.58

$

0.00 $

639.28

0.00 0.00

$

639.28 $

0.00 $ 7,636,801.00 $

0.00

1,325,738.78

0.00 0.00

293,964.05 131,070.48

0.00 $ 9,387,574.31 $

0.00 $ 7,636,801.00 $

-99,339.22

1,325,099.50

-682,350.44 1,661.92

293,964.05 123,162.37

-780,027.74 $ 9,379,026.92 $

0.00 $ 99,978.50 682,350.44
6,246.19 788,575.13 $

0.00 639.28
0.00 7,908.11 8,547.39

$

0.00 $

0.00 0.00

$

0.00 $

0.00 $ 12,910,423.00 $

0.00 0.00

0.84 23,415.46

0.00 $ 12,933,839.30 $

0.00 $ 12,910,320.87 $

0.84 0.00

0.00 23,409.28

0.84 $ 12,933,730.15 $

102.13 $
0.00 6.18
108.31 $

102.13
0.84 6.18
109.15

$

0.00 $

0.00 527,394.02
0.00

$ 527,394.02 $

0.00 $ 14,453,101.00 $

0.00 0.00 0.00

0.00 3,066,759.41
219,885.57

0.00 $ 17,739,745.98 $

0.00 $ 14,452,815.25 $

0.00 21,635.64 -26,062.27

0.00 2,928,462.48
219,885.57

-4,426.63 $ 17,601,163.30 $

285.75 $
0.00 116,661.29
26,062.27
143,009.31 $

285.75
0.00 138,296.93
0.00
138,582.68

$ 594,498.23 $

0.00 $ 47,936,130.48 $

-898,214.42 $ 47,733,457.68 $

1,100,887.22 $

202,672.80

- 23 -

TECHNICAL COLLEGE SYSTEM OF GEORGIA SYSTEM OFFICE (OVERSIGHT UNIT)
STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE (STATUTORY BASIS) BUDGET FUND YEAR ENDED JUNE 30, 2012

Adult Literacy State Appropriation State General Funds Federal Funds Federal Funds Not Specifically Identified Other Funds
Total Adult Literacy
Departmental Administration State Appropriation State General Funds Federal Funds Federal Funds Not Specifically Identified American Recovery and Reinvestment Act of 2009 Federal Funds Not Specifically Identified Other Funds
Total Departmental Administration
Economic Development State Appropriation State General Funds Federal Funds Federal Funds Not Specifically Identified Other Funds
Total Economic Development
Technical Education State Appropriation State General Funds Federal Funds Federal Funds Child Care Block Grant Federal Funds Not Specifically Identified Other Funds
Total Technical Education
Total Operating Activity
Prior Year Reserves Not Available for Expenditure Inventories Refunds to Grantors Other Reserves

Beginning Fund Balance/(Deficit)
July 1

Fund Balance Carried Over from
Prior Period as Funds Available

Return of Fiscal Year 2011
Surplus

Prior Period Adjustments

$

6,873.00 $

203.51 66,261.42

$

73,337.93 $

0.00 $
-203.51 -66,261.42
-66,464.93 $

-6,873.00 $

0.00

0.00 0.00

-16,634.94 0.00

-6,873.00 $ -16,634.94

$

34,065.77 $

639.28

0.00 23,849.06

$

58,554.11 $

0.00 $ -639.28
0.00 0.00 -639.28 $

-34,065.77 $

2,509.13

0.00

0.00

0.00 -23,849.06

0.00 31,741.90

-57,914.83 $ 34,251.03

$

30,018.76 $

0.00 323.17

$

30,341.93 $

0.00 $
0.00 0.00
0.00 $

-30,018.76 $ 11,553.28

0.00 -323.17

-0.84 0.00

-30,341.93 $ 11,552.44

$

5,122.12 $

0.00 527,394.02
0.00

$

532,516.14 $

$

694,750.11 $

0.00 $
0.00 -527,394.02
0.00
-527,394.02 $
-594,498.23 $

-5,122.12 $ 10,401.94

0.00 0.00 0.00

0.00 -134,109.81
0.00

-5,122.12 $ -123,707.87

-100,251.88 $ -94,539.34

0.00 0.00 0.00

0.00 0.00 0.00

0.00 0.00 0.00

0.00 0.00 0.00

Budget Unit Totals

$

694,750.11 $

-594,498.23 $

-100,251.88 $ -94,539.34

Statutory Basis financial information was prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles.
- 24 -

SCHEDULE "4"

Other Adjustments

Early Return Fiscal Year 2012
Surplus

Excess (Deficiency) of Funds Available
Over/(Under) Expenditures

Ending Fund Balance/(Deficit)
June 30

Analysis of Ending Fund Balance

Reserved

Surplus/(Deficit)

Total

$

0.00 $

0.00 0.00

$

0.00 $

0.00 $
0.00 0.00
0.00 $

0.00 $
16,634.94 38,798.64
55,433.58 $

0.00 $

0.00 $

0.00 38,798.64

0.00 38,082.43

38,798.64 $ 38,082.43 $

0.00 $
0.00 716.21
716.21 $

0.00
0.00 38,798.64
38,798.64

$

0.00 $

-639.28

0.00 1,505.08

$

865.80 $

-2,163.59 $ 0.00 0.00
-7,634.61 -9,798.20 $

0.00 $ 639.28
0.00 7,908.11 8,547.39 $

345.54 $ 0.00 0.00
33,520.48 33,866.02 $

0.00 $ 0.00 0.00 0.00 0.00 $

345.54 $ 0.00 0.00
33,520.48 33,866.02 $

345.54 0.00 0.00
33,520.48 33,866.02

$

0.00 $

-3,725.73 $

0.00 0.00

0.00 0.00

$

0.00 $

-3,725.73 $

102.13 $
0.84 6.18
109.15 $

7,929.68 $
0.00 6.18
7,935.86 $

0.00 $
0.00 0.00
0.00 $

7,929.68 $
0.00 6.18
7,935.86 $

7,929.68
0.00 6.18
7,935.86

$

0.00 $

0.00 -865.80
0.00

$

-865.80 $

$

0.00 $

-9,627.05 $
0.00 0.00 0.00
-9,627.05 $
-23,150.98 $

285.75 $
0.00 138,296.93
0.00
138,582.68 $
202,672.80 $

1,060.64 $

0.00 $

0.00 3,321.32
0.00

0.00 3,321.32
0.00

4,381.96 $ 3,321.32 $

84,982.48 $ 41,403.75 $

1,060.64 $
0.00 0.00 0.00
1,060.64 $
43,578.73 $

1,060.64
0.00 3,321.32
0.00
4,381.96
84,982.48

0.00 0.00 0.00

0.00 0.00 0.00

0.00 0.00 0.00

0.00 0.00 0.00

0.00 0.00 0.00

0.00 0.00 0.00

0.00 0.00 0.00

$

0.00 $

-23,150.98 $

202,672.80 $

84,982.48 $ 41,403.75 $

43,578.73 $

84,982.48

Summary of Ending Fund Balance Reserved
Federal Financial Assistance Local Grants and Contracts Unreserved Surplus
Total Ending Fund Balance - June 30

$ 3,321.32 38,082.43
$
$ 41,403.75 $

$
43,578.73 43,578.73 $

3,321.32 38,082.43
43,578.73
84,982.48

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TECHNICAL COLLEGE SYSTEM OF GEORGIA SYSTEM OFFICE (OVERSIGHT UNIT)
RECONCILIATION OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 2012

SCHEDULE "5"

Totals per Annual Supplement
Compensated Absences June 30, 2012 June 30, 2011
Salaries Payable June 30, 2012 June 30, 2011
Adjustments Shared Services on Jointly Staffed Personnel Central Georgia Technical College Brown Jr., Stephen A. Chattahoochee Technical College Bullington, Victor W. Southeastern Technical College Jackson, Vincent Southern Crescent Technical College Brown Jr., Stephen A. Bullington, Victor W.

SALARIES

TRAVEL

$ 14,963,644.26 $ 690,324.44

1,494,931.57 -1,520,073.54

4,442.80 -31,270.15

-9,379.25 -3,507.03 35,201.86 -10,697.67 -1,344.01
$ 14,921,948.84 $ 690,324.44

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SECTION II FINDINGS, QUESTIONED COSTS AND OTHER ITEMS

TECHNICAL COLLEGE SYSTEM OF GEORGIA SYSTEM OFFICE (OVERSIGHT UNIT)
SCHEDULE OF FINDINGS, QUESTIONED COSTS AND OTHER ITEMS YEAR ENDED JUNE 30, 2012
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. OTHER ITEMS (NOTED FOR MANAGEMENT'S CONSIDERATION) No matters were reported.