Review report, state of Georgia, Albany Technical Institute, Albany, Georgia, year ended June 30, 1994

GA A800
.Rl
\J(o A55
\9Cl3-94-
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

REVIEW REPORT STATE OF GEORGIA ALBANY TECHNICAL INSTITUTE ALBANY, GEORGIA
YEAR ENDED JUNE 30, 1994

ALBANY TECHNICAL INSTITUTE - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

FINANCIAL STATEMENTS

A COMBINED BALANCE SHEET (STATUTORY BASIS)

ALL FUND TYPES AND ACCOUNT GROUPS

2

B STATEMENT OF CHANGES IN FUND BALANCE (STATUTORY BASIS)

GOVERNMENTAL FUND TYPE

3

C STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

4

STATEMENTS OF FUNDS AVAILABLE AND EXPENDITURES

COMPARED TO BUDGET

BUDGET FUND

D

"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

6

E

"B" LOTTERY FOR EDUCATION

7

F NOTES TO THE FINANCIAL STATEMENTS

8

SUPPLEMENTARY INFORMATION

G COMBINING BALANCE SHEET (STATUTORY BASIS)

BUDGET FUND

20

H COMBINING STATEMENT OF CHANGES IN FUND BALANCE

(STATUTORY BASIS)

BUDGET FUND

21

I COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

22

J COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

FIDUCIARY FUND TYPE - AGENCY FUNDS

24

SCHEDULES

1 CASH AND CASH EQUIVALENTS

25

2 SCHEDULE OF FEDERAL REVENUES

26

3 RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL

27

4 RECONCILIATION OF PER DIEM AND FEES

28

ALBANY TECHNICAL INSTITUTE - TABLE OF CONTENTS -
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

~epnrtmeut nf J\.uttits
254 WASHINGTON STREET, S.W. ROOM 214
J\tfoubt, ~eurgia 30334-8400
December 14, 1994

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

Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members of the State Board of Technical and Adult Education Members ofthe Local Board ofDirectors
and Honorable Nathaniel Cross, President Albany Technical Institute
INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have reviewed the accompanying financial statements (Exhibits A through F) of Albany Technical Institute as ofand 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 Albany Technical Institute.
A review consists principally of inquiries of Institute personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, with the exception ofthe matter described in the following paragraph, 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 of accounting described in Note 1.
As more fully discussed in Section IT, Findings and Improper or Questioned Costs, material discrepancies were noted in the equipment inventory records of Albany Technical Institute. Equipment inventory comprises the General Fixed Assets Account Group. We were unable to determine the effects these discrepancies may have on the financial statements.

94ARL-5T

Our review was made for the purpose of expressing 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 accounting described in Note 1. The accompanying supplementary information (Exhibits G through J and Schedules 1 through 4) is presented only for supplementary analysis purposes. Such information has been subjected to the inquiries and analytical procedures applied in the review of the financial statements, and we are not aware of any material modifications that should be made thereto.
Respectfully submitted,
cf~
Claude L. Vickers State Auditor
CLV:jy 94ARL-5T

FINANCIAL STATEMENTS - 1-

ALBANY TECHNICAL INSTITUTE COMBINED BALANCE SHEET (STATUTORY BASIS)
ALL FUND TYPES ANO ACCOUNT GROUPS JUNE 30 1 1994

EXHIBIT "A"

GOVERNMENTAL FIDUCIARY

FUND TYPE FUND TYPE

BUDGET

AGENCY

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

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

ASSETS

Cash and Cash Equivalents (See Schedule)

$ 402,908.89 $ 77,787.97

$ 480,696.86$ 1,184,170.51

Accounts Receivable State Funds Federal Financial Assistance Other

$ 50,332.37 125,988.30 124,996.96 $_----"'95=8"'"'.o'""o

$ 50,332.37 $

0.00

125,988.30

86,444.13

125,954.96

26,384.53

$ 301 1317.63 $_--::.;95=8'--'.o=o

$ 302,275.63 $ 112,828.66

Inventories

$ 167,967.71

$ 167 I 967 71 $ 117,585.45

Fixed Assets Equipment

$1,637,782.05

$1,637,782.05 $1,637,782.05

Amounts to be Provided for Payment of: Accrued Canpensated Absences Capital Lease Carmitments

$ 271,197.23 $ 271,197.23 $ 239,450.77

13,953.84

131953. 84

0.00

$ 285,151.07 $ 285,151.07 $ 239,450.77

Total Assets

$ 872,194.23 $ 78,745.97 $1,637,782.05$ 285,151.07 $ 2,873,873.32 $ 3,291,817.44

LIABILITIES ANO FUND EQUITY

Liabilities Accounts Payable Salaries Payable Payroll Withholdings Deferred Revenue Tuition and Fees Funds Held for Others Canpensated Absences Capital Leases

$ 131,404.41 50,008.50 426.55 20,425.00 $ 78,745.97

$ $ 271,197.23
13,953.84

131,404.41 $ 50,008.50
426.55 20,425.00 78,745.97 271,197.23 13,953.84

642,904.84 29,411.71
0.00 23,195.00 61,961.26 239,450.77
0.00

Total Liabilities

$ 202,264.46 $ 78,745.97

$ 285,151.07 $ 566.161. 50 $ 996,923.58

Fund Equity Investment in General Fixed Assets Fund Balance Reserved Federal Financial Assistance For Refund to Georgia Department of Technical and Adult Education Administrative Central Office For Expired Grant Balances For Other Inventories Live Work Projects Prior Year Local Funds Private Grants Unreserved Designated Surplus Regular

$ 26,073.29 2,347.61 24,863.29
121,696.44 88,684.29 393,342.71
15.00 12,907.14

$1,637,782.05

$1,637,782.05$ 1,637,782.05

26,073.29 2,347.61 24,863.29 121,696.44 88,684.29 393,342.71
15.00

33,920.51 91.01 981.09
121,696.44 68,610.65 388,863.65
15.00

12,907.14

42,933.46

Total Fund Equity

$ 669 .929. 77

$1,637,782.05

$ 2,307,711.82 $ 2,294,893.86

Total Liabilities and Fund Equity

$ 872,194.23 $ 78,745.97 $1,637,782.05 $ 285,151.07 $ 2,873,873.32 $ 3,291,817.44

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.
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ALBANY TECHNICAL INSTITUTE 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
Excess of Funds Available over Expenditures Exhibit "C"
Prior Year's Checks Voided Reimbursement of Prior Year's Expenditures
DEDUCTIONS
Unreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and Adult Education Administrative Central Office Year Ended June 30, 1992 Year Ended June 30, 1993
Adjustments to Prior Year's Accounts Receivable
Refunds to Granters Georgia Department of Technical and Adult Education - Administrative Central Office Federal Financial Assistance Phoebe Putney Memorial Hospital Private Grant
Reserved Fund Balance Carried Over from Prior Year as Funds Available
FUND BALANCE - JUNE 30
(To Exhibit "A")

BUDGET FUND YEAR ENDED
JUNE 30, 1994 JUNE 30, 1993

$ 614,178.35 $ 562,963.69

42,933.46

28,232.42

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

$ 657,111.81 $ 591,196.11
------------- -------------

$ 14,320.49 $

1,195.76

534,564.05

553,739.55

123.50

0.00

601.39

0.00

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

$ 549,609.43
-------------

$ 554,935.31
-------------

$

0.00 $ 28,232.42

42,933.46

0.00

1,467.11

0.00

33,920.51

40.89

0.00

8,734.98

458,470.39

452,011.32

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

$ 536,791.47 $ 489,019.61
------------- -------------

$ 669,929.77 $ 657,111.81
============= =============

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.
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ALBANY TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND
YEAR ENDED JUNE 30, 1994

EXHIBIT "C" Page 1

FUNDS AVAILABLE REVENUES
STATE FUNDS Allotment from Georgia Department of Technical and Adult Education - Administrative Central Office
FEDERAL REVENUES (See Schedule) OTHER REVENUES RETAINED
Fees Application Graduation Registration/Continuing Education Returned Check Testing Other
Interest Earned Reimbursements
From Various Sources Rents Sales and Services (Net) Tuition Other Sources
Total Other Revenues Retained Total Revenues CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance Live Work Projects Prior Year Local Funds Private Grants Federal Financial Assistance Total Carry-Over from Prior Year

TOTALS YEAR ENDED
JUNE 30, 1994 JUNE 30, 1993

$ 4,715,218.54 $ 4,387,405.06 $ 1,102,593.19 $ 1,079,264.37

$ 24,660.00 $ 22,BOO.OO

173.00

112. 50

509,215.70 653,506.99

1,804.00

1,300.00

9,405.00

11,244.76

1,226.54

68.50

21,874.75

29,211.85

0.00 0.00 161,059.40 892,301.81 10,047.83

187.30 245.00 143,842.31 644,752.68 2,078.04

$ 1,631,768.03 $ 1,509,349.93

$ 7,449,579.76 $ 6,976,019.36

$ 68,610.65 $ 47,581.88

388,863.65 395,679.46

15.00

8,749.98

981. 09

0.00

$ 458,470.39 $ 452,011.32

Total Funds Available

$ 7,908,050.15 $ 7,428,030.68

EXPENDITURES PERSONAL SERVICES-INSTITUTIONS
Salaries and Wages Em~loyer's Contributions for:
F.I.C.A. Retirement Hea 1th Insurance Liability Insurance Unemplorment Compensation Insurance Workers Compensation Insurance
OPERATING EXPENSES-INSTITUTIONS Other Costs Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Rents (Other than Real Estate) Insurance and Bonding Other Operating Expenses Extraordinary Expenditures Duplicating and Rapid Copy Publications and Printing Travel

$ 4,272,405.59 $ 3,915,057.75

77,147.69 449,227.77 468,544.39
10,209.00 1,229.00 11,087.00

73,204.18 431,519.96 447,912.10
12,255.00 946.00
4,384.00

$ 5,289,850.44 $ 4,885,278.99

$

8,704.69 $

5,794.67

452,465.96

392,399.33

152,979.64

138,483.56

219,543.40

157,670.77

1,487.98

0.00

14,470.67

11,748.00

330,358.22

304,447.01

5,000.00

0.00

11,319.70

0.00

9,058.35

11,343.94

43,590.93

39,336.93

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.

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ALBANY TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "C" Page 2

EXPENDITURES OPERATING EXPENSES-INSTITUTIONS
Equipment Equipment Purchases Lease/Purchase of Equipment Rental of Equipment
Computer Charges Other Costs Supplies and Materials Repairs and Maintenance Software Equipment Eguipment Purchases
Real Estate Rentals Telecommunications 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 Other Costs Sueplies and Materials Ut1 l ities Other Operating Expenses Trave 1 Per Diem, Fees and Contracts Per Diem and Fees
JOB TRAINING PARTNERSHIP ACT Personal Services Salaries and Wages Employer's Contributi-0ns for: F. I.C.A. Retirement Health Insurance Other Costs Other Operating Expenses
EQUIPMENT - STATE SCHOOLS Equipment Equipment Purchases Total Expenditures
Excess of Funds Available over Expenditures

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$ 88,314.74 $ 522,022.72

3,060.15

0.00

0.00

4,685.83

0.00 0.00 20,583.65

1,451.23 4,386.02 4,960.82

217,310.89 1,750.00
34,927.31

120,108.09 0.00
32,341.35

258,572.16 37,209.02

171,554.16 8,050.25

$ 1,910,707.46 $ 1,930,784.68

$ 15,487.20 $ 11,902.55

201.03 1,548.96 1,639.56

158.98 1,306.45 1,373.70

1,440.06 1,967.54 5,076.90 1,335.99

363.99 0.00 0.00
216.11

60,548.88

42,905.68

89,246.12 $ 58,227.46

$ 38,254.51 $
1,017.03 959.42 806.34
225.00 $_____4..1...,._2=6-=2.30 $

0.00 0.00 0.00 0.00 0.00 0.00

$ 42,419.78 $_______0~~0..0..

$7,373,486.10$ 6,874,291.13

534,564.05

553,739.55

$ 7,908,050.15 $ 7,428,030.68

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.
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ALBANY TECHNICAL INSTITUTE 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 Funds Federal Revenues Other Revenues Retained
CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$4,681,493.00$ 4,672,798.76$ -8,694.24 1,287,631.00 1,102,593.19 -185,037.81 2,288,000.00 1,631,768.03 -656,231.97
$8,257,124.00$ 7,407,159.98$ -849,964.02
0.00 458,470.39 458,470.39

$8,257,124.00$ 7,865,630.37 $ -391,493.63

EXPENDITURES
Personal Services-Institutions Operating Expenses-Institutions Quick Start Program Job Training Partnership Act

$ 5,359,890.00 $ 5,289,850.44 $ 70,039.56

2,761,832.00 1,910,707.46 851,124.54

94,130.00

89,246.12

4,883.88

41,272.00

41,262.30

9.70

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

$8,257,124.00$ 7,331,066.32 $ 926,057.68

Excess of Funds Available over Expenditures

$ 534,564.05$ 534,564.05
============= =============

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.
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ALBANY TECHNICAL INSTITUTE STATEMENT 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 Funds
EXPENDITURES Equipment - State Schools
Excess of Funds Available over Expenditures

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 42,517.00 $ 42,419.78 $

97.22

$ 42,517.00$ 42,419.78$

97.22

$

0.00 $

0.00

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-

ALBANY TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Albany Technical Institute is one of twenty-eight (28) State supported member institutes of postsecondary education in Georgia which comprise the Georgia Department of Technical and Adult Education, an organizational unit of the State of Georgia. The accompanying financial statements reflect the operations of Albany Technical Institute as a separate reporting entity.
The Institute's Local Board of Directors is composed of eleven (11) members serving staggered three-year terms who are appointed by the State Board of Technical and Adult Education. Appropriation of State funds is made to the Georgia Department of Technical and Adult Education by the General Assembly of Georgia. The Department's Administrative Central Office determines the amount of State funds to be received by Albany Technical Institute. The Institute does not have authority to retain unexpended State funds (surplus) for any given fiscal year. Accordingly, Albany Technical Institute is considered an organizational unit of the Georgia Department ofTechnical and Adult Education for financial reporting purposes because of the significance of its legal, operational, and financial relationships as defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards.
FUND ACCOUNTING Albany Technical Institute uses funds and account groups to report on its financial position and the results of its operations determined in conformity with the accounting practices prescribed or permitted by statutes and regulations ofthe 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 of accounts. 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:
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. This fund also includes operations from various institutional services provided to students, faculty, and/or staff which are funded by fees charged to participants that are directly related to, but not necessarily equal to, the cost of service. The Budget Fund is similar in nature to a General Fund as identified in generally accepted accounting principles in that the Budget Fund is used to account for all activities except those required to be accounted for in some other fund.
FIDUCIARY FUND TYPE
AGENCY FUNDS - The funds used to account for assets held for use by other funds, governments, or individuals.

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ALBANY TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
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 of accounting, revenues are recognized when susceptible to accrual (i.e.,when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Revenues that are accrued include primarily State funds, Federal grants and entitlements, and certain amounts earned under operating agreements with other parties. Further, the modified accrual basis ofaccounting 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 of fund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles.
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ALBANY TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATE:MENTS
JUNE 30, 1994

EXIIlBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPE BUDGET FUND
Contractual tenns of certain Federal grant agreements received by the Institute for vocational training services require that grant funds earned be recorded as Federal revenues rather than as revenues from tuition and fees. Accordingly, it is the Institute's policy to record certain Federal grant funds as Federal revenues and also as other revenues retained with offsetting expenditures for student expenses charged to the other operating expenses expenditure account. This accounting policy results in an overstatement of both revenues and expenditures in the financial statements for such Federal grants. This policy is in conformity with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, but is not consistent with generally accepted accounting principles.
Prior period adjustments are reported as additions to and deductions from fund balance of the Budget Fund in the accompanying financial statements. This presentation is in accordance with accounting practices prescribed or permitted by statutes and regulations 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 The Georgia Department of Technical and Adult Education - Administrative Central Office receives State appropriated funds and certain Federal funds for the various technical institutes throughout the State. The appropriated budget is adopted at the departmental level and represents appropriations provided by the Amended Appropriations Act of 1993-1994. The budget allocation and disbursement of these funds is made to the various technical institutes by the Administrative Central Office. In addition, the technical institutes receive certain Federal funds and other funds directly and include these funds in the budget filed with the Administrative Central Office.
CASH AND CASH EQUIVALENTS Cash and Cash Equivalents include currency on hand and demand deposits with banks and other authorized financial institutions. Cash and Cash Equivalents also include short-term, highly liquid investments with maturity dates within three months of the date acquired.
ACCOUNTS RECEIVABLE Accounts receivable consist of allotments due from the Administrative Central Office of the Department of Technical and Adult Education, reimbursements due from Federal, State, local and private grants and contracts, and other receivables disclosed from information available.
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ALBANY TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

INVENTORIES Expendable supplies are recorded as expenditures at the time of purchase and are not reflected on the Combined Balance Sheet (Statutory Basis).

Inventories of goods for resale are recorded as assets at cost at the time of purchase. The Institute uses the first-in, first-out method in costing-out inventories based on sales.

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 REFUND TO GEORGIA DEPARTMENT OF TECHNICAL AND ADULT EDUCATION AD1\1INISTRATIVE CENTRAL OFFICE
Albany Technical Institute receives Federal funds for the Adult Education Act and the Carl D. Perkins Vocational and Applied Technology Education Act through the Georgia Department of Technical and Adult Education - Administrative Central Office. As provided by the respective budget allocation to the Institute, these funds were required to be expended by June 30, 1994. At June 30, 1994, the following programs had unexpended Federal funds which should be refunded to the Administrative Central Office:

Carl D. Perkins Vocational and Applied Technology Education Act Vocational Education - Basic Grants to States Vocational Education - Community Based Organizations

$ 26,063. IO 10.89

$ 26 073,99

EXPIRED GRANT BALANCES Expired grant balances represent the unexpended balance of Federal financial assistance, other than through the Administrative Central Office, remaining after the expiration of the Federal program/project. This amount is refundable to the applicable grantor.

OTHER 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.

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ALBANY TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
RESERVED FUND BALANCE
INVENTORIES Reported inventories (resale), under the consumption method, are offset by a portion of State funds equal to the average quarterly inventories on hand for the fiscal year. This reservation of fund balance was established to provide working capital for managing a reasonable level of inventories for resale.
LIVE WORK PROJECTS The accumulated balance of unexpended funds derived from student live work projects. This amount is restricted to expenditures for live work projects in subsequent fiscal years.
PRIOR YEAR LOCAL FUNDS Effective July 1, 1988, Albany.Technical Institute became a part of the Georgia Department of Technical and Adult Education. The Official Code of Georgia Annotated Section 20-4-23 provides the Institute may retain for future operations "...any unexpended nonstate funds that have been collected by, appropriated for, or otherwise earmarked for u_se by said postsecondary technical school operated by a local board of education or an area board... ". These unexpended local funds are available for use in subsequent fiscal years.
PRIVATE GRANTS The unexpended balance ofprivate grants which is restricted for expenditure in future years for the specific purposes as designated by the grantors.
COMPENSATED ABSENCES Compensated absences represent obligations of the Institute relating to employees' rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulated 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 allotment of State funds each year to the Institute to cover the cost of annual leave paid to terminated employees.
The liability for compensated absences at year-end is reported in the General Long-Term Debt Account Group for governmental funds.
MEMORANDUM ONLY -TOTAL COLUMNS Total columns on the Combined Balance Sheet (Statutory Basis) are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial 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.

- 12 -

ALBANY TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 Institute'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 belonging to the State ofGeorgia cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral any one or more ofthe following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59:
(1) Bonds, bills, notes, certificates of indebtedness, or other direct obligations ofthe United States or of the State of Georgia.
(2) Bonds, bills, notes, certificates of indebtedness, 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, notes, certificates of indebtedness, or other obligations of a subsidiary corporation ofthe United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Banlc, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Banlc for Cooperatives, the Farm Credit Banlcs, 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 of the State of Georgia (which include technical institutes) the option of exempting demand deposits from the collateral requirements.
- 13 -

ALBANY TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATE:MENTS
JUNE 30, 1994

EXIIlBIT "F"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS

COLLATERALIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, cash deposits consists 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 I - Amounts covered by depository insurance or collateralized with securities (at market value) held by the Institute or by its agent in the Institute's name.

Category 2 - Amounts collateralized with securities (at market value) held by the financial institution's trust department or agent in the Institute's name.

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

Cash Deposits

Carrying Amount

Bank Balances

Risk Categories

2

3

$ 480 396 86 $ 958 254 72 $ 145 992 76 $ 812 261 96 $=====0..,,00"""'

NOTE 3: CAPITAL LEASES

Albany Technical Institute 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 of any sums under such agreements beyond the fiscal year of execution if appropriated funds are not available. Ifrenewal 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 iune 30, 1994, future minimum lease payments under capital leases are as follows:

Fiscal Year Ending June 30
1995 1996 1997 Total Future Minimum Lease Payments Less: Amounts Representing Interest Present Value ofFuture Minimum Lease Payments

$ 7,080.60 5,055.60 2,525.50
$ 14,661.70
707.86
$ 13 953,84

- 14 -

ALBANY TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 4: 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:

Compensated A6sences

Capital Leases

Total

Balance July 1, 1993

$ 239,450.77 $

0.00 $ 239,450.77

Additions

Annual Leave Earned and Utilized (Net)

Salaries and Wl!,ges



Salary-Related Fringe Benefits(*)

Current Year Leases

Deductions

26,211.72 5,534.74

16,402.00 2,448.16

26,211.72 5,534.74 16,402.00 2,448.16

Balance June 30, 1994

$ 271,197.23 $ 13,953.84 $ 285,151 07

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

NOTE 5: 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 of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property or rights ofthe State of Georgia subject only to the claims of the State's general creditors. Participant's rights under the plan are equal to those of a general creditor of the State of Georgia in an amount equal to the fair market value of the deferred account of each participant. Financial information relative to the plan is presented in the financial report of the State Personnel Board Merit System of Personnel Administration for the year ended June 30, 1994.

NOTE6: RETIREMENTPLANS

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 of Georgia. 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.

- 15 -

ALBANY TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 6: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA TEACHERS RETIREMENT SYSTEM OF GEORGIA 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 Institute contribute_d $48,043.76 to the Employees' Retirement System of Georgia and $403,954.01 to the Teachers Retirement System of Georgia. Participation in either Retirement System is not segregated by employee groups of individual governmental units and the Institute 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, ~d historical trends is presented in the financial reports of the Employees' Retirement System ofGeorgia 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 7: LEAVE POLICIES
Employees earn annual leave ranging from one and one-quarter days to one and three-quarter days each month depending upon the employees' length of continuous State service with a maximum accumulation of forty-five days. Employees are paid for unused accumulated annual leave upon retirement or termination of employment. See Note 1 - Compensated Absences
Employees earn one and one-quarter days of sick leave each month with a maximum accumulation of ninety days. Unused accumulated sick leave does riot vest with the employee and is forfeited upon retirement or termination of employment.

- 16 -

ALBANY TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 8: NONMONETARY TRANSACTIONS
The Administrative Central Office of the Georgia Department of Technical and Adult Education used lottery proceeds to purchase $519,440.99 of equipment for Albany Technical Institute during the fiscal year ended June 30, 1994.
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 $742,627.98 to various vendors for approved projects related to Albany Technical Institute.
NOTE 9: CONTINGENCIES
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. This could result in refunds to the grantor agency for any expenditures which are disallowed under grant terms. The amount of expenditures which may be disallowed by the grantor cannot be determined at this time although the Institute expects such amounts, if any, to be immaterial to its overall financial position.
Litigation, claims and assessments filed against Albany Technical Institute (as a unit of the Department of Technical and Adult Education), if any, are generally considered to be actions against the State of Georgia. Pursuant to the Official Code of Georgia Annotated, the Department of Administrative Services maintains a program of purchased insurance and self-insurance which provides coverage for such litigation, claims and assessments. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1994.
NOTEl0: SUBSEOUENTEVENTS
Reported amounts for General Fixed Assets reflect carrying values in the accounting records at June 30, 1994. Subsequent to that date, Albany Technical Institute substained flood damage to part of its campus. The total loss incurred by the Institute could not be ascertained as ofthe date ofthis report, but is believed to be material to the financial statements.

- 17 -

ALBANY TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "F"

NOTE 11: BONDING INFORMATION
The President and all employees of Albany Technical Institute are bonded under a Public Employees Blanket Bond written by the Employers Insurance ofWausau, 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 Albany Technical Institute to a maximum of$1,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. The faithful performance of duty coverage insures the Institute to a maximum of $100,000.00 against loss sustained from failure ofits employees to perform faithfully their duties or to account properly for all monies and property received by virtue oftheir position or employment.
All employees of Albany Technical Institute are also bonded under a Commercial Crime Policy written by the United States Fire Insurance Company, their Policy No. 626 011675 2, on which the premium was paid to October 1, 1994. Under this additional public employee dishonesty coverage, the policy insures the Institute to a maximum of$4,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees.

- 18 -

FINANCIAL STATEMENTS - 19 -

ALBANY TECHNICAL INSTITUTE COMBINING BALANCE SHEET (STATUTORY BASIS)
BUDGET FUND JUNE 30. 1994

EXHIBIT "G"

ASSETS Cash and Cash Equivalents Accounts Receivable
State Funds Federal Financial Assistance Other
Inventories

"A" DEPARTMENT OF
TECHNICAL AND ADULT
EDUCATION

"B" LOTTERY FOR EDUCATION

TOTAL

$----4-0-4-,-6-9-9-.-7-6 $----------0-.-0-0 $----4-0-4-,-6-9-9-.-7-6

$ lB,097.94 $ 32,234.43 $ 50,332.37

125,988.30

0.00 125,988.30

----1-2-4-,-9-9-6-.-9-6 ----------0-.0--0 ----1-2-4-,-9-9-6-.-9-6

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

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

Total Assets

$====8=4=1=,7==5=0=.6=7=

$=====3=2=,2==3=4=.4==3

$

873,985.10
=============

LIABILITIES AND FUND EQUITY Liabilities
Cash Overdrafts Accounts Payable Salaries Payable Payroll Withholdings Deferred Revenue
Tuition and Fees Total Liabilities
Fund Equity Fund Balance Reserved Federal Financial Assistance For Refund to Georgia Department of Technical and Adult Education - Administrative Central Office For Expired Grant Balances For Other Inventories Live Work Projects Prior Year Local Funds Private Grant Unreserved Designated Surplus Regular Lottery for Education Total Fund Equity

$

0.00 $

100,960.85

50,008.50

426.55

20,425.00

$ 171,820.90$

$ 26,073.29 2,347.61 24,863.29
121,696.44 88,684.29 393,342.71
15.00 12,907.14
$ $ 669,929.77 $

1,790.87 $ 30,443.56

1,790.87 131,404.41 50,008.50
426.55 20,425.00

32,234.43 $ 204,055.33

$ 26,073.29 2,347.61 24,863.29
121,696.44 88,684.29 393,342.71
15.00

12,907.14

0.00

0.00

0.00 $ 69,929.77

Total Liabilities and Fund Equity

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

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 20 -

ALBANY TECHNICAL INSTITUTE 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

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

"8"
LOTTERY FOR
EDUCATION
-----------

TOTAL

$ 614,178.35

$ 614,178.35

42,933.46 $

0.00

42,933.46

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

$ 657,111.81 $

0.00 $ 657,111.81

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

Adjustments to Prior Year's Accounts Payable
Excess of Funds Available over Expenditures Exhibit "I"
Prior Year's Checks Voided Reimbursement of Prior Year's Expenditures
DEDUCTIONS

$ 14,320.49 $

0.00 $ 14,320.49

534,564.05

534,564.05

123.50

123.50

601.39

601.39

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

$ 549,609.43 $

0.00 $ 549,609.43

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

Unreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and Adult Education - Administrative Central Office Year Ended June 30, 1993
Adjustments to Prior Year's Accounts Receivable
Refunds to Granters Georgia Department of Technical and Adult Education - Administrative Central Office Federal Financial Assistance
Reserved Fund Balance Carried Over from Prior Year as Funds Available

$ 42,933.46 $ 1,467.11
33,920.51 458,470.39

0.00 $

42,933.46 1,467.11

33,920.51 458,470.39

$ 536,791.47 $

0.00 $ 536,791.47

FUND BALANCE - JUNE 30

(To Exhibit "G")

$ 669,929.77 $

0.00 $ 669,929.77

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

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

- 21 -

ALBANY TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE ANO EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "I" Page 1

FUNDS AVAILABLE REVENUES
STATE FUNDS Allotment from Georgia Department of Technical and Adult Education - Administrative Central Office
FEDERAL REVENUES OTHER REVENUES RETAINED
Fees Application Graduation Reiistration/Continuing Education Re urned Check Testing Other
Interest Earned Sales and Services (Net) Tuition Other Sources
Total Other Revenues Retained Total Revenues CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance Live Work Projects Prior Year Local Funds Private Grants Federal Financial Assistance Total Carry-Over from Prior Year
Total Funds Available
EXPENDITURES PERSONAL SERVICES-INSTITUTIONS
Salaries and Wages Em~loyer's Contributions for:
. I .C.A. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
OPERATING EXPENSES-INSTITUTIONS Other Costs Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Rents (Other than Real Estate) Insurance and Bonding

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR
EDUCATION

TOTAL

$ 4,672,798.76 $ $ 1,102,593.19

42,419.78 $ 4,715,218.54 $ 1,102,593.19

$ 24,660.00 173.00
509,215.70 1,804.00 9,405.00 1,226.54
21,874.75 161,059.40 892,301.81
10,047.83 $ 1,631,768.03 $ 7,407,159.98 $

$ 24,660.00 173.00
509,215.70 1,804.00 9,405.00 1,226.54
21,874.75 161,059.40 892,301.81 10,047.83 $ 1,631,768.03 42,419.78 $ 7,449,579.76

$ 68,610.65 388,863.65 15.00 981.09
$ 458,470.39

$ 68,610.65 388,863.65 15.00 981.09
$ 458,470.39

$ 7,865,630.37 $ 42,419.78 $ 7,908,050.15

$ 4,272,405.59 77,147.69
449,227.77 468,544.39
10,209.00 1,229.00
11,087.00 $ 5,289,850.44
$ 8,704.69 452,465.96 152,979.64 219,543.40 1,487.98 14,470.67

$ 4,272,405.59 77,147.69
449,227.77 468,544.39
10,209.00 1,229.00
11,087.00 $ 5,289,850.44
$ 8,704.69 452,465.96 152,979.64 219,543.40 1,487.98 14,470.67

See accompanying notes and Independent Accountant's Combi~ed Report on Review of Financial Statements and Supplementary Information.
- 22 -

ALBANY TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "I" Page 2

EXPENDITURES OPERATING EXPENSES-INSTITUTIONS
Other Costs Other Operatin Expenses Extraordinary x~enditures Duglicating and apid Copy Pu lications and Printing
Travel Equipment
Equipment Purchases Lease/Purchase of Equipment Computer Charges Software Equipment
E~uipment Purchases Real state Rentals Telecommunications Per Diem, Fees and Contracts
Per Diem and Fees Contracts
QUICK START PROGRAM Personal Services Salaries and Wages Em~loyer's Contributions for: . I .C.A. Retirement Health Insurance Other Costs Sue~lies and Materials Ut1 ities Other Operating Expenses Travel Per Diem, Fees and Contracts Per Diem and Fees.
JOB TRAINING PARTNERSHIP ACT Personal Services Salaries and Wages Em~loyer's Contributions for: . I .C.A. Retirement Health Insurance Other Costs Other Operating Expenses
EQUIPMENT - STATE SCHOOLS Equipment Equipment Purchases Total Expenditures
Excess of Funds Available over Expenditures

"A"
DEPARTMENT OF TECHNICAL AND ADULT ,Du~ATION

"B"
LOTTERY FOR EDUCATION

TOTAL

$ 330,358.22 5,000.00
11,319.70 9,058.35 43,590.93 88,314.74 3,060.15 20,583.65 217,310.89 1,750.00 34,927.31 258,572.16 37,209.02 $ 1,910,707.46

$ 330,358.22 5,000.00
11,319.70 9,058.35 43,590.93 88,314.74 3,060.15 20,583.65 217,310.89 1,750.00 34,927.31 258,572.16 37,209.02 $ 1,910,707.46

$ 15,487.20 201.03
1,548.96 1,639.56 1,440.06 1,967.54 5,076.90 1,335.99 60,548.88 $ 89,246.12

$ 15,487.20 201.03
1,548.96 1,639.56 1,440.06 1,967.54 5,076.90 1,335.99 60,548.88 $ 89,246.12

$ 38,254.51 1,017.03 959.42 806.34 225.00
$ 41,262.30

$ 38,254.51 1,017.03 959.42 806.34 225.00
$ 41,262.30

$

0.00 $

$ 7,331,066.32 $

534,564.05

42,419.78 $ 42,419.78

42,419.78 $ 7,373,486.10

0.00

534,564.05

$ 7,865,630.37 $ 42,419.78 $ 7,908,050.15

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 23 -

ALBANY TECHNICAL INSTITUTE COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 1994

EXHIBIT "J"

FUND
Child Care - Pass Key Fund General Scholarship Fund HOPE Program Pell Grant Program Student Accident Insurance Student Activities Fund Student Government Fund

ASSETS/
LIABILITIES JULY 1, 1993
------------

ADDITIONS
---------

DELETIONS
---------

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

$

590.00

$

590.00

20,777.08 $ 49,464.05$ 31,525.74

38,715.39

0.00

267,461.00

267,461.00

0.00

11.47 1,023,673.00 1,032,162.65

-8,478.18

0.00

7,207.75

7,207.75

0.00

26,499.83

27,334.02

25,501.38

28,332.47

14,082.88

33,239.39

27,735.98

19,586.29

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

$ 61,961.26$ 1,408,379.21 $1,391,594.50$ 78,745.97
============= ============= ============= =============

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

ALBANY TECHNICAL INSTITUTE CASH AND CASH EQUIVALENTS
JUNE 30, 1994
NONINTEREST BEARING ACCOUNTS
First State Bank and Trust Company, Albany, Georgia INTEREST BEARING ACCOUNTS
DOCO School Employees Federal Credit Union, Albany, Georgia
Shares Account First State Bank and Trust Company, Albany, Georgia
N.O.W. Accounts OTHER
Petty Cash

SCHEDULE "l"
$ -8,099.39 19,586.29
468,909.96 300.00
$ 480,696.86

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

ALBANY TECHNICAL INSTITUTE SCHEDULE OF FEDERAL REVENUES
YEAR ENDED JUNE 30. 1994

BUDGET FUND
Agriculture, U.S. Department of Child and Adult Care Food Program Through Georgia Department of Education
Education, U. S. Department of Vocational Education - Basic Grants to States Through Georgia Department of Technical and Adult Education - Administrative Central Office
Vocational Education - Community Based Organizations Through Georgia Department of Technical and Adult Education - Administrative Central Office
Health and Human Services, U. S. Department of Payments to States for Child Care Assistance Through Georgia Department of Human Resources
Labor, U. S. Department of Job Training Partnership Act Through Georgia Department Qf Technical and Adult Education - Administrative Central Office Through Southwest Georgia Regional Development Center Through Green Thumb, Incorporated

CFDA NUMBER
10.558
84.048
84.174
93.575
17.250 17.250 17.250

SCHEDULE "2"
AMOUNT $ 7,090.52
649,077.00 10,000.00 108,439.98 40,632.30 282,253.39 5,100.00 $1,102,593.19

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

ALBANY TECHNICAL INSTITUTE RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL
YEAR ENDED JUNE 30, 1994

SCHEDULE "3"

Totals per Annual Supplement

Accruals June 30, 1994 June 30, 1993

Adjustments Anderson, Buckley, Hammack, Herring, Pickren, Ware,

Alvin Frederick Michelle Billy G. Milton H. Thomas M. Latysha Ann

Totals per Report

SUMMARY BY OBJECT CLASS
BUDGET FUND Personal Services-Institutions Operating Expenses-Institutions Quick Start Program Job Training Partnership Act

SALARIES AND WAGES
---------
$ 4,307,132.90 $

TRAVEL 46,306.03

50,008.50 -29,411.71

-43.83

-1,582.39
-------------

-331.17 685.00 -2, 723 .11 685.00 349.00
-------------

$4,326,147.30$ 44,926.92
============= =============

$ 4,272,405.59
$
15,487.20 38,254.51

43,590.93 1,335.99

$4,326,147.30$ 44,926.92
============= =============

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

ALBANY TECHNICAL INSTITUTE RECONCILIATION OF PER DIEM AND FEES
YEAR ENDED JUNE 30, 1994

SCHEDULE "4"

Totals per Annual Supplement

Adjustments Hanmack,

Billy G.

Totals per Report

SUMMARY BY OBJECT CLASS
BUDGET FUND Operating Expenses-Institutions Quick Start Program

TYPE PAYMENT
------------
Reini>ursable Expense

FEE AMOUNT

EXPENSE AMOUNT

TOTAL

$ 311,242.04 $ 5,155.89 $ 316,397.93

2,723.11

2,723.11

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

$ 311,242.04 $ 7,879.00$ 319,121.04
=========== =========== ============

$ 258,572.16 60,548.88
$ 319,121.04

See accanpanying notes and Independent Accountant's Canbined Report on Review of Financial Statements and Supplementary Infonnation.
- 28 -

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

ALBANY TECHNICAL INSTITUTE 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 ofthe finding disclosed in the review report for the year ended June 30, 1993, is indicated below:

Audit Control Number

Status ofFinding

820-93-01 820-93-02 820-93-03 820-93-04 820-93-05

See Audit Control Number 820-94-01 See Audit Control Number 820-94-02 .Corrective Action Implemented See Audit Control Number 820-94-03 Corrective Action Implemented

PRIOR YEAR/CURRENT YEAR

CASH AND CASH EQUIVALENTS - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Accounting Procedures Audit Control Number 820-94-01

The review report for the year ended June 30, 1993, noted that Albany Technical Institute's accounting procedures did not provide adequate internal control over the bank reconciliation process. During the year under review, the accounting procedures related to cash were again found to be deficient as follows:

(1) The monthly bank statements for the general operating account were not reconciled correctly for any month of the fiscal year. In addition, the bank statements for the Payroll and Pell Grant accounts were not reconciled at June 30, 1994. Adjustments were necessary to reconcile the acc<:>unting records with bank statements.

(2) Book errors disclosed through the bank reconciliations process were carried as reconciling items for extended periods of time.

(3) Transfers between bank accounts were not posted to the accounting records.

(4) Unusually large cash overages and shortages were noted during the year under review.

(5) Inadequate controls over petty cash in the Admissions Office resulted in a $50.00 shortage.

(6) Funds of$584.50 were receipted by the school in June, but were never deposited to the operating account and cannot be accounted for.

(7) Two checks, cleared the bank on which the Institute failed to affix the authorizing signature.

ALBANY TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR/CURRENT YEAR
CASH AND CASH EQUIVALENTS - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Accounting Procedures Audit Control Number 820-94-01
The Institute should implement appropriate procedures and controls to ensure that all bank statements are reconciled to the general ledger on a timely basis and that reconciling items are identified and corrected promptly. The Institute should establish procedures which ensure that cash and cash equivalents are adequately safeguarded.
Memorandum Only Federal Financial Assistance Programs Affected and CFDA Numbers:
10.558 Child and Adult Care Food Program 17.250 Job Training Partnership Act 84.048 Vocational Education - Basic Grants to States 84.063 Pell Grant Program 84.174 Vocational Education - Community Based Organizations 93.575 Payments to States for Child Care Assistance
INVENTORIES Inadequate Resale Inventory Records Financial Statements Audit Control Number 820-94-02
The review report for the year ended June 30, 1993, noted that the Institute's internal accounting procedures relating to the costing of resale inventories were deficient. During the year under review, tests revealed that the perpetual inventory system again was not properly updated for new costs when items were purchased.
The Institute should implement appropriate procedures to ensure that the resale inventory system is updated for new costs when items are purchased.
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Equipment Inventory Records Vocational Education - Basic Grants to States (CFDA 84.174) Audit Control Number 820-94-03
The review report for the year ended June 30, 1993, disclosed that the equipment inventory records for Albany Technical Institute's general fixed assets were deficient. For the year under review, the equipment inventory records were again deficient as additions and deletions made during the 1993 and 1994 fiscal years have not been updated to the inventory records.

ALBANY TECHNICAL INSTITUTE 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 84.174) Audit Control Number 820-94-03

As a result ofthe deficiencies identified in the review ofthe equipment inventory records, we were unable to determine the validity ofthe total equipment inventory valuation contained in the equipment records, which comprise the General Fixed Assets Account Group.

The Institute should establish the necessary controls to ensure that equipment inventories are maintained in accordance with provisions ofFederal Regulations and the State Property System Manual.

CURRENT YEAR

GENERAL LEDGER - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Accounting Control Procedures Audit Control Number 820-94-04

For the year under review, accounting deficiencies were noted in the accounting records of the Albany Technical Institute as described below:

(1) Numerous journal entries lacked adequate documentation and evidence of proper authorization.

(2) Numerous posting errors in balance sheet, revenue and expenditure accounts were identified and corrected during the course of our field work.

The Institute should establish appropriate procedures to ensure that the general ledger is posted, balanced and reviewed on a monthly basis and that detail records supporting the general ledger are complete, accurate and reliable.

Memorandum Only Federal Financial Assistance Programs Affected and CFDA Numbers:

10.558 17.250 84.048 84.063 84.174 93.575

Child and Adult Care Food Program Job Training Partnership Act Vocational Education - Basic Grants to States Pell Grant Program Vocational Education - Community Based Organizations Payments to States for Child Care Assistance

ALBANY TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994

CURRENT YEAR

FEDERAL FINANCIAL REPORTS Federal Cash Transactions Report Not Reconciled Federal Financial Assistance Pell Grant Program (CFDA 84.063) Audit Control Number 820-94-05

For the year under review, a review of the Federal Cash Transactions Report - Status of Federal Cash submitted by the Sample Technical Institute to the U. S. Department ofEducation disclosed a difference of $11,348.82 between reported "cash on hand end of period" and ending cash per the Institute's a~counting records as noted below:

Report Date

Cash on Hand End ofPeriod Reported on Form PMS 272

Ending Cash per Accounting
Records

Difference

June 30, 1993

$

000 $ 11.348,82 $ 11,348,82

This difference occurred because Financial Aid personnel prepared the Federal Cash Transactions Report from records maintained in the Financial Aid Office, and these records were not reconciled to the formal accounting records maintained by the Business Office.

Procedures should be established to ensure that all Federal Cash Transactions Reports are reconciled to the Institute's formal accounting records, and documentation should be maintained reflecting this reconciliation. The Institute should contact its grantor agency regarding these unreconciled differences.

FEDERAL FINANCIAL REPORTS Undocumented Costs Federal Financial Assistance Job Training Partnership Act (CFDA 17.250) Amount: $1,501.68 Audit Control Number 820-94-06

For the year under review, funds requisitioned and received for the Job Training Partnership Act program through Southwest Georgia Regional Development Center exceeded expenditures by $1,501.68 for contract number 93-121 CR.

All requests for reimbursement should be reconciled to expenditures reflected by the Institute's accounting records. Refund of $1,501.68 should be made to Southwest Georgia Regional Development Center.

ALBANY TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR
SPECIAL TESTS AND PROVISIONS Failure to Calculate Refunds Federal Financial Assistance Pell Grant Program (CFDA 84.063) Amount: $4,115.70 Audit Control Number 820-94-07
For the year under review, it was noted that Albany Technical Institute failed to make refund calculations for students that withdrew from the Institute. This error resulted in $4,115.70 not being returned to the Pell Grant Program.
The Institute should establish refund procedures in accordance with the provisions of Section 485 of the Higher Education Amendment of 1992 and contact the U. S. Department ofEducation regarding resolution of this finding.