Management report, Albany Technical Institute, Albany, Georgia, an organizational unit of the state of Georgia, year ended June 30, 1998

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~NAGEMENTREPORT
ALBANY TECHNICAL INSTITUTE ALBANY, GEORGIA
AN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA YEAR ENDED JUNE 30, 1998
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STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

ALBANY TECHNICAL INSTITUTE MANAGEMENT REPORT - TABLE OF CONTENTS -

LETTER OF TRANSMITTAL

SECTION I

SELECTED FINANCIAL INFORMATION

EXHIBITS

A ANALYSIS OF CHANGES IN FUND BALANCE

BUDGET FUND

1

SCHEDULES OF FUNDS AVAILABLE AND EXPENDITURES

COMPARED TO BUDGET

BUDGET FUND

B

"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

2

C

"B" LOTTERY FOR EDUCATION

3

D RECONCILIATION OF SALARIES AND TRAVEL

4

SECTIONll AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTION ill 't __
CURRENT YEAR FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
December 8, 1998

Governor of the State of Georgia Members ofthe General Assembly of Georgia Members of the State Board of Technical and Adult Education Members of the Local Board of Directors
and Honorable Anthony Parker, President Albany Technical Institute

Ladies and Gentlemen:

As part of our audit of the statutory basis fmancial statements of the State of Georgia presented in the Report ofthe State Auditor, the general purpose financial statements of the State of Georgia presented in the State ofGeorgia Comprehensive Annual Financial Report, and the issuance of a Statewide Single Audit Report pursuant to the Single Audit Act Amendments, as of and for the year ended June 30, 1998, we have performed certain audit procedures at Albany Technical Institute. Accordingly, the fmancial statements and compliance activities of Albany Technical Institute 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 fmancial and compliance activities of Albany Technical Institute as of and for the year ended June 30, 1998. The particular information provided is enumerated in the Table of Contents.

This report is intended solely for the use of management of Albany Technical Institute. However, this report

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is a matter of public record and its distribution is not limited.

Respectfully submitted,

CLV:ds

Claude L. Vickers State Auditor

SECTION I SELECTED FINANCIAL INFORMATION
If,.,

ALBANY TECHNICAL INSTITUTE ANALYSIS OF CHANGES IN FUND BALANCE
BUDGET FUND YEAR ENDED JUNE 30,1998

EXHIBIT "A"

ALBANY TECHNICAL INSTITUTE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION YEAR ENDED JUNE 30, 1998

EXHIBIT"B"

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

BUDGET

ACTUAL

VARIANCE FAVORABLE (UNFAVORABLE)

$ 6,065,765.00 $ 6,063,647.00 $

1,075,804.00

961,306.17

4,096,198.00

3,228,551.65

$ 11,237,767.00 $ 10,253,504.82 $

-2,118.00 -114,497.83 -867,646.35
-984,262.18

0.00

423,668.59

423,668.59

$ 11,237,767.00 $ 10,677,173.41 $

-.: ;. 5.:. .:60: .!,.,5: . .: 9:. =:3.:. .:.5. :.-9

EXPENDITURES
Personal Services-I nstitutions Operating Expenses-Institutions Adult Literacy Grants Job Training Partnership Act

$ 6,454,371.00 $ 6,258,400.03 $

4,006,588.00

3,190,164.14

697,558.00

696,354.68

79,250.00

81,333.93

195,970.97 816,423.86
1,203.32 -2,083.93

$ 11,237,767.00 $ 10,226,252.78 $_ _....:.1.:.,::,0....:...11..:.l,.:...:51:...;4:.;;:.2:=..2

Excess of Funds Available over Expenditures

$

450,920.63 $.==~4~50;;,r,,~92;:;;0;.;,;;.6;;.3

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-2-

ALBANY TECHNICAL INSTITUTE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"B" LOTTERY FOR EDUCATION YEAR ENDED JUNE 30. 1998

EXHIBIT"C"

FUNDS AVAILABLE REVENUES
State Appropriations

BUDGET

ACTUAL

VARIANCE FAVORABLE (UNFAVORABLE)

$ 45,000.00 $ 45,000.00 $

--:..0.:...:..0.=...0

EXPENDITURES Equipment-Technical Institutes

$ 45,000.00 $ 45,000.00 $

--:. O.:. .:. O.=. .O

Excess of Funds Available over Expenditures

$

0.00 $====.,;0,;,;;.0,;;,0

-3-

ALBANY TECHNICAL INSTITUTE RECONCILIATION OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1998

EXHIBIT "0"

Totals per Annual Supplement
Accruals June 30, 1998 June 30, 1997

SALARIES

TRAVEL

$ 5,510,792.86 $ 49,612,20

142,742,82 -124,070.59

129,35 -402.23

$ 5,529,465,09 $ 49,339.32

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SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

ALBANY TECHNICAL INSTITUTE AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1998

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

820-96-01 820-96-02 FS-820-97-01 FS-820-97-02 FS-820-97-03 FS-820-97-04 FS-820-97-05

Previously Reported Corrective Action Implemented Further Action Not Warranted Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Partially Resolved - See Corrective Action/Responses

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System Finding Control Number: FS-820-97-05

From January thru June of 1998, our PROP focus was to complete a full physical inventory of the campus and to ensure all current year purchases were accounted for in PROP. In July, 1998 we also placed a full-time employee to handle PROP reconciliation, maintenance and conducting the campus inventory reviews. Procedures are now in place to maintain current ledgers for PROP items.

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

820-96-02 820-96-03 FA-820-97-01

Further Action Not Warranted Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented

SECTION ill CURRENT YEAR FINDINGS AND QUESTIONED COSTS

ALBANY TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30,1998
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL FIXED ASSETS Inadequacies in Operation of Property Management System Finding Control Number: FS-820-98-01
For the year under review, an examination of the equipment inventory records for the Institute's general fixed assets revealed the following deficiencies:
(1) Forty-six (46) equipment items were selected to test the accuracy of the Institute's general fixed asset records. These items contained a value of $867,405.99 and were selected for the purpose of locating the equipment as recorded in the inventory records. Five (5) items totaling $75,381.30 were not located.
(2) Two (2) items physically on hand could not be traced back to the inventory records.
(3) Equipment inventory records were not updated for deletions in a timely manner.
The discrepancies identified above were caused by the Institute's failure to follow guidelines for maintaining equipment inventories. The Institute should establish the necessary procedures to ensure that equipment inventories are maintained in accordance with provisions of the State Property System Manual.