Management report, Albany Technical Institute, Albany, Georgia, an organizational unit of the state of Georgia, year ended June 30, 1999

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MANAGEMENT REPORT ALBANY TECHNICAL INSTITUTE
ALBANY, GEORGIA AN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA
YEAR ENDED JUNE 30, 1999
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

ALBANY TECHNICAL INSTITUTE MANAGEMENT REPORT - TABLE OF CONTENTS -

LEITER OF TRANSMITTAL

SECTION I

SELECTED FINANCIAL INFORMATION

EXHIBITS

A ANALYSIS OF CHANGES IN FUND BALANCE

BUDGETFUND

1

SCHEDULESOFFUNDSAVAILABLEANDEXPENDITURES

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

E RECONCILIATION OF PER DIEM AND FEES

5

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

SECTION ill CURRENT YEAR FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

w. RUSSELL HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
November 22, 1999

Honorable Roy E. Barnes, Governor Members ofthe General Assembly of Georgia Members ofthe State Board of Technical and Adult Education Members ofthe Local Board ofDirectors
and Honorable Anthony Parker, President Albany Technical Institute
Ladies and Gentlemen:
As part of our audit of the statutory basis :financial statements of the State of Georgia presented in the State of Georgia 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, 1999, we have performed certain audit procedures at Albany Technical Institute. Accordingly, the :financial 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 :financial and compliance activities of Albany Technical Institute as of and for the year ended June 30, 1999. The particular information provided is enumerated in the Table of Contents.
This report is intended solely for the information and use of management and members of the Local Board of Directors ofAlbany Technical Institute and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

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Russell W. Hinton
State Auditor

SECTION I SELECTED FINANCIAL INFORMATION

ALBANY TECHNICAL INSTITUTE ANALYSIS OF CHANGES IN FUND BALANCE
BUDGET FUND YEAR ENDED JUNE 30, 1999

EXHIBIT"A"

FUND BALANCE - JULY 1, 1998
Reserved Surplus
ADDITIONS
Adjustments to Prior Year's Accounts Payable Excess of Funds Available over Expenditures
Exhibit "B"
Exhibit c
DEDUCTIONS
Unreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and Adult Education - Administrative Central Office Year Ended June 30, 1998
Adjustments to Prior Year's Accounts Receivable Refunds to Grantors
Georgia Department of Technical and Adult Education - Administrative Central Office Federal Financial Assistance
Reserved Fund Balance Carried Over from Prior Year as Funds Available
FUND BALANCE - JUNE 30, 1999

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR
EDUCATION

TOTAL

$

553,655.75

26 004.77 $

$

579,660.52 $

$ 553,655.75

0.00

26,004.77

0.00 $ 579,660.52

$

3,379.53

377,269.38
$

$

380,648.91 $

$ 3,379.53

0.00

377,269.38 0.00

0.00 $ 380,648.91

$

26,004.77 $

4,582.85

0.00 $ 26,004.77
4,582.85

5,18~.25

426,267.33

$

462,044.20 $

5,189.25 426,267.33
0.00 $ 462,044.20

$

498,265.23 $ -========-=o=.o=o $ 498,265.23

SUMMARY OF FUND BALANCE

Reserved

Federal Financial Assistance

For Refund to Georgia Department of Technical and

Adult Education - Administrative Central Office

$

For Refund to Grantor

For Continuation of Program

Flood Recovery Insurance Proceeds

Inventories

Live Work Projects

Prior Year Local Funds

Surplus

$ - 1-

2,302.25 885.35
17,788.88 136,046.05 121,696.44 102,613.10 115,767.68
1165.48 $

$
0.00

2,302.25 885.35
17,788.88 136,046.05 121,696.44 102,613.10 115,767.68
1,165.48

498,265.23 $ ==-=--o=.o=o $ 498,265.23

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, 1999

EXHIBIT "B"

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

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 6,755,313.00 $ 6,755,313.00 $

1,609,127.00

1,255,296.12

4,007,517.00

3,043,914.76

$ 12,371,957.00 $ 11,054,523.88 $

0.00 -353,830.88 -963,602.24
-1,317,433.12

0.00

426,267.33

426,267.33

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

$ 12,371,957.00 $ 11,480,791.21 $ ====-89=1,=16=5.7=9

$ 6,778,747.00 $ 6,611,196.30 $

4,329,681.00

3,500,268.82

1,100,697.00

854,829.33

162,832.00

137,227.38

167,550.70 829,412.18 245,867.67
25,604.62

Excess of Funds Available over Expenditures

$ 12,371,957.00 $ 11,103,521.83 $

1,268,435.17

---'---'---

$

377,269.38 $ ====37=7,=26=9.3=8

-2-

ALBANY TECHNICAL INSTITUTE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"B" LOTTERY FOR EDUCATION YEAR ENDED JUNE 30, 1999

EXHIBIT"C"

FUNDS AVAILABLE REVENUES
State Appropriations

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

- - - - - - $ 492,454.00 $ 492,454.00 $

0.00

EXPENDITURES Equipment-Technical Institutes

- - - - - - $ 492,454.00 $ 492,454.00 $

0.00

Excess of Funds Available over Expenditures

$

0.00 $=====0.=0=0

-3-

ALBANY TECHNICAL INSTITUTE RECONCILIATION OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1999

EXHIBIT "D"

Totals per Annual Supplement
Accruals June 30, 1999 June 30, 1998
Adjustments (List on File)

SALARIES

TRAVEL

$ 5,828,534.53 $

55,054.85

129,691.02 -142,742.82

-129.35 524.58

$ 5,815,482.73 $ ===5=5,4=50=.0=8

-4-

ALBANY TECHNICAL INSTITUTE RECONCILIATION OF PER DIEM AND FEES
YEAR ENDED JUNE 30, 1999

EXHIBIT"E"

Totals per Annual Supplement
Adjustments (List on file)

TYPE PAYMENT Other Expense

FEE AMOUNT

EXPENSE AMOUNT

$

88,662.55 $

2,259.97 $

TOTAL 90,922.52

-518.64

-518.64

$

88,662.55 $

1,741 .33 $ ======90=,4=0=3=.8=8

-5-

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

ALBANY TECHNICAL INSTITUTE
AODITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1999

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-820-97-05 FS-820-98-01

Previously Reported Corrective Action Implemented Partially Resolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequacies in Operation ofProperty Management System Finding Control Number: FS-820-98-01

Procedures were implemented in FY 99 to conduct an annual physical inventory. All equipment items were placed on the property system. An INTERMEC scanner was purchased to aid us in this process. Reconciliation of the equipment inventory records to clean up missing and duplicated items is in process.

SECTION ill CURRENT YEAR FINDINGS AND QUESTIONED COSTS

ALBANY TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1999
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL FIXED ASSETS Inadequacies in Operation ofProperty Management System Finding Control Number: FS-820-99-01
For the year under review, an examination ofthe equipment inventory records for the Institute's general fixed assets revealed the following deficiencies:
(1) Fifty (50) equipment items were selected to test the accuracy of the Institute's general fixed asset records. These items contained a value of $1,460,109.91 and were selected for the purpose of locating the equipment as recorded in the inventory records. Of the items tested, two (2) items totaling $4,094.00 were not located.
(2) One (1) item physically on hand could not be traced back to the inventory records.
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.