ALBANY TECHNICAL COLLEGE 1 INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREEDUPON PROCEDURES FOR FISCAL Y'EAR ENDED JUNE30,2011 Georgia ALBANY TECHNICAL COLLEGE - TABLE OF CONTENTS - INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES EXHIBITS A SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT B STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE C STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE Page 1 2 RUSSELLW. WINTON STATE AUDITOR (404) 866-2174 DEPARTMENOTF AUDITSAND ACCOUNTS 270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 December 8,2011 Members of the State Board of the Technical College System of Georgia Members of the Local Board of Directors and Honorable Anthony Parker, President Albany Technical College Independent Accountant's ReD0rt on A ~ ~ l v i Mn greed-U~onProcedures Ladies and Gentlemen: We have performed the procedures enumerated below, which were agreed to by the College and the System Office (Oversight Unit) of the Technical College System of Georgia, solely to assist you in assessing the accuracy of the annual financial statement information reported to the System Office by the College for inclusion in the State of Georgia's Comprehensive Annual Financial Report (CAFR) and Single Audt Report, and to assist you in assessing the accuracy of budget basis information provided in the Summary Budget Comparimn and Surplus Analjsis Report; Statement of Funds Available and Expenditures Compared tv Budget By Program and Funding Source, and the Statement of Changes To Fund Balance By Program and Funding a u r a ? which are attached as Exhibits A, B and C, respectively. Albany Technical College's management is responsible for the financial information reported to the System Office of the Technical College System of Georgia. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of the parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. 1. Review selected balance sheet items reported on the annual financial statement worksheets (cash, accounts receivable, accounts payable, deferred revenues, net assets). Confirm that these items have adequate supporting documentation and are properly reconciled to the College's general ledger. We did not note any exceptions as a resultof our procedures. 2. Obtain the College's GAAP basis worksheets for Statement of Net Assets and Statement of Revenues, Expenses and Changes in Net Assets (SRECNA) information that was submitted for inclusion in the State's CAFR and Single Audit. Utilizing test scripts, confirm that financial information presented in these worksheets properly support activity reported in the College's accounting records. We did not note any exceptions as a result of our procedures. 3. Obtain the College's Statement of Cash Flows submitted for inclusion in the State's CAFR and Single Audit. Utilizing cash flow worksheets, confirm information reported on Statement of Cash Flows. We did not note any exceptions as a result of our procedures. 4. Obtain the College's worksheets for financial statement note disclosure information submitted for inclusion in the State's CAFR and Single Audit. Utilizing notes worksheets and other supporting documentation confirm that note disclosures related to Cash, Investments, Accounts Receivable, Capital Assets, Long-Term Debt, Lease Obligations and Retirement Plans have been properly reported. The Operating Lease note disclosure information was not properly reported. Rental expense for 2 0 1 1 was reported as $380,535.43 and it should have been $468,381.89 per the College'sgeneral ledger. 5. Review the College's year end GAAP basis journal entries. Obtain documentation for GAAP journal entries and confirm that the entries were posted to the College's annual financial statement worksheets. We did not note any exceptions as a result of our procedures. 6. Confirm that State Appropriation revenues, receivables and remittances of prior year surplus balances have been properly recorded in the College's financial records. Prior year surplus balances should be netted against State Appropriation revenues in the GAAP basis financial statements; however, prior year surplus balances should be reflected as fund balance adjustments on the Budget basis financial statements. We did not note any exceptions as a result of our procedures. 7. Obtain listing of write-off requests for accounts receivable less than $3,000.00 for fiscal year 2011. Confirm that these write-off requests have been approved by the State Accounting Officer and have been posted to the College's financial statements. We did not note any exceptions as a result of our procedures. 8. Verify that the listing of salaries and travel reported to the Department of Audits is in accordance with O.C.G.A. 50-6-27 reconciles to amounts recorded in the College's financial statements. We did not note any exceptions as a result of our procedures. 9. Review the year end Budgetary Statements including the Summaty Budget Comparison and Surplus Analysis Report (Exhibit A), Statement of Funds Avaiable and Expnditures Compared to Budget By Program and Funding Source (Exhibit B) and the Statement of Changes To Fund Balance By Program and Funding Source (Exhibit C). Confirm that budget information presented in these statements supports activity reported in the College's accounting records, the legal level of budgetary control (funding source within program) was maintained, and determine if any budget overexpenditures exist. We did not note any exceptions as a result of our procedures. 10. Obtain documentation for Budget basis reserves reported by the College on the Summaly Budget Comparison and Surplus Analysis Report (Exhibit A). Confirm that the reserves are properly documented, valid and appropriate. We did not note any exceptions as a result of our procedures. 11. Review the H.O.P.E. Scholarship Program reconciliation between the College and the Georgia Student Finance Commission. Confirm that information reported to the Georgia Student Finance Commission has been reconciled with H.O.P.E. Scholarship activity reported on the College's financial records. We did not note any exceptions as a result of our procedures. 12. Review the Schedule of Expendituresof Federal Awards information submitted by the College for inclusion in the Statewide Single Audit. Confirm that the information is properly presented and supported by the College's accounting records. We did not note any exceptions as a result of our procedures. 13. Review capital asset records to ensure that (1) subsidiary ledgers are appropriately reconciled to the ledgers, (2) capitalization thresholds are being properly followed, and (3) a complete annual physical equipment inventory is being conducted and that issues noted during the physical inventory are being properly addressed by management. We did not note any exceptions as a result of our procedures. 14. Review bank reconciliations during the year under review to ensure that management is preparing them timely and that reconciling items are being addressed by management timely and in an appropriate manner. We did not note any exceptions as a result of our procedures. These agreed-upon procedures do not constitute an audit of the financial statements or any part thereof, the objective of which is to express an opinion on the financial statements or a part thereof. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the specified users listed above and is not intended to be and should not be used by anyone other than these specified parties. Respectfully submitted, t ~ k s e lWl . Hinton, CPA, CGFM State Auditor EXHIBITS ALBANY TECHNICAL COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT YEAR ENDEDJUNE 30,2011 REVENUES State Appropriation state General Funds Federal Funds Other Funds Total Revenues ADJUSTMENTS AND PROGRAM TRANSFERS CARRY-OVER FROM PRIOR YEARS Transfers from Reserved Fund Balance Total Funds Available EXPENDITURES Adult Llteracy Economlc Development Technical Education Total Expendltures Excess of Funds Avallable over Expendltures FUND BALANCE JULY 1 Reserved Unreserved ADJUSTMENTS Prlor Year Payables/Expend~tures Prior Year Rece~vables/Revenues UnreservedFund Balance (Surplus) Returned From the Technical College Year Ended June 30.2010 Refunds to Grantors FederalFlnanclalAssistance Returnedto Technical College System of Georgla Year Ended June 30.2010 Prlor Year Reserved Fund Balance Included In Funds Avallable FUND BALANCEJUNE 30 SUMMARY OF FUND BALANCE Reserved Federal FinancialAssistance Refunds to Grantors Sales and Services Live Work Projects Prlor Year Local Funds Continuing Education Technology Fees Inventories Bookstore Tu~tlon Total Reserved Unreserved Surplus Total Fund Balance BUDGET ACTUAL EXHIBIT "A" VARIANCE - FAVORABLE (UNFAVORABLE) ALBANY TECHNICAL COLLEGE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE YEAR ENDEDJUNE 30.2011 Adutt Literacy State Appropriatlon State General Funds Federal Funds Federal Funds Not Specifically ldentified Other Funds Total Adult Llteracy Economic Development Federal Funds Federal Funds Not Speclf~callyldent~fied Other Funds Total Economlc Development Technical Education State Appropriatlon State General Funds Federal Funds Federal Funds Not Specifically ldentified Other Funds Total Technical Education Total OperatingActivlty Original Appropriation Amended Appropriat~on Final Budget Current Year Revenues EXHIBIT '6" Funds Available Compared to Budget Prlor 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 ALBANY TECHNICAL COLLEGE STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE YEAR ENDEDJUNE 30,2011 Adult Literacy State Appropriation State General Funds Federal Funds Federal Funds Not Spec~ftcallyldentlfied Other Funds Total Adult L~teracy Economic Development Federal Funds Federal Funds Not Speclfically ldentttied Other Funds Total Economic Development Technical Education State Appropriation State General Funds Federal Funds Federal Funds Not Speclfically ldentlfled Other Funds Total Technical Education Total OperatingActivity Prior Year Reserves Not Available for Expenditure lnventorles Refundsto Grantors Begnnlng Fund Balance/(Deficlt) July 1 Fund Balance Carrled Over from Prlor Per~od as Funds Available Return of F~scaYl ear 2010 Surplus Pr~orPertod Adjustments Budget Unit Totals EXHIBIT "C" Other Adjustments Early Return F~scaYl ear 2 0 1 1 Surplus Excess (Deficiency) of Funds Ava~lable Over/(Under) Expend~tures Ending Fund Balance/(Deficit) June 3 0 Analys~sof End~ngFund Balance Reserved Surplus/(Deficit) Total Summary of End~ngFund Balance ReSeNed Federal Ftnanc~aAl ss~stance Refunds t o Grantors Sales and S e ~ ~ c e s Llve Work Projects Prior Year Local Funds Contlnulng Educat~on Technology Fees lnventor~es Bookstore Tu~Uon Unreserved Surplus Total Ending Fund Balance - June 30