Altamaha Technical College, Jesup, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2010

1REPORT ON AUDIT OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED J U N E 30,2010
Georgia Department of Audits and Accounts
Russell W,Hinton

ALTAMAHA TECHNICAL COLLEGE - TABLE OF CONTENTS -
SECTION I FINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION REQUIRED SUPPLEMENTARY INFORMATION MANAGEMENT'S DISCUSSION AND ANALYSIS BASIC FINANCIAL STATEMENTS EXHIBITS A STATEMENTOFNETASSETS B STATEMENT OF REVENUES. EXPENSES AND CHANGES IN NET ASSETS C STATEMENT OF CASH FLOWS D NOTES TO THE FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION SCHEDULES 1 BALANCE SHEET (NON-GAAP BASIS) BUDGET FUND
2 SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT
(NON-GAAP BASIS) BUDGET FUND 3 STATEMENT OF PROGRAM REVENUESAND EXPENDITURES BY FUNDING
SOURCE COMPARED TO BUDGET (NON-GAAP BASIS) BUDGET FUND
4 RECONCILIATION OF SALARIES AND TRAVEL
SECTION II FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

Russell W. Hinton
STATE AUDITOR
(404) 656-2174

DEPARTMENOTF AUDITSAND ACCOUNTS
270 Washington Street, S.W., Suite 1-1 56 Atlanta, Georgia 30334-8400
October 6, 2010

Honorable Sonny Perdue, Governor Members of the General Assembly of Georgia Members of the State Board of Technical and Adult Education Members of the Local Board of Directors
and Honorable Lorette Hoover, President Altamaha Technical College
INDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the accompanying basic financial statements (Exhibits A through D) of Altamaha Technical College, an organizational unit of the State of Georgia, as of and for the year ended June 30, 2010. These financial statements are the responsibility of the Technical College's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal controls over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Technical College's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As discussed in Note 1,the financial statements of Altamaha Technical College are intended to present the financial position and changes in financial position and cash flows of only that portion of the business-type activities of the State of Georgia that is attributable to the transactions of Altamaha Technical College. They do not purport to, and do not, present fairly the financial position and changes in financial position and cash flows of the State of Georgia, in conformity with accounting principles generally accepted in the United States of America.
In our opinion, the basic financial statements referred to above present fairly, in all material respects, the financial position of Altamaha Technical College as of June 30, 2010, and its changes in financial position and cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Management's Discussion and Analysis is not a part of the basic financial statements but is required supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of this supplementary information. However, we did not audit this information and express no opinion on it.

Our audit was conducted for the purpose of forming an opinion on the basic financial statements of Altamaha Technical College taken as a whole. The accompanying supplementary information (Schedules 1through 4) is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Respectfully submitted,

.- .

~uss)?Wll . Hinton, CPA, CGFM State Auditor

REQUIRED SUPPLEMENTARY INFORMATION

ALTAMAHA TECHNICAL COLLEGE
Management's Discussion and Analysis
The following is management's discussion and analysis of Altamaha Technical College's financial performance for the fiscal year ending June 30, 2010, with comparative data from fiscal year ending June 30, 2009. This discussion has been prepared by and is the responsibility of management.
Overview of the Financial Satemenls and Financial Analysis
This annual report consists of a series of financial statements prepared in accordance with the rules and regulations established by the Governmental Accounting Standards Board.
There are three financial statements presented: the Statement of Net Assets; the Statement of Revenues, Expenses and Changes in Net Assets; and the Statement of Cash Flows. The Statement of Net Assets used in conjunction with the Statement of Revenues, Expenses and Changes in Net Assets contains information concerning the Technical College's finances and activities as a whole and assists with providing an answer to the question "Is the Technical College as a whole better or worse off as a result of the year's activities?" These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting method used by corporations and other private sector companies. All revenues and assets are recognized when the service is provided and expenses and liabilities are recognized when others provide the goods or service, regardless of when cash is exchanged.
The Statement of Cash Flows is a valuable tool when evaluating the ability of the Technical College t o meet financial obligations as they mature. This statement presents information related to cash inflows and outflows summarized by operating, noncapital financing, capital and related financing and investing activities.
This discussion and analysis of the Technical College's financial statements provides an overview of its financial activities for the year.
Statement of Net Asseb
The purpose of the Statement of Net Assets is to present to the users of the financial statements a fiscal snapshot of the Technical College at a specific point in time. The statement presents the assets, liabilities and net assets of the Technical College as of the end of the fiscal year. Assets and liabilities are reported as current and noncurrent and the difference between assets and liabilities is reported as net assets. Over a period of time the increases and decreases reflected in the Statement of Net Assets, when considered with other nonfinancial facts such as enrollment levels and the condition of the facilities, can provide a measure to aid in determining whether the Technical College's financial position is improving or deteriorating.
Net assets are divided into three major categories. The first category, invested in capital assets, net of debt, provides information concerning the Technical College's equity in property, plant and equipment owned by the Technical College. The second category is restricted net assets, expendable. Expendable restricted net assets are available for expenditure by the Technical College but must be spent for purposes as determined by donors and/or external entities that have placed time or purpose restrictions on the use of the assets. The final category is unrestricted net assets, which are available for expenditure by the Technical College for any lawful purpose deemed necessary to operate the Technical College.

Statement of Net Assets (Thousands of Dollars) June 30,2010

June 30,2009

Assets Current Assets Capital Assets, Net
Total Assets

Liabilities Current Liabilities Noncurrent Liabilities

Total Liabilities

Net Assets

Invested in Capital Assets, Net of Debt

$

10,029

Restricted- Expendable

1

Unrestricted

1,310

Total Net Assets

$

10,358

273

The total assets of the Technical College increased by approximately $1,060,000 from the prior year. This can be mainly attributed to an increase of approximately $1,389,000 in current assets. The Technical College's tuition and fee revenue increased due to an 81% increase in enrollment for the fiscal year. Also, for the first time, the Technical College was allowed to retain and carry over up to 15% of its tuition revenue in fiscal year 2010. This increase in assets follows the institutional philosophy to use available resources to acquire and improve all areas of the Technical College to better serve the instruction and public service missions of the Technical College.
Total liabilities for the fiscal year increased by approximately $351,000. The primary reason for the increase was in current liabilities, predominately from the approximate increase of all current liability accounts. Compensated Absences, including the current and noncurrent portions, increased by $139,772 from fiscal year 2009. The tremendous growth of the Technical College also increased expenditures and therefore accounts and salaries payable. The combination of the increase in total assets of approximately $1,060,000 and the increase in total liabilities of approximately $351,000 yields an increase in total net assets of approximately $709,000. The increase in total net assets is primarily in the category of Unrestricted Net Assets which increased approximately $1,037,000 primarily due to the Technical College being allowed to retain and carry over up to 15% of tuition revenue in fiscal year 2010. However, all categories of Net Assets did not increase during the year.
Statement of Revenues, Expenses and Changes in Net Asmiis
The purpose of the Statement of Revenues, Expenses and Changes in Net Assets is to present the revenues received by the Technical College, both operating and nonoperating, and the expenses incurred by the Technical College, operating and nonoperating, and any other revenues, expenses, gains and losses received or spent by the Technical College during the fiscal year. Changes in total net assets as presented on the Statement of Net Assets are based on the information presented in the Statement of Revenues, Expenses and Changes in Net Assets.

Operating revenues are received for providing goods and/or services to various customers and constituencies of the Technical College. Operating expenses are those expenses paid to acquire or produce the goods and/or services provided in return for the operating revenues, and to carry out the mission of the Technical College. Therefore, nonoperating revenue is received when no goods or services are provided in exchange for the revenue. With the issuance of Statement No. 35, new guidelines were established by the Governmental Accounting Standards Board (GASB), which changed the classifications of state appropriations and gifts from operatingto nonoperating revenue. This change may result in an operating deficit that is offset by a nonoperatingsurplus.

Statement of Revenues, Expenses and Changes in Net Assets (Thousandsof Dollars)
June 30,2010

June 30,2009

Operating Revenues Operating Expenses

Operating Loss

$

-10,360

$

-7,582

Nonoperating Revenues and Expenses

10,783

7,036

Income (Loss) Before Other Revenues,

Expenses, Gains or Losses

$

423

$

-546

Other Revenues, Expenses, Gains or Losses

286

890

Increase (Decrease) in Net Assets

$

709

$

344

Net Assets at Beginningof Year Net Assets at End of Year

The Statement of Revenues, Expenses and Changes in Net Assets reflects a positive year with an increase in the net assets at the end of the year. Some highlights of the information presented on the Statement of Revenues, Expensesand Changes in Net Assets are as follows:

Revenue by Source (Thousands of Dollars) For the Years Ended June 30,2010, and June 30,2009

June 30,2010

June 30,2009

Operating Revenue

Tuition and Fees

$

3,010

$

1,453

Grants and Contracts

38

29

Sales and Services of Educational Departments

642

400

Rents and Royalties

33

23

Other

1

10

Total Operating Revenue

Nonoperating Revenue State Appropriations Federal Grants and Contracts Nonoperating Gifts Other

Total Nonoperating Revenue

Capital Grants and Gifts State Nongovernmental

Total Capital Grants and Gifts

Special Item - Transfer In

Total Revenues

Expenses (Thousands of Dollars) For the Years Ended June 30,2010, and June 30,2009
June 30,2010
Operating Expenses Instruction
Nonoperating Expenses Other
Total Expenses

June 30,2009

The sources of operating revenue for the Technical College are tuition and fees, grants and contracts, auxiliary services, and educational activities. The increase in operating revenue of approximately $1,809,000 is directly related to an increase in enrollment for fiscal year 2010.

Tuition and Fees increased by $1,557,000. This is directly related to the increased enrollment of 81%from fiscal year 2009.

Nonoperating Federal grants and contracts increased by $2,099,000. This is mainly attributed to an increase in Pell and FSEOG scholarships and gifts of approximately $1,260,000 and the receipt of $743,044 in State Fiscal Stabilization Federal stimulus funds duringfiscal year 2010.

All categories of Operating Expenses increased during fiscal year 2010 mainly attributed to the addition of Glynn, Camden and Mclntosh Counties to the Technical College's service delivery area during fiscal year 2010 and the increase in enrollment during fiscal year 2010.

The largest increase in Operating Expenses were for Personal Services expenses which increased by approximately $2,400,000. The increase was mainly attributed to the additional personnel hired to operate the new locations as well as the increase in the associated fringe benefits. Also, fiscal year 2009 total fringe benefits were lower than usual due to the Technical College not being required to pay the employer's share of health insurance fringe benefits for the last four months of the fiscal year.

In the category of nonoperating revenues (expenses), state appropriations increased by approximately $1,634,000. Additional state funds were provided to the Technical College to assist the Technical College with operations in its additional counties of its service delivery area. While it
appears that the Technical College received additional new funding from the State, given the mandatory cost increases of various expense categories, the Technical College actually had a relatively flat funding year in state appropriations when all things are considered.

Statement of Cash Flows
The purpose of the Statement of Cash Flows is to provide relevant information concerning the cash receipts and payments of the Technical College during the year. It also provides information concerning the Technical College's ability to generate future cash flows and to meet its obligations as they come due. The statement is divided into four sections. The first section reports on the operating cash flows and shows the net cash used by the operating activities of the Technical College. The second section reflects cash flows from noncapital financing activities. The third section deals with cash flows from capital and related financing activities, which reflects the cash used for the acquisition and construction of capital related items. The final section reconciles the net cash used to the operating income or loss reflected on the Statement of Revenues, Expenses and Changes in Net Assets.

Statement of Cash Flows (Thousands of Dollars)

June 3 0 , 2 0 1 0

June 3 0 , 2 0 0 9

Cash Provided (Used) By:

Operating Activities

$

-9,600

Noncapital Financing Activities

10,916

Capital and Related FinancingActivities

-206

Net Change in Cash Cash, Beginningof Year

Cash, End of Year

Capita/ Assets
During fiscal year 2010, additions to the Technical College's depreciable capital assets totaled $484,289. Equipment at a net value of approximately $8,600 was transferred from the College of Coastal Georgia during fiscal year 2010 which is reflected as a Special Item Transfer on the Statement of Revenues, Expendituresand Changes in Net Assets. Also, bond funds of $14,375,000 have been allocated by the Technical College System of Georgia for the Technical College to build a new campus in Glynn County. Arrangements are currently being made to obtain land for the site in Glynn County. This project will be managed by the Georgia State Financing and Investment Commission.
Long- Term Liabilities
Altamaha Technical College's total liability for compensated absences at June 30, 2010, was $522,055. The noncurrent portion of the compensated absences in the amount of $214,474 is shown in the Noncurrent Liabilities on the Statement of Net Assets. The current portion of the compensated absences in the amount of $307,581 is shown as a current liability on the Statement of Net Assets.
For additional information on Long-Term Liabilities see Notes 1and 7 in the Notes to the Financial Statements.
Economic Outlook
The Technical College is unaware of any currently known fact, decision, or condition that is expected to have a significant effect on the financial position or change how the Technical College operates for the next fiscal year. The Technical College is lookingforward to the construction of a campus in Glynn County. As in prior years, the Technical College's overall financial position is strong. Enrollment has increased annually for the past 2 years and this trend is expected to continue into the next fiscal year. As a result, the Technical College anticipates the next fiscal year will be much like the last and the Technical College will maintain a close watch over resources to maintain the ability to react to unknown internal and external issues.
Lorette Hoover, President Altamaha Technical College

BASIC FINANCIAL STATEMENTS

ALTAMAHA TECHNICAL COLLEGE STATEMENT OF NET ASSETS JUNE 30,2010
ASSETS
Current Assets Cash and Cash Equivalents Accounts Receivable Federal Financial Assistance Other Prepaid Items Inventories
Total Current Assets
Noncurrent Assets Capital Assets, Net
Total Assets
LIABILITIES
Current Liabilities Salaries Payable Accounts Payable Deferred Revenue Funds Held for Others Compensated Absences
Total Current Liabilities
Noncurrent Liabilities Compensated Absences
Total Liabilities
NET ASSETS
Invested in Capital Assets, Net of Related Debt Restricted:
Expendable Unrestricted
Total Net Assets

EXHIBIT "A"

The notes to the financial statements are an integral part of this statement. -2-

ALTAMAHA TECHNICAL COLLEGE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
YEAR ENDEDJUNE 30.2010
OPERATING REVENUES
Student Tuition and Fees Less: Scholarship Allowances
Grants and Contracts Federal
Rents and Royalties Sales and Services Other Operating Revenues
Total Operating Revenues
OPERATING EXPENSES Salaries Benefits Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation Total Operating Expenses
Operating Income (Loss)
NONOPERATING REVENUES (EXPENSES]
State Appropriations Grants and Contracts
Federal Gifts Other Nonoperating Expenses
Net Nonoperating Revenues
Income (Loss) Before Other Revenues, Expenses, Gains, or Losses
Capital Grants and Gifts State Nongovernmental
Total Capital Grants and Gifts
Special Item - Equipment Transfer (See Note 14)
Total Other Revenues, Expenses, Gains, or Losses
Increase (Decrease) ~nNet Assets
Net Assets - Beginning of Year
Net Assets - End of Year
The notes to the financial statements are an integral part of this statement.
-3-

EXHIBIT "B"

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ALTAMAHA TECHNICAL COLLEGE STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30,2010
CASH FLOWS FROM OPERATING ACTIVITIES Tuition and Fees Grants and Contracts Sales and Services of Educational Departments Payments t o Suppliers Payments to Employees Payments for Scholarships and Fellowships Other Receipts (Payments)
Net Cash Provided (Used) by Operating Actrvlties
CASH FLOWS FROM NONCAPITALFINANCINGACTIVITIES State Appropriations Agency Funds Transactions Gifts and Grants Received for Other than Capital Purposes Other Nonoperating Receipts
Net Cash Flows Provided (Used) by Noncapital FinancingActivities
CASH FLOWS FROM CAPITAL AND RELATED FINANCINGACTlVlf lES Capital Grants and Gifts Received Purchases of Capital Assets
Net Cash Provided (Used) by Capital and Related Financing Activities
Net Increase (Decrease) in Cash
Cash and Cash Equivalents - Beginning of Year
- Cash and Cash Equivalents End of Year
RECONCILIATIONOF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating Income (Loss) Adjustments to Reconc~leOperating Income to Net Cash
Provided (Used) by Operating Activities Depreciation Expense Change in Assets and Liabilities: Accounts Receivable Inventories Prepaid Items Accounts Payable Salaries Payable Deferred Revenue Compensated Absences
Net Cash Provided (Used) by Operating Activities
NONCASH ACTIVITY Gift of Capital Assets Reducing Proceeds of Capital Grants and Gifts
Special Item - Equipment Transfer
The notes to the financial statements are an integral part of this statement. -5-

EXHIBIT "C"

ALTAMAHA TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2010

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Altamaha Technical College is one of twenty-eight (28) State supported member colleges of postsecondary education in Georgia which comprise the Technical College System of Georgia, an organizational unit of the State of Georgia. The accompanying financial statements reflect the operations of Altamaha Technical College as a separate reporting entity.
The Technical College's Local Board of Directors is composed of nine (9) members serving staggered three-year terms who are appointed by the State Board of the Department of Technical and Adult Education. Appropriation of State funds is made to the Technical College System of Georgia by the General Assembly of Georgia. The System Office of the Technical College System of Georgia determines the amount of State appropriations to be received by Altamaha Technical College. The Technical College does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, Altamaha Technical College is considered an organizational unit of the Technical College System of Georgia 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 (GASB) Codification of Governmental Accounting and Financial Reporting Standards.
Legally separate, tax exempt organizations whose activities primarily support member colleges of postsecondary education in Georgia which comprise the Technical College System of Georgia (an organizational unit of the State of Georgia), are considered potential component units of the State. See Note (16)for additional information.
FINANCIAL STATEMENT PRESENTATION The financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) as prescribed by the GASB and are presented as required by these standards to provide a comprehensive, entity-wide perspective of the Technical College's assets, liabilities, net assets, revenues, expenses, changes in net assets, cash flows, and replaces the fund group perspective previously required.
GAAP requires that the reporting of summer school revenues and expenses be split between fiscal years rather than in one fiscal year. Due to lack of materiality, the Technical Colleges of the Technical College System of Georgia will continue to report summer revenues and expenses in the year in which the predominate activity takes place.
BASIS OF ACCOUNTING For financial reporting purposes, the Technical College is considered a special-purpose government engaged only in business-type activities. Accordingly, the Technical College's financial statements have been presented using the economic resources measurement focus and the accrual basis of accounting, except as noted in the preceding paragraph. Under the accrual basis, revenues are recognized when earned, and expenses are recorded when an obligation has been incurred. All significant intra-collegetransactions have been eliminated.
The Technical College has the option to apply all Financial Accounting Standards Board (FASB) pronouncements issued after November 30, 1989, unless FASB conflicts with GASB. The Technical College has elected to not apply FASB pronouncements issued after the applicable date.

ALTAMAHA TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30,2010

EXHIBIT "D"

CASH AND CASH EQUIVALENTS Cash and Cash Equivalents include petty cash and demand deposits in authorized financial institutions.
ACCOUNTS RECEIVABLE Accounts receivable consist of tuition and fee charges to students, reimbursements due from Federal, State, local and private grants and contracts, and other receivables disclosed from information available.
INVENTORIES Resale inventories are valued at cost usingthe consumption method.
CAPITAL ASSETS Capital assets are recorded at cost at date of acquisition, or fair market value at the date of capital contribution. The Technical College capitalizes all land and land improvements. For equipment, the Technical College's capitalization policy includes all items with a unit cost of $5,000.00 or more, and an estimated useful life of greater than one year. Buildings and Building Improvements, Improvements Other Than Buildings, Easements, Rights, Patents, Trademarks, Copyrights and Library Collections that exceed $100,000.00 or significantly increase the value or extend the useful life of the asset are capitalized. For infrastructure and software, the Technical College's capitalization threshold is $1,000,000.00. Routine repairs and maintenance are charged to operating expense in the year in which the expense was incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally 1 0 to 4 0 years for buildings, 1 5 to 25 years for infrastructure, 1 5 years for improvements other than buildings, 1 0 years for library books, 3 to 1 0 years for equipment and software, and 1 0 to 2 0 years for intangibles.
To fully portray capital assets acquired by the Technical Colleges of the Technical College System of Georgia, it is necessary to look at the activities of the Georgia State Financing and Investment Commission (GSFIC)- an organization that is external to both the Technical College and the Technical College System of Georgia. The GSFIC issues bonds for and on behalf of the State of Georgia, pursuant to powers granted to it in the Constitution of the State of Georgia and the Act creating GSFIC. The bonds are issued for the purpose of acquiring capital assets and this debt constitutes direct and general obligations of the State of Georgia, to the payment of which the full faith, credit and taxing power of the State are pledged.
For major construction projects, GSFIC records construction in progress on its books throughout the construction period and at project completion transfers the entire project costs to Altamaha Technical College to be recorded as an asset on the Technical College's books. For the year ended June 30, 2010, GSFIC did not transfer any capital additions to Altamaha Technical College.
DEFERRED REVENUES Deferred revenues include amounts received for tuition and fees and other activities prior to the end of the fiscal year but related to the subsequent accounting period. Deferred revenues also include amounts receivedfrom grant and contract sponsors that have not yet been earned.

ALTAMAHA TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2010

EXHIBIT "D"

COMPENSATED ABSENCES Employee vacation pay is accrued for financial statement purposes when vested. The liability and expense incurred are recorded at year-end as accrued vacation payable in the Statement of Net Assets, and as a component of compensation and benefit expense in the Statement of Revenues, Expenses and Changes in Net Assets. Altamaha Technical College had an accrued liability for compensated absences in the amount of $382,283.06 as of July 1, 2009. For fiscal year 2010, $415,531.66 was earned in compensated absences and employees were paid $275,759.37, for a net increase of $139,772.29. The ending balance as of June 30, 2010, in accrued liability for compensated absences was $522,055.35.
NONCURRENT LIABILITIES Noncurrent liabilities include liabilities that will not be paid within the next fiscal year.
NET ASSETS The Technical College's net assets are classified as follows:
Invested in capital assets, net of related debt This amount represents the Technical College's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt.
Restricted net assets - expendable Restricted expendable net assets include unexpended grant funds
of $250.00 due to a grantor agency.
Unrestricted net assets: Unrestricted net assets represent available resources derived from student tuition and fees, state appropriations, and sales and services of educational departments. These resources will be used for transactions relating to the educational and general operations of the Technical College, and may be used at the discretion of the governing board to meet subsequent fiscal year expenses for those purposes, except for unexpended state appropriations (surplus) of $6,057.91. Unexpended state appropriations must be refunded to the Technical College System of Georgia for remittance t o the Office of Treasury and Fiscal Services.
When an expense is incurred that can be paid using either restricted or unrestricted resources, the Technical College's policy is to first apply the expense towards unrestricted resources, and then towards restricted resources.
INCOME TAXES Altamaha Technical College, as a political subdivision of the State of Georgia, is excluded from Federal income taxes under Section 115(1) of the Internal Revenue Code, as amended.
CLASSIFICATION OF REVENUES AND EXPENSES The Statement of Revenues, Expenses and Changes in Net Assets classify the College's fiscal year activity as operating and nonoperating according to the following criteria:
Operating Revenues Operating revenues include activities that have the characteristics of exchange transactions, such as (1)student tuition and fees, net of scholarship allowances, (2) certain Federal, state and local grants and contracts, and (3)sales and services.

ALTAMAHA TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2010
Nonoperating Revenues Nonoperating revenues include activities that have the characteristics of nonexchange transactions, such as gifts and contributions, and other revenue sources that are defined as nonoperating revenues by GASB No. 9, Rewing Cash Flows of Proprietary and Nonexpendable Trust Funds and Governmental Entities 73at Use Proprietary Fund Accounting, and GASB No. 34, such as state appropriations and investment income.
Operating Expenses Operating expenses include activities that have the characteristics of exchange transactions.
Nonoperating Expenses: Nonoperating expenses include activities that have the characteristics of nonexchangetransactions, such as capital financing costs related to investment activity.
SCHOLARSHIP ALLOWANCES Student tuition and fee revenues, and certain other revenues from students, are reported at gross with a contra revenue account of scholarship allowances in the Statement of Revenues, Expenses and Changes in Net Assets. Scholarship allowances are the difference between the stated charge for goods and services provided by the Technical College, and the amount that is paid by students and/or third parties making payments on the students' behalf. Certain governmental grants, such as Pell grants, and other Federal, state or nongovernmental programs are recorded as either operating or nonoperating revenues in the Technical College's financial statements. To the extent that revenues from such programs are used to satisfy tuition and fees and other student charges, the Technical College has recorded contra revenue for scholarship allowances.
NOTE 2: DEPOSITS
DEPOSITS The custodial credit risk for deposits is the risk that in the event of a bank failure, the Technical College's deposits may not be recovered. Funds belonging to the State of Georgia (and thus the Technical College) cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral any one or more of the following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59:
1. Bonds, bills, certificates of indebtedness, notes, or other direct obligations of the United States or of the State of Georgia.
2. Bonds, bills, certificates of indebtedness, notes, or other obligations of the counties or municipalities of the State of Georgia.
3. Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose.
4. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia.
5. Bonds, bills, certificates of indebtedness, notes, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest, or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
6. Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation.

ALTAMAHA TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2010

EXHIBIT "D"

As authorized in the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies, which allows agencies of the State of Georgia (and thus Altamaha Technical College), the option of exempting demand deposits from the collateral requirements.
At June 30, 2010, the carrying value of deposits was $1,587,151.46 and the bank balance was $1,923,375.95. Of the Technical College's deposits, $1,673,375.95 were uninsured. Of these uninsured deposits, $1,673,375.95 were collateralized with securities held by the pledging financial institution in the Technical College's name.
NOTE 3: ACCOUNTS RECEIVABLE
Accounts receivable at June 30, 2010, consists of the following:

Student Tuition and Fees Federal Funds Other
Total Accounts Receivable
NOTE 4: INVENTORIES Inventories at June 30, 2010, consist of the following:
Bookstore

ALTAMAHA TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30,2010

EXHIBJT "D"

NOTE 5: CAPITAL ASSETS

Followingare the changes in capital assets for the year ended June 30,2010:

Beginning Balance July 1,2009

Special ltem
Transfer

Additions

Reductions

Ending Balance June 30,2010

Capital Assets, Not Belng Depreciated: Land and Land Improvements

$ 231,642.00 $

0.00 $

0.00 $

0.00 $ 231,642.00

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

$ 12,831,404.80 1,415,607.32 5,958,227.74$ 212,998.21

$ 12,550.96
18,721.00 434,601.50 $ 37,136.07

$
130,508.11 6,316.37

12,843,955.76 1,415,607.32 6,281,042.13
243,817.91

Total Capital Assets Being Depreciated $ 20,418,238.07$ 18,721.00 $ 484,288.53 $ 136,824.48$ 20,784,423.12

Less: Accumulated Depreciation: Buildingand Building Improvements Improvements Other Than Buildings Equipment Library Collections

$ 3,833,317.78 l,252,586.25 5,126,842.78$ 79,007.63

$
10,072.58

302,721.11 70,587.78
417,840.53 $ 31,124.53

$
130,508.11 6,316.37

4,136,038.89 1,323,174.03 5,424,247.78
103,815.79

Total Accumulated Depreciat~on

$ 10,291,754.44$ 10,072.58$ 822.273.95 $ 136,824.48$ 10,987,276.49

Total Capital Assets, Being Depreciated, Net $ 10,126,483.63$ 8,648.42$ -337,985.42$

0.00 $ 9,797,146.63

Capital Assets, Net

NOTE 6: DEFERRED REVENUE Deferred revenue at June 30,2010,consists of the following:

Prepaid Tuition and Fees
Federal Grants and Contracts
Total Deferred Revenue

NOTE 7: LONG-TERM LIABILITIES

Long-Term liability activity for the year ended June 30,2010,was as follows:

Beginning Balance July 1,2009

Additions

Reductions

Ending Balance June 30,2010

Other Liabilities Compensated Absences

Current Portion

ALTAMAHA TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30,2010

EXHIBIT "D"

NOTE 8: NET ASSETS

Changes in Net Asset activity for the year ended June 30,2010, was as follows:

Balance
July 1,2009

Additions

Reductions

Balance
June 30,2010

Invested in Capital Assets Net of Related Debt

$ 10,358,125.63$ -329,337.00

Restricted Net Assets

0.00

1,088.31 $

838.31

250.00

Unrestricted Net Assets

273,054.74 14,841,709.69 13,804,291.40 1,310,473.03

Total Net Assets

NOTE 9: LEASE OBLIGATIONS
OPERATING LEASES Altamaha Technical College has entered into certain agreements to lease copiers which are classified as operating leases (leases on assets not recorded on the balance sheet). These leases generally contain provisions that, at the expiration date of the original term of the lease, the Technical College has the option of renewing the lease on a year-to-year basis. Amounts are included only for multi-year leases and for cancellable leases for which an option to renew for the subsequent fiscal year has been exercised.
Expenses for rental of copiers under operating leases for the year ended June 30, 2010, totaled $22,030.20.
SUMMARY OF LEASE OBLIGATIONS Future commitments for noncancellable operating leases having remaining terms in excess of one year as of June 30, 2010, were as follows:

Operating Leases

Year EndingJune 30: 2011 2012 2013 2014 2015

$ 22,886.28 22,886.28 22,886.28 17,437.88 6,133.24

Total Minimum Lease Payments

$

92,229.96

ALTAMAHA TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2010

EXHIBIT "DM

NOTE 10: RETIREMENT PLANS
Altamaha Technical College participates in various retirement plans administered by the State of Georgia under two major retirement systems: Employees' Retirement System of Georgia (ERS System) and Teachers Retirement System of Georgia. These two systems issue separate publicly available financial reports that include the applicable financial statements and required supplementary information. The reports may be obtained from the respective system offices. The significant retirement plans that Altamaha Technical College participates in are described below. More detailed information can be found in the plan agreements and related legislation. Each plan, including benefit and contribution provisions, was established and can be amended by State law.
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA The ERS System is comprised of individual retirement systems and plans covering substantially all employees of the State of Georgia except for teachers and other employees covered by the Teachers Retirement System of Georgia. One of the ERS System plans, the Employees' Retirement System of Georgia (ERS), is a cost-sharing multipleemployer defined benefit pension plan that was established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees and has the powers and privileges of a corporation. ERS acts pursuant to statutory direction and guidelines, which may be amended prospectively for new hires but for existing members and beneficiaries may be amended in some aspects only subject to potential application of certain constitutional restraints against impairment of contract.
On November 20, 1997, the Board created the Supplemental Retirement Benefit Plan (SRBP-ERS) of ERS. SRBP-ERS was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of ERS. The purpose of the SRBP-ERS is to provide retirement benefits to employees covered by ERS whose benefits are otherwise limited by IRC Section 415. Beginning January 1,1998, all members and retired former members in ERS are eligible to participate in the SRBP-ERS whenever their benefits under ERS exceed the limitation on benefits imposed by IRC Section 415.
The benefit structure of ERS is established by the Board of Trustees under statutory guidelines. Unless the employee elects otherwise, an employee who currently maintains membership with ERS based upon State employment that started prior to July 1,1982, is an "old plan" member subject to the plan provisions in effect prior to July 1,1982. Members hired on or after July 1,1982, but prior to January 1,2009, are "new plan" members subject to the modified plan provisions. Effective January 1,2009, newly hired State employees, as well as rehired State employees who did not maintain eligibility for the "old" or "new" plan, are members of the Georgia State Employees' Pension and Savings Plan (GSEPS). ERS members hired prior to January 1,2009 also have the option to change their membership to the GSEPS plan.
Under the old plan, new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 1 0 years of creditable service and attainment of age 6 0 or 3 0 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60.

ALTAMAHA TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30,2010
Retirement benefits paid to members are based upon a formula adopted by the Board of Trustees for such purpose. The formula considers the monthly average of the member's highest 24 consecutive calendar months of salary, the number of years of creditable service, and the member's age at retirement. Post-retirement cost-of-living adjustments may be made to members' benefits provided the members were hired prior to July 1,2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS.
Member contribution rates are set by law. Member contributions under the old plan are 4% of annual compensation up to $4,200.00 plus 6% of annual compensation in excess of $4,200.00. Under the old plan, Altamaha Technical College pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these Altamaha Technical College contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. Altamaha Technical College is required to contribute at a specified percentage of active member payroll established by the Board of Trustees determined annually in accordance with actuarial valuation and minimum funding standards as provided by law. These Altamaha Technical College contributions are not at any time refundable to the member or his/her beneficiary.
Employer contributions required for fiscal year 2010 were based on the June 30, 2007 actuarial valuation for the old and new plans and were set by the Board of Trustees on September 18, 2008 for GSEPS as follows:
Old Plan* New Plan GSEPS
* 5.66%exclusive of contributions paid by the employer on behalf of old plan members
Members become vested after 1 0 years of service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits.
TEACHERS RETIREMENT SYSTEM OF GEORGIA The Teachers Retirement System of Georgia (TRS) is a cost-sharing multiple-employer defined benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS.
On October 25, 1996, the Board created the Supplemental Retirement Benefit Plan of the Georgia Teachers Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1,1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits.

ALTAMAHA TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30,2010

EXHIBIT "D"

TRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by State statute. A member is eligible for normal service retirement after 3 0 years of creditable service, regardless of age, or after 1 0 years of service and attainment of age 60. A member is eligible for early retirement after 2 5 years of creditable service.

Normal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 6 0 or by 7% for each year or fraction thereof by which the member has less than 3 0 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available.

TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 1 0 years of service. If a member terminates with less than 1 0 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2010. were 5.25% of annual salary. The member contribution rate will increase to 5.53% effective July 1,2010. Employer contributions required for fiscal year 2010 were 9.74% of annual salary as required by the June 30,
2007 actuarial valuation. The employer contribution rate will increase to 10.28% effective July 1,
2010.

The following table summarizes Altamaha Technical College contributions by defined benefit plan for the years ending June 30,2010, June 30,2009, and June 30,2008:

ERS

Required

Percent

Contribution Contributed

TRS

Required

Percent

Contribution Contributed

GEORGIA DEFINED CONTRIBUTION PLAN
Plan Descflption Altamaha Technical College participates in the Georgia Defined Contribution Plan (GDCP) which is a single-employer defined contribution plan established by the General Assembly of Georgia for the purpose of providing retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees of the Employees' Retirement System of Georgia.
Benefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board of Trustees. If a member has less than $3,500.00 credited to his/her account, the Board of Trustees has the option of requiring a lump sum distribution to the member in lieu of making periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary. Benefit provisions are established by State statute.

ALTAMAHA TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2010

EXHIBlT "D"

The Employees' Retirement System of Georgia issues a financial report each fiscal year which may be obtained through ERS.
Contributionsand Vesting
Member contributions are seven and one-half percent (7.5%) of gross salary. There are no employer contributions. Contribution rates are established by State statute. Earnings are credited to each member's account in a manner established by the Board of Trustees. Upon termination of employment, the amount of the member's account is refundable upon request by the member. The Technical College's payroll for the year ended June 30, 2010, for employees covered by GDCP was $793,790.85. The Technical College's total payroll for all employees was $6,478,044.84.
Total contributions made by employees during fiscal year 2010 amounted to $59,542.28 which represents 7.5% of covered payroll. These contributions met the requirements of the plan.
NOTE 11: RlSK MANAGEMENT
PUBLIC ENTITY RlSK POOL The Department of Community Health administers for the State of Georgia a program of health benefits for the employees of units of government of the State of Georgia, units of county governments, and local education agencies located within the State of Georgia. This plan is funded by participants covered in the plan, by employers' contributions paid by the various units of government participating in the plan, and appropriations made by the General Assembly of Georgia. The Department of Community Health contracted with United Healthcare to process medical claims and Medco to process prescription drug claims in accordance with the State Employees' Health Benefit Plan as established by the Department of Community Health.
OTHER RlSK MANAGEMENT The Department of Administrative Services (DOAS) has the responsibility for the State of Georgia of making and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS processes claims for risk of loss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' indemnification. Limited amounts of commercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. The Technical College, as an organizational unit of the Technical College System of Georgia, is part of the State of Georgia reporting entity, and as such, is covered by the State of Georgia risk management program administered by DOAS. Premiums for the risk management program are charged to the various state organizations by DOAS to provide claims servicing and claims payment.
NOTE 12: POST-EMPLOYMENTBENEFITS
Altamaha Technical College participates in the following State of Georgia post-employment benefit plans: the Georgia State Employees Post-employment Health Benefit Fund (administered by the Department of Community Health) and the State Employees' Assurance Department - OPEB (administered by the ERS System). Separate financial reports that include the applicable financial statements and required supplementary information for these plans are publicly available and may be obtained from the respective system offices.

ALTAMAHA TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30,2010

EXHIBIT "D"

Retiree health benefits were previously funded through the Georgia Retiree Health Benefit Fund (GRHBF). In 2009, the General Assembly revisited the GRHBF and enacted legislation that, effective August 31, 2009, separated the GRHBF into two new funds: the Georgia School Personnel Postemployment Health Benefit Fund and the Georgia State Employees Post-employment Health Benefit Fund. The purpose of this change was to assure employers responsible for planning and funding future retiree health costs that their contributions will be dedicated to their respective retiree populations. Funds in the GRHBF were transferred to the Georgia State Employees Post-employment Health Benefit Fund or the Georgia School Personnel Post-employment Health Benefit Fund as described in the plan financial statements. The statute that created the GRHBF is repealed effective September 1,2010.
GEORGIA STATE EMPLOYEES POST-EMPLOYMENT HEALTH BENEFIT FUND The Georgia State Employees Post-employment Health Benefit Fund (State OPEB Fund) is a costsharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of State organizations (including technical colleges) and other entities authorized by law to contract with the Department of Community Health for inclusion in the plan. The State OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the health insurance plan for State employees. The Official Code of Georgia Annotated (OCGA) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board).
The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately 25 percent of the cost of the health insurance coverage.
Participating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected "pay-as-you-go" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years.
The combined active and retiree contribution rates established by the Board for employers participating in the State OPEB Fund were as follows for the fiscal year ended June 30, 2010:

July 2 0 0 9 August 2 0 0 9 -October 2 0 0 9 November 2009 -June 2010

22.165% of covered payroll for August coverage 16.581% of covered payroll for September- November coverage 22.165% of covered payroll for December - July coverage

No additional contribution was required by the Board for fiscal year 2010 nor contributed to the State OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the State plan for other post-employment benefits and are subject to appropriation.
The following table summarizes Altamaha Technical College combined active and retiree contributions to the health insurance plans for the years ending June 30, 2010, June 30, 2009 and June 30,2008:

ALTAMAHA TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2010

Fiscal Year

Percentage Contributed

Required Contribution

EXHIBIT "Dl1

STATE EMPLOYEES1ASSURANCE DEPARTMENT- OPEB State Employees' Assurance Department - OPEB (SEAD-OPEB) is a cost-sharing multiple-employer defined benefit post-employment plan that was created in fiscal year 2007 by the Georgia General Assembly to provide term life insurance to retired and vested inactive members of Employees', Judicial (JRS), and Legislative (LRS) Retirement Systems, amended to exclude members of JRS and LRS hired on or after July 1,2009. Pursuant to Title 4 7 of the OCGA, the authority to establish and amend the benefit provisions of the plan is assigned to the Boards of Trustees of the Employees' and Judicial Retirement Systems.
Contributions by plan members are established by the Boards of Trustees, up to the maximum allowed by statute (not to exceed 0.5% of earnable compensation). The Boards of Trustees of the Employees' and Judicial Retirement Systems establish employer contribution rates, such rates which, when added to members' contributions, shall not exceed 1%of earnable compensation. For the fiscal year ended June 30, 2010, contributions of ERS "old plan" members were 0.45% of earnable compensation, 0.22% of which was paid by the employer. Contributions of ERS "new plan" members and of members of the Judicial and Legislative Retirement Systems were 0.23% of earnable compensation. There were no employer annual required contributions (ARC) for the fiscal years ended June 30,2010, June 30,2009 and June 30,2008.
NOTE 13: CONTINGENCIES
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. This could result in refunds to the grantor agency for any expenses which are disallowed under grant terms. The amount of expenses which may be disallowed by the grantor cannot be determined at this time although Altamaha Technical College expects such amounts, if any, to be immaterial to its overall financial position.
Litigation, claims and assessments filed against (an organizational unit of the Technical College System of Georgia), if any, are generally considered to be actions against the State of Georgia. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30,2010.
NOTE 14: SPECIAL ITEM
In fiscal year 2010, the College of Coastal Georgia transferred equipment to Altamaha Technical College. The original cost of the equipment, $18,721.00, and the associated Accumulated Depreciation of $10,072.58, were properly added to the Capital Assets records of Altamaha Technical College. A net carrying value of $8,648.42 from the transfer is reported as a special item on the Statement of Revenues, Expenses and Changes in Net Assets.