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STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

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

ATHENS AREA 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

BUDGETFUND

4

STATEMENTS OF FUNDS AVAILABLE AND EXPENDITURES

COMPARED TO BUDGET

BUDGETFUND

8

D

"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

9

E

"B" LOTTERY FOR EDUCATION

10

F NOTES TO THE FINANCIAL STATEMENTS

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

26

SCHEDULES

1 CASH AND CASH EQUIVALENTS

27

2 SCHEDULE OF FEDERAL REVENUES

28

3 RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL

29

ATHENS AREA 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

~epartmeut of /\unih:z
254 WASHINGTON STREET, SW ROOM 214
J\t!anht, <ieorgia 30334-8400
December 2, 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 of the Local Board ofDirectors
and Honorable Kenneth C. Easom, President Athens Area 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 Athens Area Technical Institute as of and 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 Athens Area 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, we are not aware of any 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.
Our review was made for the purpose ofexpressing 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 3) is presented only for supplementary analysis purposes. Such information has been

94ARL-4T

subjected to the inquiries and analytical procedures applied in the review ofthe financial statements, and we are not aware of any material modifications that should be made thereto.
Respectfully submitted,
~/~
Claude L. Vickers State Auditor
CLV:cm 94ARL-4T

FINANCIAL STATEMENTS - 1-

EXHIBIT "A,"

GOVERNMENTAL FIDUCIARY FUND TYPE FUND TYPE

BUDGET

AGENCY

ACCOUNT GROUPS

GENERAL FIXED ASSETS

GENERAL LONG-TERM
DEBT

TOTALS (Memorandum Only)
J-U-N-E---3-0-,--1-9-9-4---JU-N-E---3-0-,--1-9-9-3

ASSETS

Cash and Cash Equivalents (See Schedule)

$ 252,664.79

$ 252,664.79 $ 136,833.34

Accounts Receivable State Funds Federal Financial Assistance Other

$ 138,415.46 153,071.43 $ 24,957.00 257,174.49 32,968.62

$ 138,415.46$ 129,996.73 178,028.43 119,446.49 290,143.11 171,941.39

$ 548,661.38$ 57,925.62

$ 606,587.00$ 421,384.61

Prepaid Items

$ 3,350.00 $ 851.00

$ 4,201.00 $ 2,205.00

Fixed Assets Equipment

$2,854,731.76

$2,854,731.76$ 2,228,895.91

Amounts to be Provided for Pa)111ent of Accrued Compensated Absences

$443,666.48$ 443,666.48$ 430,348.81

Total Assets

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

LIABILITIES AND FUND EQUITY

Liabilities Cash Overdraft Accounts Payable Salaries Payable Payroll Withholdings Deferred Revenue Tuition and Fees Funds Held for Others Compensated Absences

$ 34,339.51 $ 361,627.20
88,486.34 21,816.00 93,309.60
24,437.11

$ $ 443,666.48

34,339.51 $ 361,627.20 88,486.34 21,816.00 93,309.60 24,437.11 443,666.48

0.00 163,532.36 62,425.86 16,662.66 77,585.00 17,052.33 430,348.81

Total Liabilities

$ 565,239.14 $ 58,776.62

$ 443,666.48 $1,067,682.24 $ 767,607.02

Fund Equity Investment in General Fixed Assets Fund Balance Reserved Federal Financial Assistance For Expired Grant Balances $ Live Work Projects Prior Year Local Funds Unreserved Designated Surplus Regular

32.66 31,455.84 199,937.93 8,010.60

$2,854,731.76

$2,854,731.76$ 2,228,895.91

32.66 31,455.84 199,937.93

0.00 26,472.51 193,187.93

8,010.60

3,504.30

Total Fund Equity

$ 239,437.03

$2,854,731.76

$ 3,094,168.79 $ 2,452,060.65

Total Liabilities and Fund Equity

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

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.
- 2-

ATHENS AREA TECHNICAL INSTITUTE STATEMENT OF CHANGES IN FUND BALANCE (STATUTORY BASIS)
GOVERNMENTAL FUND TYPE
YEAR ENDED JUNE 30, 1994

EXHIBIT "8''

FUND BALANCE - JULY 1
Reserved Unreserved
Designated Surplus
ADDITIONS
Adjustments to Prior Year's Accounts Payable
Excess of Funds Available over Expenditures Exhibit "C"
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
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

$ 219,660.44 $ 213,406.66

3,504.30

116.11

$ 223,164.74 $ 213,522.77

$

7,343.19 $

4,882.30

232,848.84

218,857.44

$ 240,192.03 $ 223,739.74

$

0.00 $

3,504.30

755.00

116.11 0.00
575.00

0.00 219,660.44

1. 52 213,405.14

$ 223,919.74$ 214,097.77

$ 239,437.03 $ 223,164.74

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.
- 3-

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

EXHIBIT '1C" 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 Contracts Georgia Department of Human Resources PEACH Project Georgia Department of Technical and Adult Education - Administrative Central Office Satellite Technology Program TC! Cablevision Education Project Donations Fees Application Registration/Continuing Education Testing Other Fines Interest Earned Reimbursements From Various Sources Rents Sales and Services (Net) Tuition
Total Other Revenues Retained
Total Revenues
CARRY-OVER FROM PRIOR YEAR
Transfer from Reserved Fund Balance Federal Financial Assistance live Work Projects Prior Year Local Funds
Total Carry-Over from Prior Year

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$ 6,248,151.26 $ 5,269,479.97 $ 969,538.48 $1,076,018.89

$ 18,460.97 $ 19,939.96

48,396.01 0.00
112,000.00
34,572.00 637,599.66
45,992.22 19,563.00
2,311.05 7,433.97
167,963.84 779.00
84,383.34 784,808.61

43,760.00 975.00
10,000.00
27,523.00 376,145.99 244,283.43
585.00 2,811.40 13,807.15
149,509.53 0.00
91,709.54 671,757.80

$1,964,263.67 $1,652,807.80

$ 9,181,953.41 $ 7,998,306.66

$

0.00 $

100.04

26,472.51

16,617.17

----1-9-3-,-1-8-7-.-9-3

196,687.93
-------------

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

$ 213,405.14
-------------

Total Funds Available

$ 9,401,613.85 $ 8,211,711.80
============= =============

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.
- 4-

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

EXHIBIT "C" Page 2

EXPENDITURES
PERSONAL SERVICES-INSTITUTIONS
Salaries and Wages Employer's Contributions for:
F.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 Other Operating Expenses Publications and Printing
Travel Motor Vehicle Purchases Equipment
Equipment Purchases Rental of Equipment Computer Charges Other Costs
Supplies and Materials Repairs and Maintenance Software Equipment Equipment Purchases Real Estate Rentals Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Contracts

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$ 5,151,118.41 $ 5,050,304.08

78,972.23 548,903.57 582,183.54 18,288.00
3,817.84
-----2-3-,8--9-7-.4--4

78,184.56
549,845.05 575,213.95
12,255.00 1,769.68
15,300.34
-------------

$ 6,407,181.03 $ 6,282,872.66
------------- -------------

$

5,587.22 $

3,988.28

282,525.45

203,748.19

111,446.87

38,342.36

260,251.64

228,842.31

5,213.16

16,054.61

9,074.02

11,168.00

209,922.12

258,717.59

18,212.63

7,539.33

46,839.35

49,423.09

12,630.00

0.00

273,637.14 12,816.00

184,951.11 12,686.48

1,703.38
31,121.02 16,731.96

3,173.47
61,951.06 4,381.34

8,162.28 150.00
64,694.40

42,818.35 6,516.13
34,737.49

153,108.17

76,196.99

43,766.08
-------------

-----3-6-,6--3-6-.-2-8

$ 1,567,592.89 $ 1,281,872.46
------------- -------------

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.
- 5-

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

EXHIBIT "C" Page 3

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

EXPENDITURES

QUICK START PROGRAM

Travel Per Diem, Fees and Contracts
Per Diem and Fees
ADULT LITERACY GRANTS

$

0.00 $

679.00

46,491.32

4,464.00

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

$ -----4-6-,4--9-1-.3--2

$

5,143.00

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

Personal Services Salaries and Wages Employer's Contributions for: F.I.C.A. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance
Workers' Compensation Insurance Other Costs
Supplies and Materials Repairs and Maintenance
Utilities Insurance and Bonding Grants to Counties, Cities and Civil Divisions Other Operating Expenses Publications and Printing
Travel Equipment
Equipment Purchases
Computer Charges Software
Equipment
Equipment Purchases
Real Estate Rentals Telecommunications Per Diem, Fees and Contracts
Per Diem and Fees

$ 399,741.68 $ 301,885.02

5,601.48 29,890.99 31,687.48
762.00 176. 16
l, 111. 56

4,278.80
18,586.77 20,040.53
570.00 82.32 711. 66

55,217.11 342.75 36.00 0.00
37,639.64 6,617.60
0.00 7,547.61

18,007.54 0.00
0.00 30.00 40,784.68 720.54
905.37 7,399.48

3,617.85

0.00

0.00

39.10

3,018.00
6,900.00 485.62

0.00 6,900.00
0.00

2,175.94

2,024.43

$ 592,569.47 $ 422,966.24

JOB TRAINING PARTNERSHIP ACT

Personal Services Salaries and Wages Employer's Contributions for:
F.I.C.A. Retirement Health Insurance

$ 8,622.87 $

0.00

125.03

0.00

1,018.36

0.00

1,077.86

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.
- 6-

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

EXHIBIT "C" Page 4

EXPENDITURES
JOB TRAINING PARTNERSHIP ACT
Other Costs Supplies and Materials Other Operating Expense
Travel Telecommunications
CAP IT AL OUTLAY
Per Diem, Fees and Contracts Contracts
EQUIPMENT - STATE SCHOOLS
Equipment Equipment Purchases
Total Expenditures Excess of Funds Available over Expenditures

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$

114.34 $

0.00

55.74

0.00

266.76

0.00

750.00
-------------

----------0-.-0-0

$

12,030.96
-------------

$

0.00

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

$ 120,000.00 $

0.00

$----4-2-2-,8--9-9-.3--4

$

0.00
-------------

$ 9,168,765.01 $ 7,992,854.36

232,848.84

218,857.44

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

$ 9,401,613.85 $ 8,211,711.80

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-

ATHENS AREA TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION YEAR ENDED JU~E 30, 1994

EXHIBIT "0"

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

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$5,822,784.00$ 5,825,251.92 $ 2,467.92

1,023,337.00

969;538.48

-53,798.52

2,215,439.00 1,964,263.67 -251,175.33

$9,061,560.00$ 8,759,054.07 $ -302,505.93

0.00

219,660.44

219,660.44

$ 9,061,560.00 $ 8,978,714.51 $ -82,845.49

EXPENDITURES
Personal Services-Institutions Operating Expenses-Institutions Quick Start Program Adult Literacy Grants Job Training Partnership Act Capital Outlay

$ 6,559,676.00 $ 6,407,181.03 $ 152,494.97

1,708,984.00 1,567,592.89

141,391.11

49,397.00

46,491.32

2,905.68

610,296.00

592,569.47

17,726.53

13,207.00

12,030.96

1,176.04

120,000.00 120,000.00

0.00

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

$9,061,560.00$ 8,745,865.67 $ 315,694.33

Excess of Funds Available over Expenditures

$ 232,848.84 $ 232,848.84

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.
- 8-

ATHENS AREA 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

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 422,900.00$ 422,899.34 $

-0.66

EXPENDITURES Equipment - State Schools

$ 422,900.00$ 422,899.34 $

0.66

Excess of Funds Available over Expenditures

$

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.
- 9-

ATHENS AREA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F't

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Athens Area 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 Athens Area Technical Institute as a separate reporting entity.
The Institute's Local Board of Directors is composed of fourteen (14) 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 Athens Area Technical Institute. The Institute does not have authority to retain unexpended State funds (surplus) for any given fiscal year. Accordingly, Athens Area Technical Institute is considered an organizational unit of the Georgia Department of Technical and Adult Education for financial reporting purposes because of the significance ofits 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 Athens Area 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 ofGeorgia. 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.
- 10 -

ATHENS AREA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATE:MENTS
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 :MEASURE:MENTFOCUS
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 ofaccounting, 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 of Georgia, 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.
- 11 -

ATHENS AREA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "F''

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPE BUDGET FUND
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.
INVENTORIES No inventories ofsupplies are reported in the current financial statements. Expendable supplies are recorded as expenditures at the time of purchase.
RESERVED FUND BALANCE Reservesrepresent 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:
- 12 -

ATHENS AREA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
RESERVED FUND BALANCE
FEDERAL FINANCIAL ASSISTANCE EXPIRED GRANT BALANCES
Expired grant balances represent the unexpended balance ofFederal 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.
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, 1987, Athens Area 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 use 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.
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 ofthis data.
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,

- 13 -

ATHENS AREA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "F''

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
COMPARATIVE DATA 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 of Georgia 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 a:s collateral any one or more ofthe following securities as enumerated in the Official Code of Georgia
Annotated Section 50-17-59:
(I) Bonds, bills, notes, certificates of indebtedness, or other direct obligations of the 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 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.
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.

- 14 -

ATHENS AREA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "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 1 - Amoul)ts 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.

Carrying Amount

Bank
Balances

Risk Categories

2

3

Cash Deposits

$ 217 945 28 $ 638 858 26 $ 200 000 00 $ 438 858 26 $=~0-009!,

NOTE 3: CHANGES IN GENERAL FIXED ASSETS

In accordance with the statutory definition ofmoveable personal property (Official Code of Georgia Annotated Section 50-16-161), only those items with an acquisition cost of $1,000.00 or greater are reflected in the General Fixed Assets Account Group.

The following is a summary of changes of equipment for the General Fixed Assets Account Group during the fiscal year:

Balance July I, 1993
Additions Deductions
Balance June 30, 1994

$ 2,228,895.91 739,113.18 113,277.33
$ 2,854,731.76

NOTE 4: GENERAL LONG-TERM DEBT

CHANGES IN GENERAL LONG-TERM DEBT During the year ended June 30, 1994, the following changes occurred in the compensated absences liability reported in the General Long-Term Debt Account Group:

- 15 -

ATHENS AREA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 4: GENERAL LONG-TERM DEBT

CHANGES IN GENERAL LONG-TERM DEBT

Balance July 1, 1993

$ 430,348.81

Additions Annual Leave Earned and Utilized (Net) Salaries and Wages Salary-Related Fringe Benefits(*)

6,169.47 7,148.20

Balance June 30, 1994

$ 443,666.48

(*) 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 of their 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 of the 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. -

These Retirement Systems were established by the General Assembly of Georgia for the purpose of providing retirement allowances for employees of the 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 contributed $21,560.80 to the Employees' Retirement System of Georgia and $558,252.12 to the Teachers Retirement System of Georgia. Participation in either Retirement System is not segregated by employee

- 16 -

ATHENS AREA 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 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, and historical trends is presented in the financial reports of the Employees' Retirement System of Georgia and the Teachers Retirement System of Georgia for the year ended June 30, 1994.
GEORGIA DEFINED CONTRIBUTION PLAN The State of Georgia 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 of Trustees, 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 not vest with the employee and is forfeited upon retirement or termination of employment.
NOTE 8: NONMONETARY TRANSACTIONS
The Administrative Central Office of the Georgia Department of Technical and Adult Education used lottery proceeds to purchase $159,254.42 of equipment for Athens Area Technical Institute during the fiscal year ended June 30, 1994. Those items with an acquisition cost of $1,000.00 or greater will be reflected as received in the General Fixed Assets Account Group in the accompanying financial statements. However, revenues and expenditures for these lottery proceeds are not reflected in these financial statements.
- 17 -

ATHENS AREA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "F"

NOTE 8: NONMONETARY TRANSACTIONS

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 $1,186,945.08 to various vendors for approved projects related to Athens Area Technical

Institute.



NOTE9: 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 Athens Area 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.

NOTE 10: BONDING INFORMATION

The President and all employees of Athens Area 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 Athens Area 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 of its employees to perform faithfully their duties or to account properly for all monies and property received by virtue of their position or employment.

All employees of Athens Area 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 -

SUPPLEMENTARY INFORMATION - 19 -

ATHENS AREA 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
Prepaid Items

"A" DEPARTMENT OF
TECHNICAL AND ADULT
EDUCATION

"B" LOTTERY FOR
EDUCATION

TOTAL

$ 185,911.86
-------------

$-----6-6-,7--5-2-.9--3

$----2-5-2-,-6-6-4-.7--9

$ 138,415.46 153,071.43
----2-5-7-,1--7-4-.4--9

$ 548,661.38
-------------

$

3,350.00
-------------

$ 138,415.46 153,071.43 257,174.49
-------------
$ 548,661.38
-------------
$------3-,3--5-0-.0--0

Total Assets

$ 737,923.24 $ 66,752.93 $ 804,676.17
============= ===-========= =============

LIABILITIES AND FUND EQUITY
---------------------------
Liabilities Accounts Payable Salaries Payable Payroll Withholdings Deferred Revenue Tuition and Fees
Total Liabilities
Fund Equity Fund Balance Reserved Federal Financial Assistance For Expired Grant Balances Live Work Projects Prior Year Local Funds Unreserved Designated Surplus Regular Lottery for Education
Total Fund Equity

$ 294,874.27 $ 88,486.34
21,816.00

66,752.93 $

361,627.20 88,486.34 21,816.00

-----9-3-,-3-0-9-.-6-0 ------------- -----9-3-,3--0-9-.6--0

$ 498,486.21
-------------

$-----6-6-,7--5-2-.9--3

$----5-6-5-,-2-3-9-.-1-4

$

32.66

31,455.84

199,937.93

$

32.66

31,455.84

199,937.93

8,010.60

8,010.60

$

0.00

0.00

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

$ 239,437.03
-------------

$

0.00

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

$

239,437.03
-------------

Total Liabilities and Fund Equity

$ 737,923.24 $ 66,752.93 $ 804,676.17
------------- ===---======= =============

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

ATHENS AREA TECHNICAL INSTITUTE COMBINING STATEMENT OF CHANGES IN FUND BALANCE (STATUTORY BAS(Sl
BUDGET FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "H"

FUND BALANCE - JULY 1
Reserved Unreserved
Designated Surplus
ADDITIONS
Adjustments to Prior Year's Accounts Payable
Excess of Funds Available over Expenditures Exhibit "I"
DEDUCTIONS
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
Reserved Fund Balance Carried Over from Prior Year as Funds Available
FUND BALANCE - JUNE 30
(To Exhibit "G")

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR
EDUCATION

TOTAL

$ 219,660.44 3,504.30 $
$ 223,164.74 $

$ 219,660.44

0.00

3,504.30

0.00 $ 223,164.74

$

7,343.19

232,848.84 $

$ 240,192.03 $

$ 0.00

7,343.19 232,848.84

0.00 $ 240,192.03

$

3,504.30 $

755.00

219,660.44

$ 223,919.74 $

0.00 $ 3,504.30 755.00
219,660.44
0.00 $ 223,919.74

$ 239,437.03 $

0.00 $ 239,437.03

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 21 -

ATHENS AREA TECHNICAL INSTITUTE
COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES BUDGET FUND
YEAR ENDED JUNE 30, 1994

EXHIBIT "I" Page 1

"A" DEPARTMENT OF
TECHNICAL AND ADULT
EDUCATION

"8" LOTTERY FOR
EDUCATION

TOTAL

FUNDS AVAILABLE

REVENUES

STATE FUNDS Allotment from Georgia Department of Technical and Adult Education - Administrative Central Office

$ 5,825,251.92 $ 422,899.34 $ 6,248,151.26

FEDERAL REVENUES

$ 969,538.48

$ 969,538.48

OTHER REVENUES RETAINED

Contract

Georgia Department of Human Resources

PEACH Project

$

Georgia Department of Technical and Adult Education -

Administrative Central Office

Satellite Technology Program

Donations

Fees

Application

Registration/Continuing Education

Testing

Other

Fines

Interest Earned

Reimbursements

From Various Sources

Rents

Sales and Services (Net)

Tuition

18,460.97
48,396.01 112,000.00
34,572.00 637,599.66 45,992.22
19,563.00 2,311.05 7,433.97
167,963.84 779. 00
84,383.34 784,808.61

$ 18,460.97
48,396.01 112,000.00
34,572.00 637,599.66
45,992.22 19,563.00
2,311.05 7,433.97
167,963.84 779. 00
84,383.34 784,808.61

Total Other Revenues Retained

$1,964,263.67

$1,964,263.67

Total Revenues

$ 8,759,054.07 $ 422,899.34 $ 9,181,953.41

CARRY-OVER FROM PRIOR YEAR

Transfer from Reserved Fund Balance Live Work Projects Prior Year Local Funds
Total Carry-Over from Prior Year

$ 26,472.51 193,187.93
-------------
$ 219,660.44
-------------

$ 26,472.51
----1-9-3-,-1-8-7-.9--3

$

219,660.44
-------------

Total Funds Available

$ 8,978,714.51 $ 422,899.34 $ 9,401,613.85
============= ============= =============

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

ATHENS AREA TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND
YEAR ENDED JUNE 30, 1994

EXHIBIT "l" Page 2

EXPENDITURES
PERSONAL SERVICES-INSTITUTIONS
Salaries and Wages Employer's Contributions for:
F.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 Uti 1ities Rents (Other than Real Estate) Insurance and Bonding Other Operating Expenses Publications and Printing
Travel Motor Vehicle Purchases Equipment
Equipment Purchases Rental of Equipment Computer Charges Other Costs
Supplies and Materials Repairs and Maintenance Software Equipment Equipment Purchases Real Estate Rentals Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Contracts

"A"
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR
EDUCATION

TOTAL

$ 5,151,llB.41
78,972.23 548,903.57 582,183.54
18,288.00 3,817.84 23,897.44
$6,407,181.03
$ 5,587.22 282,525.45. 111,446.87 260,251.64 5,213.16 9,074.02 209,922.12 18,212.63 46,839.35 12,630.00
273,637.14 12,816.00
1,703.38 31,121.02 16,731.96
8,162.28 150.00
64,694.40
153,108.17
-----4-3-,7--6-6-.0--8
$-1-,-5-6-7-,-5-9-2--.8-9-

$ 5,151,118.41
78,972.23 548,903.57 582,183.54
18,288.00 3,817.84 23,897.44
$ 6,407,181.03

$

5,587.22

282,525.45

111,446.87

260,251.64

5,213.16

9,074.02

209,922.12

18,212.63

46,839.35

12,630.00

273,637.14 12,816.00

1,703.38 31,121.02 16,731.96
8,162.28 150.00
64,694.40
153,108.17 43,766.08
-------------
$1,567,592.89
-------------

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

ATHENS AREA TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND
YEAR ENDED JUNE 30, 1994

EXHIBIT "I'' Page 3

EXPENDITURES
QUICK START PROGRAM
Per Diem, Fees and Contracts Per Diem and Fees
ADULT LITERACY GRANTS
Personal Services Salaries and Wages Employer's Contributions for: F.I.C.A. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
Other Costs Supplies and Materials Repairs and Maintenance Utilities Grants to Counties, Cities and Civil Divisions Other Operating Expenses
Travel Equipment
Equipment Purchases Computer Charges
Equipment Equipment Purchases
Real Estate Rentals Telecommunications Per Diem, Fees and Contracts
Per Diem and Fees
JOB TRAINING PARTNERSHIP ACT
Personal Services Salaries and Wages Employer's Contributions for: F.I.C.A. Retirement Health Insurance
Other Costs Supplies and Materials Other Operating Expenses

"A" DEPARTMENT OF
TECHNICAL AND ADULT
EDUCATION

811 11 LOTTERY FOR
EDUCATION

TOTAL

$ 46,491.32
$ 399,741.68
5,601.48 29,890.99 31,687.48
762.00 176.16 1,111.56
55,217.11 342.75 36.00
37,639.64 6,617.60 7,547.61
3,617.85
3,018.00 6,900.00
485.62
2,175.94
-------------
$ 592,569.47
-------------
$ 8,622.87 125.03
1,018.36 1,077.86
114.34 55.74

$ 46,491.32
$ 399,741.68
5,601.48 29,890.99 31,687.48
762.00 176.16 1,111.56
55,217.11 342.75 36.00
37,639.64 6,617.60 7,547.61
3,617.85
3,018.00 6,900.00
485.62
2,175.94
-------------
$ 592,569.47
-------------
$ 8,622.87 125.03
1,018.36 1,077.86
114.34 55.74

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

ATHENS AREA TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "I" Page 4

EXPENDITURES JOB TRAINING PARTNERSHIP ACT
Travel Telecommunications
CAPITAL OUTLAY Per Diem, Fees and Contracts Contracts
EQUIPMENT - STATE SCHOOLS Equipment Equipment Purchases Total Expenditures
Excess of Funds Available over Expenditures

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"8" LOTTERY FOR
EDUCATION

TOTAL

$

266.76

--------7-5-0-.-0-0

$ 12,030.96
-------------

$ 120,000.00

$

266.76

750.00
-------------

$ 12,030.96
-------------

$ 120,000.00

$----------0-.0--0

$ 422,899.34
-------------

$ ----4-2-2-,-8-9-9-.3--4

$ 8,745,865.67 $ 422,899.34 $ 9,168,765.01

232,848.84
-------------

----------0-.0--0

232,848.84
-------------

$ 8,978,714.51 $ 422,899.34$ 9,401,613.85
============= ============= =============

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

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

EXHIBIT "J''

ASSETS/

ASSETS/

LIABILITIES

LIABILITIES

FUND

JULY 1 1993

ADDITIONS

DE LET IONS JUNE 30, 1994

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

General Scholarship Fund

$

5,832.41 $ 13,247.51 $

9,804.05 $

9,275.87

HOPE Program

0.00

131,569.00

131,569.00

0.00

NLN Ac;lmissions Testing Fund

0.00

5,699.00

1,782.00

3,917.00

Nursing Achievement Testing Fund

0.00

1,160.75

1,160.75

Pell Grant Program

0.00

521,797.00

521,797.00

0.00

SAT Testing Fund

0.00

1,102.00

2,035.00

-933.00

Student Activities Fund

8,054.61

47,049.82

49,117.25

5,987.18

Student Insurance

3,165.31

9,244.00

7,380.00

5,029.31

Supplemental Educational Opportunity Grants

0.00

11,700.00

11,700.00

0.00

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

$ 17,052.33 $ 742,569.08 $ 735,184.30 $ 24,437.11

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

ATHENS AREA TECHNICAL INSTITUTE CASH AND CASH EQUIVALENTS JUNE 30, 1994
NONINTEREST BEARING ACCOUNTS
Athens First Bank and Trust Company, Athens, Georgia INTEREST BEARING ACCOUNTS
Athens First Bank and Trust Company, Athens, Georgia
NOW Account OTHER
Petty Cash

SCHEDULE "1'!
$ 42,412.25 175,533.03 380.00
$ 218,325.28
=============

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

ATHENS AREA TECHNICAL INSTITUTE SCHEDULE OF FEDERAL REVENUES YEAR ENDED JUNE 30, 1994

SCHEDULE "2"

BUDGET FUND
Education, U. S. Department of Adult Education - State Administered Basic Grant Program Through Georgia Department of Technical and Adult Education - Administrative Central Office
Federal Work-Study Program Direct
Vocational Education - Basic Grants to States Through Georgia Department of Technical and Adult Education - Administrative Central Office
Vocational Education - Consumer and Homemaking Education Through Georgia Department of Technical and Adult Education - Administrative Central Office
Energy, U. S. Department of State Energy Conservation Stripper Well Oil Violation Funds Through Georgia Department of Technical and Adult Education - Administrative Central Office
Health and Human Services, U. S. Department of Job Opportunities and Basic Skills Training Through Georgia Department of Human Resources Various Offices of Department of Family and Children Services
Labor, U. S. Department of Job Training Partnership Act Through Central Savannah River Area Employment and Training Consortium Through Georgia Department of Technical and Adult Education - Administrative Central Office Through Northeast Georgia Regional Development Center

CFDA
NUMBER

AMOUNT

84.002 84.033 84.048 84.049

$ 262,741.00 12,661.63
423,778.44 22,068.45

81.041

18,310.93

93.561
17.250 17.250 17.250

30,120.93
62,241.24 12,030.96 125,584.90
$ 969,538.48

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 28 -

ATHENS AREA TECHNICAL INSTITUTE RECONCILIATION OF SALARIES AND WAGES, ANO TRAVEL
YEAR ENDED JUNE 30, 1994

SCHEDULE "3"

Totals per Annual Supplement

Accruals June 30, 1994 June 30, 1993

Adjustments Aggarwal, Beach, Ford, Hannon, Hewitt, Houwers, Jarrett, Maloof, McCord, Moon, Sansing, Smith, Smith, Turner, White, Yongue,

Anilkumar Susan T. Sherrie Henry R. James William Raymond Kenneth H. Lisar Segars Michael Jo Ann Joyce A. Daniel J. Linda S. Venius Joy Carol Robert E.

Totals per Report

SUMMARY BY OBJECT CLASS
BUDGET FUND Personal Services-Institutions Operating Expenses-Institutions Adult Literacy Grants Job Training Partnership Act
AGENCY FUNDS Student Activities Fund

SALARIES AND WAGES
---------
$ 5,539,712.90 $

TRAVEL 54,939.72

88,486.34 -62,425.86

543.79

480.80
-6,636.28
-------------

-118.11 382.15 -53 .13 168.00 -49.26 -897.94 -24.78 -233.78
-5.46 -126.00
-34.44 -10.00
222.73 -49.77
-------------

$ 5,559,617.90 $ 54,653.72
============= =============

$ 5,151,118.41
$ 399,741.68
8,622.87

46,839.35 7,547.61 266.76

134.94

$ 5,559,617.90 $ 54,653.72
============= =============
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 29 -

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

ATHENS AREA 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 offindings disclosed in the review report for the year ended June 30, 1993, is summarized below:

Audit Control Number

Status of Finding

822-93-01 822-93-02

See Audit Control Number 822-94-01 Corrective Action Implemented

PRIOR YEAR/CURRENT YEAR

REVENUE/RECEIVABLES/RECEIPTS Unsupported Student Accounts Receivable Financial Statements Audit Control Number 822-94-01

At June 30, 1994, Athens Area Technical Institute had $7,082.58 in student accounts receivable for tuition and fees which were not supported by approved financial aid at the time of registration. All students attending technical institutes or participating in programs and services provided by these technical institutes are required to pay a fee for such programs and services. Approximately $6,699.08 of the student accounts receivable is overdue from prior years and the remainder occurred during the year under review.

Deferring payment of tuition and fees without approved financial aid is beyond the authority granted to the Institute by the Administrative Central Office of the Georgia Department of Technical and Adult Education. The Institute should initiate extensive collection procedures in an effort to collect all amounts due to the Institute.

CURRENT YEAR

CASH AND CASH EQUIVALENTS - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Accounting Procedures Pell Grant Program (CFDA 84.063) Audit Control Number 822-94-02

For the year under review, the Athens Area Technical Institute's accounting procedures did not provide for adequate internal control over the bank reconciliation process. The following deficiencies were noted:

(1) The monthly bank statements for the operating account and the federal account included adjustments for deposits in transit and outstanding checks which were not made to the respective bank accounts at year end. .Adjustments were necessary to reconcile the accounting records with bank statements.

ATHENS AREA TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR
CASH AND CASH EQUIVALENTS - Financial Statements ADMINISTRATIVE REQUIREMENTS -Federal Financial Assistance Inadequate Accounting Procedures Pell Grant Program (CFDA 84.063) Audit Control Number 822-94-02
(2) Items requiring adjustment on the accounting records disclosed through the bank reconciliation process were carried as reconciling items for extended periods oftime.
(3) There was no administrative review to determine that bank reconciliations were correct and that all required adjustments had been made.
(4) It was noted that the monthly bank statements for all bank accounts were not reconciled to the general ledger in a timely manner.
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 all reconciling items are identified and corrected promptly.