GA A800 .RI
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STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

REVIEW REPORT STATE OF GEORGIA ATIIENS AREA TECHNICAL INSTITUTE ATIIENS, GEORGIA YEARENDEDJUNE30, 1995

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

BUDGET FUND

4

STATEMENTS OF FUNDS AVAILABLE AND EXPENDITURES

COMPARED TO BUDGET

BUDGET FUND

D

"A" DEPARTMENT OFTECHNICALANDADULTEDUCATION

7

E

"B" LOTTERY FOR EDUCATION

8

F NOTES TO THE FINANCIAL STATEMENTS

9

SUPPLEMENTARY INFORMATION

G COMBINING BALANCE SHEET (STATUTORY BASIS)

BUDGET FUND

26

H COMBINING STATEMENT OF CHANGES IN FUND BALANCE

(STATUTORY BASIS)

BUDGET FUND

27

COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

28

J COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

FIDUCIARY FUND TYPE AGENCY FUNDS

31

SCHEDULES

I CASH AND CASH EQUIVALENTS

32

2 SCHEDULE OF FEDERAL REVENUES

33

3 RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL

34

ATHENS AREA TECHNICAL INSTITUTE - TABLE OF CONTENTS.
SECTION IT 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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
October 11, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly ofGeorgia Members of the State Board of Technical and Adult Education Members of the Local Board of Directors
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, 1995, 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 ofan 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 ofany 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 I.
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 I through 3) is presented only for supplementary analysis purposes. Such information has been
95ARL-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 9SARL-4T

FINANCIAL STATEMENTS - 1-

ATHENS AREA IEQHN1CAI INSJJIYIE OOMRINfP BA..l ANCf SHEEI CSTATI ITOBX RASIS)
Al I A INP JYPES ANP Ag;g INT GBQl JPS HINE 39 1995

EXHIBIT"A"

GOVERNMENTAL FUNDlYPE BUDGET

FIDUCIARY FUNDlYPE
AGENCY

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-lERM

ASSETS

DEBT

TOTALS
OnM (Memorandum
JUNE 30 1995 JUNE 30 1994

Colh and Colh E q . Accountl ReceiYable
Slate Funds Fedenll Financial A1aistance Olhe<
Prepaid llem8
- ~ - FOBdEquipment Amounts to be PnMded for Payment of:
Total-

206 462.61

-,691.91 189,631.84 S 6,365.00 327 806.04 187171.15
924129.79 $ 193 536.15
--~=-=59~ $ 2 106.07

3 076,087.51

206.a2.61 S 252664.79

-.691.91 S 195,996.84 514 977.19
s 1 117 665.S. S
7100.66 S

138,415.46 178,028.43 290143.11
606 567.00
4201.00

3076087.51 $ 385'1731.76

516085.25 $ 516085.25 $ 443 666.48

1135 586.99 $ 195 642.22 $ 3 076 087.51 $ 516085.25 $ 4923401.97 $ 4161851.03

I /ARJ/ ITifS ANOAJNQfQJITX
Liabililie& Colh "'1dfaft AocounlsPayable -Payable Payroll Wdhholdlngo Delemld R....mJe Tuition and Fees Funds Held in Custody for Others Compermmed Al>lences
Total liabilities
Fund Equity lnYe&trnent in General Foced Asset& Fund Balance ReseMld Federal Financial Assistance For Refund to Georgia Department ofTechrncal and Adult Education AdministratiYe Central Office For Exprad Grant Baiances Uw, Work Projects Prior Year Local Funds Un,_ Designated Surplus Regular Lottery for Education
Total Fund Equity

S 562,081.5'1 107,631.76
25,953.62

156,653.3'1

11,563.67

38,988.88

863250.99 S 195642.22

S 3,076,087.51

5t6 085.25 516 085.25 $

156,653.34 $ 582,081.54 107,631.76
25,953.82
147,583.87 38,988.88
516085.25
1 574 978.46 $

34,339.51 361,627.20
88,486.34 21,816.00
93,309.60 24,437.11 443 666.48
1 067 682.24

$ 3,076,087.51 $ 2,854,731.76

845.60 32.66
38,546.79 231,189.85
1,893.10 28.00
272,336.00

$ 3076 087.51

845.60 32.66
36,5'16.79 231,189.85

0.00 32.66 31,455.84 199,937.93

1,893.10 28.00

8,010.60 0.00

s 3 348 423.51 $ 3 094168.79

Total Uabilities and Fund Equity $

1135586.99 $ 195642.22 $ 3076087.51 $

516085.25 $ 4923401.97 $ 4161851.03

See Independent Accountant'& Combined Report on Review of Financial Statements and Supplementay Information.

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

2

ATHENS AREA TECHNICAL INSTITtJJJ; SIAIEMENT Of CHANGES \N FUND BALANCE {STATUTOBY BASIS\
GO\/EBNMENTAL FUND TYPE YEAR ENPEP JUNE 30 1995

EXHIBIT"B"

FUND BALANCE - JULY 1
R-....d Unreserved
Designated SUrplus
~
A d j - to Prier Yea(s Accounts Payable Excess of Funds Available over Expenditures
Exhlbit"C"
DEDUCTIONS
Unreserved Fund Balance (Surplus)
Returned to Georgia Department of Technical and
Adult Education - Adminismive Central Office Year Ended June 30, 1993 Year Ended June 30, 1994
A d j - to Prier Yea(s Accounts Receivable
R-....c! Fund Balance carried OVer from Prier Year as Funds Available
EYNP BALANCE JUNE 3Q (To Exhibit "A")

BUDGET FUND

YEAR ENDED

JUNE 30, 1995

JUNE 30 1994

$

231,426.43 $

219,660.44

8,010.60

3,504.30

$

239,437.03 $

223164.74

$

28,031.68 $

7,343.19

244,576.59

232,848.84

$

272608.27 $

240,192.03

$

0.00 $

3,504.30

8,010.60

0.00

304.93

755.00

231393.77

219,660.44

$

239,709.30 $

223,919.74

$

272336.00 $

239437.03

See Independent Accountanfs 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 TfCHNIC!Al INSTITUTI;
STATEMENT Qf BJNQS AVAIi ABl eANP exeeNP(TURES
BUDGeIEtJNP YEARENPEPJUNE30 1M

EXHIBIT"C"

RJNDS AVAILABLE
~

STATE FUNDS - f r o m ~ Oopa-.tolTechnlcal and Adult Education Administnlive Central Office

FEDERAL REVENUES (SM Schodulo)

OTHER REVENUES RETAINED

Conlnict

Gogla Dopa-of Human Rosou,-

PEACH Project

Gogla _,.. olTechnology

Satallila Technology Program

Donations

F-

Application

Graduation

Regislralion/Contiuing Education

Tooting

Other

-F,_
lnloroslEamod Reirnbursenwa from Various Soun:os

Sales and Tuition

(Not)

Tolal Other Revenues Retained

TolalRovonues

CARBY-0\/EB FROM PRIOR YW3

T...-from R - Fund Balance Uva WO<k Projects Prior Year Local Funds

Tola! Cany-0\/erfrom Prior Year

Total Funds Available

exeeNpm,JBes
f'EBSONAL seRVJCES-JNSIIIUTIQNS
Salaries and Wages Employer's Contributions for.
F.I.CA
R -llh In-surance
Llabililylnsunmee Unemploymenl Compensation lnsuranee Wo<kars' Compensation lnouranee

See Independent Aeeeuntanrs Combined Report on RevieW of Finanelal S1alaments and Supplementary lnlonnation.
The nolas to the finenelal _,,,...,, are an integral part olthiS statement.

TOTALS

YEAR ENDED

JUNE 30 1995

JUNE 30 1994

$

6,285 837.79 $

6,2-48151.28

1112.260.53 $

969538.-48

217,216.04 $
-45,228.51 31,550.00
30,427.50 4,420.00
820,243.-48 42,514.07 37,334.78 0.00 15,833.16
104,268.70 1,4-45.00
101,195.77 831,825.66
2,283,502.67 $
9,681,600.99 $

18,460.97
-48,396.01 112,000.00
34,572.00 0.00
637,599.66 -45,992.22 19,563.00 2,311.05 7,433.97
167,963.84 779.00
84,363.34 784,808.61
1.964~.67
9,181,953.41

31,-455.84 $ 199,937.93
231,393.77 $

26,472.51 193,187.93
219,660.44

9,912,994.76 $

9,401,613.85

5,352,182.60 $
81,667.59 575,435.70 611,659.85
26,184.00 4,317.80
22,750.29
6,674,377.83 $

5,151,118.41
78,972.23 5-48,903.57 582,183.54
18,288.00 3,817.84
23,897.44
8,407,181.03

ATHENS AREA TECHNJCAL INTITUTf STATEMENT OF BJNDS AVAILABLE A.Np EXPENOOURES
BUOGETFLJNp YEAR ENPfP JllNE 30 1995

EXHIBIT"C"

EXPENplTURES
OPERATING EXPENSES-INSTITUTIONS
0lher Costs Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Rents (Olher lhan Real Estate) Insurance and Bonding 0lher Operating Expenses Publications and Printing
Travel Motor Vehicle Purchases Equipment
Equipment Purchases Rental of Equipment Computer Charges OlherCosts
Supplies and Materials Repairs and Maintenance Sollware Equipment Equipment Purchases Real Estate Rentals Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Contrac:ts
QUICK START PROGRAM
PeBonal Sar/Ices Salaries and Wages Employer's Contributions for: F.I.CA Retirement Health Insurance
Travel Per Diem, Fees and Contracts
Per Diem and Fees
ADULT LITERACY GRANTS
PeBonal Sar/Ices Salaries and Wages Employer's Conbibutions for: F.I.CA Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
OlherCosts Supplies and Materiafs Repairs and Maintenance Uliflties Insurance and Bonding
See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary lnlonnation.
The notes to the financial statements are an integral part of this statement.
-5 -

TOTALS

YEAR ENDED

JUNE 30, 1995

JUNE 30, 1994

5,610.67 $ 371,317.39
99,645.06 249,890.02
13,143.57 12,381.35 419,644.96 40,873.91 51,609.26 19,198.00
233,211.35 17,524.54

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

6,003.43 25,495.62 12,149.46
107,199.53 0.00
58,977.54
222,212.39 59,689.35
2,023,577.40 $

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

91.73 $
1.33 10.83 11.47 137.39
0.00
252.75 $

0.00
0.00 0.00 0.00 0.00
46,491.32
46,491.32

516,786.37 $
7,151.52 36,937.04 39,203.27
2,110.00 346.20
1,834.71
12,701.94 3,102.64
0.00 60.00

399,741.68
5,601.46 29,890.99 31,687.46
762.00 176.16 1,111.56
55,217.11 342.75 36.00 0.00

ATHENS AREA TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUOGETFlJNP YEAR ENDED JUNE 30 1995

EXHIBIT"C"

EXPENQITURI;
ADULT LITERACY GRANTS
OlherCos1s Grants ID Counties, Cities and Civil Divisions Olher Operating Expenses Publications and Printing
Travel Equipment
Equipment Purchases Computer Charges
Equipment Equipment Purchases
Rall:mmRantals Telecommunic:ations Per Diem, Fees and Contracts
Per Diem and Fees
JOB TRAINING PARTNERSHIP ACT
Penlonol SoMces Salaries and Wages Employe<'s Contributions for: F.I.CA Retirement Heatth Insurance
OlherCosts Supplies and Materials Olher Operating Expenses
Travel Telecommunications
CAPITAL OUTl.AY
Per Diem, Fees and Conb'acts Contrac:ts
EQUIPMENT-TECHNICAL INSTITUTES
Equipment Equipment Purchases
REPAIRS AND RENOVATIONS
OlherCos1s Repairs and Maintenance
Per Diem, Fees and Conb'acts Per Diem and Fees
Tola! Expenditures
Excess of Funds Available over Expenditures
See Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement.
-6 -

TOTALS

YEAR ENDED

JUNE 30, 1995

JUNE 30, 1994

36,810.16 $ 7,370.13 639.20 8,062.67
677.65
0.00 7,315.92 1,685.71
708.64
683,505.97 $

37,639.64 6,617.80 0.00 7,547.81
3,617.85
3,018.00 6,900.00
485.62
2,175.94
592,569.47

9,120.00 $
13224 0.00 0.00
0.00 1,780.12
0.00 0.00
11,032.36 $

8,622.87
125.03 1,018.36 1,077.86
114.34 55.74 266.76 750.00
12,030.96

0.00 $

120,000.00

187,891.00 $

422.899.34

41,140.86 $ 46,640.00 87,780.86 S 9,668,418.17 $ 244,576.59

0.00 0.00 0.00 9,168,765.01 232,848.84

9,912,994.76 $

9,401,613.85

ATHENS AREA TECHNICAL INSTITUTE STATEMENT OF FUNDS AYAH ABI E ANP EXPENDITURES
COMPAREPTO BUPGET
BUPGETEUNP
*A PEPARIMENT OE TECHNICAL ANP ADULT EDUCATION
YEAR ENPEP JUNE 30 1995

EXHIBIT"D"

FUNDS A\/AILABl E
~
Slate Funds F-.iR_,_ other R_,,_ Retained
CABBY-QllEB EBQM eBIQB rn1B Transfer from Reserved Fund Balance

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$

6,010,334.00 $

6,010,165.93 $

1,2>,263.00

1,112,260.53

2,447 759.00

2283502.67

$

9,698,356.00 $

9,405,929.13 $

-168.07 -128,002.47 -164256.33
-292,428.87

0.00

231,393.77

231,393.77

$

9 698 356.00 $

9,637,322.90 $

-61,033.10

EXPENPIILJBES
Pen;onai Selvices-lnslilulions
Operating Expenses-Institutions Quick Start Program Adult Literacy Grants Job Training Partnership Act

6,715,089.00 $ 2,253,559.00
254.00 715,547.00
13,907.00

6,674,377.83 $ 2,023,577.l
252.75 683,505.97
11,032.36

l,711.17 229,981.60
1.25 32,041.03
2,874.64

$

9 698 356.00 $

9,392,746.31 $

305,609.69

Excess of Funds Available r,,er Elcpendltures

$

244576.59 $

244576.59

See Independent Accountanrs 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 TECHNICAJ INSTITUTE STATEMENT OF EUNPS AYAH ABI f ANP FXPENPIIUBES
COMPARED TO BUDGET
BUDGET FUND
a LOTTFBY FOB EDUCATION
YEAR ENPFP JUNE 30 1995

EXHIBIT"E"

FUNDS A)fAJLABLE
~ Stale Funds

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$

505 891.00 S

275,671.86 $ ---'230=,21=9."-14.:..

EXPENDITURES
Equipment-Technical Institutes Repairs and Renovations

187,891.00 S 318,000.00

187,891.00 $ 87,780:86

0.00 230,219.14

505891.00 $

275,671.86 $ _ _...;;230=;:;.21cc9c.c.1.:..4

Excess of Funds Available over Expenditures

$

o.oo s =====o=.oo=

See Independent Accountanfs 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 NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT "F"

NOTE l: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Athens Area Technical Institute is one oftwenty-nine (29) 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 ofDirectors is composed offourteen (14) members serving staggered three-year terms who are appointed by the State Board ofTechnical and Adult Education. Appropriation of State funds is made to the Georgia Department ofTechnical and Adult Education by the General Assembly ofGeorgia. The Department's Administrative Central Office determines the amount ofState 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 ofits operations determined in conformity with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia. A fund is an independent fiscal and accounting entity with a selfbalancing set ofaccounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number offunds are maintained consistent with legal and managerial requirements. Account groups are a reporting device used to account for certain assets and liabilities of the governmental funds not recorded directly in those funds.
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 1994-1995. 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.
-9-

ATHENS AREA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
nJNE 30 199s

EXlilBIT "F"

NOTE 1: 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 cost or at estimated historical cost ifhistorical cost is not practically determinable. 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.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not included in the General Fixed Assets Account Group. Material improvements adding to the value or useful life ofthe assets are included in the General Fixed Assets Account Group.
GENERAL LONG-TERM DEBT - The account group used to report the noncurrent portions ofcertain governmental long-term liabilities, such as claims, judgments, and compensated absences, which will be paid from future resources.
BASIS OF ACCOUNTING MEASUREMENT FOCUS
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. Governmental funds should be accounted for using the flow ofcurrent financial resources measurement focus. With this measurement focus, operating statements present increases and decreases in net current assets and unreserved fund balance is a measure of available spendable resources. In accordance with accounting practices prescnbed or permitted by statutes and regulations ofthe State of Georgia, the Budget Fund returns its unreserved fund balance (surplus) to the Administrative Central Office of the Department ofTechnical and Adult Education for remittance to the Office of Treasury and Fiscal Services in the subsequent fiscal year.
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 ofaccounting. Under the modified accrual basis ofaccounting, revenues are recognized when susceptible to accrual (i.e., when they are "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 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. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized when due, and certain compensated absences, claims and judgments which are recognized when the obligations are expected to be liquidated with expendable available financial resources.

- 10 -

ATHENS AREA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXIIlBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPE BUDGET FUND
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 ofcontracts for goods and services. The recognition ofencumbrances as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations ofthe State ofGeorgia, but is not consistent with generally accepted accounting principles, which provide for the recording ofencumbrances as a reservation offund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles.
Contractual terms ofcertain Federal grant agreements received by the Institute for vocational training services require that grant funds earned be recorded as Federal revenues rather than as revenues from tuition and fees. Accordingly, it is the Institute's policy to record certain Federal grant funds as Federal revenues and also as other revenues retained with offsetting expenditures for student expenses charged to the other operating expenses expenditure account. This accounting policy results in an overstatement of both revenues and expenditures in the financial statements for such Federal grants. This policy is in conformity with accounting practices prescribed or permitted by statutes and regulations of the State ofGeorgia, but is not consistent with generally accepted accounting principles.
Prior period adjustments and certain other items 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 of the 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 and do not measure results of operations or have a measurement focus. The modified accrual basis ofaccounting is utilized for recognizing assets and liabilities.
BUDGET The Georgia Department of Technical and Adult Education - Administrative Central Office receives State appropriation allotments 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 1994-1995. 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.
- 11 -

ATHENS AREA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXIIlBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 ofthree months or less from the date ofacquisition.

ACCOUNTS RECEIVABLE Accounts receivable consist ofallotments due from the Georgia Department ofTechnical and Adult Education - Administrative Central Office, 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 Reserves represent 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:

FEDERAL FINANCIAL ASSISTANCE REFUND TO GEORGIA DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE
Athens Area Technical Institute receives Federal funds for the Adult Education Act and the Carl D. Perkins Vocational and Applied Technology Education Act through the Georgia Department ofTechnical and Adult Education - Administrative Central Office. As provided by the respective budget allocation to the Institute, these funds were required to be expended by June 30, 1995. At June 30, 1995, the following programs had unexpended Federal funds which should be refunded to the Administrative Central Office:

Adult Education Act Adult Education
Carl D. Perkins Vocational and Applied Technology Education Act Vocational Education - Consumer and Homemaking Education

$ 539.96 106.04

$ 645 60

EXPIRED GRANT BALANCES Expired grant balances represent the unexpended balance ofFederal financial assistance, other than through the Georgia Department ofTechnical and Adult Education Administrative Central Office, remaining after the expiration of the Federal program/project. This amount is refundable to the applicable grantor.

- 12-

ATHENS AREA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE30 1995

EXlilBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
RESERVED FUND BALANCE
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 ofeducation or an area board... ". These unexpended local funds are available for use in subsequent fiscal years.
UNRESERVED FUND BALANCE In accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, the Budget Fund's unreserved fund balance is returned to the Georgia Department of Technical and Adult Education - Administrative Central Office for remittance to the Office ofTreasury and Fiscal Services in the subsequent fiscal year as surplus, as follows:
REGULAR- An amount ofunexpended general appropriations available to the State for reappropriation in subsequent years.
LOTTERY FOR EDUCATION - An amount ofunexpended lottery appropriations available for future reappropriation for Lottery for Education.
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 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. The columns do not present information that reflects 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 of this data.
- 13 -

ATHENS AREA TECHNICAL INSTITUTE NOTES TO TIIB FINANCIAL STATEMENTS
JUNE 30 1995

EXIIlBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
COMPARATIVE DATA Comparative total data for the prior year have been presented in selected sections of the accompanying financial statements in order to provide an understanding ofthe changes in the Institute's financial position and operations. Comparative totals have not been included on statements where their inclusion would not provide enhanced understanding ofthe Institute's financial position and operations or would cause the statements to be unduly complex and difficult to understand. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation.
NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belonging to the State ofGeorgia 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 ofthe following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59:
(1) Bonds, bills, certificates ofindebtedness, notes, or other direct obligations of the United States or of the State ofGeorgia.
(2) Bonds, bills, certificates ofindebtedness, notes, or other obligations ofthe counties or municipalities ofthe State of Georgia.
(3) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose.
(4) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws of the State of Georgia.
(5) Bonds, bills, certificates ofindebtedness, notes, or other obligations ofa subsidiary corporation of the 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 ofGeorgia (which include technical institutes) the option of exempting demand deposits from the collateral requirements.

- 14 -

ATHENS AREA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATE:MENTS
JUNE 30 1995

EXHIBIT "F"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS

CATEGORIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, cash deposits consist of all bank balances which include demand deposits and/or interest bearing accounts. The bank balances as ofJune 30, 1995, are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk:

Category 1 - Amounts 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 pledging financial institution's trust department or agent in the Institute's name.

Category 3 - Amounts collateralized with securities (at market value) held by the pledging financial institution, or by its trust department or agent but not in the Institute's name, and amounts uncollateralized.

Cash Deposits

Carrying Amount

Bank Balances

Risk Categories

s 42 409 21 s 663 623 16 s 200 ooo oo s 463 623 16 s--_.,o..,oo,,,,

NOTE 3: CHANGES IN GENERAL FIXED ASSETS

In accordance with the statutory definition of moveable personal property as defined in 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 1, 1994
Additions Deductions
Balance June 30, 1995

$ 2,854,731.76
377,708.04 156 352.29
$ 3 076 087 51

NOTE4: GENERALLONG-TERMDEBT

CHANGES IN GENERAL LONG-TERM DEBT During the year ended June 30, 1995, 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 1995

EXHIBIT"F"

NOTE 4: GENERAL LONG-TERM DEBT

CHANGES IN GENERAL LONG-TERM DEBT

Balance July 1, 1994
Additions Annual Leave Earned and Utilized (Net) Salaries and Wages Salary-Related Fringe Benefits
Balance June 30, 1995
NOTE 5: RISK MANAGEMENT

$ 443,666.48
71,296.90 1 121.87
$ 516 085 25

Public Entity Risk Pool The State Personnel Board - Merit System ofPersonnel Administration internally administers for the State of Georgia a program of health benefits for the employees ofunits ofgovernment ofthe State ofGeorgia and units of county governments and local education agencies located with the State of Georgia. This plan is funded by participants covered in the plan, by employers' contnbutions paid by the various units ofgovernment participating in the plan, and appropriations made by the General Assembly of Georgia. The State Personnel Board - Merit System ofPersonnel Administration has contracted with Blue Cross Blue Shield of Georgia to process claims in accordance with the State Employees' Health Benefit Plan as established by the State Personnel Board.

Other Risk Management The Department ofAdministrative 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 services 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 ofcommercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. The Institute, as an organizational unit of the Georgia Department of Technical and Adult Education, 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 state agencies by DOAS to provide claims servicing and claims payment.

NOTE 6: DEFERRED COMPENSATION PLAN

The State ofGeorgia offers its employees a deferred compensation plan 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 oftheir 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

- 16-

ATHENS AREA TECHNICAL INSTITUTE NOTES TO TIIE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT"F"

NOTE 6 DEFERRED COMPENSATION PLAN
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 ofa 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, 1995.
NOTE?: RETIREMENTPLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Plan Description Athens Area Technical Institute participates in the Teachers Retirement System of Georgia (TRS), a costsharing multiple-employer public employee retirement system (PERS) established by the General Assembly ofGeorgia for the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia. The Institute's payroll for the year ended June 30, 1995, for employees covered by TRS was $4,986,073.46. The Institute's total payroll for all employees was $5,878,180.70.
Benefits TRS provides service retirement, disability retirement, and survivor's benefits for its members. A member is eligible for service retirement after the member (1) has attained the age of 60 years and has at least ten years ofcreditable service, (2) has at least 30 years of creditable service, regardless of age, or (3) has attained the age of55 years and has at least25 years of creditable service. For those members with 30 years of service or those age 60 with at least ten years of service, retirement benefits are equal to 2% of the average of the member's two consecutive highest paid years ofservice multiplied by the number of years ofcreditable service up to 40 years. Any member who has between 25 and 30 years of creditable service and is at least 55 years ofage shall receive a benefit which is reduced by the lessor of 1/12 of 7% for each month the member is below age 60, or by 7% for each year or fraction thereofby which the member has less than 30 years of service. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits whereby the disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The benefit is based on member's creditable service (minimum of 10 years of service) and compensation up to the date ofdeath or up to the time ofdisability.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.

- 17 -

ATHENS AREA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT "F"

NOTE 7: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Contributions Required and Contributions Made Employees ofthe Institute who are covered by TRS are required to pay 5% of their gross earnings to TRS. The Institute makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees as advised by their independent actuary. For fiscal year 1995, the employer contribution rate was 11.81% for covered employees. The interest rate assumption (rate ofreturn on investments) was 7.50%.

Total contributions to the plan made during fiscal year 1995 amounted to $838,160.02, of which $588,855.27 was made by the Institute and $249,304.75 was made by employees. These contributions represented 11.81 % (Institute) and 5% (employees) of covered payroll.

Funding Status and Progress Pension Benefit Obligation
The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 of the Governmental Accounting Standards Board (GASB) that is required to be used for reporting purposes. The standardized measurement is the actuarial present value ofcredited projected benefits. This pension valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date and is adjusted for the effects of projected salary increases and any step-rate benefits. A standardized measure of the pension benefit obligation was adopted by the GASB to enable readers ofthe PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among similar PERS.

The total unfunded pension benefit obligation ofTRS as ofJune 30, 1994, which was the latest information available, was as follows:

Total pension benefit obligation

$15,313,743,000.00

Net assets available for benefits, at cost Unfunded pension benefit obligation

14 254 785 000.00
$ I 058 958 ooo oo

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1994. Net assets available for benefits were valued as of the same date. TRS does not make separate measurements ofassets and pension benefit obligation for individual employers.

Retirement System Contributions Total contributions from all employers to TRS for the year ended June 30, 1995, were $565,117,811.00. The Institute's contribution for the year ended June 30, 1995, of $588,855.27 was actuarially determined and represented .1042% oftotal contributions made by all participating employers.

- 18 -

ATHENS AREA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE30 1995

EXHIBIT "F"

NOTE 7: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Trend Information Historical trend information is presented in the financial report ofTRS for the year ended June 30, 1995. This infonnation gives an indication of the progress made in accumulating sufficient assets to pay benefits when due.
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Piao Description Athens Area Technical Institute participates in the Employees' Retirement System ofGeorgia (ERS), a singleemployer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances for employees of the State ofGeorgia. The Institute's payroll for the year
ended June 30, 1995, for employees covered by ERS was $139,429.50. The Institute's total payroll for all employees was $5,878,180.70.
Benefits The benefit structure of ERS was significantly modified on July 1, 1982. Unless elected 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. All other members are "new plan'.' members subject to the modified plan provisions.
Members become vested after 10 years of creditable service. A member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 65. Retirement benefits paid to members are based upon a formula which considers the monthly average of the member's highest eight consecutive calendar quarters of salary, the number of years of creditable service, and the member's age at retirement. Postretirement cost-of-living adjustments are also made to member's benefits. 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. If 10 years of service is completed and age 60 is reached, the member may retire with a reduced benefit. Additionally, there are certain provisions allowing for retirement after 30 years of service regardless of age.
Contributions Required and Contributions Made Under the old plan, member contributions consist of employee contributions paid by the employee of 1.25% ofannual compensation and 4.75% ofannual compensation paid by the Institute on behalfofthe employee. Under the new plan, member contributions consist solely of 1.25% of annual compensation paid by employee. The Institute also is required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation. Contributions are also made on amounts paid for accumulated leave of retiring employees.

- 19 -

ATHENS AREA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT "F"

NOTE7: RETIREMENTPLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Contributions Required and Contributions Made Total contributions to the plan made during fiscal year 1995 amounted to $22,503.93, of which $20,761.06 was made by the Institute and $1,742.87 was made by employees. These contributions represented 14.89% (Institute) and 1.25% (employees) of covered payroll.

Funding Status and Progress Pension Benefit Obligation
The amount shown as the "pension benefit obligation" is a standardized disclosure measure of the present value ofpension benefits, adjusted for the effects ofprojected salary increases and step-rate benefits, estimated to be payable in the future as a result ofemployee service to date. The measure is intended to help users assess the funding status ofERS on the going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among employers. The measure is the actuarial present value ofcredited projected benefits, and is independent of the funding method used to determine contributions to the plan.

The pension benefit obligation was computed as part of an actuarial valuation performed as of June 30, 1994. Significant actuarial assumptions used in the valuation include the following:

(1) The present value of future pension benefits paid was computed using a discounted rate of7.5%. This rate is aiso the same rate assumed to be earned on investments in the plan in future years.

(2) Future pension payments reflect the following assumed salary increases as a result of inflation and merit increases:

~
20 25 30 35 40to 65

Percentage
9.5% 8.5% 6.5% 6.0% 5.7%

(3) ERS has the authority to grant cost-of-living adjustments by State statute. As ofJune 30, 1994, cost-of-living adjustments have been included in the pension benefit obligation.

- 20-

ATHENS AREA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT "F"

NOTE 7: RETIREMENT PLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Funding Status and Progress Pension Benefit Obligation
The total unfunded pension benefit obligation ofERS as of June 30, 1994, which was the latest information available, was as follows:

Pension Benefit Obligation:

Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receiving benefits

$ 2,227,653,000.00

Current employees:

Accumulated contributions

648,516,000.00

Employer financed - vested

1,085,190,000.00

Employer financed - nonvested

1 206 805 000.00

Total pension benefit obligation

$5,168,164,000.00

Net assets available for benefits, at cost

4 858 015 000.00

Unfunded pension benefit obligation

$ 310 149 000 00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1994. Net assets available for benefits were valued as of the same date. ERS does not make separate measurements of assets and pension benefit obligation for individual employers.

Funding Policy The ERS funding policy provides for periodic employer contributions at actuarially determined rates that, expressed as percentages ofannual payroll, are sufficient to accumulate sufficient assets to pay benefits when due. Level percentage of payroll employer contribution rates are determined using the entry age funding method. ERS also uses the level percentage of payroll method to amortize the unfunded liability within approximately 20 years following the valuation date.

Total contributions from all employers to ERS for the year ended June 30, 1995, were $256,624,679.00. The Institute's contribution for the year ended June 30, 1995, of $20,761.06 was actuarially determined and represented .000081% of total contributions made by all participating employers.

- 21 -

ATHENS AREA TECHNICAL INSTITUTE
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT "F"

NOTE 7: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Funding Status and Progress Funding Policy
Significant actuarial assumptions used to compute contributions are the same as those used to compute the standardized measure of pension obligation.
Trend Information Historical trend infonnation is presented in the financial report ofERS for the year ended June 30, 1995. This information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due.
GEORGIA DEFINED CONTRIBUTION PLAN
Plan Description Athens Area Technical Institute participates in the Georgia Defined Contribution Plan (GDCP) which is a single-employer defined contribution plan established by the General Assembly of Georgia in July 1993 for the purpose ofproviding retirement coverage for State employees who are temporary, seasonal, and part-time and are not members ofa public retirement or pension system. GDCP is administered by the Board of Trustees ofthe Employees' Retirement System of Georgia. The Institute's payroll for the year ended June 30, 1995, for employees covered by GDCP was $462,294.16. The Institute's total payroll for all employees was $5,878,180.70.
Benefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board ofTrustees. If a member has less than$ 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 ofmaking 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.
Contributions and Vesting Member contributions are seven and one-half percent (7.5%) of gross salary. There are no employer contributions. Earnings are credited to each member's account in a manner established by the Board of Trustees. Upon termination ofemployment, the amount ofthe member's account is refundable upon request by the member.
Total contributions made by employees during fiscal year 1995 amounted to $34,672.55 which represents 7.50%, of covered payroll. These contributions met the requirements of the plan.

-22-

ATHENS AREA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE30 1995

EXHIBIT "F"

NOTE 8: LEAVE POLICIES
Employees earn arurual leave ranging from one and one-quarter days to one and three-quarter days each month depending upon the employees' length ofcontinuous State service with a maximum accumulation of forty-five days. Employees are paid for unused accumulated arurual 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 ofemployment.
Certain employees who retire with one hundred and twenty days or more offorfeited annual and sick leave are entitled to additional service credit in the Employees' Retirement System of Georgia.
NOTE 9: 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, 1995, the Georgia State Financing and Investment Commission paid $1,552,674.00 to various vendors for approved projects related to Athens Area Technical Institute.
NOTE 10: 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.
NOTE 11: 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, 1995. 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 ofSl,000,000.00 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.

-23 -

ATHENS AREA TECHNICAL INSTITUTE
NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995

EXIIlBIT "F"

NOTE 11: BONDING INFORMATION
All employees of Athens Area Technical Institute are also bonded under Commercial Crime Policies written by the United States Fire Insurance Company, their Policy Nos. 626 011675 2 and 626 012294 4, on which the premiums were paid to October 1, 1995. Under these additional public employee dishonesty coverages, the policies insure the Institute to a maximum of$9,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees.

- 24-

SUPPLEMENTARY INFORMATION - 25 -

ATHENS AREA TECHNICAL INSTITUTE COMBfNfNG BALANCE SHEET ISJAIVIOBX BASfSJ
BUPGETFUNP
JUNE30 1995

EXHIBIT"G"

A$Sill cash and cash EquAccounts R ~
stale Funds Federal Financial Aosi8tance Other
Prepaid ttems
TolalAssets

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

s
LOTTERY FOR
EDUCATION

TOTAL

$

m 63/J.76

$

m 63/J.76

$

142,608.05 $

264,083.86 $

<106,691.91

189,631.84

189,631.84

327,806.04

327806.04

$

660,045.93 $

264,083.86 $

924,129.79

$

4,994.59

$

4,994.59

$

942671.28 $

264083.86 $

1206755.14

LfABfl(TfES AND FUND EOU(TY
Liabilities cash OVerdraft Accounts Payable Salaries Payable Payroll Withholdings Deferred Revenue Tuition and F-
Total Liabilities
Fund Equity Fund Balance Re&elVC Federal Financial Assistance For Refund to Georgia Department ofTechnk:al and Adult Edllcation - Administrative Central Office For Expired Grant Balances I.Ive Work Projects Prior Year Local Funds Unreserved Designated Surplus Regular Lottery for Education
Total Fund Equity
Total Liabilities and Fund Equity

$ 389,193.83 107,631.76
25,953.82
147,583.87
670,363.28 $

71,168.15 $ 192,887.71

71,168.15 582,081.54 107,631.76 25,953.82

147,583.87

264055.86 $ _ _...;934=:,.4..:;1c::9'-C.14..:.

$

645.60

32.66

38,546.79

231,189.85

$

645.60

32.66

38,546.79

231,189.85

1,893.10 $

$

272,308.00 $

28.00

1,893.10 28.00

28.00 $ _ __,272=,336=::::-00,c.

$

942,671.28 $

264083.86 $ =~1~206~7;,,;55~.14;;,

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

ATHENS AREA TECHNICAL INSTITUTI; COMBINING STATEMENT OE CHANGES IN FUND BALANCE (STATUTORY BASIS\
BUDGET FUND YEAR ENDED JUNE 30 1995

EXHIBIT"H"

FUND BALANCE JULY 1
R--
Unresenied lleaignaled SUrplus
~
Adjuslmenls to Prior Yeafs Accounts Payable
- - 1 Elccess of Funds Available over Expenditures
DEDUCTIONS Unresenied Fund Balance (Surplus) Returned to Georgia Department of Technical and Adult Education Administrative Central Office Yr Ended June 30, 1994 Adjustments to Prior Yws Accounts Receivable R - - Fund Bslance C8nied 0Yer from
Prior Year as Funds Available
FUND BALANCE JUNE 30
(ToE>chlbit"G")

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

e
LOTTERY FOR
EDUCATION

TOTAL

$

231,426.43

8010.60 $

$

239,437.03 $

$
0.00 0.00 $

231,426.43
8010.60 239437.03

$

28,003.68$

244,576.59

$

272,580.27 $

28.00 $ 28.00 $

28,031.68 244,576.59 272,606.27

8,010.60 $ 304.93
231,393.77 239,709.30 $
272308.00 $

0.00 $ 0.00 $

8,010.60 304.93
231,393.77
239,709.30

28.00 $

272336.00

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

ATHENS AREA TECHNICAi INSTITUTf COMBINING STATEMENT OF B,JNps AVAILABLE ANP FXPFNQITURfS
BUQGETFUNQ YEAR ENQEP JUNE ;ia 1995

EXHIBIT"r

FUNps AVAILABLE
Bm!:M
STATE FUNDS Allotment from Georgia Department of Technical and Adult Education -Administrative Central Office
FEDERAL REVENUES
OTHER REVENUES RETAINED Contract
c.-gia Department of Human Resources
PEACH Project
c.-gia lnstitut9 of Technology
Satsllite Technology Program Donations Fees
Application Graduation Registration/Continuing Education Testing Other 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 Live Work Projeds Prior Year Local Funds
Total Carry-Over from Prior Year
Total Funds Available
EXPENPITURl;S
PERS~ SER~f-INSTITUTIONS
Salaries and Wages Employer's Conbibutions for:
F.I.C.A. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance WOlkers' Compensation Insurance

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR
EDUCATION

TOTAL

6,010,165.93 $ 1,112,260.53

275,671.86 $

6,285,837.79 1,112,260.53

217,216.04
45,228.51 31,550.00
30,427.50 4,420.00
820,243.48 42,514.07 37,334.78 15,833.16 104,268.70 1,445.00 101,195.77
831,825.86
2,283,502.67
9,405,929.13 $

275,671.86 $

217,216.04
45,228.51 31,550.00
30,427.50 4,420.00
820,243.48 42,514.07 37,334.78 15,833.16 104,268.70 1,445.00 101,195.77 831,825.66
2,283,502.67
9,681,600.99

31,455.84 199,937.93
231,393.77

31,455.84 199,937.93
231,393.77

9,637,322.90 $

275,671.86 $

9,912,994.76

5,352,182.60
81,867.59 575,435.70 611,659.85
26,164.00 4,317.80 22,750.29
6,674,377.83

5,352,182.60
81,867.59 575,435.70 611,659.85
26,164.00 4,317.80
22,750.29
6,674,377.83

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

ATHENS AREA TECHNICAL INSTIWTE
COMBINING STATEMENT OF FUNDS AVAILAB! E AND EXPENDITURES BUQGE;TFUND
YEAR ENDED JUNE 30 1995

EXHIBIT"r

EXPENDITURES
OPERATING EXPENSES-INSTITUTION
Olllef Cosls -Vehicle Expenses SuppUes and Materials Repairs and Maintenance Utilities Rents (Olller than Real Estate) Insurance and Bonding Olller Open,ling Expenses Publications and Printing
Travel Motor Vehicle Purchases Equipment
Equipment Purchases Rental of Equipment Computer Charges OtherCosls
Supplies and Materials Repairs and Maintenance Sol\ware Equipment Equipment Purchases Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Contracts
QUICK START PROGRAM
Personal Services Salaries and Wages Employe(s Contributions for: F.I.CA. Retirement Health Insurance
Travel
ADULT LITERACY GRANTS
Personal Services Salaries and Wages Employer's Contributions for: F.I.CA. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
Other Costs Supplies and Materials Repairs and Maintenance Insurance and Bonding Grants to Counties, Cities and Civil Divisions Other Operating Expenses Publications and Printing_
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 29 -

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDLICATION

"B" LOTTERY FOR
EDUCATION

TOTAL

5,610.67 371,317.39
99,645.06 249,690.02
13,143.57 12,381.35 419,644.96 40,873.91 51,609.26 19,198.00
233.211.35 17,524.54
6,003.43 25,495.62 12,149.46
107,199.53 56,977.54
222,212.39 59,689.35
2 023,577.40
91.73
1.33 10.83 11.47 137.39
252.75
516,786.37
7,151.52 36,937.04 39,203.27
2,110.00 348.20
1,834.71
12,701.94 3,102.64 60.00
36,810.16 7,370.13 639.20

5,610.67 371,317.39
99,645.06 249,690.02
13,143.57 12,381.35 419,644.96 40,873.91 51,609.26 19,198.00
233,211.35 17,524.54
6,003.43 25,495.62 12,149.46
107,199.53 56,977.54
222.212.39 59,689.35
2,023,577.40
91.73
1.33 10.83 11.47 137.39
252.75
516,786.37
7,151.52 36,937.04 39,203.27
2,110.00 348.20
1,834.71
12,701.94 3,102.64 60.00
36,810.16 7,370.13 639.20

ATHENS ~EA TECHNICAi INSTITUTE CQMBINING STATEMENT QF FUNDS AVAIL ARI EANP FXPl;NPJTURES
BUDGETFUNQ YEAR ENPEP JUNE 30 1995

EXHIBIT"r

EXPENDITURES
AP\JbT LITff'APY GRANTS
Trawl Equipment
Equipment Pun:hues Real E - Rentals Telecommuntcations Per Diem, Fees and Contracts
Per Diem and F...
JOB TRAINING PARTNERSHIP ACT
Perwnal Services Salaries and Wages Employer's Contribution for: F.1.CA
Oliler Costs Other Operating Expens<>s
EQUIPMENT-TECHNICAL INSmUTEs Equipment
REPAIRS AND RENO\/ATIONS
OtherCosts Repairs and Maintenance
Per Diem, Fees and Contracts Per Diem and Fees
Total Expenditures
Excess d Funds Available over Expenditures

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR
EDUCATION

TOTAL

8,062.67
6TT.65 7,315.92 1,685.71
708.84
683,505.97

8,062.67
6TT.65 7,315.92 1,685.71
708.84
683,505.97

9,120.00 132.24
1,780.12 11,032.36

9,120.00 13224
1,780.12 11,032.36

187,891.00 $

187,891.00

9,392,746.31 244,576.59

41,140.86 $ 46,640.00 87,780.86 $ 275,671.86 $
0.00

41,140.86 46,640.00 87,780.86 9,668,418.17 244,576.59

9,637,322.90 $

275,671.86 $

9,912,994.76

See accompanying notes and Independent Accountant's Combined Report on Review d Financial Statements and Supplementary Information.
. 30.

ATHENS AREA TECHNIQAL INSTITUTE COMBINING STATEMENT OE CHANGES IN ASSETS ANP UABIUIIES
FIDUCIARY FUND IYPE -AGENCY FUNDS YEAR ENDED JUNE 39 1995

EXHIBIT"J"

flH:IP

Genoral Scholanlhlp Fund

$

HOPE Scholarship Program

Malpractice Insurance

NLN Admlaiona TIiiing Fund

Nursing Achi4Mlmonl Test

Pell Grant Program

SATTesting Fund

Student Activities Fund

studanl Insurance

S U ~ Educational Opportunity Grants

ASSETS/ LIABILITIES JULY 1 1994
9,275.87 $ 0.00 0.00
3,917.00 1,160.75
0.00 -933.00 5,987.18 5,029.31
0.00

ADDITIONS 14,813.85$
438,730.15 6,222.00 984.46
318,526.00 933.00
60,024.21 2,130.00 8,300.00

DEDUCTIONS 8,997.54$
438,730.15 4,710.00 4,901.46 1,160.75
318,526.00
50,190.50 595.50
8,300.00

ASSETS/ LIABILITIES JUNE30 1995
15,092.18 0.00
1,51200 0.00 0.00 0.00 0.00
15,820.89 6,563.81
0.00

$

24437.11 $

850663.67 $

836111.90 $

38~.88

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplemenlary Information.
-31-

ATHENS AREA TECHNICAL INSTITUTE CASH AND CASH EQUIVALENTS
JUNE 30 1995
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
Cash on Hand Petty Cash

SCHEDULE 1

$

48,000.32

1,408.95 400.00
s _ _ _4_9_.a_o_9._2.1.

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-32-

ATHENS AREA TECHNICAL INSTIJL/IE SCHEDULE OF FEDERAL REVENUES
YFAR ENDED JUNE 30 1995
BUDGFTFUND
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
Rehabilitation Services - Vocational Rehabilitation Grants to States Through Georgia Department of Human Resources
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
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 Trade Adjustment Assistance - Workers Through Georgia Department of Labor
Job Training Partnership Act Through East Central Georgia Consortium Through Georgia Department of Technical and Adult Education - Administrative Central Office Through Georgia Mountain Regional Development Center Through Northeast Georgia Regional Development Center
Veterans Affairs, U. S. Department of Vocational Rehabilitation for Disabled Veterans Direct

SCHEDULE "Z'

CFDA
NUMBER

AMOUNT

84.002

$

84.033

84.126

266,813.99 18,636.35 14,787.13

84.048

389,811.21

84.049

23,136.90

93.561
17.245
17.250 17.250 17.250 17.250

65,192.76
3,473.90
90,767.33 11,032.36 3,239.50 221,690.10

64.116

3,679.00 1112260.53

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 33 -

ATHENS AREA TECHNICAL INSTITUTE RECONCILIATION OF SALARIES AND WAGES AND TRAVEL
YEAR ENDED JUNE 30 1995

SCHEDULE "3"

Totals per Annual Supplement Accruals June 30, 1995 June 30, 1994
Totals per Report

SALARIES AND WAGES

$

5,859,035.28 $

TRAVEL 60,305.86

107,631.76 -88,486.34

47.25 -543.79

$

5,878,180.70 $

59,809.32

SUMMARY BY OBJECT CLASS
BUDGET FUND Personal Services-Institutions Operating Expenses-Institutions Quick Start Program Adult Literacy Grants Job Training Partnership Act

$

5,352,182.60

$

91.73

516,786.37

9,120.00

51,609.26 137.39
8,062.67

$

5,878,180.70 $

59,809.32

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-34-

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

ATHENS AREA TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEARENDEDJUNE30 1995

STATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR QUESTIONED COSTS

The status offindings disclosed in the review report for the year ended June 30, 1994, is summarized below:

Audit Control Number

Status ofFinding

822-94-01 822-94-02

See Audit Control Number 822-95-01 Corrective Action Implemented

PRIOR YEAR/CURRENT YEAR

REVENUE/RECENABLES/RECEIPTS Unsupported Student Accounts Receivable Financial Statements Audit Control Number 822-95-01

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 ofregistration. The Institute collected $400.94 during the year under review, leaving a balance of$6,681.64 at June 30, 1995.

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.