MANAGEMENT REPORT ATHENS AREA TECHNICAL INSTITUTE ATHENS, GEORGIA AN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA YEAR ENDED JUNE 30, 1997 STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS 254 WASHINGTON STREET ATLANTA, GEORGIA 30334-8400 ATHENS AREA TECHNICAL INSTITUTE MANAGEMENT REPORT - TABLE OF CONTENTS - LETTER OF TRANSMITTAL SECTION I SELECTED FINANCIAL INFORMATION EXlllBITS A ANALYSIS OF CHANGES IN FUND BALANCE BUDGET FUND 2 SCHEDULES OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BUDGET FUND B "A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION 3 C "B" LOTTERY FOR EDUCATION 4 D RECONCILIATION OF SALARIES AND TRAVEL 5 -c- ~j SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 October 24, 1997 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 of Directors and Honorable Kenneth C. Easom, President Athens Area Technical Institute Ladies and Gentlemen: As part of our audit ofthe statutory basis financial statements ofthe State of Georgia presented in the Report ofthe State Auditor, the general purpose financial statements of the State of Georgia presented in the State ofGeorgia Comprehensive Annual Financial Report, and the issuance of a Statewide Single Audit Report pursuant to the Single Audit Act Amendments, as ofand for the year ended June 30, 1997, we have performed certain audit procedures at Athens Area Technical Institute. Accordingly, the financial statements and compliance activities of Athens Area Technical Institute were examined to the extent considered necessary in order to express opinion as to the fair presentation of the fmancial statements contained in the foregoing documents and to issue reports on compliance and internal control as required by the Single Audit Act Amendments of 1996. This Management Report contains information pertinent to the fmancial and compliance activities of Athens Area Technical Institute as of and for the year ended June 30, 1997. The particular information provided is enumerated in the Table of Contents. This report is intended solely for the use of management of Athens Area Technical Institute. However, this report is a matter of public record and its distribution is not limited. R~ submitted, CLV:gp Claude L. Vickers State Auditor SECTION I SELECTED FINANCIAL INFORMATION ATHENS AREA TECHNICAL INSTITUTE ANALYSIS OF CHANGES IN FUND BALANCE BUDGET FUND YEAR ENDED JUNE 3D, 1997 EXHIBIT "A" FUND BALANCE - JULY 1, 1996 Reserved Surplus ADDITIONS Adjustments to Prior Year's Accounts Payable Excess of Funds Available over Expenditures Exhibit "B" Exhibit "C" DEDUCTIONS Unreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and Adult Education - Administrative Central Office Year Ended June 30,1996 Adjustments to Prior Year's Accounts Receivable Refun'ds to Grantors Georgia Department of Technical and Adult Education - Administrative Central Office Federal Financial Assistance Reserved Fund Balance Carried Over from Prior Year as Funds Available ItAn DEPARTMENT OF TECHNICAL AND ADULT EDUCATION "B" LOITERYFOR EDUCATION TOTAL $ 222,387.20 $ 222,387.20 11,294.66 $ 1,148.25 12,442.91 $ 233,681.86 $ 1,148,25 $ 234,830.11 $ 29,161.12 190,099,99 $ $ 219,261.11 $ $ 0.00 0,00 $ 29,161.12 190,099.99 0,00 219,261.11 $ 11,294.66 $ 1,148,25 $ 12,442.91 3,351.40 3,351.40 437.73 437.73 222,009.98 222,009.98 $ 237,093,77 $ 1,148,25 $ 238,242.02 FUND BALANCE - JUNE 30. 1997 $ 215,849,20 $ 0.00 $ ====2::;.15;;;.r.,=84=9=.2;,;.0 SUMMARY OF FUND BALANCE Reserved Federal Financial Assistance For Expired Grant Balances Live Work Projects Prior Year Local Funds Private Grants SurplUS $ 606.29 24,702,55 183,188,11 5,055,21 2,297.04 $ $ 0.00 606,29 24,702,55 183,188.11 5,055.21 2,297.04 $ -2- 215,849.20 $ 0,00 $ ====2=15=,84===.9=.2=0 ATHENS AREA TECHNICAL INSTITUTE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BUDGET FUND "A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION YEAR ENDED JUNE 30, 1997 EXHIBIT"B" FUNDS AVAILABLE REVENUES State Appropriations Federal Revenues Other Revenues Retained CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance BUDGET ACTUAL VARIANCEFAVORABLE (UNFAVORABLE) $ 6,703,924,00 $ 6,703,166,41 $ 1,211,081.00 1,078,679,42 2,582,189,00 2,362,180.42 $ 10,497,194.00 $ 10,144,026.25 $ -757.59 -132,401,58 -220,008.58 -353,167.75 0.00 222,009,98 222,009,98 $ 10,497,194.00 $ 10,366,036,23 $ _ _...:-1.=,3.:..!,1,.:.:15:.:.7.:..;,.7.:..7 EXPENDITURES Personal Services-Institutions Operating Expenses-Institutions Adult Literacy Grants Job Training Partnership Act $ 7,391,599,00 $ 7,248,578.08 $ 1,924,498,00 1,853,188.87 887,654.00 860,739,43 293,443.00 213,429.86 143,020.92 71,309.13 26,914.57 80,013.14 $ 10,497,194.00 $ 10,175,936,24 $ _ _.....:3:=2~1,=25:..:.7...:..;.7..::..6 Excess of Funds Available over Expenditures $ 190,099.99 $ ===1=9::!O,=09=9=.9:.=:9 -3- ATHENS AREA TECHNICAL INSTITUTE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BUDGET FUND "B" LOTTERY FOR EDUCATION YEAR ENDED JUNE 30. 1997 EXHIBIT"C" FUNDS AVAILABLE REVENUES State Appropriations BUDGET ACTUAL VARIANCEFAVORABLE (UNFAVORABLE) $ 1,929,852.00 $ 1,929,847.94 $ -4_._06_ EXPENDITURES Equipment-Technical Institutes $ 1,929,852.00 $ 1,929,847.94 $ ...;,4...;,06~ Excess of Funds Available over Expenditures $ 0.00 $ =======0=,0=0 -4 - ATHENS AREA TECHNICAL INSTITUTE RECONCILIATION OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 1997 EXHIBIT"D" Totals per Annual Supplement Accruals June 30, 1997 June 30, 1996 SALARIES $ 6,538,631,06 $ TRAVEL 63,301.81 149,436.35 -120,178.04 $ 6,567,889.37 $ =====6=3,=30==:1=.8==1 - 5- SECTIONll AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS ATHENS AREA TECHNICAL INSTITUTE AUDITEE'S RESPONSE SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1997 PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS FINDING CONTROL NUMBER AND STATUS 822-96-01 Previously Reported Corrective Action Implemented'