Athens Technical College, Athens, Georgia, independent accountant's report on applying agreed-upon procedures for the fiscal year ended June 30, 2006

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
I
ATHENS TECHNICAL COLLEGE ATHENS, GEORGIA
INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES
FOR THE FISCAL YEAR ENDED JUNE 30, 2006
Russell W. Hinton State Auditor

ATHENS TECHNICAL COLLEGE - TABLE OF CONTENTS -
INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES EXHIBIT
A BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT

RUSSELL W. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
October 25, 2006

Members of the State Board Technical and Adult Education Members of the Local Board of Directors
and Honorable Flora Tydings, President Athens Technical College
Independent Accountant's Report on Applying Agreed-Upon Procedures
Ladies and Gentlemen:
We have performed the procedures enumerated below, which were agreed to by the College and the Administrative Central Office (Oversight Unit) ofthe Department ofTechnical and Adult Education, solely to assist you in assessing the accuracy ofthe annual financial statement information reported to the Administrative Central Office by the College for inclusion in the State's Comprehensive Annual Financial Report (CAFR) and Single Audit Report; and to assist you in assessing the accuracy of budget basis information provided in the Budget Comparison and Surplus Analysis Report, which is attached as Exhibit A. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency ofthese procedures is solely the responsibility ofthe parties specified in this report. Consequently, we make no representation regarding the sufficiency ofthe procedures described below either for the purpose for which this report has been requested or for any other purpose.
1. Review selected balance sheet items reported on the annual financial statement worksheets (cash, accounts receivable, accounts payable, deferred revenues, net assets). Confirm that these items have adequate supporting documentation and are properly reconciled to the College's general ledger.
Cash was not properly reconciled to amounts reported on financial statements. A variance of$9,933.00 was noted between the reconciliations and the amounts reported on the annual financial statement worksheets. Summer 2007 Hope Book checks not recorded on the financial system caused the Cash Balance on the Statement of Net Assets (SNA) and Note 1 Categorization of Deposits to be overstated and the Expenditures on the Statement of Revenues, Expenses and Changes in Net Assets (SRECNA) to be understated.

Capital Lease liability reported on the Statement of Net Assets included both principal and interest resulting in liabilities being overstated by $280,381.11.
2. Obtain the College's GAAP basis worksheets for Statement ofNet Assets and Statement of Revenues, Expenses and Changes in Net Assets (SRECNA) information that was submitted for inclusion in the State's CAFR and Single Audit. Utilizing test scripts, confirm that financial information presented in these worksheets properly support activity reported in the College's accounting records.
The College failed to include prior year Federal program encumbrances of $61,392.22 in the Schedule of Expenditures of Federal Awards. This omission caused this Schedule to be understated by $61,392.22. A correction was made to the Schedule of Expenditures of Federal Awards.
3. Obtain the College's worksheets for financial statement note disclosure information submitted for inclusion in the State's CAFR and Single Audit. Utilizing notes worksheets and other supporting documentation confirm that note disclosures related to Cash, Investments, Accounts Receivable, Capital Assets, Long-Term Debt, Lease Obligations and Retirement Plans have been properly reported.
We did not note any exceptions as a result of our procedures.
4. Review the College's year end GAAP basis journal entries. Obtain documentation for GAAP journal entries and confirm that the entries were posted to the College's annual financial statement worksheets.
We did not note any exceptions as a result of our procedures.
5. Confirm that State Appropriation revenues, receivables and remittances ofprior year surplus balances have been properly recorded in the College's financial records. Prior year surplus balances should be netted against State Appropriation revenues in the GAAP basis financial statements; however, prior year surplus balances should be reflected as fund balance adjustments on the Budget basis financial statements.
$585,410.00 of State Appropriations were included in Other State funds. An adjusting entry was made to reclassify this amount from Other State funds to State Appropriations.
6. Obtain listing ofwrite-offrequests for accounts receivable less than $3,000.00 for fiscal year 2006. Confirm that these write-off requests have been approved by the State Accounting Officer and have been posted to the College's financial statements.
The College wrote off accounts receivable of $15,412.15 without supporting documentation of appropriate due diligence being performed. The majority of these receivables were very old and their validity was in question; therefore, no adjustment will be required by the College to reinstate these accounts receivable.

7. Verify that the listing ofsalaries, travel, and per diem and fees reported to the Department of Audits is in accordance with O.C.G.A. 50-6-27 and reconciles to amounts recorded in the College's financial statements.
We did not note any exceptions as a result of our procedures.
8. Review the year end Budget Comparison andSurplus Analysis Report (Exhibit A). Confirm that budget information presented in this Report supports activity reported in the College's accounting records and determine if any budget overexpenditures exist.
We did not note any exceptions as a result of our procedures.
9. Obtain documentation for Budget basis reserves reported by the College on the Budget Comparison and Surplus Analysis Report (Exhibit A). Confirm that the reserves are properly documented, valid and appropriate.
We did not note any exceptions as a result of our procedures.
10. Review the H.O.P.E. Scholarship Program reconciliation between the College and the Georgia Student Finance Commission. Confirm that information reported to the Georgia Student Finance Commission has been reconciled with H.O.P.E. Scholarship activity reported on the College's financial records.
We did not note any exceptions as a result of our procedures.
These agreed-upon procedures do not constitute an audit of the financial statements or any part thereof, the objective ofwhich is to express an opinion on the financial statements or a part thereof. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.
This report is intended solely for the information and use of the specified users listed above and is not intended to be and should not be used by anyone other than these specified parties.

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Respectfully submitted,
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~J:sell W. Hinton, CPA, CGFM State Auditor

EXHIBIT

ATHENS TECHNICAL COLLEGE BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT
YEAR ENDED JUNE 30, 2006

EXHIBIT"A"

REVENUES
State Appropriation State General Funds
Federal Funds Other Funds
Total Revenues
CARRY-OVER FROM PRIOR YEAR
Transfer from Reserved Fund Balance
Total Funds Available
EXPENDITURES
Adult Literacy Quick Start and Customized Services Technical Education
Total Expenditures
Excess of Funds Available over Expenditures
FUND BALANCE JULY 1
Reserved Unreserved
ADJUSTMENTS
Prior Year Payables/Expenditures Unreserved Fund Balance (Surplus) Returned
to Department of Technical and Adult Education Year Ended June 30, 2005
Refunds to Granters Federal Financial Assistance Returned to Department of Technical and Adult Education Year Ended June 30, 2005 Other
Prior Year Reserved Fund Balance Included in Funds Available
FUND BALANCE JUNE 30
SUMMARY OF FUND BALANCE
Reserved Live Works Projects Prior Year Local Funds Sales and Services Technology Fees
Total Reserved
Unreserved Surplus
Total Fund Balance

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 12,228,500.00 $ 12,228,500.00 $

1,934,776.48

1,797,301.36

8,231,383.35

7,543,790.83

$ 22,394,659.83 $ 21,569,592.19 $

0.00 -137,475.12 -687,592.52
-825,067.64

0.00

202,467.83

$ 22,394,659.83 $ 21,772,060.02 $

202,467.83 -622,599.81

$ 1,332,021.34 $ 1,259,179.59 $

228,000.00

203,378.27

20,834,638.49

19,971,469.57

$ 22,394,659.83 $ 21,434,027.43 $

$

0.00 $

338,032.59 $

72,841.75 24,621.73 863,168.92
960,632.40
338,032.59

202,467.83 1,277.20

5,768.66 -1,277.20

-349.40 -2,753.93 -202,467.83

$

340,697.92

$

15,809.75

183,188.11

-55,442.18

197141.75

$

340,697.43

0.49

$

340,697.92