Review report, state of Georgia, Augusta Technical Institute, Augusta, Georgia, year ended June 30, 1995

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.AR~,OO
V<o AC, 1994-95
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

REVIEW REPORT STATE OF GEORGIA AUGUSTA TECHNICAL INSTITUTE AUGUSTA, GEORGIA YEAR ENDED JUNE 30, 1995

AUGUSTA 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"DEPARTMENTOFTECHNICALANDADULTEDUCATION

8

E

"B" LOTTERY FOR EDUCATION

9

F NOTES TO THE FINANCIAL STATEMENTS

10

SUPPLEMENTARY INFORMATION

G COMBINING BALANCE SHEET (STATUTORY BASIS)

BUDGET FUND

28

H COMBINING STATEMENT OF CHANGES IN FUND BALANCE

(STATUTORY BASIS)

BUDGET FUND

29

I COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

30

J COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

FIDUCIARY FUND TYPE - AGENCY FUNDS

34

SCHEDULES

I CASH AND CASH EQUIVALENTS

35

2 INVESTMENTS

36

3 SCHEDULE OF FEDERAL REVENUES

37

4 RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL

38

5 RECONCILIATION OF PER DIEM AND FEES

39

AUGUSTA 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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
December 18, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly of Georgia Members ofthe State Board of Technical and Adult Education Members of the Local Board ofDirectors
and Honorable Jack B. Patrick, President Augusta 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 Augusta 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 Augusta Technical Institute_
A review consists principally ofinquiries ofInstitute 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 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 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 I through 5) is presented only for supplementary analysis purposes_ Such information has been

95ARL-4T

subjected to the inquiries and analytical procedures applied in the review of the financial statements, and we are not aware of any material modifications that should be made thereto.
Respectfully submitted,
c:J~
Claude L. Vickers State Auditor
CLV:gp
95ARL-4T

FINANCIAL STATEMENTS - 1-

AUGUSTA TECHNICAL INSTITUTE COMBINED BALANCE SHEET ISTAJUIPBY BASIS)
ALL FUND JYPES AND ACCOUNT GRoups JUNE3Q 1995

ASSem
Cati and Cati Equilllllents
IIWNlrnenla
Accounla ReceiYable State FIM'lds Federal Financial A1ai11ar1ce
Olher
,,_..,,_
FDCllldAaela Equipment
Amounla to be Provided for Payment c:J Accrued Compenlatecl Ab8ences

GOVERNMENTAL FUNOTYPE BUDGET

FIDUCIARY FUND TYPE
AGENCY

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

TOTALS
!Memorandum On!r,l
JUNE 301 1995 JUNE 301 1994

s

599,369.09 S 148,783.74

s

20,000.00

s

737,405.99

207,309.25

219,740.59 S 27,045.45

s

1,164,455.83 $ 27,045.45

$

272,280.25

s

748,152.83 S

931.257.72

s

20,000.00 S

20,000.00

s

737,405.99 S

207,309.25

246,786.04

$ 11191,501.28 S

$

272,280.25 $

416,623.00 115,288.24 344,763.69
876,674.93
240,841.30

$ 4,768,940.39

$ 4,768,940.39 $ 4,1181338.36

$

416 854.35 $

416,854.35 S

390,426.19

TolalAaaets

s

2,056,105.17 $ 175,829.19 S 4,768,940.39 $

sn 416,854.35 $ 7,417,729.10 $ 61 1538.50

LIABIL!IIES AND
fUNQECUJTY

Liabilities Accounts Payable Selaries Payable Payroll Wllhholdings DerenedR~ Tuition and Fees Funds Held in Custody for Others Compen&ated Ab8ences
Total Liabilities

$

905,080.60

18,627.97

4,066.TT

220,282.50 $ 175,829.19

$

1,148,057.84 S 175,829.19

$

905,080.60 $

810,914.23

18,627.97

0.00

4,066.TT

0.00

$

416,854.35

220,282.50 175,829.19 416,854.35

215,2TT.37 224,632.64 390,426.19

s

416,854.35 $ 1,740,741.38 $ 1,641,250.43

Fund Equity

IIM!Stment in Gene181 FbcBd Aaaets

Fund Balance

ReaeMld

Federal Financial Aaaistance

For Refund to Georgia

Department c:J Technical

and Adult Education

Admini&trative Central

Office

s

lrwentories

l.iW! Work Projects

Prior Year Local Funds

State Grants and Contracts

StudentSeMces

Unre8eM!d

Designated

Surplus

Regular

Total Fund Equity

$

0.00 203,312.17 109,074.33 135,935.63
13,351.49 446,373.71
0.00
908,047.33

$ 4,768,940.39
s 4,768,940.39

$ 4,768,940.39 $ 4,118,338.36

0.00 203,312.17 109,074.33 135,935.63
13,351.49 446,373.71

1,813.07 192,TT0.13 108,416.38 136,364.99
11.87 366,473.13

0.00

12,100.14

s 5,676,987.72 $ 41936,288.07

Total Liabilities and Fund Equity

$

2,056,105.17 $ 175,829.19 $

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

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

2

4,768,940.39 $

sn 416,854.35 S 7,417,729.10 $ 61 1538.50

AUGUSTA TECHNICAL INSTITUTE STATEMENT OF CHANGES IN FUND BALANCE (STATUTORY BASIS}
GOVERNMENTAL FUND TYPE YEAR ENDED JUNE 30, 1995

EXHIBrre

FUND BALANCE - JULY 1
Re&eMKt Unreserved
Designated SUrplus
ADDIIIQNS
Adjultments to Prior Year's Accounts Payable Excess of Funds Available over Expenditures
Exhibitc
Prior YNr'S Checks Voided
DEDUCTIONS
Unreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and Adult Education - Administrative Central Office Y.r Ended June 30, 1993 Yr Ended June 30, 1994
Adjustments to Prior Year's Accounts Receivable Refunds to Grantors
Central Savannah River Area Employment and Training Consortium Job Training Partnership Act
Georgia Department of Technical and Adult Education - Administrative Central Office Federal Financial Assistance
Reserved Fund Balance C8rried 0ver from Prior Yr as Funds Available
FUND BALANCE - JUNE 30
(To Exhibit A j

BUDGET FUND

YEAR ENDED

JUNE 30, 1995

JUNE 301 1994

$

805,849.57 $

736,843.42

12,100.14

325.80

$

817,949.71 $

737.169.22

$

387.72 $

3,243.42

715,158.76 0.00

582,859.57 741.46

$

715,546.48 $

586,844.45

$

0.00 $

12,100.14

269.28

325.80 0.00
1,530.72

0.00

48.94

1,813.07

72.98

611,266.37

504,085.52

$

625,448.86 $

506,063.96

$

908,047.33 $

817,949.71

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-

AUGUSTA TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1995

EXHIBITc

FUNDS AVAILABLE
BEVEtfUES
STATE FUNDS
Allotment from Georgia Department of Technical and Adult Education - Administrative Central Office
FEDERAL REVENUES (See Scheclule)
OTHER REVENUES RETAINED Contract Georgia Department of Administrative Services Distance Leaming Project Georgia Department of Human Resources PEACH Project Georgia Institute of Technology Satallit& Technology Project Dotiations
Fees
Applicatiol I Graduation Regi&tration/Continuing Education Testing Other lntarest Earned Rents Sales and Services (Net) Tuition Other Sources
Total Other Revenues Retained
Total Revenues
CARRY-OVER FROM PRIOR YEAR
Transfer from Reserved Fund Balance Live Work Projects Prior Year Local Fuids State Grants and Contracts Student Services
Total Cany-Over from Prior Year

TOTALS

YEAR ENDED

JUNE 30, 1995

JUNE 30, 1994

$

9,412,451.46 $

8,495,375.94

$

1,691,403.67 $

1,422,455.22

$

59,717.91 $

16,459.68

86,853.65

56,290.03

10,840.26 0.00

12,000.00 560.00

38,660.00 17,533.00 575,218.62
0.00 517.50 2,338.19 7,819.49 261,992.86 1,385,268.65 6,774.37

36,100.04 20,990.50 646,945.60 16,856.00 18,058.25
2,471.72 7,652.37 230,379.33 1,285,306.59
601.50

$

2,453,534.50 $

2,350,671.61

$

13,557,389.63 $

12,268,502.77

$

108,416.38 $

102,499.63

136,364.99

135,226.12

11.87

0.00

366,473.13

266,359.77

$

611,266.37 $

504,085.52

Total Fuids Available

$

14,168,656.00 $

12,772,588.29

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-

AUGUSTA TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1995

EXHIBITc

EXPENDITURES
PERSONAL SERVICES-INSTITUTIONS
Salaries and Wages Employer's Contributions for:
F.I.C.A. Retirement Health Insurance Unemployment Compensation Insurance Workers'Compensationlnsurance
OPERATING EXPENSES-INSTITUTIONS
OtherCosts MolDr Vehicle Expenses Supplies and Mat8rials Repairs and Maintenance Utilities Rents (Other than Real Estate) Insurance and Bonding Other Operating Expenses Publications and Printing
Travel MolDr Vehicle Purchases Equipment
Equipment Purchases LeaselPurchase of Equipment Rental of Equipment Computer Charges Software Real Estate Rentals Telecotmlunicati Per Diem, Fees and Contracts Per Diem and Fees Contracts
QUICK START PROGRAM
Pereonal Services
Salaries and Waoes
Employer's Contributions for: F.I.C.A. Retirement Health Insurance

TOTALS

YEAR ENDED

JUNE 30, 1995

JUNE 30, 1994

$

7,249,204.TT $

6,761,905.80

181,223.84 766,519.36 7TT,376.03
4,849.00 18,901.00

164,106.00 716,'462.87 713,871.TT
4,881.00 18,556.00

$

8,998,074.00 $

8,379,783.44

$

4,146.28 $

11,845.60

'462,367.68

562,311.00

149,025.30

261,188.80

445,255.13

417,247.28

10,882.48

16,283.39

48,431.25

31,869.43

829,TTS.06

416,380.49

38,423.53

52,425.91

90,696.11

99,156.64

12,884.60

28,340.50

204,028.31 0.00
5,032.54

388,373.58 1,163.51 9,289.94

11,257.10 36,085.20
51.10

23,223.12 12,483.49
315.64

214,925.45 17,562.00

154,364.TT 0.00

$

2,580,829.12 $

2,486,263.09

$

33,402.98 $

18,451.69

1,474.54 2,580.60 2,013.45

1,395.40 3,108.84 2,306.52

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary lnf'Ormation.
The notes to the financial statements are an integral part of this statement. -5-

AUGUSTA TECHNICAL INSTITUTE
STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND
YEAR ENDED JUNE 30, 1995

EXHIBITc

EXPENDITURES
QUICK START PROGRAM
OtherCosts Supplies and Materials Repairs and Maintenance Utilities Other Operating Expenses Publications and Printing
Travel Equipment
Equipment Purchases Computer Charges
OtherCosts Supplies and Materials
Software Per Diem, Fees and Contracts
Per Diem and Fees
ADULT LITERACY GRANTS
Personal Services Salaries and Wages Employer's Contributions for: F.1.C.A. Retirement Health Insurance
OtherCosts Supplies and Materials Repairs and Maintenance Utilities Rents (Other than Real Estate) Other Operating Expenses Publicatiol IS and Printing
Travel Equipment
Equipment Purchases Computer Charges
Software Real Estate Rentals Per Diem, Fees and Contracts
Per Diem and Fees

TOTALS

YEAR ENDED

JUNE 30, 1995

JUNE 30, 1994

$

20,030.26 $

17,1-46.21

2,531.64

347.37

20,092.98

17,802.43

11,340.44

6,735.29

0.00

9,991.32

1,eoe.n

2,057.95

20,513.92

10,085.38

0.00 7,289.89

801.16 0.00

462,350.88

292,307.28

$

585,431.30 $

382,536.84

$

418,763.02 $

3n,799.oe

16,097.94 35,336.00 31,123.37

13,101.13 25,559.47 21,050.14

22,992.58 1,392.71 3,631.28 0.00
45,086.n 519.38
2,545.92

15,470.51 2,394.61 4,589.67
400.00 70,273.07
0.00 11,599.28

8,736.40

449.90

0.00

3,250.00

0.00

1,284.95

2,878.70

0.00

$

589,104.07 $

542,221.81

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-

AUGUSTA TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1995

EXHIBITc

EXPENDITURES
JQ!;! T~NING PARTNERSHIP ACT
Personal Services Salaries and Wages Employer's Conbibutions for: F.I.C.A. Retirement Health Insurance
OtherCosts Supplies and Materials Repairs and Maintenance
Travel Equipment
Rental d Equipment
COMPUTER LABORATORIES AND SATELLITE DISHES -ADULT LITERACY
Equipment Equipment Purchases
EQUIPMENT-TECHNICAL INSTITUTES
OtherCosts Other Operating Expenses
Cornpulllr Charges Equipment Equipment Purchases
Equipment Equipnwrt Purchases
REPAIRS AND RENOVATIONS
OtherCosts Repairs and Maintenance Other Operating Expenses
Total Expenditures
Excess of Funds Available over Expenditures

TOTALS

YEAR ENDED

JUNE 30, 1995

JUNE 30, 1994

$

35,071.06 $

34,056.00

579.13 4,118.47 4,254.04

481.90 4,022.04 4,257.00

232.24 440.00 759.14

55.92 0.00
802.68

1,254.35

0.00

$

46,708.43 $

43,675.54

$

s,31e.so s _ _ _ _..;;;o.;.;;;.oo~

$

265.98 $

0.00

185,763.69

0.00

307,306.27

355,248.00

$

493,335.94 $ _ _....;355=::::.248=.00;;:.

$

154,429.50 $

0.00

265.98

0.00

$

154,695.48 $

0.00

$

13,453,497.24 $

12,189,728.n

715,158.76

582,859.57

See Independent Accountant's Combined Report on Review of Financial Statements
and Supplementary lofarmation.
The no111s to the financial statements are an integral part of this statement -7-

$

14,168,656.00 $

12,1n,588.29

AUGUSTA TECHNICAL INSTITUTE
STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
A DEPARTMENT OF TECHNICAL AND ADULT EDUCATION
YEAR ENDED JUNE 30. 1995

EXHIBITO-

FUNDS AVAILABLE RE\/ENUES
Statl8Funds Federal Reven&.a other Revenues Retained
CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$

8,784,943.00 $

8,759,101.14 $

2,068,117.00

1,691,403.67

2,Sn,450.00

2,453,534.50

$

13,730,510.00 $

12,904,039.31 $

-25,841.86 -376,713.33 -423,915.50
-826,470.69

50,000.00

611,266.37

561,266.37

EXPENDITURES
Peraonal Services-Institutions Operating Expenaes-lnstitutiona
Quick Start Program Adult Literacy Grants
Job Training Partnership kt.

$

13,780,510.00 $

- - - - - - 13,515,305.68 $

-265,204.32

$

9,153,136.00 $

8,998,074.00 $

3,356,311.00

2,580,829.12

585,432.00

585,431.30

614,820.00

589,104.07

70,811.00

46,708.43

155,062.00 n5,481.88
0.70 25,715.93 24,102.57

Excess of Funds Available over Expenditures

$

13,780,510.00 $

- - - - - - 12,800,146.92 $

980,363.08

$

715,158.76 $ ========7=1=5=,1=5=8=.=7=6=

See lndepet ldent 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 -

AUGUSTA TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE ANO EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
B LOTTERY FOR EDUCATION
YEAR ENDED JUNE 30. 1995

EXHIBITe

FUNDS AVAILABLE REVENUES
State Funds

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$

998,988.00 $

- - - - - - 653,350.32 $

-345,637.68

EXPENDIDJRES
Computer LaboratDries and Satellite Dishes - Adult Literacy Equipment - Technical Institutes Repairs and Renovations

$

5,652.00 $

5,318.90 $

333.10

493,336.00

493,335.94

0.06

500,000.00

154,695.48

345,304.52

Excess of Funds Available over Expenditures

$

998,988.00 $

- - - - - - 653,350.32 $

345,637.68

$

0.00 $ ===========0=.0=0=

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-

AUGUSTA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXIilBIT "F"

NOTE l: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Augusta 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 organiz.at:ional unit ofthe State of Georgia. The accompanying financial statements reflect the operations of Augusta Technical Institute as a separate reporting entity.
The Institute's Local Board ofDirectors is composed of eleven (11) 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 of Georgia. The Department's Administrative Central Office determines the amount of State funds to be received by Augusta Technical Institute. The Institute does not have authority to retain unexpended State funds (surplus) for any given fiscal year. Accordingly, Augusta Technical Institute is considered an organizational unit ofthe 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 Augusta 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 ofthe State ofGeorgia. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. 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 of funds 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 staffwhich 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-

AUGUSTA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30~ 1995

EXIIlBIT "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 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 of certain governmental long-tenn 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 of current financial resources measurement focus. Wrth 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 pennitted by statutes and regulations ofthe State of Georgia, the Budget Fund returns its unreseived fund balance (swplus) 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 BUDGETFUND
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 ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to pay liabilities ofthe 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.

- 11 -

AUGUSTA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXIDBIT "F"

NOTE l: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPE BUDGETFUND
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 ~ on the unexecuted portion ofcontracts 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 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 pennitted by statutes and regulations ofthe 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 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 and do not measure results ofoperations or have a measurement focus. 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 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 ofthese 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.
- 12-

AUGUSTA 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.
INVESTMENTS Investments are defined as those financial instruments with terms of three months or more from the date of purchase held for the production of revenue. Investments are stated at cost.
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 Expendable supplies are recorded as expenditures at the time of purchase and are not reflected on the Combined Balance Sheet (Statutory Basis).
Inventories ofgoods for resale are recorded as assets at cost at the time of purchase. The Institute uses the weighted average method in costing-out inventories based on sales.
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:
INVENTORIES Reported inventories (resale), under the consumption method, are offset by a portion of State funds on hand
for the fiscal year. This reservation offund balance was established to provide working capital for managing a reasonable level ofinventories for resale.
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, Augusta Technical Institute became a part ofthe Georgia Department ofTechnical and Adult Education. The Official Code ofGeorgia 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.
- 13 -

AUGUSTA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1995

EXIIlBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
RESERVED FUND BALANCE
STATE GRANTS AND CONTRACTS
The unexpended balance ofstate grants and contracts, other than through the Administrative Central Office. This amount is restricted for expenditure in future years.
STUDENT SERVICES
The unexpended balance of student services provided through the Institute's bookstore operations. These funds are restricted for bookstore operations 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 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 ofannual 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.
COMPARATIVE DATA Comparative total data for the prior year have been presented in selected sections of the accompanying filWlCial 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 ofGeorgia Annotated Section 50-17-59:
- 14 -

AUGUSTA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "F"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES (1) Bonds, bills, certificates ofindebtedness, notes, or other direct obligations of the United States or ofthe State ofGeorgia.
(2) Bonds, bills, certificates ofindebtedness, notes, or other obligations ofthe counties or municipalities ofthe State ofGeorgia.
(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 of development authorities created by the laws ofthe State of Georgia.
(5) Bonds, bills, certificates ofindebtedness, notes, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest 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 ofaccounts 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 ofthe State of Georgia (which include technical institutes) the option ofexempting demand deposits from the collateral requirements.
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 of June 30, 1995, are categorized , below in order to provide infonnation 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.
- 15 -

AUGUSTA TECHNICAL INSTITUTE
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXIIlBIT "F"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS

CATEGORIZATION OF DEPOSITS

Cash Deposits

Carrying Amount

Bank
Balances

Risk Categories

2

3

S 767 142.82 S 1408362 43 S 200 000 00 S l,208362A3 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 ofchanges ofequipment for the General Fixed Assets Account Group during the

fiscalyear:



Balance July 1, 1994

$4,118,338.36

Additions Deductions
Balance June 30, 1995
NOTE 4: GENERAL LONG-TERM DEBT

826,941.90 176,339.87
$ 4,768,940.39

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:

Balance July 1, 1994

$ 390,426.19

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

25,446.81 981.35

Balance June 30, 1995

$ 416,854.35

- 16 -

AUGUSTA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXIIlBIT "F"

NOTE 5: RISK MANAGEMENT
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 of units ofgovernment ofthe State of Georgia 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 ofGeorgia. 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 ofthe State ofGeorgia and county health departments, pennits such employees to defer a portion oftheir salaiy 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 infonnation relative to the plan is presented in the financial report ofthe State Personnel Board - Merit System ofPersonnel Administration for the year ended June 30, 1995.

- 17 -

AUGUSTA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT"F"

NOTE7: RETIREMENTPLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Plan Description Augusta Technical Institute participates in the Teachers Retirement System of Georgia (TRS), a cost-sharing multiple-employer public employee retirement system (PERS) established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State ofGeorgia. The Institute's payroll for the year ended June 30, 1995, for employees covered by TRS was $4,849,542.92. The Institute's total payroll for all employees was $7,736,441.83.
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 of60 years and has at least ten years ofcreditable service, (2) has at least 30 years of creditable service, regardless ofage, or (3) has attained the age of55 years and has at least 25 years ofcreditable 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 ofyears ofcreditable service up to 40 years. Any member who has between 25 and 30 years ofcreditable service and is at least 55 years
ofage shall receive a benefit which is reduced by the lessor of 1/12 of7% 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 nonnal retirement pension is payable monthly for life. Options are available for distribution ofthe 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 l Oyears 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 contnbutions occurs, but the member's contributions are refunded with interest.
Contributions Required and Contributions Made Employees ofthe Institute who are covered by TRS are required to pay 5% oftheir 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 of return on investments) was 7.50%.
Total contributions to the plan made during fiscal year 1995 amounted to $815,208.23, ofwhich $572,730.95
was made by the Institute and $242,477.28 was made by employees. These contributions represented I 1.81%
(Institute) and 5% (employees) ofcovered payroll.

- 18 -

AUGUSTA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "F"

NOTE 7: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

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

14,254,785,000.00

Unfunded pension benefit obligation

$ 1,058,958 000,00

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 ofthe same date. TRS does not make separate measurements ofassets and pension benefit obligation for individual employers.

Retirement System Contributions Total contnbutions 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 $572,730.95 was actuarially determined and represented .1013% oftotal contributions made by all participating employers.

Trend Information Historical trend information is presented in the financial report ofTRS 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.

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Plan Description Augusta Technical Institute participates in the Employees' Retirement System of Georgia (ERS), a single-
employer defined benefit pension plan established by the General Assembly of Georgia for the purpose of

- 19 -

AUGUSTA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "F"

NOTE7: RETIREMENTPLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Plan Description 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 $1,491,292.53. The Institute's total payroll for all employees was $7,736,441.83.
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 ofage 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 ofage.
Contributions Required and Contributions Made Under the old plan, member contributions consist ofemployee 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.
Total contnbutions to the plan made during fiscal year 1995 amounted to $240,694.65, ofwhich $222,053.46 was made by the Institute and $18,641.19 was made by employees. These contributions represented 14.890/o (Institute) and 1.25% (employees) ofcovered 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
-20-

AUGUSTA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "F"

NOTE7: RETIREMENTPLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Funding Status and Progress Pension Benefit Obligation
to pay benefits when due, and make comparisons among employers. The measure is the actuarial present value ofcredited projected benefits, and is independent ofthe funding method used to determine contributions to the plan.

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

(I) The present value offuture pension benefits paid was computed using a discounted rate of7.5%. This rate is also 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 ofinflation and merit increases:

Age

Percentage

20 25 30 35 40 to 65

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.

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

- 21 -

AUGUSTA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "F"

NOTE7: RETIREMENTPLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Funding Status and Progress Pension Benefit Obligation

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 Total pension benefit obligation

1,206,805,000.00 $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 ofJune 30, 1994. Net assets available for benefits were valued as ofthe same date. ERS does not make separate measurements ofassets 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 $222,053.46 was actuarially determined and represented .0865% oftotal contributions made by all participating employers.

-22-

AUGUSTA TECHNICAL INSTITUTE
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "F"

NOTE7: RETIREMENTPLANS
EMPWYEES' 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 Augusta Technical Institute participates in the Georgia Defined Contribution Plan (GDCP) which is a singleemployer 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 $1,133,768.46. The lnstitute's total payroll for all employees was $7,736,441.83.
Benefits
A member may retire and elect to receive periodic payments after attainment ofage 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board ofTrustees. If a member has less than$ 3,500.00 credited to his/her account, the Board ofTrustees has the option of requiring a lump sum distribution to the member in lieu ofmaking periodic payments. Upon the death ofa 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 tennination ofemployment, the amount of the member's account is refundable upon request by the member.
Total contributions made by employees during fiscal year 1995 amounted to $85,033.46 which represents 7.5% ofcovered payroll. These contributions met the requirements ofthe plan.

-23 -

AUGUSTA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "F"

NOTE 8: 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 ofcontinuous State service with a maximum accumulation offorty-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 ofninety days. Unused accumulated sick leave does not vest with the employee and is forfeited upon retirement or termination of employment.
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 ofGeorgia.
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 ofcapital outlay projects. During the fiscal year ended June 30, 1995, the Georgia State Financing and Investment Commission paid $3,884,076.41 to various vendors for approved projects related to Augusta Technical Institute.
NOTEl0: 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, ifany, to be immaterial to its overall financial position.
Litigation, claims and assessments filed against Augusta Technical Institute (as an organizational unit ofthe Department ofTechnical and Adult Education), ifany, are generally considered to be actions against the State ofGeorgia. 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, 1995.
NOTE 11: BONDING INFORMATION
The President and all employees ofAugusta 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 I, 1995. Under this agreement, the public employee dishonesty coverage insures Augusta
-24-

AUGUSTA TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "F"

NOTE 11: BONDING INFORMATION
Teclmical Institute to a maximum ofSl,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 $1,000,000.00 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 oftheir position or employment.
All employees ofAugusta Technical Institute are also bonded under Commercial Crime Policies written by the United States Fire Insurance Company, their Policy Nos. 626011675 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.

-25 -

SUPPLEMENTARY INFORMATION - 27 -

AUGUSTA TECHNICAL INSTITUTE COMBINING BALANCE SHEET CSTATUTORY BASIS)
BUDGETFUNP JUNE 30. 1995

EXHIBIT G"

ASSETS C8lh and cash Equivalenls
lnweti1a Accounla Receivable
Slate Funds Federal Financial Aalstance Other
lnvermies

A
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

e
LOTTERY FOR
EDUCATION

TOTAL

$

6981204.75

$

201000.00

$

6981204.75

$

201000.00

$

108,879.84 $

628,526.15 $

737,Gi.99

207,309.25

207,309.25

219,740.59

219,740.59

$

535,929.68 $

6281526.15 $

11164,455.83

$

272,280.25

$

272,280.25

TotalAuets

$

11526,414.68 $

628,526.15 $ -=====2=,1,..54.,,.,==940====.83=

UABIUTIES AND FUND EQUITY
Liabilities cash OVerdraft Accounts Payable Salaries Payable Payroll Wlthholclings Deferred Revenue Tuition and Fees
Total Liabilities
Fund Equity Fund Balance Reserved IIMriories Live Work Projects Prior Yr Local Funds State Grants and Contracts Student Services Unreserved Designated SUrplus Regular Lottery for Education
Total Fund Equity

$

98,835.66 $

98,835.66

$

375,390.11

529,690.49

905,080.60

18,627.97

18,627.97

4,066.77

4,066.77

220,282.50

220,282.50

$

618,367.35 $

628,526.15 $

1,2461893.50

$

203,312.17

109,074.33

135,935.63

13,351.49

446,373.71

0.00 $

$

908,047.33 $

$

203,312.17

109,074.33

135,935.63

13,351.49

446,373.71

0.00 0.00 $

0.00 0.00
908,047.33

Total Liabilities and Fund Equity

$

1,526,414.68 $

628,526.15 $

2, 154,940.83

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

AUGUSTA TECHNICAL INSTITUTE COMBINING STATEMENT OF CHANGES IN FUND BALANCE CSTATUTORY BASIS>
BUPGETFUNp YEAR ENDED JUNE 30, 1995

EXHIBIT H"

FUND BALANCE JULY 1
Reaerved Unreeerved
Designated Surplus
ADDITIONS
Adjustments to Prior Year's Accounts Payable
Excess of Funds Available rNer Expenditures
Exhibit r
DEDUCTIONS
Unreeerved Fini Balance (Surplus)
Returned to Georgia Department of Technical and
Adult Education - Administrative Central Office Year Ended June 30. 1994
Adjustments to Prior Year's Accounts Receivable Refunds to Grantors
Georgia Department of Technical and Adult Education - Adminllltrative Central Office Federal Financial Aaaistance
Reaerved Fini Balance C8nied Over from Prior Year Funds Available
FUND BALANCE - JUNE 30
(To Exhibit G")

A
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

e
LOTTERY FOR
EDUCATION

TOTAL

$

805,849.57

121100.14 $

$

8171949.71 $

$
0.00 0.00 $

805,849.57
121100.14 8171949.71

$

~7.72

715,158.76 $

$

715,546.48 $

$ 0.00 0.00 $

~7.72 715,158.76 715,546.48

$

12,100.14 $

269.28

1,813.07

611,266.37

$

625,448.86 $

$

9081047.33 $

0.00 $

12,100.14 269.28

0.00 $

1,813.07 611,266.37 625,448.86

0.00 $

9081047.33

See accompanying not and lndepel ldent Accountant's Combined Report on
Review of Financial Statements and Supplementary Information.
- 29 -

AUGUSTA TECHNICAL INSTITUTE
COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND
VEAR ENDED JUNE 30, 1995

EXHIBIT"r

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR EDUCATION

FUNDS AVAILABLE

REVENUES

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

FEDERAL REVENUES

$

OTHER REVENUES RETAINED

Contracts

Georgia Deparbnent of Administrative Services

Distance Leaming Project

$

Georgia Deparbnent of Human Resources

PEACH Project

Georgia Institute of Technology

Satellite Technology Project

Fees

Application

Graduation

Registration/Continuing Education

Other

Interest Earned

Rents

Sales and Services (Net)

Tuition

Other Sources

8?591101.14 $ 11691 1403.67
59,717.91
86,853.65
10,840.26
38,660.00 17,533.00 575,218.62
517.50 2,338.19 7,819.49 261,992.86 1,385,268.65 6n4.37

6531350.32 $ $
$

Total Other Revenues Retained

$

214531534.50

$

Total Revenues

$ 1219041039.31 $

6531350.32 $

CARRY-OVER FROM PRIOR YEAR

Transfer from Reserved Fund Balance

Live Work Projects

$

108,416.38

$

Prior Year Local Funds

136,364.99

State Grants and Contracts

11.87

Student Services

3661473.13

Total Carry-Over from Prior Year

$

6111266.37

$

TOTAL
914121451.46 11691 1403.67
59,717.91 86,853.65 10,840.26 38,660.00 17,533.00 575,218.62
517.50 2,338.19 7,819.49 261,992.86 1,385,268.65 6n4.37 214531534.50 1315571389.63
108,416.38 136,364.99
11.87 3661473.13 611.266.37

Total Funds Available

$ 13,515,305.68 $

653,350.32 $ 14,168,656.00

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

AUGUSTA TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1995

EXHIBIT"r'

EXPENDITURES
PERSONAL SERVICES-INSTITUTIONS
Salaries and Wages
Employer's Contributions for: F.1.C.A Retirement Health Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
OPERATING EXPENSES-INSTITUTIONS
OtherCos1B 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 Software Real Estate Rentals Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Contracts
QUICK START PROGRAM
Personal Services Salaries and Wages Employer's Contributions for: F.1.C.A Retirement Health Insurance

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR
EDUCATION

TOTAL

$

7,249,204.n

181,223.84 766,519.36 m,376.03
4,849.00 181901.00

$

819981074.00

$

4,146.28

462,367.68

149,025.30

445,255.13

10,882.48

48,431.25

829,n5.06

38,423.53

90,696.11

12,884.60

204,028.31 5,032.54

11,257.10 36,085.20
51.10

214,925.45 171562.00

$

215801829.12

$

33,402.98

1,474.54 2,580.60 2,013.45

$

7,249,204.n

181,223.84 766,519.36 m,376.03
4,849.00 181901.00

$

819981074.00

$

4,146.28

462,367.68

149,025.30

445,255.13

10,882.48

48,431.25

829,n5.06

38,423.53

90,696.11

12,884.60

204,028.31 5,032.54

11,257.10 36,085.20
51.10

214,925.45 171562.00

$

215801829.12

$

33,402.98

1,474.54 2,580.60 2,013.45

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

AUGUSTA TECHNICAL INSTITUTE
COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND
YEAR ENDED JUNE 30, 1995

EXHIBtrr

A"
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

EXPENDITURES

QUICK START PROGRAM

Other Costs Supplies and Materials Repairs and Maintenance Utilities Other Operating Expenses
Travel Equipment
Equipment Purchases Computer Charges
Software
Per Diem, Fees and Contracts Per Diem and Fees

$

20,030.26

2,531.64

20,092.98

11,340.44

1,809.72

20,513.92

7,289.89

4621350.88

$

5851431.30

ADULT LITERACY GRANTS

Personal Services Salaries and Wages Employer's Contributions for: F.I.C.A Retirement Health Insurance
Other Costs Supplies and Materials Repairs and Maintenance Utilities Other Operating Expenses Publications and Printing
Travel Equipment
Equipment Purchases Per Diem, Fees and Contracts
Per Diem and Fees

$

418,763.02

16,097.94 35,336.00 31,123.37

22,992.58 1,392.71 3,631.28
45,086.n 519.38
2,545.92

8,736.40

21878.70

$

589.104.07

JOB TRAINING PARTNERSHIP ACT

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

$

35,071.06

579.13 4,118.47 4,254.04

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

- 32 -

"B" LOTTERY FOR
EDUCATION $
$ $
$ $

TOTAL
20,030.26 2,531.64
20,092.98 11,340.44
1,809.72 20,513.92 7,289.89 462.350.88 585.431.30
418,763.02 16,097.94 35,336.00 31,123.37 22,992.58 1,392.71 3,631.28 45,086.n 519.38 2,545.92 8,736.40 21878.70
589.104.07
35,071.06 579.13
4,118.47 4,254.04

AUGUSTA TECHNICAL ltl!STITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1995

EXHIBITr

NA"
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR
EDUCATION

EXPENDITURES

JOB TRAINING PARTNERSHIP ACT

Other Costs Supplies and Materials Repairs and Maintenance
Travel
Equipment
Rental of Equipment

$

232.24

$

440.00

759.14

1,254.35

$

46,708.43

$

~OMPUTER LABQRATORIES AND ATELLITE DISHES ADULT LITERACY

Equipment Equipment Purchases

$

5,318.90 $

EQUIPMENT-TECHNICAL INSTITUTES

Other Costs Other Operating Expenses
Computer Charges Equipment Equipment Purchases
Equipment Equipment Purchases

$

265.98 $

185,763.69 307,306.27

$

493,335.94 $

REPAIRS AND RENOVATIONS

Other Costs Repairs and Maintenance Other Operating Expenses

$

154,429.50 $

265.98

$

154,695.48 $

Total Expenditures

$ 12,800,146.92 $

653,350.32 $

Excess of Funds Available over Expenditures

715,158.76

0.00

TOTAL
232.24 440.00 759.14 1,254.35 46.708.43
5,318.90
265.98 185,763.69 307,306.27 493,335.94
154,429.50 265.98
154,695.48 13,453,497.24
715,158.76

$ 13,515,305.68 $

653,350.32 $ 14,168,656.00

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

AUGUSTA TECHNICAL INSTITUTE COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30 1995

EXHIBrrr

f.UW2
General Scholarship F&nl HOPE Scholarship Program l.lcenlecl Practical Nurae Examination F._ l.lcenlecl Practical Nurse Insurance Pell Grant Program student Activities F&nl Student Government Fund studentlnaurance student Transpo,tation FNS Supplemental Educational Opportunity
Grants

ASSETS/ LIABILITIES JULY1 1 1994

s

6,092.98 $

47,rXJ7.08

1,621.n

781.39

850.42

1"9,268.91

257.05

15,334.59

0.00

ADDITIONS 43,1"9.29 $

DEDUCTIONS 37,375.40 $

ASSETS/ LIABILITIES JUNE 301 1995
11,866.87

588,473.02

635,553.10

17.00

3,307.20

2,636.63

2,298.29

10,291.25

8,465.00

2,607.64

887,327.87

888,755.12

-576.83

124,5"9.n

143,467.72

130,350.96

0.00

0.00

257.05

19,088.20

15,004.00

19,418.79

23,038.50

13,871.50

9,167.00

3,322.50

43,2"9.24

46,1"9.32

422.42

s

224,632.64 $

1,742,474.34 $

1,791,2n.79 $ =====1=7=5'=829==.1=9

See accompanying notes and Independent Accountanfs Combined Report on Review of Financial statements and Supplementary Information.
-34-

AUGUSTA TECHNICAL INSTITUTE CASH AND CASH EQUIVALENTS
JUNE 30, 1995
NONINTEREST BEARING ACCOUNTS
Truat Company Bank of Augusta, Augua,Georgia
INTEREST BEARING ACCOUNTS
Truat Company Baik of Augusta, Augusta.Georgia
Checking With Interest Account
OTHER Cashon Hand Petty Cash

$

644,518.92

102,623.90 1,010.01
$ ====7=48=l'6=15=2=.83=

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-35-

BUQGETFUNP
Trust Company Bmik of Augusta, Auguata,Georgia
c.tlflcates ot Depoelt No. 530015486 No. 530034750

AUGUSTA TECHNICAL INSTITUTE
INVESTMENTS JUNE 30. 1995

PURCHASE DATE

INTEREST
RATE

MATURITY DATE

SCHEDULE"'Z' AMOUNT

March 24, 1995 May2.1995

4.23Cl6 4.47%

September 22. 1995 $ October 31. 1995
$

10,000.00 10,000.00
20.000.00

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-36-

AUGUSTA TECHNICAL INSTITUTE SCHEDULE OF FEDERAL RE\IENUES
YEAR ENDED JUNE 30.1995

BUDGET FUND
Education, U. S. Department of Adult Education - StatB Administered Basic Grant Program Through Georgia Department of Technical and Adult Education - Administrative Central Office
Federal Work-Study Program Dir8ct
Vocational Education - Basic Grants to States Through Georgia Department of Technical and Adult Education - Administrative Central Office
Vocational Education - Community Based Organizations 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 Division of Family and Children Services
Labor, u. s. Department of
Job Training Partnership kt Through East Central Georgia Consortium Through Georgia Department of Labor Through Georgia Department of Technical and Adult Education - Administrative Central Office
Through Richmond/Burke Job Training Authority

CFDA NUMBER
84.002 84.033
84.048
84.174
93.561
17.250 17.250 17.250 17.250

SCHEDULE "3"

AMOUNT

$

301,103.69

21,896.09

612,390.47

9,498.35

142,986.79
41,801.33 327,799.89
46,708.11 187,218.95
$ ==1=,69====1,==403====.67=

See accompanying notes and Independent Accountant's Combined Report on
Review of Financial Statements and Supplementary lnfoonation.
- 37 -

AUGUSTA TECHNICAL INSTITUTE
RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL
YEAR ENDED JUNE 30, 1995

SCHEDULE4

Totals per Annual Supplerrw,t
Accruals .knt 30, 1995
Adjustments Coleman, WIiiiam
Totals per Report
SUMMARY BY OBJECT CLASS BUDGET FUND Personal Services-Institutions Operating Cxpa iaes Institutions Quick Start Program Adu!: Litllracy Grants Job Training Partnership Act

SALARIES ANDWAGES

$

7,717,320.86 $

TRAVEL 95,810.89

18,627.97

"93.00

$

7,736,441.83 $ =====95='=81=0=.89=

$

1,249,204.n

$

33,402.98

418,763.02

35,071.06

90,696.11 1,809.72 2,545.92 759.14

$

7,736,441.83 $ =======95='==81==0=.89=

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-38-

AUGUSTA TECHNICAL INSTITUTE RECONCILIATION OF PER DIEM AND FEES
YEAR ENDED JUNE 30, 1995

SCHEDULE s-

Totals per Annual SupplemelIt
Adjuatments Augusta Appralaal Company

TYPE PAYMENT

FEE AMOUNT

EXPENSE AMOUNT

$

673,680.02 $

6,075.01 $

TOTAL 679,755.03

Consultanl& - Quick Start

400.00

400.00

Totals per Report

$

674,080.02 $

6,075.01 $ ===-=680=--155_.03=

SUMMARY BY OBJECT CLASS
BUDGET FUND Operating Expeiw Institutions Quick Start Program Adult Literacy Grants

$

214,925.45

462,350.88

2,878.70

$ ===-=680=='=155==.03=

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-39-

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

AUGUSTA TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995

STATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR QUESTIONED COSTS

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

Audit Control Number

Status of Finding

824-94-01 824-94-02 824-94-03

See Audit Control Number 824-95-02 See Audit Control Number 824-95-01 Corrective Action Implemented

PRIOR YEAR

GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequate Equipment Inventory Records Financial Statements Audit Control Number 824-95-01

The review report for the year ended June 30, 1994, disclosed instances where two items of equipment were physically located, but were not recorded on the equipment inventory records. For the year under review, these two items were still not included on the Institute's equipment inventory records.

The Institute should follow established procedures to ensure that all equipment is recorded on the equipment inventory records.

PRIOR YEAR/CURRENT YEAR

REVENUE/RECEIVABLES/RECEIPTS Inadequate Accounting Control Procedures Financial Statements Audit Control Number 824-95-02

The review reports for the years ended June 30, 1991, 1992, 1993 and 1994, disclosed numerous accounting control deficiencies with the "Other" accounts receivable category shown on the Combined Balance Sheet (Statutory Basis). For the year under review, the accounts receivable procedures were again deficient as indicated below:

(I) As of June 30, 1995, the "Other" accounts receivable category shown on the Combined Balance Sheet (Statutory Basis) included $295.00 in student receivables outstanding from fiscal year 1994, $277.91 in student receivables outstanding from fiscal year 1993, $1,783.65 in student receivables outstanding from fiscal year 1992, $2,551.46 in student receivables outstanding from fiscal year 1991, and $23,665.30 in student receivables outstanding from fiscal year 1990.

AUGUSTA TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
REVENUE/RECEIVABLES/RECEIPTS Inadequate Accounting Control Procedures Financial Statements Audit Control Number 824-95-02
Tests ofthe underlying documentation supporting these receivables disclosed numerous instances where supporting documentation was not adequate to determine if the amounts recorded were actually earned by the Institute.
(2) As of June 30, 1995, the "Other" accounts receivable category shown on the Combined Balance Sheet (Statutory Basis) included $8,869.61 in checks returned for insufficient funds. Included in this amount were $8,277.98 from fiscal year 1994 or earlier.
(3) As of June 30, 1995 the "Other" accounts receivable category shown on the Combined Balance Sheet (Statutory Basis) included $751.39 in accounts receivable for tuition and fees from fiscal year 1993 for which payment was deferred by the Institute under a "Tuition Work Assistance Agreement" to enroll and attend classes at the Institute. Under this agreement, students were allowed to enroll and attend classes in exchange for work for the Institute. The "Tuition Work Assistance" policy was discontinued as ofJune 30, 1993.
(4) As of June 30, 1995 the "Other" accounts receivable category shown on the Combined Balance Sheet (Statutory Basis) included $2,330.59 in accounts receivable for tuition and fees for which payment was deferred by the Institute. These deferments were a result of the Institute's approving a number of students for Pell Grants only later to find out the students were ineligible.
Deferring payment oftuition and fees without approved financial aid is beyond the authority granted to the Institute by the Administrative Central Office ofthe Georgia Department of Technical and Adult Education. This practice by the Institute should be discontinued.
The Institute should initiate collection procedures in an effort to collect all amounts due to the Institute. Furthermore, the Institute should review all delinquent student accounts receivable to determine ifthe amounts accurately reflect amounts owed to the Institute.