Management report, Augusta Technical Institute, Augusta, Georgia, an organizational unit of the state of Georgia, year ended June 30, 2000

AUGUSTA TECHNICAL INSTITUTE MANAGEMENT REPORT - TABLE OF CONTENTS -

LETTER OF TRANSMTITAL

SECTION I

SELECTED FINANCIAL INFORMATION

EXHIBITS

A ANALYSIS OF CHANGES IN FUND BALANCE

BUDGET FUND

1

SCHEDULES OF FUNDS AVAILABLE AND EXPENDITURES

CONWAREDTOBUDGET

BUDGET FUND

B

"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

2

C

"B" LOTTERY FOR EDUCATION

3

D RECONCILIATION OF SALARIES AND TRAVEL

4

SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

ILL W. HINTON
TATE AUDITOR 404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
November 13, 2000

Honorable Roy E. Barnes, 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 Terry Elam, President Augusta Technical Institute
Ladies and Gentlemen:
As part ofour audit ofthe statutory basis financial statements ofthe State ofGeorgia presented in the State ofGeorgia Report ofthe State Auditor, the general purpose financial statements ofthe State of Georgia presented in the State ofGeorgia Comprehensive Annual Financial Report, and the issuance of a Statewide Single Audit Reportpursuant to the Single Audit Act Amendments, as of and for the year ended June 30, 2000, we have performed certain audit procedures at Augusta Technical Institute. Accordingly, the financial statements and compliance activities of Augusta Technical Institute were examined to the extent considered necessary in order to express an opinion as to the fair presentation of the financial 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 financial and compliance activities of Augusta Technical Institute as of and for the year ended June 30, 2000. The particular information provided is enumerated in the Table of Contents.
This report is intended solely for the information and use ofmanagement and members ofthe Local Board ofDirectors ofAugusta Technical Institute and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
.. r'~:? on L.t) .~ ~inton State Auditor
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SECTION I SELECTED FINANCIAL INFORMATION

AUGUSTA TECHNICAL INSTITUTE ANALYSIS OF CHANGES IN FUND BALANCE
BUDGET FUND YEAR ENDED JUNE 30, 2000

EXHIBIT "A"

FUND BALANCE - JULY 1, 1999 Reserved Surplus
ADDITIONS Adjustments to Prior Year's Contracts and Accounts Payable Excess of Funds Available over Expenditures Exhibit"B" Exhibit "C" Reimbursement of Prior Year's Expenditures
DEDUCTIONS Adjustments to Prior Year's Accounts Receivable Refunds to Grantors Federal Financial Assistance Georgia Department of Technical and Adult Education - Administrative Central Office Reserved Fund Balance Carried Over from Prior Year as Funds Available
FUND BALANCE - JUNE 30, 2000

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

nB" LOTTERY FOR
EDUCATION

$

1,036,848.39

$

0.00

$

1,036,848.39 $

0.00

$

694.49

608,209.82
$
-123.29

$

608,781.02 $

59.58 59.58

$

672.36 $

0.00

169.00

550,713.54

$

551,554.90 $

0.00

$

1,094,074.51 $========5=9.=5=8

SUMMARY OF FUND BALANCE
Reserved Federal Financial Assistance For Continuation of Program For Refund to Grantor Agency Georgia Department of Technical and Adult Education - Administrative Central Office Other Inventories Live Work Projects Prior Year Local Funds Student Services
SurplUS
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$

12,563.16

1,855.17 81.01
582,254.21 122,295.06 132,552.08 242,001.59

$

1,093,602.28

472.23 $

59.58

$

1,094,074.51 $========5=9.=5=8

AUGUSTA TECHNICAL INSTITUTE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION YEAR ENDED JUNE 30, 2000

EXHIBIT"B"

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

BUDGET

ACTUAL

VARIANCE FAVORABLE (UNFAVORABLE)

$ 12,085,010.00 $ 12,085,009.26 $

3,783,919.76

3,362,558.13

4,751,800.00

3,573,945.74

$ 20,620,729.76 $ 19,021,513.13 $

-0.74 -421,361.63 -1,177,854.26
-1,599,216.63

0.00

550,713.54

550,713.54

$ 20,620,729.76 $ 19,572,226.67 $ _ _-.:..l.1,.::;04.:.,:8:..?:,5:.:;0.::;3.:.::.0.::;9

EXPENDITURES
Personal Services-Institutions Operating Expenses-Institutions Adult Literacy Grants Quick Start Program Job Training Partnership Act Capital Outlay Year 2000 Project Funding

$ 12,480,280.00 $ 11,733,497.85 $

5,197,151.00

4,553,853.73

1,165,670.00

1,046,143.84

38,336.00

38,335.26

1,700,292.76

1,553,186.17

10,000.00

10,000.00

29,000.00

29,000.00

746,782.15 643,297.27 119,526.16
0.74 147,106.59
0.00 0.00

$ 20,620,729.76 $ 18,964,016.85 $ _ _..:....!1,.::;65:..:6:.l.:,7~1-=2:..::.9..:...1

Excess of Funds Available over Expenditures

$

608,209.82 $ =====60;;,;;8;,:!,;,2:;;0~9;,;;;.8;:2

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AUGUSTA TECHNICAL INSTITUTE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"B" LOTTERY FOR EDUCATION YEAR ENDED JUNE 30. 2000

EXHIBIT"C"

FUNDS AVAILABLE
REVENUES
State Appropriation Other Revenues Retained

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 511,382.00 $ 511,382.00 $

1,638,660.00

1,634,139.31

0.00 -4,520.69

EXPENDITURES Equipment-Technicallnstitutes

$ 2,150,042.00 $ 2,145,521.31 $ - - - - --4,'5-20-.6-9

$ 2,150,042.00 $ 2,145,461.73 $

4..:..,5;.,.;.8....;..0._2,;...7

Excess of Funds Available over Expenditures

$

59.58 $ =======5:=9.:=5:=8

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AUGUSTA TECHNICAL INSTITUTE RECONCILIATION OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30. 2000

EXHIBIT"D"

Totals per Annual Supplement
Accruals June 30, 1999 June 30,2000

SALARIES

TRAVEL

$ 10, 159,334.35 $ 158,624.36

-89,158.84 49,963.79

$ 10,120,139.30 $ 158,624.36

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SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

AUGUSTA TECHNICAL INSTITUTE AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-824-97-02

Partially Resolved - See Corrective Action/Responses

CORRECTIVE ACTIONIRESPONSES

REVENUES/RECEIVABLES/RECEIPTS Inadequate Accounting Control Procedures Finding Control Number: FS-824-97-02

Outstanding receivables from prior years continue to be pursued for collection. Collections are a continuing process. Receivables occur when the status of a financial aid student changes. The Institute has implemented checks and balances between financial aid and student registration in an effort to minimize receivables.

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FA-824-98-01

Partially Resolved - See Corrective Action/Responses

CORRECTIVE ACTIONIRESPONSES

ACTIVITIES ALLOWED AND UNALLOWED Improper Expenditures for Financial Aid Services Vocational Education - Basic Grants to States (CFDA 84.048) Questioned Costs: $48,930.95 Finding Control Number: FA-824-98-01

Salaries for financial aid personnel were paid from non-Perkins funds for fiscal year 1999. However, in a communication with the U. S. Department of Education, it was stated that since financial aid personnel provide services to special population students, salaries were a permissible expense. Also, with regard to the issue of supplanting funds, the Department ofEducation states that since the salaries have always been funded by Perkins, supplanting did not occur. Final resolution of this finding will not be made until such time as the Department ofEducation requests a response to the finding. This normally is a two to four year process. The Institute considers this finding resolved based on communication from the Department of Education.

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AUGUSTA TECHNICAL INSTITUTE AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000
PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS CORRECTIVE ACTIONIRESPONSES ACTNITIES ALLOWED AND UNALLOWED Improper Expenditures for Financial Aid Services Vocational Education - Basic Grants to States (CFDA 84.048) Questioned Costs: $48,930.95 Finding Control Number: FA-824-98-01 Auditor's Note: The Department ofAudits does not believe that this finding is resolved. This belief is based on our determination that the cited U. S. Department of Education communication which addressed conditions at another Technical fustitute, is not applicable in this situation. We continue to believe that the expenditure of Perkins funds for personnel service costs specifically for the operation ofthe Student Financial Aid office is not an allowable activity that conforms with the Act and 34 CFR 403.111 (c) and (d). We also believe these expenditures are not in compliance with "supplant versus supplement" requirements included in 34 CFR 403.196. We concur that the U. S. Department of Education will make final resolution of this finding. However, resolution of the finding and related questioned costs should be based solely on circumstances surrounding the expenditure ofthe Perkins funds at Augusta Technical fustitute.
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