Augusta Technical College, Augusta, Georgia, independent accountant's report on applying agreed-upon procedures for the fiscal year ended June 30, 2007

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
I
AUGUSTA TECHNICAL COLLEGE AUGUSTA, GEORGIA
INDEPENDENT ACCOUNTANTS REPORT ON APPLYING AGREED-UPON PROCEDURES
FOR THE FISCAL YEAR ENDED JUNE 30, 2007
Russell W. Hinton State Auditor

AUGUSTA 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
November 9, 2007

Members of the State Board Technical and Adult Education Members ofthe Local Board of Directors
and Honorable Terry Elam, President Augusta 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 Technical College and the Administrative Central Office (Oversight Unit) ofthe Department ofTechnical and Adult Education, solely to assist you in assessing the accuracy of the annual financial statement information reported to the Administrative Central Office by the Technical College for inclusion in the State of Georgia'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 ofCertified Public Accountants. The sufficiency ofthese procedures is solely the responsibility of the parties specified in this report. Consequently, we make no representation regarding the sufficiency of the 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 Technical College's general ledger.
We did not note any exceptions as a result of our procedures.
2. Obtain the Technical College's GAAP basis worksheets for Statement of Net 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 Technical College's accounting records.
We did not note any exceptions as a result of our procedures.

3. Obtain the Technical 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 Technical College's year end GAAP basis journal entries. Obtain documentation for GAAP journal entries and confirm that the entries were posted to the Technical College's annual financial statement worksheets.
The year end GAAP entry related to deferring revenue associated with encumbrances was not made correctly. The deferred revenue amount of $1,212,371.34 was incorrectly debited to Capital Grants and Gifts - State. This amount should have been debited to Nonoperating Gifts revenue. This exception was corrected by the Technical College and GAAP Basis Financial Statements were resubmitted to the Georgia Department of Technical and Adult Education.
5. Confirm that State Appropriation revenues, receivables and remittances ofprior year surplus balances have been properly recorded in the Technical 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.
We did not note any exceptions as a result of our procedures.
6. Obtain listing ofwrite-offrequests for accounts receivable less than $3,000.00 for fiscal year 2007. Confirm that these write-off requests have been approved by the State Accounting Officer and have been posted to the Technical College's financial statements.
We did not note any exceptions as a result of our procedures.
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 reconciles to amounts recorded in the Technical College's financial statements.
We did not note any exceptions as a result of our procedures.

8. Review the year end Budgetary Statements including the Budget Comparison and Surplus Analysis Report (Exhibit A). Confirm that budget information presented in these statements supports activity reported in the Technical College's accounting records and determine ifany budget overexpenditures exist.
Budget information presented did not agree to the budgetary amounts reported by the Georgia Department of Technical and Adult Education. State Appropriations of $15,623.17 were reported as local funds in error. This error was corrected by the Technical College to properly report State Appropriations of$15,188,999.01 on the Budget Comparison and Surplus Analysis Report. The revised Budget Basis Financial Statements were resubmitted to the Georgia Department of Technical and Adult Education.
Carry-Over from Prior Year was improperly reported as $1,033,122.36. This amount should have been reported as $1,154,112.36, resulting in a reporting error of $120,990.00. This error was corrected by the Technical College and the Budget Basis Financial Statements were resubmitted to the Georgia Department of Technical and Adult Education.
9. Obtain documentation for Budget basis reserves reported by the Technical College on the Budget Comparison andSurplus Analysis Report (Exhibit A). Confirm that the reserves are properly documented, valid and appropriate.
The Technical College improperly reported Surplus as $10,971.91. Surplus should have been reported as $10,613.08 and Federal Financial Assistance Reserve should have been reported as $358.83. This exception was corrected by the Technical College and Budget Basis Financial Statements were resubmitted to the Georgia Department of Technical and Adult Education.
10. Review the H.O.P.E. Scholarship Program reconciliation between the Technical 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 Technical College's financial records.
We did not note any exceptions as a result of our procedures.
11. Review the Schedule of Expenditures of Federal Awards information submitted by the Technical College for inclusion in the Statewide Single Audit. Confirm that the information is properly presented and supported by the Technical College's accounting 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 of which 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.
Respectfully submitted,
s:)~QQ u9.4~ ~len w. Hinton, CPA, CGFM State Auditor
RWH:as

EXHIBIT

AUGUSTA TECHNICAL COLLEGE BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT
YEAR ENDED JUNE 30, 2007

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 Economic Development Technical Education
Total Expenditures
Excess of Funds Available over Expenditures
FUND BALANCE JULY 1
Reserved Unreserved
ADJUSTMENTS
Prior Year Payables/Expenditures Prior Year Receivables/Revenue Unreserved Fund Balance (Surplus) Returned
to Georgia Department of Technical and Adult Education Year Ended June 30, 2006
Refunds to Granters Federal Financial Assistance Other
Prior Year Reserved Fund Balance Included in Funds Available
FUND BALANCE JUNE 30
SUMMARY OF FUND BALANCE
Reserved Federal Financial Assistance Local Grants and Contracts Live Works Projects Continuing Education Sales and Services Technology Fees Inventories
Total Reserved
Unreserved Surplus
Total Fund Balance

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 15,188,999.01 $ 15,188,999.01 $

2,595,639.51

2,292,760.55

7,077,645.76

6,844,163.36

$ 24,862,284.28 $ 24,325,922.92 $

0.00 -302,878.96 -233,482.40
-536,361.36

0.00

1,154,112.36

$ 24,862,284.28 $ 25,480,035.28 $

1,154,112.36 617 751.00

$ 1,138,844.83 $ 1,071,637.67 $

315,823.17

232,655.57

23,407,616.28

22,731,160.07

$ 24,862,284.28 $ 24,035,453.31 $

$

0.00 $ 1,444,581.97 $

67,207.16 83,167.60 676,456.21
826,830.97
1444 581.97

1,801,899.39 9,552.63

5,943.91 -15,806.39
-9,552.63
-14,065.39 -1, 154,112.36 $ 2,068,441.13

$

358.83

-57.36

25,678.03

-50,422.29

1,146,694.91

236,871.08

698,704.85

$ 2,057,828.05

10,613.08

$ 2,068,441.13