East Central Technical College, Fitzgerald, 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
EAST CENTRAL TECHNICAL COLLEGE FlnGERALD, GEORGIA
INDEPENDENT ACCOUNTANTS REPORT ON APPLYING AGREED-UPON PROCEDURES
FOR THE FISCAL YEAR ENDED JUNE 30, 2007
Russell W. Hinton State Auditor

EAST CENTRAL 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 of the Local Board of Directors
and Honorable Ray Perren, President East Central Technical College
Independent Accountant's Report on Applying Agreed-Upon Procedures
Ladies and Gentlemen:
We have performed the procedures enumerated below, which were agreed to by the College and the Administrative Central Office (Oversight Unit) ofthe Department ofTechnical and Adult Education, solely to assist you in assessing the accuracy ofthe annual financial statement information reported to the Administrative Central Office by the College for inclusion in the State of Georgia's Comprehensive Annual Financial Report (CAFR) and Single Audit Report; and to assist you in assessing the accuracy ofbudget basis information provided in the Budget Comparison andSurplus 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 of these 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 College's general ledger.
Cash reported on the financial statements, cash reconciliations and cash note disclosure was not properly reconciled to the College's general ledger due to adjustments of $119,696.77 not being recorded on the general ledger. Bank reconciliations dated June 30, 2007, contained reconciling items which dated back to fiscal year 2004 that were not corrected in a timely manner.

Land, Improvements Other Than Buildings, Equipment, Accumulated Depreciation for Buildings, and Accumulated Depreciation for Equipment reported on the financial statement worksheets and the capital asset note disclosure were not properly reconciled to the College's general ledger resulting in a variance of $1,107,753.60.
2. Obtain the College's GAAP basis worksheets for Statement ofNet Assets and Statement of Revenues, Expenses and Changes in Net Assets (SRECNA) information that was submitted for inclusion in the State's CAFR and Single Audit. Utilizing test scripts, confirm that financial information presented in these worksheets properly support activity reported in the College's accounting records.
We did not note any exceptions as a result of our procedures.
3. Obtain the College's worksheets for financial statement note disclosure information submitted for inclusion in the State's CAFR and Single Audit. Utilizing notes worksheets and other supporting documentation confirm that note disclosures related to Cash, Investments, Accounts Receivable, Capital Assets, Long-Term Debt, Lease Obligations and Retirement Plans have been properly reported.
Cash was not properly reconciled to amounts reported on the financial statements and the cash note disclosure. A variance of $1,692.00 was noted between the bank reconciliations and the amounts reported on the annual financial statements. This caused the cash balance on the Statement of Net Assets (SNA) and the note disclosure to be overstated and the Expenditures on the Statement of Revenues, Expenses and Changes in Net Assets (SRECNA) to be understated.
4. Review the College's year end GAAP basis journal entries. Obtain documentation for GAAP journal entries and confirm that the entries were posted to the College's annual financial statement worksheets.
We did not note any exceptions as a result of our procedures.
5. Confirm that State Appropriation revenues, receivables and remittances ofprior year surplus balances have been properly recorded in the College's financial records. Prior year surplus balances should be netted against State Appropriation revenues in the GAAP basis financial statements; however, prior year surplus balances should be reflected as fund balance adjustments on the Budget basis financial statements.
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 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 College's financial statements.

Salaries reported to the Department ofAudits were not reconciled with amounts recorded in the financial statements. A variance of $1,633.02 was noted.

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 College's accounting records and determine if any budget overexpenditures exist.

We did not note any exceptions as a result of our procedures.

9. Obtain documentation for Budget basis reserves reported by the College on the Budget Comparison and Surplus Analysis Report (Exhibit A). Confirm that the reserves are properly documented, valid and appropriate.

We did not note any exceptions as a result of our procedures.

10. Review the H.O.P.E. Scholarship Program reconciliation between the College and the Georgia Student Finance Commission. Confirm that information reported to the Georgia Student Finance Commission has been reconciled with H.O.P.E. Scholarship activity reported on the College's financial records.

We did not note any exceptions as a result of our procedures.

11. Review the Schedule of Expenditures of Federal Awards information submitted by the College for inclusion in the Statewide Single Audit. Confirm that the information is properly presented and supported by the 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 ofwhich is to express an opinion on the financial statements or a part thereof. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

This report is intended solely for the information and use of the specified users listed above and is not intended to be and should not be used by anyone other than these specified parties.

RWH:as

- *. ~~ Respectfully submitted, Russell W. Hinton, CPA, CGFM State Auditor

EXHIBIT

EAST CENTRAL 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 Grantors Federal Financial Assistance Returned to Georgia Department of Technical and Adult Education Year Ended June 30, 2006
Prior Year Reserved Fund Balance Included in Funds Available
FUND BALANCE JUNE 30
SUMMARY OF FUND BALANCE
Reserved Federal Financial Assistance Live Works Projects PriorYearLocalFunds Continuing Education Sales and Services Technology Fees Uncollectible Accounts Receivable Inventories
Total Reserved
Unreserved Surplus
Total Fund Balance

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 6,389,888.02 $ 6,389,888.01 $

745,735.16

701,158.45

3,081,717.10

2,338,477.38

$ 10,217,340.28 $ 9,429,523.84 $

-0.01 -44,576.71 -743,239.72
-787,816.44

0.00 $ 10,217,340.28 $

393,437.33 9,822,961.17 $

393,437.33 -394 379.11

$

461,920.02 $

438,387.31 $

139,263.92

57,587.29

9,616,156.34

8,985,245.53

$ 10,217,340.28 $ 9,481,220.13 $

$

0.00 $

341,741.04 $

23,532.71 81,676.63 630,910.81
736120.15
341 741.04

519,813.36 3,414.50

99,136.63 1,417.71
-3,414.50

-24.25 -393,437.33

$

568,647.16

$

3,758.87

91,272.43

32,706.28

41,988.64

72,922.12

95,606.07

24,196.30

65,000.00

$

427,450.71

141 196.45

$

568,647.16