Audit report, state of Georgia, Carroll Technical Institute, Carrollton, Georgia, year ended June 30, 1996

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STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

AUDIT REPORT STAlE OF GEORGIA CARROLL lECHNICAL INSTITUTE CARROLLTON, GEORGIA YEAR ENDED JUNE 30,19%

CARROLL TECHNICAL INSTITUTE - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON 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" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

8

E

"B" LOTTERY FOR EDUCATION

9

F NOTES TO THE FINANCIAL STATEMENTS

10

SUPPLEMENTARY INFORMATION

G COMBINING BALANCE SHEET (STATUTORY BASIS)

BUDGET FUND

26

H COMBINING STATEMENT OF CHANGES IN FUND BALANCE

(STATUTORY BASIS)

BUDGET FUND

27

I COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

28

J COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

FIDUCIARY FUND TYPE - AGENCY FUNDS

31

SCHEDULES

1 CASH AND CASH EQUIVALENTS

32

2 SCHEDULE OF FEDERAL REVENUES

33

3 RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL

34

CARROLL 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, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly ofGeorgia Members ofthe State Board ofTechnical and Adult Education Members of the Local Board ofDirectors
and Honorable Janet Ayers, President Carroll Technical Institute
INDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the accompanying financial statements (Exhibits A through F) of Carroll Technical Institute as ofand for the year ende<;l June 30, 1996. These financial statements are the responsibility of the Institute's management. Our responsibility is to express an opinion on these financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our oplDlon.
We did not observe the taking of resale inventory at June 30, 1996, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
As described in Note I, 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.
In our opinion, except for the effect of such adjustments, if any, on the Budget Fund as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the resale inventory as described in the third paragraph, the financial statements referred to above present fairly, in all material
96ARL-3TX

respects, the financial position (statutory basis) of Carroll Technical Institute as of June 30, 1996, and the results of its operations (statutory basis) for the year then ended, on the basis of accounting described in Note 1.
Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplementary information (Exhibits G through J and Schedules 1 through 3) is presented for purposes of additional analysis and is not a required part of the financial statements of Carroll Technical Institute. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, except for the effects of the matter referred to in the third paragraph, such information is fairly presented in all material respects in relation to the financial statements taken as a whole.
Respectfully submitted,

CLV:cm 96ARL-3TX

Claude L. Vickers State Auditor

FINANCIAL STATEMENTS - 1-

CARROLL TECHNICAl.INST!IUTE
COMBINED BAWtE SHEET (STATUTORY BASIS>
ALL FUND D'PES AND ACCOUNT GROUPS
JUNE 30, 1996

EXHIBIT "A"

The notes to the financial statements are an integral part of this statement. 2-

CARROLL TECHNICAL INSTITUTE STATEMENT OF CHANGES IN FUND BALANCE (STATUTORY BASIS)
GOVERNMENTAL FUND TYPE YEAR ENDED JUNE 30. 1996

EXHIBIT"B"

The notes to the financial statements are an integral part of this statement.
-3-

CARROLL TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1996

EXHIBIT"C"

FUNDS AVAILABLE
REVENUES
STATE FUNDS Allotment from Georgia Department of Technical and Adult Education - Administrative Central Office
FEDERAL REVENUES (See Schedule)
OTHER REVENUES RETAINED Allotments From Georgia Department of Technical and Adult Education - Administrative Central Office Construction Reserve Trust Fund Contracts Georgia Department of Human Resources Georgia Chad Care Council PEACH Project Georgia Institute of Technology Satellite Technology Program Georgia Statewide Academic and Medical Systems Programs Interactive Network Fees Application Graduation Registration/Continuing Education Testing Other Interest Earned Reimbursements from Various Sources Rents Sales and Services (Net) Tuition Other Sources
Total Other Revenues Retained
Total Revenues
CARRY-OVER FROM PRIOR YEAR
Transfer from Reserved Fund Balance Uve Work Projects Private Grants
Total Carry-Over from Prior Year

TOTALS YEAR ENDED JUNE 30, 1996 . JUNE 30,1995

$ 6,101,211,00 $ 5,274,518.71 $ 1,227,882,04 $ 1,105,793.89

$ 339,388.00 $

0.00

10,382.59 49,140.70

0.00 53,323,54

5,714.35

23,200.00

3,626.11

16,970,00

36,873.29 2,877,02 189,139.05 16,135.00 52,304.92 33,564.27 5,993,97 23,212.32 157,085,91 1,086,264,89 31,078.90

26,619,00 2,448.23 138,891.37 10,696.00 6,658,48 .
6,818.88 0.00 0.00
94,681.60 796,938,74
3,024,54

$ 2,042,781.29 $ 1,180,270,38

$ 9,371,874.33 $ 7,560,582,98

$

64,514,06 $

51,237.54

3,441.35

0,00

$

67,955.41 $

51,237,54

Total Funds Available

$ 9,439,829,74 $ 7,611,820.52

The notes to the financial statements are an integral part of this statement. -4-

CARROLL TECHNICAl INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1996

EXHIBIT"C"

EXPENDITURES
PERSONAL SERViCES-INSTITUTIONS
Salaries and Wages Employer's Contributions for:
F.I.CA. Retirement Health Insurance Uability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
OPERATING EXPENSES-INSTITUTIONS
Other Costs Motor Vehicle Expenses SuppNes and Materials Repairs and Maintenance Utilities Rents (Other than Real Estate) Insurance and Bonding Other Operating Expenses Extraordinary Expenditures PubNcations and Printing
Travel Motor Vehicle Purchases Equipment
Equipment Purchases LeaselPurchase of Equipment Rental of Equipment Computer Charges Other Costs
Supplies and Materials Repairs and Maintenance Software Real Estate Rentals Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Contracts
ADULT LITERACY GRANTS
Personal Services Salaries and Wages Employer's Contributions for: F.I.CA. Retirement
The notes to the financial statements are an integral part of this statement.
-5-

TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

$ 4,386,080.64 $ 3,380,168.65

96,115.96 488,534.21 504,314.77
27,977.00 1,908,00 6,281.00

82,151.75 376,423,94 386,584.22
19,623.00 1,672,00
39,917.00

$ 5,511,211.58 $ 4,286,540.56

$

10,087.10 $

11,791.28

572,542.56

371,374.94

201,348.72

26,046.07

197,137.03

124,720.22

359.00

0.00

4,149.00

2,831.00

167,009.89

266,738.65

10,317.50

0.00

99,886.86

45,531.61

50,302.66

54,863;21

21,555.00

0.00

433,247.42 47,045.95 627,06

407,881.92 39,433.00 730.28

0.00 0.00 88,308,79 3,120.00 67,543,90

31,815.56 9,522.44
104,935.78 14,350,00
37,521.76

35,312.06 96,195.82

28,572.50 12,410.01

$ 2,106,096.32 $ 1,591,070.23

$ 505,135.42 $ 490,044.86

15,477,88 22,907,61

14,494.05 20,151.66

CARROLL TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30,1996

EXHIBIT"C"

EXPENDITURES
ADULT LITERACY GRANTS
Personal Services Employer's Contributions for: Health Insurance Uability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
Other Costs Supplies and Materials Insurance and Bonding Repairs and Maintenance Rents (Other than Real Estate) Utilities Other Operating Expenses
Travel Equipment
Equipment Purchases Computer Charges
Software Telecommunications Per Diem, Fees and Contracts
Per Diem and Fees Contracts
JOB TRAINING PARTNERSHIP ACT
Personal Services Salaries and Wages Employer's Contributions for: F.I.CA. Retirement Health Insurance Uability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
Other Costs Supplies and Materials Utilities Other Operating Expenses Publications and Printing
Travel Real Estate Rentals Telecommunications Per Diem, Fees and Contracts
Per Diem and Fees
The notes to the financial statements are an integral part of this statement.
-6-

TOTALS YEAR ENDED JUNE 30,1996 JUNE 30,1995

$

22,873.15 $

19,835.80

1,110.00

1,055.00

84.00

105,00

270.00

2,435.00

80,407.01 0.00
75,00
0.00 3,414.98 27,091.48 11,540.06

106,572.52 30.00 0.00
625.00 0.00
35,236,92 10,887.96

45,948,41

15,567.41

3,453.00 138.80

3,283.50 0,00

1,150.40 701.25

0,00 2,600,00

741 ,778.45 $ 722,924,68

$ 184,319,00 $
5,834,79 21,708.87 21,967,42
925.00 70.00
225.00
4,423.15 1,964,71 197,053.83
153.36 2,955.94 1,327.50 1,246.77
1,706.00
445,881.34 $

50,427.32
1,075,73 4,756.21 5,090.46
0,00 0,00 0.00
145,00 0.00
8,112,55 0.00
1,377,43 5,310,00
0,00
0.00
76,294.70

CARROLL TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30,1996

EXHIBIT"C"

EXPENDITURES
EQUIPMENT-TECHNICAL INSTITUTES
Equipment Equipment Purchases
Computer Charges Equipment Equipment Purchases
REPAIRS AND RENOVATIONS
Other Costs Repairs and Maintenance
Equipment Equipment Purchases
Per Diem, Fees and Contracts Per Diem and Fees
Total Expenditures
Excess of Funds Available over Expenditures

TOTALS YEAR ENDED JUNE 30,1996 JUNE 30,1995

$ 189,826,59 "$ 835,724.27

0.00

8,103.96

$ 189,826.59 $ 843,828,23

$

39,125.37 $

10,611.71

287,465.00

0,00

12,797.50

0,00

$ 339,387.87 $

10,611.71

$ 9,334,182.15 $ 7,531,270.11

105,647.59

80,550.41

$ 9,439,829.74 $ 7,611,820.52

The notes to the financial statements are an integral part of this statement.
-7-

CARROLL TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION YEAR ENDED JUNE 30. 1996

EXHIBIT"D"

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

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 5,911,321.00 $ 5,911,321.00 $

1,485,475.00

1,227,882.04

2,249,128.00

1,703,393.29

$ 9,645,924.00 $ 8,842,596.33 $

0.00 -257,592.96 -545,734.71
-803,327.67

0.00

67,955.41

67,955.41

$ 9,645,924.00 $ 8,910,551.74 $ _ _~-7..;..35.;..:.,3....;.7.;;;;.2'..;..26_

EXPENDITURES
Personal Services-Institutions Operating Expenses-Institutions Adult Literacy Grants Job Training Partnership Act

$ 5,866,649.00 $ 5,511,211.58 $

2,330,416.00 2,106,096.32

831,281.00

741,778.45

617,578.00

445,881.34

355,437.42 224,319.68
89,502.55 171,696.66

Excess of Funds Available over Expenditures

$ 9,645,924.00 $ 8,804,967.69 $ - - - -84"0,9-56-.31-

$

105,584.05 $ =======1=05~,5=8=4=.0=5

The notes to the financial statements are an integral part of this statement. -8-

CARROLL TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"B" LOTIERY FOR EDUCATION YEAR ENDED JUNE 30, 1996

EXHIBIT"E"

EXPENDITURES Equipment-Technical Institutes Repairs and Renovations
Excess of Funds Available over Expenditures

$ 529,278.00 $ 529,278.00 $

~O.;,;;.OO.:..

$ 189,890.00 $ 189,826.59 $

339,388.00

339,387.87

63.41 0.13

$ 529,278.00 $ 529,214.46 $

. . .; 6. .;.,;3.;,; .54.;.

$

63.54 $ =====6=3=.5==4

The notes to the financial statements are an integral part of this statement.
-9-

CARROLL TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXlllBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Carroll Technical Institute is one of twenty-nine (29) State supported member institutes of postsecondary education in Georgia which comprise the Georgia Department of Technical and Adult Education, an organizational unit ofthe State ofGeorgia. The accompanying financial statements reflect the operations of Carroll 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 ofTechnica1 and Adult Education. Appropriation of State funds is made to the Georgia Department ofTechnica1 and Adult Education by the General Assembly of Georgia. The Department's Administrative Central Office determines the amount ofState funds to be received by Carroll Technical Institute. The Institute does not have authority to retain unexpended State funds (surplus) for any given fiscal year. Accordingly, Carroll Technical Institute is considered an organizational unit of the Georgia Department ofTechnical and Adult Education for financial reporting purposes because of the significance of its 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 Carroll Technical Institute uses funds and account groups to report on its financial position and the results of its 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. Fundaccounting 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 1995-1996. This fund also includes operations from various institutional services provided to students, facWty, and/or staff which 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 defined 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-

CARROLL TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 3D. 1996

EXIllBIT "F"

NOTE 1: 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 if historical 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 of the assets are included in the General Fixed Assets Account Group.
GENERAL LONG-TERM DEBT - The account group used to report the noncurrent portions ofcertain governmental long-term 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 ofcurrent financial resources measurement focus. With 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 prescribed or permitted by statutes and regulations of the State of Georgia, the Budget Fund returns its unreserved fund balance (surplus) to the Administrative Central Office of the Department of Technical and Adult Education for remittance to the Office ofTreasury 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 of accounting. 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.

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CARROLL TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPE BUDGET FUND
Contractual obligations for goods and services which have not been received 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 part, on the unexecuted portion of contracts for goods and services. The recognition ofencumbrances as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regUlations ofthe State of Georgia, 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.
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 ofGeorgia, 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 1995-1996. 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.
CASH AND CASH EQUIVALENTS Cash and Cash Equivalents include currency on hand and demand deposits with banks.
ACCOUNTS RECEIVABLE Accounts receivable consist ofreimbursements 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).
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CARROLL TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

INVENTORIES Inventories ofgoods for resale are recorded as assets at cost at the time of purchase. The Institute uses the first-in, first out method in costing-out inventories based on sales.

RESERVED FUND BALANCE Reserves represent those portions offund 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:

FEDERAL FINANCIAL ASSISTANCE REFUND TO GEORGIA DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE
Carroll Technical Institute receives Federal funds for the Adult Education Act and the Carl D. Perkins Vocational and Applied Technology Education Act, and the Job Training Partnership Act through the Georgia Department ofTechnical and Adult Education - Administrative Central Office. As provided by the respective budget allocation to the Institute, these funds were required to be expended by June 30, 1996. At June 30, 1996, the following programs had unexpended Federal funds which should be refunded to the Administrative Central Office:

Adult Education Act Adult Education
Carl D. Perkins Vocational and Applied Technology Education Act Vocational Education - Basic Grants to States
Job Training Partnership Act

$ 824.46
2,960.12 1.059.27

$ 4.843.85

EXPIRED GRANT BALANCES Expired grant balances represent the unexpended balance ofFederal financial assistance, other than through the Georgia Department ofTechnical and Adult Education - Administrative Central Office, remaining after the expiration ofthe Federal program/project. This amount is refundable to the applicable grantor.

INVENTORIES Reported inventories (resale), under the consumption method, are offset by a portion of State funds reserved to provide working capital for managing a reasonable level of inventories for resale.

LIVE WORK PROJECTS In accordance with the Official Code of Georgia Annotated Section 20-4-14(c), the accumulated balance ofunexpended funds derived from student live work projects. This amount is restricted to expenditures for live work projects or for the benefit of instructional programs at the technical institute in subsequent fiscal years.
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CARROLL TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXIllBIT "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, remaining after the expiration ofthe program/contract. This amount is refundable to the applicable grantors.
PRIVATE GRANTS The unexpended balance ofprivate grants which is restricted for expenditure in future years for the specific purposes as designated by the grantors.
UNRESERVED FUND BALANCE In accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, the Budget Fund's unreserved fund balance is returned to the Georgia Department ofTechnical and Adult Education - Administrative Central Office for remittance to the Office ofTreasury and Fiscal Services in the subsequent fiscal year as surplus, as fo~ows:
REGULAR - An amount ofunexpended regular appropriations designated for reappropriation by the State in subsequent years.
WTTERY FOR EDUCAnON - An amount ofunexpended lottery appropriations designated for future reappropriation by the State for Lottery for Education.
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 annual and compensatory 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 of annual 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" because they do not represent consolidated financial information and 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.

- 14 -

CARROLL TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXIllBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
COMPARATIVE DATA Comparative total data for the prior year have been presented in selected sections of the accompanying
financial 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.
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 anyone or more ofthe following securities as enumerated in the Official Code ofGeorgia Annotated Section 50-17-59:
(1) Bonds, bills, certificates ofindebtedness, notes, or other direct obligations ofthe United States or ofthe State ofGeorgia.
(2) Bonds, bills, certificates ofindebtedness, notes, or other obligations ofthe counties or municipalities ofthe State of Georgia.
(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 ofdevelopment authorities created by the laws of the 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, or debt obligations issued by the Fedenil 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 of accounts provided by the Federal Deposit Insurance Corporation.
As authorized in the Official Code of Georgia Annotated Section50-I7-53, the State Depository Board has adopted policies which allow agencies ofthe State of Georgia (which include technical institutes) the option of exempting demand deposits from the collateral requirements.

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CARROLL TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT "F"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS

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 ofJune 30, 1996, 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 agept 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.

Canying Amount

Bank Balances

Risk Categories

2

3

Cash Deposits

$ 657 J35 59 $ J325 95Q 66 $ Joo 000,00 $====Q~oo~ $ ),225 95Q 66

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 fiscal year:

Balance July 1, 1995 Additions Deductions Balance June 30, 1996

$ 2,322,073.58 1,860,459.60 70.548.55
$ 4.111.984.63

NOTE 4: GENERAL LONG-TERM DEBT

CHANGES IN GENERAL LONG-TERM DEBT During the year ended June 30, 1996, the following changes occurred in the compensated absences liability reported in the General Long-Term Debt Account Group:

- 16-

CARROLL TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT "F"

NOTE 4: GENERAL LONG-TERM DEBT

CHANGES IN GENERAL LONG-TERM DEBT Balance July 1, 1995
Additions Annual Leave Earned and Utilized (Net) Salaries and W~es Salary-Related Fringe Benefits
Balance June 30, 1996
NOTE 5: RISK MANAGEMENT

$ 260,002.31
54,189.95 1.133.83
$ 315.32609

Public Entity Risk Pool The State Personnel Board - Merit System ofPersonnel Administration administers for the State of Georgia a program ofhealth benefits for the employees ofunits ofgovernment of the State of Georgia, 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' contributions paid by the various units of government participating in the plan, and appropriations made by the General Assembly of Georgia. 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 processes 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 of commercial 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 various state organizations 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 of Georgia and county health departments, permits such employees to defer a portion oftheir salary 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

- 17 -

CARROLL TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT "F"

NOTE 6: DEFERRED COMPENSATION PLAN
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 information relative to the plan will be presented in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1996.
NOTE 7: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Plan Description Carroll Technical Institute participates in the Teachers Retirement System ofGeorgia (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 of Georgia. The Institute's payroll for the year ended June 30, 1996, for employees covered by TRS was $3,715,925.29. The Institute's total payroll for all employees was $5,075,535.06.
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 of age, 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 of creditable service up to 40 years. Any member who has between 25 and 30 years of creditable service and is at least 55 years ofage shall receive a benefit which is reduced by the lessor of 1/12 of 7% for each month the member is below age 60, or by 70./0 for each year or fraction thereofby which the member has less than 30 years of service. The normal 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 10 years of service) and compensation up to the date ofdeath or up to the time of disability.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.

- 18 -

CARROLL TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT "F"

NOTE 7: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

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 1996, 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 1996 amounted to $624,652.43, of which $438,850.49 was made by the Institute and $185,801.94 was made by employees. These contributions represented 11.81% (Institute) and 5% (employees) of covered payroll.

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, 1995, which was the latest information

available, was as follows:

.

Total pension benefit obligation

$ 17,442,607,000.00

Net assets available for benefits, at cost

15,857,066,000.00

Unfunded pension benefit o1?ligation

$ 1.585.541.000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1995. Net assets available for benefits were v8Iued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

Retirement System Contributions Total contributions from all employers to TRS for the year ended June 30, 1996, were $607,274,559.00. The Institute's contribution for the year ended June 30, 1996, of $438,850.49 was actuarially determined and represented .0723% oftotal contributions made by all participating employers.

- 19-

CARROLL TECHNICAL INSTITUTE
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT "F"

NOTE 7: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Trend Information Historical trend information is presented in the TRS June 30, 1996, financial report. This information gives an indication ofthe progress made in accumulating sufficient assets to pay benefits when due.
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Plan Description Carroll Technical Institute participates in the Employees' Retirement System of Georgia (ERS), a singleemployer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances for employees ofthe State of Georgia. The Institute's payroll for the year ended June 30, 1996, for employees covered by ERS was $610,058.48. The Institute's total payroll for all employees was $5,075,535.06.
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.
Under both the old plan and new plan, 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 of age 65. 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 of age.
Retirement benefits paid to members are based upon a formula which considers the monthly average ofthe member's highest eight consecutive calendar quarters of salary, the number ofyears of creditable service, and .the member's age at retirement. Postretirement cost-of-living adjustments are &Iso 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.
Contributions Required and Contributions Made As established by State statute, all full-time employees ofthe State of Georgia and its political subdivisions, who are not members ofother state retirement systems, are eligible to participate in the ERS. Both employer and employee contributions are established by State statute.
Under the old plan, member contributions consist of employee contributions paid by the employee of 1.25% ofcompensation and 4.75% ofcompensation paid by the Institute on behalf ofthe employee. Under the new plan, member contnbutions consist solely of 1.25% ofcompensation paid by employee. The Institute also is
- 20-

CARROLL TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT "F"

NOTE 7: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Contributions Required and Contributions Made required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation. For the year ended June 30, 1996, the ERS employer contribution rate for the Institute amounted to 14.890/0 ofcovered payroll and included the 4.75% contributed on behaIfofthe employee under the old plan referred to above. The employer contributions are projected to liquidate the unfunded actuarial liability within 20 years based upon the actuarial valuation of June 30, 1995. Employer contributions are also made on amounts paid for accumulated leave to retiring employees.
Actuarial assumptions used by the ERS to compute actuarially determined contribution requirements are the same as those used to compute the pension benefit obligation.
Total contributions to the plan made during fiscal year 1996 amounted to $98,456.41, of which $90,830.69 was made by the Institute and $7,625.72 was made by employees. These contributions met the requirements ofthe plan.
Funding Status and Progress Funding status and progress information is presented in the ERS June 30, 1996, financial report which may be obtained through ERS.
Trend Information Historical trend information is presented in the ERS June 30, 1996, financial report which may be obtained through ERS. This information gives an indication ofthe progress made in accumulating sufficient assets to pay benefits when due.
GEORGIA DEFINED CONTRIBUTION PLAN
Plan Description Carroll Technical Institute participates in the Georgia Defined Contribution Plan (GDCP) which is a singleemployer defined contribution plan established by the General Assembly of Georgia for the purpose of providing retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees of the Employees' Retirement System of Georgia. The Institute's payroll for the year ended June 30, 1996, for employees covered by GDCP was $479,827.88. The Institute's total payroll for all employees was $5,075,535.06.
Benefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board of Trustees. If a member has less than $ 3,500.00 credited to hislher account, the Board of Trustees has the option of requiring a lump
- 21 -

CARROLL TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30.1996

EXlDBIT "F"

NOTE 7: RETIREMENT PLANS
GEORGIA DEFINED CONTRIBUTION PLAN
Benefits sum distribution to the member in lieu ofrnaking periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to hislher 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 termination of employment, the amount ofthe member's account is refundable upon request by the member.
Total contributions made by employees during fiscal year 1996 amounted to $35,987.86 which represents 7.5% of covered payroll. These contributions met the requirements ofthe plan.
NOTE 8: LEAVB 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 of ninety 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 of Georgia.
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 of capital outlay projects. During the fiscal year ended June 30, 1996, the Georgia State Financing and Investment Commission paid $1,278,131.40 to various vendors for approved projects for the benefit of Carroll Technical Institute.

- 22-

CARROLL TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT "FI!

NOTE 10: 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 Carroll Technical Institute (as an organizational unit of the Department ofTechnical and Adult Education), ifany, are generally considered to be actions against the State ofGeorgia. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State ofGeorgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1996.
NOTE 11: BONDING INFORMATION
The President and all employees ofCarroll Technical Institute were bonded under a Public Employees Blanket Bond written by the Employers Insurance ofWausau, their Bond No. 1450-02-110723, on which the premium was paid to October 1, 1996. Under this agreement, the public employee dishonesty coverage insured Carroll Technical Institute to a maximum of$I,OOO,OOO.OO against loss sustained through fraudulent or dishonest acts by its employees. The faithful performance of duty coverage insured 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 of Carroll Technical Institute were also bonded under Commercial Crime Policies written by the United States Fire Insurance Company, their Policy Nos. 6260116752 and 626 012294 4, on which the premiums were paid to October 1, 1996. Under these additional public employee dishonesty coverages, the policies insured the Institute to a maximum of $9,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees and from failure ofits employees to perform faithfully.

- 23 -

I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I
I

SUPPLEMENTARY INFORMAnON - 25 -

CARROLL TECHNICAL INSTITUTE COMBINING BALANCE SHEET (STATUTORY BASIS)
BUDGET FUND JUNE 30.1996

EXHIBIT"G"

ASSETS Cash and Cash Equivalents Accounts Receivable
Federal Financial Assistance Other
Inventories
Total Assets

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTIERYFOR
EDUCATION

TOTAL

$

368,501.92 $

207,798.55 $

576,300.47

$

88,918.43

100,731.72

$

189,650.15

$

158,381.24

$

88,918.43

100,731.72

$

189,650.15

$

158,381.24

$

716,533.31 $

207,798.55 $

924,331.86

LIABILITIES AND FUND EQUITY
Liabilities Accounts Payable Salaries Payable Deferred Revenue Tuition and Fees
Total Liabilities
Fund Equity Fund Balance Reserved Federal Financial Assistance For Refund to Georgia Department of Technical and Adult Education Administrative Central Office For Expired Grant Balances Inventories Live Work Projects State Grants and Contracts Private Projects For Refund to Grantor Agency Unreserved Designated SurplUS Regular Lottery for Education
Total Fund Equity

$

516,373.71 $

206,432.47 $

722,806.18

2,403.74

2,403.74

39,954.00

39,954.00

$

558,731.45 $

206,432.47 $

765,163.92

$

4,843.85

2,289.13

61,940.88

81,933.18

1,135.28

45.31

$

4,843.85

2,289.13

61,940.88

81,933.18

1,135.28

45.31

5,614.23 $

1,366.08

5,614.23 1,366.08

$

157,801.86 $

1,366.08 $

159,167.94

Total Liabilities and Fund Equity

$

716,533.31 $

207,798.55 $

924,331.86

See notes to the financial statements.

- 26 -

CARROLL TECHNICAL INSTITUTE COMBINING STATEMENT OF CHANGES IN FUND BALANCE (STATUTORY BASIS)
BUDGET FUND YEAR ENDED JUNE 30,1996

EXHIBIT"H"

IIAU
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

"S" LOTIERYFOR
EDUCATION

FUND BALANCE - JULY 1

Reserved Unreserved
Designat~d
Surplus

$

138,012,13

14,132.52 $

$ 258.74

$

152,144.65 $

258.74 $

ADDITIONS

Adjustments to Prior Year's Accounts Payable Excess of Funds Available over Expenditures
Exhibit "I"

$

9,503.41 $

1,302.54 $

105,584.05

63.54

$

115,087.46 $

1,366.08 $

DEDUCTIONS

Unreserved Fund Balance (Surplus)

Returned to Georgia Department of Technical and

Adult Education - Administrative Central Office

Year Ended June 30, 1995

$

Adjustments to Prior Year's Accounts Receivable

Refunds to Grantors

Georgia Department of Technical and Adult

Education - Administrative Central Office

Federal Financial Assistance

Bremen City School System

Tech Prep Program

Georgia Statewide Academic and Medical Systems Programs

Interactive Network

Georgia Institute of Technology

Satellite Technology Program

Reserved Fund Balance Carried Over from

Prior Year as Funds Available

14,132.52 $ 19,309.31
2,824.64 375.99
4,197.63 634.75
67,955.41

258.74 $

$

109,430.25 $

258.74 $

FUND BALANCE - JUNE 30

(To Exhibit "G")

$

157,801.86 $

1,366.08 $

TOTAL
138,012.13 14,391.26
152,403.39
10,805.95 105,647.59 116,453.54
14,391.26 19,309.31
2,824.64 375.99
4,197.63 634.75
67,955.41 109,688.99
159,167.94

See notes to the financial statements.

- 27 -

CARROLL TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30.1996

EXHIBIT "I"

FUNDS AVAILABLE
REVENUES
STATE FUNDS Allotment from Georgia Department of Technical and Adult Education Administrative Central Office
FEDERAL REVENUES
OTHER REVENUES RETAINED Allotments from Georgia Department of Technical and Adult Education Administrative Central Office Construction Reserve Trust Fund Contracts Georgia Department of Human Resources Georgia Child Care Council PEACH Project Georgia Institute of Technology Satellite Technology Program Georgia Statewide Academic and Medical Systems Programs Interactive Network Fees Application Graduation Registration/Continuing Education Testing Other Interest Earned Reimbursements from Various Sources 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 Private Grants
Total Carry-Over from Prior Year
Total Funds Available

"A"
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

"B"
LOTIERYFOR EDUCATION

TOTAL

$

5,911 ,321 .00 $ 189,890.00 $ 6,101,211.00

$

1,227,882.04

$ 1,227,882.04

$ 339,388.00 $ 339,388.00

$

10,382.59

49,140.70

10,382.59 49,140.70

5,714.35

5,714.35

3,626.11

3,626.11

36,873.29 2,8n.02
-189,139.05 16,135.00 52,304.92 33,564.27 5,993.97 23,212.32
157,085.91 1,086,264.89
31,078.90

36,873.29 2,8n.02
189,139.05 16,135.00 52,304.92 33,564.27 5,993.97 23,212.32
157,085.91 1,086,264.89
31,078.90

$

1,703,393.29 $ 339,388.00 $ 2,042,781.29

$

8,842,596.33 $ 529,278.00 $ 9,371,874.33

$

64,514.06

3,441.35

$

67,955.41

$

64,514.06

3,441.35

$

67,955.41

$

8,910,551.74 $ 529,278.00 $ 9.439,829.74

EXPENDITURES
PERSONAL SERVICES-INSTITUTIONS
Salaries and Wages Employer's Contributions for:
F.I.CA Retirement
See notes to the financial statements.

- 28 -

$

4,386,080.64

96,115.96 488,534.21

$ 4,386,080.64
96,115.96 488,534.21

CARROLL TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1996

EXHIBIT "I"

EXPENDITURES
PERSONAL SERVICESINSTITUTIONS
Employer's Contributions for: Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
OPERATING EXPENSES-INSTITUTIONS
Other Costs Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Rents (Other than Real Estate) Insurance and Bonding Other Operating Expenses Extraordinary Expenditures Publications and Printing
Travel Motor Vehicle Purchases Equipment
Equipment Purchases LeaselPurchase of Equipment Rental of Equipment Computer Charges Software Real Estate Rentals Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Contracts
ADULT LITERACY GRANTS
Personal Services Salaries and Wages Employer's Contributions for: F.I.C.A. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
Other Costs Supplies and Materials Repairs and Maintenance Utilities Other Operating Expenses
Travel Equipment
Equipment Purchases Computer Charges
Software
See notes to the financial statements.

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTIERYFOR EDUCATION

TOTAL

$

504,314,n

27,Sn.00

1,908.00

6,281.00

$

5,511,211.58

$

10,087.10

572,542.56

201,348.72

197,137.03

359.00

4,149.00

167,009.89

10,317.50

99,886.86

50,302.66

21,555.00

433,247.42 47,045.95 627.06

88,308.79 3,120.00
67,543.90

35,312.06 96,195.82

$

2,106,096.32

29 -

$

505,135.42

15,477.88 22,907.61 22,873.15
1,110.00 84.00
270.00

80,407.01 75.00
3,414.98 27,091.48 11,540.06

45,948.41

3,453.00

$ 504,314.n 27,9n.00
1,908.00 6,281.00
$ 5,511,211.58

$

10,087.10

572,542.56

201,348.72

197,137.03

359.00

4,149.00

167,009.89

10,317.50

99,886.86

50,302.66

21,555.00

433,247.42 47,045.95 627.06

88,308.79 3,120.00
67,543.90

35,312.06 96,195.82

$ 2,106,096.32

$ 505,135.42
15,4n.88
22,907.61 22,873.15
1,110.00 84.00
270.00
80,407.01 75.00
3,414.98 27,091.48 11,540.06
45,948.41
3,453.00

CARROLL TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30,1996

EXHIBIT "I"

See notes to the financial statements.

- 30 -

CARROLL TECHNICAL INSTITUTE COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30.1996

EXHIBIT"J"

FUND

ASSETS! LIABILITIES JULY 1, 1995

ADDITIONS

DEDUCTIONS

ASSETS! LIABILITIES JUNE 30, 1996

General Scholarship Fund

$

6,183.96 $

6,849.40 $

2,565.64 $

10,467.72

HOPE Scholarship Program

726.00

1,140,277.00

1,141,003.00

0.00

Pell Grant Program

45,314.95

377,126.00

422,440.95

0.00

Student Activities Fund

26,850.82

76,807.24

32,359.06

71,299.00

Supplemental Educational Opportunity Grants

0.00

64,780.00

64,780.00

0.00

$

79.075.73 $ 1,665.839.64 $ 1,663,148.65 $ =====8=,::!1,=76=6=.7:::=:2

See notes to the financial statements.

- 31 -

CARROLL TECHNICAL INSTITUTE CASH AND CASH EQUIVALENTS
JUNE 30.1996
INTEREST BEARING ACCOUNTS NationsBank of Georgia, N. A., Carrollton, Georgia
OTHER Cash on Hand Petty Cash

SCHEDULE "1"
$ 657,135.59
700.00
$ 657,835.59

See notes to the financial statements.

- 32-

CARROLL TECHNICAL INSTITUTE SCHEDULE OF FEDERAL REVENUES
YEAR ENDED JUNE 30, 1996

SCHEDULE "2"

BUDGET FUND
Education, U. S. Department of Adult Education - State Administered Basic Grant Program Through Georgia Department of Technical and Adult Education - Administrative Central Office
Federal Work-Study Program Direct
Vocational Education - Basic Grants to States 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 Department of Family and Children Services
Labor, U. S. Department of Job Training Partnership Act Through Atlanta Regional Commission Through Coosa Valley Regional Development Center Through Georgia Department of Technical and Adult Education Administrative Central Office Through Griffin Regional Educational Service Agency Through West Central Georgia Private Industry Council
Trade Adjustment Assistance Through Georgia Department of Labor

CFDA NUMBER

AMOUNT

84.002 $ 271,872.00

84.033

12,197.00

84.048

357,485.00

93.561

79,541.74

17.250 17.250
17.250 17.250 17.250
17.245

132,953.21 90,516.70
100,627.61 222.38
122,547.89
59,918.51

$ 1,227,882.04

See notes to the financial statements.

- 33 -

CARROLL TECHNICAL INSTITUTE RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL
YEAR ENDED JUNE 30.1996

SCHEDULE "3"

Totals per Annual Supplement Accruals
June 30, 1996 June 30, 1995
Totals per Report
SUMMARY BY OBJECT CLASS BUDGET FUND Personal Services-Institutions Adult Literacy Grants Job Training Partnership Act

SALARIES AND WAGES
$ 5,074,023.82 $

TRAVEL
64,798.66

2,403.74 -892.50

$ 5,075,535.06 $ =====6=4,=79=8=:.6:=6

$ 4,386,080.64 $ 505,135.42 184,319.00

50,302.66 11,540.06 2,955.94

$ 5,075,535.06 $ =====6=4,:=79=:8=.6:=6

See notes to the financial statements.

- 34-

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

CARROLL TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30. 1996

STATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR QUESTIONED COSTS

The status ofthe findings disclosed in the audit report for the year ended June 30, 1995, is summarized below:

Audit Control Numbers

Status ofFindings

826-95-01 826-95-02 826-95-03

Corrective Action Implemented Corrective Action Implemented Corrective Action Implemented