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

STATE OF GEORGIA . DEPARTMENT OF AUDITS AND ACCOUNTS GiA A80o
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MANAGEMENT REPORT CARROLL TECHNICAL INSTITUTE
CARROLLTON,GEORGIA
AN ORGANIZATIONAi:. UNIT OF THE STATE OF GEORGIA YEAR ENDED JUNE 30, 2000
Russell W. Hinton State Auditor

CARROLL TECHNICAL INSTITUTE MANAGEMENT REPORT - TABLE OF CONTENTS -

LETTER OF TRANSMITTAL

SECTION I

SELECTED FINANCIAL INFORMATION

EXHIBITS

A ANALYSIS OF CHANGES IN FUND BALANCE

BUDGETFUND

1

SCHEDULESOFFUNDSAVAILABLEANDEXPENDITURES

COMPARED TO BUDGET

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 CURRENT YEAR FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

W. RussELL

H1NTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
September 12, 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 ofDirectors
and Honorable Janet Ayers, President Carroll Technical fustitute
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 Report pursuant to the Single Audit Act Amendments, as ofand for the year ended June 30, 2000, we have performed certain audit procedures at Carroll Technical fustitute. Accordingly, the financial statements and compliance activities of Carroll Technical fustitute were examined to the extent considered necessary in order to express an opinion as to the fair presentation ofthe 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 Carroll Technical fustitute 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 ofCarroll Technical fustitute and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
~~~-~
State Auditor
RWH:jb

SECTION I SELECTED FINANCIAL INFORMATION

CARROLL 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 Accounts Payable Excess of Funds Available over Expenditures
Exhibit "B"
DEDUCTIONS
Unreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and Adult Education - Administrative Central Office Year Ended June 30, 1999
Refunds to Grantors Federal Financial Assistance Other
Reserved Fund Balance Carried Over from Prior Year as Funds Available

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR
EDUCATION

$

170,043.51

556.89 $

93.57

$

170,600.40 $

93.57

$

634.15 $

0.00

90,542.41

$

91 176.56 $

0.00

$

556.89 $

26.09

108,076.54

$

108,659.52 $

93.57 93.57

FUND BALANCE - JUNE 30, 2000

$

153 117.44 $ ======o=.o=o

SUMMARY OF FUND BALANCE
Reserved Federal Financial Assistance For Refund to Grantor Agency Georgia Department of Technical and Adult Education - Administrative Central Office Other Inventories Live Work Projects
Surplus

$

236.08

13.00

61,826.19

91,042.17

$

153,117.44

0.00 $

0.00

$

153117.44 $======o=.o=o

- 1-

CARROLL 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
7,259,315.00 $
1,565,097.00 2,857,911.00
11,682,323.00 $
0.00

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

7,257,511.00 $
1,349,349.83 2,454,506.17
11,061,367.00 $

-1,804.00 -215,747.17 -403,404.83
-620,956.00

108,076.54

108,076.54

$ 11,682,323.00 $ 11,169,443.54 $ _ _ _-_51_2.,:..,8_7_9._46_

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

$

7,707,591.00 $

7,670,642.29 $

2,925,371.00

2,470,591.93

10,000.00

10,000.00

50,000.00

50,000.00

828,861.00

777,209.89

160,500.00

100,457.02

36,948.71 454,779.07
0.00 0.00 -51,651.11 60,042.98

$

11,682,323.00 $

11,078,901.13 $ _ _ _60_3..:,.,4_2_1_.8.;_7

Excess of Funds Available over Expenditures

$

90,542.41 $ ===9=0=,5=4=2=.4=1

-2-

CARROLL 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)

$

788,100.00 $

788,100.00 $

266!562.00

266!562.00

0.00 0.00

$

1!054!662.00 $

1,054,662.00 $ _ _ _ _ _o._oo_

EXPENDITURES Equipment-Technical Institutes

$

1!054!662.00 $

1,054,662.00 $ - - - - -0.0-0

Excess of Funds Available over Expenditures

$

0.00 $ = = = = =0.=00

-3-

CARROLL TECHNICAL INSTITUTE RECONCILIATION OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2000

EXHIBIT"D"

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

SALARIES

TRAVEL

$

6,653,204.35 $ 113,294.02

30,005.09 -27,746.40

$

6,655,463.04 $ 113,294.02

-4-

SECTION II CURRENT YEAR FJNDINGS AND QUESTIONED COSTS

CARROLL TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
CASH AND CASH EQUIVALENTS Inadequate Accounting Procedures Finding Control Number: FS-826-00-01
Accounting procedures ofCarroll Technical Institute were insufficient to provide adequate internal controls over the Cash and Cash Equivalents control categories as noted below:
(1) The monthly bank statements were not reconciled in a timely manner for the operating, Hope and payroll accounts. At June 30, 2000, there was an unreconciled variance between the general ledger and the bank statement of $209,996.86 for the operating account, $78,210.13 for the Hope account and $472.75 for the payroll account.
(2) Numerous errors were reflected on the bank reconciliations which could not be identified.
These conditions occurred because of management's failure to establish procedures to analyze and reconcile cash balances on the general ledger with supporting records.
The Institute should establish appropriate procedures and controls to ensure that all bank statements are reconciled to the general ledger on a timely basis and that reconciling items are identified and corrected. The Institute should establish procedures which ensure that cash and cash equivalents are adequately safeguarded.