STATE OF GEORGIA . DEPARTMENT OF AUDITS AND ACCOUNTS GiA A80o ., RI VCD C3 llcjq-10OO 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.