Management report, West Central Technical College, Carrollton, Georgia, an organizational unit of the state of Georgia, year ended June 30, 2001

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STATE OF GEORGIA

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DEPARTMENT OF AUDITS AND ACCOU.NTS

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MANAGEMENT REPORT ,_

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WEST CENTRAL TECHNICAL COLLEGE

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, CARROLLTON, GEORGIA

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AN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA

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YEAR ENDED JUNE 30, 2001

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''Russe' ll W. Hinton

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WEST CENTRAL TECHNICAL COLLEGE MANAGEMENT REPORT -TABLE OF CONTENTS-

LETTER OF TRANSMITrAL

Page

SECI10N I

SELECTED FINANCIAL INFORMATION

EXHIBITS

A ANALYSIS OF CHANGES IN FUND BALANCE

BUDGET FUND

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

SECI10NII AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECI10NID CURRENT YEAR FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

Russ,LL w_ u1~-roN
STATE AUDITOR
(40,t) 55&-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Woshmgton Street, SW, Suite 214 AtlantJ, Gcorg10 30334-8400
December 18, 2001

Honorable Roy E Barnes, Governor Members of the General Assembly of Georgia Members of the State Board ofTechmcal and Adult Education Members of the Local Board of Directors
and Honorable Janet Ayers, President West Central Technical College
Ladies and Gentlemen
As part ofour audit ofthe statutory basis financial statements ofthe State ofGeorgia presented m the State ofGeorgia Report ofthe State Auduor, the general purpose financial statements ofthe State of Georgia presented m the State ofGeorgia Comprehensive Annual Financial Report, and the 1Ssuance of a Statewide Single Audi/ Report pursuant to the Smgle Audit Act Amendments, as ofand for the year ended June 30, 200 I, we have performed certa.J.n audit procedures at West Central Techmcal College Accordmgly, the financial statements and compliance act1V1t1es of West Central Techmcal College were exammed to the extent considered necessary III order to express an opm1on as to the fair presentation of the financial statements contained m the foregomg documents and to issue reports on compliance and mtemal control as reqmred by the Smgle Audit Act Amendments of 1996.
Tlus Management Report contams mformatton pertinent to the financial and cornphance act1V1t1es of West Central Technical College as of and for the year ended June 30, 2001. The particular mformatton provided 1s enumerated m the Table of Contents
Tlus report 1s mtended solely for the mforma!ion and use ofmanagement and members ofthe Local Board ofDtrectors of West Central Techmcal College and 1s not mtended to be and should not be used by anyone other than these specified parties
Respectfully submitted,

RWHgp

State Auditor

SECTTON I SELECTED FINANCIAL INFORMATION

WEST CENTRAL TECHNICAL COLLEGE ANALYSIS OF CHANGES IN FUND BALANCE
BUDGET FUND YEAR ENDED JUNE 30. 2001

EXHIBIT "A"

FUND BALANCE - JULY 1 2000 Reserved
ADDITIONS
Adjustments to Pnor Yea(s Accounts Payable
Excess of Funds Available over Expenditures Exhibit "B" Exhibit "C"
Prior Yea(s Checks Voided
DEDUCTIONS AdJustments to Prior Yea(s Accounts Receivable Refunds to Grantors Federal Financial Assistance Georgia Department of Technical and Adult Education - Adminlstrabve Central Office Reserved Fund Balance Camed Over from Pnor Year as Funds Available
FUND BALANCE JUNE 30 2001
SUMMARY OF FUND BALANCE Reserved Federal Financial Assistance For Continuation of Program For Refund to Granter Agency Georgia Department of Technical and Adult Education Administrative Central Office Other lnventones Live Work ProJects
Surplus/Deficit
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"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR
EDUCATION

$

s 15311744

0 00

$

s -114,407 98

118.867 13

212,231 61 7 535 14

-1.912 61

$

105 358 77 $

116 954 52

$

163,693 71 $

000

23608

9104217

$

254 971 96 $

0 00

$

3 504 25 $ ___1_1_6~9=54=52_

s

4,941 30

22,680 80 22,974 91 30,703 62 56 951 59

$

138,252 22

-134 747 97 $

116 954 52

$

3 504 25 $ _ _1_1_6._9,_54,;,,,,;;;52_

WEST CENTRAL TECHNICAL COLLEGE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION YEAR ENDED JUNE 30 2001

EXHIBIT"B"

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

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 8,289,964 00 $ 8,201,091 80 $

1,547,916 00

1,345,055 39

3,333,360 02

2,928,283 58

$ 13,171,240 02 $ 12,474,430 77 $

-88,872 20 -202,860 61 -405 076 44
-696,809 25

0 00

91 042 17

91 042 17

$ 131171,240 02 $ 12,565,472 94 $ _ _..c-60=5,;,,;76C'-7...;;0.:;;...8

EXPENDITURES Personal Services-lnst1tu1Jons Operating Expenses-lnstrtubons Capital Outlay Adult Literacy Grants Job Training Partnership Act
Excess of Funds Available over Expenditures

$ 9,326,089 00 $ 8,911,421 60 $

2,722,02002

2,476,831 78

129,526 00

129,523 99

956,306 00

815,908 12

37,299 00

19 555 84

414,667 40 245,188 24
2 01
140,397 88 17 743 16

$ 1311711240 02 $ 12,353,241 33 $ _ _...;;8;,,;,1.:.,:7,;:,;99:..::8...;;6.:;;...9

$ 212,231 61 $=-~21g2a,:2a,;3~1.;,6:d,1

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WEST CENTRAL TECHNICAL COLLEGE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"B" LOTTERY FOR EDUCATION
YEAR ENDED JUNE 30 2001

EXHIBIT "C"

FUNDS AVAILABLE REVENUES
State Appropnat1on
EXPENDITURES Equ1pment-Technlcal lnsbtules
Excess of Funds Available over Expenditures

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 426,04000 $ 426,04000 $ _ _ _ _ _0~00~

$ 4261040 00 $ 427,952 61 $ _ _ _1~,9_1_2_6_1 $ -1 912 61 $ ==~1_9._1_2.,6,..1

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WEST CENTRAL TECHNICAL COLLEGE RECONCILIATION OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30. 2001

EXHIBIT "D"

Totals per Annual Supplement

Accruals June 30, 2000 June 30, 2001

AdJustment Chnstman, Dunson, Moten,

Pat Walter L Tara S

SALARIES

TRAVEL

$ 7,716,11845 $ 129,12513

-30,005 09 5,724 25

1,12000

204 56 988 28

$ 7,692,957 61 $ 130,317 97

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SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

WEST CENTRAL TECHNlCAL COLLEGE AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR Y'EAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 2001

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-826-00-0 I

Prev1ously Reported Corrective Action hnplcrnented

SECTTONill CURRENT YEAR FINDINGS AND QUESTIONED COSTS

WEST CENTRAL TECHNICAL COLLEGE SCHEDULE OF Fll\'DINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
CASH AND CASH EQUIVALENTS REVENUES/RECEIY ABLES/RECEIPTS Inadequate Accountmg Procedures Fmdmg Control Number FS-826-01-01
For the year under reVJew, defic1enc1es were noted m accountmg procedures at West Central Technical College for the followmg control categones
Cash and Cash Eqmvalents
Net unadjusted reconc1hng items of$2,286.92 for the Operatmg Account; $2,861.38 for the Payroll Account,$ 16,128 29 for the H 0. P E. Scholarslnp Account, and $17,870. I I for the Pell Scholarslup Account were identified on the June 30, 200 l bank reconc1hat1ons These reconcilmg items consisted ofchecks cleanng the bank but never recorded on the general ledger, deposits made to the bank account but never recorded on the general ledger and amounts resultmg from Journal entnes mcorreetly adJustmg general ledger cash accounts
These cond11Ions occurred because of management's failure to estabhsh procedures to record reconc1lmg items on the accountmg records The Techrucal College should estabhsh appropnate procedures and controls to ensure that all reconciling items 1dent1fied on the bank reconc1hat1ons are corrected on the accountmg records in a timely marmer
Revenues/Rece1vables/Rece1pts
For the year under review, accounts receivable reported on the general ledger were not supported by amounts on subs1d1ary accounts receivable ledgers. Subsequent to June 30, 200 I, Technical College personnel 1dent1fied errors m the subs1d1ary and general ledgers These errors consisted of cash receipts recorded as revenues mstead ofproperly credited against ex1sung receivable accounts In addition, we noted deposits not recorded on the general ledger and receivables that were recorded m error.
Extensive procedures were required to produce a detail ofaccounts receivable at June 30, 2001 These procedures resulted m adjustments to Budget Fund and Agency Fund receivables to reduce receivable amounts reported on the general ledger by $190,470.91 and $650.00 respectively.
These defic1enc1es occurred because of management's failure to reconcile subs1d1ary ledgers to the general ledger The Techmcal College should estabhsh appropnate procedures and controls to ensure that accounts receivable reported m the subsidiary ledgers properly support and reconcile with totals reported in the general ledger