Management report, West Central Technical College, Waco, Georgia, an organizational unit of the state of Georgia, year ended June 30, 2004

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
MANAGEMENT REPORT WEST CENTRAL TECHNICAL COLLEGE
WACO, GEORGIA
AN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA YEAR ENDED JUNE 30, 2004 Russell W. Hinton State Auditor

WEST CENTRAL TECHNICAL COLLEGE - TABLE OF CONTENTS -

SECTION I

FINANCIAL

LETTER OF TRANSMITTAL

SELECTED FINANCIAL INFORMATION

EXHIBITS

A STATEMENT OF NET ASSETS - (GAAP BASIS)

3

B STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS -

(GAAP BASIS)

4

C STATEMENT OF CASH FLOWS - (GAAP BASIS)

5

D SELECTED FINANCIAL NOTES

7

SUPPLEMENTARY INFORMATION

SCHEDULES

1 BALANCE SHEET- (STATUTORY BASIS)- BUDGET FUND

"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

17

2 ANALYSIS OF CHANGES IN FUND BALANCE-(STATUTORY BASIS)

BUDGET FUND

"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

18

3 SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES

COMPARED TO BUDGET- (STATUTORY BASIS)

BUDGET FUND

"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION 19

4 RECONCILIATION OF SALARIES AND TRAVEL

21

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

WEST CENTRAL TECHNICAL COLLEGE - TABLE OF CONTENTS -
SECTION III FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

Russell W. Hinton
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
December 1, 2004

Honorable Sonny Perdue, Governor Members ofthe General Assembly of Georgia Members of the State Board of Technical and Adult Education Members ofthe 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 in the State ofGeorgia Report ofthe State Auditor, the basic financial statements of the State of Georgia presented in the State ofGeorgia Comprehensive Annual Financial Report, and the issuance of a State ofGeorgia Single Audit Report pursuant to the Single Audit Act Amendments, as ofand for the year ended June 30, 2004, we have performed certain audit procedures at West Central Technical College. Accordingly, the financial statements and compliance activities ofWest Central Technical College were examined to the extent considered necessary in order to express an opinion as to the fair presentation of the 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 West Central Technical College as of and for the year ended June 30, 2004. 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 of Directors of West Central Technical College and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:as

State Auditor

SELECTED FINANCIAL INFORMATION - 1-

WEST CENTRAL TECHNICAL COLLEGE STATEMENT OF NET ASSETS - (GAAP BASIS)
JUNE 30, 2004
ASSETS
Current Assets Cash and Cash Equivalents Accounts Receivable, Net State Appropriations Federal Financial Assistance Other Prepaid Items Inventories
Total Current Assets
Noncurrent Assets Capital Assets, Net
Total Assets
LIABILITIES
Current Liabilities Accounts Payable Salaries Payable Deferred Revenue Funds Held for Others Compensated Absences
Total Current Liabilities
Noncurrent Liabilities Compensated Absences
Total Liabilities
NET ASSETS
Invested in Capital Assets, Net of Related Debt Restricted
Expendable Unrestricted
Total Net Assets

EXHIBIT"A"

$

577,660.89

424.69 47,693.42 394,464.93 41,272.31 399,420.71

$ 1,460,936.95

34,358,714.75 $ 35,819,651.70

$

3,703.14

27,348.89

122,897.98

236,351.99

390,081.68

$

780,383.68

282,850.98 $ 1,063,234.66

$ 34,358,714.75
3,182.52 394,519.77

$ 34,756,417.04

-3 -

WEST CENTRAL TECHNICAL COLLEGE STATEMENT OF REVENUES. EXPENSES AND CHANGES IN NET ASSETS - (GAAP BASIS)
YEAR ENDED JUNE 30. 2004

EXHIBIT "B"

OPERATING REVENUES
Student Tuition and Fees Less: Scholarship Allowances
Grants and Contracts Federal
Rents and Royalties Sales and Services Other Operating Revenues
Total Operating Revenues
OPERATING EXPENSES
Salaries Benefits Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses
Operating Income (Loss)
NONOPERATING REVENUES (EXPENSES)
State Appropriations Grants and Contracts
Federal State Gifts Interest and Other Investment Income Other Nonoperating Revenues Other Nonoperating Expenses
Net Nonoperating Revenues
Income (Loss) Before Other Revenues, Expenses, Gains, or Loss
Capital Grants and Gifts State
Increase (Decrease) in Net Assets
Net Assets - Beginning of Year
Net Assets - End of Year

$ 3.100,259.44 -183, 169.00
1,218,432.10 111,457.45 337,932.50 72,260.00
$ 4,657,172.49
$ 9,570,206.84 2,085,210.87 124,821.35 957,694.00 928,094.73 2,941,785.08 1,569,232.41
$ 18,177,045.28
$ -13,519,872.79
$ 11,154,946.32 1,399,786.19 254,581.91 17,500.00 15,897.77 -24,414.81 -71,067.78
$ 12,747,229.60
$ -772,643.19
289,480.21
$ -483, 162.98
$ 35,239,580.02
$ 34,756,417.04

-4-

WEST CENTRAL TECHNICAL COLLEGE STATEMENT OF CASH FLOWS - (GAAP BASIS}
YEAR ENDED JUNE 30. 2004
CASH FLOWS FROM OPERATING ACTIVITIES Tuition and Fees Grants and Contracts Sales and Services Payments to Suppliers Payments to Employees Payments for Scholarships and Fellowships Other Receipts (Payments)
Net Cash Provided (Used) by Operating Activities
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES State Appropriations Agency Funds Transactions Gifts and Grants Received for Other than Capital Purposes Other Nonoperating Receipts
Net Cash Flows Provided (Used) by Noncapital Financing Activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchases of Capital Assets
CASH FLOWS FROM INVESTING ACTIVITIES Interest on Investments
Net Increase (Decrease) in Cash
Cash and Cash Equivalents - Beginning of Year
Cash and Cash Equivalents - End of Year
RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating Income (Loss) Adjustments to Reconcile Operating Income to Net Cash
Provided (Used) by Operating Activities Depreciation Expense Change in Assets and Liabilities: Receivables, Net Prepaid Items Inventories Salaries Payable Accounts Payable Deferred Revenue Compensated Absences
Net Cash Provided (Used) by Operating Activities
NONCASH ACTIVITY Gift of Capital Assets Reducing Proceeds of Capital Grants and Gifts
-5-

EXHIBIT"C"

$ 2,741,948.16 1,320,336.55 337,932.50 -6,495,776.76 -9,608,066.16 -957,694.00 227,203.68
$ -12,434,116.03

$ 11,154,521.63 14,992.34
1,371,945.12 -179,755.63
$ 12,361,703.46

$ -315,254.96

$

15,897.77

$ -371,769.76

949,430.65

$ =====i5;,;.7~7,;;;66;;,;;0~.8;.;;,.9

$ -13,519,872.79
1,569,232.41 112,335.16 -8,219.05 -399,420.71 -40,376.35 -8,224.97 -142,086.76 2,517.03
$ -12,434,116.03
$ -289,480.21

WEST CENTRAL TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2004

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY West Central Technical College is one of thirty-three (33) State supported member colleges of postsecondary education in Georgia which comprise the Georgia Department ofTechnical and Adult Education, an organizational unit ofthe State of Georgia. The accompanying financial statements reflect the operations of West Central Technical College as a separate reporting entity.
The Technical College's Local Board of Directors is composed of eleven (11) members serving staggered three-year terms who are appointed by the State Board ofTechnical and Adult Education. Appropriation of State funds is made to the Georgia Department ofTechnical and Adult Education by the General Assembly of Georgia. The Department's Administrative Central Office determines the amount of State appropriations to be received by West Central Technical College. The Technical College does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, West Central Technical College is considered an organizational unit ofthe Georgia Department of Technical and Adult Education for financial reporting purposes because of the significance ofits legal, operational, and financial relationships as defined in Section 2100 ofthe Governmental Accounting Standards Board (GASB) Codification ofGovernmental Accounting and Financial Reporting Standards.
NOTE 2: CASH AND CASH EQUIVALENTS AND OTHER DEPOSITS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belonging to West Central Technical College (and thus 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 any one or more of the following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59:
1. Bonds, bill, certificates ofindebtedness, notes, or other direct obligations ofthe United States or ofthe State of Georgia.
2. Bonds, bills, certificates of indebtedness, notes, or other obligations of the counties or municipalities of the State of Georgia.
3. Bonds of any 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 of development authorities created by the laws of the State of Georgia.

-7-

WEST CENTRAL TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2004

EXHIBIT "D"

NOTE 2: CASH AND CASH EQUIVALENTS AND OTHER DEPOSITS

STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES 5. Bonds, bills, certificates of indebtedness, notes, or other obligations of a subsidiary corporation ofthe United States government, which are fully guaranteed by the United States government both as to principal and interest, or debt obligations issued by the Federal 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 ofaccounts provided by the Federal Deposit Insurance Corporation.

As authorized in the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies, which allow agencies of the State of Georgia (and thus West Central Technical College), the option of exempting demand deposits from the collateral requirements.

CATEGORIZATION OF DEPOSITS The Technical College's cash deposits are categorized by risk as follows:

Category 1 - Amounts covered by depository insurance or collateralized with securities (at fair value) held by the Technical College or by its agent in the Technical College's name.

Category 2 - Amounts collateralized with securities (at fair value) held by the pledging financial institution's trust department or agent in the Technical College's name.

Category 3 - Amounts collateralized with securities (at fair value) held by the pledging financial institution, or by its trust department or agent but not in the Technical College's name, and amounts uncollateralized.

At June 30, 2004, the Technical College's cash deposits were as follows:

Cash Deposits

Carrying Amount

Bank Balances

Risk Categories

2

3

$ 574 060 89 $ 947 785 75 $ ]08.905.94 $===0==,0"=0 $ 838 879 81

NOTE 3: ACCOUNTS RECEIVABLE

Accounts receivable at June 30, 2004, consists of the following:

-8-

WEST CENTRAL TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2004

EXHIBIT "D"

NOTE 3: ACCOUNTS RECEIVABLE

State Appropriations Student Tuition and Fees Federal, State and Private Funds Other
Less: Allowance for Doubtful Accounts Net Accounts Receivable

$

424.69

50,827.92

299,922.98

109,179.85

$ 460,355.44

17, 772.40

$ 442,583.04

NOTE 4: CAPITAL ASSETS

Following are the changes in capital assets for the year ended June 30, 2004:

Balance July 1, 2003

Additions

Reductions

Balance June 30, 2004

Capital Assets, Not Being Depreciated: Land and Land Improvements Construction in Progress

$ 1,761,380.00 $

122,002.21

$ 1,761,380.00 122,002.21

$ 1,761,380.00 $ 122,002.21

$ 1,883,382.21

Capital Assets, Being Depreciated: Building and Building Improvements Improvements Other Than Buildings Equipment Library Collections

$33,691,479.00 2,018,180.00 3,953,858.03 $ 685,184.00

469,907.74 $ 12,825.22

$ 33,691,479.00 2,018,180.00
146,209.66 4,277,556.11 698,009.22

$40,348,701.03 $ 482,732.96 $ 146,209.66 $ 40,685,224.33

Less: Accumulated Depreciation:

Buildings and Building Improvements $ 2,831,464.14 $

Improvements Other Than Buildings

1,520,035.87

Equipment

2,003,301.01

Library Collections

407,653.21

758,058.28 192,103.67 560,870.31 $ 58,200.15

$ 3,589,522.42 1,712,139.54
121,794.85 2,442,376.47 465,853.36

$ 6,762,454.23 $ 1,569,232.41 $ 121,794.85 $ 8,209,891. 79

Total Capital Assets, Being Depreciated,

Net

$ 33,586,246.80 $ -1,086,499.45 $ 24,414.81 $32,475,332.54

Capital Assets, Net

$ 35 347 626.80 $ -964.497.24 $ 24,414 81 $ 34 358.714 75

NOTE 5: DEFERRED REVENUE

Deferred revenue at June 30, 2004, consists of the following:

Prepaid Tuition and Fees Federal Grants and Contracts
Totals

$ 121,910.48 987.50
$ 122,897.98

-9-

WEST CENTRAL TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2004

EXHIBIT "D"

NOTE 6: LONG-TERM LIABILITIES

Long-Term liability activity for the year ended June 30, 2004 was as follows:

Other Liabilities Compensated Absences

Balance July 1, 2003

Additions

Reductions

Balance June 30, 2004

Current Portion

$ 670.415.63 $ 644,942.06 $ 642 425 03 $ 672.932 66 $ 390,081.68

NOTE 7: NET ASSETS

Changes in Net Asset activity for the year ended June 30, 2004 was as follows:

Invested in Capital Assets Net of Related Debt
Restricted - Expendable
Unrestricted Net Assets Total Net Assets

Balance July 1, 2003

Additions

Reductions

Balance June 30, 2004

$ 35,347,626.80 $ -964,497.24 $ 24,414.81 $34,358,714.75

3,003.59

2,621,221.88

2,621,042.95

3,182.52

-111,050.37 14,845,046.57 14,339,476.43

394,519.77

$ 35 239 580 02 $ 16 501,771.21 $16,984 934 19 $ 34 756,417.04

NOTE 8: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Plan Description West Central Technical College participates in the Teachers Retirement System ofGeorgia(TRS), a cost-sharing multiple-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State ofGeorgia. TRS provides service retirement, disability retirement, and survivor's benefits for its members in accordance with State statute. The Teachers Retirement System ofGeorgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

Funding Policy Employees ofWest Central Technical College who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. West Central Technical College makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. For fiscal year 2004, the employer contribution rate was 9.24% for covered employees. Employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

- 10 -

WEST CENTRAL TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2004

EXHIBIT "D"

NOTE 8: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Funding Policy Fiscal Year

Percentage Contributed

Required Contribution

2004 2003 2002

100% 100% 100%

$ 567,889.64 $ 606,819.93 $ 565,742.19

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Plan Description West Central Technical College participates in the Employees' Retirement System ofGeorgia (ERS), a single-employer defined benefit pension plan established by the General Assembly ofGeorgia for the purpose of providing retirement allowances for employees of the State of Georgia.

Retirement benefits paid to members are based upon a formula which considers the monthly average of the member's highest twenty-four consecutive calendar months of salary, the number ofyears of creditable service, and the member's age at retirement. Postretirement cost-of-living adjustments are also made to member's benefits. The normal retirement pension is payable monthly for life; however, options are available for distribution ofthe 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.

In addition, the ERS Board of Trustees created the Supplemental Retirement Benefit Plan (SRBP) effective January 1, 1998. The SRBP was established as a qualified governmental excess benefit plan in accordance with Section 415 ofthe Internal Revenue Code (IRC) as a portion ofERS. The purpose of SRBP is to provide retirement benefits to employees covered by ERS whose benefits are otherwise limited by IRC 415.

Funding Policy As established by State statute, all full-time employees of the 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. The Technical College's payroll for the year ended June 30, 2004, for employees covered by ERS was $1,923,312.08. The Technical College's total payroll for all employees was $9,570,206.84.

- 11 -

WEST CENTRAL TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2004

EXHIBIT"D"

NOTE 8: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Funding Policy Under the old plan, member contributions consist of 7.16% of annual compensation. Of these member contributions, the employee pays the first 1.5% and the Technical College pays the remainder on behalf ofthe employee. Under the new plan, member contributions consist solely of 1.5% of annual compensation paid by employee. The Technical College also is required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation. For the year ended June 30, 2004, the ERS employer contribution rate for the Technical College amounted to 10.41 % ofcovered payroll. Employer contributions are also made on amounts paid for accumulated leave to retiring employees.
Total contributions to the plan made during fiscal year 2004 amounted to $229,176.54, of which $200,326.41 was made by the Technical College and $28,850.13 was made by employees. These contributions met the requirements ofthe plan.
GEORGIA DEFINED CONTRIBUTION PLAN
Plan Description West Central Technical College participates in the Georgia Defined Contribution Plan (GDCP) which is a single-employer 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 ofthe Employees' Retirement System of Georgia.
Benefits A member may retire and elect to receive periodic payments after attainment ofage 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board ofTrustees. Ifa member has less than $3,500.00 credited to his/her account, the Board ofTrustees has the option ofrequiring a lump sum distribution to the member in lieu ofmaking periodic payments. Upon the death ofa member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary. Benefit provisions are established by State statute.
The Employees' Retirement System of Georgia issues a financial report each fiscal year which may be obtained through ERS.
Contributions and Vesting Member contributions are seven and one-halfpercent (7.5%) ofgross salary. There are no employer contributions. Contribution rates are established by State statute. 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. The Technical College's payroll for the year ended June 30, 2004, for employees covered by GDCP was $1,075,298.69. The Technical College's total payroll for all employees was $9,570,206.84.
- 12 -

WEST CENTRAL TECHNICAL COLLEGE SELECTED FINANCIAL NOTES JUNE 30, 2004

EXHIBIT "D"

NOTE 8: RETIREMENT PLANS
GEORGIA DEFINED CONTRIBUTION PLAN
Contributions and Vesting Total contributions made by employees during fiscal year 2004 amounted to $80,648.59 which represents 7.5% of covered payroll. These contributions met the requirements of the plan.
NOTE 9: 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 expenses which are disallowed under grant terms. The amount of expenses which may be disallowed by the grantor cannot be determined at this time although West Central Technical College expects such amounts, ifany, to be immaterial to its overall financial position.
Litigation, claims and assessments filed against West Central Technical College (an organizational unit of the Department of Technical and Adult Education), if any, are generally considered to be actions against the State of Georgia. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 2004.
NOTE 10: RELATED ORGANIZATION DISCLOSURE
The financial statements of West Central Technical College Foundation, which is a potential component unit of West Central Technical College, are not included in these financial statements. Copies of the foundation's financial statements may be obtained from West Central Technical College.

- 13 -

SUPPLEMENTARY INFORMATION - 15 -

WEST CENTRAL TECHNICAL COLLEGE BALANCE SHEET- (STATUTORY BASIS)
BUDGET FUND "A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION
JUNE 30, 2004

SCHEDULE "1"

ASSETS
Cash and Cash Equivalents Accounts Receivable
State Appropriation Federal Financial Assistance Other Prepaid Expenditures Inventories
Total Assets
LIABILITIES AND FUND EQUITY
Liabilities Accrued Payroll Accounts Payable Deferred Revenue
Total Liabilities
Fund Balances Reserved Federal Financial Assistance Inventories Live Work Projects Uncollectible Accounts Unreserved Undesignated Surplus Regular
Total Fund Equity
Total Liabilities and Fund Equity

$

334,417.42

424.69 77,986.80 411,745.33 52,399.97 402,045.71

$ 1,279,019.92

$

27,348.89

655,057.06

110,933.48

$

793,339.43

$

3,182.52

358,888.96

101,682.48

17,772.40

4,154.13

$

485,680.49

$ 1,279,019.92

Statutory Basis financial information was prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles.
-17-

WEST CENTRAL TECHNICAL COLLEGE ANALYSIS OF CHANGES IN FUND BALANCE- {STATUTORY BASIS)
BUDGET FUND "A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION
YEAR ENDED JUNE 30, 2004

SCHEDULE "2"

FUND BALANCE - JULY 1, 2003
Reserved Deficit
ADDITIONS
Adjustments to Prior Year's Contracts and Accounts Payable Excess of Funds Available over Expenditures
Schedule "3" Unreserved Fund Balance (Deficit)
Funded by Georgia Department of Technical and Adult Education - Administrative Central Office Year Ended June 30, 2003
Prior Years Checks Voided
DEDUCTIONS
Adjustments to Prior Year's Accounts Receivable
Refunds to Granters Federal Financial Assistance Georgia Department of Technical and Adult Education - Administrative Central Office
Reserved Fund Balance Carried Over from Prior Year as Funds Available
FUND BALANCE - JUNE 30, 2004

$

107,891.14

-9,201.42

$

98,689.72

$

6,645.05

460,521.04

9,201.42 707.00

$

477,074.51

$

-17,807.40

3,003.59

104,887.55

$

90,083.74

$ ===4=8=5=,6=8=0=.4=9

Statutory Basis financial information was prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles.
- 18 -

WEST CENTRAL TECHNICAL COLLEGE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET - (STATUTORY BASIS) BUDGET FUND
"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION YEAR ENDED JUNE 30, 2004

SCHEDULE "3"

FUNDS AVAILABLE REVENUES
State Appropriation Federal Revenues Other Revenues Retained
CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance
EXPENDITURES Personal Services - Institutions Operating Expenses - Institutions Adult Literacy Grants Job Training Partnership Act
Excess of Funds Available over Expenditures

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 11,145,745.00 $ 11,145,744.90 $

1,504,029.08

1,365,305.69

3,682,574.55

3,655,272.16

$ 16,332,348.63 $ 16,166,322.75 $

-0.10 -138,723.39
-27,302.39
-166,025.88

0.00

104,887.55

104,887.55

$ 16,332,348.63 $ 16,271,210.30 $ _ ___;-6;...;.1.:....1;,..;.38.;.;..;.33;..

$ 10,843,059.14 $ 10,827,685.14 $

4,446,320.37

4,010,110.38

955,694.12

895,669.18

87,275.00

77,224.56

15,374.00 436,209.99
60,024.94 10,050.44

$ 16,332,348.63 $ 15,810,689.26 $ _ _ _52_1..:,_,6_5_9._3_7

$

460,521.04 $ =======46=0=,5=2=1.=04=

Statutory Basis financial information was prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles.
-19-

WEST CENTRAL TECHNICAL COLLEGE RECONCILIATION OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2004

SCHEDULE "4"

Totals per Annual Supplement
Accruals June 30, 2003 June 30, 2004
Compensated Absences June 30, 2003 June 30, 2004
Agency Funds

SALARIES

TRAVEL

$

9,633,269.90 $

125,231.42

-65,284.07 27,348.89

-653,425.31 655,584.08
-27,286.65

-410.07

$

9,570,206.84 $

124,821.35

- 21 -

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

WEST CENTRAL TECHNICAL COLLEGE AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2004

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-826-03-01 FS-826-03-02

Previously Reported Corrective Action Implemented Partially Resolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Follow Purchasing Guidelines Finding Control Number: FS-826-03-02

The Department of Technical and Adult Education (DTAE) is currently in contact with Georgia Technology Authority for guidance in resolving this issue.

SECTION III FINDINGS AND QUESTIONED COSTS

WEST CENTRAL TECHNICAL COLLEGE SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2004
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.