Review report, state of Georgia, Chattahoochee Technical Institute, Marietta, Georgia, year ended June 30, 1996

GA
A'800
.RI
Vb
C't5 /cNS-q{,
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

REVIEW REPORT STATE OF GEORGIA CHATTAHOOCHEE TECHNICAL INSTITUTE NUUUETTA,GEORGIA YEAR ENDED JUNE 30, 1996

CHATTAHOOCHEE TECHNICAL INSTITUTE - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

EXIDBITS

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 o.F 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

6

E

"B" LOTTERY FOR EDUCATION

7

F NOTES TO THE FINANCIAL STATEMENTS

8

SUPPLEMENTARY INFORMATION

G COMBINING BALANCE SHEET (STATUTORY BASIS)

BUDGET FUND

24

H COMBINING STATEMENT OF CHANGES IN FUND BALANCE

(STATUTORY BASIS)

BUDGET FUND

2~

I COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

26

J COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

FIDUCIARY FUND TYPE - AGENCY FUNDS

28

SCHEDULES

1 CASH AND CASH EQUIVALENTS

29

2 SCHEDULE OF FEDERAL REVENUES

30

3 RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL

31

CHATTAHOOCHEE TECHNICAL INSTITUTE - TABLE OF CONTENTS -
SECTIONll 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
January 17, 1997

Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members of the State Board of Technical and Adult Education Members ofthe Local Board ofDirectors
and Honorable Harlon D. Crimm, President Chattahoochee Technical Institute
INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have reviewed the accompanying financial statements (Ex.hibits A through F) of Chattahoochee Technical Institute as of and for the year ended June 30, 1996, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. As described in Note 1, 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. All information included in these financial statements is the representation of the management of Chattahoochee Technical Institute.
A review consists principally of inquiries of Institute personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware ofany material modifications that should be made to the accompanying financial statements in order for them to be in conformity with the basis of accounting described in Note 1.
Our review was made for the purpose ofexpressing limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with the basis of accounting described in Note 1. The accompanying supplementary information (Exhibits G through J and Schedules 1 through 3) is presented only for supplementary analysis purposes. Such information has been
96ARL-4T

subjected to the inquiries and analytical procedures applied in the review ofthe financial statements, and we are not aware of any material modifications that should be made thereto.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:dt
96ARL-4T

FUNANCLALSTATE~TS
- 1-

CHATTAHOOCHEETECHN~ALINSTITU[E
COMBINED BALANCE SHEET <STATUTORY BASIS)
ALl FUNP TYPES AND ACCOUNT GROUPS
JUNE 30,1996

EXHIBIT "A"

GOVERNMENTAL FiDUCIARY

FUND TYPE

FUND TYPE

BUDGET

AGENCY

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

TOTALS (Memorandum Only) JUNE 30, 1996 JUNE 30,1995

Cash and Cash Equivalents
Accounts Receivable Slate Funds Federal Financial Assistance Other
Fixed Assets Equipment
Amounts to be Provided for Payment of: Accrued Compensated Absences
Capital Lease Commitments

S

997,667,30

S 997,667.30 S 380,318,03

S

0.00

300,745.84 S 306,090.00

442,560,97 158,109.05

S

743,306,81 S 464,199.05

S

0,00 S

606,835.84

600,670.02

811,933,99 298,188.79
91,412.10

S 1207,505,86 S 1,201 ,534,88

S 3,497,829.84

S 3,497,829,84 S 2,930,942,12

S 465,688,35 S 22,245,94
S 487,934.29 S

465,688.35 S 22,245.94
487,93429 S

412,601.11 53,515.69
466,116,80

Total Assets

S

1.740,974,17 S 464,199,05 S 3,497,829,84 S 487,934.29 S 6,190,937.35 S 4,984,911.83

LIAB!LmES AND FUND EQUITY

Liabilities

Cash Overdraft

Accounts Payable

Salaries Payable

Deferred Revenue

.,

Tuition and Fees

Funds Held in Custody for Others

Compensated Absences

Capital Leases

ToIal Liabilities

Fund Equity Investment in General Fixed Asse1s Fund Balance
Reserved Federal Financial Assistance For Refund to Georgia Department of Technical and Adult Education Administrative Central
0lIice For Expired Grant Balances For Other Live Work Projects
Private Grants Unreserved
Designated Surplus Regular Lottery for Education

Total Fund Equity

S 378,832,59

S

1,443,508,84

92,486,18

'-

170,613,00

85,366,46

S

1,706,608,02 S 464,199,05

S 378,832.59 S

930,85

1,443,508.84 1,297,180.00

92,486,18

77,851,70

S 465,688,35 22,245,94

170,613,00 85,366,46 465,688.35 22,245,94

112,202,75 67,238,15 412,601,11 53,515,69

S 487,934,29 S 2,658,741.30 S 2,021.520.25

S 3,497,829,84

S 3,497,829,84 S 2,930,942.12

S

0.00

625.23

5,751.14

13,111.81

10,378,70

3,929,23 570,04
S_ _~=:3:4.,=3.6:.6:,.1=5..

S 3,497,829.84

0,00
625.23 5,751,14 13,111.81 10,378.70

98,15
197.91 3,633.23 4,756.82 10,378,70

3,929,23 570.04

6,684.53 700,12

S 3,532,195,99 S 2,963,391,58

Total Liabilities and Fund Equity

S 1,740,974.17 $ 464,199.05 $ 3,497,829,84 $ 487,934,29 S 6,190,937,35 S 4,984,911.83

See Independent Accountants Combined Report on Review of Financial Statements and Supplementary Information,

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

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

EXHIBIT"B"

See Independent Accountant's Combined Report on Review of Financial Statements

and Supplementary Information.

.

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

CHATTAHOOCHEETECHN~'NS]ITU[E STATEMENT OF FUNDS AVAILABLE ANO EXPENprrvRES
BUPGETfUNO )'EAR ENDEO JUNE 30, 1996

EXHIBITCO

FUNDS AVAILABLE
REVENUES
STATE FUNDS Allotment from Georgia Depertment d Technical and Adult Education Administrative central 0lIice
FEDERAL REVENUES (see Schedule)
OTHER REVENUES RETAINED A110Cment from Georgia Depertment d Technical and Adult Education Administrative central 0lIice ConstrucIion Reserve Trust fund fees Application Parking RegistrationlContinuing Education Testing Other Reimbursements from Various Sources sales and Services (Net) Tuition Other Sources
Total Other Revenues Retained
Total Revenues
CARRY-OVER FROM PRIOR)'EAR
Transfer from Reserved fund Balance federal financial Assistance Live Work Projects Private Grants
Total Carry-Over from Prior Year
Total funds Available
EXPENDITURES
PERSONAL SERVlCEs-JNSTlTUTIONS
Salaries and Wages Employer's Conbibutions for:
f.l.CA Retirement 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 Insurance and Bonding Other Operating Expenses Publications and Printing
Travel
see Independent Accountanfs Combined Report on Review of financial Statements
and Supplementary Information,
The notes to the financial statements are an integral part of this statement.
-4-

TOTALS YEAR ENDED JUNE 30,1996 JUNE 30,1995

$ 5,766,436.00 $ 5,676,163,99 $ 920,817.97 $ 1,057,619.07

$ 425,000.00 $

0.00

35,850,00 68,095.50 278,455.29
2,785.00 52,495.18
0,00 61,655,46 1,319,441.07
4,007.91

36,860,00 68,421.00 292,522.50 11,840,10
9,260,93 110,38
56;1.n.74 1,044,049.40
40,85

$ 2.247,785,41 $ 1,519,382,90

$ 8,935,039,38 $ 8,253,165,96

$

3,633.23 $

0.00

4,756.82

331,52

10,378,70

10,378,70

$

18,768.75 $

10,710.22

$ 8,953,808.13 $ 8,263,876.18

$ 4,873,818.71 $ 4,564,661.75

77,050,45 508,408,83 550,189,72
26,931.00 11,653.00 13,618,00

72,403,04 479,845,87 512,097,85
24,304.00 8;1.11.00 17,477.00

$ 6,061,669,71 $ 5,679,000,51

$

5,898,66 $

2,042,16

357,763,98

361;1.69,75

144,460,64

167,461.14

223,549,04

185;1.07,44

9,045,00

13,630.54

215,842,96

150,683,97

61,572,19

40,636.27

51,246,88

40,027.14

CHATTAHOOCHEE TECHNICALINST!TUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BVPGETFUND
YEARENDEDJUNE~1~

EXHIBIT"C"

EXPENDITURES
OPERATING EXPENSES.JNSTITUT!ONS
EqUipment Equipment Purchases leueIPurchase d EqUipment Rental d Equipment
CompulBr Charges Software Equipment Equipment Purchases LeaselPurchase d Equipment
Reel Estate Rentals Telecommunications Per Diem, Fees and Contracts
Per Diem and Fees
JOB TRAINING PARTNERSHIP ACT
Personal Servic:es Salaries and Wages Employel's Conbibutions for: F.I.CA Retirement Health Insurance
Other Costs Supplies and Materials Repairs and Maintenance Other Operating Expenses
Travel Reel Estate Rentals Per Diem. Fees and ContracIs
Contracts
EQUIPMENT-TECHNICALINSmUTES
Equipment Equipment Purchases
REPAIRS AND RENOVATIONS
Other Costs Repairs and Maintenance
Per Diem, Fees and Contracts Per Diem and Fees Contracts
Total Expenditures
Excess d Funds Available over Expenditures

TOTALS
YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

$ 664,057.08 $ ..e6,699.90

36,668.76

23,323.19

3,881.82

n1.00

45,754.13

18,628.05

0.00 0.00 5.460.00 86.506.48

13,581.47 42,037.14 15,207.00 52,930.04

94,483.60

76,943.55

$ 2,006,191.22 $ 1,671,079.75

$ 149,324.90 $
2.089.88 17.634.98 16,855.17
1.387.58 241.60
33.516.03 309.50
8.906.25
0.00
$ 230,265.89 $

16,693.11
229.29 1.971.36 2.100.06
0.00 0.00 9.893.41 583.55 0.00
3,514.80
34,985.58

$ 201,724.00 $ 860,933.99

$ 234.850.48 $

0.00

26.300.00

0.00

163,849.52

0.00

$ 425,000.00 $

0.00

$ 8,924,850.82 $ 8,245,999.83

28,957.31

17,876.35

$ 8,953,808.13 $ 8,263,876.18

see Independent Accountanfs Combined Report on Review of Financial Statements
and SUpplementary Information.
The notes to the financial statements are an integral part of this statement.
-5-

CHATTAHOOCHEE 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"

EXPENDITURES Personal Services-Institutions Operating Expenses-Institutions Job Training Partnership Act
Excess of Funds Available over Expenditures

$ 8,764.720,00 $ 8,327,084,13 $ - - - --4-3-7,6'3-5-,87-

$ 6,356,612,00 $ 6,061,669,71 $

2,133,727,00 2,006,191.22

274,381.00

230,265.89

294,942,29 127,535.78 44,115.11

$ 8,764}20,OO $ 8,298,126,82 $ _ _.....;4...;;..66.;;..:,.;;..;59;.,.;.3.;;..;,1~8

$

28,957,31 $ ========2:=8=:,9:::5=7,:::31=

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement.
-6-

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

EXHIBIT"E"

FUNDS AVAILABLE
REVENUES
State Funds Other Revenues Retained

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 201,724,00 $ 201,724.00 $

0.00

425,000.00

425,000.00

0.00

$ 626,724.00 $ 626,724.00 $

0_.0_0

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

$ 201,724.00 $ 201,724.00 $

0.00

425,000.00

425,000.00

0.00

- - - - - - $ 626,724.00 $ 626,724.00 $

0.00

$

0.00 $=====0:=.0=0

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement.
-7-

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

EXIllBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Chattahoochee 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 of the State of Georgia. The accompanying financial statements reflect the operations of Chattahoochee Technical Institute as a separate reporting entity.
The Institute's Local Board of Directors is composed of eleven (11) members serving staggered three-year terms who are appointed by the State Board of Technical and Adult Education. Appropriation of State funds is made to the Georgia Department of Technical and Adult Education by the General Assembly of Georgia. The Department's Administrative Central Office determines the amount of State funds to be received by Chattahoochee Technical Institute. The Institute does not have authority to retain unexpended State funds (surplus) for any given fiscal year. Accordingly, Chattahoochee Technical Institute is considered an organizational unit of the Georgia Department of Technical and Adult Education for financial reporting purposes because ofthe 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 Chattahoochee Technical Institute uses funds and account groups to report on its financial position and the results ofits operations determined in conformity with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia. A fund is an independent fiscal and accounting entity with a selfbalancing set ofaccounts. Fund accounting 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 offunds 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, faculty, and/or staffwhich 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.
-8-

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

EXHIBIT "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 ifhistorical 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 ofthe assets are included in the General Fixed Assets Account Group.
GENERAL LONG-TERM DEBT - The account group used to report the noncurrent portions of certain 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 of current 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 ofthe Department of Technical and Adult Education for remittance to the Office of Treasury 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 recogmzed when susceptible to accrual (Le., when they are "measurable and available"). "Measurable" means the amount of the 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.

-9-

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

EXlllBIT "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 of the State of Georgia, but is not consistent with generally accepted accounting principles, which provide for the recording of encumbrances 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.
Contractual terms ofcertain Federal grant agreements received by the Institute for vocational training services require that grant funds earned be recorded as Federal revenues rather than as revenues from tuition and fees. Accordingly, it is the Institute's policy to record certain Federal grant funds as Federal revenues and also as other revenues retained with offsetting expenditures for student expenses charged to the other operating expenses expenditure account. This accounting policy results in an overstatement of both revenues and expenditures in the financial statements for such Federal grants. This policy 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.
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 of Georgia, 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 of operations 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.

- 10 - .

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

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CASH AND CASH EQUIVALENTS Cash and Cash Equivalents include currency on hand and demand deposits with banks and other authorized financial institutions.

ACCOUNTS RECEIVABLE Accounts receivable consist of allotments due from the Georgia Department of Technical and Adult Education - Administrative Central Office, reimbursements due from Federal, State, local, and private grants and contracts, and other receivables disclosed from information available.

Accounts receivable (Other) arising from operations are reported at gross value. Based on management's evaluation that amounts uncollectible are not material, no provision has been made for such amounts.

INVENTORIES No inventories of supplies are reported in these financial statements. Expendable supplies are recorded as expenditures at the time of purchase.

RESERVED FUND BALANCE

Reserves represent those portions of fund 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 EXPIRED GRANT BA;LANCES
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 of the Federal program/project. This amount is refundable to the applicable grantor.

OTHER The residual portion ofFederal financial assistance revenues not yet expended or encumbered. This amount is restricted for expenditure in future years. This accounting treatment differs from generally accepted accounting principles in that the unearned portion of Federal financial assistance should be reflected as deferred revenue.

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.

PRIVATE GRANTS The unexpended balance ofprivate grants which is restricted for expenditure in future years for the specific purposes as designated by the grantors.

- 11 -

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

EXIllBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 of Technical and Adult Education - Administrative Central Office for remittance to the Office of Treasury and Fiscal Services in the subsequent fiscal year as surplus, as follows:
REGULAR - An amount ofunexpended regular appropriations designated for reappropriation by the State in subsequent years.
WTIERY FOR EDUCATION - 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 ofannu3.I 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.
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 of the Institute's financial position and operations or would cause the statements to be unduly complex and difficult to understand.

- 12-

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

EXHIBIT "F"

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 of Georgia Annotated Section 50-17-59:
(1) Bonds, bills, certificates ofindebtedness, notes, or other direct obligations of the United States or of the State of Georgia.
(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 ~eated the authority authorized the use of the bonds for this purpose.
(4) Industrial revenue bonds and bonds of development authorities created by the laws ofthe 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 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 of accounts 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 (which include technical institutes) the option of exempting demand deposits from the collateral requirements.
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 of June 30, 1996, are categorized below in order to provide information 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 agent in the Institute's name.
- 13 -

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

EXHIBIT "F"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS

CATEGORIZATION OF DEPOSITS 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.

Cash Deposits

Carrying Amount

Bank Balances

Risk Categories

2

3

S 617834.77 S 106595245 S 100 ()()() 00 S'==dO~OO~ S 965952A5

NOTE 3: CAPITAL LEASES

Chattahoochee Technical Institute acquires certain property and equipment through multi-year capital leases with varying terms and options. These agreements contain fiscal funding clauses in accordance with Official Code ofGeorgia Annotated Section 50-5-64 which prohibits the creation ofa debt to the State of Georgia for the payment ofany sums under such agreements beyond the fiscal year of execution if appropriated funds are not available. If renewal of such agreements is reasonably assured, however, capital leases requiring appropriation by the General Assembly of Georgia are considered noncancellable for financial reporting purposes.

As ofJune 30, 1996, future minimum lease payments under capital leases are as follows:

Fiscal Year Ending June 30
1997 1998 Total Future Minimum Lease Payments Less: Amounts Representing Interest Present Value ofFuture Minimum Lease Payments

$ 19,118.10 4.350.56
$ 23,468.66 1.222.72
$ 22,245.94

NOTE 4: 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$I,OOO.OO 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:

- 14 -

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

EXHIBIT "F"

NOTE 4: CHANGES IN GENERAL FIXED ASSETS
Balance July 1, 1995 Additions Deductions Balance June 30, 1996
NOTE 5: GENERAL LONG-TERM DEBT

$ 2,936,942.12
570,392.72 9.505.00
$ 3.497,829.84

CHANGES IN GENERAL LONG-TERM DEBT A summary of changes in General Long-Term Debt for the year ended June 30, 1996, follows:

Compensated Absences

Balance July 1, 1995

$ 412,601.11 $

Additions. Annual Leave Earned and Utilized (Net) Salaries and W~es Salary-Related ringe Benefits
Deductions

52,561.42 525.82

Balance June 30, 1996

$ 465,688.35 $

Capital Leases 53,515.69 $
31.269.75 22,24594 $

Total 466,116.80
52,561.42 525.82
31.269.75 487,934.29

NOTE 6: RISK MANAGEMENT

Public Entity Risk Pool The State Personnel Board - Merit System of Personnel Administration administers for the State of Georgia a program ofhealth benefits for the employees ofunits of government 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 ofmaking 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

- 15 -

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

EXHIBIT "F"

NOTE 6: RISK MANAGEMENT
Other Risk Management 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 7: 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,
pennits 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 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 8: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Plan Description Chattahoochee Technical Institute participates in the Teachers Retirement System of Georgia (TRS), a costsharing multiple-employer public employee retirement system (PERS) established by the General Assembly ofGeorgia 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 $4,266,828.68. The Institute's total payroll for all employees was $5,023,143.61.
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 of 60 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 of 55 years and has at least 25 years of creditable 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 members two consecutive highest paid years of service multiplied by the number of years 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

- 16 -

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

EXHIBIT "F"

NOTE 8: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Benefits 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 1O!cl for each year or fraction thereofby which the member has less than 30 years of service. The nonna! retirement pension is payable monthly for life. Options are available for distribution of the 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 of death 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.
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 of Trustees 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 $717,259.87, of which $503,912.49 was made by the Institute and $213,347.38 was made by employees. These contributions represented 11.81% (Institute) and 5% (employees) ofcovered 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 of credited 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 of the 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 of June 30, 1995, which was the latest information available, was as follows:

- 17 -

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

EXIllBIT "F"

NOTE 8: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Funding ~tatus and Progress Pension Benefit Obligation

Total pension benefit obligation

$ 17,442,607,000.00

Net assets available for benefits, at cost

15,857,066,000.00

Unfunded pension benefit obligation

$ 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 valued as ofthe same date. TRS does not make separate measurements ofassets 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 $503,912.49 was aetuarially determined and represented .0829% oftotal contributions made by all participating employers.

Trend Information Historical trend information is presented in the TRS June 30, 1996, financial report. This information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due.

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Plan Description Chattahoochee Technical Insti~te participates in the Employees' Retirement System of Georgia (ERS), a single-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose ofproviding retirement allowances for employees of the State of Georgia. The Institute's payroll for the year ended June 30, 1996, for employees covered by ERS was $138,444.50. The Institute's total payroll for all employees was $5,023,143.61.

Benefits The benefit structure of ERS was significantly modified on July I, 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

- 18 -

CHATTAHOOCHEE TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEfvffiNTS
JUNE 30. 1996

EXHIBIT "F"

NOTE 8: RETIREfvffiNT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Benefits 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 of the member's highest eight consecutive calendar quarters of salary, the number of years 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 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 of the employee. Under the new plan, member contributions consist solely of 1.25% of compensation paid by employee. The Institute also is 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 14.890,10 ofcovered payroll and included the 4.75% contributed on behalfofthe 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 $22,253.91, of which $20,523.35 was made by the Institute and $1,730.56 was made by employees. These contributions met the requirements of the 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.

- 19-

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

EXlllBIT "F"

NOTE 8: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
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 Chattahoochee Technical Institute participates in the Georgia Defined Contribution Plan (GDCP) which is a singl~ployer defined contnbution plan established by the General Assembly ofGeorgia 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 $462,992.26. The Institute's total payroll for all employees was $5,023,143.61.
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. Ifa member has less than $ 3,500.00 credited to hislher account, the Board of Trustees has the option of requiring a lump sum distribution to the member in lieu ofmaking 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 of the member's account is refundable upon request by the member.
Total contributions made by employees during fiscal year 1996 amounted to $34,725.32 which represents 7.5% of covered payroll. These contributions met the requirements ofthe plan.
NOTE 9: 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 of forty-five days. Employees are paid for unused accumulated annual leave upon retirement or termination of employment. See Note 1- Compensated Absences
- 20-

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

EXIllBIT "F"

NOTE 9: LEAVB POLICIES
Employees earn one and one-quarter days of sick leave each month with a maximum accumulation ofninety 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 aild sick leave are entitled to additional service credit in the Employees' Retirement System of Georgia.
NOTE 10: NONMONETARY TRANSACTIONS
The Georgia Department of Technical and Adult Education - Administrative Central Office used lottery proceeds to purchase $224,999.96 of equipment for Chattahoochee Technical Institute during the fiscal year ended June 30, 1996. Those items with an acquisition cost of $1,000.00 or greater will be reflected as received in the General Fixed Assets Account Group in the accompanying financial statements. However, revenues and expenditures for these lottery proceeds are not reflected in these financial statements.
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 $4,168,031.69 to various vendors for approved projects for the benefit of Chattahoochee Technical Institute.
NOTE 11: 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 anyexpenditures which are disallowed under grant terms. The United States Department of Education (USDOE) conducted a program review of the Title N federal student financial assistance programs administered at Chattahoochee Technical Institute January 16-22, 1996. The initial report from USDOE dated, February 15, 1996, reported that an institutional liability of$147,749.00 for the 1993-1994 Pell Grant Program (CFDA 84.063) was due to the USDOE. In accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, no liability or reserved fund balance has been included in these financial statements. Payment of this liability is contingent on the Final Program Review Determination Letter to be issued by the USDOE.
Litigation, claims and assessments filed against Chattahoochee Technical Institute (as an organizational unit of the Department of Technical 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.

- 21 -

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

EXHIBIT "F"

NOTE 12: BONDING INFORMATION
The President and all employees ofChattahoochee Technical Institute are 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 insures Chattahoochee 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 insures 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 ofChattahoochee Technical Institute are 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 insure 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.

- 22-

SUPPLEMENTARY INFORMAnON - 23 -

CHATIAHOOCHEE TECHNICAL INSTITUTE COMBINING BALANCE SHEET (STATUTORY BASIS)
BUDGET FUND JUNE 30.1996
See accompanying notes and Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information.
- 24 -

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 25 -

CHATIAHOOCHEETECHN~INSTITU[E COMBINING STATEMENT OF FUNDS AVAILABLE ANp EXPENprruRES
BUOOETFUNp
)'EAR ENDEP JUNE 30, 1996

EXHIBITor

FUNDS AVAILABLE
REVENUES
STATE FUNDS AIIoIment from Georgia Department d Technical and Adult Education Administrative Central 0IIic:e
FEDERAL REVENUES
OTHER REVENUES RETAINED AlIoCment from Georgia Department of Technical and Adult Education Administrative Central 0IIic:e Construction Reserve Trust Fund Fees Application Parking RegistrationlContinuing Education Testing Other sales and Services (Net) Tuition Other Sources
Total Other Revenues Retained
Total Revenues
CARRY.QVER FROM PRIOR YEAR
Transfer from Reserved Fund Balance Federal Financial Assistance Live Work Projects Private Grants
Total C8rry.Qver from Prior Year
Total Funds Available
EXPENDITURES
PERSONAL SERVlCESINSTlTUTIONS
salaries and Wages Employer's Contributions for:
F.l.CA Retirement 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 Insurance and Bonding Other Operating Expenses Publications and Printing
See accompanying notes and Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information,
26

Ao
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

oS"
LOTTERY FOR EDUCATION

TOTAL

$ 5,564,712.00' $ $ _ _",,920==,8..,.1.:.:7.::,97:-

201,n4,00 $ 5,766,436,00 $ 920,817,97

$ 425,000.00 $ 425,000.00

$

35,850.00

68,095.50

278,455.29

2,785.00

52,495,18

61,655.46

1,319,441,07

4,007.91

35,850.00 68,095.50 278,455.29
2,785,00 52,495.18 61,655.46 1,319,441.07
4,007,91

$ 1.822.785,41 $ 425,000.00 $ 2,247,785.41

$ 8,308,315.38 $ 626,n4.00 $ 8,935,039.38

$

3,633.23

4,756.82

10.378.70

$

18,768.75

$

3,633.23

4,756.82

10,378.70

$ 18,768.75

$ 8,327,084.13 $ 626,n4,00 $ 8,953,808.13

$ 4,873,818.71
n,05O.45 508,408.83 550,189.72 26,931.00 11,653.00 13,618.00
$ 6,061,669,71

$

5,898.66

357,763,98

144,460.64

223,549.04

9,045.00

215,842,96

61,5n,19

$ 4,873,818.71
n,05O.45 508,408.83 55O,189.n 26,931.00 11,653.00 13,618.00
$ 6,061,669.71

$

5,898.66

357,763.98

144,460.64

223,549,04

9,045,00

215,842,96

61,5n,19

CHATLNiOOCHEETECHN~INS!ITlITE
COMBINING STATEMENT OF FUNDS AVAILABlE AND EXPENDITURES
BUOOETFUND
YEAR ENDED JUNE 30, 1996

EXHIBITor

EXPENDITURES
OPERATING EXPENSES-INSTITUTIONS
TrweI Equipment
Equipment Purchases LeaseJPurchase 01 Equipment RenlBl 01 Equipment Computer Charges Software Real Estate RenlBls Telecommunic:alions Per Diem, Fees and Contracts Per Diem and Fees
JOB TRAINING PARTNERSHIP ACT
Personal Services salaries and Wages Employer's Contributions for: F.I.CA Retirement Health Insurance
OIherCosts Supplies and Materials Repairs and Maintenance 0Iher Operating Expenses
TrweI Real Estate RenIBIs
EQUIPMENT-TECHNICAL INSTITUTES
Equipment Equipment Purchases
REPAIRS AND RENOVATIONS
OIherCosts Repairs and Maintenance
Per Diem, Fees and Contracts Per Diem and Fees Contracts
Total Expenditures
Excess 01 Funds Available ovar Expenditures

Ao
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

os-
LOTTERY FOR EDUCATION

TOTAL

$

51,246,88

664,057,08 36,668,76 3,881.82

45,754.13 5,460.00
88,506,48

94,483,60

$ 2,006,191.22

$

51,246,88

664,057,08 36,668,76 3,881.82

45,754.13 5,460,00
86,506,48

94,483,60

$ 2,006,191.22

$

149,324,90

2,089,88 17,634,98 16,855.17

1,387,58 241,60
33,516,03 309.50
8,906.25

$

230,265.89

$ 149,324,90
2,089.88 17,634,98 16,855,17
1,387,58 241,60
33,516,03 309,50
8,906,25
$ 230,265.89

$ 201,724,00 $ 201,724.00

$ 234,850.48 $ 234,850,48

26,300.00 163,849.52

26,300,00 163,849,52

$ 425,000,00 $ 425,000.00

$ 8,298,126,82 $ 626,724,00 $ 8,924,850.82

28,957,31

0,00

28,957.31

$ 8,327,084,13 $ 626,724,00 $ 8,953,808.13

See accompanying notes and Independent Accountants Combined Report on Review of Financial Statements and Supplementary Information.
27 -

CHATTAHOOCHEE TECHNICAL INSTITUTE COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30,1996

EXHIBIT"J"

FUND

ASSETSI LIABILITIES JULY 1,1995

ADDITIONS

DEDUCTIONS

ASSETSI LIABILITIES JUNE 30,1996

DTAE Activities Fund

$

0.00 $

1,403.00 $

1,387.75 $

15.25

General Scholarship Fund

19,727.22

9,790.78

11,051.30

18,466.70

HOPE Scholarship Program

1,077.85

796,617.05

797,098.05

596.85

Law Enforcement Examination Fees

1,710.00

2,750.00

1,200.00

3,260.00

Ucensed Practical Nurse Examination Fees

2,808.25

1,922.00

1,792.10

2,938.15

Pell Grant Program

1,565.38

551,550.75

532,112.94

21,003.19

Supplemental Educational Opportunity Grants

4,999.00

13,460.25

16,029.00

2,430.25

Student Activities Fund

33,050.45

69,559.18

67,981.26

34,628.37

student Insurance

2,300.00

2,135.70

2,408.00

2,027.70

$ 67,238.15 $ 1,449,188.71 $ 1,431,060.40 $ .............8.5..,36""""""6=.4..6..

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 28-

CHATTAHOOCHEE TECHNICAL INSTITUTE CASH AND CASH EqUIVALENTS JUNE 30, 1996
NONINTEREST BEARING ACCOUNTS
SouthTrust Bank of Georgia, AUanta, Georgia
INTEREST BEARING ACCOUNTS
SouthTrust Bank of Georgia, AUanta, Georgia
Special Money Multiplier Account
OTHER
Cash on Hand Petty Cash

SCHEDULE "1"
$ 574,401.50 43,433.27 1,000.00
$ 618,834.77

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 29-

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

SCHEDULE "2"

BUDGET FUND
Education, U. S. Department of Higher Education - Institutional Aid Direct
Federal Work-Study Program Direct
Vocational Education - Basic Grants to States Through Georgia Department of Technical and Adult Education - Administrative Central Office
Labor, U. S. Department of Job Training Partnership Act Through Cobb County Board of Commissioners Through Georgia Department of Technical and Adult Education - Administrative Central Office
Transportation, U. S. Department of Highway Planning and Construction Through Georgia Department of Natural Resources

CFDA NUMBER

AMOUNT

84.031 $ 341,565.80

84.033

4,906.65

84.048

270,002.78

17.250 17.250

165,653.95 64,611.94

20.205

74,076.85

$ 920,817.97

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 30 -

CHATTAHOOCHEE 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 Job Training Partnership Act

SALARIES AND WAGES
$ 5,008,509.13 $

TRAVEL 50,739.66

92,486.18 -77,851.70

816.72

$ 5,023,143.61 $ =====5:::i:::l1,=:556===:.3:=8

$ 4,873,818.71 $ 149,324.90

51,246.88 309.50

$ 5,023,143.61 $=====5:::i:::l1,=:55=:6=.3:=8

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 31 -

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

CHATTAHOOCHEE TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1996

STATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR QUESTIONED COSTS

The status' offindings disclosed in the review report for the year ended June 30, 1995, is summarized below:

Audit Control Number

Status ofFindings

827-95-01
827-95~02
827-95-03 827-95-04 827-95-05 827-95-06 827-96-07

No Corrective Action Corrective Action Implemented No Corrective Action Implemented See Audit Control Number 827-96-01 Corrective Action Implemented Corrective Action Implemented Corrective Action Implemented

PRIOR YEAR/CURRENT YEAR

FEDERAL FINANCIAL REPORTS Failure to Submit Institutional Payment Summary Report Federal Financial Assistance Pell Grant Program (CFDA 84.063) Audit Control Number 827-96-01

The review report for the year ended June 30, 1995, noted that Chattahoochee Technical Institute failed to submit an Institutional Payment Summary (IPS) report during one specified reporting period as required by regulations set forth in The Blue Book ofthe U. S. Department ofEducation.

For the year. under review, Chattahoochee Technical Institute again failed to submit IPS reports for the required reporting periods of July 1, 1995 - October 15, 1995 and October 16, 1995 - December 15, 1995. Management claims that this condition was the result ofan oversight by the Financial Aid office. The Institute should implement procedures to ensure that all IPS reports are submitted in accordance with Federal reporting requirements.

CURRENT YEAR

ADMINISTRATIVE REQUIREMENTS Lack of Administrative Capability Federal Financial Assistance Pell Grant Program (CFDA 84.063) Audit Control Number 827-96-02

For the year under review, our tests ofthe internal control structure for administering the Pell Grant program indicated that the Institute has a lack of administrative capability based on the standards in 34 CFR 668. 16. Federal regulations 'require that the Institute administer the Pell Grant program with adequate checks and balances in its system of internal controls. We noted deficiencies in the following control categories:

- 1-

CHATTAHOOCHEE TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30, 1996
CURRENT YEAR
ADMINISTRATIVE REQUIREMENTS Lack of Administrative Capability Federal Financial Assistance Pen Grant Program (CFDA 84.063) Audit Control Number 827-96-02
(1) Federal Financial Reports (2) Types of Services!Allowed or Unallowed (3) Eligibility
This condition resulted from the failure of management of Chattahoochee Technical Institute to provide an adequate system ofinternal controls for the Pell Grant program. Appropriate controls should be implemented and monitored by the Institute to ensure that the Pen Grant program is in compliance with the applicable rules and regulations.
FEDERAL FINANCIAL REPORTS Incorrect Student Payment Summary -Report Federal Financial Assistance Pen Grant Program (CFDA 84.063) Audit Control Number 827-96-03
For the year under review, the Student Payment Summary (SPS) report for the U. S. Department of Education indicated that the Institute incurred $549,454.00 in Federal Pen Grant program expenditures. This amount represented the Institute's authorized amount ofthe Federal Pen Grant award for fiscal year 1996. However, the Institute's accounting records reflected $562,402.75 in fiscal year 1996 Pell Grant payments or. $12,948.75 in excess ofthe authorized amount. In order to be reimbursed for the excess Pen Grant program expenditures, the Institute in conformity with Federal Statutes, must certify to the U. S. Department ofEducation the validity of these payments. The Federal agency can then make appropriate adjustments of the fiscal year 1996 authorized amount in order to make additional funds available to the Institute.
TYPES OF SERVICES/ALLOWED OR UNALLOWED Award not Properly Calculated Federal Financial Assistance Pen Grant Program (CFDA 84.063) Questioned Costs: $484.00 Audit Control Number 827-96-04
For the year under review, an examination of the records of twenty-five students who received Pen Grants revealed that one student was overpaid a total of$484.00. Federal regulation (34 CFR 690.62) states that the _ amount ofa student's Pell Grant for an academic year is based upon the payment and disbursement schedules published each award year by the U. S. Department of Education. The financial aid office awarded the overpayment to the student based on an incorrect expected family contribution.
-2-

CHATTAHOOCHEE TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
CURRENT YEAR TYPES OF SERVICES/ALLOWED OR UNALLOWED Award not Properly Calculated Federal Financial Assistance Pell Grant Program (CFDA 84.063) Questioned Costs: $484.00 Audit Control Number 827-96-04 The Institute should establish procedures to ensure that financial aid awards are made in accordance with appropriate Federal regulations. Reimbursement of$484.00 should be secured for refund to the Pell Grant program. ELIGffiILITY Ineligible Student Receiving Student Aid Federal Financial Assistance Pell Grant Program (CFDA 84.063) Questioned Costs: $146.00 Audit Control Number 827-96-05 For the year under review, an examination of the records of twenty-five students who received Pell Grants revealed that one student was overpaid a total of$146.00. Federal regulations (34 CFR 668.7,668.16 and 690.75) state that a student should maintain satisfactory academic progress to be eligible to receive a Pell Grant payment. The overpayment to the student was for the 1996 Spring quarter for which the student had become ineligible due to not maintaining satisfactory academic progress in accordance with the Institute's policy. This questioned cost occurred because the financial aid office failed to adequately monitor the student's academic progress. The Institute should establish procedures to ensure that financial aid awards are made in accordance with appropriate Federal regulations. Reimbursement of$146.00 should be secured for refund to the Pell Grant program.
-3-