Management report, Chattahoochee Technical Institute, Marietta, Georgia, an organizational unit of the state of Georgia, year ended June 30, 1998

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MANAGEMENT REPORT CRATTAHOOCHEE TECHNICAL INSTITUTE
MARIETTA, GEORGIA AN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA
YEAR ENDED JUNE 30, 1998
'C. ..
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASH I NGTON STREET ATLANTA, GEORGIA 30334-8400

CHATTAHOOCHEE TECHNICAL INSTITUTE MANAGEMENT REPORT - TABLE OF CONTENTS -

LETTER OF TRANSMITTAL

SECTION I

SELECTED FINANCIAL INFORMATION

EXHIBITS

A ANALYSIS OF CHANGES IN FUND BALANCE

BUDGET FUND

1

SCHEDULES OF FUNDS AVAILABLE AND EXPENDITURES

COMPARED TO BUDGET

BUDGET FUND

B

"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

2

C

"B" LOTTERY FOR EDUCATION

3

D RECONCILIATION OF SALARIES AND TRAVEL

4

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

CLAUDE L. VICKERS
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
September 18, 1998

Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members of the State Board of Technical and Adult Education Members of the Local Board of Directors
and Honorable Harlon Crimm, President Chattahoochee Technical Institute
Ladies and Gentlemen:
As part of our audit of the statutory basis financial statements of the State of Georgia presented in the Report ofthe State Auditor, the general purpose financial statements of the State of Georgia presented in the State ofGeorgia Comprehensive Annual Financial Report, and the issuance of a Statewide Single Audit Report pursuant to the Single Audit Act Amendments, as of and for the year ended June 30, 1998, we have perfonned certain audit procedures at Chattahoochee Technical Institute. Accordingly, the financial statements and compliance activities of Chattahoochee Technical Institute were examined to the extent considered necessary in order to express an opinion as to the fair presentation ofthe financial statements contained in the foregoing documents and to issue reports on compliance and internal control as required by the Single Audit Act Amendments of 1996.
This Management Report contains infonnation pertinent to the financial and compliance activities of Chattahoochee Technical Institute as of and for the year ended June 30, 1998. The particular infonnation provided is enumerated in the Table of Contents.
This report is intended solely for the use of management of Chattahoochee Technical Institute. However, this report is a matter of public record and its distribution is not limited.
Respectfully submitted,
W ~~~~ /~
Claude L. Vickers State Auditor
CLV:gp

SECTION I SELECTED FINANCIAL INFORMATION
"..

CHATIAHOOCHEE TECHNICAL INSTITUTE ANALYSIS OF CHANGES IN FUND BALANCE
BUDGET FUND YEAR ENDED JUNE 30,1998

EXHIBIT "A"

FUND BALANCE - JULY 1
Reserved Surplus
ADDITIONS
Adjustments to Prior Year's Accounts Payable Excess of Funds Available over Expenditures
Exhibit "B" Exhibit"C"
DEDUCTIONS
Unreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and Adult Education - Administrative Central Office Year Ended June 30, 1997
Adjustments to Prior Year's Accounts Receivable Refunds to Grantors
Georgia Department of Technical and Adult Education - Administrative Central Office Federal Financial Assistance
Reserved Fund Balance Carried Over from Prior Year as Funds Available

"An
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

"8"
LOTIERYFOR EDUCATION

TOTAL

$

12,627,32

$

12,627.32

17,976.62 $

724.62

18,701,24

$

30,603.94 $

724.62 $

31,328.56

$

12,709.19 $

2,162.31 $

14,871.50

21,247,87

1,096.99

21,247,87 1,096.99

$

33,957,06 $

3,259.30 $

37,216,36

$

17,976.62 $

724.62 $

18,701.24

6,330.21

6,330.21

181,75

181.75

12,002,52

12,002.52

$

36A91.10 $

724.62 $

37,215.72

FUND BALANCE - JUNE 30

$

28,069.90 $

3,259.30 $

31,329.20

"
SUMMARY OF FUND BALANCE

Reserved Federal Financial Assistance For Refund to Georgia Department of Technical and Adult Education - Administrative Central Office For Expired Grant Balances For Other Live Work Projects State Grants
Surplus

$

583.57

$

583.57

624.80

624.80

3,712.95

3,712.95

18,929.89

18,929.89

1,139.95

1,139.95

3,078.74 $

3,259.30

6,338.04

$

28,069.90 $

3,259.30 $ ====3=1,=32=9=.2==0

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CHATTAHOOCHEE TECHNICAL INSTITUTE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION YEAR ENDED JUNE 30, 1998

EXHIBIT"B"

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

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 6,809,941.00 $ 1,088,898.00 3,562,154.00
$ 11,460,993.00 $

6,809,941.00 $ 806,294.89
3,152,722.72
10,768,958.61 $

0.00 -282,603.11 -409,431.28
-692,034,39

0.00

12,002.52

12,002.52

$ 11,460,993.00 $ 10,780,961.13 $ _ _--=6...:..80.;;.:,,0,;;,.;3~1-=.8...;._7

EXPENDITURES
Personal Services-I nstitutions Operating Expenses-Institutions

$ 8,645,510.00 $ 2,815,483.00

8,357,521.85 $ 2,402,191.41

287,988.15 413,291.59

$ 11,460,993.00 $ 10,759,713.26 $

7_01-,,2_7_9_,7_4

Excess of Funds Available over Expenditures

$

21,247.87 $ ======2=1=,2=4=7..8...7=

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CHATTAHOOCHEE TECHNICAL INSTITUTE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"B" LOTTERY FOR EDUCATION YEAR ENDED JUNE 30,1998

EXHIBIT"C"

FUNDS AVAILABLE REVENUES
State Appropriations

BUDGET

ACTUAL

VARIANCE FAVORABLE (UNFAVORABLE)

$

65,000.00 $

65,000.00 $ - - - - -0.0-0

EXPENDITURES Equipment-Technical Institutes

$

65,000.00 $

63,903.01 $ -----=1,0-9-6.-99-

Excess of Funds Available over Expenditures

$

1,096.99 $ ===1=,0=9=:6=.9==9

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CHATTAHOOCHEE TECHNICAL INSTITUTE RECONCILIATION OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30. 1998

EXHIBIT"D"

Totals per Annual Supplement

Accruals June 30, 1998 June 30, 1997

Adjustments

Shared Services on Jointly Staffed Personnel

North Metro Technical Institute

Hanson,

Sue Powers

Savannah Technical Institute

Nation,

Bamby

SALARIES $ 6,738,397.49 $

TRAVEL 81,569.45

197,405.15 -142,723.15

-184.00

-7,397.40 -17,525.44

$ 6,768,156.65 $=:::::=::8=1,=38=5=.4:=:5

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

CHATTAHOOCHEE TECHNICAL INSTITUTE AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1998

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

827-95-01 FS-827-97-01 FS-827-97-02 FS-827-97-03

Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Partially Resolved - See Corrective ActionlResponses

CORRECTIVE ACTIONIRESPONSES

REVENUES/RECEIVABLES/RECEIPTS Student Accounts Receivable not Supported by Financial Aid Amount: $17,955.25 Finding Control Number: FS-827-97-03

Although the number of ineligible student awards has been significantly reduced, the procedures that were established to eliminate this problem were not implemented until the fourth quarter of the year under review. The effectiveness of these procedures will be evaluated during the first quarter of the subsequent year to ensure that financial aid is properly awarded before funds are disbursed.

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

827-95-03 827-96-01 827-96-02 827-96-03 827-96-04 827-96-05 FA-827-97-01 FA-827-97-02 FA-827-97-03 FA-827-97-04

Partially Resolved - See Corrective ActionlResponses

Previously Reported Corrective Action Implemented

Previously Reported Corrective Action Implemented

Partially Resolved - See Corrective ActionlResponses

Partially Resolved - See Corrective ActionlResponses

"..

Previously Reported Corrective Action Implemented

Previously Reported Corrective Action Implemented

Previously Reported Corrective Action Implemented

Partially Resolved - See Corrective ActionlResponses

Previously Reported Corrective Action Implemented

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CRATTAHOOCHEE TECHNICAL INSTITUTE AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1998
PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
CORRECTIVE ACTIONIRESPONSES
REPORTING Incorrect Student Payment Summary Report Finding Control Number: 827-95-03
The auditors have certified the validity of the awards made by the Institute in accordance with procedures provided in Dear Colleague letter P-97-2 dated June 1997. The Institute will submit its request for Pell Grant adjustments to the U. S. Department of Education no later than September 30, 1998.
REPORTING Incorrect Student Payment Summary Report Finding Control Number: 827-96-03
The Institute has followed procedures in Dear Colleague letter P-97-2 to have six Pell Grant awards certified by state auditors. These adjustments will be submitted to the U. S. Department of Education no later than September 30, 1998.
ACTIVITIES ALLOWED OR UNALLOWED Award not Properly Calculated Finding Control Number: 827-96-04
The Institute will establish an accounts receivable in the amount of $484.00 for the Pell Grant overpayment to the student and will begin collection attempts effective October 1, 1998.
REPORTING Incorrect Student Payment Summary Report Amount: $3,612.00 Finding Control Number: FA-827-97-03
The Institute has established procedures to ensure correct reporting of Federal Pell Grant Program expenditures before the administrative deadline established by the U. S. Department of Education. The Institute will follow procedures provided in Dear Colleague letter P-97-2 to have the validity of the awards made in the award year 1996-97 certified by the state auditors no later than January 31,1999. The Institute will submit these adjustments to the U. S. Department of Education in order to receive appropriate adjustments to the FY 97 authorized amounts before June 30, 1999.
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