Management report, Chattahoochee Technical Institute, Marietta, Georgia, an organizational unit of the state of Georgia, year ended June 30, 2000

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS G,A A ioo
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MANAGEMENT REPORT CHATTAHOOCHEE TECHNICAL INSTITUTE
MARIEITA,GEORGIA
AN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA YEAR ENDED JUNE 30, 2000
Russell W. Hinton State Auditor

CHATTAHOOCHEE TECHNICAL INSTITUTE MANAGEMENT REPORT - TABLE OF CONTENTS -

LETTER OF TRANSMITTAL

SECTION I

SELECTED FINANCIAL INFORMATION

EXHIBITS

A ANALYSIS OF CHANGES IN FUND BALANCE

BUDGETFUND

1

SCHEDULESOFFUNDSAVAILABLEANDEXPENDITURES

COMPARED TO BUDGET

BUDGET FUND

B

"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

2

C

"B"LOTTERYFOREDUCATION

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

SECTION ill CURRENT YEAR FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

RussELL W. HINTON
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
November 9, 2000

Honorable Roy E. Barnes, Governor Members of the General Assembly of Georgia Members of the State Board of Technical and Adult Education Members of the Local Board ofDirectors
and Honorable Harlen Crimm, President Chattahoochee Technical Institute
Ladies and Gentlemen:
As part ofour audit ofthe statutory basis financial statements ofthe State ofGeorgia presented in the State ofGeorgia Report ofthe State Auditor, the general purpose financial statements ofthe State of Georgia presented in the State ofGeorgia Comprehensive AnnualFinancial 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, 2000, we have performed 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 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 Chattahoochee Technical Institute as of and for the year ended June 30, 2000. The particular information provided is enumerated in the Table of Contents.
This report is intended solely for the information and use ofmanagement and members ofthe Local Board ofDirectors of Chattahoochee Technical Institute and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
~~t\~/B~ State Auditor
RWH:jb

SECTION I SELECTED FINANCIAL INFORMATION

CHATTAHOOCHEE TECHNICAL INSTITUTE ANALYSIS OF CHANGES IN FUND BALANCE
BUDGET FUND YEAR ENDED JUNE 30, 2000

EXHIBIT "A"

FUND BALANCE-JULY 1, 1999
Reserved Surplus
ADDITIONS
Adjustments to Prior Year's Accounts Payable Excess of Funds Available over Expenditures
Exhibit "B"
DEDUCTIONS
Unreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and Adult Education - Administrative Central Office Year Ended June 30, 1999
Adjustments to Prior Year's Accounts Receivable
Refunds to Grantors Federal Financial Assistance Georgia Department of Technical and Adult Education - Administrative Central Office Other Office of School Readiness Pre-Kindergarten
Reserved Fund Balance Carried Over from Prior Year as Funds Available
FUND BALANCE - JUNE 30, 2000

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR
EDUCATION

$

43,932.83

1 709.76 $

2 586.71

$

45,642.59 $

2 586.71

$

30,573.85 $

50,341.92

$

80 915.77 $

76.36 76.36

$

1,709.76 $

22,667.23

175.90 163.47

3,990.07

38,889.54

$

67 595.97 $

$

58,962.39 $

2,586.71
2,586.71 76.36

SUMMARY OF FUND BALANCE
Reserved Federal Financial Assistance For Continuation of Program For Refund to Grantor Agency Georgia Department ofTechnical and Adult Education - Administrative Central Office Other Live Work Projects State Grants For Refund to Grantor Agency Other
Surplus
- 1-

$

4,916.00

842.52 6,499.59 30,139.23

1 074.67

$

43,472.01

15490.38 $

$

58,962.39 $

76.36 76.36

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, 2000

EXHIBIT"B"

FUNDS AVAILABLE

REVENUES

State Appropriation

$

Federal Revenues

Other Revenues Retained

$

CARRY-OVER FROM PRIOR YEAR

Transfer from Reserved Fund Balance

BUDGET
7,774,082.00 $ 922,208.00
3,924,489.00 12,620,779.00 $
0.00

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

7,774,082.00 $ 798,963.35
3,430,824.51
12,003,869.86 $

0.00 -123,244.65 -493,664.49
-616,909.14

38,889.54

38,889.54

EXPENDITURES
Personal Services-Institutions Operating Expenses-Institutions Capital Outlay
Year 2000 Project Funding

$ 12,620,779.00 $ 12,042,759.40 $ - - --5-78-,01-9.6-0

$

9,515,600.00 $

9,234,047.09 $

3,078,579.00

2,734,152.62

10,000.00

10,000.00

16,600.00

14 217.77

281,552.91 344,426.38
0.00 2,382.23

$ 12,620,779.00 $ 11,992,417.48 $ -----6-2'8',3-6-1.-52-

Excess of Funds Available over Expenditures

$

50,341.92 $ =======5=0=,3=4=1-=9=2

-2-

CHATTAHOOCHEE TECHNICAL INSTITUTE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"B" LOTTERY FOR EDUCATION YEAR ENDED JUNE 30, 2000

EXHIBIT"C"

FUNDS AVAILABLE REVENUES
State Appropriation

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$

4,045,904.00 $

1,529,443.04 $ _ _-,;;;;;2:..;;.5..;_;16;;.!.,4..;.;6;.;:;0.;.:.9..;:_6

EXPENDITURES Equipment-Technical Institutes

$

4,045,904.00 $

1,529,443.04 $

2,516,460.96

---'----'---

Excess of Funds Available over Expenditures

$

o.oo $ =====o=.o=o

-3-

CHATTAHOOCHEE TECHNICAL INSTITUTE RECONCILIATION OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2000

EXHIBIT"D"

Totals per Annual Supplef'11ent

Accruals June 30, 2000 June 30, 1999

Adjustments

Shared Services on Jointly Staffed Personnel

North Metro Technical Institute

Hanson,

Sue Powers

SALARIES

TRAVEL

$

7,448,887.45 $

111,248.79

146,928.48 -193,868.82

-22,190.40

$

7,379,756.71 $ =====1=11,;:l,,2=4=8=.7=9

-4-

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, 2000

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

827-95-03 827-96-03 827-96-04 FA-827-97-03

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

CORRECTIVE ACTION/RESPONSES

REPORTING Incorrect Student Payment Summary Report Finding Control Number: 827-95-03

Final reconciliation of the adjustments to be made on the Student Payment Summary Report has been prepared and will be sent to the U. S. Department of Education by November 30, 2000, following procedures in Dear Colleague letter P-97-2.

REPORTING Incorrect Student Payment Summary Report Finding Control Number: 827-96-03

The final step ofthe adjustment process has not been implemented. A final reconciliation of the student accounts must be completed and then sent to the U. S. Department of Education following the guidelines ofDear Colleague letter P-97-2 by December 31, 2000.

REPORTING Incorrect Student Payment Summary Report Amount: $3,612.00 Finding Control Number: FA-827-97-03

The Institute must have the student awards certified by the state auditors before submission to the U.S. Department ofEducation for adjustment. Arrangements will be made to have the certification performed in order to submit the adjustments before June 30, 2001, following the provisions in Dear Colleague letter P-97-2.

SECTION III CURRENT YEAR FINDINGS AND QUESTIONED COSTS

CHATTAHOOCHEE TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
CASH AND CASH EQUNALENTS Inadequate Accounting Procedures Finding Control Number: FS-827-00-01
For the year ended June 30, 2000, Chattahoochee Technical Institute's accounting procedures were not sufficient to provide for adequate control over the bank reconciliation process. The following deficiencies were noted:
(1) The monthly bank statements for the Institute's accounts were not reconciled to the general ledger on a timely basis.
(2) Adjustments were not made to the general ledger on a timely basis for items appearing on the bank reconciliations needing correction on the accounting records. Adjustments were necessary to balance the general ledger with the reconciled bank accounts.
(3) Some reconciling items appearing on the bank reconciliation did not have supporting documentation.
The Institute should establish the necessary procedures to ensure that bank accounts are properly reconciled on a monthly basis and needed adjustments are posted to the general ledger in a timely manner.