CHATTAHOOCHEE TECHNICAL COLLEGE MARIETTA, GEORGIA INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREEDUPON PROCEDURES FOR FISCAL YEAR ENDED JUNE 30, 2009 Georgia De partment of Audits and Accounts Russell W. Hinton State Auditor CHATTAHOOCHEE TECHNICAL COLLEGE - TABLE OF CONTENTS - INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES EXHIBITS A SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT 1 B STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING SOURCE COMPARED TO BUDGET 2 RUSSELL W. HINTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 December 4, 2009 Members of the State Board of Technical and Adult Education Members of the Local Board of Directors Honorable Ron Jackson, Commissioner and Honorable Sanford Chandler, President Chattahoochee Technical College Independent Accountant's Report on Applying Agreed-Upon Procedures Ladies and Gentlemen: We have performed the procedures enumerated below, which were agreed to by the College and the System Office (Oversight Unit) of the Technical College System of Georgia, solely to assist you in assessing the accuracy of the annual financial statement information reported to the System Office by the College for inclusion in the State of Georgia's Comprehensive Annual Financial Report (CAFR) and Single Audit Report; and to assist you in assessing the accuracy of budget basis information provided in the Summary Budget Comparison and Surplus Analysis Report and Statement ofProgram Revenues and Expenditures by Funding Source Compared to Budget, which is attached as Exhibits A and B, respectively. Chattahoochee Technical College's management is responsible for the financial information reported to the System Office of the Technical College System of Georgia. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of the parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. 1. Review selected balance sheet items reported on the annual financial statement worksheets (cash, accounts receivable, accounts payable, deferred revenues, net assets). Confirm that these items have adequate supporting documentation and are properly reconciled to the College's general ledger. We did not note any exceptions as a result of our procedures. 2. Obtain the College's GAAP basis worksheets for Statement ofNet Assets and Statement of Revenues, Expenses and Changes in Net Assets (SRECNA) information that was submitted for inclusion in the State's CAFR and Single Audit. Utilizing test scripts, confirm that financial information presented in these worksheets properly support activity reported in the College's accounting records. We did not note any exceptions as a result of our procedures. 3. Obtain the College's Statement of Cash Flows submitted for inclusion in the State's CAFR and Single Audit. Utilizing cash flow worksheets, confirm information reported on Statement of Cash Flows. We did not note any exceptions as a result of our procedures. 4. Obtain the College's worksheets for financial statement note disclosure information submitted for inclusion in the State's CAFR and Single Audit. Utilizing notes worksheets and other supporting documentation confirm that note disclosures related to Cash, Investments, Accounts Receivable, Capital Assets, Long-Term Debt, Lease Obligations and Retirement Plans have been properly reported. We did not note any exceptions as a result of our procedures. 5. Review the College's year end GAAP basis journal entries. Obtain documentation for GAAP journal entries and confirm that the entries were posted to the College's annual financial statement worksheets. We did not note any exceptions as a result of our procedures. 6. Confirm that State Appropriation revenues, receivables and remittances ofprior year surplus balances have been properly recorded in the College's financial records. Prior year surplus balances should be netted against State Appropriation revenues in the GAAP basis financial statements; however, prior year surplus balances should be reflected as fund balance adjustments on the Budget basis financial statements. We did not note any exceptions as a result of our procedures. 7. Obtain listing ofwrite-offrequests for accounts receivable less than $3,000.00 for fiscal year 2009. Confirm that these write-off requests have been approved by the State Accounting Officer and have been posted to the College's financial statements. We did not note any exceptions as a result of our procedures. 8. Verify that the listing of salaries, travel, and professional services reported to the Department of Audits is in accordance with O.C.G.A. 50-6-27 reconciles to amounts recorded in the College's financial statements. We did not note any exceptions as a result of our procedures. 9. Review the year end Budgetary Statements including the Summary Budget Comparison and Surplus Analysis Report (Exhibit A) and Statement ofProgram Revenues and Expenditures by Funding Source Compared to Budget (Exhibit B). Confirm that budget information presented in these statements supports activity reported in the College's accounting records and determine if any budget overexpenditures exist. We did not note any exceptions as a result of our procedures. 10. Obtain documentation for Budget basis reserves reported by the College on the Summary Budget Comparison and Surplus Analysis Report (Exhibit A). Confirm that the reserves are properly documented, valid and appropriate. We did not note any exceptions as a result of our procedures. 11. Review the H.O.P.E. Scholarship Program reconciliation between the College and the Georgia Student Finance Commission. Confirm that information reported to the Georgia Student Finance Commission has been reconciled with H.O.P.E. Scholarship activity reported on the College's financial records. We did not note any exceptions as a result of our procedures. 12. Review the Schedule of Expenditures of Federal Awards information submitted by the College for inclusion in the Statewide Single Audit. Confirm that the infonnation is properly presented and supported by the College's accounting records. We did not note any exceptions as a result of our procedures. 13. Review capital asset records to ensure that ( 1) subsidiary ledgers are appropriately reconciled to the ledgers, (2) capitalization thresholds are being properly followed, and (3) a complete annual physical equipment inventory is being conducted and that issues noted during the physical inventory are being properly addressed by management. We did not note any exceptions as a result of our procedures. 14. Review bank reconciliations during the year under review to ensure that management is preparing them timely and that reconciling items are being addressed by management timely and in an appropriate manner. We did not note any exceptions as a result of our procedures. These agreed-upon procedures do not constitute an audit of the financial statements or any part thereof, the objective ofwhich is to express an opinion on the financial statements or a part thereof. Accordingly, we do not express such an opinion. Had we perfonned additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the specified users listed above and is not intended to be and should not be used by anyone other than these specified parties. Respectfully submitted, w.J~ sell W. Hinton, CPA, CGFM State Auditor RWH:as EXHIBITS CHATTAHOOCHEE TECHNICAL COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT YEAR ENDED JUNE 30, 2009 EXHIBIT "A" REVENUES State Appropriation State General Funds Federal Funds Other Funds Total Revenues CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance Total Funds Available EXPENDITURES Economic Development Technical Education Total Expenditures Excess of Funds Available over Expenditures FUND BALANCE JULY 1 Reserved Unreserved ADJUSTMENTS Prior Year Payables/Expenditures Prior Year Receivables/Revenues Unreserved Fund Balance (Surplus) Returned to Technical College System of Georgia Year Ended June 30, 2008 Refunds to Grantors Federal Financial Assistance Returned to Technical College System of Georgia Year Ended June 30, 2008 Other Prior Year Reserved Fund Balance Included in Funds Available FUND BALANCE JUNE 30 BUDGET ACTUAL VARIANCE FAVORABLE (UNFAVORABLE) $ 11,230,959.00 $ 11,230,959.00 $ 0.00 1,542,555.33 1,258,742.33 -283,813.00 13,2941 735.40 1112711558.54 -2 023 176.86 $ 26,068,249.73 $ 23,761,259.87 $ -2,306,989.86 0.00 112591099.95 112591099.95 $ 26 068 249. 73 $ 2510201359.82 $ -1 047 889.91 $ 124,741.55 $ 88,353.55 $ 2519431508.18 2412151839.53 $ 2610681249. 73 $ 2413041193.08 $ $ 0.00 $ 716,166.74 $ 36,388.00 117271668.65 1?641056.65 716 166.74 1,261,174.75 36,382.14 9,163.00 -23,21115 -36,382.14 -89.00 -1,985.80 -112591099.95 $ 702 118.59 SUMMARY OF FUND BALANCE Reserved Departmental Sales and Services Federal Financial Assistance Live Works Projects Continuing Education Technology Fees Total Reserved Unreserved Surplus $ 373,183.55 440.05 153,802.48 71,738.76 93 356.48 $ 692,521.32 9 597.27 Total Fund Balance $ ===7=0=2'=1=18==59= -1- CHATTAHOOCHEE TECHNICAL COLLEGE STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING SOURCE COMPARED TO BUDGET YEAR ENDED JUNE 30, 2009 Economic Development Other Funds Original AE112ro12riation Final Budget Current Year Revenues Funds Available Com1:1ared to Budget Prior Year Total Caret-Over Funds Available Variance Positive (Negative) 49 500.00 $ 124 741.55 $ 51 472.00 $ 36 881.55 $ 88 353.55 $ -36 388.00 Technical Education State Appropriation State General Funds Federal Funds American Recovery and Reinvestment Act of 2009 Federal Stabilization Funds Other Federal Funds Other Funds Total Technical Education 13,012,605.00 $ 11,230,959.00 $ 11,230,959.00 $ 0.00 $ 11,230,959.00 $ 0.00 0.00 842,079.19 10 033 350.36 $ 23,888,034.55 130,341.00 1,412,214.33 13,169 993.85 25 943 508. 18 130,341.00 1,128,401.33 11 220 086.54 0.00 0.00 1 222 218.40 130,341.00 1,128,401.33 12 442 304.94 23 709 787.87 $ 1222218.40 $ 24 932 006.27 $ 0.00 -283,813.00 -727 688.91 -1 011 501.91 Grand Totals - All Programs 23,937,534.55 $ 26,068,249.73 $ 23,761,259.87 $ 1,259,099.95 $ 25,020,359.82 $ -1,047,889.91 2- EXHIBIT"B" Expenditures Compared to Budget Variance Actual Positive (Negative) Actual Funds Available Over/(Under) Expenditures Prior Period Adjustments Other Adjustments Total Program Fund Balances Transfers Program Fund Balances Reserve ~ Total 88 353.55 $ 36 388.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ ~ $ 0.00 11,230,959.00 $ 130,341.00 1,127,961.28 11 726 578.25 $ 24 215 839.53 $ 0.00 $ 0.00 $ 0.00 $ 0.00 284,253.05 1443415.60 1727668.65 0.00 440.05 715 726.69 0.00 0.00 -14 048.15 716 166.74 $ -14 048.15 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 0.00 0.00 0.00 o.oo 0.00 0.00 0.00 440.05 0.00 440.05 0.00 440.05 0.00 701,678.54 ____MQ_ 692 081.27 9 597.27 701,678.54 0.00 702118.59 $ ~ $ 692 521.32 $ 9,597.27 $ 702118.59 24 304, 193,08 $ 1,764,056.65 $ 716,166.74 $ -14,048.15 $ 0.00 $ 702,118.59 $ ~ $ 692,521.32 $ 9,597.27 $ 702,118.59