Review report, state of Georgia, Columbus Technical Institute, Columbus, Georgia, year ended June 30, 1994

STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334

REVIEW REPORT STATE OF GEORGIA COLUMBUS TECHNICAL INSTITUTE . COLUMBUS, GEORGIA YEAR ENDED JUNE 30, 1994

COLUMBUS TECHNICAL INSTITUTE - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

FINANCIAL STATEMENTS

A COMBINED BALANCE SHEET (STATIITORY BASIS)

ALL FUND TYPES AND ACCOUNT GROUPS

2

B COMBINED STATEMENT OF CHANGES IN FUND BALANCES (STATIITORY BASIS)

ALL FUND TYPES

5

C STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

6

STATEMENTS OF FUNDS AVAILABLE AND EXPENDITURES

COMPARED TO BUDGET

BUDGET FUND

D

"A"DEPARTMENTOFTECHNICALANDADULTEDUCATION

8

E

"B"LOITERYFOREDUCATION

9

F STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

FIDUCIARY FUND TYPE- NONEXPENDABLE TRUST FUND

10

G NOTES TO THE FINANCIAL STATEMENTS

11

SUPPLEMENTARY INFORMATION

H COMBINING BALANCE SHEET (STATUTORY BASIS)

BUDGET FUND

24

I COMBINING STATEMENT OF CHANGES IN FUND BALANCE

(STATUTORY BASIS)

BUDGET FUND

25

J COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

26

K COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABllJTIES

FIDUCIARY FUND TYPE- AGENCY FUNDS

28

SCHEDULES

1 CASH AND CASH EQUIVALENTS

29

2 INVESTMENTS

30

3 SCHEDULE OF FEDERAL REVENUES

31

4 RECONCll.IATION OF SALARIES AND WAGES, AND TRAVEL

32

COLUMBUS TECHNICAL INSTITIJTE
- TABLE OF CONTENTS -
SECTIONil FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION I FINANCIAL

. CLAUDE L. VICKERS STATE AUDllOR (404) 656-2174
TAX RATIO (404) 656-0494

~.eparlm.eut nf ~uhits
254 WASHINGTON STREET. S. W ROOM 214
J\tlnnht, (lr').eorgin 30334-8400
October 20, 1994

FINANCIAL AUDITS (404) 656-2180
PROGRAM AUDllS (404) 656-2006

Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members ofthe State Board ofTechnical and Adult Education Members of the Local Board ofDirectors
and Honorable W. G. Hartline, President Columbus 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 (Exhibits A through G) of Columbus Technical Institute as of and for the year ended June 30, 1994, 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 ofthe management of Columbus Technical Institute.
A review consists principally ofinquiries ofInstitute 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, with the exception ofthe matter described in the following paragraph, 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 ofaccounting described in Note 1.
As more fully discussed in Section II, Findings and Improper or Questioned Costs, material discrepancies were noted in the equipment inventory records of Columbus Technical Institute. Equipment inventory comprises the General Fixed Assets Account Group. We were unable to determine the effects these discrepancies may have on the financial statements.

94ARL-ST

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 H through K and Schedules I through 4) is presented only for supplementary analysis purposes. Such information has been subjected to the inquiries and analytical procedures applied in the review of the financial statements, and we are not aware of any material modifications that should be made thereto.
Respectfully submitted,

CLV:gp 94ARL-5T

~A'!~
Claude L. Vickers State Auditor

FINANCIAL STATEMENTS - 1-

COLUMBUS TECHNICAL INSTITUTE COMBINED BALANCE SHEET (STATUTORY BASIS)
ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30. 1994

Alli.li Cash and Cash Equivalents
(See Schedule) Investments
(See Schedule) Accounts Receivable
State Funds Federal Financial Assistance Other
Advance to Other Funds Prepaid Items Fixed Assets
Equipment Amounts to be Provided for Payment of:
Accrued Compensated Absences Capital Lease Connitments

GOVERNMENTAL

FIDU~IARY FUND TYPES

FUND TYPE NONEXPENDABLE

~

TRUST

illfil

$ 192,597.47 $ 5,500.54 $
$ 150,726.41
$ 29,287.72 22,498.49 ~4,l9Q.53
$ 1~5.976.74 $ 6.925.0Q $ 1,022,26

29,672.94

Total Assets
LIABILITIES AHO FUND EQUITY L1abi1 fties
Accounts Payable Salaries Pahable Pa1roll Wit holdings De erred Revenue
Tuition and Fees Funds Held for Others Advance from Other Funds Comfensated Absences Cap ta1 Leases
Total Liabilities Fund Equity
Investment in General Fixed Assets Fund Balance
Reserved Endowment Corpus Federal Financial Assistance For Ex~ired Grant Balances For Ot er Live Work Projects Prior Year Local Funds Private Grants
Unreserved Designated Surplus Regular Undesignated Total Fund Equity
Total Ltabtltttes and Fund Equity

$ 336.521.47 $ 156.226.95 $ 29.672.94

$ 237,734.32 0.00
695.00 38,593.00
$ 277,022.~2

$ 22,747.94 6,925.00
$ 29,672,24

$ 100,000.00

$

585.00

80.49

36,468.62

19,866.90

2,095.97

402.17

56,226.95

$ 52,429,15 $ 156,226,25

$ 336.522.47 $ 1561226.95 $ 29,672.94

See Independent Accountant's C011bined Report on Review of Financial State11ents and Supplementary Information. The notes to the financial statements are an integral part of this statement.
- 2-

EXHIBIT "A"

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

TOTALS {Memorandum Only) JUNE 30. 1994 JUNE 30. 1993

$ 227 770.95 $ 141. 984. 23

$ 150,726.41 $ 153,695.61

$ 29,287.72 $ 11,870.98 22,498.49 113,373.40 84.19Q.53 123.767,17

$ US,97. 74 $ 249,Qll.5~

$ 6,925.00 $

0.00

$ 1.022.2 $

0.00

$ 3,793,477.25

$ 3,793,477.25 $ 3,295,255.33

$ 421,750.87 $ 421,750.87 $ 456,306.43

37,093.35

37,093.35

41,583.94

$ 458,844.22$ 458,844.22$ 497.890.37

$3,793,477.25$ 458,844.22$ 4,774,742.83$ 4,337,837.09

$ 237,734.32$ 163,052.62

0.00

7,772.84

695.00

569.05

$ 421,750.87 37,093.35

38,593.00 22,747.94 6,925.00 421,750.87 37,093.35

43,681.00 35,897.99
0.00 456,306.43 41.583,94

$ 458,844.22$ 765,539.48$ 748,863.87

$3,793,477.25

$3,793,477.25$ 3,295,255.33

100.000.00 585.00 80.49
36,468.62 19,866.90 2,095.97

100.000.00 38.50 0.00
25,738.86 28,449.79 2,095.97

$ 3,793,477.25

402.17 5.226.95

82,764.01 54,630.76

$ ~.009.203.35 $3,588,973.22

$3,193,477.25$ 458,844.22$ 4.774.742.83 $ 4,337,837.09

- 3-

.f-t
7\\)17\Q

COLUMBUS TECHNICAL INSTITUTE COMBINED STATEMENT OF CHANGES IN FUND BALANCES {STATUTORY BASIS)
ALL FUND TYPES YEAR ENDED JUNE 30, 1994

EXHIBIT "B"

TOTALS

GOVERNMENTAL
---FU-BN-UD-D-G-ET-TY-P-E--

FIDUCIARY FUND TYPE
N--O-N-E-X-P-EN--D-A-B-L-E TRUST
-------------

J---U---N---E--------3-(M---0---,e---m---1Yo---9Er-A-9-a-nR4--d--u--Em--NJ-U--D-N--E-ODE---n---l---3y---)0---,------1---9---9---3

FUND BALANCES - JULY 1
----------------------

Reserved Unreserved
Designated UnSdeusrfglunsated

$ 56,323.12 $ 100,000.00 $ 156,323.12 $ 147,916.50

82,764.01

82,764.01

47,463.52

-------------

54,630.76
-------------

-----5-4-,6--3-0-.7--6

54,778.88
-------------

$ 139,087.13 $ 154,630.76 $ 293,717.89 $ 250,158.90
------------- ------------- ------------- -------------

ADDITIONS
---------

Adfustments to Prior Year's

ccounts Payable

$ 22,553.00

Excess of Funds Available over Expenditures

$ 22,553.00 $ 3,403.47

Exhibit "C" Excess of Revenues over Expenditures

83,985.17

83,985.17

135,736.51

Exhibit "F" Prior Year's Checks Voided Reimbursement of Prior Year's Expenditures

$ 128.59 585.00

1,596.19

1,596.19 128.59 585.00

-148.12 0.00 0.00

------------- ------------- ------------- -------------

$ 107,251.76 $ 1,596.19 $ 108,847.95 $ 138,991.86
------------- ------------- ------------- -------------

DEDUCTIONS
----------

Unreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and Adult Education Administrative Central Office Year Ended June 30, 1992 Year Ended June 30, 1993
Adiustments to Prior Year's ccounts Receivable
Refunds to Granters Georgia Department of Education Jo Trainin~ Partnership Act Georgia Depar ment of Labor Trade Adjustment Assistance - Workers Georgia Department of Technical and Adult Education - Administrative Central Office Federal Financial Assistance Muscogee County School District Vocational Education - Basic Grants to States
Reserved Fund Balance Carried Over from Prior Year as Funds Available

$

0.00

82,764.01

46,796.26

198.16 745.34

12.85
38.50 56,284.62
-------------

$

0.00 $ 47,463.52

82,764.01

0.00

46,796.26

0.00

198.16

0.00

745.34

0.00

12.85

185.57

38.50

0.00

56,284.62

47,783.78

------------- -------------

$ 186,839.74
-------------

$ 186,839.74 $ 95,432.87
------------- -------------

FUND BALANCES - JUNE 30
-----------------------

(To Exhi bt t "A")

$.....5.9.,4.9..9..1.5.

$ 156,226.95
--

$...215,.72.6...1.0.

$...2.9.3.,7..17..8.9.

See Independent Accountant's COllbtned Report on Review of financial Stateaenta end Suppleaentery lnfonution. The notes to the financial 1tetement1 are an integral part of this statement.
-s-

COLUMBUS TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30. 1994

EXHIBIT c
Page 1

FUNDS AVAILABLE REVENUES
STATE FUNDS Allotment from Georgia Department of Technical and Adult Education - Administrative Central Office
FEDERAL REVENUES (See Schedule) OTHER REVENUES RETAINED
Contract Muscogee County School District Tech-Prep Program
Donations Fees
Application Late Registration Parking Registration/Continuing Education Testing Other Interest Earned Reimbursements From Various Sources Rents Sales and Services (Net) Tuition Other Sources
Total Other Revenues Retained Total Revenues CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance Live Work Projects Prior Year Local Funds Private Grant Total Carry-Over from Prior Year

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30. 1993

$ 5,875,120.40$ 5.382,U8.27 $ 1.026.471.58 $1,098,197.74

$ 10,298.26$ 10,000.00

0.00

3,865.00

22,771.00 3,550.00 7,917.70 329,710.90 8,258.00 8,893.99
752.44

25,955.08 2,357.00 7,002.00
434,396.62 3,743.68 8,917.18 805.67

56,328.33 2,138.42 57,432.19 790,077.20
11 .982.44

. 35,000.00 1,585.24
45,818.07 794,283.26
3,633.97

$ l,310,110.87 $ 1 .377 .362. 77

$ 8.211.702.85 $ 7,857,678.78

$ 25,738.86$ 20,139.66

28,449.79

27,644.12

2,095.97

0.00

$ 56,284.62 $ 47,783.78

Total Funds Available

$ 8 1267 1987.47 $ 71905.462.56

EXPENDITURES

PERSONAL SERVICES-INSTITUTIONS

Salaries and Wages Employer's Contributions for:
F. I .C.A. Retirement Health Insurance Liability Insurance Unemploraent Compensation Insurance Workers Compensation Insurance

$5,077,235.79$ 4,895,807.15

112,907.29 585,255.47 598,579.27 18,796.00
113,,389472..0000

105,700.36 556,801.00 564,624.11
14,155.00 1,189.00 8,699.00

$6,408,012.82$ 6,146,975.62

OPERATJNG EXPENSES-INSTITUTIONS

Other Costs

Motor Vehicle Expenses

Supplies and Materials

Repairs and Maintenance

Utilities

Rents (Other than Real Estate)

Insurance and Bonding

Other Operating Expenses

Publications and Printing

Travel

_

$ 2,946.91 $ 6 741.88

343,256.05 351:s29.71

129,038.14 109,584.09

274,637.85 245,136.41

1,318.10

5,029.63

10,120.65

18,298.00

136,477.79 322,918.72

15,059.90

17,366.99

25,544.83

37,452.63

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-

COLUMBUS TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "C" Page 2

EXPENDITURES OPERATING EXPENSES-INSTITUTIONS
Equipment Equipment Purchases Lease/Purchase of Equipment Rental of Equipment
Computer Charges Other Costs Supplies and Materials Software Equipment Equipment Purchases
Telecommunications Per Diem, Fees and Contracts
Per Diem and Fees Contracts
QUICK START PROGRAM Personal Services Salaries and Wages Eployer's Contributions for: F. I .C.A. Retirement Health Insurance Other Costs Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utll i ti es Other Operating Expenses Travel Equip111ent Lease/Purchase of Equipment Rental of Equipment Telecommunications Per Diem, Fees and Contracts Per Diem and Fees
JOB TRAINING PARTNERSHIP ACT Personal Services Salaries and Wages Employer's Contributions for: F. I.C.A. Retirement Health Insurance Other Costs Supplies and Materials Other Operating Expenses Travel
EQUIPMENT - STATE SCHOOLS Computer Charges Software Equip.ant Equipment Purchases
Total Expenditures Exe of Funds Available over Expenditures

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30. 1993

$ 140,026.18 $ 154,803.72

19,865.68

20,378.60

1,950.85

8,315.74

1,476.42 40,319.65

33,574.89 16,506.66

206,377.29 36,362.91

91,621.65 35,147.90

21,369.84 3.789,40

35,098.48 IQ.~5~.7

$ 1,409,938.44 $ 1,520,061.46

$

0.00 $ 33,887.88

0.00

457.22

0.00

4,002.12

0.00

4,232.40

0.00 2,114.83 3,567.88 21,780.69
0.00 0.00

29.05 17,436.43 3,346.84 28,338.66
723.61 364.98

3,692.29 0.00
5,675.60

0.00 4,202.98 5,666.80

133.76

0,00

$ 36,965.05 $ 102,688.97

$ 13,357.76$

0.00

1,021.87

0.00

1,782.21

0.00

1,669.72

0.00

68.97

0.00

1,467.69

0.00

665.77

0.00

$ 20,033.99 $

0.00

$ 25,217.10$

0.00

283,834.90

0.00

$ 309,052.00 $

Q.QO

$ 8,184,002.30$ 7,769,726.05

83,985,17

135,736.51

$ B1l67 19B7.47 $ 71905.462.56

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

and Supp eaentary Information.

.

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

- 7-

COLUMBUS TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"A" DEPARTMENT OF TECHNICAL ANO ADULT EDUCATION
YEAR ENDED JUNE 30. 1994

EXHIBIT "D"

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

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$5,567,381.00$ 5,566,068.40$ -1,312.60 1,136,691.00 1,026,471.58 -110,219.42 1,454,964.00 1,310,110.87 -144,853.13
$8,159,036.00$ 7,902,650.85$ -256,385.15

2,624.00

56,284.62

53,660.62

EXPENDITURES
Personal Services-Institutions Operating Expenses-Institutions Quick Start Program Job Training Partnership Act

$8,161,660.00$ 7,958,935.47$ -202,724.53
----- ------------- -------------

$6,523,502.00$ 6,408,012.82$

1,560,992.00 1,409,938.44

37,307.00

36,965.05

39,859.00

20,033.99

115,489.18 151,053.56
341.95 19,825.01

Excess of Funds Available over Expenditures

$8,161,660.00$ 7,874,950.30$ 286,709.70
............. ------------- -------------
$ 83,985.17$ 83,985.17
---- ----

See Independent Accountant's Coabtned Report on Review of financial Statements and Suppleaent1ry Jnforutlon. The notes to the financial statements are an Integral part of this statement.
- 8-

COLUMBUS TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET
BUDGET FUND
"B" LOTTERY FOR EDUCATION
YEAR ENDED JUNE 30. 1994

EXHIBIT "E"

FUNDS AVAILABLE REVENUES
State Funds
EXPENDITURES Equipment - State Schools
Excess of Funds Available over Expenditures

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 309,671.00$ 309,052.00$

619.00

----- ------------- -------------

$ 309,671.00$ 309,052~00 $

619.00

---- ------------- -------------

$

0.00 $

0.00

See Independent Accountant's Combined Report on Review of Financial Stateaent1 and Suppleaentary Jnfonutlon. The notes to the financial statements are an Integral part of this statement.
- 9-

COLUMBUS TECHNICAL INSTITUTE
STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "F"

REVENUES
Interest Earned
EXPENDITURES
Personal Services Salaries and Wages Employer's Contributions for:
F. I.C.A.
Retirement Health Insurance
Total Expenditures
Excess of Revenues over Expenditures FUND BALANCE JULY 1, 1993
FUND BALANCE JUNE 30, 1994

CARL PATRICK CHAIR

$

5,585.97

$ 3,066.92_
122.41 414.38 386.07
-------------
$ 3,989.78
-------------
$ 1,596.19
154,630.76
-------------
$.1..5.6.,.226.9.5.

See Independent Accountant COllbined Report on Review of Financial Stateents and Supplementary Infonnatton. The notes to the financial statements are an integral part of this statement.
- 10 -

COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT"G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Columbus Technical Institute is one oftwenty-eight (28) State supported member institutes of postsecondary education in Georgia which comprise the Georgia Department of Technical and Adult Education, an organizational unit ofthe State of Georgia. The accompanying financial statements reflect the operations of Columbus Technical Institute as a separate reporting entity.
The Institute's Local Board ofDirectors is composed of eleven (11) members serving staggered three-year tenns who are appointed by the State Board ofTechnical and Adult Education. Appropriation of State funds is made to the Georgia Department ofTechnical and Adult Education by the General Assembly ofGeorgia. The Department's Administrative Central Office determines the amount of State funds to be received by Columbus Technical Institute. The Institute does not have authority to retain unexpended State funds (surplus) for any given fiscal year. Accordingly, Columbus Technical Institute is considered an organiz.ational unit ofthe Georgia Department ofTechnical and Adult Education for financial reporting purposes because of the significance of its legal, operational, and financial relationships as defined in Section 2100 of the Governmental Accounting Standards Board Codification ofGovernmental Accounting and Financial Reporting Standards.
FUND ACCOUNTING Columbus Technical Institute uses funds and account groups to report on its financial position and the results ofits operations determined in conformity with the accounting practices prescribed or permitted by statutes and regulations ofthe State ofGeorgia. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set ofaccounts. An account group, on the other hand, is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available financial resources.
Funds and account groups presented in the accompanying financial statements are as follows:
GOVERNMENTAL FUND 1YPE
BUDGET FUND - The fund used to account for activities and functions as set forth in the Amended Appropriations Act of 1993-1994. 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 identified 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 1YPES
NONEXPENDABLE TRUST FUND - The fund used to account for assets, revenues, and expenditures utilized in accordance with the provisions of the trust established by individual agreement, statute, or administrative action. Nonexpendable trust funds are used when only the revenues earned on the principal
- 11 -

COLUMBUS TECHNICAL INSTITUTE
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT"G"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
FIDUCIARY FUND TYPES (corpus) ofthe trust may be expended for the purposes designated in the trust agreement and the principal ofthe trust agreement must remain intact.
AGENCY FUNDS - The funds used to account for assets held for use by other funds, governments, or individuals.
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 historical cost. 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.
GENERAL LONG-TERM DEBT - The account group used to report the noncurrent portions ofcertain 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 current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues) and decreases (i.e., expenditures) in net current assets. Nonexpendable trust funds, on the other hand, should be accounted for on a flow ofeconomic resources measurement focus. With this measurement focus, all assets and all liabilities are included on the balance sheet. Operating statements of these funds present increases, (i.e., revenues) and decreases (i.e., expenses) in net total assets. In accordance with accounting practices prescribed or permitted by the State of Georgia, the Nonexpendable Trust Fund utilizes the current financial resources measurement focus.
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 ofaccounting. Under the modified accrual basis ofaccounting, revenues are recognized when suscepuole to accrual (i.e.,when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collect1ole within the current period or soon enough thereafter to be used to pay liabilities of the current period. Revenues that are accrued include primarily State funds. Federal grants and

- 12 -

COLUMBUS TECHNICAL INSTITUTE
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT"G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPE BUDGET FUND
entitlements, and certain amounts earned under operating agreements with other parties. Further, the modified acaual basis ofaccounting calls for expenditures, other than accrued interest ofgeneral long-term debt, to be recorded when the related fund liability is incurred.
Contractual obligations for services which have not been performed and for goods which have not been delivered 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 ofthe State ofGeorgia, but is not consistent with generally accepted accounting principles, which provide for the recording ofencumbrances 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.
Prior period adjustments 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 prescnbed 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 TYPES NONEXPENDABLE TRUST FUND
The Nonexpendable Trust Fund is maintained in accordance with the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be detennined and "available" means collectible within the rurrent period or soon enough thereafter to be used to pay liabilities ofthe current period. Revenues that are accrued include primarily interest income and certain amounts earned under terms ofthe trust agreements. Expenditures are recorded when the related fund liability is incurred. This basis of accounting differs from generally accepted accounting principles in that nonexpendable trust funds should be maintained on the accrual basis of accounting.
A Statement ofCash Flows is not presented for the Nonexpendable Trust Fund in the accompanying financial statements as required by generally accepted accounting principles.
AGENCY FUNDS Agerq Funds are custodial in nature in that assets are equally offset by liabilities to other funds, governmental units, or individuals. The modified accrual basis ofaccounting is utilized for recognizing assets and liabilities.

- 13 -

COLUMBUS TECHNICAL INSTITUTE
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BUDGET
The Georgia Department of Technical and Adult Education - Administrative Central Office receives State appropriated funds 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 1993-1994. 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.

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

INVESTMENTS Investments are defined as those financial instruments with terms of three months or more from the date of purchase held for the production of revenue. Investments are stated at cost.

ACCOUNTS RECEIVABLE Acc.ounts receivable consists of allotments due from the Administrative Central Office ofthe Department of Technical and Adult Education, reimbursements due from Federal. State, local and private grants and contracts, and other receivables disclosed from information available.

INVENTORIES No inventories ofsupplies are reported in the current 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:

ENDOWMENT CORPUS

The principal (corpus) ofthe Carl Patrick Chair fund. This amount is restricted to provisions ofthe trust

agreement.



FEDERAL FINANCIAL ASSISTANCE
EXPIRED GRANT BALANCES
Expired grant balances represent the unexpended balance ofFederal financial assistance, other than through the Administrative Central Office ofthe Department ofTechnical and Adult Education, remaining after the expiration ofthe Federal program/project. This amount is refundable to the applicable grantor.

- 14 -

COLUMBUS TECHNICAL INSTITUTE
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT"G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
RESERVED FUND BALANCE
FEDERAL FINANCIAL ASSISTANCE 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 The accumulated balance of unexpended funds derived from student live work projects. This amount is restricted to expenditures for live work projects in subsequent fiscal years.
PRIOR YEAR LOCAL FUNDS Effective July 1, 1987, Columbus Technical Institute became a part ofthe Georgia Department ofTechnical and Adult Education. The Official Code of Georgia Annotated Section 20-4-23 provides the Institute may retain for future operations "...any unexpended nonstate funds that have been collected by, appropriated for, or otherwise earmarked for use by said postsecondary technical school operated by a local board of education or an area board.... These unexpended local funds are available for use 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.
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 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 ofannual leave paid to terminated employees.
The liability for compensated absences at year-end is reported in the General Long-Tenn Debt Account Group for governmental funds.
MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the Combined Statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changes in financial position in confonnity with generally accepted accounting principles. Neither are such data comparable to a consolidation. lnterfund eliminations have not been made in the aggregation ofthis data.
- 15 -

COLUMBUS TECHNICAL INSTITIITE
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXlllBIT "G"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
COMPARATIVE DATA Comparative total data for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the Institute's financial position and operations. However, comparative data have not been presented in all statements because their inclusion would make certain statements unduly complex and difficult to understand.
Certain reclassifications have been made to the comparative data in order to provide comparability with the current year classifications.
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 any one or more ofthe following securities as enumerated in the Official Code ofGeorgia Annotated Section 50-17-59:
(1) Bonds, bills, notes, certificates ofindebtedness, or other direct obligations ofthe United States or ofthe State ofGeorgia.
(2) Bonds, bills, notes, certificates of indebtedness, or other obligations of the counties or municipalities ofthe State ofGeorgia.
(3) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose.
(4) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State o f Georgia.
(5) Bonds, bills, notes, certificates ofindebtedness, or other obligations ofa subsidiary corporation ofthe United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Banlc, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
(6) Guarantee or insurance ofaccounts provided by the Federal Deposit Insurance Corporation.
As authorized in the Official Code ofGeorgia Annotated Section S0-17-S3, the State Depository Board has adopted policies which allow agencies ofthe State ofGeorgia (which include technical institutes) the option ofexempting demand deposits from the collateral requirements.
- 16 -

COLUMBUS TECHNICAL INSTITUTE
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "G"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS

COLLATERALIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, cash deposits consists of all bank balances which include demand deposits and/or interest bearing accounts. These bank balances 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 lnstitute's name.

Category 2 - Amounts collateraliz.ed with securities (at market value) held by the financial institution's trust department or agent in the lnstitute's name.

Category 3 - Amounts collateralized with securities (at market value) held by the 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 37789736 s 6s21116 s 20000000 s 46891116 s_____oHloo~

NOTE 3: CAPITAL LEASES

Columbus Technical Institute acquires certain equipment through multi-year capital leases with varying terms and options. These agreements contain fiscal funding clauses in accordance with Official Code of Georgia Annotated Section 50-5-64 which proluoits the creation ofa debt to the State ofGeorgia for the payment of any sums under such agreements beyond the fiscal year ofexecution ifappropriated funds are not available. Ifrenewal ofsuch agreements is reasonably assured, however, capital leases which require appropriation by the General Assembly of Georgia are considered noncancellable for financial reporting purposes.

At June 30, 1994, future minimum lease payments under capital leases are as follows:

Fiscal Year Ending June 30
1995 1996 1997 1998 1999 Total Future Minimum Lease Payments Less: Amounts Representing Interest Present Value ofFuture Minimum Lease Payments

$ 23,798.44 11,443.13 3,932.76 3,932.76 330 74
$ 43,437.83
6,344.48
S 37,09335

- 17 -

COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "G"

NOTE 4: CHANGES IN GENERAL FIXED ASSETS

In accordance with the statutory definition ofmoveable personal property (Official Code of Georgia Annotated Section 50-16-161), only those items with an acquisition cost of $1,000.00 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:

Balance July I, 1993 Retroactive Restatement ofPrior Year Balance
Additions Deductions Balance June 30, 1994

$ 3,295,255.33 -95,227.32
$ 3,200,028.01 593,449.24 0.00
S 3,793,477.25

NOTE 5: GENERAL LONG-TERM DEBT

CHANGES IN GENERAL LONG-TERM DEBT A summary ofchanges in General Long-Term Debt for the year ended June 30, 1994, follows:

Balance July 1, 1993

Compensated Absences

Capital Leases

Total

s 456,306.43 S 41,583.94 s 497,890.37

Additions Annual Leave Earned and Utilized (Net) Salaries and Wages Salary-Related Fringe Benefits(*) Current Year Leases
Deductions
Balance June 30, 1994

-44,413.64 9,858.08
s ~21,Z~Q.Z s

13,487.00 17,977.59

-44,413.64 9,858.08 13,487.00 17,977.59

JZ,Q23.3~ $ ~5,~,22

(*) Includes salary-related fringe benefits applicable to compensated absences at July 1, 1993.

NOTE 6: DEFERRED COMPENSATION PLAN

The State ofGeorgia offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to employees of the State of Georgia and county health departments, permits 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

- 18 -

COLUMBUS TECHNICAL INSTITUTE
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT"G"

NOTE 6: DEFERRED COMPENSATION PLAN
compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts ofcompensation 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 ofa general creditor of the State ofGeorgia in an amount equal to the fair market value of the deferred account of each participant. Financial information relative to the plan is presented in the financial report of the State Personnel Board Merit System ofPersonnel Administration for the year ended June 30, 1994.
NOTE 7: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA TEACHERS RETIREMENT SYSTEM OF GEORGIA Substantially all employees are members of the Employees' Retirement System of Georgia or the Teachers Retirement System ofGeorgia. The Employees' Retirement System ofGeorgia is a single-employer, defined benefit pension plan, while the Teachers Retirement System ofGeorgia is a cost-sharing multiple-employer public employee retirement system.
These Retirement Systems were established by the General Assembly of Georgia for the purpose of providing retirement allowances for employees ofthe State ofGeorgia. Both Retirement Systems are funded through a combination of employee and employer contributions. Employees are required to contribute a graduated percentage ofannual compensation. Employer contributions are for a specified percentage of active member payroll determined annually by an actuarial valuation. During the year ended June 30, 1994, the Institute contributed $110,868.73 to the Employees' Retirement System ofGeorgia and $475,273.19 to the Teachers Retirement System of Georgia. Participation in either Retirement System is not segregated by employee groups of individual governmental units and the Institute has no further liability under either Retirement System other than future employer contnoutions as established for each fiscal year. Information relative to each plan's description, funding status, and historical trends is presented in the financial reports of the Employees' Retirement System ofGeorgia and the Teachers Retirement System ofGeorgia for the year ended June 30, 1994.
GEORGIA DEFINED CONTRIBUTION PLAN The State ofGeorgia provides retirement coverage for temporary, seasonal, and part-time employees who are not eligible for membership in the Retirement Systems referred to above through a single-employer defined contnbution plan. The Georgia Defined Contribution Plan was established by the General Assembly of Georgia and is administered by the Board of Trustees of the Employees' Retirement System of Georgia. Covered employees are required to contnoute 7.5% of their gross salary, with no matching contribution by the employer. A member who terminates employment may apply for a refund of contributions and interest. Benefits are based solely on the amount contnbuted by the employee plus investment earnings. Upon disa'etion ofthe Board ofTrustees. members who leave employment with less than $3,500.00 credited to their account may be required to make a lump-sum withdrawal. Members are eligible to retire at the age of 65 with the option ofreceiving a periodic payment based on mortality tables and interest accumulation as adopted by
- 19 -

COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, I 994

EXHIBIT "G"

NOTE 7: RETIREMENT PLANS
GEORGIA DEFINED CONTRIBUTION PLAN the Board of Trustees of the Employees' Retirement System of Georgia. Information relative to the plan description and funding status is presented in the financial report of the Employees' Retirement System of Georgia for the year ended June 30, I 994.
NOTE 8: LEAVE POLICIES
Employees earn annual leave ranging from one and omHp.Jarter days to one and three-quarter days each month depending upon the employees' length ofcontinuous State service with a maximum accumulation offorty-five days. Employees are paid for unused ~ e e l annual leave upon retirement or termination ofemployment See Note 1 - Compensated Absences
Employees earn one and one-quarter days ofsick 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 and.sick leave are entitled to additional service credit in the Employees' Retirement System ofGeorgia.
NOTE 9: NONMONETARYTRANSACTIONS
The Administrative Central Office ofthe Georgia Department ofTechnical and Adult Education used lottery proceeds to purchase $280,062.53 ofequipment for Columbus Technical Institute during the fiscal year ended June 30, 1994. Those items with an acquisition cost ofSl,000.00 or greater will be reflected as received in the Genetal 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 Fmancing and Investment Commission (GSFIC), a unit of State government, is responsible for the issuance ofstate 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 ofcapital outlay projects. During the fiscal year ended June 30, 1994, the Georgia State Financing and Investment Commission paid $297,288.59 to various vendors for approved projects related to Columbus Technical Institute.
NOTE 10: CONTINGENCIES
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. This could result in refunds to the grantor agency for any e,cpenditures which are disallowed under grant terms. The amount of expenditures which may be disallowed by the grantor cannot be determined at this time although the Institute expects such amounts, ifany, to be immaterial to its overall financial position.
- 20 -

COLUMBUS TECHNICAL INSTITUTE
NOTES TO TIIB FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT"G"

NOTE 10: CONTINGENCIES
Litigation, claims and assessments filed against Columbus Technical Institute (as a unit of the Department of Technical and Adult Education), if any, are generally considered to be actions against the State of Georgia.
Pursuant to the Official Code of Georgia Annotated, the Department of Administrative Services maintains a
program of purchased insurance and self-insurance which provides coverage for such litigation, claims and
assessments. Accordingly, significant litigation, claims and assessments pending against the State of Georgia
are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1994.
NOTE 11: BONDING INFORMATION
The President and all employees of Columbus Technical Institute ai_:e bonded under a Public Employees Blanket Bond written by the Employers Insurance ofWausau, their Bond No.1450-00-110723, on which the
premium was paid to October 1, 1994. Under this agreement, the public employee dishonesty coverage insures
Columbus Technical Institute to a maximum ofSl,000,000.00 against loss sustained through fraudulent or
dishonest acts by its employees. The faithful performance of duty coverage insures the Institute to a maximum
of $100,000.00 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 of their position or employment.
All employees ofColumbus Technical Institute are also bonded under a Commercial Crime Policy written by the United States Fire Insurance Company, their Policy No. 626 011675 2, on which the premium was paid
to October 1, 1994. Under this additional public employee dishonesty coverage, the policy insures the Institute to a maximum of$4,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees.

- 21 -

LZ
lV0Jf~-

SUPPLEMENTARY INFORMATION
- 23 -

ASSETS

COLUMBUS TECHNICAL INSTITUTE COMBINING BALANCE SHEET fSTATUTORY BASISl
BUDGET FUND JUNE 30 1 1994

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR EDUCATION

EXHIBIT "H" TOTAL

Cash and Cash Equivalents Accounts Receivable
State Funds Federal Financial Assistance Other
Advance to Other Funds Prepaid Items

$ 178,269.99 $ 14,327.48 $ 192,597.47
------------- ------------- -------------

$ 6,971.72 $ 22,316.00 $ 29,287.72

22,498.49

22,498.49

84,190.53

84,190.53

------------- ------------- -------------

$ 113,660.74 $ 22,316.00 $ 135,976.74
------------- ------------- -------------

$ 6,925.00
-------------

$ 6,925.00
-------------

$ 1,022.26
-------------

$ 1,022.26
-------------

Total Assets
LIABILITIES ANO FUND EQUITY
Liabi1 ities Accounts Payable Payroll Withholdings Deferred Revenue Tuition and Fees
Total Liabilities
Fund Equity Fund Balance Reserved Federal Financial Assistance For Expired Grant Balances For Other Live Work Projects Prior Year Local Funds Private Grants Unreserved Designated Surplus Regular Lottery for Education
Total Fund Equity

$.2.9.9.,.8.7.7...9.9. $ 36,643.48 $ 336,521.47
--------- -------------

$ 201,090.84 $ 36,643.48 $ 237,734.32

695.00

695.00

38,593.00

38,593.00

------------- ------------- -------------

$ 240,378.84 $ 36,643.48$ 277,022.32
------------- ------------- -------------

$

585.00

80.49

36,468.62

19,866.90

2,095.97

$

585.00

80.49

36,468.62

19,866.90

2,095.97

402.17

402.17

$

0.00

0.00

------------- ------------- -------------

$ 59,499.15 $

0.00 $ 59,499.15

Total L1abl11tles and Fund Equity

$..2.9.9.,.8.7.7...9.9.$.....3.6.,6..4.3..4..8.$....3.3.6.,5.2.1...47

See acc011pany1ng notes and Independent Accountant's COlllblned Report on Review of Financial Statements and Supplementary Information.
- 24 -

COLUMBUS TECHNICAL INSTITUTE
COMBINING STATEMENT OF CHANGES IN FUND BALANCE {STATUTORY BASIS)
BUDGET FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "I"

FUND BALANCE - JULY 1 Reserved Unreserved Designated Surplus
ADDITIONS Adjustments to Prior Year's Accounts Payable Excess of Funds Available over Expenditures Exhibit "J" Prior Year's Checks Voided Reimbursement of Prior Year's Expenditures
DEDUCTIONS Unreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and Adult Education - Administrative Central Office Year Ended June 30, 1993 Adjustments to Prior Year's Accounts Receivable Refunds to Grantors Georgia Department of Education Job Training Partnership Act Georgia Department of Labor Trade Adjustment Assistance - Workers Georgia Department of Technical and Adult Education - Administrative Central Office Federal Financial Assistance Muscogee County School District Vocational Education - Basic Grants to States Reserved Fund Balance Carried Over from Prior Year as Funds Available
FUND BALANCE - JUNE 30 (To Exhibit H")

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR EDUCATION

TOTAL

$ 56,323.12

$ 56,323.12

82,764.01 $

0.00

82,764.01

------------- ------------- -------------

$ 139,087.13 $

0.00 $ 139,087.13

------------- ------------- -------------

$ 22,553.00 83,985.17$ 128.59 585.00
$ 107,251.76 $

$
0.00

22,553.00
83,985.17 128.59 585.00

0.00 $ 107,251.76

$ 82,764.01 $ 46,796.26

0.00 $

82,764.01 46,796.26

198.16 745.34

198.16 745.34

12.85

12.85

38.50

38.50

56,284.62

56,284.62

------------- ------------- -------------

$ 186,839.74 $

0.00 $ 186,839.74

------------- ------------- -------------

$ 59,499.15$

0.00 $ 59,499.15

---- ........... ----

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

COLUMBUS TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE ANO EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "J" Page 1

FUNDS AVAILABLE REVENUES
STATE FUNDS Allotment from Georgia De~artment of Technical and Adult Education - Administrative Central Office
FEDERAL REVENUES OTHER REVENUES RETAINED
Contract Muscogee County School District Tech-Prep Program
Fees Appltcat Ion late Registration Parking Registration/Continuing Educatlon Testing Other
Interest Earned Reimbursements
From Various Sources Rents Sales and Services (Net) Tuition Other Sources
Total Other Revenues Retained Total Revenues CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance live Work Projects Prior Year Local Funds Private Grant Total Carry-Over from Prior Year

"A"
DEPARTMENT OF TECHNICAL ANO ADULT EDUCATION

"8"
LOTTERY FOR EDUCATION

I2!Al..

$ 5,566,068.40 $ 309,052.00$ 5,875,120.40

$ 1,026,471.58

$ 1,026,471.58

$ 10,298.26 22,771.00 3,550.00 7,917.70 329,710.90 8,258.00 8,893.99 752.44 56,328.33 2,138.42 57,432.19
790,077.20 11,982.44 $ 1,310,110.87 $ 7,902,650.85 $

$ 10,298.26 22,771.00 3,550.00 7,917.70
329,710.90 8,258.00 8,893.99 752.44 56,328.33 2,138.42 57,432.19
790,077.20
U ,982.44
$ l,310,p0.87 309,052.00$ 8,211,702.85

$ 25,738.86 28,449.79 2,095.97
$ 56,284.62

$ 25,738.86 28,449.79 2,095.97
$ 56,284.62

Total Funds Available

$ 7,958,935.47 $ 309,052.00$ 8,267,987.47

EXPENDITURES PERSONAL SERVICES-INSTITUTIONS
Salaries and Wages, Employer's Contributions for:
F.I.C.A. Retirement Health Insurance liability Insurance Unemplo,rnent Compensation Insurance Workers Compensation Insurance
OPERATING EXPENSES-INSTITUTIONS
Other Costs Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utt11tlea Rents (Other than Real Estate) Insurance and Bonding Other Operating Expenses Publications and Printing

$ 5,077,235.79 112,907.29 585,255.47 598,579.27 18,796.00 1,392.00 l~,847.0Q
$ 6,408,012,82
$ 2,946.91 343,256.05 129,038.14 274,637.85 1,318.10 10,120.65 136,477.79 15,059.90

$ 5,077,235.79 112,907.29 585,255.47 598,579.27 18,796.00 1,392.00 1~.847,00
$ 6,408,012.82
$ 2,946.91 343,256.05 129,038.14 274,637.85 1,318.10 10 120.65 136:477 .79 15,059.90

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 26 -

COLUMBUS TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "J" Page 2

EXPENDITURES OPERATING EXPENSES-INSTITUTIONS
Travel Equipment
Equipment Purchases Lease/Purchase of Equipment Rental of Equipment Computer Charges Other Costs
Supplies and Materials Software Equipment
Equipment Purchases Telecommunications Per Diem, Fees and Contracts
Per Diem and Fees Contracts
QUICK START PROGRAM Other Costs Supplies and Materials Repairs and Maintenance Utilities Equipment lease/Purchase of Equipment Telecommunications Per Diem, Fees and Contracts Per Diem and Fees
JOB TRAINING PARTNERSHIP ACT Personal Services Salaries and Wages Employer's Contributions for: F. I.C.A. Retirement Health Insurance Other Costs Supplies and Materials Other Operating Expenses Travel
EQUIPMENT - STATE SCHOOLS Computer Charges Software Equipment Equipment Purchases
Total Expenditures Excess of Funds Available over Expenditures

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR EDUCATION

TOTAL

$ 25,544.83 140,026.18 19,865.68 1,950.85
1,476.42 40,319.65 206,377.29 36,362.91 21,369.84 3,789.40 $ 1,409,938.44

$ 25,544.83 140,026.18 19,865.68 1,950.85
1,476.42 40,319.65 206,377.29 36,362.91 21,369.84
3,789.40 $ 1,409,938.44

$

2,114.83

3,567.88

21,780.69

3,692.29 5,675.60

133.76

$ 36,965.05

$

2,114.83

3,567.88

21,780.69

3,692.29 5,675.-60

133.76

$ 36,965.05

$ 13,357.76 1,021.87 1,782.21 1,669.72 68.97 1,467.69 665.77
$ 20,033.99

$ 13,357.76 1,021.87 1,782.21 1,669.72 68.97 1,467.69 665.77
$ 20.033.99

$
$ $7,874,950.30$
83,985.17

25,217.10$ 25,217.10

283.834.90

283,834.90

309,052.00$ 309,052.00

309,052.00$ 8,184,002.30

0.00

83,985.17

s $ 7 1958 1935.47 $ 309 1052.00 8 1267 1987.47

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

COLUMBUS TECHNICAL INSTITUTE
COMBINING STATEMENT OF CHANGES IN ASSETS ANO LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS
YEAR ENDED JUNE 30. 1994

EXHIBIT "IC"

FUND
American Welding Society Faculty and Staff Funds Faculty Retirement Fund Flower Fund General Scholarship Fund HOPE Program Pell Grant Program Student Activities Fund Student Government Association Student Insurance Student Organization Fund Team 3 Activity Fund

ASSETS/ LIABILITIES JULY 1, 1993
------------

ADDITIONS
---------

DELETIONS
---------

ASSETS/ LIABILITIES JUNE 30, 1994
-------------

$

0.00 $

585.00 $

225.00 $

360.00

174.95

1,208.30

1,179.53

203. 72

438.23

1,640.77

1,724.30

354.70

597.62

268.00

329.62

12,268.37

8,495.97

9,710.45

11,053.89

0.00 148,699.00 148,699.00

0.00

13,311.00 1,332,725.00 1,339,118.10

6,917.90

5,607.85

12,009.28

10,652.21

6,964.92

1,039.46

1,039.46

0.00

2,568.00

2,341.50

2,127.00

2,782.50

-107.49

1,684.68

1,116.50

460.69

0.00

345.00

100.00

245.00

------------- ------------- ------------- -------------

35,897.99$ 1,509,734.50$ 1,515,959.55$ 29,672.94
------- ---------- ............. --------

See acc011panytng notes and Independent Accountant Combined Report on Revtew of Ftnanctal Stateaenta and Supplementary Information.
- 28 -

COLUMBUS TECHNICAL INSTITUTE CASH AND CASH EQUIVALENTS JUNE 30, 1994
NONINTEREST BEARING ACCOUNTS
Columbus Bank and Trust Company, Columbus, Georgia
INTEREST BEARING ACCOUNTS
Columbus Bank and Trust Company, Columbus, Georgia
Money Market Account (2.65%)
OTHER
Petty Cash

SCHEDULE "1"
$ 200,592.72
26,578.23 600.00
$ 227,770.95
---

See acc011panytng notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Infonnatton.
- 29 -

COLLMBUS TECHNICAL INSTITUTE INVESTMENTS
JUNE 30, 1994

SCHEDll.E "2"

NONEXPENDABLE TRUST FUND
----------------------
Carl Patrick Chair Colunbus Bank and Trust Canpany, Co1llllbus, Georgi a Certificate of Deposit No. 97443

-PI-R-C-H-A--SE---D-A-T-E

INTEREST RATE
-------------

MATIRITY DATE
-------------

AMOUNT

July 2, 1993

4.25%

------ June 26, 1995 $ 150,726.41

See accanpanylng notes and Independent Accountant's Ccm>lned Report on Review of Financial Statements and Supplementary lnfonnatlon.
- 30 -

COLUMBUS TECHNICAL INSTITUTE SCHEDULE OF FEDERAL REVENUES
YEAR ENDED JUNE 30. 1994

SCHEDULE "3"

BUDGET FUND
Education, U. S. Department of Vocational Education - Basic Grants to States Through Georgia Department of Technical and Adult Education - Administrative Central Office Through Muscogee County School District
Vocational Education - Community Based Organizations Through Georgia Department of Technical and Adult Education - Administrative Central Office
Energy, U. S. Department of State ~ergy Conservation Stripper Well Oil Violation Funds Through Georgia Department of Technical and Adult Education - Administrative Central Office
Labor, U. S. Department of Job Training Partnership Act Through City of Columbus Consolidated Government Through Georgia Department of Labor Through Georgia Department of Technical and Adult Education - Administrative Central Office

CFDA NUMBER

AMOUNT

B4.048 84.048
84.174

$ 853,335.58 29,860.97
17,275.24

81.041
17.250 17.250 17.250

18,222.19
79,221.49 8,522.12 20,033.99
$1..,0.26.,.4.7.1...5.8.

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

COLUMBUS TECHNICAL INSTITUTE
RECONCILIATION OF SALARIES AND WAGES. AND TRAVEL YEAR ENDED JUNE 30. 1994

SCHEDULE "4"

Totals per Annual Supplement Accruals June 30, 1994 June 30, 1993
Totals per Report
SUMMARY BY OBJECT CLASS
BUDGET FUND Personal Services-Institutions Operating Expenses-Institutions Job Training Partnership Act
NONEXPENDABLE TRUST FUND Carl Patrick Chair

SALARIES AND WAGES
---------
$ 5,101,433.31 $

TRAVEL 25,519.21

934.99

-7,772.84

-243.60

------------- -------------

$5,093,660.47$ 26,210.60
............. =

$ 5,077,235.79
$
13,357.76

25,544.83 665. 77

$5,090,593.55$ 26,210.60

3,066.92

$5,093,660.47$ 26,210.60 m

See accompanying notes and Independent Accountant's Combined Report on Revtew of Ftnanctal Statements and Supplementary Information.
- 32 -

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

COLUMBUS TECHNICAL INSTITUTE
SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994

STATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR QUESTIONED COSTS

The status of the findings disclosed in the review report for the year ended June 30, 1993, is summarized below:

Audit Control Number

Status of Finding

828-91-01 828-93-01 828-93-02 828-93-03 828-93-04 828-93-05

Corrective Action Implemented See Audit Control Number 828-94-01 Corrective Action Implemented Corrective Action Implemented Corrective Action Implemented Corrective Action Implemented

PRIOR YEAR/CURRENT YEAR

GENERAL FIXED ASSETS/PROPERTY MANAGEMENT - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Equipment Inventory Records Audit Control Number 828-94-01

The review report for the year ended June 30, 1993, disclosed that the equipment inventory records for Columbus Technical Institute's general fixed assets were deficient. For the year under review, the equipment inventory records were again deficient and these deficiencies are noted as follows:

(1) Equipment inventory records were not updated for additions or deletions in a timely manner.

(2) A sample offorty-four equipment items selected for physical examination revealed that two items
on the equipment subsidiary records could not be located and four items were physically located
but were not included as a part ofthe subsidiary records.

The Institute should follow established procedures to ensure that equipment inventories are maintained in accordance with provisions ofFederal Regulations and the State Property System Manual.

As a result of the discrepancies identified above, we were unable to determine the validity of the total equipment inventory valuation contained in the equipment inventory records, which comprises the General Fixed Assets Account Group.

Memorandum Only
Federal Grantor Agencies affected: U.S. Department ofEducation U. S. Department of Energy
U. S. Department ofLabor

COLUMBUS TECHNICAL INSTITUTE
SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1994
CURRENT YEAR
CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Vocational Education - Basic Grants to States (CFDA 84.048) Audit Control Number 828-94-02
A review of cash management procedures for the Vocational Education - Basic Grants to States Program disclosed that cash draws, utilizing the cash request method, were made in advance of immediate cash needs, resulting in the accumulation ofexcessive cash balances. During fiscal year 1994, the program had an average cash balance of$28,467.64 with excessive ending monthly cash balances in four months.
Procedures should be implemented to minimize the time elapsing between the transfer offunds from Georgia Department ofTechnical and Adult Education and disbursement of such funds by the Institute.
CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Pell Grant Program (CFDA 84.063) Audit Control Number 828-94-03
A review of cash management procedures for the Pell Grant Program disclosed that cash draws were made in advance of immediate cash needs. On August 31, 1993 and February 23, 1994, Columbus Technical Institute used ACH/EFT to drawdown funds which were disbursed on behalf ofthe students on September 7, 1993 and March 14, 1994, respectively. Federal cash drawdowns should not exceed the immediate need. For institutions using ACH/EFT immediate need is defined as need for a three-day period.
Procedures should be implemented by the Institute to ensure that requests for cash advances do not exceed the immediate need.
SPECIAL TESTS AND PROVISIONS Pell Grant Overpayments Federal Financial Assistance Pell Grant Program (CFDA 84.063) Amount: $2,806.00 Audit Control Number 828-94-04
For the year under review, an examination ofPell Grant Program awards revealed that the Institute overpaid eleven students totaling $2,806.00. The overpayments occurred due to clerical errors and the use of incorrect amounts for expected family contnl>ution in determining awards to students.
Procedures should be implemented by the Institute to ensure that students' grant awards are properly calailated and disbursed. The Institute should contact the Federal grantor agency regarding the resolution of this questioned cost.