Review report, state of Georgia, Columbus Technical Institute, Columbus, Georgia, year ended June 30, 1995

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, 1995

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 (STATUTORY BASIS)

ALL FUND TYPES AND ACCOUNT GROUPS

2

B STATEMENT OF CHANGES IN FUND BALANCES (STATUTORY BASIS)

ALL FUND TYPES

4

C STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

6

STATEMENTS OF FUNDS AVAILABLE AND EXPENDITURES

COMPARED TO BUDGET

BUDGET FUND

D

"A"DEPARTMENTOFTECHNICALANDADULTEDUCATION

10

E

"B" LOTTERY FOR EDUCATION

II

F STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

12

G NOTES TO THE FINANCIAL STATEMENTS

13

SUPPLEMENTARY INFORMATION

H COMBINING BALANCE SHEET (STATUTORY BASIS)

BUDGET FUND

32

COMBINING STATEMENT OF CHANGES IN FUND BALANCE

(STATUTORY BASIS)

BUDGET FUND

33

J COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

34

K COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

FIDUCIARY FUND TYPE - AGENCY FUNDS

38

SCHEDULES

I CASH AND CASH EQUIVALENTS

39

2 INVESTMENTS

40

3 SCHEDULE OF FEDERAL REVENUES

41

4 RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL

42

COLUMBUS TECHNICAL INSTITUTE -TABLE OF CONTENTS-
SECTION IT FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION! FINANCIAL

CLAUDE L. VICKERS
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street. S.W., Suite 214 Atlanta, Georgia 30334-8400
September 8, 1995

Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members of the State Board of Technical and Adult Education Members ofthe Local Board ofDirectors
and Honorable Eugene Demonet, 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, 1995, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. As described in Note I, 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 of inquiries oflnstitute personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware ofany material modifications that should be made to the accompanying financial statements in order for them to be in conformity with the basis of accounting described in Note I.
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

95ARL-4T

subjected to the inquiries and analytical procedures applied in the review ofthe financial statements, and we are not aware of any material modifications that should be made thereto.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:djf 95ARL-4T

FINANCIAL STATEMENTS - 1-

C8sh and cash Equivalents
Accoonts Receivable Slate Funds Federal Financial Assistance
"""
Advance to Other Funds
Prepaid Items
Fixed Assets Equipment
Amounts to be Provided for Payment of: Accrued Compensated Absences Cepital Lease Commitments

CO\ UMBUS TfCHNIQAI INSTITUTE CQMBINEO BALANQf SHEEr {STATLJTORY RAIS)
ALL FUND TYPES ANO ACCOUNT GROUPS
JUNE30 1995

GOVERNMENTAL FUND TYPE BUDGET

AOUCIARY FUND TYPES

NONEXPENOABLE

TRUST

AGENCY

236322.12 s _ _ _=38~1.25=
150726..41
29,081.09 96,955.18 175t026.98 $ ---=<=52""-1.80= $ _ __,c90,,.,,233=.2"-7 301063.25 $ ------=52""-1.80= ---"90"'233=.27"6925.00 33940.71

Total Assets

L]ARU ITIES AND FUNQ EQUITY
Liabilities Cash Overdraft Accounts Payable Payroll Withholdings Defened Rewnue Tuition and Fees Funds Held for Others Advance From Other Funds Compensated Absences Cap;talL_...,.
Total Liabilities
Fund Equity Investment in General Fixed Assets Fund Balance ReseMKI Endowment Corpus Federal Financial Assistance For Refund to Georgia Department of Technical and Adult Education - Administrative Central Office For Expired Grant Balances For Other LiveWorkProjects Prior Year Local Funds PrivateGrants Unreserved Designated Surplus Regular Lottery for Education Unclesignated
Total Fund Equity

Total Liabilities and Fund Equity

See Independent Accountants Combined Report on Review of Financial Statements and supplementary lnfmrlation.
The~ to the financial statements are an integral part of this statement

. 2.

578251.08 $

157 629.46 s _ _ _90_.:m..._21_

364,557.05 415.00
158.790.76
523,762.81

29,242.59
54,065.68 6,925.00
90,233.27

193.00 0.00 0.00
31,892.64 19,900.33
1,732.03

100,000-.00

752.39 17.88

57629.46

54488.27 $ --~5~7629=.46=

578251.08 $

157 629.46 $ _ _.9..0.233=.27"-

EXHIBIT"A"

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

TOTALS

(Memorandum Only)

JUNE30, 1995

JUNE30, 1994

4 167,496.09

236703.37 $ _---'m=,n'-'-o"".95"'-
150726.41 $ --~so~=='"'

29,081.09 S 96,955.18 271,782.05

29,287.72 22,498.49 84190.53

397,818.32 S --'"'35""9"'76"".7,c.4
--~'"25"".oo= s ___6"'925=.oo"'33,940.71 S ---'""OZ,=.26"-

416749609 S

3,793,477.25

412,549.79 $ 16,845.69
429395.48 $

412,549.79 S 16,845.69

421,750.87 37,093.35

429395.48 S _ _458=,844=.22=

4167 496.09 $

429395.48 S

5 423 005.38 $

4 TT4 742.83

4,167,496.09

412,549.79 16,845.69
429395.48 $

29,242.59 S 364,557.05
415.00

0.00 237,734.32
695.00

158,790.76 54.()65.68
6,925.00 412,549.79
16,845.69

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

1 043,391.56 $ _ _7~65"',539=.48"-

4,167,496.09 S

3,793,4TT.25

100,000.00

100,000.00

193.00 0.00 0.00
31,892.64 19,900.33
1,732.03

0.00
585.00 ao.49 36,468.62 19,866.90 2,095.97

4 167,496.09

752.39 17.88
57,629.46
4,379,613.82 $

402.17 0.00
56,226.95
4,009,203.35

4 167 496.09 $

429395.48 $

5423005.38 $

4 774 742.83

-3-

\
l7
1\) 'J (\ c:i

COLUMBUS TECHNICAL INSTITUTE
STATEMENT Of CHANGES IN FUND BA!ANCE (STATUTORY BASIS\
ALL FUND TYPES
YEAR ENDED JUNE 30 1995

EXHIBIT"B"

GOVERNMENTAL FUND TYPE BUDGET

FIDUCIARY FUND TYPE NONEXPENDABLE
TRUST

TOTALS

(Memorandum On!XJ

YEAR ENDED

JUNE 30, 1995

JUNE 30, 1994

FUNQ BAl,ANC!;S - JULY l

Reserved Unreserved
Designated Surplus
Undesignated

$

59,096.98 $

100,000.00 $

159,096.98 $

158,323.12

402.17

58,226.95

402.17 58,226.95

82,764.01 54,630.76

$

59,499.15 $

158,226.95 $

215,726.10 $

293,717.89

ADDITIONS

Adjustments to Prior Yea(s Accounts Payable

$

Excess of Funds Available over Expenditures

Exhibit"C"

Excess of Revenues over Expenditures

Exhibit"F"

Prior Yea(s Checks VOlded

Reimbursement of Prior Yea(s Expenditures

4,680.27
54,349.47
$ 30.00 154.64

$ 1,402.51

4,680.27 $
54,349.47
1,402.51 30.00
154.64

22,553.00
83,985.17
1,596.19 128.59 585.00

$

59,214.58 $

1,402.51 $

60,617.09 $

108,847.95

DEDUCTIONS

Unreserved Fund Balance (Surplus)

Returned to Georgia Department of Technical and

Adult Education - Administrative Central Office

Year Ended June 30, 1993

$

Year Ended June 30: 1994

Adjustments to Prior Yea(s Accounts Receivable

Refunds to Grantors

City of Columbus Consolidated Government

Job Training Partnership Act

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

Teeh Prep Education

Reserved Fund Balance Carried Over from

Prior Year as Funds Available

0.00 402.17 3,988.57
118.00 0.00 0.00
619.74
0.00 585.00 58,511.98

0.00 $ 402.17 3,988.57
118.00 0.00 0.00
619.74
0.00 585.00 58,511.98

82,764.01 0.00
46,796.26
0.00 198.16 745.34
12.85
38.50 0.00
58,284.62

$

64,225.46

$

64,225.46 $

186,839.74

FUND BALANCES - JUNE ;lQ (To Exhibit "A")

$

54,488.27 $

157,629.46 $

212117.73 $

215726.10

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 slatement. . 5.

CQI lJMBUS TECHNICAL INSTITUTE STATEMENT OF FUNps AVAIL ABLE ANQ EXPENfllTURES
BUDGET FUND
YEAR ENDED JUNE 30 1995

EXHIBIT"C"

FUNDS AVAILABLE
~
STATE FUNDS Allotment from Georgia Department of Technic:al and Adult Education - Administrative Central Offiee
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

TOTALS

YEAR ENDED

JUNE 30, 1995

JUNE 30, 1994

6,004,470.96 $ 1,129,052.77 $

5,875,120.40 1,026,471.58

0.00 $ 1,000.00
21,137.00 6,083.75 2,233.00 287,790.29 10,913.00 6,908.50
812.79 36,787.45
1,867.46 63,322.64 773,764.50 4,889.68
1,217,510.06 $
8,351,033.79 $

10,298.26 0.00
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
8,211,702.95

See Independent Accountanfs Combined Report on RevieW of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part ofthis statement.
-6-

COLUMBUS TECHNICAL INSTITIJTE STATEMENT OF RJNOS AVAU ABLE ANP EXPENQIIURFS
RUDGE! FUND YEAR, E:NDEP JUNE; 30 1995

EXHIBIT"C"

fUNPS AYAA-ABLE CABBY-QYEB fROM PBIQR YEAR
Tra,,_ from Reserwd Fund Balance Federal Anancial Assistance LlveWorkProjeds Prior Year Local Funds Private Grants
Tola! carry-Over from Prior Year
Total Funds Available

TOTALS

YEAR ENDED

JUNE 30, 1995

JUNE 30, 1994

80.49 $ 36,-468.62 19,866.90 2,095.97
58,511.98 $

0.00 25,738.86 28,449.79
2 095.97
56,264.62

s n s,409,545.

8.267,987.47

EXPENDITURES
PERSONAL SERVICES-INSmlJTIONs
Salaries and Wages Employer's Contributions for:
FJ.CA Retirement Health Insurance Liability Insurance Unemployment Compensaticxilnsurance Workers' Compensation Insurance
OPERATING EXPENSES-INSmUTIONS
OtherCosts Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Rents (Other than Reel Esmte) Insurance and Bonding other Operating Expenses Publications and Printing
See Independent Aocountanfs Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement.
7.

5,146,998.10 $
115,986.n 598,287.82 608,13727 31,439.00
6,819.00 15,609.00
6,523,276.96 $

s,on,235.79
112,90729 585,255A7 598,57927
18,796.00 1,392.00
13,647.00
6,408,012.82

5,102.93 $ 401,264.49 105,283.71 270,835.62
2,598.70 13,375.83 181,641.65 9,699.25

2,946.91 343,256.05 129,038.14 274,637.85
1,318.10 10,120.65 136,4TT.79 15,059.90

COLUMBUS TECHNICAL INSTITUTE STATEMENT OF RJNDS AVAILABLE ANP EXPENQITURES
BLJQGl;TFUND
YEAR ENDED JUNE 30 1095

EXHIBIT"C-

EXPENPITYRES
QPEBATING EXFtENSES - INSJITLJTIONS
T11MI Equipment
Equipment Purchases Lease/Purchase of Equipment Rental of Equipment Computer Charges other co.ts
Supplies and Materials Sollware Equipment
Equipment Purchases Tetecommunications Per Diem, Fees and Contracts
Per Diem and Fees Contracts
QUICK START PROGRAM
Personal Services Salaries and Wages Employer's Contribution$ for: F.I.CA Retirement Heatth lnsuranee
Olherco.ts Supplies and Materials Repairs and Maintenance Utilities other Operating"-
Travel Equipment
Lease/Purchase of Equipment Telec:ommunications Per Diem, Fees and Contracts
Per Diem and Fees
See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary 1-..ation.
The notes to the financial statements are an integral part of this statement.
8.

TOTALS

YEAR ENDED

JUNE 30, 1995

JUNE 30, 1994

28,523.91 $
326,110.43 19,865.68 1,525.56

25,544.83
140,026.18 19,865.88 1,950.85

0.00 41,756.46
0.00 49,469.41
21,556.69 0.00
1,478,810.32 $

1,476.42 40,319.65
206,3TT.29 36,362.91
21,369.84 3,789.40
1,409.938.44

38,200.40 $
504.83 4,450.80 4,710.72
247.86 6,772.57 26,433.52
371.14 163.26
3,932.76 7,188.91
0.00
92,976.77 $

0.00
0.00 0.00 0.00
2,114.83 3,567.88 21,780.69
0.00 0.00
3,692.29 5,675.60
133.76
36,965.05

CQLUMRLJS TECHNICAL INSTITUTE
STATEMENT OF FLJNQS AVAIUJ3LE AND EXPENQITURES BUQGETFUNP
YEAR ENDEP JUNE 30 1995

EXHIBIT"C"

EXPENpiTURE;S
JOB TRAINING PARTNERSHIP ACT
Personal Services Salaries and Wages Employe~s ~bulions for: F.I.CA Retirement Heattt, Insurance
OlherCosls Supplies and Materiats
Other Operating Expenses
Travel
EQUIPMENT-TECHNICAi INSmUTEs
Computer Chargas Software
Equipment Equipment Purchasas
Total Expenditures
Excess of Funds Available over Expenditures

TOTALS

YEAR ENDED

JUNE 30, 1995

JUNE 30, 1994

53,550.04 $
2,683.71 7,175.50 6,253.16
1,326.77 4,458.60 1,169.63
76,617.41 $

13,357.76
1,021.87 1,78221 1,669.72
68.97 1,467.69
6o5.77
20,033.99

0.00 $ 183,514.84 183,514.84 $ 8,355,196.30 $ 54,349.47

25,217.10 283,834.90 309,052.00 8,184,002.30 83,985.17

8,409,545.77 $

8,267,987.47

See Independent Accounlant's Combined Report on Review of Financial Statements and Supplementary lnfonnation.
The notes to the financial statements are an integral part of this statement.
9.

COLUMBUS TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"A" DEPARTMENT OF TECHNICAL AND ADU! T EDUCATION YEAR ENDED JUNE 30 1995

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)

$

5,821,178.00 $

5,820,955.96 $

1,172,399.00

1,129,052.77

1,439,896.00

1,217,510.06

$

8,433,473.00 $

8,167,518.79 $

-222.04 -43,346.23 -222,385.94
-265,954.21

27,278.00

58,511.98

31,233.98

$

8,460,751.00 $

8,226,030.77 $

-234,720.23

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

$

6,690,305.00 $

6,523,276.96 $

1,622,944.00

1,478,810.32

93,063.00

92,976.77

27,439.00

76,617.41

27,000.00

0.00

167,028.04 144,133.68
86.23 -49,178.41 27,000.00

$

8 460 751.00 $

8,171,681.46 $

289,069.54

Excess of Funds Available over Expenditures

$

54349.31 $

54349.31

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary lnfonnation.
The notes to the financial statements are an integral part of this statement. 10 -

COLUMBUS TECHNICAL INSTITUTE STATEMENT Of fUNQS AVAILABLE ANQ EXPENQITURES
COMPARED TO BUDGET
BUDGET fUNQ "B" LOTTERY fOR EDUCATION
VEAR ENDED JUNE 30 1995

EXHIBIT"E"

FUNDS AVAILABLE
~ State Funds

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

441 311.00 $

183,s1s.oo s ----=---'._796_.oo_

EXPENDITURES
Equipment-Technical lnstnutes Repairs and RenovatioM

184,311.00 $ 2ff7,000.00

183,514.84 $ 0.00

796.16 2ff7,000.00

441 311.00 $

183,514.84 $ ---=---',7_96_.16_

Excess of Funds Available over Expendnures

0.16 s =====o=.1=6

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an ntegral part of this statement.
-11 -

COLUMBUS TECHNCAl INSTITUTE STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCE
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30 1995

EXHIBIT"F"

CARL PATRICK CHAIR

Interest Earned
EXPENDITURES Personal Services Salaries and Wages
Employefs Contributions for:
F.I.C.A. Retirement
Health Insurance Total Expenditures
Excess of Revenues over Expenditures
FUND BALANCE JULY 1 1994
FUND BALANCE JUNE 30 1995

$ _ _ _6,,,,590=a.,.-12~

$

4,016.85

139.83 533.B6 497.07

$

5,187.61

$

1,402.51

156,226.95

$

157629.46

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. - 12 -

COLUMBUS TECHNICAL INSTITUTE NOTES TO TIIE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT"G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Columbus Tehnical Institute is one of twenty-nine (29) State supported member institutes of postsecondary education in Georgia which comprise the Georgia Department of Technical and Adult Education, an organizational unit of the State of Georgia. The accompanying financial statements reflect the operations of Columbus Technical Institute as a separate reporting entity.
The Institute's Local Board of Directors is composed of eleven (11) members serving staggered three-year terms who are appointed by the State Board of Technical and Adult Education. Appropriation of State funds is made to the Georgia Department of Technical and Adult Education by the General Assembly of Georgia. The Department's Administrative Central Office determines the amount of State funds to be received by 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 organizational 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 accounting practices prescribed or permitted by statutes and regulations ofthe State ofGeorgia. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating .compliance with finance-related legal and contractual provisions. The minimum number of funds are maintained consistent with legal and managerial requirements. Account groups are a reporting device used to account for certain assets and liabilities of the governmental funds not recorded directly in those funds.
Funds and account groups presented in the accompanying financial statements are as follows:
GOVERNMENTAL FUND TYPE
BUDGET FUND - The fund used to account for activities and functions as set forth in the Amended Appropriations Act of 1994-1995. 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 TYPES
NONEXPENDABLE TRUST FUND - The fund used to account for assets, revenues, and expenditures
- 13 -

COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT "G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
FIDUCIARY FUND TYPES 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 (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 cost or at estimated historical cost if historical cost is not practically determinable. Donated fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded values. No depreciation has been provided on general fixed assets.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not included in the General Fixed Assets Account Group. Material improvements adding to the value or useful life of the assets are included in the General Fixed Assets Account Group.
GENERAL LONG-TERM DEBT - The account group used to report the noncurrent portions of certain governmental long-term liabilities, such as claims, judgments, and compensated absences, which will be paid from future resources.
BASIS OF ACCOUNTING MEASUREMENT FOCUS
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. Governmental funds should be accounted for using the flow of current financial resources measurement focus. With this measurement focus, operating statements present increases and decreases in net current assets and unreserved fund balance is a measure of available spendable resources. In accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, the Budget Fund returns its unreserved fund balance (surplus) to the Administrative Central Office of the Department ofTechnical and Adult Education for remittance to the Office of Treasury and Fiscal Services in the subsequent fiscal year.
Nonexpendable trust funds, on the other hand, should be accounted for on a flow of economic resources measurement focus. With this measurement focus, 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.
- 14 -

COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT"G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPE BUDGET FUND
Except as disclosed in the following paragraphs, units of government of the State of Georgia record their Budget Fund revenues and expenditures in accordance with the modified accrual basis of accounting. Under the modified accrual basis ofaccounting, revenues are recognized when susceptible to accrual (i.e., when they are "measurable and available"). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. Revenues that are accrued include primarily State funds, Federal grants and entitlements, and certain amounts earned under operating agreements with other parties. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized when due, and certain compensated absences, claims and judgments which are recognized when the obligations are expected to be liquidated with expendable available financial resources.
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 of encumbrances 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 of fund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles.
Prior period adjustments and certain other items are reported as additions to and deductions from fund balance of the Budget Fund in the accompanying financial statements. This presentation is in accordance with
accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, but differs from generally accepted accounting principles in that immaterial adjustments should be reported as current period revenues and expenditures.
FIDUCIARY FUND TYPE NONEXPENDABLETRUSTFUND
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 ofthe transaction can be determined and "available" means collectible within the current 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 of the 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.

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COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
ruNE 30 1995

EXHIBIT "G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF ACCOUNTING FIDUCIARY FUND TYPES NONEXPENDABLE TRUST FUND
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 Agency Funds are custodial in nature and do not measure results of operations or have a measurement focus. The modified accrual basis of accounting is utilized for recognizing assets and liabilities.

BUDGET The Georgia Department of Technical and Adult Education - Administrative Central Office receives State appropriation allotments and certain Federal funds for the various technical institutes throughout the State. The appropriated budget is adopted at the departmental level and represents appropriations provided by the Amended Appropriations Act of 1994-1995. The budget allocation and disbursement of these 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.

A comparison of anticipated funds available and budgeted expenditures by budget unit object class indicates that the following object class was overspent by the amount identified below:

Job Training Partnership Act

$ 49 178 41

This overexpenditure of budget constitutes a violation of Georgia Department of Technical and Adult Education policy, but does not constitute a statutory violation of budget authority. Statutory violations of budget authority are reported at the departmental level.

CASH AND CASH EQUIVALENTS Cash and Cash Equivalents include currency on hand and demand deposits with banks and other authorized financial institutions. Cash and Cash Equivalents also include short-term, highly liquid investments with maturity dates ofthree months or less from the date of acquisition.

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

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

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COLUMBUS TECHNICAL INSTITUTE NOTES TO TIIB FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT "G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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:
FEDERAL FINANCIAL ASSISTANCE REFUND TO GEORGIA DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE
Columbus Technical Institute receives Federal funds for the Carl D. Perkins Vocational and Applied Technology Education Act through the Georgia Department of Technical and Adult Education Administrative Central Office. As provided by the respective budget allocation to the Institute, these funds were required to be expended by June 30, 1995. At June 30, 1995, the Institute had $193.00 in unexpended Federal funds which should be refunded to the Administrative Central Office.
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 of the Georgia Department ofTechnical and Adult Education. The Official Code ofGeorgia 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.
UNRESERVED FUND BALANCE In accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, the Budget Fund's unreserved fund balance is returned to the Georgia Department ofTechnical and Adult Education - Administrative Central Office for remittance to the Office of Treasury and Fiscal Services in the subsequent fiscal year as surplus, as follows:
REGULAR- An amount ofunexpended general appropriations available to the State for reappropriation in subsequent years.
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COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE30 1995

EXHIBIT"G"

NOTE l: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
UNRESERVED FUND BALANCE
LO'ITERY FOR EDUCATION - An amount of unexpended lottery appropriations available for future reappropriation for Lottery for Education.
COMPENSATED ABSENCES Compensated absences represent obligations of the Institute relating to employees' rights to receive compensation for future absences based upon seivices 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 of annual leave paid to terminated employees.
The liability for compensated absences at year-end is reported in the General Long-Term Debt Account Group for governmental funds.
MEMORANDUM ONLY -TOTAL COLUMNS Total columns on the Combined Balance Sheet (Statutory Basis) are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. The columns do not present information that reflects financial position in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
COMPARATIVE DATA Comparative total data for the prior year have been presented in selected sections of the accompanying financial statements in order to provide an understanding ofthe changes in the Institute's financial position and operations. Comparative totals have not been included on statements where their inclusion would not provide enhanced understanding of the Institute's financial position and operations or would cause the statements to be unduly complex and difficult to understand. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation.
NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds belonging to the State of Georgia cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to theState. 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 of Georgia Annotated Section 50-17-59:
(1) Bonds, bills, certificates ofindebtedness, notes, or other direct obligations of the United States or of the State of Georgia.

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COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE30 1995

EXHIBIT "G"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES (2) Bonds, bills, certificates ofindebtedness, notes, or other obligations of the counties or municipalities ofthe State of Georgia.
(3) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose.
(4) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia.
(5) Bonds, bills, certificates of indebtedness, notes, or other obligations ofa subsidiary corporation of the 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 Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
(6) Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation.
As authorized in the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies which allow agencies ofthe State of Georgia (which include technical institutes) the option ofexempting demand deposits from the collateral requirements.
CATEGORIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, cash deposits consist of all bank balances which include demand deposits and/or interest bearing accounts. The bank balances as of June 30, 1995, are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk:
Category I - Amounts covered by depository insurance or collateralized with securities (at market value) held by the Institute or by its agent in the Institute's name.
Category 2 - Amounts collateralized with securities (at market value) held by the pledging financial institution's trust department or agent in the Institute's name.
Category 3 - Amounts collateralized with securities (at market value) held by the pledging financial institution, or by its trust department or agent but not in the Institute's name, and amounts uncollateralized.

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COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT "G"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS

CATEGORIZATION OF DEPOSITS

Carrying Amount

Bank Balances

Risk Categories

Cash Deposits

$ 357 587) 2 l: 725 723 02 $200 QQQ 00 l: 525 723 02 $====0!!iQQ!ol!:

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 prohibits the creation of a debt to the State of Georgia for the payment of any sums under such agreements beyond the fiscal year of execution if appropriated funds are not available. If renewal of such agreements is reasonably assured, however, capital leases requiring appropriation by the General Assembly of Georgia are considered noncancellable for financial reporting purposes.

As ofJune 30, 1995, future minimum lease payments under capital leases are as follows:

Fiscal Year Ending June 30
1996 1997 1998 1999
Total Future Minimum Lease Payments
Less: Amounts Representing Interest
Present Value ofFuture Minimum Lease Payments
NOTE 4: CHANGES IN GENERAL FIXED ASSETS

$ 11,443.13 3,932.76 3,932.76 330.74
$ 19,639.39
2 793.70
$ 16 845 62

In accordance with the statutory definition of moveable personal property as defined in Official Code of Georgia Annotated Section 50-16-161, only those items with an acquisition cost of $1,000.00 or greater are reflected in the General Fixed Assets Account Group.

The following is a summary of changes ofequipment for the General Fixed Assets Account Group during the fiscal year:

Balance July 1, 1994

$3,793,477.25

Additions Deductions Balance June 30, 1995

374,018.84 0.00
$4167 496 09

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COLUMBUS TECHNICAL INSTITIJTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXIIlBIT "G"

NOTE 5: GENERAL LONG-TERM DEBT

CHANGES IN GENERAL LONG-TERM DEBT A summary of changes in General Long-Term Debt for the year ended June 30, 1995, follows:

Compensated Absences

Balance July I, 1994

$ 421,750.87

Additions Annual Leave Earned and Utilized (Net)
Salaries and Wies Salary-Related ringe Benefits Current Year Leases Deductions

-10,271.31 1,070.23

Balance June 30, 1995

$ 412 549 79

Capital Leases
$ 37,093.35

Total $ 458,844.22

0.00 20 247.66
$ 16 845 69

-10,271.31 1,070.23 0.00
20 247.66
$ 429 395 48

NOTE 6: RISK MANAGEMENT

Public Entity Risk Pool The State Personnel Board - Merit System ofPersonnel Administration internally administers for the State of Georgia a program of health benefits for the employees of units of government of the State of Georgia and units of county governments and local education agencies located with the State of Georgia. This plan is funded by participants covered in the plan, by employers' contributions paid by the various units of government participating in the plan, and appropriations made by the General Assembly of Georgia. The State Personnel Board - Merit System ofPersonnel Administration has contracted with Blue Cross Blue Shield of Georgia to process claims in accordance with the State Employees' Health Benefit Plan as established by the State Personnel Board.

Other Risk Management The Department ofAdministrative Services (DOAS) has the responsibility for the State of Georgia of making and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS services claims for risk of loss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' indemnification. Limited amounts of commercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. The Institute, as an organizational unit of the Georgia Department of Technical and Adult Education, is part of the State of Georgia reporting entity, and as such, is covered by the State of Georgia risk management program administered by DOAS. Premiums for the risk management program are charged to the state agencies by DOAS to provide claims servicing and claims payment.

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COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE30 1995

EXlilBIT "G"

NOTE 7: DEFERRED COMPENSATION PLAN
The State ofGeorgia offers its employees a deferred compensation plan in accordance with Internal Revenue Code Section 457. The plan, available to employees 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 compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property or rights of the State of Georgia subject only to the claims of the State's general creditors. Participant's rights under the plan are equal to those of a general creditor of the State of Georgia in an amount equal to the fair market value of the deferred account of each participant. Financial information relative to the plan is presented in the financial report of the State Personnel Board - Merit System of Personnel Administration for the year ended June 30, 1995.
NOTE 8: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Plan Description Columbus Technical Institute participates in the Teachers Retirement System of Georgia (TRS), a cost-sharing multiple-employer public employee retirement system (PERS) established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia. The Institute'spayroll for the year ended June 30, 1995, for employees covered by TRS was $4,163,719.32. The Institute's total payroll for all employees was $5,242,765.39.
Benefits TRS provides service retirement, disability retirement, and survivor's benefits for its members. A member is eligible for service retirement after the member ( 1) has attained the age of 60 years and has at least ten years ofcreditable service, (2) has at least 30 years of creditable service, regardless of age, or (3) has attained the age of55 years and has at least 25 years of creditable service. For those members with 30 years of service or those age 60 with at least ten years of service, retirement benefits are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. Any member who has between 25 and 30 years of creditable service and is at least 55 years ofage shall receive a benefit which is reduced by the lessorofl/12 of7% for each month the member is below age 60, or by 7% for each year or fraction thereofby which the member has less than 30 years of service. The nollDai retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits whereby the disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The benefit is based on member's creditable service (minimum of 10 years of service) and compensation up to the date of death or up to the time of disability.
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COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE30 1995

EXHIBIT "G"

NOTES: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Benefits Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.

Contributions Required and Contributions Made Employees of the Institute who are covered by TRS are required to pay 5% of their gross earnings to TRS. The Institute makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1995, the employer contribution rate was I 1.81% for covered employees. The interest rate assumption (rate ofretum on investments) was 7.50%.

Total contributions to the plan made during fiscal year 1995 amounted to $699,857.31, of which $491,685.87 was made by the Institute and $208,171.44 was made by employees. These contributions represented I 1.81% (Institute) and 5% (employees) of covered payroll.

Funding Status and Progress Pension Benefit Obligation
The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 of the Governmental Accounting Standards Board (GASB) that is required to be used for reporting purposes. The standardized measurement is the actuarial present value of credited projected benefits. This pension valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date and is adjusted for the effects of projected salary increases and any step-rate benefits. A standardized measure of the pension benefit obligation was adopted by the GASB to enable readers ofthe PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among similar PERS.

The total unfunded pension benefit obligation ofTRS as ofJune 30, 1994, which was the latest information available, was as follows:

Total pension benefit obligation

$15,313,743,000.00

Net assets available for benefits, at cost

14 254 785 000.00

Unfunded pension benefit obligation

$ 1 058 958 000 00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1994. Net assets available for benefits were valued as of the same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

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COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL $TATEMENTS
JUNE 30 1995

EXIIlBIT "G"

NOTE 8: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Funding Status and Progress Retirement System Contributions
Total contributions from all employers to TRS for the year ended June 30, 1995, were $565,117,811.00. The Institute's contribution for the year ended June 30, 1995, of $491,685.87 was actuarially determined and represented .087% of total contributions made by all participating employers.
Trend Information Historical trend information is presented in the financial report ofTRS for the year ended June 30, 1995. This information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due.
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Plan Description Columbus Technical Institute participates in the Employees' Retirement System of Georgia (ERS), a singleemployer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances for employees ofthe State of Georgia. The Institute's payroll for the year ended June 30, 1995, for employees covered by ERS was $759,513.19. The Institute's total payroll for all employees was $5,242,765.39.
Benefits The benefit structure ofERS was significantly modified on July 1, 1982. Unless elected otherwise, an employee who currently maintains membership with ERS based upon State employment that started prior to July 1, 1982, is an "old plan" member subject to the plan provisions in effect prior to July 1, 1982. All other members are "new plan" members subject to the modified plan provisions.
Members become vested after 10 years of creditable service. A member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 65. Retirement benefits paid to members are based upon a formula which considers the monthly average of the member's highest eight consecutive calendar quarters of salary, the number of years of creditable service, and the member's age at retirement. Postretirement cost-of-living adjustments are also made to member's benefits. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension at reduced rates to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. If 10 years of service is completed and age 60 is reached, the member may retire with a reduced benefit. Additionally, there are certain provisions allowing for retirement after 30 years of service regardless ofage.

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COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATE:MENTS
JUNE 30 1995

EXIIlBIT "G"

NOTE 8: RETIRE:MENT PLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Contributions Required and Contributions Made Under the old plan, member contributions consist of employee contributions paid by the employee of 1.25% ofannual compensation and 4.75% of annual compensation paid by the Institute on behalfofthe employee. Under the new plan, member contributions consist solely of 1.25% of annual compensation paid by employee. The Institute also is required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation. Contributions are also made on amounts paid for accumulated leave of retiring employees.

Total contributions to the plan made during fiscal year 1995 amounted to $122,506.41 of which $113,012.49 was made by the Institute and $9,493.92 was made by employees. These contributions represented 14.89% (Institute) and 1.25% (employees) of covered payroll.

Funding Status and Progress Pension Benefit Obligation
The amount shown as the "pension benefit obligation" is a standardized disclosure measure of the present value ofpension benefits, adjusted for the effects ofprojected salary increases and step-rate benefits, estimated to be payable in the future as a result ofemployee service to date. The measure is intended to help users assess the funding status ofERS on the going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among employers. The measure is the actuarial present value ofcredited projected benefits, and is independent of the funding method used to determine contributions to the plan.

The pension benefit obligation was computed as part of an actuarial valuation performed as of June 30, 1994. Significant actuarial assumptions used in the valuation include the following:

(1) The present value offuture pension benefits paid was computed using a discounted rate of7.5%. This rate is also the same rate assumed to be earned on investments in the plan in future years.

(2) Future pension payments reflect the following assumed salary increases as a result of inflation and merit increases:

~
20 25 30 35 40 to 65

Percentage
9.5% 8.5% 6.5% 6.0% 5.7%

(3) ERS has the authority to grant cost-of-living adjustments by State statute. As of June 30, 1994, cost-of-living adjustments have been included in the pension benefit obligation.

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COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT "G"

NOTES: RETIREMENTPLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Funding Status and Progress Pension Benefit Obligation
The total unfunded pension benefit obligation ofERS as of June 30, 1994, which was the latest information available, was as follows:

Pension Benefit Obligation:

Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receiving benefits

$ 2,227,653,000.00

Current employees:

Accumulated contributions

648,516,000.00

Employer financed - vested

1,085,190,000.00

Employer financed - nonvested

1 206 805 000.00

Total pension benefit obligation

$5,168,164,000.00

Net assets available for benefits, at cost

4 858 015 000.00

Unfunded pension benefit obligation

$ 310 149 000 00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1994. Net assets available for benefits were valued as of the same date. ERS does not make separate measurements of assets and pension benefit obligation for individual employers.

Funding Policy The ERS funding policy provides for periodic employer contributions at actuarially determined rates that, expressed as percentages ofannual payroll, are sufficient to accumulate sufficient assets to pay benefits when due. Level percentage of payroll employer contribution rates are determined using the entry age funding method. ERS also uses the level percentage of payroll method to amortize the unfunded liability within approximately 20 years following the valuation date.

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COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT"G"

NOTE 8: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Funding Status and Progress Funding Policy
Total contributions from all employers to ERS for the year ended June 30, 1995, were $256,624,679.00. The Institute's contribution for the year ended June 30, 1995, of $113,012.49 was actuarially determined and represented .044% oftotal contributions made by all participating employers.
Significant actuarial assumptions used to compute contributions are the same as those used to compute the standardized measure of pension obligation.
Trend Information Historical trend information is presented in the financial report ofERS for the year ended June 30, 1995. This information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due.
GEORGIA DEFINED CONTRIBUTION PLAN
Plan Description Columbus Technical Institute participates in the Georgia Defined Contribution Plan (GDCP) which is a singleemployer defined contribution plan established by the General Assembly of Georgia in July 1993 for the purpose ofproviding retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees ofthe Employees' Retirement System of Georgia. The Institute's payroll for the year ended June 30, 1995, for employees covered by GDCP was $238,780.86. The Institute's total payroll for all employees was $5,242,765.39.
Benefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board of Trustees. Ifa member has less than$ 3,500.00 credited to his/her account, the Board of Trustees has the option ofrequiring a lump sum distribution to the member in lieu ofmaking periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary.
Contributions and Vesting Member contributions are seven and one-half percent (7.5%) of gross salary. There are no employer contributions. Earnings are credited to each member's account in a manner established by the Board of Trustees. Upon termination of employment, the amount of the member's account is refundable upon request by the member.

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COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT "G"

NOTES: RETIREMENTPLANS
GEORGIA DEFINED CONTRIBUTION PLAN
Contributions and Vesting Total contributions made by employees during fiscal year 1995 amounted to$ 17,909.08 which represents 7.5% of covered payroll. These contributions met the requirements of the plan.
NOTE 9: LEAVE POLICIES
Employees earn annual leave ranging from one and one-quarter days to one and three-quarter days each month
depending upon the employees' length ofcontinuous State service with a maximum accumulation of forty-five days. Employees are paid for unused accumulated annual leave upon retirement or termination of employment. See Note 1 - Compensated Absences
Employees earn one and one-quarter days of sick leave each month with a maximum accumulation of ninety
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 of forfeited annual and sick leave are entitled to additional service credit in the Employees' Retirement System of Georgia
NOTE 10: NONMONETARYTRANSACTIONS
The Georgia State Financing and Investment Commission (GSFIC), a unit of State government, is responsible for the issuance of state debt and for the investment and accounting for proceeds derived from the issuance of state debt. In addition, GSFIC is authorized to acquire and construct projects for the benefit of units of State government or to contract with units of State government for the construction or acquisition of capital outlay projects. During the fiscal year ended June 30, 1995, the Georgia State Financing and Investment Commission paid $1,102,078.37 to various vendors for approved projects related to Columbus Technical Institute.
NOTE 11: CONTINGENCIES
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. This could result in refunds to the grantor agency for any expenditures 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, if any, to be immaterial to its overall financial position.

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COLUMBUS TECHNICAL INSTITUTE NOTES TO TIIE FINANCIAL STATEMENTS
JUNE 30 1995

EXIIlBIT "G"

NOTE 11: CONTINGENCIES
Litigation, claims and assessments filed against Columbus Technical Institute (as an organizational unit of the Department ofTechnical and Adult Education), ifany, 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, 1995.
NOTE 12: BONDING INFORMATION
The President and all employees of Columbus Technical Institute are bonded under a Public Employees Blanket Bond written by the Employers Insurance of Wausau, their Bond No. 1450-00-110723, on which the premium has been paid to October 1, 1995. Under this agreement, the public employee dishonesty coverage insures Columbus Technical Institute to a maximum of$1,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. The faithful performance of duty coverage insures the Institute to a maximum of $1,000,000.00 against loss sustained from failure of its employees to perform faithfully their duties or to account properly for all monies and property received by virtue of their position or employment.
All employees of Columbus Technical Institute are also bonded under Commercial Crime Policies written by the United States Fire Insurance Company, their Policy Nos. 626 011675 2 and 626 012294 4, on which the premiums have been paid. to October 1, 1995. Under these additional public employee dishonesty coverages, the policies insure the Institute to a maximum of$9,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees.

- 29 -

I
L_) ~('L C, ~. \c__

SUPPLEMENTARY INFORMATION - 31 -

COLUMBUS TECHNICAL INSTITUTE COMBINING BALANCE SHEET /STATUTORY BASIS)
BUDGET FUND
JUNE3Q 1995

EXHIBIT"H"

ASSETS
cash and Cash Equivalents
Accounts Receivable State Funds Federal Financial Assistance Other
Advance to other Funds
Prepaid Items
Total Assets
LIABII ITIES AND FUND EQUITY
Liabilities Accounts Payable Payroll Withholdings Deferred Revenue Tuition and Fees
Total Liabilities
Fund Equity Fund Balance Reserved Federal Financial Assistance For Refund to Georgia Department of Technical and Adult Education Administrative Central Office Live Work Projects Prior Year Local Funds Private Grants Unreserved Designated Surplus Regular Lottery for Education
Total Fund Equity
Total Liabilities and Fund Equity

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR EDUCATION

TOTAL

78,317.20 $
26,566.09 $ 96,955.18 175,026.98
$ - - - = = 298,548.25 $
= $ _ _ _6,925.00
$ - - - - =3-3,=940.71
417731.16 $

158,004.92 $ 2,515.00 $
2,515.00 $ $ $
160,519.92 $

236,322.12
29,081.09 96,955.18 175,026.98 301,063.25 6,925.00 33,940.71
578,251.08

204,055.01 $ 415.00
158,790.76
363,260.77 $

160,502.04 $

364,557.05 415.00

158,790.76

160,502.04 $ _ _....;5c::23::,,7:..:62=.8.:...1

193.00 31,892.64 19,900.33
1,732.03

$

193.00

31,892.64

19,900.33

1,732.03

752.39 ______ $ -----'1"'7"'.88:::.

752.39 17.88

54,470.39 $

17.88 $ ----=-54"-,488==27:..

417731.16 $

160,519.92 $ ===5=78;;,25=1-;;;08;,,

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

COl UMBUS TECHNICAL INSTITUTE COMBINING STATEMENT OF CHANGES IN FUND BAI ANCE {STATIITORY BASIS\
BUDGET FUND YEAR ENDED JUNE 30 1995

EXHIBIT"!"

FUND BALANCE - JULY 1
Reserved Unreserved
Designated Surplus
ADDITIONS
Adjustments to Prior Yeafs Accounts Payable
Excess of Funds Available over Expenditures
Exhiblt"J" PriorYeafs 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, 1994
Adjustments to Prior Year's Accounts Receivable Refunds to GrantO<S
City of Columbus Consolidated Government Job Training Partnership Act
Georgia Department of Technical and Adult Education Administrative Central Offtce Federal Financial Assistance
Muscogee County School District Tech Prep Education
Reserved Fund Balance Carried Over from Prior Year as Funds Available
FIIND BALANCE - JUNE 30
(To Exhibit "H")

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR
EDUCATION

TOTAL

59,096.98 $
402.17 59,499.15 $

0.00 $ 0.00 $

59,096.98
402.17 59,499.15

4,662.55 $
54,349.31 30.00
154.84
59,196.70 $

17,72 $ 0,16
17.88 $

4,680.27
54,349.47 30.00
154.84
59,214.58

402.17 $ 3,986.57
118.00
619.74 585.00 58,511.98 64,225.46 $
54,470.39 $

0.00 $

402.17 3,986.57

118.00

619.74 585.00 58,511.98 0.00 $ _ _ _64~,_ 225_.46_

17.88 $ ====54=,488=='=27=

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 33 -

COLUMBUS TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND
YEAR ENDE P JUNE 30 1995

EXHIBIT"J"

FUNDS AVAILABLE
~
STATE FUNDS Allotment from Georgia Department of Technical and Adult Education - Administrative Central Office
FEDERAL REVENUES
OTHER REVENUES RETAINED 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

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

a
LOTTERY FOR EDUCATION

TOTAL

5,820,955.96 $ _ __;1c:83:::,,5=.1c:5:,:,00::, 1,129,052.TT

6,004,470.96 1, 129,052.TT

1,000.00
21,137.00 6,083.75 2,233.00 287,790.29 10,913.00 6,908.50
812.79 36,787.45
1,887.46 63,322.64 773,764.50
4,889.68
1,217,510.06
8,167,518.79 $ _ __;1c::;83:::,,5::.;1c::;5;::.00=.

1,000.00
21,137.00 6,083.75 2,233.00
287,790.29 10,913.00 6,908.50 812.79 36,787.45 1,887.46 63,322.64
773,764.50 4,889.68
1,217,510.06
8,351,033.79

See accompanying notes and Independent Accountant's Combined Report on RevieW of Financial Statements and Supplementary Information.
- 34 -

COLUMBUS TECHNICAL INSTITUTE
COMBINING STATfMENT OF FUNDS AVAILABi f AND EXPENDITURES
BUDGET FUND
YEAR 'ENPfP JUNE 30 1995

EXHIBIT"J"

FUNDS AVAILABLE
CARRY-OVER FROM PRIOR YEAR
Transfer from Reserved Fund Balance Federal Financial Assistance lM> Work Projec:ls Prior Year Local Funds Private Grant
Total Carry-Over from Prior Year

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

e-
LOTTERY FOR EDUCATION

TOTAL

80.49 36,468.62 19,866.90 2,095.97
58,511.98

80.49 36,468.62 19,866.90 2,095.97
58,511.98

Total Funds Available

8,226,030.77 $

183,515.00 $

8,409,545.77

fXPENnlTURES
PERSONAL SERVICES-INSTITUTIONS
Salaries and Wages Employefs Contributions for:
F.I.C.A. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
OPERATING EXPENSES-INSTITUTIONS
Other Costs Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Rents (other than Real Estate) Insurance and Bonding other Operating Expenses Publications and Printing
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
. 35.

5,1"'6,998.10
115,986.77 598,287.82 608,137.27
31,439.00 6,819.00 15,609.00
6,523,276.96
5,102.93 401,264.49 105,283.71 270,835.62
2,598.70 13,375.83 181,841.65 9,699.25

5 , 1"'6,998.10
115,986.77 598,287,82 608,137.27 31,439.00
6,819.00 15,609.00
6,523,276.96
5,102.93 401,264.49 105,283.71 270,835.62
2,598.70 13,375.83 181,841.65 9,699.25

COl UMBUS TECHNICAL INSTITUTE COMBINING STATEMENT QF FUND AVAILABLI; ANQ EXPENQITURES
BUDGET FUND
YEAR ENDED JUNE 30 1995

EXHIBIT"J"

EXPENDITURES
OPERATING fXPENSES-INSTITUTIONS
Travel Equipment
Equipment Purchases Lease/Purchase o1 Equipment Rental of Equipment Computer Charges Software Telecommunications Per Diem, Fees and Contracts Per Diem and Fees
QUICK START PROGRAM
Personal Services Salaries and Wages Employer's Contributions for: F.I.C.A. Retirement Health Insurance
0thef Costs Su~kts and Materials Repairs and Maintenance Utililies Other Operating Expenses
Travel Equipment
Lease/Purchase of Equipment Telecommunications

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR
EDUCATION

TOTAL

28,523.91
326,110.,43 19,865.68 1,525.56
41,756..CS 49,469.41
21,556.69
1,478,810.32
38,200.40
504.83 4,450.80 4,710.n
247.86 6,7n.57 26,433.52
371.14 163.26
3,932.76 7,188.91
92,976.77

28,523.91
326,110.,43 19,865.68 1,525.56
41,756..CS 49,469.41
21,556.69
1,478,810.32

38,200.40

504.83 4,450.80 4,110.n

247.86 6,7n.57 26,433.52
371.14 163.26

3,932.76 7,188.91

$

92,976.77

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 36 -

COLUMBUS TECHNICAL INSTITUTE CQMBINING STATEMENT QF FUNDS A\/AII ABLE ANP EXPl;NQfT[JRf'.S
BllPQfTFUNP
YEAR ENDED JUNE 3Q 1995

EXHIBIT"J"

EXPENDITURES
JOB TRAINING PARTNERSHIP ACT
Personal Services Salaries and Wages Employer's Contributions for: F.1.CA. Retirement Health Insurance
otherCcols SuPP,teS and Materials other Operating Expenses
Travel
EQUIPMENT-TECHNICAL INSTITUTES
Equipment Equipment Purchases
Total Expenditures
Excess of Funds Available over Expenditures

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"Er' LOTTERY FOR
EDUCATION

TOTAL

53,550.04

2,683.71 7,175.50 6,253.16

1,326.n 4,458.60 1,169.63

$

76,617.41

53,550.04
2,683.71 7,175.50 6,253.16
1,326.n 4,458.60 1,169.63
76,617.41

0.00 $ 8,171,681.46 $
54,349.31

183,514.84 $ _ _ _1~83~,5~1~4~.84~

183,514.84 $

8,355,196.30

0.16

54,349.47

s,226,030.n $

183,515.00 $

s,409,545.n

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary lnfonnation.
- 37 -

COLUMBUS TECHNICAL INSTITUTE COMBINING STATEMENT OF CHANGES IN ASSETS ANp LIABILITIES
FIDUCIARY FUND TYPE AGENCY FUNDS YEAR ENDED JUNE 30 1995

EXHIBIT"K"

FUND Allied Health Fund American Welding Society DTAE Activities Fund Faculty and Staff Funds Faculty Retirement Fund Flower Fund General Scholarship Fund HOPE Scholarship Program Pell Grant Program Student Activities Fund Student Government Student Insurance Student Organization Fund Team 3 Activity Fund Team 5 Activity Fund

ASSETS/ LIABILITIES JULY 1, 1994
0.00 $ 360.00
0.00 203.72 354.70 329.62 11,053.89
0.00 6,917.90
0.00 6,964.92 2,782.50
460.69 245.00
0.00

ADDITIONS

DEDUCTIONS

ASSETS/ LIABILITIES JUNE 30, 1995

2,685.00 $

2,254.32 $

430.68

405.00

285.00

460.00

1,160.00

297.81

862.19

114.50

150.78

167.44

1,310.00

126.25

1,538.45

0.00

228.00

101.62

3,809.70

7,234.34

7,629.25

587,958.00

575,085.00

12,873.00

939,339.00

939,539.03

6,717.87

36,081.04

22,126.21

13,954.83

16,127.36

10,295.17

12,797.11

1,412.00

1,755.00

2,439.50

1,940.00

1,565.10

835.59

979.00

1,060.85

163.15

114.50

114.50

0.00

29672.94 $

1 593 435.10 $

1 562117.36 $

60,990.68

See accompanying notes and Independent Accountant's Combined Report on RevieW of Financial Statements and Supplementary Information.
.38.

COLUMBUS TECHNICAl INSJIJUJE CASH AND CASH EQUIVALENTS JUNE3Q 1995
NONINTEREST BEARING ACCOUNTS Columbus Bank and Trust Company, Columbus, Georgia
INTEREST BEARING ACCOUNTS Columbus Bank and Trust Company, Columbus, Georgia Money Market Account
.QTl:jE_R
Cashon Hand Petty Cash

SCHEDULE"!"
185,799.84 21,060.94
600.00 $ ===20='7=460===78=

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-39-

COi tJMBUS TECHNICAL INSTITUTE IN\/ESTMENTS
JUNE3Q 1995

SCHEDULE"'Z'

NONEXPENDABI E TRUST FUND
ca~ Patrick Chair Columbus Bank and Trust Company, Columbus, Georgia Certificate of Deposit No. 97443

PURCHASE DATE
July 2, 1993

(1) Certificate was redeemed by the Institute on July 5, 1995

INTEREST RATE
4.25%

MATURITY DATE/1)

AMOUNT

June 26, 1995 $ ===1~50;;;i726~;;;;-4~1

See accompanying notes and Independent Accountant's Combined Repoo on Review of Financial Statements and Supplementary Information.
-40-

COLUMBUS TECHNICAL INSTITUTE SCHEDULE OF FEDERAL REVENUES
YEAR ENDED JUNE 30 1995
BUQGEJFUND
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
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 Through Greenthumb, Incorporated Through Middle Flint Regional Development Center

SCHEDULE "3"

CFDA NUMBER

AMOUNT

84.048

$

84.048

918,734.00 9,932.98

84.174

9,420.00

17.250 17.250
17.250 17.250 17.250

124,513.85 20,641.96
24,786.42 8,109.29 12,914.27

$

1 129,052.77

See acccmpanying notes and Independent Accountant's Combined Report on Review" of Financial Statements and Supplementary Information.
- 41 -

COLUMBUS TECHNICAL INSTITUTE RECONCILIATION OF SALARIES AND WAGES AND TRAVEL
YEAR ENDED JUNE 30 1995

SCHEDULE 4

Totals per Annual Supplement
Accruals June 30, 1995 June 30, 1994
Adjustments Foster, Mollie Griffith, Jeanelle P. Harvill, Ellen Topping, Kevin P.
Talals per Report
SUMMARY BY OBJECT CLASS
BUDGET FUND Personal Services-Institutions Operating Expenses-Institutions Quick Start Program Job Training Partnership Act
NONEXPENDABLE TRUST FUND
ca~ Patrick Chair

SALARIES AND WAGES

$

5,242,765.39 $

TRAVEL 29,867.78

795.85 -934.99

-5.01 62.16 -42.55 113.56

$

5 242 765.39 $

29856.80

5,146,998.10 $
38,200.40 53,550.04
5,238,748.54 $
4,016.85

28,523.91 163.26
1,169.63
29,856.80

5,242,765.39 $ =====29='856==80=

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary lnfonnation.
-42-

SECTION IT FINDINGS AND IMPROPER OR QUESTIONED COSTS

COLUMBUS TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1995

STATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR QUESTIONED COSTS

The status of findings disclosed in the review report for the year ended June 30, 1994, is summarized below:

Audit Control Number

Status of Finding

828-94-01 828-94-02 828-94-03 828-94-04

Corrective Action Implemented Corrective Action Implemented See Audit Control Number 828-95-01 Corrective Action Implemented

PRIOR YEAR/CURRENT YEAR

CASH MANAGEMENT Excessive Cash Balances Federal Financial Assistance Pell Grant Program (CFDA 84.063) Audit Control Number 828-95-01

The review report for the year ended June 30, 1994, disclosed that the Institute made cash draws for the Pell Grant Program in advance ofimmediate cash needs. For the year under review, a review of cash management procedures disclosed that on September 27, 1994 and March 1, 1995, Columbus Technical Institute used the ACH/EFT method to drawdown funds which were disbursed from Agency Funds on October 17, 1994 and March 21, 1995, respectively. Federal cash drawdowns should not exceed the immediate need. For institutions using the ACH/EFT method, immediate need is defined as need for a three-day period.

Procedures should be implemented by the Institute to ensure that requests for cash draws do not exceed the immediate need.