Review report, state of Georgia, Columbus Technical Institute, Columbus, Georgia, year ended June 30, 1996

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

REVIEW REPORT STAlE OF GEORGIA COLUMBUS lECHNICAL INSTITUlE COLUMBUS, GEORGIA YEAR ENDED JUNE 30, 1996

COLUMBUS TECHNICAL INSTITUTE - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXIDBITS

FINANCIAL STATEMENTS

A COMBINED BALANCE SHEET (STATUTORY BASIS)

ALL FUND TYPES AND ACCOUNT GROUPS

2

B STATEMENT OF CHANGES IN FUND BALANCE (STATUTORY BASIS)

ALL FUND TYPES

6

C STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

7

STATEMENTS OF FUNDS AVAILABLE AND EXPENDITURES

COMPARED TO BUDGET

BUDGET FUND

D

"A"DEPARTMENTOFTECHNICA~ANDADULTEDUCATION

10

E

. "B" LOTTERY FOR EDUCATION '

11

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

30

I COMBINING STATEMENT OF CHANGES IN FUND BALANCE

(STATUTORY BASIS)

BUDGET FUND

31

J COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

32

K COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

FIDUCIARY FUND TYPE - AGENCY FUNDS

35

SCHEDULES

1 CASH AND CASH EQUIVALENTS

36

2 INVESTMENTS

37

3 SCHEDULE OF FEDERAL REVENUES

38

4 RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL

39

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

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
November 26, 1996

Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members ofthe State Board ofTechnical 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, 1996, 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 ~nancial 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 of Institute 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 of any 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 1.
Our review was made for the purpose of expressing 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 1 through~) is presented only for supplementary analysis purposes. Such information has been

96ARL-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:dt
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FINANCIAL STATEMENTS - 1-

COLUMBUS TECHNICAL INSTITUTE COMBINED BALANCE SHEET (STATUTORY BASIS)
ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30,1996

ASSETS
Cash and Cash Equivalents
Investments
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 Commitments

GOVERNMENTAL FUND TYPE BUDGET

FIDUCIARY FUND TYPES

NONEXPENDABLE

TRUST

AGENCY

$

19,934.47 $

259.22 $

2:;1,,080=.;.;;;._84_

$ _ _--:.157=.&.:,00=.:.,1.:,:20:...

$

26,685.91

26,495.96

235,842.06 $

$

289,023.93 $

$

=6,..-925=.00=.

$ _ _---"'1=1,,,-026=.06=.

4,000.00 $ _ _~60;;,I"992=,",,.77~ 4,000.00 $ _ _..;;,;60;.r.;,992=,,"-77_

Total Assets

$

326,909.46 $

161,260.42 $

63-.,0.-7.3...6...1.

See Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement.
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EXHIBIT "A"

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

TOTALS (Memorandum Only) JUNE 30, 1996 JUNE 30,1995

$

22,274.53 $

236,703.37

$

157,001.20 $

150,726.41

$

26,685.91 $

29,081.09

26,495.96

96,955.18

300,834.83

271,782.05

$ 354,016.70 $

397,818.32

$

6,925.00 $

6,925.00

$

11,026.06 $

33,940.71

$ 4,408,264.92

$ 4,408,264.92 $ 4,167,496.09

$ 490,990.57 $ 6,933.01
$ 497,923.58 $

490,990.57 $ 6,933.01
497,923.58 $

412,549.79 18,270.27
430,820.06

$ 4,408,264.92 $ 497,923.58 $ 5,457,431.99 $ 5,424,429.96

-3

COLUMBUS TECHNICAL INSTITUTE COMBINED BALANCE SHEET (STATUTORY BASIS)
ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30,1996

LIABILITIES AND FUND EQUITY
Liabilities Cash Overdraft Accounts Payable Salaries Payable Payroll Withholdings Deferred Revenue Tuition and Fees Funds Held in Custody for Others Advance from Other Funds Compensated Absences Capital Leases
Total Liabilities
Fund Equity Investment in General Fixed Assets Fund Balance Reserved Endowment Corpus 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 Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

GOVERNMENTAL FUND TYPE BUDGET

FIDUCIARY FUND TYPES

NONEXPENDXSLE

TRUST

AGENCY

$

98,985.50

6,367.50

335.00

184,332.50

$

290,020.50

$

0.00

56,148.61 6,925.00

$

63,073.61

$

100,000.00

$

0.00

15,210.89

20,580.09

987.04

49.31 61.63

$

36,888.96 $

$

326,909.46 $

61,260.42 161,260.42

161,260.42 $

63,073.61

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.
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EXHIBIT "A"

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

TOTALS (Memorandum Only) JUNE 30,1996 JUNE 30,1995

$
$ 490,990.57 8,933.01
$ 497,923.58 $

0.00 $ 98,985.50
8,367.50 335.00

29,242.59 364,557.05
0.00 415.00

184,332.50 58,148.81 8,925.00
490,990.57 8,933.01

158,790.78 54,085.88 8,925.00
412,549.79 18,270.27

851,017.89 $ 1,044,818.14

$ 4,408,264.92

$ 4,408,264.92 $ 4,187,498.09

100,000.00

100,000.00

0.00 15,210.89 20,580.09
987.04

193.00 31,892.64 19,900.33
1,732.03

$ 4,408,264.92

49.31 81.83 61,260.42

752.39 17.88
57,629.46

$ 4,606,414.30 $ 4,379,613.82

$ 4,408,264.92 $ 497,923.58 $ 5,457,431.99 $ 5,424,429.98

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COLUMBUS TECHNICAL INSTITUTE STATEMENT OF CHANGES IN FUND BALANCE (STATUTORY BASIS)
ALL FUND TYPES YEAR ENDED JUNE 30. 1996

EXHIBIT"B"

See Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement.
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COLUMBUS TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1996

EXHIBIT"C"

FUNDS AVAILABLE
REVENUES
STATE FUNDS Allotment from Georgia Department of Technical and Adult Education - Administrative Central Office
FEDERAL REVENUES (See Schedule)
OTHER REVENUES RETAINED Allotment from Georgia Department of Technical and Adult Education - Administrative Central Office Construction Reserve Trust Fund Contract Georgia Building Authority American Disabilities Act Donations Fees Application Late Registration Parking Registration/Continuing Education Testing other Interest Eamed 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 Federal Financial Assistance Live Work Projects Prior Year Local Funds Private Grants
Total Carry-Over from Prior Year

TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30,1995

$ 6,086,965.53 $ 6,004,470.96 $ 856,768.91 $ 1,129,052.77

$

20,167.00 $

0.00

15,511.21 0.00

0.00 1,000.00

28,797.50 6,317.25 4,036.90
231,757.11 7,991.62
44,925.68 703.19
14,613.84 2,762.82 65,736.87 1,042,425.75 9,345.95

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

$ 1,495,092.69 $ 1,217,510.06

$ 8,438,827.13 $ 8,351,033.79

$

0.00 $

80.49

31,892.64

36,468.62

19,900.33

19,866.90

1,732.03

2,095.97

$

5,3,525.00 $

58,511.98

Total Funds Available

$ 8,492,352.13 $ 8,409,545.77

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.
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COLUMBUS TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 3D, 1996

EXHIBIT"C"

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.
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COLUMBUS TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1996

EXHIBIT"C"

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.
-9-

$ 8,492,352.13 $ 8,409,545.77

COLUMBUS TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION YEAR ENDED JUNE 30. 1996

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)

$ 6,086,972.00 $ 6,086,965.53 $

902,159.00

856,768.91

1,675,732.00

1,474,925.69

$ 8,664,863.00 $ 8,418,660.13 $

-6.47 -45,390.09 -200,806.31
-246,202.87

20,500.00

53,525.00

33,025.00

--_---:...._- $ 8,685,363.00 $ 8,472,185.13 $

-213,177.87

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

$ 7,080,457.00 $ 6,990,155.03 $

1,467,669.00

1,324,708.46

96,678.00

96,678.00

40,559.00

29,645.77

90,301.97 142,960.54
0.00 10,913.23

Excess of Funds Available over Expenditures

$ 8,685,363.00 $ 8,441,187.26 $ --.....;2..4.4.,-1.7:5...7_4-

$

30,997.87 $ ======3;:,;;0=,9=9=7:=.8=7

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.
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COLUMBUS TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"B" LOTTERY FOR EDUCATION YEAR ENDED JUNE 30, 1996

EXHIBIT"E"

FUNDS AVAILABLE REVENUES
Other Revenues Retained

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$

20,167.00 $

20.167.00 $

....;;O..;.;.O~O

EXPENDITURES Repairs and Renovations

$

20.167.00 $

20.167.00 $

0...;..0_0

Excess of Funds Available over Expenditures

$

0.00 $=====0=::.0:::0

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.
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COLUMBUS TECHNICAL INSTITUTE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND
YEAR ENDED JUNE 30. 1996

EXHIBIT "F"

REVENUES
Interest Earned
EXPENDITURES
Personal Services Salaries and Wages Employer's Contributions for: F,I.C,A. Retirement Health Insurance
Total Expendhures
Excess of Revenues over Expendhures
FUND BALANCE JULY 1, 1995

CARL PATRICK CHAIR
$ _ _---=.J9,=-21:...:8=.84~

$

4,330.96

150.60 565.40 540.92

$ _ _---=5.J,:=;:58:.:.7=.8.=..8

$

3,630.96

157,629.46

FUND BALANCE JULY 1, 1996

$ ==1=6:::i::l1,=:26=0=.4:=2

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.
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COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXHIBIT "G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Columbus Technical 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 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 six (6) 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 ofTechnical 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 of the Georgia Department of Technical and Adult Education for financial reporting purposes because of the significance ofits legal, operational, and financial relationships as defined in Section 2100 ofthe Governmental Accounting Standards Board Codification of Governmental 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 1995-1996. 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 defined 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.

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COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT "G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
FIDUCIARY FUND TYPES
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 (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 ofthe 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 ofthe 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 ofthe State ofGeorgia, the Budget Fund returns its unreserved fund balance (surplus) to the Administrative Central Office ofthe Department of Technical and Adult Education for remittance to the Office of Treasury and Fiscal Services in the subsequent fiscal year.

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COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT "G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING MEASUREMENT FOCUS
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.
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 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 of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to pay liabilities ofthe 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 goods and services which have not been received 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 of the State of Georgia, but is not consistent with generally accepted accounting principles, which provide for the recording of encumbrances 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.
Contractual terms ofcertain Federal grant agreements received by the Institute for vocational training services require that grant funds earned be recorded as Federal revenues rather than as revenues from tuition and fees. Accordingly, it is the Institute's policy to record certain Federal grant funds as Federal revenues and also as other revenues retained with offsetting expenditures for student expenses charged to the other operating expenses expenditure account. This accounting policy results in an overstatement of both revenues and expenditures in the financial statements for such Federal grants. This policy is in conformity with accounting practices prescribed or pennitted by statutes and regulations ofthe State of Georgia, but is not consistent with generally accepted accounting principles.

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COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT"G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPE BUDGET FUND
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 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 TYPE NONEXPENDABLE TRUST FUND
The Nonexpendable Trust Fund is maintained in accordance with the modified accrual basis ofaccounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (Le., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined ancl" "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 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 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 1995-1996. 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.
CASH AND CASH EQUIVALENTS Cash and Cash Equivalents include currency on hand and demand deposits with banks and other authorized financial institutions.

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COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 3D. 1996

EXIllBIT "Gil

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS Investments are defined as those financial instruments with tenns in excess ofthree months from the date of purchase and certain other securities held for the production of revenue. Investments are stated at cost.
ACCOUNTSRECENABLE Accounts receivable consist of allotments 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 infonnation available.
Accounts receivable (Other) arising from operations are reported at gross value. Based on management's evaluation that amounts uncollectible are not material, no provision has been made for such amounts.
INVENTORIES No inventories of supplies are reported in these 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:
LNE WORK PROJECTS In accordance with the Official Code of Georgia Annotated Section 20-4-14(c), the accumulated balance ofunexpended funds derived from student live work projects. This amount is restricted to expenditures for live work projects or for the benefit ofinstructional programs at the technical institute 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.
PRNATE GRANTS The unexpended balance ofprivate grants which is restricted for expenditure in future years for the specific purposes as designated by the grantors.

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COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXHIBIT "G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 regular appropriations designated for reappropriation by the State in subsequent years.
LOTIERY FOR EDUCATION - An amount ofunexpended lottery appropriations designated for future reappropriation by the State 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 services already rendered. This obligation relates only to vesting accumulated annual and compensatory leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the Budget Fund for the current portion of this 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" because they do not represent consolidated financial information and 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 ofthis 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 restated in order to be consistent with the current year's presentation.

- 18 -

COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXIllBIT "G"

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 of Georgia Annotated Section 50-17-59:
(1) Bonds, bills, certificates ofindebtedness, notes, or other direct obligations ofthe United States or of the State of Georgia.
(2) Bonds, bills, certificates ofindebtedness, notes, or other obligations ofthe counties or municipalities of the 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 ofthe State of Georgia.
(5) Bonds, bills, certificates of indebtedness, notes, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest, or 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 of the 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, 1996, 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 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.
- 19-

COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXIflBIT "G"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS

CATEGORIZATION OF DEPOSITS 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.

Carrying Amount

Bank Balances

Risk Categories

2

3

Cash Deposits

S 17860073 S 58],21659 S 200 000 00 S 381,216 59 S.===O~OO~

NOTE 3: OPERATING LEASES

Columbus Technical Institute has entered into a certain agreement to lease a copier which is classified as an operating lease (lease on asset not recorded on the balance sheet). This lease contains provisions that, at the expiration date of the original term of the lease, the Institute has the option of renewing the lease for successive terms' of the same number of months as the initial term. Future minimum lease payments for the operating lease as ofJune 30, 1996, are listed below.

Fiscal Year Ending June 30

1997 1998 1999

$ 18,960.00 20,460.00 9,775.00

Total Future Minimum Lease Payments

$ 49,195.00

Expenditures for rental of the copier under the operating lease for the'year ended June 30, 1996, totaled $12,185.00.

NOTE 4: 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, 1996, future minimum lease payments under capital leases are as follows:

- 20-

COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT "G"

NOTE 4: CAPITAL LEASES
Fiscal Year Ending June 30

1997 1998 1999

S 3,932.76 3,932.76 330.74

Total Future Minimum Lease Payments

$ 8,196.26

Less: Amounts Representing Interest

1.263.25

Present Value ofFuture Minimum Lease Payments

S 6,933.01

NOTE 5: CHANGES IN GENERAL FIXED ASSETS

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 ofS1,000.00 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 1, 1995

S 4,167,496.09

Additions Deductions

331,268.72 90.499.89

Balance June 30, 1996

S 4.408.264.92

- 21 -

COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT "G"

NOTE 6: 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, 1996, follows:

Compensated Absences

Balance July 1, 1995

$ 412,549.79

Retroactive Restatement ofPrior

Year Balances

0.00

Balance July 1, 1995 Restated

$ 412,549.79

Additions Annual Leave Earned and Utilized (Net) Salaries and W~es Salary-Related ringe Benefits
Deductions

78,228.94 211.84

Balance June 30, 1996

$ 490.990.57

Capital Leases

Total

$ 16,845.69 $ 429,395.48

1.424.58

1.424.58

$ 18,270.27 $ 430,820.06

11.337.26

78,228.94 211.84
11.337.26

$ 6,933.01 $ 497,923.58

NOTE 7: RISK MANAGEMENT

Public Entity Risk Pool

\.

The State Personnel Boilrd - Merit System ofPersonnel Administration administers for the State of Georgia

a program ofhealth benefits for the employees ofunits of government ofthe State of Georgia, 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 processes 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 various state organizations by DOAS to provide claims servicing and claims payment.

- 22-

COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30.1996

EXIllBIT "G"

NOTE 8: 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 cl~ms 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 will be presented in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1996.
NOTE 9: 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's payroll for the year ended June 30, 1996, for employees covered by TRS was $4,468,886.93. The Institute's total payroll for all employees was $5,582,444.05.
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 ofcreditable 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 ofservice 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 lessor of 1/12 of 7% 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 normal 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.
- 23-

COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXHIBIT"G"

NOTE 9: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Benefits Members become fully vested after ten years of service. Ifa member terminates with less than ten years of service, no vesting ofemployer 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% oftheir gross earnings to TRS. The Institute makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees as advised by their independent actuary. For fiscal year 1996, the employer contribution rate was 11.81% for covered employees. The interest rate assumption (rate of return on investments) was 7.50%.

Total contributions to the plan made during fiscal year 1996 amounted to $751,225.11, of which $527,775.52 was made by the Institute and $223,449.59 was made by employees. These contributions represented 11.81% (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 ofthe Governmental Accounting Standards Board (GASB) that is required to be used for reporting purposes. The standardized measurement is the actuarial present value ofcredited 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, 1995, which was the latest information available, was as follows:

Total pension benefit obligation

$ 17,442,607,000.00

Net assets available for benefits, at cost

15,857,066,000.00

Unfunded pension benefit obligation

$ 1.585,541.000.00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1995. Net assets available for benefits were valued as ofthe same date. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.

- 24-

COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

. EXHIBIT "G"

NOTE 9: 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, 1996, were $607,274,559.00. The Institute's contribution for the year ended June 30, 1996, of $527,775.52 was actuarially determined and represented .087% of total contributions made by all participating employers.
Trend Information Historical trend information is presented in the TRS June 30, 1996, financial report. This information gives an indication ofthe 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 of the State of Georgia. The Institute's payroll for the year ended June 30, 1996, for employees covered by ERS was $756,782.92. The Institute's total payroll for all employees was $5,582,444.05.
Benefits The benefit structure of ERS 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.
Under both the old plan and new plan, 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. 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 of age.
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 ofyears 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.

- 25-

COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT"G"

NOTE 9: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Contributions Required and Contributions Made As established by State statute, all full-time employees ofthe State of Georgia and its political subdivisions, who are not members ofother state retirement systems, are eligible to participate in the ERS. Both employer and employee contributions are established by State statute.
Under the old plan, member contributions consist of employee contributions paid by the employee of 1.25% ofcompensation and 4.75% ofcompensation paid by the Institute on behalf ofthe employee. Under the new plan, member contnbutions consist solely of 1.25% of compensation paid by employee. The Institute also is required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation. For the year ended June 30, 1996, the ERS employer contribution rate for the Institute amounted to 14.890!cI ofcovered payroll and included the 4.75% contributed on behalfofthe employee under the old plan referred to above: The employer contributions are projected to liquidate the unfunded actuarial liability within 20 years based upon the actuarial valuation of June 30, 1995. Employer contributions are also made on amounts paid for accumulated leave to retiring employees.
Actuarial assumptions used by the ERS to compute actuarially determined contribution requirements are the same as those used to compute the pension benefit obligation.
Total contributions to the plan made during fiscal year 1996 amounted to $122,170.44, ofwhich $112,710.65 was made by the Institute and $9,459.79 was made by employees. These contributions met the requirements ofthe plan.
Funding Status and Progress Funding status and progress information is presented in the ERS June 30, 1996, financial report which may be obtained through ERS.
Trend Information Historical trend information is presented in the ERS June 30, 1996, financial report which may be obtained through ERS. This information gives an indication ofthe 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 for the purpose of providing retirement coverage for State employees who are temporary, seasonal, and part-time and are not

- 26-

COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT"G"

NOTE 9: RETIREMENT PLANS
GEORGIA DEFINED CONTRIBUTION PLAN
Plan Description members of a public retirement or pension system. GnCp is administered by the Board of Trustees of the Employees' Retirement System of Georgia. The Institute's payroll for the year ended June 30, 1996, for employees covered by GnCp was $256,214.30. The Institute's total payroll for all employees was $5,582,444.05.
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 ofTrustees. Ira member
has less than $ 3,500.00 credited to his/her account, the Board ofTrustees has the option of requiring 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.
Total contributions made by employees during fiscal year 1996 amounted to $19,216.64 which represents 7.5% of covered payroll. These contributions met the requirements of the plan.
NOTE 10: 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.

- 27-

COLUMBUS TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXIDBIT"G"

NOTE 11: NONMONETARY TRANSACTIONS
The Georgia Department of Technical and Adult Education - Administrative Central Office used lottery proceeds to purchase $242,000.00 ofequipment for Columbus Technical Institute during the fiscal year ended June 30, 1996. Those items with an acquisition cost of$I,OOO.OO or greater will be reflected as received in the General 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 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 ofcapital outlay projects. During the fiscal year ended June 30, 1996, the Georgia State Financing and Investment Commission paid $2,627,922.76 to various vendors for approved projects for the benefit of Columbus Technical Institute.
NOTE 12: 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.
Litigation, claims and assessments filed against Columbus Technical Institute (as an organizational unit.ofthe Department ofTechnical and Adult Education), ifany, are generally considered to be actions against the State ofGeorgia. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State ofGeorgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1996.
NOTE 13: BONDING INFORMATION
The President and all employees of Columbus Technical Institute are bonded under a Public Employees Blanket Bond written by the Employers Insurance ofWausau, their Bond No. 1450-02-110723, on which the premium was paid to October 1, 1996. 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 ofduty coverage insures the Institute to a maximum of $1,000,000.00 against loss sustained from failure ofits employees to perform faithfully their duties or to account properly for all monies and property received by virtue oftheir position or employment.
All employees ofColumbus Technical Institute are also bonded under Commercial Crime Policies written by the United States Fire Insurance Company, their Policy Nos. 6260116752 and 626 012294 4, on which the premiums were paid to October 1, 1996. 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 and from failure of its employees to perform faithfully.
- 28-

SUPPLEMENTARY INFORMAnON
'.
- 29 -

COLUMBUS TECHNICAL INSTITUTE COMBINING BALANCE SHEET (STATUTORY BASIS)
BUDGET FUND JUNE 30. 1996

EXHIBIT-H"

See accompanying notes and Independent Accountanfs Combined Report on
Review of Financial Statements and Supplementary Information.
- 30

COLUMBUS TECHNICAL INSTITUTE COMBINING STATEMENT OF CHANGES IN FUND BALANCE (STATUTORY BASIS)
BUDGET FUND YEAR ENDED JUNE 30; 1996

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" 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 30,1995
Adjustments to Prior Year's Accounts Receivable Refunds to Grantors
Georgia Department of Technical and Adult Education - Administrative Central Office Federal Financial Assistance
Reserved Fund Balance Carried Over from Prior Year as Funds Available
FUND BALANCE - JUNE 30
(To Exhibit "Hi

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR
EDUCATION

$

53,718.00

752.39 $

$

54,470.39 $

$

6,474.66 $

30,997.87 26.82

$

37,499.35 $

$ 17.88 17.88 $
o.eo $
60.83 61.63 $

$

752.39 $

618.07

246.95

53,525.00

$

55,142.41 $

$

36,827.33 $

17.88 $
17.88 $ 61.63 $

TOTAL
53,718.00 770.27
54,488.27
6,475.46 30,997.87
87.65 37,560.98
770.27 618.07
246.95 53,525.00 55,160.29
36,888.96

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

COLUMBUS TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1996

EXHIBIT"J"

"An
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR
EDUCATION

TOTAL

FUNDS AVAILABLE

REVENUES

STATE FUNDS

Allotment from Georgia Department of Technical and

Adult Education - Administrative Central Office

$

6,086,965,53

$ 6,086,965.53

FEDERAL REVENUES

$

856,768.91

$ 856,768.91

OTHER REVENUES RETAINED

Allotment from Georgia Department of Technical and

Adult Education - Administrative Central Office

Construction Reserve Trust Fund

Contract

Georgia Building Authority

American Disabilities Act

$

Fees

Application

Late Registration

Parking

Registration/Continuing Education

Testing

other

Interest Earned

Reimbursements from Various Sources

Rents

Sales and Services (Net)

Tuition

other Sources

$
15,511,21
28,797.50 6,317.25 4,036.90
231,757.11 7,991.62
44,925.68 703.19
14,613.84 2,762.82 65,736.87 1,042,425.75 9,345.95

20,167,00 $

20,167.00

15,511.21
28,797.50 6,317.25 4,036.90
231,757.11 7,991.62
44,925.68 703.19
14,613.84 2,762.82 65,736.87 1,042,425.75 9,345.95

Total other Revenues Retained

'. $

1,474,925.69 $

20,167,00 $ 1,495,092.69

Total Revenues

$

8,418,660.13 $

20,167.00 $ 8,438,827.13

CARRY-OVER FROM PRIOR YEAR

Transfer from Reserved Fund Balance Live Work Projects Prior Year Local Funds Private Grants

$

31,892.64

19,900.33

1,732.03

$

31,892.64

19,900.33

1,732.03

Total Carry-Over from Prior Year

$

53,525.00

$

53,525.00

Total Funds Available

$

8,472,185.13 $

20,167.00 $ 8,492,352.13

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

COLUMBUS TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30. 1996

EXHIBIT"J"

EXPENDITURES

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"S" LOTTERY FOR
EDUCATION

TOTAL

PERSONAL SERVICES-INSTITUTIONS
Salaries and Wages Employer's Contributions for:
F.I.C.A. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance

$

5,523,292.49

123,289.43 640,551.81 654,649.30
26,085.00 10,095.00 12,192.00

$

6,990,155.03

$ 5,523,292.49
123,289.43 640,551.81 654,649.30
26,085.00 10,095.00 12,192.00
$ 6,990,155.03

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
Travel Equipment
EqUipment Purchases LeaselPurchase of Equipment Rental of EqUipment Computer Charges Software Telecommunications Per Diem, Fees and Contracts Per Diem and Fees

$

5,381.68

348,283.47

118,811.22

298,287.89

565.00

13,590.45

209,022.29

23,266.58

34,275.97

107,624.09 10,318.60 15,090.62

22,159.84 57,155.03

60,875.73

$

1,324,708.46

$

5,381.68

348,283.47

118,811.22

298,287.89

565.00

13,590.45

209,022.29

23,266.58

34,275.97

107,624.09 10,318.60 15,090.62

22,159.84 57,155.03

60,875.73

$ 1,324,708.46

QUICK START PROGRAM

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

$

39,546.00

530.70 4,670.40 4,943.28
82.00 288.00 354.00

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

$

39,546.00

530.70 4,670.40 4,943.28
82.00 288.00 354.00

- 33 -

COLUMBUS TECHNICAL INSTITUTE COMBINING STATEMENT OF FUNDS AVAILABLE ANp EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1996

EXHIBIT"J"

EXPENDITURES
QUICK START PROGRAM
Other Costs Motor Vehicle Expenses Repairs and Maintenance utilities Other Operating Expenses
Travel Equipment
LeaselPurchase of Equipment Telecommunications
JOB TRAINING PARTNERSHIP ACT
Personal Services Salaries and Wages Employers Contributions for: F,I.C.A Retirement Health Insurance
Other Costs Supplies and Materials Other Operating Expenses
Travel
REPAIRS AND RENOVATIONS
Other Costs Repairs and Maintenance
. Per Diem, Fees and Contracts Contracts
Total Expenditures
Excess of Funds Available over Expenditures

"An
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR EDUCATION

TOTAL

$

53,97

6,896,52

26,623.49

555.35

1,095.78

2,621.84 8A16.67

$

96,678.00

$

53,97

6,896,52

26,623.49

555.35

1,095,78

2,621.84 8,416,67

$

96,678,00

$

15,274,60

218,33 1,124,99 1,190.68

3,269,71 5,647.36 2,920,10

$

29,645,77

$

15,274,60

218,33 1,124,99 1,190.68

3,269,71 5,647,36 2,920,10

$

29,645,77

$

5,167.00 $

5,167,00

15,000.00

15,000,00

$

20,167.00 $

20,167,00

$

8,441,187,26 $

20,167.00 $ 8,461,354.26

30,997.87

0.00

30,997,87

$

8,472,185.13 $

20,167.00 $ 8,492,352,13

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

COLUMBUS TECHNICAL INSTITUTE COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30. 1996

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 Govemment Student Insurance Student Organization Fund Team 3 Activity Fund

ASSETSI LIABILITIES JULY 1,1995

ADDITIONS

DEDUCTIONS

ASSETSI LIABILITIES JUNE 30,1996

$

430.68 $

4,360.00 $

2,788.67 $

2,002.01

480.00

125.00

75.00

530.00

862.19

3,380.00

3,933.02

309.17

167.44

41.62

209.06

1,538.45

1,087.31

451.14

101.62

101.62

0.00

7,629.25

3,716.68

5,142.66

6,203.27

12,873.00

700,110.25

712,983.25

0.00

6,717.87

989,909.98

989,703.00

6,924.85

13,954.83

50,302.00

41,064.55

23,192.28

12,797.11

17,575.19

10,329.98

20,042.32

2,439.50

3,273.00

2,820.00

2,892.50

835.59

1,420.00

2,101.73

153.86

163.15

163.15

$

60,990.68 $ 1,774,213.72 $ 1,772,130.79 $ =====6~3,=07=3=.6==1

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 35:-

COLUMBUS TECHNICAL INSTITUTE CASH AND CASH EQUIVALENTS JUNE 30, 1996
NONINTEREST BEARING ACCOUNTS
Columbus Bank and Trust Company, Columbus, Georgia
INTEREST BEARING ACCOUNTS
Columbus Bank and Trust Company, Columbus, Georgia
Money Market Accounts
OTHER
Cash on Hand PetlyCash

SCHEDULE -1"

$

736.79

20,862.74 675.00
$ =====2=2,=27=4=.5=::3

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

COLUMBUS TECHNICAL INSTITUTE INVESTMENTS JUNE 30, 1996

SCHEDULE "2"

NONEXPENDABLE TRUST FUND
Carf Patrick Chair Columbus Bank and Trust Company, Columbus, Georgia Certificate of Deposit No, 1143385

PURCHASE DATE
June 28, 1996

INTEREST RATE
5.35%

MATURITY DATE

AMOUNT

June 30,1997 $ 157,001.20

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

COLUMBUS TECHNICAL INSTITUTE SCHEDULE OF FEDERAL REVENUES
YEAR ENDED JUNE 30, 1996

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
Tech-Prep Education Through Muscogee County School District
Labor, U. S. Department of Job Training Partnership Act Through City of Columbus Consolidated Govemment Through Georgia Department of Technical and Adult Education - Administrative Central Office

CFDA NUMBER

AMOUNT

84.048 $ 674,608,15

84.243

10,000,00

17.250 17.250

142,514,99 29,645,77

$ 856,768,91

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

COLUMBUS TECHNICAL INSTITUTE RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL
YEAR ENDED JUNE 30, 1996

SCHEDULE "4"

Totals per Annual Supplement Accruals
June 30, 1995 June 30, 1996
Totals per Report
SUMMARY BY OBJECT CLASS BUDGET FUND Personal Services-Institutions Operating Expenses-Institutions Quick Start Program Job Training Partnership Act
NONEXPENDABLETRUSTFUND Carl Patrick Chair

SALARIES AND WAGES
$ 5,576,076.55 $

TRAVEL
39,018.70

6,367.50

-795.85 69,00

$ 5,582,444.05 $ ====3i::::!8,=29:=1=,8=5

$ 5,523,292.49 $
39,546,00 15,274.60
$ 5,578,113.09 $
4,330.96

34,275.97 1,095.78 2,920.10
38,291.85

$ 5,582,444.05 $ ====3i::::!8,=29:=1=.8==5

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

SECTIONll FINDINGS AND IMPROPER OR QUESTIONED COSTS

COLUMBUS TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30. 1996

STATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR OUESTIONED COSTS

The status ofthe finding disclosed in the review report for the year ended June 30, 1995, is indicated below:

Audit Control Number

Status ofFinding

828-95-01

Corrective Action Implemented