COLUMBUS TECHNICAL COLLEGE COLUMBUS, GEORGIA INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED- UPON PROCEDURES FOR FISCAL YEAR ENDED JUNE 30,2010 Gw--6-a-l ent of I Audits and V o o u n t s I ' 1 . i j ~ i j [ ~ State Auditor COLUMBUS TECHNICAL COLLEGE - TABLE OF CONTENTS - INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES EXHIBITS A SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT B STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING SOURCE COMPARED TO BUDGET Page RUSSELL W. HINTON STATE AUDITOR (404) 656-2174 DEPARTMEONFTAUDITASND ACCOUNTS - 270 Washington Street, S.W., Suite 1 156 Atlanta, Georgia 30334-8400 December 6,2010 Members of the State Board of Technical and Adult Education Members of the Local Board of Directors and Honorable J. Robert Jones, President Columbus Technical College lnde~endenAt ccountant's Reeort on AeelyinP Agreed-Upon Procedures Ladies and Gentlemen: We have performed the procedures enumerated below, which were agreed to by the Technical College and the System Office (Oversight Unit) of the Technical College System of Georgia, solely to assist you in assessing the accuracy of the annual financial statement information reported to the System Office by the Technical College for inclusion in the State of Georgia's Comprehensive Annual Financial Report(CAFR)and SingleAudit Report and to assist you in assessing the accuracy of budget basis information provided in the Summary Budget Comparison and Surplus Analysis Report and Statement of Program Revenues and Expdtures by Funding Source Compared to Budget, which is attached as Exhibits A and B, respectively. Columbus Technical College's management is responsible for the financial information reported to the System Office of the Technical College System of Georgia. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of the parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. 1. Review selected balance sheet items reported on the annual financial statement worksheets (cash, accounts receivable, accounts payable, deferred revenues, net assets). Confirm that these items have adequate supporting documentation and are properly reconciled to the Technical College's general ledger. The subsidiary detailed listing provided to support the accounts payable balance of $352,816.68reported on the annual financial statement worksheets had an unidentified variance of $8,870.97. 2. Obtain the Technical College's GAAP basis worksheets for Statement of Net Assets and Statement of Revenues, Expenses and Changes in Net Assets (SRECNA) information that was submitted for inclusion in the State's CAFR and Single Audit. Utilizing test scripts, confirm that financial information presented in these worksheets properly support activity reported in the Technical College's accounting records. The year end GAAP entry to remove Agency Fund activity was not made correctly resulting in an understatement of Funds Held for Others of $83,315.98 and a corresponding overstatement of Net Assets. The Technical College corrected this entry and the GAAP basis financial statements were resubmitted to the Technical College System of Georgia. 3. Obtain the Technical College's Statement of Cash Flows submitted for inclusion in the State's CAFR and Single Audit. Utilizing cash flow worksheets, confirm information reported on Statement of Cash Flows. We did not note any exceptions as a result of our procedures. 4. Obtain the Technical College's worksheets for financial statement note disclosure information submitted for inclusion in the State's CAFR and Single Audit. Utilizing notes worksheets and other supporting documentation confirm that note disclosures related to Cash, Investments, Accounts Receivable, Capital Assets, Long-Term Debt, Lease Obligations and Retirement Plans have been properly reported. We did not note any exceptions as a result of our procedures. 5. Review the Technical College's year end GAAP basis journal entries. Obtain documentation for GAAP journal entries and confirm that the entries were posted to the Technical College's annual financial statement worksheets. The year end GAAP entry reclassifying carryover reserves from the previous year was not made correctly. This error resulted in Operating Expenses - Supplies and Other Services and Nonoperating Revenue - Other being overstated by $412,474.93. The Technical College corrected this entry and the GAAP basis financial statements were resubmitted to the Technical College System of Georgia. 6. Confirm that State Appropriation revenues, receivables and remittances of prior year surplus balances have been properly recorded in the Technical College's financial records. Prior year surplus balances should be netted against State Appropriation revenues in the GAAP basis financial statements; however, prior year surplus balances should be reflected as fund balance adjustments on the Budget basis financial statements. We did not note any exceptions as a result of our procedures. 7. Obtain listing of write-off requests for accounts receivable less than $3,000.00 for fiscal year 2010. Confirm that these write-off requests have been approved by the State Accounting Officer and have been posted to the Technical College's financial statements. We did not note any exceptions as a result of our procedures. 8. Verify that the listing of salaries, travel, and professional services reported to the Department of Audits is in accordance with O.C.G.A. 50-6-27 reconciles to amounts recorded in the Technical College's financial statements. We did not note any exceptionsas a result of our procedures. 9. Review the year end Budgetary Statements including the Summary Budget Comparison and Surplus Analysis Report (Exhibit A) and Statement of Program Revenues and Expenditures by Funding Source Compared to Budget(Exhibit B). Confirm that budget information presented in these statements supports activity reported in the Technical College's accounting records, the legal level of budgetary control (funding source within program) was maintained, and determine if any budget overexpendituresexist. We did not note any exceptions as a result of our procedures. 10. Obtain documentation for Budget basis reserves reported by the Technical College on the Summary Budget Comparison and Surplus Analysis Report (Exhibit A). Confirm that the reserves are properly documented, valid and appropriate. We did not note any exceptions as a result of our procedures. 11.Review the H.O.P.E. Scholarship Program reconciliation between the Technical College and the Georgia Student Finance Commission. Confirm that information reported to the Georgia Student Finance Commission has been reconciled with H.O.P.E. Scholarship activity reported on the Technical College's financial records. We did not note any exceptions as a result of our procedures. 12. Review the Schedule of Expenditures of Federal Awards information submitted by the Technical College for inclusion in the Statewide Single Audit. Confirm that the information is properly presented and supported by the Technical College's accounting records. We did not note any exceptions as a result of our procedures. 13. Review capital asset records to ensure that (1) subsidiary ledgers are appropriately reconciled to the ledgers, (2) capitalization thresholds are being properly followed, and (3)a complete annual physical equipment inventory is being conducted and that issues noted during the physical inventory are being properly addressed by management. We did not note any exceptions as a result of our procedures. 14. Review bank reconciliations during the year under review to ensure that management is preparingthem timely and that reconciling items are being addressed by management timely and in an appropriate manner. We did not note any exceptions as a result of our procedures. These agreed-upon procedures do not constitute an audit of the financial statements or any part thereof, the objective of which is to express an opinion on the financial statements or a part thereof. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the specified users listed above and is not intended to be and should not be used by anyone other than these specified parties. Respectfully submitted, ~ k s e lWl . Hinton, CPA, CGFM State Auditor EXH IBlTS COLUMBUS TECHNICAL COLLEGE SUMMARY BUDGET COMPARISONAND SURPLUS ANALYSIS REPORT YEAR ENDEDJUNE 30,2010 REVENUES State Appropriation State General Funds Federal Funds Other Funds Total Revenues CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance Total Funds Available EXPENDITURES Economic Development Technical Education Total Expenditures Excess of Funds Available over Expenditures FUND BALANCE JULY 1 Reserved Unresewed ADJUSTMENTS Prior Year Payables/Expenditures Prior Year Receivables/Revenues UnreSe~edFund Balance (Surplus) Returned to Technical College System of Georgia Year Ended June 30,2009 Refunds to Grantors Federal Financial Assistance Returned to Technical College System of Georgia Year EndedJune 30.2009 Prior Year Reserved Fund Balance Included in Funds Available FUND BALANCEJUNE 3 0 aMMARY OF FUND BALANCE Reserved Department Sales and Services Federal Financial Assistance Local Grants and Contracts Live Work Projects Continuing Education Technology Fees UncoilectibleAccounts Receivable Tuition Total Fund Balance BUDGET ACTUAL VARIANCE FAVORABLE (UNFAVORABLE) COLUMBUS TECHNICAL COLLEGE STATEMENT OF PROGRAMREVENUESAN0 MPENDITURES BY FUNDING SOURCE COMPARED TO BUDGET E A R ENDED JUNE 30.2010 Economlc Development Other Funds Orog~nal Appmprlabon Flnal Budget Current Year Revenues Funds Avarable compared to Budget Prior Year CarrrOver Total Funds Ava~lable Variance Posltlve [Negauve) Tecnnlcal Educatlon State ApProprlatlcm State General Funds Federal Funds American Recoveryand Reinvestment Act of 2009 Federal Stabilization Funds Other Federal Stimulus mner Federal Funds Other Funds Total Technical Educatlon Grand Totals -All Programs mpendltures Comparedto Budget Variance Posltiwe Actual (Negative) Actual FundsAvailable Over/lUnder) Expenditures Prlor Period Adjustments Other Adjustments Program Fund Balances Transfers Program Fund Balances Reserve Sur~lus Total Fund Balance Unexpendable Reserves Uncollectjble Accounts Receivable