Review report, state of Georgia, Coosa Valley Technical Institute, Rome, Georgia, year ended June 30, 1996

GA
A Qa-UI'"G"j
.Rl Vb C176 Igcl5-Cfb
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

REVIEW REPORT STATE OF GEORGIA COOSA VALLEY TECHNICAL INSTITUTE
ROME, GEORGIA YEAR ENDED JUNE 30, 1996

COOSA VALLEY 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 BALANCE (STATUTORY BASIS)

GOVERNMENTAL FUND TYPE

3

C STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

4

STATEMENTS OF FUNDS AVAILABLE AND EXPENDITURES

COMPARED TO BUDGET

BUDGET FUND

D

"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

7

E

"B" LOTTERY FOR EDUCATION

8

F NOTES TO THE FINANCIAL STATEMENTS

9

SUPPLEMENTARY INFORMATION

G COMBINING BALANCE SHEET (STATUTORY BASIS)

BUDGET FUND

24

H COMBINING STATEMENT OF CHANGES IN FUND BALANCE

(STATUTORY BASIS)

BUDGET FUND

25

I COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

26

J COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

FIDUCIARY FUND TYPE - AGENCY FUNDS

29

SCHEDULES

1 CASH AND CASH EQUIVALENTS

30

2 SCHEDULE OF FEDERAL REVENUES

31

3 RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL

32

COOSA VALLEY TECHNICAL INSTITUTE - TABLE OF CONTENTS -
SECTION II 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
January 17, 1997

Honorable Zell Miller, Governor Members ofthe General Assembly of Georgia Members ofthe State Board of Technical and Adult Education Members ofthe Local Board ofDireetors
and Honorable Ronald A. Swanson, President Coosa Valley 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 F) of Coosa Valley 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 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 of the management of Coosa Valley 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 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 G through J and Schedules 1 through 3) 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.

CLV:cm
96ARL-4T

Claude L. Vickers State Auditor

FINANCIAL STATEMENTS - 1-

COOSA VALLEY TECHNICAL INSTITUTE
COMBINED BALANCE SHEET (STATUTORY BASJS)
ALL FUND TYPES AND ACCOUNT GROUPS
JUNE 30, 1996

EXHIBIT "A"

~ Cash and Cash Equivalents
Accounts Receivable Slate Funds Federal Financial Assistance 0Iher
Prepaid Items
Fixec:l Assets Equipment
Amounts to be Providec:I for Payment of: Accruec:I Compensated Absences Capital Lease Commitments

GOVERNMENTAL FiDUCIARY

FUND TYPE FUND TYPE

BUDGET

AGENCY

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

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

$

146274.91 $ 45,578.55

$ 191,853,46 $ 217,700.36

$

9,072.07

92,651.92 $ 439.00

49,369.34

665,00

$

151,093,33 $ 1,104,00

$

632.08

$

9,072.07 $

41,27928

93,090,92

135,171.81

50,034.34

79,981.50

$ 152,197.33 $ 256,432,59

$

632,08 $

8,614,85

$ 2,288,450.43

$ 2288,450,43 $ 2,038,738,46

$ 272,33225 $ 0.00
$ 272,33225 $

272,33225 $ 0.00
272,332.25 $

228,478.36 2,923,20
231,401.56

Total Assets

$

298,000.32 $ 46,682,55 $ 2,288,450,43 $ 272,33225 $ 2,905,465.55 $ 2,752,887.82

LIABILITIES AND FUNp EqUITY

liabilities

Accounts Payable

$

Salaries Payable

Payroll Wdhholdings

Deferrec:l Revenue

Tuition and Fees

Funds Held In Custody for Others

Compensatec:l Absences

Capital Leases

Total liabilities

$

Fund Equity

Investment in General Fixed Assets

Fund Balance

Reserved

Federal Financial Assistance

For Refund to Georgia Department

of Technical and Adult Education

Administrative Central 0IIice

$

For Expired Grant Balances

Live Work Projects

Unreserved

Designatec:l

Surplus

Regular

Total Fund Equity

$

255,592.12 6,150.00 25,00
14,139.00 $ 46,682.55
275,906,12 $ 46,682,55

$
$ 272,33225 0,00
$ 272,332,25 $

255,592,12 $ 6,150.00 25.00
14,139.00 46,682.55 272,33225
0,00
594,920.92 $

356298.29 10,417.18 50.00
12,889.39 11,059.72 228,478,36 2,923,20
622,116,14

$ 2,288,450.43

$ 2,288,450,43 $ 2,038,738.46

1,860.66 2,561.06 17,672,48
0,00 22,094.20

$ 2,288A50,43

1,860,66 2,561,06 17,672,48

512.11 0,00
16,469.55

0.00

75,051,56

$ 2,310,544.63 $ 2,130,n1,68

Total Liabilities and Fund Equity

$

298.000,32 $ 46,682,55 $ 2,288.450.43 $ 272,332.25 $ 2,905,465,55 $ 2,752,887,82

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.

-2-

COOSA VALLEY TECHNICAL INSTITUTE STATEMENT OF CHANGES IN FUND BALANCE (STATUTORY BASIS)
GOVERNMENTAL FUND TYPE YEAR ENDED JUNE 30. 1996

EXHIBIT"B"

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. -3-

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

EXHIBITC

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 Contracts Georgia Department of Human Resources PEACH Project Georgia Institute of Technology Satellite Technology Program Fees Application Graduation Registration/Continuing Education Testing Other Reimbursements from Various Sources Sales and Services (Net) Tuition Other Sources
Total Other Revenues Retained
Total Revenues
CARRY-OVER FROM PRIOR YEAR
Transfer from Reserved Fund Balance Live Work Projects
Total Funds Available
EXPENDITURES
PERSONAL SERVICES-INSTITUTIONS
Salaries and Wages Employer's Contributions for:
FJ.CA Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
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.
-4-

TOTALS YEAR ENDED JUNE 30,1996 JUNE 30,1995

$ 3,951.831,00 $ 4,004,050.49 $ 910,746.31 $ 772,051.05

$ 249,734.00 $

0.00

36,477.48

37,670.07

20,600.00

12,148.89

43,448.00 3,110.00 230,537.30 19,708.99 41,560.00 15,631.98 37,255.37 862,426.06 .. 8,218.82

37,562.03 0.00
277,775.07 15,217.00 0.00 0.00 38,582.96
630.057.31 44,578.53

$ 1,568,708.00 $ 1,093,591.86

$ 6.431,285.31 $ 5,869,693.40

$

16.469.55 $ _--:.1.:.J3.=.21;..;4~.49~

$ 6.447.754.86 $ 5,882,907.89

$ 3,402,068.67 $ 3,152,864.51

76,128.41 352,424.92 367.402.75
19,662.00 3,264.00 3.858.00

66,287.07 321,839.47 352,085.50
20,259.35 2,212.30
3.980.60

$ 4,224,808.75 $ 3,919,528.80

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

EXHIBITC

EXPENDITURES
OPERATING EXPENSES-INSTITUTIONS
OtherCosts 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 Motor Vehicle Purchases Equipment
Equipment Purchases Lease/Purchase of Equipment Rental of Equipment Computer Charges Software Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Contracts
QUICK START PROGRAM
Other Costs Supplies and Materials Repairs and Maintenance Utilities Rents (Other than Real Estate) Publications and Printing
Equipment Lease/Purchase of Equipment Rental of Equipment
Real Estate Rentals Telecommunications Per Diem, Fees and Contracts
Per Diem and Fees
ADULT LITERACY GRANTS
Personal Services Salaries and Wages Employer's Contributions for: F.r.C.A. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance

TOTALS YEAR ENDED JUNE 30,1996 JUNE 30,1995

$

9,218.26 $

6,192.32

232,253.70

199,643,45

170,459,85

137,539,53

206,135,87

164,756,14

0.00

750,00

5,096.58

3,692.81

106,384.59

194,416.11

15,787.14

7,416.95

48,488.56

40,399.64

38,212,32

49,724,00

220,678,40
2,866.36 0,00

130,982.03 2,923.20 492.60

8,963.95 51,650,44

20,912.50 20,075,68

n,936.00 21,123,58

61,396.06 34,260.38

$ 1,215,255.60 $ 1,075,573.40

$

0,00 $

92.02

0,00

2,155.30

0.00

8,342,28

0.00

4,973.76

0.00

275.00

0.00

418,98

0.00

3,089.96

0.00

26,400.00

0.00

4,612,70

0.00

745.51

$

0,00 $

51,105,51

$ 336,066,84 $ 312,794.29

4,729,28
20,409.72 22,110,13
0,00 0,00
0.00

5,415,75
17,915.80 20,623.1.4
465,10 59,80
107.60

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
-5-

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

EXHIBITC

EXPENDITURES
ADULT LITERACY GRANTS
Other Costs Motor Vehicle Expenses Supplies and Materials Other Operating Expenses Publications and Printing
Travel Equipment
Equipment Purchases Per Diem, Fees and Contracts
Per Diem and Fees
JOB TRAINING PARTNERSHIP ACT
Personal Services Salaries and Wages Employer's Contributions for: F.I.CA Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
Other Costs
Supplies and Materials Repairs and Maintenance Utilities Other Operating Expenses TI'lIY8I TeIecoIi'lmunications Per Diem, Fees and Contracts Contracts
EqUIPMENT-TECHNICAL INSTITUTES
Equipment Equipment Purchases
REPAIRS AND RENOVATIONS
Other Costs Repairs and Maintenance Other Operating Expenses
Talai Expenditures
Excess of Funds Available over Expenditures
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 -6-

TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30, 1995

$

622,00 $

0.00

7,580.88

12,100.45

26,448.18

2,385.00

120.00

98.00

5,802.21

7,430.20

365.32

428.65

1,706.13

0.00

$ 425,960.69 $ 379,823.78

$ 139,361.12 $
4,443.45 14,539.38 14,989.26
0.00 0.00 0.00
20,722.76 357.00
2,578.18 56,539.02
2,012.30 312.85
7,875.00
$ 263,730.32 $

46,047.42
2,337.42 10,489.64
1,489.67 .232.55
29.90 53.80
0.00 0.00 0.00 50.96 178.28 0.00
6,625.00
67,534.64

$

44,356.00 $ 295,894.00

$ 249,734.00 $ 0.00

50,000.00 265.98

$ 249,734.00 $

50,265.98

$ 6,423,845.36 $ 5,839,726.11

23,909.50

43,181.78

$ 6,447,754.86 $ 5,882,907.89

COOSA VALLEY 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"

EXPENDITURES Personal Services-lnstiMions Operating Expenses-lnstiMions Adult Literacy Grants Job Training Partnership Act
Excess of Funds Available over Expenditures

$ 4,297,869.00 $ 4,224,808,75 $

1,430,352.00

1,215,255.60

386,414.00

425,960.69

363,118,00

263,730.32

73,060.25 215,096,40 -39,546.69
99,387.68

$ 6,477,753.00 $ 6,129,755.36 $ _ _...;;34..;.7~'.;..,;99;..;.7.;.;.64..;...

$

23,909.50 $ ======2=3=,9:=0=9.=50=

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.
-7-

COOSA VALLEY TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"8" LOTTERY FOR EDUCATION YEAR ENDED JUNE 30,1996

EXHIBIT"E"

FUNDS AVAILABLE
REVENUES
State Funds Other Revenues Retained

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$

44,356.00 $

44,356.00 $

0.00

249,734.00

249,734.00

0.00

$ 294,090.00 $ 294,090,00 $

--.;;0..;.;;.0..;;...0

EXPENDITURES
Equipment-Technical Institutes Repairs and Renovations

$

44,356.00 $

44,356.00 $

0.00

249,734.00

249,734,00

0.00

$ 294,090.00 $ 294,090.00 $

..;..0..;..00_

Excess of Funds Available over Expenditures

$

0.00 $ =======0...0.=.,=0

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.
-8-

COOSA VALLEY TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30.1996

EXHIBIT "F"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Coosa Valley 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 Coosa Valley Technical Institute as a separate reporting entity..
The Institute's Local Board ofDirectors is composed of nine (9) 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 ofTechni~ 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 Coosa Valley Technical Institute. The Institute does not have authority to retain unexpended State funds (surplus) for any given fiscal year. Accordingly, Coosa Valley Technical Institute is considered an organizational unit ofthe 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 Coosa Valley 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 of the State of Georgia. A fund is an independent fiscal and accounting entity with a selfbalancing set ofaccounts. 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 offunds 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 staff which 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.
FIDUCIARY FUND TYPE
AGENCY FUNDS - The f\1nds used to account for assets held for use by other funds, governments, or individuals.
-9-

COOSA VALLEY TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

FUND ACCOUNTING

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 ifhistorical 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 include~ 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 ofcurrent 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 prescn'bed 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 ofTechnical and Adult Education for remittance to'the Office ofTreasury and Fiscal Services in the subsequent fiscal year.

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 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.

.

- 10-

COOSA VALLEY TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXInBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPE BUDGETFUND
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 expenditurtHiriven 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 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 permitted by statutes and regulations ofthe State of Georgia, but is not consistent 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 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 AGENCY FUNDS
Agency Funds are custodial in nature and do not measure results ofoperations or have a measurement focus. The modified accrual basis ofaccounting 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.

- 11 -

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

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

Adult Literary Grants

$ 39546.69

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

ACCOUNTS RECEIVABLE 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 information available.

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:

FEDERAL FINANCIAL ASSISTANCE REFUND TO GEORGIA DEPARTMENT OF TECHNICAL AND ADULT EDUCATION ADMINISTRATIVE CENTRAL OFFICE
Coosa Valley Technical Institute receives Federal funds for the Adult Education Act and the Carl D. Perkins Vocational and Applied Technology Education Act through the Georgia Department ofTechnical 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, 1996. At June 30, 1996, the following programs had unexpended Federal funds which should be refunded to the Administrative Central Office:

Adult Education Act Adult Education
Carl D. Perkins Vocational and Applied Technology Education Act Vocational Education - Basic Grants to States

$ 1,856.46 4.20

$ 1.860.66

- 12-

COOSA VALLEY TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

RESERVED FUND BALANCE

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

LIVE 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 s~bsequent fiscal years.

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 ofthis obligation as this amount will not be liquidated with expendable available financial resourc~s. 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 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 ofthe Institute's financial position and operations or would cause the statements to be unduly complex and difficult to understand.

- 13 -

COOSA VALLEY TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT "F"

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 anyone 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 ofthe State ofGeorgia.
(2) Bonds, bills, certificates ofindebtedness, notes, or other obligations ofthe 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 ofthe State of Georgia.
(5) Bonds, bills, certificates ofindebtedness, 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, 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 ofthe State of Georgia (which include technical institutes) the option of exempting 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.
- 14-

COOSA VALLEY TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXHIBIT "F"

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.

Cash Deposits

Carrying Amount

Bank Balances

Risk Categories

2

3

$ 191 103 46 $ 31575803 $ 100 000 00 $==="Q~.OO,Q!; $ 215J58,Q3

NOTE 3: 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 of $1,000.00 or greater are reflected in the General Fixed Assets Account Group.

The following is a summary ofchanges ofequipment for the General Fixed Assets Account Group during the

fiscal year:

.

Balance July 1, 1995 Additions Deductions Balance June 30, 1996

$ 2,038,738.46 266,343.17 16,631.20
$ 2,288.450.43

NOTE 4: 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

$ 228,478.36

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

42,306.57 1,547.32

Balance June 30, 1996

$ 272.332.25

Capital Leases $ 2,923.20

Total $ 231,401.56

2,923.20

42,306.57 1,547.32 2,923.20

$

0.00 $ 272.332.25

- 15 -

COOSA VALLEY TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXInBIT"F"

NOTE 5: RISK MANAGEMENT
Public Entity Risk Pool The State Personnel Board - Merit System ofPersonnel Administration administers for the State ofGeorgia a program ofhealth benefits for the employees ofunits ofgovernment 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 ofGeorgia 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.
NOTE 6: 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 ofthe State of Georgia and county health departments, pennits 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 will be presented in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1996.

- 16-

COOSA VALLEY TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXIllBIT "F"

NOTE 7: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Plan Description Coosa Valley Technical Institute participates in the Teachers Retirement System ofGeorgia (TRS), a costsharing multiple-employer public employee retirement system (PERS) established by the General Assembly ofGeorgia for the purpose of providing retirement allowances and other benefits for teachers ofthe State of Georgia. The Institute's payroll for the year ended June 30, 1996, for employees covered by TRS was $2,631,006.39. The Institute's total payroll for all employees was $3,877,496.53.
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 of60 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 cr~ditable 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 10.10 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.
Members become fully vested after ten years of service. If a 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 of Trustees 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 $442,275.04, ofwhich $310,721.87 was made by the Institute and $131,553.17 was made by employees. These contributions represented 11.81% (Institute) and 5% (employees) of covered payroll.

- 17 -

COOSA VALLEY TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXHIBIT "F"

NOTE 7: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

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 proje~ed 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 ofJune 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.

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 th~ year ended June 30,1996, of $310,721.87 was actuarially determined and represented .0500% oftotal 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 Coosa Valley 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

- 18 -

COOSA VALLEY TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT"F"

NOTE 7: RETIREMENTPLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Plan Description ended June 30, 1996, for employees covered by ERS was $493,863.18. The Institute's total payroll for all employees was $3,877,496.63.
Benefits The benefit structure of ERS was significantly modified on July I, 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 ofthe 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.
Contributions Required and Contributions Made As established by State statute, all full-time employees of the 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 behalfofthe employee. Under the new plan, member contributions 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!cl 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.
- 19-

COOSA VALLEY TECHNICAL INSTITUTE NOTES TO TIIE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT "F"

NOTE 7: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Contributions Required and Contributions Made Total contributions to the plan made during fiscal year 1996 amounted to $79,709.52, of which $73,536.23 was made by the Institute and $6,173.29 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.
GEORGIADE~DCON~UTIONPLAN
Plan Description Coosa Valley Technical Institute participates in the Georgia Defined Contribution Plan (GDCP) which is a single-employer 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 members of a public retirement or pension system. GDCP 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 GDCP was $591,138.62. The Institute's total payroll for all employees was $3,877,496.63.
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. !fa member has less than $ 3,500.00 credited to hislher account, the Board of Trustees 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 hislher 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.

- 20-

COOSA VALLEY TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT "F"

NOTE 7: RETIREMENT PLANS
GEORGIA DEFINED CONTRIBUTION PLAN
Contributions and Vesting Total contributions made by employees during fiscal year 1996 amounted to $44,335.68 which represents 7.5% of covered payroll. These contributions met the requirements ofthe plan.
NOTE 8: 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 offorty-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 offorfeited annual and sick leave are entitledto additional service credit in the Employees' Retirement System of Georgia.
NOTE 9: NONMONETARY TRANSACTIONS
The Georgia Department of Technical and Adult Education - Administrative Central Office used lottery proceeds to purchase $331,600.00 of equipment for Coosa Valley Technical Institute during the fiscal year ended June 30, 1996. Those items with an acquisition cost of $1,000.00 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 of capital outlay projects. During the fiscal year ended June 30, 1996, the Georgia State Financing and Investment Commission paid $954,405.75 to various vendors for approved projects for the benefit of Coosa Valley Technical Institute.
NOTE 10: CONTINGENCIES
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. This could result in refunds to the grantor agency for any 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, ifany, to be immaterial to its overall financial position.
- 21 -

COOSA VALLEY TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT "F"

NOTE 10: CONTINGENCffiS
Litigation, claims and assessments filed against Coosa Valley 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. 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 11: BONDING INFORMATION
The President and all employees of Coosa Valley 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 Coosa Valley 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 oftheir position or employment.
All employees ofCoosa Valley 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 ofits employees to perform faithfully.

- 22-

SUPPLEMENTARY INFORMAnON - 23 -

COOSA VALLEY TECHNICAL INSTITUTE COMBINING BALANCE SHEET (STATUTORY BASIS)
BUDGET FUND JUNE 30,1996

EXHIBIT "G"

ASSETS Cash and Cash EqUivalents Accounts Receivable
State Funds Federal Financial Assistance Other
Prepaid Items

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTIERY FOR
EDUCATION

TOTAL

$

82,147,91 $

64,127.00 $ 146,274.91

$

9,072.07

92,651.92

49,369.34

$

151,093.33

$

632.08

$

9,072.07

92,651.92

49,369.34

$ 151.093,33

$ _ _--=6;,;;;32;;;,;.,;;.08;;;.

Total Assets

$

233,873.32 $

64,127.00 $ 298,000.32

Total Liabilities and Fund Equity

$

233,873.32 $

64,127.00 $ 298,000,32

see accompanying notes and Independent Accountant's Combined Report on
Review of Financial Statements and Supplementary Information.
- 24 -

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

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

EXHIBIT-I-

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

EXHIBIT"'"

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR EDUCATION

TOTAL

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

EXHIBIT-r

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 28

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

EXHIBIT"J"

FUND D.TAE. Activities Fund HOPE Scholarship Program PeD Grant Program Student Activities Fund Student Insurance

ASSETSI LIABILITIES JULY 1,1995

ADDITIONS

DEDUCTIONS

ASSETSI LIABILITIES JUNE 30,1996

$

-95.83 $

6,312.40 $

6,690.87 $

-474.30

0.00

977,620.00

956,836.00

20,784.00

0.00

499,868.00

496,358.00

3,510.00

11,034.05

56,682.62

43,106.10

24,610.57

121.50

2,269.28

4,138.50

-1,747.72

$

11,059.72 $ 1,542,752.30 $ 1,507,129.47 $ ====4:::!6,=:68:=2=:.5:=5

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

COOSA VALLEY TECHNICAL INSTITUTE CASH AND CASH EQUIVALENTS JUNE 30.1996
NONINTEREST BEARING ACCOUNTS NationsBank of Georgia, Rome, Georgia
OTHER Cash on Hand PetlyCash

$ 191,103.46
750.00
$ 191,853.46

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

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

SCHEDULE "2"

BUDGET FUND
Appalachian Regional Commission Appalachian Vocational and Other Education Facilities and Operations Direct
Education, U. S. Department of
Adult Education - State Administered Basic Grant Program Through Georgia Department of Technical and Adult Education - Administrative Central Office
Vocational Education - Basic Grants to States Through Georgia Department of Technical and Adult Education - Administrative Central Office
Health and Human Services, U. S. Department of Job Opportunities and Basic Skills Training Through Georgia Department of Human Resources Various Offices of Department of Family and Children Services
Labor, U. S. Department of Job Training Partnership Act Through Coosa Valley Regional Development Center Through Georgia Department of Technical and Adult Education - Administrative Central Office

CFDA NUMBER

AMOUNT

23.012 $

54,524.24

84.002 84.048

209,449.68 291,544.84

93.561

52,322.35

17.250 17.250

223,179,51 79,725.69

$ 910.746.31

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

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

SCHEDULE "3"

Totals per Annual Supplement

Accruals June 30,1996 June 30, 1995

Adjustments Clay, Evans, Penrose, Riddle, Simmons,

Ann Gene Leif Joyce Nancy

Totals per Report

SUMMARY BY OBJECT CLASS
BUDGET FUND Personal Services-Institutions Adult Literacy Grants Job Training Partnership Act

SALARIES AND WAGES
$ 3,881,763.81 $

TRAVEL: 57,069.07

6,150.00 -10,417.18

-1,339.72

-192.72 -158.18 -236,82 -178.28 1,339.72

$ 3,877,496.63 $ =====56:i::!,=30=3=.0=7

$ 3,402,068.67 $ 336,066.84 139,361,12

48,488,56 5,802.21 2,012.30

$ 3,877,496.63 $ =====56:ii:::!,=30=3=.0:=7

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

SECTIONll FINDINGS AND IMPROPER OR QUESTIONED COSTS

COOSA VALLEY TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED 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 Numbers

Status ofFinding

829-95-01

Corrective Action Implemented

CURRENT YEAR

GENERAL LEDGER Agency Fund Overpayments Financial Statements Audit Control Number 829-96-01

At June 30, 1996, Coosa Valley Technical Institute had deficit fund balances in the Fiduciary Fund TypeAgency Funds which included $474.30 for the D.T.A.E. Activities Fund and $1,747.72 for the Student Insurance Fund. These deficit balances are the result of disbursing funds in excess of receipt of funds. Payment should not be made in excess of collections for Agency Funds.

Appropriate action should be taken by the Institute to secure reimbursement ofthese overpayments.