Coosa Valley Technical College, Rome, Georgia, independent accountant's report on applying agreed-upon procedures for fiscal year ended June 30, 2009

1COOSA VALLEY
I TECHNICAL COLLEGE
1 ROME, GEORGIA
' INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREEDUPON PROCEDURES FOR FISCAL YEAR ENDED JUNE 30,2009
1 Russell w.Hinton

COOSA VALLEY TECHNICAL COLLEGE - TABLE OF CONTENTS -

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INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES

EXHIBITS

A SUMMARY BUDGET COMPAEUSON AND SURPLUS ANALYSIS REPORT

1

B STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING

SOURCE COMPARED TO BUDGET

2

RUSSELLW. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMEONFTAUDITASND ACCOUNTS
270 Washington Street, S.W., Suite I - 156
Atlanta, Georgia 30334-8400
November 30,2009

Members of the State Board of Technical and Adult Education Members of the Local Board of Directors
and Honorable Ron Jackson, Commissioner Coosa Valley Technical College
Independent Accountant's Report on Applying Agreed-Upon Procedures
Ladies and Gentlemen:
We have performed the procedures enumerated below, which were agreed to by the 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 College for inclusion in the State of Georgia's Comprehensive Annual Financial Report (CAFR) and Single Audit Report; and to assist you in assessing the accuracy of budget basis information provided in the Summay Budget Comparison and Surplus Analysis Report and Statement of Program Revenues and Expenditures byFunding Source Compared to Budget, which is attached as Exhibits A and B, respectively. Coosa Valley 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 College's general ledger.
We did not note any exceptions as a result of our procedures.

2. Obtain the 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 College's accounting records.
We did not note any exceptions as a result of our procedures.
3. Obtain the 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 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 College's year end GAAP basis journal entries. Obtain documentation for GAAP journal entries and confirm that the entries were posted to the College's annual financial statement worksheets.
We did not note any exceptions as a result of our procedures.
6. Confirm that State Appropriation revenues, receivables and remittances of prior year surplus balances have been properly recorded in the 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 2009. Confirm that these write-off requests have been approved by the State Accounting Officer and have been posted to the College's financial statements.
We did not note any exceptions as a result of our procedures.
8. VerifLthat 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 College's financial statements.
We did not note any exceptions as 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 andExpenditures by Funding Source Compared to Budget (Exhibit B). Confirrn that budget information presented in these statements supports activity reported in the College's accounting records and determine if any budget overexpenditures exist.
We did not note any exceptions as a result of our procedures.
10. Obtain documentation for Budget basis reserves reported by the College on the Summary Budget Comparison and Surplus Analysis Report (Exhibit A). Confirrn 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 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 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 College for inclusion in the Statewide Single Audit. Confirm that the information is properly presented and supported by the College's accounting records.
The College's Schedule of Expenditures of Federal Awards (SEFA) information did not agree with the Federal expenditure activity reflected on the College's accounting records. The College submitted Federal revenue rather than Federal expenditures, which resulted in six programs' expenditures being inaccurately reported. Total expenditures were understated on the SEFA by $26,583.22. Adjustments were made to correct all expenditures that were inaccurately reported on the SEFA.
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 preparing them 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,
~(lsselWl . Hinton, CPA, CGFM State Auditor

EXHIBITS

COOSA VALLEY TECHNICAL COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT
YEAR ENDED JUNE 30.2009

EXHIBIT "A"

REVENUES
State Appropriation State General Funds
Federal Funds Other Funds
Total Revenues
CARRY-OVER FROM PRIOR YEAR
Transfer from Reserved Fund Balance
Total Funds Ava~lable
EXPENDITURES
Adult Literacy Economic Development Technical Education
Total Expenditures
Excess of Funds Available over Expenditures
FUND BALANCE JULY 1
Resewed Unresewed
ADJUSTMENTS
Prior Year PayableslExpenditures Prior Year Receivables/Revenues Unreserved Fund Balance (Surplus) Returned
to Technical College System of Georgia Year Ended June 30.2008
Refunds to Grantors Federal Financ~aAl ssistance Returned to Techn~caCl ollege System of Georgia Year Ended June 30,2008 Other
Prior Year Reserved Fund Balance Included in Funds Ava~lable
FUND BALANCE JUNE 30

BUDGET

ACTUAL

VARIANCE -
FAVORABLE (UNFAVORABLE)

SUMMARY OF FUND BALANCE
Reserved Federal Financial Assistance State Grants and Contracts Sales and Services Live Work Projects Uncollectible Accounts Receivable Technology Fee Continuing Education l nventories
Total Reserved
Unreserved Surplus
Total Fund Balance

COOSA VALLEY TECHNICAL COLLEGE STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING SOURCE COMPARED TO BUDGET
YEAR ENDED JUNE 30.2009

Adult Llteracy State Appropriation State General Funds Federal Funds Other Funds
Total Adult Literacy

Original Appropriation

Flnal Budaet

Current Year Revenues

Funds Available Compared to Budget

Prior Year Carry-Over

Total Funds Available

Variance Positive (Neaative)

Economlc Development Other Funds

Technical Education

State Approprlatlon

State General Funds

t

Federal Funds

American Recovery and ReinvestmenlA d of 2009

FederalStabilization Funds

Other Federal Funds

Other Funds

Total Technical Education

5

11,669,900.00 $ 9.956.005 00 $ 9.956.005.00 $

0.00 $ 9.956.005.00 $

0.00 619.723.00 4,755.015.00
17.044.636.00 f

68.047.00 658.846.00 6,714,556.00

68.047 00 627,421.24 6,376,173.89

17.597.45400 1 17.227.647.13 $

0.00 0 00 282.01345

68.047 00 827.421 24 6.658.187 34

282.01345 $ 17,509,660.58 1

0 00
0.00 -31.424.76 56.366.66 -87.793.42

Grand Totals -All Programs

$

- 16.388.50700 $ 18,871,673.47 $ 18,442,569.41 $

281,71406 S 18,724.283.47 $

-147,390.00

EXHIBIT "8"

Expendrtures Compared to Budget

Var~ance

Poslllve

Actual

(Neqaltve)

Aaual Funds Ava~lable
Over/(Under) Expenditures

Prtor Pertod Adlustments

Other Adlustments

Program Fund
Balances

Transfers

Program Fund Balances

Reserve

Surplus

Total Fund Balance

Unexpendable Resewes Uncollecttble Accounts Receivable Invgnlone~