GRIFFIN TECHNICAL COLLEGE GRIFFIN, GEORGIA INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGRED- UPON PROCEDURES FOR FISCAL YEAR ENDED JUNE 30,2010 1 Georgia Department a Audits and Accounts ' I I, " GRIFFIN 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 RUSSELLW. 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 Randall Peters, President Griffin Technical College Independent Accountant's R e ~ o rotn A ~ D l ~ iAngreed-U~onProcedures 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 ComprehensiveAnnual 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 Anahsis Report and Shtement of Program Revenues and Expenditures by Fundhg Source Compared to Budget, which is attached as Exhibits A and B, respectively. Griffin 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 cash balance per books was understated by $19,020.42 due to a journal entry error at year end. No other exceptions were noted as a result of our procedures. 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. We did not note any exceptions as a result of our procedures. 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. Capital Grants and Gifts received was misclassified as Gifts and Grants received for other then capital purposes by $7,150.00on the Statement of Cash Flows. The Technical College resubmitted to Technical CollegeSystem of Georgia. 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. Year end GAAP entries related to bond revenue and net assets were not made correctly. The Technical College resubmitted to Technical College System of Georgia. Bond gift revenues of $204,341.00were recorded as Grants and Contracts - State in the SRECNA worksheet instead of Gifts as required for correct presentation. The portion of net assets restricted for Federal reserves was understated by $3,171.04,resulting in an overstatement of unrestricted net assets. 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 exceptions as a result of our procedures. 9. Review the year end Budgetary Statements including the Summary Budget Comparkon and Surplus Analysis Report (Exhibit A) and Statement of Program Revenues and Expenditures by Funding Source Compared to Budget(ExhibitB). 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 overexpenditures exist. The Carry-Over from Prior Year on the Technical College's Budgetary Statements did not agree to the prior year report by $360.00. A correcting entry was prepared and accepted by the Technical College. 10. Obtain documentation for Budget basis reserves reported by the Technical College on the Summary Budget Comparison and Surplus Analyss Report (Exhibit A). Confirm that the reserves are properly documented, valid and appropriate. The Technical College's reserves for technology fees, local grants, bookstore, tuition, prior year local funds, Federal financial assistance and surplus did not agree to ending fund balances on the general ledger. A correcting entry was prepared and accepted by the Technical College. Technology fee reserves were overstated by $350.00. Local Grant reserves were overstated by $929.25. Bookstore reserves were overstated by $3,098.28. Tuition reserves were overstated by $29,433.47. Prior year local funds reserves were understated by $22,850.28. Federal financial assistance reserves were overstated by $5,446.35. Surplus was understated by $16,407.07. 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. The Technical College's H.O.P.E. Scholarship Program reconciliation did not reconcile to the Technical College'sfiscal year 2010 accounting records as follows: Report Item Per Hope Reconciliation Per Accounting Records Unreconciled Difference Cash Disbursed to School $ 11,409,289.24 $ 11,402,219.24 $ 7,070.00 Amount Awarded to Students $ 11,409,289.24 $ 11,402,219.24 $ 7,070.00 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. The Technical College's Schedule of Expenditures of Federal Awards could not be reconciled to Federal Revenues per the Statement of Revenues, Expenses and Changes in Net Assets by $8,788.44. 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, us dell W. Hinton, CPA, CGFM State Auditor EXHIBITS GRIFFIN TECHNICAL COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT YEAR ENDED JUNE 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 Adult Llteracy ECOnOmlC Development Tecnnlcal Education Total Expenditures Excess of Funds Available over Expenditures FUND BALANCE JULY 1 Reserved Unreserved ADJUSTMENTS Prlor Year Payables/Expenditures Prjor Year Receivabies/Revenues unreserved Fund Balance (surplus) Returned From the Technlcal Colleges Year Ended June 3 0 , 2 0 0 9 Refunds to Grantors Federal Flnanclal Asslstance Returned to Technlcal College System of Georgla Year Ended June 30. 2009 pr~oYr ear Reserved Fund Balance included In Funds Available FUND BALANCE JUNE 3 0 SUMMARY OF FUND BALANCE Reserved Federal Flnanclal Asslstance Local Grants and Contracts Llve Work Projects Pr~oYr ear Local Funds Contlnu~ngEducat~on Technology Fees UnCOlleCtldleAccounts ReCeNable lnventorles Bookstore Tuition Total Fund Balance BUDGET ACTUAL VARIANCE FAVORABLE (UNFAVORABLE) GRIFFIN TECHNICAL COLLEGE STATEMENT OF PROGRAM REVENUES AND MPENOITURESBY FUNDING SOURCE COMPAREDTO BUDGET YEAR ENDEDJUNE 30.2010 ~ d u lLtiteracy State ADDroDrwbon State General Funds Federal Funds Other Funds Total Adult Literacy orlg~nal Appropr~abon Flnal Budget currentyear Revenues Funds Available Compared to Budget ~rooyrear Carry Over Total Funds Avaalable varlance Posltlve (Negauve) Emnomlc Development State Approprlatbon State General Funds Federal Funds Other Funds Total Economlc Development Technlcal EducaUon State Appraprlatlon State GeneralFunds $ Federal Funds Amerlcan Remveryand ReinvestmentAct of 2009 Federal StabilizationFunds Federal Funds Not Speuflmlty Identified Other Funds Total Te~hnlcaEl ducatbon $ Grand T ~ I -SAll Programs $ 1.224.813.00 $ 8,902,222.00 0 8,902.222.00 1 0.00 $ 8.902.222.00 $ 0.00 0.00 0.00 2.397.334.00 3,622,147.00 $ 2,974,298.00 1,043,922.76 12,862.278.76 25,782,721.52 $ 2.974.298.00 920.200.60 13,417.758.15 26,214,478.75 S 0.00 15.485.91 1.221.853.22 2.974.298.00 935.686.51 14.639.611.37 1.237.339.13 $ 27.451.817.88 $ 0.00 108,236.25 1,777,332.61 1,669,096-36 3,622.147.00 - 1 27.629.346.10 S 27.944.198.91 S 1.238.503.13 $ 29.182.702.04 $ 1.553.355.94 Expenditures Comparedto Budget Variance Posiuve Actual (Negative) Actual Funds Available Over/lUnder) ~rpendntures Prlor Period Aqustments Other Aqustmenv, Program Fund Balances Transfers Program Fund Balances Reserve Surplus Total Fund Balance Unexpenaable Reserves Uncolledlble Accounts Receivable Inventories