3 G'.. LNNETT TECHNICAL COLLEGE 1 LAWRENCEVILLE, INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED- UPON PROCEDURES FOR FISCAL YEAR ENDED JUNE 30,2011 Georgia Department of Andits and Accounts Russell W.Hinton State Auditor GWINNETT TECHNICAL COLLEGE - TABLE OF CONTENTS - INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES EXH IBlTS A SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT B STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE C STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE Page 1 2 RUSSELLW. HINTON STATE AUDITOR (404) 666-2174 DEPARTMENOTF AUDITSAND ACCOUNTS 270 Washington Street, S.W., Suite 1-1 56 Atlanta, Georgia 30334-8400 December 8,2011 Members of the State Board of the Technical College System of Georgia Members of the Local Board of Directors and Honorable Sharon Bartels, President Gwinnett Technical College Independent Accountant's Report on A ~ o l v i nA~g.reed-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 t o the System Office by the College for inclusion in the State of Georgia's ComprehensiveAnnual Financial Report (CAFR) and Single Audit Report; and to assist you in assessing the accuracy of budget basis information provided in the Summary Budget Comparison and Surplus Analysis Reporf Statement of Funds Available and Expenditures Cbmpared lo Budget By Program and Funding Source, and the Statement of Changes To Fund Balance By Program and Funding Source which are attached as Exhibits A, B and C, respectively. Gwinnett 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. 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. 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. 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. 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. Obtain listing of write-off requests for accounts receivable less than $3,000.00 for fiscal year 2011. 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 exceptionsas a result of our procedures. Verify that the listing of salaries and travel 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. Review the year end Budgetary Statements including the Summary Budget Comparison and Surplus Analysis Report (Exhibit A), Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source (Exhibit B) and the Statement of Changes To Fund Balance By Program and Funding Source (Exhibit C). Confirm that budget information presented in these statements supports activity reported in the College's accounting records, the legal level of budgetary control (funding source within program) was maintained, and determine if any budget overexpenditures exist. We did not note any exceptions as a result of our procedures. Obtain documentation for Budget basis reserves reported by the College on the Summary Budget Comparison and Surplus Analyss 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 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 Expendituresof 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. 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 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, usb bell W. Hinton, CPA, CGFM State Auditor EXH 1 BITS GWINNElTTECHNlCAL COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT YEAR ENDED JUNE 30.2011 State Appropriation State General Funds Federal Funds Other Funds Total Revenues ADJUSTMENTS AND PROGRAM TRANSFERS CARRY-OVER FROM PRIOR YEARS Transfers from Reserved Fund Balance Total Funds Available EXPENDITURES Adult Literacy Techn~caEl ducation Total Expenditures Excess of Funds Available over Expenditures FUND BAMNCF JULY 1 Reserved Unre~ewed ADJUSTMENTS Prior Year Receivables/Revenues unreserved Fund Balance (surplus) Returned To Technical Caliege System of Georgia Year EndedJune 30,2010 Prlor Year Reserved Fund Balance Included in Funds Available FUND BALANCEJUNE 3 0 SUMMARY OF FUND BAl A N E Reserved Federal Financ~aAl ssistance Llve Work Projects Pr~oYr ear Local Funds Continuing Education Technology Fees Uncollectible Accounts Receivable Tuition Total Resewed Unreserved Surplus Total Fund Balance BUDGET ACTUAL VARIANCE - FAVORABLE (UNFAVORABLE) GWINNETT TECHNICAL COLLEGE STATEMENT OF FUNDS AVAILABLE AN0 EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE YEAR ENDEDJUNE 3 0 . 2 O I I Adult Literacy State Appropriation State General Funds Federal Funds Federal Funds Not Specifically Identified Other Funds Total Adult Literacy Technical Education State Approprlatlon State General Funds Federal Funds Federal Funds Not Speclflcally Identifled Other Funds Total Technical Education Total OperatingAct~v~ty Or~glnal Appropriation Amended Appropriation Final Budget Current Year Revenues EXHIBIT "B" Funds Available Compared to Budget Pr~orYear Adjustments and Total Carry-Over Program Transfers Funds Ava~lable Variance Positive (Negative) Expenditures Com~aredto Budget Actual Variance Positive (Negative) Excess (Defic~ency) of Funds Available Over/(Under) Expenditures G W l N N m TECHNICAL COLLEGE STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE YEAR ENDEDJUNE 30,2011 Adult Literacy State Appropriation State General Funds Federal Funds Federal Funds Not Speof~callyldent~fied Other Funds Total Adult Literacy Technical Education State Appropr~ation State General Funds Federal Funds Federal Funds Not Specihcally ldent~fied Other Funds Total Technical Educat~on Total Operating A c t ~ v ~ t y Pr~oYr ear Reserves Not Ava~lablefor Expend~ture Uncollectible Accounts Receivable Beginning Fund Balance/(Deficit) July 1 Fund Balance Carr~edOver from Prlor Per~od as Funds Available Return of Fiscal Year 2010 Surplus Prlor Period Adjustments Budget Unit Totals Other Adjustments Early Return Fiscal Year 2011 Surplus Excess (Deficiency) of Funds Available Over/(Under) Expenditures Endlng Fund Balance/(Deficit) June 3 0 Analysis of Ending Fund Balance Reserved Surplus/(Deficit) Total Summary of EndingFund Balance Resewed Federal F~nanciaAl ssstance Llve Work Projects Pr~oYr ear LocalFunds Continuing Education Technology Fees Uncollectible Accounts Receivable Tuition Unreserved Surplus Total EndingFund Balance - June 3 0