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STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET
ATLANTA. GEORGIA 30334

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~,AMLEIBRNAfRSIE<

REVIEWREPORT STATE OF GEORGIA LANIER TECHNICAL INSTITUTE OAKWOOD, GEORGIA YEAR ENDED JUNE 30, 1995

LANIER 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

5

C STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

6

STATEMENTS OF FUNDS AVAILABLE AND EXPENDITURES

COMPARED TO BUDGET

BUDGET FUND

D

"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

10

E

"B"LOTTERYFOREDUCATION

11

F NOTES TO THE FINANCIAL STATEMENTS

12

SUPPLEMENTARY INFORMATION

G COMBINING BALANCE SHEET (STATUTORY BASIS)

BUDGET FUND

28

H COMBINING STATEMENT OF CHANGES IN FUND BALANCE

(STATUTORY BASIS)

BUDGET FUND

29

COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

30

J COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

FIDUCIARY FUND TYPE - AGENCY FUNDS

34

SCHEDULES

I CASH AND CASH EQUIVALENTS

35

2 SCHEDULE OF FEDERAL REVENUES

36

3 RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL

37

LANIER TECHNICAL INSTITUTE - TABLE OF CONTENTS -
SECTION TI FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION! FINANCIAL

CLAUDE L. VICKERS
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street. S.W., Suite 214 Atlanta, Georgia 30334-8400
September 7, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly of Georgia Members of the State Board of Technical and Adult Education Members ofthe Local Board ofDirectors
and Honorable Joe E. Hill, President Lanier 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 Lanier Technical Institute as ofand for the year ended June 30, 1995, 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 Lanier 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 ofany 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 of expressing 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 throug!I 3) is presented only for supplementary analysis purposes. Such information has been
95ARL-4T

subjected to the inquiries and analytical procedures applied in the review of the financial statements, and we are not aware of any material modifications that should be made thereto.
ZA
Claude L. Vickers State Auditor
CLV:gp 95ARL-4T

FINANCIAL STATEMENTS - 1-

LANIER TECHNICAL INSTITUTE COMBINED BALANCE SHEET (STATUTORY BASIS)
ALL FUND TYPES AND ACCOUNT GROUPS JUNEM 1995

EXHIBIT"A"

~ Cash and Cash Equivalents
Accounts Receivable State Funds Federal Financial Assistance other
FDl8dAssets Equipment
Amounts to be Provided for Payment of: Accrued Compensated Absences

GOVERNMENTAL FUND TYPE BUOGET

FIDUCIARY
~ ~

A=UNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

~

DEBT

TOTALS ~morandum On!l} JUNE 30, 1995 JUNE 30, 1994

89,115.27 $ 39,489.20

128.604.47 $ 133,613.25

543,706.17 103,188.65 84,363.85 $
731,258.67 $

1,103.40 1,103.40

543,706.17 $ 103,188.65 85,467.25

249,207.46 89,054.37 36,162.95

732,362.07 $ 374,424.78

$ 2,157,378.29

2,157.378.29 $ 1,932,262.96

222,057.83 $

222.057.83 $ 214,918.63

Tolal.As&eh;

820,373.94 $ ~ $ ~ $ 222,057.83 $ 3,240.402.66 $ 2,655,219.62

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

LANIER TECHNICAi INSTITUTE
COMBINfp BALANCE SHEET (STATLJTORY BASIS)
ALL FLJNP TYPES AND ACCOUNT GROUPS JUNE 30 1995

EXHIBIT"A"

LIABILmes AND FlJNPEOLJIIX
LiabiHties Accourds Payable Salaries Payable Payroll Withhoklings Deferred Revenue Tuition and Fees Funds Held in Custody for others Compensated Absences
Tolal Liabilities
Fund Equity Investment in General Fixed Assets Fund Balance
R_,_,
Uve Work Projects Prior Year Local Funds Unreserved Designated
Surplus Regular
Total Fund Equity

GOVERNMENTAL FUND TYPE BUDGET

ACCOUNT GROUPS

FIDUCIARY

GENERAL

GENERAL

~

FIXED

LONG-TERM

~~

DEBT

TOTALS 048morandum Only) JUNE 30, 1995 JUNE 30, 1994

540,597.67 161,568.89
26,563.27

22,306.00 $

40,592.60

751,035.83 $ 40,592.60

540,597.67 $ 161,568.89 26,563.27

241,329.12 141,sn.38 21,327.57

222,057.83

22,306.00 40,592.60 222,057.83

26,684.00 17,081.95 214,918.63

222,057.83 $ 1,013,686.26 $ 663,018.65

$ 2,157,378.29

2,157,378.29 $ 1,932,262.96

22,899.67 45,045.84

22,899.67 45,045.84

12,680.84 47,190.31

1,392.60 69,338.11

$ 2,157,378.29

1,392.60

66.86

2,226,716.40 $ 1,992,200.97

Tolal Liabilities and Fund Equity

820,373.94 $ ~ $ ~ $ 222,057.83 $ 3,240,402.66 $ 2,655,219.62

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 -

\..____

LANIER TECHNICAL INSTITUTE STATEMENT OF CHANGES IN FUNO BALANCE /STATUTORY BASIS\
GOVERNMENTAL FUND TYPE YEAR ENDED JUNE 30 1995

EXHIBIT"B"

FUND BALANCE - JULY 1
Reserved Unreserved
Designated Surplus
ADDITIONS
Adjustmen1s to Prior Yea~s Accounts Payable Excess of Funds Available over Expenditures
Exhibit"C"
DEDUCTIONS
Unreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and Adult Education - Admini-ve Central Office Year Ended June 30, 1993 Year Ended June 30, 1994
Adjustmen1s to Prior Yea~s Accounts Receivable Refund to Grantors
Georgia Department of Technical and Adult Education Administrative Central Office Federal Financial Assistance
Reserved Fund Balance Carried Over from Prior Year as FUlds AvaUable
FUND BALANCE - JUNE 30
(To Exhibit"A")

BUDGET FUND

YEAR ENDED

JUNE 30, 1995

JUNE 30, 1994

$

59,871.15 $

58,117.42

66.86

577.48

$

59,938.01 $

58,694.90

$

1,931.31 $

75.65

68,149.80

59,862.36

$

70,081.11 $

59,938.01

0.00 $ 66.86 135.00
608.00 59,871.15 60,681.01 $
$====== 69,338.11 $

577.48 0.00 0.00
0.00 58,117.42 58,694.90
59,938.01

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary lnfonmation.
The notes to the financial statements are an integral part of this statement. 5 -

LANIER TECHNICAL INSTITUTE STATEMENT QF FUNQS AVAILABLE ANP fXPENPITURES
BUQGl;T FUNQ
YEAR ENpfP JUNE 30 1995

EXHIBIT"C"

FUNDS AVAIi ABLE
~
STATE FUNDS Allotment from Georgia Department of Technical and Adult Education - Administrative Central Office
FEDERAL REVENUES (See Schedule)
OTHER REVENUES RETAINED Contract Georgia Department of Human Resources PEACH Project Georgia Institute of Technology Satellite Technology Program Donations Fees Application Registrationl'Continuing Education Testing Other Reimbursements from Various Sources Sales and Sa!vices (Net) Tuitton Other Sources
Total Other Revenues Retained
Total Revenues
CARRY-QVER FROM PRIOR YEAR
Transfer from Reserved Fund Balance Live Work Projects Prior Year Local Funds
Tolal Carry-Over from Prior Yaar
Total Funds Available
fXPFNPITLJRES
PERSONAL SERVIQFS-INSTITUTIQNS
Salaries and Wages Empk,yer's Contributions for:
F.I.C.A. Retirement Health Insurance
Liability Insurance
Unemployment Compensation Insurance Workers' Compensatton Insurance
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. 6.

TOTALS

YEAR ENDED

JUNE 30, 1995

JUNE 30, 1994

$ 4,359,412.32 $ 3,838,700.07

525,677.51 $

660,290.72

44,985.81 $
0.00 39,135.96
21,080.00 247,103.52
20,525.00 23,153.00 158,168.95 67,961.53 577,964.50
1,583.31
1,201,661.58 $
6,086,751.41 $

35,489.55
2,783.78 36,930.84
22,675.00 154,266.89 25,240.00
16,557.00 112,721.22 84,784.17 443,681.50
0.00
915,109.75
5,414,100.54

12,680.84 $ 47,190.31
59,871.15 $

6,319.39 51,798.03
58,117.42

.6,146,622.56 $ 5,472,217.96

2,969,542.87 $
43,406.09 305,458.98 325,604.91
16,880.00 5,695.00 13,263.00
3,679,851.85 $

2,811,698.79
41,095.42 291,820.53 310,340.41
10,795.00 4,844.00 15,219.00
3,485,813.15

LANIER TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30 1995

EXHIBIT"C"

EXPENDITURES
OPERATING EXPl;NSl;S-INSTITUTIONS
CllherCosts MolorVehicle~ Supplies and Materials Repairs and Maintenance Utillnsurance and Bonding Other Ope,ating Expenses Publications and Printing
Travol Motor Vehicle Purchases Equipment
Equipment Purchases Rental d Equipment Computer Charges Other Costs
Supplies and Materials Repairs and Maintenance Scftware Equipment Equipment Purchases Lease/Purchase d Equipment Per Diem, Fees and Contracts Contracts Telecommunications Per Diem, Faes and Contracts Per Diem and Faes Contracts
QUICK START PROGRAM
Personal Services Salaries and Wages Ernpk)ye(s Contributions for: F.l,C.A. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' CompensattOn Insurance
Other Costs Supplies and Materials Repairs and Maintenance UIHlnsuranee and Bonding Other Open,ting Expenses Publications and Printing
Travol Equipment
Equipment Purcl1asos Rental cf Equipment

TOTALS

YEAR ENDED

JUNE 30, 1995

JUNE 30, 1994

$

6,607.13 $

10,647.99

264,225.66

247,236.15

24,728.68

66,528.43

144,300.94

149,365.64

3,398.00

3,295.00

98,110.53

82,012.41

31,578.96

24,440.40

48,259.08

40,379.75

3,581.51

38,957.14

87,954.44 20,706.74

76,414.97 15,384.13

2,666.36 4,408.86 28,976.64
53,936.11 0.00
537.21 45,077.66
112,435.26 92,422.77
1,073,912.54 $

8,273.00 4,678.45 16,619.60
49,043.79 38,051.81
548.64 36,782.93
64,476.46 33,054.88
1,006,393.77

48,017.00 $
651.47 4,165.08 4,408.56
422.00 160.00 374.00
18,212.14 9,332.80 13,387.34
544.00 759.70 2,621.90 4,904.59
1,328.75 832.85

14,305.00
207.45 0.00 0.00 0.00 0.00 0.00
11,283.04 13,813.73 13,788.38
516.00 719.00 1,289.51 4,347.94
825.00 9,664.90

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.

LANIER TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND FXPENQIJURES
BUDGET FUNP YEAR ENPEP JUNE M 1995

EXHIBIT"C-

EXPENDITURES
QUICK START PROGRAM
Computer Charges Other Coots Supplies and Malerlals Software
Telecommunications Per Diom, Fees and Contrac:ts
Per Diom and Faas Contracts
ADULT LITERACY GRANTS
-ISarvicas SalariesandW._ Employel's Contributions for: F.I.C.A.
R-
Health Insurance Llabililylnslnnce Unomploymont Compensation Insurance Workers' Compensation Insurance OtherCoots Supplies and Materials Repairs and Maintenance UIHRonts (Other than Roal E51ate) Insurance and Bonding Other Operating Expenses Publications and Printing TnMII Equipment Equipmen!Purehases R-1 of Equipment Comp<Mr Charges Software Equipment Equipment Pu""1ases Roal E - Rentals Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Contracts
- - JOB TRAINING PARTNERSHIP ACT Salaries and Wages Employer's Contribution for: F.I.C.A, Other Coots Other Operating Elcpensas
See Independent Accountant's Combined Report on Review of Financial Statements and Supplamenlary Information.
The notes to the financial statements are an integral part of this statement.
. 8.

TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$

32.64 $

22.70

300,00

0.00

9,437.44

9,396.23

<13,593.38 387.48

<13,046.29 0.00

163,873.12 $

123,245.17

518,027.60 $
7,424.26 26,031.59 28,417.82
1,477.00 560.00
1,309.00
31,979.42 680.80
5,105.90 300.00 92.00
11,775.93 1,365.58 14,974.18
14,741.36 0.00
854.89
5.18 26,693.16 7,354.53
1,840.28 1,767.64
702,778.12 $

482,337.57
6,638.83 20,282.76 21,577.37
508.00 258.00 396.00
33,788.12 4,526.13 4,682.92 0.00 74.00 7,698.30 490.00
13,460.61
15,402.84 315.00
14,527.60
46,457.17 24,342.00 6,135.18
318.90 0.00
684,215.30

$

23,126.28 $

28,168.50

335.34

408.45

2,171.31

2,136.26

25,632.93 $

30,713.21

LANIER TECHNICAL INSTITUTE STATFMENT OF FUNDS AVAILABLE ANQ fXPfNDITURFS
BUDGET FUND YEAR l;NDEQ JUNE 30 1995

EXHIBIT"C"

EXPENQITURES CAPITAi OUTLAY
Par Diem, Fees and Contracts Contracts
COMPUTER LABORATORIES AND SATELLITE DISHES - ADULT LITERACY OlherCcsts Repairs and Maintenance Equipment Equipment Purchases
EQUIPMENT-TECHNICAL INSTITUTES Other Cost Repairs and Maintenance Other Operating Expenses Equipment Equipment Purchases
REPAIRS AND RENOVATIONS Other Cost Repairs and Maintenance Other Operating Expenses
Total Expenditures Excess of Funds Available over Expenditures

TOTALS

YEAR ENDED

JUNE 30, 1995

JUNE 30, 1994

50,000.00 $

0.00

50,000.00 $

0.00

$

750.05 $

0.00

5,318.40

0.00

6,068.45 $

0.00

142.00 $ 378.51
215,579.49
216,100.00 $

0.00 0.00
81,975.00
81,975.00

160,000.00 $ 255.75
160,255.75 $ 6,078,472.76 $
68,149.80

0.00 0.00
0.00 5,412,355.60
59,862.36

$ 6,146,622.56 $ 5,472,217.96

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. -9 -

LANIER TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION YEAR ENDED JUNE 30 1995

EXHIBIT"D"

REVENUES

FUNDS AVAIi ABI E

S-Funds Federal Revenues Other Revenues Retained

CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 3,976,993.00 $ 3,976,988.12 $

550,436.00

525,677.51

1,390,631.00

1,201,661.58

5,918,060.00

5,704,327.21 $

-4.88 -24,758.49 -188,969.42
-213,732.79

44,215.00

59,871.15

15,656.15

$ 5,962,275.00 $ 5,764,198.36 $

-198,076.64

EXPENDITURES
Personal Services-Institutions Operating Expenses-Institutions Quick Start Program Adu~ Literacy Grams Job Training Partnership Act Capital Outlay

$ 3,733,187.00 $ 3,679,851.85 $

1,206,989.00

1,073,912.54

163,878.00

163,873.12

720,610.00

702,778.12

37,611.00

25,632.93

100,000.00

50,000.00

53,335.15 133,076.46
4.88 17,831.88 11,978.07 50,000.00

$ 5,962,275.00 $ 5,696,048.56 $

266,226.44

Excess of Funds Available over Expenditures

68,149.80 $

68,149.80

See Independent Accountant's Combined Report on Review of Financial S-mems and Supplementary lnfonmation.
The notes to the financial statemen1s are an integral part of this s-ment.
- 10 -

LANIER TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"B" LOTTERY FOR EDUCATION YEAR ENDED JUNE 30 1995

EXHIBIT"E"

FUNDS AVAILABLE REVENUES
State Funds

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE}

462,240.00 $

382,424.20 $ ___-_79--',_81_5_.80_

EXPENDITURES
Computer Laboratories and Satellite Dishes - Adult Ltteracy
Equipment-Technical Institutes Repairs and Rencvations

$

6,140.00 $

6,068.45 $

216,100.00

216,100.00

240,000.00

160,255.75

71.55 0.00
79,744.25

462,240.00 $

382,424.20 $

79,815.80

Excess of Funds Available over Expendttures

$

0.00 $

0.00

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.
-11 -

LANIER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE30 1995

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Lanier 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 of the State of Georgia. The accompanying financial statements reflect the operations of Lanier 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 ofTechnical 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 Lanier Technical Institute. The Institute does not have authority to retain unexpended State funds (surplus) for any given fiscal year. Accordingly, Lanier Technical Institute is considered an organizational unit of the Georgia Department ofTechnical and Adult Education for financial reporting purposes because ofthe significance of its legal, operational, and financial relationships as defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards.
FUND ACCOUNTING Lanier Technical Institute uses funds and account groups to report on its financial position and the results of its operations determined in conformity with accounting practices prescribed or permitted by statutes and regulations ofthe State ofGeorgia A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. 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 of funds 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 1994-1995. 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 identified 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 funds used to account for assets held for use by other funds, governments, or individuals.
- 12 -

LANIER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

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 if historical 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 of the asset or materially extend assets' lives are not included 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 of current 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 prescribed or permitted by statutes and regulations of the State of Georgia, the Budget Fund returns its unreserved fund balance (surplus) to the Administrative Central Office of the Department of Technical and Adult Education for remittance to the Office of Treasury and Fiscal Services in the subsequent fiscal year.
GOVERNMENTAL FUND TYPE BUDGETFUND
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 of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the 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.

- 13 -

LANIER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPE BUDGETFUND
Contractual obligations for services which have not been performed and for goods which have not been delivered at the end of the fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. This accounting practice causes expenditure-driven 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 ofthe State ofGeorgia, but is not consistent with generally accepted accounting principles, which provide for the recording of encumbrances as a reservation of fund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance 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 prescnbed or permitted by statutes and regulations of the 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 of operations or have a measurement focus. The modified accrual basis of accounting 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 1994-1995. 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.
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.
- 14 -

LANIER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE30 1995

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORIES No inventories ofsupplies are reported in the current 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:
LIVE WORK PROJECTS The accumulated balance of unexpended funds derived from student live work projects. This amount is restricted to expenditures for live work projects in subsequent fiscal years.
PRIOR YEAR LOCAL FUNDS Effective July 1, 1988, Lanier Technical Institute became a part ofthe Georgia Department of Technical and Adult Education. The Official Code ofGeorgia Annotated Section 20-4-23 provides the Institute may retain for future operations "...any unexpended nonstate funds that have been collected by, appropriated for, or otherwise earmarked for use by said postsecondary technical school operated by a local board of education or an area board... ". These unexpended local funds are available for use in subsequent fiscal years.
UNRESERVED FUND BALANCE In accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, the Budget Fund's unreserved fund balance is returned to the Georgia Department of Technical and Adult Education - Administrative Central Office for remittance to the Office of Treasury and Fiscal Services in the subsequent fiscal year as surplus, as follows:
REGULAR- An amount of unexpended general appropriations available to the State for reappropriation in subsequent 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 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 resources. 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.

- 15 -

LANIER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
MEMORANDUM ONLY -TOTAL COLUMNS Total columns on the Combined Balance Sheet (Statutory Basis) are captioned "Memorandum Only" to indicate that they 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 of the Institute's financial position and operations or would cause the statements to be unduly complex and difficult to understand. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation.
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 any one 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 of Georgia.
(2) Bonds, bills, certificates ofindebtedness, notes, or other obligations ofthe counties or municipalities of the 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 of the bonds for this purpose.
(4) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia.
(5) Bonds, bills, certificates of indebtedness, 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 and 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.
- 16 -

LANIER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT "F"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS

STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES As authorized in the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies which allow agencies of the State of Georgia (which include technical institutes) the option ofexempting 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, 1995, are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk:

Category I - 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.

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 lnstitute's name, and amounts uncollateralized.

Canying Amount

Bank Balances

Risk Categories 2

Cash Deposits

$~ $~ $~ $~ $~

NOTE 3: OPERATING LEASES

Lanier Technical Institute has entered into certain agreements to lease equipment which are classified as
operating leases Qeases on assets not recorded on the balance sheet). These leases generally contain provisions that, at the expiration date ofthe original term of the lease, the Institute has the option ofrenewing the lease
on a year-to-year basis. Future minimum lease payments for operating leases as of June 30, 1995, are listed below. Amounts are included only for multi-year leases and for cancellable leases for which an option to
renew for the subsequent fiscal year has been exercised.

Fiscal Year Ending June 30

1996

$ 23 550 48

Expenditures for rental of equipment under operating leases for the year ended June 30, 1995, totaled $23,550.48.

- 17 -

LANIER TECHNICAL INSTITIITE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT "F"

NOTE 4: 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 of changes of equipment for the General Fixed Assets Account Group during the fiscal year:

Balance July 1, 1994

$ 1,932,262.96

Additions Deductions

323,296.54 98 181.21

Balance June 30, 1995

$ 2 I 57 378 29

NOTE 5: GENERAL LONG-TERM DEBT

CHANGES IN GENERAL LONG-TERM DEBT During the year ended June 30, 1995, the following changes occurred in the compensated absences liability reported in the General Long-Term Debt Account Group:

Balance July 1, 1994

$ 214,918.63

Additions Annual Leave Earned and Utilized (Net) Salaries and Wages Salary-Related Fringe Benefits

7,141.30 -2.10

Balance June 30, 1995

$ 222 057 83

NOTE 6: RISK MANAGEMENT

Public Entity Risk Pool The State Personnel Board - Merit System ofPersonnel Administration internally administers for the State of Georgia a program of health benefits for the employees of units ofgovernment of the State of Georgia and 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 of Georgia to process claims in accordance with the State Employees' Health Benefit Plan as established by the State Personnel Board.

- 18 -

LANIER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE30 1995

EXHIBIT "F"

NOTE 6: RISK MANAGEMENT
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 services 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 ofcommercial 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 state agencies by DOAS to provide claims servicing and claims payment.
NOTE 7: 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, permits 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 is presented in the financial report of the State Personnel Board - Merit System of Personnel Administration for the year ended June 30, 1995.
NOTE 8: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Plan Description Lanier Technical Institute participates in the Teachers Retirement System of Georgia (TRS}, a cost-sharing multiple-employer public employee retirement system (PERS} established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia. The Institute's payroll for the year ended June 30, 1995, for employees covered by TRS was $2,778,107.89. The Institute's total payroll for all employees was $3,558,713.75.
Benefits TRS provides service retirement, disability retirement, and survivor's benefits for its members. A member is eligible for service retirement after the member (I) has attained the age of 60 years and has at least ten years
- 19 -

LANIER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE30 1995

EXHIBIT "F"

NOTES: RETIREMENTPLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Benefits ofcreditable service, (2) has at least 30 years of creditable service, regardless of age, or (3) has attained the ageof55 years and has at least 25 years of creditable 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 creditable 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 7% 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% of their gross earnings to TRS. The Institute makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees as advised by their independent actuary. For fiscal year 1995, 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 1995 amounted to $467,000.49, ofwhich $328,094.54 was made by the Institute and $138,905.95 was made by employees. These contnbutions represented 11.81% (Institute) and 5% (employees) of covered payroll.
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 of the Governmental Accounting Standards Board (GASB) that is required to be used for reporting purposes. The standardized measurement is the actuarial present value ofcredited projected 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 of the 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.
- 20-

LANIER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXIIlBIT "F"

NOTE 8: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Funding Status and Progress Pension Benefit Obligation
The total unfunded pension benefit obligation ofTRS as ofJune 30, 1994, which was the latest information available, was as follows:

Total pension benefit obligation

$ 15,313,743,000.00

Net assets available for benefits, at cost

14 254 785 000.00

Unfunded pension benefit obligation

$ 1 058 958 000 00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1994. Net assets available for benefits were valued as of the 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, 1995, were $565,117,811.00. The Institute's contribution for the year ended June 30, 1995, of $328,094.54 was actuarially determined and represented .0581 % of total contributions made by all participating employers.

Trend Information Historical trend information is presented in the financial report ofTRS for the year ended June 30, 1995. This information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due.

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Plan Description Lanier 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 ended June 30, 1995, for employees covered by ERS was $33,949.50. The Institute's total payroll for all employees was $3,558,713.75.

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.

- 21 -

LANIER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE30 1995

EXlilBIT "F"

NOTE 8: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Benefits 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. Retirement benefits paid to members are based upon a formula which considers the monthly average of the member's highest eight consecutive calendar quarters of salary, the number of years 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. 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 ofage.
Contributions Required and Contributions Made Under the old plan, member contributions consist of employee contributions paid by the employee of 1.25% ofannual compensation and 4.75% of annual compensation paid by the Institute on behalf ofthe employee. Under the new plan, member contributions consist solely of 1.25% of annual compensation paid by employee. The Institute also is required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation. Contributions are also made on amounts paid for accumulated leave of retiring employees.
Total contributions to the plan made during fiscal year 1995 amounted to $5,479.44, of which $5,055.08 was made by the Institute and $424.36 was made by employees. These contributions represented 14.89/o (Institute) and 1.25% (employees) of covered payroll.
Funding Status and Progress Pension Benefit Obligation
The amount shown as the "pension benefit obligation" is a standardized disclosure measure of the present value ofpension benefits, adjusted for the effects ofprojected salary increases and step-rate benefits, estimated to be payable in the future as a result ofemployee service to date. The measure is intended to help users assess the funding status ofERS on the going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among employers. The measure is the actuarial present value ofcredited projected benefits, and is independent of the funding method used to determine contributions to the plan.
The pension benefit obligation was computed as part of an actuarial valuation performed as of June 30, 1994. Significant actuarial assumptions used in the valuation include the following:
(1) The present value offuture pension benefits paid was computed using a discounted rate of7.5%. This rate is also the same rate assumed to be earned on investments in the plan in future years.
- 22-

LANIER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT "F"

NOTE 8: RETIREMENT PLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Funding Status and Progress Pension Benefit Obligation (2) Future pension payments reflect the following assumed salary increases as a result of inflation and merit increases:

~
20 25 30 35 40 to 65

Percentage
9.5% 8.5% 6.5% 6.0% 5.7%

(3) ERS has the authority to grant cost-of-living adjustments by State statute. As ofJune 30, 1994, cost-of-living adjustments have been included in the pension benefit obligation.

The total unfunded pension benefit obligation ofERS as ofJune 30, 1994, which was the latest information available, was as follows:

Pension Benefit Obligation:

Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receiving benefits

$ 2,227,653,000.00

Current employees:

Accumulated contributions

648,516,000.00

Employer financed - vested

1,085,190,000.00

Employer financed - nonvested

1 206 805 000.00

Total pension benefit obligation

$5,168,164,000.00

Net assets available for benefits, at cost

4 858 015 000.00

Unfunded pension benefit obligation

$ 310 149 000 00

- 23 -

LANIER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT "F"

NOTES: RETIREMENTPLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Funding Status and Progress Pension Benefit Obligation
The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1994. Net assets available for benefits were valued as of the same date. ERS does not make separate measurements of assets and pension benefit obligation for individual employers.
Funding Policy The ERS funding policy provides for periodic employer contributions at actuarially determined rates that, expressed as percentages ofannual payroll, are sufficient to accumulate sufficient assets to pay benefits when due. Level percentage of payroll employer contribution rates are determined using the entry age funding method. ERS also uses the level percentage of payroll method to amortize the unfunded liability within approximately 20 years following the valuation date.
Total contnbutions from all employers to ERS for the year ended June 30, 1995, were $256,624,679.00. The Institute's contribution for the year ended June 30, 1995, of $5,055.08 was actuarially determined and represented .0020% of total contributions made by all participating employers.
Significant actuarial assumptions used to compute contributions are the same as those used to compute the standardized measure of pension obligation.
Trend Information Historical trend information is presented in the financial report ofERS for the year ended June 30, 1995. This information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due.
GEORGIA DEFINED CONTRIBUTION PLAN
Plan Description Lanier Technical Institute participates in the Georgia Defined Contribution Plan (GDCP) which is a singleemployer defined contribution plan established by the General Assembly of Georgia in July 1993 for the purpose ofproviding 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 ofthe Employees' Retirement System of Georgia. The Institute's payroll for the year ended June 30, 1995, for employees covered by GDCP was $582,855.46. The Institute's total payroll for all employees was $3,558,713.75.

- 24-

LANIER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT "F"

NOTES: RETIREMENTPLANS
GEORGIA DEFINED CONTRIBUTION PLAN
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 of Trustees. If a member has less than$ 3,500.00 credited to his/her account, the Board of Trustees has the option ofrequiring a lump sum distribution to the member in lieu ofmaking periodic payments. Upon the death ofa member, a lump sum distribution equaling the amount credited to his/her 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 ofemployment, the amount of the member's account is refundable upon request by the member.
Total contributions made by employees during fiscal year 1995 amounted to$ 43,701.28 which represents 7.5% ofcovered payroll. These contributions met the requirements of the plan.
NOTE 9: 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 of forty-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 ofsick 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 of forfeited annual and sick leave are entitled to additional service credit in the Employees' Retirement System of Georgia.
NOTE 10: NONMONETARY TRANSACTIONS
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, 1995, the Georgia State Financing and Investment Commission paid $1,339,754.00 to various vendors for approved projects related to Lanier Technical Institute.
- 25 -

LANIER TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT "F"

NOTE 11: 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, if any, to be immaterial to its overall financial position.
Litigation, claims and assessments filed against Lanier Technical Institute (as an organizational unit of the Department ofTechnical and Adult Education), ifany, are generally considered to be actions against the State ofGeorgia. Pursuant to the Official Code ofGeorgia Annotated, the Department of Administrative Services maintains a program of purchased insurance and self-insurance which provides coverage for such litigation, claims and assessments. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1995.
NOTE 12: BONDING INFORMATION
The President and all employees ofLanier Technical Institute are bonded under a Public Employees Blanket Bond written by the Employers Insurance ofWausau, their Bond No. 1450-00-110723, on which the premium has been paid to October 1, 1995. Under this agreement, the public employee dishonesty coverage insures Lanier Technical Institute to a maximum of $1,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. The faithful performance ofduty 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 of their position or employment.
All employees ofLanier Technical Institute are also bonded under Commercial Crime Policies written by the United States Fire Insurance Company, their Policy Nos. 626 011675 2 and 626 012294 4, on which the premiums have been paid to October 1, 1995. 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.

- 26-

SUPPLEMENTARY INFORMATION - 27 -

LANIER TECHNICAL INSTITUTE COMBINING BALANCE SHEET (STATUTORY BASIS}
BUDGET FUND JUNE30 1995

EXHIBIT"G"

ASSETS
Cash and Cash Equivalents
Accounts Receivable S1ate Funds Federal Financial Assistance Other

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR
EDUCATION

TOTAL

$

90,054.83

$

90,054.83

$

166,600.37 $

377,105.80 $

543,706.17

103,188.65

103,188.65

84,363.85

84,363.85

$

354,152.87 $

377,105.80 $

731,258.67

Total Assets

444,207.70 $

377,105.80 $

821,313.50

LIABILITIES AND FUND EQUITY
Liabilities Cash Overdraft Accounts Payable Salaries Payable Payroll Withholdings Deferred Revenue Tuition and Fees
Total Liabilities
Fund Equity Fund Balance Reserved Live Work Projects Prior Year Local Funds Unreserved Designated Surplus Regular Lottery for Education
Total Fund Equity

$

939.56 $

939.56

$

164,431.43

376,166.24

540,597.67

161,568.89

161,568.89

26,563.27

26,563.27

22,306.00

22,306.00

$

374,869.59 $

377,105.80 $

751,975.39

$

22,899.67

45,045.84

1,392.60 $
69,338.11 $

$
0.00 0.00 $

22,899.67 45,045.84
1,392.60 0.00
69,338.11

Total Liabilities and Fund Equity

$

444,207.70 $

377,105.80 $

821,313.50

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

LANIER TECHNICAL INSTITUTE COMBINING STATEMENT OF CHANGES IN FUND BALANCE (STATUTORY BASIS)
BUDGET FUND YEAR ENDED JUNE 30 1995

EXHIBIT"H"

FUND BALANCE - JULY 1
Rese<Ved Unreserved
Designated Surplus

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR
EDUCATION

TOTAL

59,871.15
66.86 $ 59,938.01 $

$
0.00 0.00 $

59,871.15
66.86 59,938.01

Adjustments ID Prior Year's Accounts Payable
Excess of Funds Available over Expenditures Exhibit"!"
DEDUCTIONS
Unreserved Fund Balance (Surplus) Returned ID Georgia Department of Technical and Adult Education - Administrative Central Office Year Ended June 30, 1994
Adjustments ID Prior Yea~s Accounts Receivable Refund ID Granters
Georgia Department of Technical and Adult Education -
Administrative Central Office Federal Financial Assistance
Rese<Ved Fund Balance Carried Over from Prior Year as Funds Available
FUND BALANCE - JUNE 30
(To Exhibit "G")

1,931.31 68,149.80 $ 70,081.11 $

$ 0.00 0.00 $

1,931.31 68,149.80 70,081.11

66.86 135.00
608.00 59,871.15 60.681.01 $
69,338.11 $

0.00 $

66.86 135.00

608.00 59,871.15 0.00 $ _ _ _60=,68=1.:.;:.0"-1

0.00 $ ===69==338==.1=1

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

LANIER TECHNICAl INSTITUTE
COMBINING STATEMENT QF FUND AVAIL.ABl f ANP EXPENQITURfS
BUpGETFUNP
YEAR ENDED JUNE 30 1995

EXHIBIT"I"

fUNQS AVAH ARI E
STATE FUNDS Allolmenl from Georgia Department a( Technical and Adult Education - AdmintStrative Central Office
FEDERAL REVENUES
OTHER REVENUES RETAINED Contract Georgia Department of Human Resources PEACH Project Donations Fees Application Registration/Continuing Education Testing Other Reimbursements from Various Sources Sales and Services (Net) Tuition Other Sources
Total Other Revenues Retained
Total Revenues
QARRY::OYfR FROM PRIOR YEAR
Transfer from Reserved Fund Balance Live Work Projects Prior Year Local Funds
Total Carry-Over from Prior Year
Total Funds Available
EXPfNQffUBES
PERSONAL SERVICES-INSTITUTIONS
Salaries and Wages Employer's Contributions for:
F.I.C.A. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

e
LOTTERY FOR EDUCATION

TOTAL

3,976,988.12 525,677.51

382,424.20 $ _ _4~,359~,4_1_2._32_ 525,677.51

44,985.81 39,135.96
21,080.00 247,103.52
20,525.00 23,153.00 158,168.95 67,961.53 577,964.50
1,583.31
1,201,661.58
5,704,327.21 $

44,985.81 39,135.96
21,080.00 247,103.52
20,525.00 23,153.00 158,168.95 67,961.53 577,964.50
1,583.31
$ _ _1=,20~1~,66~1-_58_
382,424.20 $ _ _6=,086=,7~5~1-~41~

12,680.84 47,190.31
59,871.15

12,680.84 47,190.31
59,871.15

5,764,198.36 $

382,424.20 $

6,146,622.56

2,969,542.87
43,406.09 305,459.98 325,604.91
16,880.00 5,695.00 13,263.00
3,679,851.85

2,969,542.87
43,406.09 305,459.98 325,604.91
16,880.00 5,695.00 13,263.00
3,679,851.85

See accompanying notes and Independent Accountant's Combined Report on Review d Financial Statements and SuppJementary Information.
- 30 -

LANIER TECHNICAL INSTITUTE
COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGETFUNP
YEAR ENDED JUNE 30 1995

EXHIBIT"!"

EXPENQITURES
OPERATING EXPENSES-INSTITUTIONS
OtherCosts Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Insurance and Bonding Other Operating Expenses Publications and Printing
Travel Motor Vehicle Purchases
Equipment Equipment Purchases Rental of Equipment
Computer Charges Other Costs Supplies and Materials Repairs and Maintenance Software Equipment Equipment Purchases Per Diem, Fees and Contracts Contracts
Telecommunications Per Diem, Fees and Contracts
Per Diem and Fees Contracts
QUICK START PROGRAM
Personal Se!vices Salaries and Wages Empk,yer's Contributions for:
F.I.C.A. Retirement Health Insurance
Liability lnsunance Unempk,yment Compensation Insurance Workers' Compensation Insurance
Other Costs Supplies and Materials Repairs and Maintenance Utffities Insurance and Bonding Other Operating Expenses Publications and Printing
Travel Equipment
Equipment Purchases Real Estate Rentals

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR
EDUCATION

TOTAL

6,607.13 264,225.66
24,728.66 144,300.94
3,398.00 98,110.53 31,578.96 48,259.08 3,581.51
87,954.44 20,706.74
2,666.36 4,408.86 28,976.64
53,936.11
537.21 45,077.66
112,435.26 92.422.77
1,073,912.54
48,017.00
651.47 4,165.08 4,408.56
422.00 160.00 374.00
18,212.14 9,332.80 13,387.34 544.00 759.70 2,621.90 4,904.59
1,328.75 832.85

6,607.13 264,225.66
24,728.68 144,300.94
3,398.00 98,110.53 31,578.96 48,259.08 3,581.51
87,954.44 20,706.74
2,666.36 4,408.86 28,976.64
53,936.11
537.21 45,077.66
112,435.26 92,422.77
1,073,912.54
48,017.00
651.47 4,165.08 4,408.56
422.00 160.00 374.00
18,212.14 9,332.80 13,387.34
544.00 759.70 2,621.90 4,904.59
1,328.75 832.85

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

LANIER TECHNICAL INSTITUTE
COMBINING STATEMENT OF FUNDS A\/AILABLE AND EXPENDITURES
BUDGET FUND
VEAR ENDED JUNE 30 1995

EXHIBIT"!"

EXPFNP'TURES
QUICK START PROG~
Ccmputer Charges Other Cost Supplies and Materials Scllware
Telecommunications Per Diem, Fees and Contracts
Per Diem and Fees Contracts
APULT LITl;RACY GRANTS
Personal Services Salaries and Wages Em~s Contributions for: F.1.C.A. Retirement Health Insurance Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
Other Costs SupplteS and Materials Repairs and Maintenance Utilities Rents (Other than Real Estate) Insurance and Bonding Other Operating Expenses Publications and Printing
Travel Equipment
Equipment Purchases Ccmpute, Charges
Scllware Equipment
Equipment Purchases Real Estate Rentals Telec:ommunications Per Diem, Fees and Contracts
Per Diem and Fees Contracts
JOB TRAINING PARTNERSHIP ACT
Personal Services Sa~ and Wages Employer's Contribution for. F.I.C.A. OlherCosts Other Operating Expenses

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR
EDUCATION

$

32.64

300.00

9,437.44

43,593.38 387.48

163,873.12

518,027.60
7,424.26 26,031.59 28,417.82
1,477.00 560.00
1,309.00
31,979.42 680.60
5,105.90 300.00 92.00
11,nS.93 1,365.58
14,974.18
14,741.36
854.89
5.18 26,693.16 7,354.53
1,840.28 1,767.64
102.ns.12

$

23,126.28

335.34

2,171.31

25,632.93.

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

TOTAL
32.64 300.00 9,437.44 43,593.38 387.48 163,873.12
518,027.60 7,424.26
26,031.59 28,417.82
1,4n.oo 560.00
1,309.00 31,979.42
680.80 5,105.90
300.00 92.00
11,nS.93 1,365.58
14,974.18 14,741.36
854.89 5.18
26,693.16 7,354.53 1,840.28 1,767.64
702,nB.12
23,126.28 335.34
2,171.31 25,632.93

LANIER TECHNICAL INSTITUTE
CQUBINING STATEMENT OF FUND AVAILABLE ANQ E,XPENQITURES
BUQGE;T FUNQ
YEAR fNDEP JUNE 30 1995

EXHIBIT"r

EXPENDITURES CAPITAL OUTLAY
Per Diem, Fees and Contracts Contraets
CQUPlJTl;R LABORATQRff;S ANO SATELLITE DISHES - ADULT LITERACY other Costs Repairs and Maintenance Equipment Equipment Purchases
EQUIPMENT-TECHNICAL INSTITUTES other Cost Repairs and Maintenance Other Operating Expenses Equipment Equipment Purchases
REPAIRS AND RENOVATIONS Other Cost Repairs and Maintenance Other Operating Expenses
Total Expenditures Excess d Funds Available over Expenditures

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

"B" LOTTERY FOR
EDUCATION

TOTAL

50,000.00 50,000.00

50,000.00

$

50,000.00

750.05 $ 5,318.40 6,068.45 $

750.05 5,318.40 6,068.45

142.00 $ 378.51
215,579.49
216,100.00 $

142.00 378.51
215,579.49
216,100.00

5,696,048.56 $ 68,149.80

160,000.00 $ 255.75
160,255.75 $
382,424.20 $ 0.00

160,000.00 255.75
160,255.75
s,o78,4n.76
68,149.80

5,764,198.36 $

382,424.20 $

6,146,622.56

See accompanying notes and Independent Accountant's Combined Report on Review d Financial Statements and Supplementary Information.
33.

LANIER TECHNICAL INSTITUTE COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE AGENCY FUNDS YEAR ENDED JUNE 30 1995

EXHIBIT"J"

FUND Activities Account - School Concession Fund HOPE Scholarship Program Lanier Tech Business Club Pell Grant Program Student Activities Fund VICA

ASSETS/ LIABILITIES JULY 1, 1994

ADDITIONS

DEDUCTIONS

ASSETS/ LIABILITIES JUNE 30, 1995

109.58 $

7,337.00 $

7,216.12 $

230.46

2,570.24

8,366.79

1,348.93

9,588.10

0.00

671,995.25

671,995.25

0.00

286.49

8,149.68

8,230.53

205.64

0.00

264,467.00

264,467.00

0.00

14,115.64

78,525.65

62,131.48

30,509.81

0.00

321.92

263.33

58.59

17,081.95 $ 1,039,163.29 $ 1,015,652.64 $

40,592.60

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-34-

LANIER TECHNICAL INSTITUTE CASH AND CASH EQUIVALENTS
JUNE 30 1995
NON INTEREST BEARING ACCOUNTS First National Bank, Gainesville, Georgia
QI!:!IB
Cash on Hand Petty Cash

SCHEDULE "1"
$ 127,784.47 820.00
$ 128,604.47

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-35-

LANIER TECHNICAL INSTITUTE SCHEDULE OF FEDERAL REVENUES
YEAR ENDED JUNE 30 1995

BUDGET FUND
Education, U. S. Department of Adult Education - State Administered Basic Grant Program Through Georgia Department ofTechnical 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 Georgia Department of Technical and Adult Education - Administrative Central Office

84.002 84.048 93.561 17.250

SCHEDULE?

AMOUNT

$

247,481.97

178,443.75

74,118.86

25,632.93 $ _ _52.,5.,,s_1_1._s_1

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 36 -

LANIER TECHNICAL INSTITUTE RECONCILIATION OF SALARIES AND WAGES AND TRAVEL
YEAR ENDED JUNE 30 1995

SCHEDULE "3"

Totals per Annual Supplement
Accruals June 30, 1995 June 30, 1994
Totals per Report
SUMMARY BY OBJECT CLASS
BUDGET FUND Personal Services-Institutions Operating Expenses-Institutions Quick Start Program Adult Literacy Grants Job Training Partnership Act

SALARIES AND WAGES
$ 3,538,822.24 $

TRAVEL 68,137.85

161,568.89 -141 677.38

$ 3,558,713.75 $

68,137.85

$ 2,969,542.87 $
48,017.00 518,027.60
23,126.28

48,259.08 4,904.59
14,974.18

$ 3,558,713.75 $

68,137.85

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-37-

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

LANIER TECHNICAL INSTITUTE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1995
CURRENT YEAR
SPECIAL TEST AND PROVISIONS Failure to Obtain Financial Aid Transcript Federal Financial Assistance Audit Control Number 834-95-01
During the year under review, the U. S. Department of Education performed a program review of the Institute's Title IV Federal Student Financial Assistance programs. The focus of the review was to ascertain the Institute's compliance with Title IV program statutes and regulations. The review disclosed one program deficiency in which the Institute did not have a financial aid transcript on file for one student who received Title IV assistance. Federal regulations contained in 34 CFR 668.19 require that, prior to the Institute disbursing Title IV funds to the student, such a transcript must be requested by the student or the Institute from the institution previously attended by the student.
The program review recommended that the Institute obtain the required financial aid transcript for the student. We noted that, in accordance with the report's recommendation, the Institute requested and received the required financial aid transcript from the Institution previously attended by the student.
Memorandum Only Federal Grantor Agency Affected:
U.S. Department ofEducation