Lanier Technical College, Oakwood, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2009

LANIER TECHNICAL COLLEGE
OAKWOOD, GEORGIA
REPORT ON AUDIT OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2009
Georgia Department of Audits and Accounts Russell W. Hinton State Auditor

LANIER TECHNICAL COLLEGE - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

REQUIRED SUPPLEMENTARY INFORMATION

MANAGEMENT'S DISCUSSION AND ANALYSIS

BASIC FINANCIAL STATEMENTS

EXHIBITS

A STATEMENT OF NET ASSETS

2

B STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS

3

C STATEMENT OF CASH FLOWS

4

D NOTES TO THE FINANCIAL STATEMENTS

5

SUPPLEMENTARY INFORMATION

SCHEDULES

I BALANCE SHEET (NON-GAAP BASIS) BUDGET FUND

20

2 SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT

(NON-GAAP BASIS) BUDGET FUND

21

3 STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING

SOURCE COMPARED TO BUDGET

(NON-GAAP BASIS) BUDGET FUND

22

4 RECONCILIATION OF SALARIES AND TRAVEL

25

SECTION II FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

Russell W. Hinton
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
October 28, 2009

Honorable Sonny Perdue, Governor Members of the General Assembly of Georgia Members of the State Board of Technical and Adult Education Members of the Local Board of Directors
and Honorable Michael D. Moye, President Lanier Technical College
INDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the accompanying basic financial statements (Exhibits A through D) of Lanier Technical College, an organizational unit of the State of Georgia, as of and for the year ended June 30, 2009. These financial statements are the responsibility of the Technical College's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal controls over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Technical College's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As discussed in Note 1, the financial statements of Lanier Technical College are intended to present the financial position and changes in financial position and cash flows of only that portion of the business-type activities of the State of Georgia that is attributable to the transactions of Lanier
09ARL-2TC

Technical College. They do not purport to, and do not, present fairly the financial position and changes in financial position and cash flows ofthe State of Georgia, in conformity with accounting principles generally accepted in the United States of America.
In our opinion, the basic financial statements referred to above present fairly, in all material respects, the financial position of Lanier Technical College as of June 30, 2009, and its changes in financial position and cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.
Management's Discussion and Analysis is not a part ofthe basic financial statements but is required supplementary information required by accounting principles generally accepted in the United States ofAmerica. We have applied certain limited procedures, which consisted principally ofinquiries of management regarding the methods of measurement and presentation of this supplementary information. However, we did not audit this information and express no opinion on it.
Our audit was conducted for the purpose of forming an opinion on the basic financial statements of Lanier Technical College taken as a whole. The accompanying supplementary information (Schedules I through 4) is presented for purposes ofadditional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.
Respectfully submitted,
~w.41~
Russell W. Hinton, CPA, CGFM State Auditor
RWH:as 09ARL-2TC

REQUIRED SUPPLEMENTARY INFORMATION

Lanier Technical College Management's Discussion and Analysis
The following is management's discussion and analysis of Lanier Technical College's financial performance for the fiscal year ending June 30, 2009 with comparative data from fiscal year ending June 30, 2008. This discussion has been prepared by and is the responsibility of management.
Overview ofthe Financial Statements and Financial Analysis
This annual report consists of a series of financial statements prepared in accordance with the rules and regulations established by the Governmental Accounting Standards Board.
There are three financial statements presented: the Statement of Net Assets; the Statement of Revenues, Expenses and Changes in Net Assets; and the Statement of Cash Flows. The Statement of Net Assets used in conjunction with the Statement of Revenues, Expenses and Changes in Net Assets contains information concerning the Technical College's finances and activities as a whole and assists with providing an answer to the question "Is the Technical College as a whole better or worse off as a result of the year's activities?" These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting method used by corporations and other private sector companies. All revenues and assets are recognized when the service is provided and expenses and liabilities are recognized when others provide the goods or service, regardless of when cash is exchanged.
The Statement of Cash Flows is a valuable tool when evaluating the ability of the Technical College to meet financial obligations as they mature. This statement presents information related to cash inflows and outflows summarized by operating, noncapital financing, capital and related financing and investing activities.
This discussion and analysis of the Technical College's financial statements provides an overview of its financial activities for the year.
Statement ofNet Assets
The purpose of the Statement of Net Assets is to present to the users of the financial statements a fiscal snapshot of the Technical College at a specific point in time. The statement presents the assets, liabilities and net assets of the Technical College as of the end of the fiscal year. Assets and liabilities are reported as current and noncurrent and the difference between assets and liabilities is reported as net assets. Over a period of time the increases and decreases reflected in the Statement of Net Assets, when considered with other nonfinancial facts such as enrollment levels and the condition of the facilities, can provide a measure to aid in determining whether the Technical College's financial position is improving or deteriorating.
Net assets are divided into two major categories. The first category, invested in capital assets, net of debt, provides information concerning the Technical College's equity in property, plant

and equipment owned by the Technical College. The final category is unrestricted net assets, which are available for expenditure by the Technical College for any lawful purpose deemed necessary to operate the Technical College.

Statement of Net Assets (thousands of dollars)

June 30, 2009

June 30, 2008

Assets Current Assets Capital Assets, Net

$

3,212

12,005

$

2,517

12,251

Total Assets

$_ _"'""'"15""""",2"'"""1'-'-7

$_----=lc......:...;4,z....:.....76::..:c.8

Liabilities Current Liabilities Noncurrent Liabilities

$

2,354

$

1,682

407

344

Total Liabilities

$_ ____,2,'---76'--1

$_ _ _2,..0....2.__6__

Net Assets Invested in Capital Assets, Net of Debt Unrestricted

$

12,005

451

$

12,251

491

Total Net Assets

$===12=.4=5===6

$==a:::=12==,7==4=2

The total assets of the Technical College increased by approximately $449,000 from the prior year. This can be attributed to an increase of approximately $695,000 in current assets offset by a decrease in Capital Assets, Net of around $246,000. This overall increase in total assets follows the institutional philosophy to use available resources to acquire and improve all areas of the Technical College to better serve the instruction and public service missions of the Technical College.

Total liabilities for the fiscal year increased by approximately $735,000. The increase was primarily in current liabilities, more specifically from the increase of more than $674,000 in Deferred Revenue. The combination of the increase in total assets of approximately $449,000 and the increase in total liabilities of approximately $735,000 yields a decrease in total net assets of approximately $286,000. The decrease in total net assets is affected in large part by the category of invested in capital assets, net of debt which decreased approximately $246,000, however, all categories of Net Assets decreased during the year.

11

Statement ofRevenues, Expenses and Changes in Net Assets

The purpose of the Statement of Revenues, Expenses and Changes in Net Assets is to present the revenues received by the Technical College, both operating and nonoperating, and the expenses incurred by the Technical College, operating and nonoperating, and any other revenues, expenses, gains and losses received or spent by the Technical College during the fiscal year. Changes in total net assets as presented on the Statement of Net Assets are based on the information presented in the Statement of Revenues, Expenses and Changes in Net Assets.

Operating revenues are received for providing goods and/or services to various customers and constituencies of the Technical College. Operating expenses are those expenses paid to acquire or produce the goods and/or services provided in return for the operating revenues, and to carry out the mission of the Technical College. Therefore, nonoperating revenue is received when no goods or services are provided in exchange for the revenue. With the issuance of Statement No. 35, new guidelines were established by the Governmental Accounting Standards Board (GASB), which changed the classifications of state appropriations and gifts from operating to nonoperating revenue. This change may result in an operating deficit that is offset by a nonoperating surplus.

Statement of Revenues, Expenses and Changes in Net Assets (Thousands of dollars)

June 30, 2009

June 30, 2008

Operating Revenues Operating Expenses

$

6,211

$

7,189

19,340

19,710

Operating Gain/Loss

$

-13,129

$

-12,521

Nonoperating Revenues and Expenses

12,517

12,559

Income (Loss) Before Other Revenues,

Expenses, Gains or Losses

$

-612

$

38

Other Revenues, Expenses, Gains or Losses

326

487

Increase (Decrease) in Net Assets

$

-286

$

525

Net Assets at Beginning of Year

12,742

12,217

Net Assets at End of Year

$===='12;;;!!;;;.4-5=:';;6

$==-12=r,7==4==2

The Statement of Revenues, Expenses and Changes in Net Assets reflects a negative year with a decrease in the net assets at the end of the year. Some highlights of the information presented on the Statement of Revenues, Expenses and Changes in Net Assets are as follows:

lll

Revenue By Source (Thousands of Dollars) For The Years Ended June 30, 2009 and June 30, 2008

June 30, 2009

June 30, 2008

Operating Revenue Tuition and Fees Grants and Contracts Sales and Services of Educational Departments Rents and Royalties Other

$

5,030

$

4,338

48

1,572

1,020 113

1,170 1
108

Total Operating Revenue

$

6,211

$

7 189

Nonoperating Revenue State Appropriations Grants and Contracts - Nonoperating Gifts Investment Income

$

9,057

$

10,613

3,440

1,445

326

651

9

22

Total Nonoperating Revenue

$

12,832

$

12,731

Capital Grants and Gifts

$

326

$

487

Total Revenues

$

19 369

$

20,407

Expenses (Thousands of Dollars) For The Years Ended June 30, 2009 and June 30, 2008

June 30, 2009

June 30, 2008

Operating Expenses Instruction

$

19,340

$

19,710

Nonoperating Expenses Other

315

172

Total Expenses

$====19~,6=5==5

$======19~,8==8==2

The sources of operating revenue for the Technical College are tuition and fees, grants and contracts, and sales and services activities. The decrease in operating revenue of approximately $978,000 is directly related to a decrease in revenue from Grants and Contracts - Federal of around $1,524,000. In prior years, Federal financial aid was categorized as operating revenues. For fiscal year 2009 this revenue of nearly $1,889,000 was classified as Nonoperating Revenue to comply with Federal guidelines. In addition, Sales and Services revenue decreased by nearly $150,000 during the fiscal year because of the economic conditions prevalent during the year.

IV

Offsetting the Grants and Contracts - Federal and Sales and Service revenue decreases, Tuition and Fees increased by over $692,000. This is directly related to the increase in enrollment of 3.4% over fiscal year 2008 and an increase in the maximum number of credit hours per quarter that a student must pay for. The maximum number of credit hours that could be charged to a student increased from 12 to 15 beginning with the winter quarter of fiscal year 2009.
Utilities decreased by approximately $3,000 during the past year. The cost savings was generated as a result of the Technical College going to a four day work week in fall quarter of fiscal year 2009.
Personal Services expenses decreased by approximately $172,000. This decrease came about as a result of the State of Georgia's decision to lower the health insurance premiums for four months at the end of the fiscal year. Initially, the premium was calculated based on 22.165% of full time salaries, but it was reduced to 0%. This reduced cost was offset with increased salaries from an annual pay raise for Technical College employees of approximately 2.5% with the associated fringe benefits.
Depreciation expense increased by just over $127,000 and is due to the addition of fixed assets in late fiscal year 2008 and early fiscal year 2009.
Under nonoperating revenues, overall revenue increased by approximately $101,000. Included in this amount, State Appropriations decreased by approximately $1,556,000. The Technical College had reduced state funding during 2009 as a result of statewide budget cuts. Also, Gifts revenue decreased by just over $325,000 due to lower bond revenue. These reductions were offset in nonoperating revenues by the moving of Federal financial aid revenue of nearly $1,889,000 from operating to nonoperating in fiscal year 2009 to comply with Federal guidelines.
Statement of Cash Flows
The purpose of the Statement of Cash Flows is to provide relevant information concerning the cash receipts and payments of the Technical College during the year. It also provides information concerning the Technical College's ability to generate future cash flows and to meet its obligations as they come due. The statement is divided into five sections. The first section reports on the operating cash flows and shows the net cash used by the operating activities of the Technical College. The second section reflects cash flows from noncapital financing activities. The third section deals with cash flows from capital and related financing activities, which reflects the cash used for the acquisition and construction of capital related items. The fourth section reflects the cash flows from investing activities and shows the purchases, proceeds, and interest received from investing activities. The final section reconciles the net cash used to the operating income or loss reflected on the Statement of Revenues, Expenses and Changes in Net Assets.
V

Statement of Cash Flows (thousands of dollars)

June 30, 2009

June 30, 2008

Cash Provided (Used) By:

Operating Activities

$

-12,386

Noncapital Financing Activities

12,513

Capital and Related Financing Activities

-90

Investing Activities

9

$

-11,922

12,915

-627

22

Net Change in Cash Cash, Beginning of Year

$

46

$

388

1 168

780

Cash, End of Year

$

1 214

Capital Assets

The Technical College had additions to capital assets of approximately $621,000 during fiscal year 2009. Some of these additions were purchased with bond funds. Bond funded additions provided by the GSFIC totaled just over $305,000 for equipment. Projected funding by the GSFIC for fiscal year 2010 is expected to be approximately the same.

Long-Term Liabilities

Lanier Technical College had a total Long-Term Liabilities of $902,886.84 of which $495,438.87 was reflected as a current liability at June 30, 2009.

For additional information on Long-Term Liabilities see Notes 1 and 6 in the Notes to the Financial Statements.

Economic Outlook

The Technical College is aware that the current economic conditions are uncertain at best. The State of Georgia is considering budget cuts during fiscal year 2010. However, between Stimulus funding, the current enrollment increases, the increase in the number of credit hours students pay for and an increase in the per credit hour charge for tuition, the Technical College believes that it can absorb some budget cuts without cutting services or programs. Lanier Technical College reserved funds over the last few years which proved to be very helpful in alleviating the effects of the budget cuts in 2009 and will also be a source of funds should budget cuts occur in 20 I0. Therefore, as in prior years, the Technical College's overall financial position is strong. Annual enrollment increased by 3.4% from fiscal year 2008 to fiscal year 2009. More recently, the economic downturn resulted in an 18.6% enrollment increase for spring quarter and this higher enrollment growth trend is expected to continue throughout fiscal year 2010. In addition, the Technical College is working to continue this trend through various marketing efforts, stressing student retention and working toward an additional accreditation through the Council on Colleges (COC). Even though the economy is struggling, the Technical College anticipates the

VI

next fiscal year will be much like the last. The Technical College will continue to watch spending closely and make sure that resources are adequate to react to the unknown internal and external issues. Dr. Michael Moye, President Lanier Technical College
vii

BASIC FINANCIAL STATEMENTS -I-

LANIER TECHNICAL COLLEGE STATEMENT OF NET ASSETS
JUNE 30, 2009
ASSETS
Current Assets Cash and Cash Equivalents Accounts Receivable, Net Federal Financial Assistance Other Prepaid Items
Total Current Assets
Noncurrent Assets Capital Assets, Net
Total Assets
LIABILITIES
Current Liabilities Accounts Payable Salaries Payable Deferred Revenue Funds Held for Others Compensated Absences
Total Current Liabilities
Noncurrent Liabilities Compensated Absences
Total Liabilities
NET ASSETS
Invested in Capital Assets, Net of Related Debt Unrestricted
Total Net Assets

EXHIBIT "A"

$ 1,213,557.82
179,490.17 1,765,945.47
53,560.88
$ 3,212,554.34
12,004,618.92
$ 15,217,173.26

$

418,772.26

116,083.24

1,228,534.20

94,999.29

495,438.87

$ 2,353,827.86

407,447.97
$ 2,761,275.83

$ 12,004,618.92
451,278.51

$ 12,455,897.43

The notes to the financial statements are an integral part of this statement.

LANIER TECHNICAL COLLEGE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN NET ASSETS
YEAR ENDED JUNE 30, 2009

EXHIBIT "B"

OPERATING REVENUES
Student Tuition and Fees less: Scholarship Allowances
Grants and Contracts Federal
Sales and Services Other Operating Revenues
Total Operating Revenues
OPERATING EXPENSES
Salaries Benefits Travel Scholarships and Fellowships Utilities Supplies and Other Services Depreciation
Total Operating Expenses
Operating Income (Loss)
NONOPERATING REVENUES (EXPENSES)
State Appropriations Grants and Contracts
Federal State Gifts Interest and Other Investment Income Other Nonoperating Expenses
Net Nonoperating Revenues
Income (Loss) Before Other Revenues, Expenses, Gains, or losses
Capital Grants and Gifts State Nongovernmental Gain/Loss on Disposal of Capital Assets
Total Other Revenues, Expenses, Gains, or Losses
Increase (Decrease) in Net Assets
Net Assets - Beginning of Year
Net Assets - End of Year
The notes to the financial statements are an integral part of this statement. - 3-

$ 5,161,702.49 -131,507.92
47,447.32 1,020,043.22
113,281.86
$ 6,210,966.97

$ 10,969,153.05 2,235,027.14 79,519.37 1,757,389.63 612,391.09 2,832,339.23 854,647.88
$ 19,340,467.39
$ -13, 129!500.42

$ 9,057,038.26

3,201,839.22 238,000.00 326,266.56 8,888.59 -314,711.38

$ 12,517,321.25

$

-612,179.17

$

305,065.67

33,719.54

-13,030.70

$

325,754.51

$

-286,424.66

12,742,322.09

$ 12i4ss,a97.43

LANIER TECHNICAL COLLEGE STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30, 2009
CASH FLOWS FROM OPERATING ACTIVITIES Tuition and Fees Grants and Contracts Sales and Services of Educational Departments Payments to Suppliers Payments to Employees Payments for Scholarships and Fellowships Other Receipts (Payments)
Net Cash Provided (Used) by Operating Activities
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES State Appropriations Agency Funds Transactions Gifts and Grants Received for Other than Capital Purposes Other Nonoperating Receipts
Net Cash Flows Provided (Used) by Noncapital Financing Activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital Grants and Gifts Received Purchases of Capital Assets
Net Cash Provided (Used) by Capital and Related Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES Earnings on Investments
Net Increase (Decrease) in Cash
Cash and Cash Equivalents - Beginning of Year
Cash and Cash Equivalents - End of Year
RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating Income (Loss) Adjustments to Reconcile Operating Income to Net Cash
Provided (Used) by Operating Activities Depreciation Expense Change in Assets and Liabilities: Accounts Receivable, Net Prepaid Items Salaries Payable Accounts Payable Deferred Revenue Compensated Absences
Net Cash Provided (Used) by Operating Activities
NONCASH ACTIVITY Gift of Capital Assets Reducing Proceeds of Capital Grants and Gifts
The notes to the financial statements are an integral part of this statement
-4 -

EXHIBIT "C"

$ 4,564,278.60 197,569.35
1,219,127.77 -5,978, 167 .80 -10,748,642.19 -1,757,389.63
116 792.77
$ -12,386,431.13

$ 9,057,038.26 1,829.17
3,768,502.31 -314 711.38
$ 12,512,658.36

$

370,899.13

-460 927.35

$

-90,028.22

$

8 888.59

$

45,087.60

1,168,470.22

$ =====-1,=2=13=,5...,.5=7...,.8_2

$ -13,129,500.42
854,647.88 -787,573.28
-3,327.88 78,844.86 -215,563.09 674,374.80 141 666.00
$ -12,386,431.13
$ ===16=0=,0=0=6=7=2

LANIER TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2009

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY Lanier Technical College is one of thirty-three (33) State supported member colleges of postsecondary education in Georgia which comprise the Technical College System of Georgia, an organizational unit of the State of Georgia. The accompanying financial statements reflect the operations of Lanier Technical College as a separate reporting entity.
The Technical College's Local Board of Directors is composed of twelve (12) 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 Technical College System of Georgia by the General Assembly of Georgia. The System Office of the Technical College determines the amount of State appropriations to be received by Lanier Technical College. The Technical College does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, Lanier Technical College is considered an organizational unit of the Technical College System of Georgia for financial reporting purposes because of the significance of its legal, operational, and financial relationships as defined in Section 2100 of the Governmental Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial Reporting Standards.
Legally separate, tax exempt organizations whose activities primarily support member colleges of postsecondary education in Georgia which comprise the Technical College System of Georgia (an organizational unit of the State of Georgia), are considered potential component units of the State. See Note 13 for additional information.
FINANCIAL STATEMENT PRESENTATION The financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) as prescribed by the GASB and are presented as required by these standards to provide a comprehensive, entity-wide perspective of the Technical College's assets, liabilities, net assets, revenues, expenses, changes in net assets, cash flows, and replaces the fund group perspective previously required.
BASIS OF ACCOUNTING For financial reporting purposes, the Technical College is considered a special-purpose government engaged only in business-type activities. Accordingly, the Technical College's financial statements have been presented using the economic resources measurement focus and the accrual basis of accounting, except as noted in the preceding paragraph. Under the accrual basis, revenues are recognized when earned, and expenses are recorded when an obligation has been incurred. All significant intra-college transactions have been eliminated.
The Technical College has the option to apply all Financial Accounting Standards Board (FASB) pronouncements issued after November 30, 1989, unless FASB conflicts with GASB. The Technical College has elected to not apply FASB pronouncements issued after the applicable date.

LANIER TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2009

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS Cash and Cash Equivalents include petty cash and demand deposits in authorized financial institutions.
ACCOUNTS RECEIVABLE Accounts receivable consist of tuition and fee charges to students, reimbursements due from Federal, State, local, and private grants and contracts, and other receivables disclosed from information available. Accounts receivable are recorded net of estimated uncollectible amounts.
CAPITAL ASSETS Capital assets are recorded at cost at date of acquisition, or fair market value at the date of capital contribution. The Technical College capitalizes all land and land improvements. For equipment, the Technical College's capitalization policy includes all items with a unit cost of $5,000.00 or more, and an estimated useful life of greater than one year. Buildings and Building Improvements, Improvements Other Than Buildings and Library Collections that exceed $100,000.00 or significantly increase the value or extend the useful life of the asset are capitalized. For infrastructure, the Technical College's capitalization threshold is $1,000,000.00. Routine repairs and maintenance are charged to operating expense in the year in which the expense was incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally 10 to 40 years for buildings, 15 to 25 years for infrastructure, 15 years for improvements other than buildings, 10 years for library books, and 3 to 10 years for equipment.
To fully portray capital assets acquired by the Technical Colleges of the Technical College System of Georgia, it is necessary to look at the activities of the Georgia State Financing and Investment Commission (GSFIC) - an organization that is external to both the Technical College and the Technical College System of Georgia. The GSFIC issues bonds for and on behalf of the State of Georgia, pursuant to powers granted to it in the Constitution of the State of Georgia and the Act creating the GSFIC. The bonds are issued for the purpose of acquiring capital assets and this debt constitutes direct and general obligations of the State of Georgia, to the payment of which the full faith, credit and taxing power of the State are pledged.
For major construction projects, GSFIC records construction in progress on its books throughout the construction period and at project completion transfers the entire project costs to Lanier Technical College to be recorded as an asset on the Technical College's books. For the year ended June 30, 2009, GSFIC transferred capital additions valued at $143,995.00 to Lanier Technical College.
DEFERRED REVENUES Deferred revenues include amounts received for tuition and fees and other activities prior to the end of the fiscal year but related to the subsequent accounting period.

-6 -

LANIER TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2009

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
COMPENSATED ABSENCES Employee vacation pay is accrued for financial statement purposes when vested. The liability and expense incurred are recorded at year-end as accrued vacation payable in the Statement of Net Assets, and as a component of compensation and benefit expense in the Statement of Revenues, Expenses and Changes in Net Assets. Lanier Technical College had an accrued liability for compensated absences in the amount of $761,220.84 as of July 1, 2008. For fiscal year 2009, $720,205.94 was earned in compensated absences and employees were paid $578,539.94, for a net increase of $141,666.00. The ending balance as of June 30, 2009 in accrued liability for compensated absences was $902,886.84.
NONCURRENT LIABILITIES Noncurrent liabilities include liabilities that will not be paid within the next fiscal year.
NET ASSETS The Technical College's net assets are classified as follows:
Invested in capital assets, net of related debt: This amount represents the Technical College's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. (The term "debt obligations" as used in this definition does not include debt of the GSFIC as discussed above.)
Unrestricted net assets: Unrestricted net assets represent available resources derived from student tuition and fees, state appropriations, and sales and services of educational departments. These resources will be used for transactions relating to the educational and general operations of the Technical College, and may be used at the discretion of the governing board to meet subsequent fiscal year expenses for those purposes, except for unexpended state appropriations (surplus) of $8,141.47. Unexpended state appropriations must be refunded to the Technical College System of Georgia for remittance to the Office of Treasury and Fiscal Services.
When an expense is incurred that can be paid using either restricted or unrestricted resources, the Technical College's policy is to first apply the expense towards unrestricted resources, and then towards restricted resources.
INCOME TAXES Lanier Technical College, as a political subdivision of the State of Georgia, is excluded from Federal income taxes under Section 115(1) of the Internal Revenue Code, as amended.
CLASSIFICATION OF REVENUES The Technical College has classified its revenues as either operating or nonoperating revenues in the Statement of Revenues, Expenses and Changes in Net Assets according to the following criteria:
-7-

LANIER TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2009

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CLASSIFICATION OF REVENUES Operating revenues: Operating revenues include act1v1t1es that have the characteristics of exchange transactions, such as (1) student tuition and fees, net of scholarship allowances, (2) certain Federal, state and local grants and contracts, and (3) sales and services.
Nonoperating revenues: Nonoperating revenues include activities that have the characteristics of nonexchange transactions, such as gifts and contributions, and other revenue sources that are defined as nonoperating revenues by GASB No. 9, Reporting Cash Flows of Proprietary and Nonexpendable Trust Funds and Governmental Entities That Use Proprietary Fund Accounting, and GASB No. 34, such as state appropriations and investment income.
SCHOLARSHIP ALLOWANCES Student tuition and fee revenues, and certain other revenues from students, are reported at gross with a contra revenue account of scholarship allowances in the Statement of Revenues, Expenses and Changes in Net Assets. Scholarship allowances are the difference between the stated charge for goods and services provided by the Technical College, and the amount that is paid by students and/or third parties making payments on the students' behalf. Certain governmental grants, such as Pell grants, and other Federal, state or nongovernmental programs, are recorded as either operating or nonoperating revenues in the Technical College's financial statements. To the extent that revenues from such programs are used to satisfy tuition and fees and other student charges, the Technical College has recorded contra revenue for scholarship allowances.
NOTE 2: DEPOSITS
DEPOSITS The custodial credit risk for deposits is the risk that in the event of a bank failure, the Technical College's deposits may not be recovered. Funds belonging to the State of Georgia (and thus the Technical College) 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 of the following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59:
1. Bonds, bills, certificates of indebtedness, notes, or other direct obligations of the United States or of the State of Georgia.
2. Bonds, bills, certificates of indebtedness, notes, or other obligations of the counties or municipalities of the State of Georgia.
3. Bonds of any public authority created by the laws of the 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.
-8-

LANIER TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2009

EXHIBIT "D"

NOTE 2: DEPOSITS

DEPOSITS 5. Bonds, bills, certificates of indebtedness, notes, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest, or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

6. Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation.

As authorized in the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies, which allows agencies of the State of Georgia (and thus Lanier Technical College), the option of exempting demand deposits from the collateral requirements.

At June 30, 2009, the carrying value of the deposits was $1,212,677.82 and the bank balance was $1,516,083.91. Of this balance $1,266,083.91 were collateralized with securities held by the pledging financial institution's trust department or agent.

NOTE 3: ACCOUNTS RECEIVABLE

Accounts receivable at June 30, 2009, consists of the following:

Student Tuition and Fees Federal, State and Private Funds GSFIC Other

$ 1,527,198.92 179,490.17 85,193.97 185,332.58

$ 1,977,215.64

Less: Allowance for Doubtful Accounts

31,780.00

Net Accounts Receivable

$ 1,9452435.64

NOTE 4: CAPITAL ASSETS

Following are the changes in capital assets for the year ended June 30, 2009:

-9-

LANIER TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2009

EXHIBIT "D"

NOTE4: CAPITAL ASSETS

Balance Julx 1, 2008

Additions

Reductions

Balance June 30, 2009

Capital Assets, Not Being Depreciated: Land and Land Improvements Construction Work-In-Progress

$ 2,059,609.00 7 975.00 $

$ 4 375.00

0.00 $ 2,059,609.00 12,350.00

Total Capital Assets Not Being Depreciated

$ 2,067,584.00 $

4,375.00 $

0.00 $ 2,071,959.00

Capital Assets, Being Depreciated: Building and Building Improvements Improvements Other Than Buildings Equipment Library Collections

$11,884,465.50 1,468,226.45 4,610,995.79 $ 483,385.24

559,284.63 $ 57 274.44

49,766.42 11,027.22

$ 11,884,465.50 1,468,226.45 5,120,514.00 529,632.46

$ 18,447,072.98 $ 616,559.07 $ 60 793.64 $ 19,002,838.41

Less: Accumulated Depreciation: Building and Building Improvements Improvements Other Than Buildings Equipment Library Collections

$ 3,514,655.02 $ 985,143.98
3,456,540.68 306,953.87

321,598.10 58,555.45
440,492.44 $ 34.001.89

36,735.72 11,027.22

$ 3,836,253.12 1,043,699.43 3,860,297.40 329,928.54

$ 8,263,293.55 $ 854,647.88 $ 47,762.94 $ 9,070,178.49

Total Capital Assets, Being Depreciated,

Net

$10,183,779.43 $ -238,088.81 $

13,030.70 $ 9,932,659.92

Capital Assets, Net

$ 12 251 363 43 $ -233 713 81 $ 1303070 $ I2 004.61 8 92

NOTE 5: DEFERRED REVENUE

Deferred revenue at June 30, 2009, consists of the following:

Prepaid Tuition and Fees

$ 1,228,534.20

NOTE 6: LONG-TERM LIABILITIES

Long-Term liability activity for the year ended June 30, 2009, was as follows:

Other Liabilities Compensated Absences

Balance

Additions

Reductions

Balance June 30, 2009

$ 761 220 84 $ 7201205.24 $ 578 539,9:1 $ 202,886 84

Current Portion

- 10 -

LANIER TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2009

EXHIBIT "D"

NOTE 7: NET ASSETS

Changes in Net Asset activity for the year ended June 30, 2009 was as follows:

Invested in Capital Assets Net of Related Debt
Restricted - Expendable
Unrestricted Net Assets
Total Net Assets

Balance Julx 1, 2008 $12,251,363.43
3.06 490,955.60
$ 12 1~:2,322 02

Additions $ -233,713.81
3,249,286.54 15,804,756.19 $ 18 820 328.22

Reductions $ 13,030.70
3,249,289.60 15,844,433.28
$ 12 106 753.58

Balance June 30, 2009 $ 12,004,618.92
0.00
451,278.51

NOTE 8: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Plan Description Lanier Technical College participates in the Teachers Retirement System of Georgia (TRS), a cost-sharing multiple-employer defined benefit pension plan established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia. TRS provides service retirement, disability retirement, and survivor's benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

Funding Policy Employees of Lanier Technical College who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. Lanier Technical College makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. For fiscal year 2009, the employer contribution rate was 9.28% for covered employees. Employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2009 2008 2007

100% 100% 100%

$ 623,357.39 $ 604,684.77 $ 572,494.87

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Plan Description Lanier Technical College participates in the Employees' Retirement System of Georgia (ERS), a single-employer 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.
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LANIER TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2009

EXHIBIT "D"

NOTE 8: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Plan Description The ERS Board of Trustees created the Supplemental Retirement Benefit Plan (SRBP) effective January 1, 1998. The SRBP was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of ERS. The purpose of SRBP is to provide retirement benefits to employees covered by ERS whose benefits are otherwise limited by IRC 415.
The benefit structure of ERS is established by the Board of Trustees under statutory guidelines. Unless the employee elects otherwise, an employee who currently maintains membership with ERS based upon State employment that started prior to July l, 1982, is an "old plan" member subject to the plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are "new plan" members subject to the modified plan provisions. Effective January 1, 2009, newly hired State employees, as well as rehired State employees who did not maintain eligibility for the "old" or "new" plan, are members of the Georgia State Employees' Pension and Savings Plan (GSEPS). ERS members hired prior to January 1, 2009 also have the option to change their membership to the GSEPS plan.
Under the old plan, new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60.
Retirement benefits paid to members are based upon a formula adopted by the Board of Trustees for such purpose. The formula considers the monthly average of the member's highest 24 consecutive calendar months of salary, the number of years of creditable service, and the member's age at retirement. Post-retirement cost-of-living adjustments may be made to members' benefits provided the members were hired prior to July 1, 2009. 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.
Funding Policy As established by State statute, all full-time employees of the State of Georgia and its political subdivisions, who are not members of other state retirement systems, are eligible to participate in the ERS. Both employer and employee contributions are established by State statute. The Technical College's payroll for the year ended June 30, 2009, for employees covered by ERS was $1,714,882.11. The Technical College's total payroll for all employees was $10,969,153.05.

- 12 -

LANIER TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2009

EXHIBIT "D"

NOTE 8: RETIREMENT PLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Funding Policy Member contribution rates are set by law. Member contributions under the old plan are 4% of annual compensation up to $4,200 plus 6% of annual compensation in excess of $4,200. Under the old plan, the Technical College pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these Technical College contributions are included in the members' accounts for refund purposes and are used in the computation of the members' eamable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The Technical College is required to contribute at a specified percentage of active member payroll established by the Board of Trustees determined annually in accordance with actuarial valuation and minimum funding standards as provided by law. These Technical College contributions are not at any time refundable to the member or his/her beneficiary.

Employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2009 2008 2007

100% 100% 100%

$ 178,225.28 $ 160,134.66 $ 167,746.20

Actuarial and Trend Information Actuarial and historical trend information is presented in the ERS June 30, 2009 financial report, which may be obtained through ERS.

GEORGIA DEFINED CONTRIBUTION PLAN

Plan Description Lanier Technical College participates in the Georgia Defined Contribution Plan (GDCP) which is a single-employer defined contribution plan established by the General Assembly of Georgia for the purpose of providing retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Board of Trustees of the Employees' Retirement System of Georgia.

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

- 13 -

LANIER TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2009

EXHIBIT "D"

NOTE 8: RETIREMENT PLANS
GEORGIA DEFINED CONTRIBUTION PLAN
Benefits Trustees has the option of requiring a lump sum distribution to the member in lieu of making periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary. Benefit provisions are established by State statute.
The Employees' Retirement System of Georgia issues a financial report each fiscal year which may be obtained through ERS.
Contributions and Vesting Member contributions are seven and one-half percent (7.5%) of gross salary. There are no employer contributions. Contribution rates are established by State statute. Earnings are credited to each member's account in a manner established by the Board of Trustees. Upon termination of employment, the amount of the member's account is refundable upon request by the member. The Technical College's payroll for the year ended June 30, 2009, for employees covered by GDCP was $1,573,354.33. The Technical College's total payroll for all employees was $10,969,153.05.
Total contributions made by employees during fiscal year 2009 amounted to $117,794.94 which represents 7.5% of covered payroll. These contributions met the requirements of the plan.
NOTE 9: RISK MANAGEMENT
Public Entity Risk Pool The Department of Community Health administers for the State of Georgia a program of health benefits for the employees of units of government of the State of Georgia, units of county governments, and local education agencies located with the State of Georgia. This plan is funded by participants covered in the plan, by employers' contributions paid by the various units of government participating in the plan, and appropriations made by the General Assembly of Georgia. The Department of Community Health contracted with United Healthcare to process medical claims and Medco to process prescription drug claims in accordance with the State Employees' Health Benefit Plan as established by the Department of Community Health.
Other Risk Management The Department of Administrative Services (DOAS) has the responsibility for the State of Georgia of making and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS processes claims for risk of loss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers'
- 14 -

LANIER TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2009

EXHIBIT "D''

NOTE 9: RISK MANAGEMENT

Other Risk Management indemnification. Limited amounts of commercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. The Technical College, as an organizational unit of the Technical College System of Georgia, is part of the State of Georgia reporting entity, and as such, is covered by the State of Georgia risk management program administered by DOAS. Premiums for the risk management program are charged to the various state organizations by DOAS to provide claims servicing and claims payment.

NOTE 10: POSTEMPLOYMENT BENEFITS

The Technical College participates in two State of Georgia postemployment benefit plans, the Georgia Retiree Health Benefit Fund (administered by the Department of Community Health) and the State Employees' Assurance Department - OPEB (administered by the ERS System). Separate financial reports that include the applicable financial statements and required supplementary information for these plans are publicly available and may be obtained from the respective system offices.

Georgia Retiree Health Benefit Fund The Georgia Retiree Health Benefit Fund (GRHBF) is a cost-sharing multiple-employer defined benefit postemployment healthcare plan that covers retired employees of the State including all departments, agencies and local school systems. GRHBF provides health insurance benefits to eligible retirees and their qualified beneficiaries through the health insurance plan for State employees. The Official Code of Georgia Annotated (OCGA) assigns the authority to establish and amend the benefit provisions of the employees' health insurance plan (including benefits for retirees) to the Board of Community Health (Board).

The contribution requirements of the plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately 25 percent of the cost of the health insurance coverage.

Participating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rate is established to fund both the active and retired employee health insurance plans based on projected "pay-as-you-go" financing requirements. The combined rates for the active and retiree plans for the fiscal year ended June 30, 2009, were as follows:

July 2008 - January 2009 February 2009 March 2009 - June 2009

22.165% of covered payroll for August - February Coverage 1.926% of covered payroll for March Coverage 0.000% of covered payroll for April - July Coverage

- 15 -

LANIER TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2009

EXHIBIT "D"

NOTE 10: POSTEMPLOYMENT BENEFITS

Georgia Retiree Health Benefit Fund No additional contribution was required by the Board for fiscal year 2009 nor contributed to GRHBF to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the State plan for other postemployment benefits and are subject to appropriation.

The following table summarizes the Technical College's contributions to the health insurance plans for the years ending June 30, 2009 and June 30, 2008, (dollars in thousands):

Fiscal Year

Percentage Contributed

Required Contribution

2009 2008

100% 100%

$ 1,099,221.88 $ 1,868,617.79

State Employees' Assurance Department - OPEB State Employees' Assurance Department - OPEB (SEAD-OPEB) is a cost-sharing multipleemployer defined benefit postemployment plan that was created in fiscal year 2007 by the Georgia General Assembly to provide term life insurance to retired and vested inactive members of the Employees' Retirement System.

Contributions by plan members are established by the Board of Trustees, up to the maximum allowed by statute (not to exceed 0.5% of eamable compensation). The Board of Trustees of the Employees' Retirement System establish employer contribution rates, such rates which, when added to members' contributions, shall not exceed 1% of eamable compensation. For the fiscal year ended June 30, 2009, contributions of ERS "old plan" members were 0.45% of eamable compensation, 0.22% of which was paid by the employer. Contributions of ERS "new plan" members were 0.23% of eamable compensation. There were no employer annual required contributions (ARC) for the fiscal years ended June 30, 2009 and June 30, 2008.

NOTE 11: CONTINGENCIES

Amounts received or receivable from grantor agencies are subject to audit and adjustment by granter agencies. This could result in refunds to the grantor agency for any expenses which are disallowed under grant terms. The amount of expenses which may be disallowed by the grantor cannot be determined at this time although Lanier Technical College expects such amounts, if any, to be immaterial to its overall financial position.

Litigation, claims and assessments filed against Lanier Technical College (an organizational unit of the Technical College System of Georgia), if any, are generally considered to be actions against the State of Georgia. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 2009.

- 16 -

LANIER TECHNICAL COLLEGE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2009

EXHIBIT 11D"

NOTE 12: NATURAL CLASSIFICATIONS WITH FUNCTIONAL CLASSIFICATIONS
The Technical College's operating expenses shown at the natural classification on the "Statement of Revenues, Expenses and Changes in Net Assets" are all classified as Instruction at the functional classification.
NOTE 13: AFFILIATED ORGANIZATIONS
In accordance with GASB Statement No. 39, Determining Whether Certain Organizations are Component Units, an amendment of GASB Statement No. 14, The Reporting Entity, Lanier Technical College Foundation has been determined to be a legally separate, tax exempt organization whose activities primarily support Lanier Technical College, a member college of postsecondary education in Georgia whose units comprise the Technical College System of Georgia (an organizational unit of the State of Georgia). The State Accounting Office has determined Component Units of the State of Georgia, as required by GASB Statement No. 39, should be assessed in relation to their significance to the State of Georgia. Accordingly, Lanier Technical College has not included financial activity for Lanier Technical College Foundation in these financial statements.

- 17 -

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SUPPLEMENTARY INFORMATION - 19 -

LANIER TECHNICAL COLLEGE BALANCE SHEET (NON-GAAP BASIS)
BUDGET FUND JUNE 30, 2009
ASSETS
Cash and Cash Equivalents Accounts Receivable
Federal Financial Assistance Other Prepaid Expenditures
Tota I Assets
LIABILITIES AND FUND EQUITY
Liabilities Salaries Payable Accounts Payable Encumbrances Payable Deferred Revenue Funds Held for Others
Total Liabilities
Fund Balances Reserved State Grants and Contracts Live Work Projects Prior Year local Funds Technology Fees Uncollectible Accounts Receivable Unreserved Surplus
Total Fund Balances
Total Liabilities and Fund Balances

SCHEDULE "1"

$

1,687,290.31

304,095.21 1,161,122.73
48,538.46

$ ===3==,2=0=1==,0=46=.7=1=

$

115,878.24

395,641.28

933,191.90

1,174,028.00

3,620.55

$

2,622,359.97

$

90,335.40

48,468.86

6,625.74

393,890.27

31,225.00

8 141.47

$

578,686.74

$ ===3=2=0=1=0=46=.7=1=

Actual amounts were prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles.
- 20 -

LANIER TECHNICAL COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT {NON-GAAP BASIS)
BUDGET FUND YEAR ENDED JUNE 30, 2009

SCHEDULE "2"

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
EXPENDITURES
Adult Literacy Economic Development Technical Education
Total Expenditures
Excess of Funds Available over Expenditures
FUND BALANCE JULY 1
Reserved Unreserved
ADJUSTMENTS
Prior Year Payables/Expenditures Prior Year Receivables/Revenues Unreserved Fund Balance {Surplus) Returned
to Technical College System of Georgia YearEndedJune3~2008
Refunds to Grantors Federal Financial Assistance Returned to Other Year Ended June 30, 2008
Prior Year Reserved Fund Balance Included in Funds Available
FUND BALANCE JUNE 30

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 9,058,083.00 $ 9,058,083.00 $

1,858,938.31

1,401,284.53

7,338,890.74

6 734 013.28

$ 18,255,912.05 $ 17,193,380.81 $

0.00 -457,653. 78 -604 877.46
-1,062,531.24

0.00

5631748.56

$ 18,255,912.05 $ 17,757,129.37 $

5631748.56 -498 782.68

$ 1,681,573.00 $

1,679,798.28 $

297,000.00

205,981.05

16,277,339.05

151304,337.44

$ 18,255,912.05 $ 17,190,116.77 $

$

567,012.60 $

1,774.72 91,018.95 973 001.61
1,065,795.28
567,012.60

580,401.62 1,044.74

21,967.60 -26,943.46
-1,044.74

-3.06 -563,748.56

SUMMARY OF FUND BALANCE
Reserved State Grants and Contracts Live Work Projects Prior Year Local Funds Technology Fees Uncollectible Accounts Receivable
Total Reserved
Unreserved Surplus
Total Fund Balance
Actual amounts were prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles.
- 21 -

$

90,335.40

48,468.86

6,625.74

393,890.27

31,225.00

$

570,545.27

8141.47

$

578,686.74

LANIER TECHNICAL COLLEGE STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING SOURCE COMPARED TO BUDGET
(NON-GMP BASIS) BUDGET FUND YEAR ENDED JUNE 30, 2009

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

Original Aeeror,,riation

Final Budget

Current Year Revenues

Funds Available Comeared to Budget

Prior Year Car!)'.-Over

Total Funds Available

Variance Positive (Negative)

668,418.00 844,005.00 668 418.00
2,180,841.00

587,687.00 887,452.00 206 43400
1,681,573 00

587,687.00 887.452.00 204 769.28
1,679,908.28

0.00 0.00 110.00
110.00

587,687.00 887,452.00 204 879.28
1,680,018.28

0.00 0.00 -1 554.72
-1,554.72

Economic Development Other Funds

$

480 000.00 $

297,000.00 $

288 344.90 $

6 185.39 $

294,530.29 $

-2 469.71

Technical Education State Appropriation State General Funds Federal Funds American Recovery and Reinvestment Act of 2009 Federal Stabilization Funds Other Federal Funds Other Funds
Total Technical Education

10,028,617.00 $

8,470,396.00 $

8.470,396.00 $

0.00 $ 8,470,396.00 $

0.00

0.00 815,597.00 5 527 473.54
16 371 687.54

72,314.00 899,172.31 6 835 456.74
16 277 339.05

72.314.00 441,518.53 6 240 89910
15 225 127.63

0.00 0.00 557 453.17
557 453.17

72,314.00 441,518.53 6 798 352 27
15 782 580.80

0.00 -457,653. 78
-37 104.47
494 758.25

Grand Totals - All Programs

$

19,032,528.54 $ 18,255,912.05 $ 17,193,380.81 $

563 748.56 $ 17,757,129.37 $

-498,782.68

Actual amounts were prepared on a prescribed basis of accounting that demonstrates compliance with budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles.

SCHEDULE "3"

Expenditures Compared to Budget

Variance

Positive

Actual

(Negative)

Actual Funds Available
Over/(Under) Expenditures

Prior Period Adjustments

Other Adjustments

Program Fund
Balances

Transfers

Pro51ram Fund Balances

Reserve

Surplus

Total Fund Balance

587,687.00 887,452.00 204 659.28
1,679,798.26

0.00 0.00 1 774.72
1 774.72

0.00 0.00 220.00
220.00 $

31.11 0.00 -220.00
-188.89

0.00

31.11

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

31.11 $

0.00

000

31.11

31.11

0.00

0.00

0.00

0.00

0.00

0.00

0.00

31.11

31.11

205 981.05 $

91 018.95 $

88549.24 $ 18436.16 $

0.00 $ 106 985.40 $===0==00= $ 106 98540 $===0==00= $ 106 985.40

8,470,396.00 $

0.00 $

0.00 $ 4,180.47 $

000 $

4,180.47 $

0.00 $

0.00 $

4,180.47 $

4,180.47

72,314.00 441,518.53 6 320 108.91
15 304 337.44

0.00 457,653.78 515 347.83
973 001.61

000 0.00 478 243.36
478 243.36

0.00 0.00 27 403.60
-23 223.13

0.00 0 00 -14 575.00
-14 575.00

0.00 0.00 436 264.76
440 445.23

0.00

0.00

0.00

0.00

000

432 334.87

0.00 0.00 3 929.89

0.00 0.00 436 264.76

0.00

432 334.87 $ 8110.36

440 44523

17,190,116.77 $ 1,065,795.28 $

567,012.60 $ 4,975.86 $ -14,575.00 $ 547,461.74 $

0.00 $ 539,320.27 $ 8,141.47 $ 547,461.74

Unexpendable Reserves Uncollectible Accounts Receivable

31 225.00 578 686 74

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LANIER TECHNICAL COLLEGE RECONCILIATION OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 2009

SCHEDULE "4"

Totals per Annual Supplement
Accruals June 30, 2009 June 30, 2008
Compensated Absences June 30, 2009 June 30, 2008
Encumbrances June 30, 2009 June 30, 2008
Agency Funds
Unidentified Variance

SALARIES $ 10,861,357.62 $

TRAVEL 80,601.74

116,083.24 -37,238.38

730,402.33 -612,440.64

-89,035.44 4,423.17
-8, 152.50
3,753.65

-1,082.37

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SECTION II FINDINGS AND QUESTIONED COSTS

LANIER TECHNICAL COLLEGE SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2009
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.