GI\. A~oo .R.I \JG, tv\ :> 1994-95 STATE OF GEORGIA DEPARTMENT OF AUDITS 254 WASHINGTON STREET ATLANTA, GEORGIA 30334 REVIEW REPORT STATE OF GEORGIA MACON TECHNICAL INSTITUTE MACON, GEORGIA YEARENDEDJUNE30, 1995 MACON TECHNICAL INSTITIJTE 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 (STATIJTORY BASIS) ALL FUND TYPES AND ACCOUNT GROUPS 2 B STATEMENT OF CHANGES IN FUND BALANCE (STATIJTORY BASIS) GOVERNMENTAL FUND TYPE 3 C STATEMENTOFFUNDSAVAILABLEANDEXPENDITURES BUDGET FUND 4 STATEMENTS OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BUDGET FUND D "A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION 7 E "B" LOTTERY FOR EDUCATION 8 F NOTES TO THE FINANCIAL STATEMENTS 9 SUPPLEMENTARY INFORMATION G COMBINING BALANCE SHEET (STATIJTORYBASIS) BUDGET FUND 26 H COMBINING STATEMENT OF CHANGES IN FUND BALANCE (STATIJTORYBASIS) BUDGET FUND 27 COMBININGSTATEMENTOFFUNDSAVAILABLEANDEXPENDITURES BUDGET FUND 28 J COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FIDUCIARY FUND TYPE AGENCY FUNDS 30 SCHEDULES I CASH AND CASH EQUIVALENTS 31 2 SCHEDULE OF FEDERAL REVENUES 32 3 RECONCILIATION OF SALARIES AND WAGES, AND TRAVEL 33 4 RECONCILIATION OF PER DIEM AND FEES 34 MACON TECHNICAL INSTITUTE - TABLE OF CONTENTS - SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS SECTION I FINANCIAL CLAUDE L. VICKERS STATE AUDITOR ('4) 656-2174 DEPARTMENT OF AUDITS. 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 November 15, 1995 Honorable Zell Miller, Governor Members ofthe General Assembly ofGeorgia Members of the State Board of Technical and Adult Education Members ofthe Local Board ofDirectors and Honorable Melton Palmer, Jr., President Macon 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 (Ex!nbits A through F) of Macon 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 ofMacon 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 ofexpressing 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 through 4) 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. Respectfully submitted, t:/~~ Claude L. Vickers State Auditor CLV:cm 95ARL-4T FINANCIAL STATEMENTS - 1- MACON TECHNICAi INSTIJl ITf CQMQINEP BALANQE SHEFT fSTATlITQRV RASIS) Al I BJNPIXPES ANP .e.g;q 'N'TGR9VPS HINE 30 1995 EXHIBIT"A" ~ Cash and Cash Equivalents Accounts Receivable State Funds Federal Financial Assistance other P!epaklltems F...c!Assets Equipment Amounts to be Pn::Mded for Payment of: Accrued Compensated Absences GOVERNMENTAL FUNDlYPE BUDGET FIDUCIARY FUND TYPE AGENCY ACCOUNT GROUPS GENERAL GENERAL FIXED LONG-TERM ASSETS DEBT TOTALS (Memorandum Only) JUNE 30 1995 JUNE 30 1994 1007829.58 $ 12861.15 5,234.28 111,838.17 67190.08 S 184 262.53 $ 0.00 57 314.08 57 314.08 3 922 655.69 $ 1 020 690.73 $ 608125.67 5,234.28 $ 111,838.17 124 504.16 241 576.61 $ 0.00 S 5,447.69 74,531.53 90 891.48 170870.70 1 754.95 3 922 655.68 $ 3 096 397.28 355 344.99 $ 355344.99 $ 320 093.81 Total Assets 1192 092.11 $ 70175.23 $ 3 922 655.68 $ 355 344.99 $ 5 540 268.01 $ 4197 242.41 =I IARII mfg ANP Liabilities AccountsPayal>le Salaries Payable Deferred Revenue Tuition and Fees Funds Held in CUstody for others Compensated Absences Total Liabilities Fund Equity Investment in General F"ixed Assets Fund Balance Reserved Federal Financial Assistance For Refund to Georgia Department dTechnical and Adutt Education Administrative Central Office For Expired Grant Balances Uve Work Projects Prior Year L.ocat Funds Private Grants Expired Grant Balance Unre&e!Yed Designated Surplus Regui&r Lottery for Education Total Fund Equity 849,804.46 0.00 4,236.00 70,175.23 854 040.46 $ 70 175.23 3,922,655.69 355 344.99 355 344.99 $ 849,804.46 $ 0.00 4,236.00 70,175.23 355 344.99 1 279 560.68 $ 417,143.20 280.00 2,854.00 38,259.49 320093.81 n8sao.so $ 3,922,655.68 $ 3,096,397.28 0.00 1.18 223,712.86 102,076.64 6.00 12,041.55 213.42 338 051.65 $ 3922 655.68 0.00 1.18 223,712.86 102,076.64 6.00 190.57 0.00 194,767.87 107,051.00 339.45 12,041.55 213.42 14,065.84 5 799.90 $ 4,260 707.33 $ 3418611.91 Total Liabilities and Fund Equity 1192 092.11 $ 70 175.23 $ 3 922 655.68 $ 355 344.99 $ 5 540 268.01 $ 4197 242.41 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. -2 - MACON TECHNICAL INSTITUTE STATEMENT OF CHANGES IN FUND BALANCE /STATUTORY BASIS\ GOVERNMENTAL FUND TYPE YEAR ENDED JUNE 30 1995 EXHIBIT"B" FUND BALANCE - JULY 1 Reserved Unreserved Designated Surplus ADDITIONS Adjustments to Prior Year'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 - Administrative Central Office Year Ended June 30, 1994 Adjustments to Prior Year's Accounts Receivable Refunds to Grantors Peace Officers standard and Training Council Reimbursement of Prior Year's Expenditures Reserved Fund Balance Carried Over from Prior Year as Funds Available FUND BALANCE - JUNE 30 (To Exhibit "A") BUDGET FUND YEAR ENDED JUNE 30, 1995 JUNE 30, 1994 $ 302,348.89 $ 255,735.83 19,865.74 0.00 $ 322,214.63 $ 255,735.83 $ 14,265.84 $ 987.17 335,129.81 321,778.85 $ 349,395.65 $ 322,766.02 $ 19,865.74 $ 11,201.12 0.00 194.00 333.45 0.00 0.00 357.39 302,158.32 255,735.83 333,558.63 $ 256,287.22 $ 338,051.65 $ _ _m3_2_2..,,2_1_4_.e_3 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- MACON TECHNICAi,, INSTfTI.JTF STATEMENT OF FUNQS AVAIi ARI F ANP EXPENOITURES BUQGETFUNP YEAR ENPEP JUNE 30 1$9$ EXHISIT"C" FUNQS AVAIi ABLE ~ STATE FUNDS Allotment from Georgia Department or Technical and Adult Education - Administrative Central Office FEDERAL REVENUES (See Schedule) OTHER REVENUES RETAINED Contract Georgia Depamnent al Public Safety Georgia Peace Officers standards and Training Council Fees ApplicaUon Library Registration/Continuing Education Testing Other Interest Earned Reimbursements from Various Sources Rents Sales and SaMces (Net) Tuition Other Sources Total Other Revenues Retained Total Revenues CARBY-OVER FROM f'BIQB YEAR Transfer from Reserved Fund Balance Live Work Projecl& Prior Year Local Funds Private Grants Total C a ~ r from Prior Year Total Funds Available EXPENDITURES Pl;RSQNAL SERVICES-INSTITUTIONS Salaries and Wages Employer's Contributions for: F.I.CA Retirement Heabh Insurance Liability Insurance UnemF>knent Compensation Insurance Worker&' Compensation Insurance TOTALS YEAR ENDED JUNE 30, 1995 JUNE 30 1994 6,181,509.28 $ 1,207,782.18 $ 5745,1-49.78 1,198,297.41 230,178.,46 $ 27/JTT.48 321178.25 320,466.42 0.00 0.00 2,011.58 0.00 0.00 146,829.88 1,1TT,625.64 81.274.95 2,019,342.66 $ 9,408,634.12 $ 226,079.45 35,168.00 15,851.75 314,129.00 12,408.12 6,643.96 1-.30 4,575.00 10,525.00 91,818.00 1,020/J00.23 21,608.85 1,761,506.66 8,704,953.85 194,767.87 $ 107,051.00 339.45 302,158.32 $ 1531J56.67 101,TT9.16 0.00 255,735.83 9,710,792.44 $ 8,960,689.68 5,052,075.97 $ 150,857.06 528,886.68 532,693.16 31,623.00 4,136.00 13,536.00 6,313,607.87 $ 4,619,258.32 129,293.86 '490,857.46 474,934.98 17,272.00 1,021.00 5,570.00 5,728,107.62 See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary lnformaOon. The noles to the financial statements are an integral part of this statement. . 4. MACON IfCHNICAL INSTfTUJE STATfUFNT OF fUNOS AYAHABLE AND EXPENDm.JRES BUDGET FLJNP VEAR ENOEQ JUNE 30 1995 EXHIBIT"C" fXPENPtIYBes OPERATING exeeNSeS-INSTITUTIONS Olhet-Coots MolorVahlcleSupplies and Materials Repairs and Maintenance Ulilllies Rents (Olhet-than Real Emme) Insurance and Bonding Olhet-Operating Publication& and Printing T,-t Motor Vahlcle Purchases Equipment Equipment PurchMM Rental of Equipment Computer Cha,_ ScftwaAI Equipment Equipment Purchases Real Estate Rentals T8'ecommunk:alions Per Diem, Fees and Contracts Per Oiem and Fees Contracts QUICK START PROGRAM PenloMJSer,riceg Salaries and Wages Employer's Contribution for: F.I.CA. Olhet-Coots Supplies and Materials Per Diem, Fees and Contracts Per Diem and Fees AQUlI l lTERA.CY GRANTS Personal Service& Salaries and Wages Employer's Contributions for: FJ.CA. Retirement Health tnsurance Olhet-Coots Supplies and Materials T,-t Equipment Equipment Purchases JQB TRAINING PARTNERSHIP ACT Personal Services Salaries and Wages Employer's Contribution for: F.I.CA. See Independent Accountant's Combined Report on Review or Financial statements and Supplementary Information. The notes to the financial statements are an integral part of this statement. -5- TOTAL YEAR JUNE 30, 1995 30, 1994 3,988.75 $ 717,154.47 208,419.68 235,180.50 500.00 7,107.00 265,354.12 39,481.42 35,110.80 16,692.00 366,541.<11 26,129.56 750.00 450,666.12 12,012.06 95,275.73 13,110.00 109,641.98 2,803,125.60 $ 2,935.42 588,464.52 118,911.99 253,994.46 10,831.54 7,428.00 285,780.33 38,STT.66 29,689.01 2,800.00 478,687.83 19,9TT.54 16,550.00 251,173.06 0.00 76,485.32 36,488.07 71,719.59 2,290,695.74 660.25 $ 2.06 366.85 1,548.12 2,575.28 $ 2,576.48 50.01 1,542.35 10,558.52 14,827.36 50,340.00 $ 706.68 5,945.16 6,292.56 0.00 264.00 0.00 63,548.40 $ 44,374.00 623.45 5,240.62 5,546.75 6,096.25 375.30 2,474.74 64,731.11 39,197.00 $ 559.68 37,332.19 532.95 UAC0N JeCHNICAI INSTITIJTF STATEIENT QF RJNQS AVAILABLe ANP FXPENPIDIBES BUQGETFUNP YsAB ENQEP JUNE 30 1995 EXHISIT"C" exeeNPITVBes -JOB TRAINING PARTNERSHIP ACT l'enlonalServicea El11flkH's Contributions for: Health Insurance Liability lnourance Olherec.ts Supplies and Material& Insurance and Bondlng Other Operating~ Traw,1 Telecommunications EQUIPMfNTTECHNICAL INSTJTllTeS Other Costs Other Operating~ Equipment Equipment Purchases REPAIR~ ANO RENQYATIONS OtherCosts Repairs and Maintenance Tat.al Expenditures Excess of Funds Available ewer Expenditure& TOTALS YEAR ENOEO JUNE 30, 1995 JUNE 30 1994 3,747.12 $ 3-.02 211.00 IIOol.75 8.00 174.00 1,058.91 0.00 49,824.48 $ 3,086.88 3,267.24 127.00 0.00 8.00 2,032.73 1,488.91 1 BOO.DO 49673.90 122.76 $ 342,108.24 342,231.00 $ 0.00 490875.10 490,875.10 750.00 $ 9,375,662.63 $ 335,129.81 0.00 8,638,910.83 321 778.85 9,710,792.44 $ 8,960,689.68 See Independent Accountant's Combined Report on Review of Financial statements and Supplementary Information. The note& to the financial statements are an integral part of this statement. -6 - MACON TECHNICAL INSTITUTE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BUDGET FUND "A" DEPARTMENT Of TECHNICAL AND ADULT EDUCAT\ON YEAR ENDED JUNE 30 1995 EXHIBIT"D" FUNDS AVAILABLE fiM!iUES state Funds Federal Revenues Other Revenues Retained CARRY-Qla;R FROM eRIOR Yl,AR Transfer from Reserved Fund Balance BUDGET ACTUAL VARIANCE FAVORABLE (UNFAVORABLE) $ 5,838,686.00 $ 5,838,528.28 $ 1,292,559.00 1,207,782.18 2,467,415.00 2,019,342.66 $ 9,598,660.00 $ 9,065,653.12 $ -157.n -84,776.82 -448on.34 -533,006.88 10,000.00 302,158.32 292,158.32 $ 9 608 660.00 $ 9,367,811.44 $ -240,848.56 EXeENDITURES Personal Services-Institutions Operating Expenses-institutions Quick Start Program Adult Literacy Grants Job Training Partnership Act $ 6,504,245.00 $ 6,313,607.87 $ 2,960,943.00 2,603,125.60 2,576.00 2,575.28 67,000.00 63,548.40 53,896.00 49,824.48 190,637.13 377,817.40 0.72 3,451.60 4,071.52 9,608 660.00 $ 9,032,681.63 $ 575,978.37 Excess of Funds Available over Expenditures $ 335129.81 $ 335129.81 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. MACON TECHNICAi INSTITlJTf STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED JO BUDGET BUDGET FUND "B" LOTTERY FOR EDUCATION YEAR ENPEP JUNE 30 1995 EXHIBIT"E" FUNDS AVAILABLE BUDGET ACTUAL VARIANCE- FAVORABLE (UNFAVORABLE) State Funds 812981.00 $ 342,981.00 $ _ _ _-4;;_70::,,000=::;00:.. EXPENDITURES Equipment-Technical Institutes Repairs and Renovations $ 342,231.00 $ 342,231.00 $ 0.00 470,750.00 750.00 470000.00 812981.00 $ 342,981.00 s _ _ _4.;.;7.:.o,:::ooo=.oo::.. Excess of Funds Available over Expendttures 0.00 $ ===...,;0;;;.00;;;, See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary lnfonnation. The notes to the financial statements are an integral part of this statement. 8. MACON TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEl\IBNTS JUNE 30 1995 EXHIBIT "F" NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY Macon 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 ofthe State of Georgia. The accompanying financial statements reflect the operations of Macon Technical Institute as a separate reporting entity. The Institute's Local Board ofDirectors is composed of eleven (11) 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 of Technical 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 Macon Technical Institute. The Institute does not have authority to retain unexpended State funds (surplus) for any given fiscal year. Accordingly, Macon Technical Institute is considered an organizational unit ofthe Georgia Department ofTechnical and Adult Education 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 Codification ofGovernmental Accounting and Financial Reporting Standards. FUND ACCOUNTING Macon 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 of Georgia. 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. -9- MACON TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995 EXIIlBIT "F" NOTE I: 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 ifhistorical 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 ofthe 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. Wrth 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 ofGeorgia, the Budget Fund returns its unreserved fund balance (surplus) to the Administrative Central Office ofthe Department ofTechnical and Adult Education for remittance to the Office ofTreasury 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 ofaccounting. 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 ofthe 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. - 10- MACON TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS JUNE30 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 prescribed 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 ofthese 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 ofallotments 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. - 11 - MACON 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: FEDERAL FINANCIAL ASSISTANCE EXPIRED GRANT BALANCES Expired grant balances represent the unexpended balance ofFederal financial assistance, other than through the Georgia Department ofTechnical and Adult Education - Administrative Central Office, remaining after the expiration ofthe Federal program/project. This amount is refundable to the applicable grantor. 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, 1989, Macon Technical Institute became a part ofthe Georgia Department of Technical and Adult Education. The Official Code of Georgia 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. PRIVATE GRANTS EXPIRED GRANTS Expired grant balance represents the unexpended balance ofa private grant remaining after the expiration of the Private Program/Project. This amount is refundable to the applicable grantor. 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 ofunexpended general appropriations available to the State for reappropriation in subsequent years. - 12 - MACON TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995 EXHIBIT "F" NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES UNRESERVED FUND BALANCE LOTI'ERY FOR EDUCATION - An amount ofunexpended lottery appropriations available for future reappropriation for Lottery for Education. 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 ofannual 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. 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 ofthe United States or ofthe State of Georgia. - 13 - MACON TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS JUNE30 1995 EXHIBIT"F" NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES (2) Bonds, bills, certificates ofindebtedness, notes, or other obligations ofthe counties or municipalities ofthe State ofGeorgia. (3) Bonds ofany public authority created by the laws ofthe State ofGeorgia, providing that the statute that created the authority authorized the use ofthe 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. 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 ofGeorgia (which include technical institutes) the option of exempting 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 ofJune 30, 1995, are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk: Category 1 - 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 Institute's name, and amounts uncollateralized. Cash Deposits Canying Amount $)0)966573 Bank Balances ~)24)2826) $ 20000000 Risk Categories ~)04)2826) $,_ _=ol,!lloo - 14 - MACON TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995 EXIIlBIT "F" NOTE 3: OPERATING LEASES Macon Technical Institute has entered into certain agreements to lease equipment which are classified as operating leases (leases 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 of renewing 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 1997 1998 $ 20,768.64 5,617.44 468.12 Total Future Minimum Lease Payments $ 26 854 20 Expenditures for rental of equipment under operating leases for the year ended June 30, 1995, totaled $23,330.76. 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 ofchanges ofequipment for the General Fixed Assets Account Group during the fiscal year: Balance July 1, 1994 Additions Deductions Balance June 30, 1995 $ 3,096,397.28 1,128,641.76 302 383.36 $ 3 922 655 68 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: - 15 - MACON TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS ruNE 30 1995 EXIIlBIT "F" NOTE 5: GENERAL LONG-TERM DEBT CHANGES IN GENERAL LONG-TERM DEBT Balance July 1, 1994 Additions Annual Leave Earned and Utilized (Net) Salaries and Wages Salary-Related Fringe Benefits Balance June 30, 1995 NOTE 6: RISK MANAGEMENT $ 320,093.81 34,228.27 1 022.91 $ 355 344 99 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 ofunits 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' contnbutions 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. 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 of the State of Georgia and county health departments, pennits 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 - 16 - MACON TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995 EXHIBIT"F" NOTE 7: DEFERRED COMPENSATION PLAN 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 ofthe State Personnel Board - Merit System of Personnel Administration for the year ended June 30, 1995. NOTES: RETIREMENTPLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA Plan Description Macon Technical Institute participates in the Teachers Retirement System ofGeorgia (TRS), a cost-sharing multiple-employer public employee retirement system (PERS) established by the General Assembly ofGeorgia 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 $2,885,270.28. The Institute's total payroll for all employees was $5,142,273.22. Benefits TRS provides service retirement, disability retirement, and survivor's benefits for its members. A member is eligible for service retirement after the member (1) has attained the age of60 years and has at least ten years ofcreditable service, (2) has at least 30 years ofcreditable service, regardless of age, or (3) has attained the age of55 years and has at least 25 years ofcreditable 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 ofyears of creditable service up to 40 years. Any member who has between 25 and 30 years ofcreditable 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 ofservice) and compensation up to the date ofdeath 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. - 17 - MACON TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995 EXHIBIT "F" NOTE 8: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA Contributions Required and Contributions Made Employees of the Institute who are covered by TRS are required to pay 5% oftheir gross earnings to TRS. The Institute makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actwuy. 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 contnbutions to the plan made during fiscal year 1995 amounted to $484,861.24, of which $336,539.92 was made by the Institute, $4,057.44 was made by the Georgia Department of Education on behalf of the Institute and $144,263.88 was made by employees. These contributions 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 of credited 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 ofthe 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. 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 $ I 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 $340,597.36 was actuarially determined and represented 0.0603% oftotal contributions made by all participating employers. - 18 - MACON TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995 EXHIBIT "F" NOTE 8: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA Trend Information Historical trend infonnation 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 Macon 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 $1,291,808.10. The Institute's total payroll for all employees was $5,142,273.22. Benefits The benefit structure ofERS was significantly modified on July 1, 1982. Unless elected 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. All other members are "new plan" members subject to the modified plan provisions. 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% ofannual compensation paid by the Institute on behalf of the 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. - 19- MACON TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995 EXHIBIT"F" NOTE 8: RETIREMENT PLANS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA Contributions Required and Contributions Made Total contnbutions to the plan made during fiscal year 1995 amounted to $208,489.66, of which $192,341.16 was made by the Institute and $16,148.50 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 of employee 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. (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 of June 30, 1994, which was the latest information available, was as follows: -20- MACON TECHNICAL INSTITUTE NOTES TO TI-IE FINANCIAL STATEMENTS JUNE30 1995 EXHIBIT "F" NOTES: RETIREMENTPLANS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA Funding Status and Progress 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 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 contributions 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 $192,341.16 was actuarially determined and represented 0.075% 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. - 21 - MACON TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995 EXHIBIT "F" NOTE 8: RETIREMENT PLANS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 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 Macon 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 $732,842.60. The Institute's total payroll for all employees was $5,142,273.22. Benefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board ofTrustees. If a member has Jess than$ 3,500.00 credited to his/her account, the Board of Trustees has the option of requiring a Jump sum distribution to the member in lieu ofmaking 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. 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 $54,963.90 which represents 7.5% of covered 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 offorty-five days. Employees are paid for unused accumulated annual leave upon retirement or termination of employment. See Note 1 - Compensated Absences - 22- MACON TECHNICAL INSTITUTE NOTES TO TIIE FINANCIAL STATEMENTS JUNE30 1995 EXHIBIT "F" NOTE 9: LEAVE POLICIES 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 tennination ofemployment. 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 $3,211,616.72 to various vendors for approved projects related to Macon Technical Institute. 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 Macon 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 of Georgia Annotated, the Department of Administrative Services maintains a program ofpurchased 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 of Macon 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 was paid to October 1, 1995. Under this agreement, the public employee dishonesty coverage insures Macon Technical Institute to a maximum of $1,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. The faithful performance of duty 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. - 23 - MACON TECHNICAL INSTITUTE NOTES TO THE FINANCIAL STATEMENTS JUNE30 1995 EXHIBIT"F" NOTE 12: BONDING INFORMATION All employees ofMacon 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 were 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. -24- SUPPLEMENTARY INFORMATION - 25 - MACON TECHNICAL INSTITUTE COMBINING BALANCE SHEET /STATUTORY BASIS} BUDGET FUND JUNE30 1995 EXHIBIT"G" cash and cash Equivalents Accounts Receivable state Funds Federal Financial Assistance Other "A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION a LOTTERY FOR EDUCATION TOTAL $ 791,303.40 S 216,526.18 $ 1,007,829.58 $ 5,234.28 111,838.17 67,190.08 $ 184,262.53 $ 5,234.28 111,838.17 67,190.08 $ 184,262.53 Total Assets $ 975565.93 $ 216526.18 $ 1192092.11 LIABILITIES AND FUND EOUITY Liabilities Accounts Payable Deferred Revenue Tuition and Fees Total Liablllties Fund Equity Fund Balance Reserved Federal Financial Assistance For Expired Grant Balances Live Wo11< Projects Prior Year Local Funds Private Grants Expired Grant Balance Unreserved Designated Surplus Regular Lottery for Education Total Fund Equity Total Liabillties and Fund Equity 633,491.70 $ 4,236.00 637727.70 $ 216,312.76 $ 849,804.46 4,236.00 216,312.76 $ --~854=~040=.46~ $ 1.18 223,712.86 102,076.64 6.00 $ 1.18 223,712.86 102,076.64 6.00 12,041.55 $ $ 337,838.23 $ 213.42 213.42 $ 12,041.55 213.42 338,051.65 $ 975565.93 $ 216526.18 $ 1192092.11 See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 26. MACON TECHNICAL INSTITUTE COMBINING STATEMENT OF CHANGES IN FUND BAI ANCE /STATUTORY BASIS} BUDGET FUND YEAR ENDED JUNE 30 1995 EXHIBIT"H" fliND BALANCE - JI/LY l Reserved Unreserved Desiglated Surplus ADD!IIQN.S Adjuslmenls to Prior Yea(s Accounts Payable Excess of Funds Available over Expenditures Elchiblt 1 DEDUCTIONS Unreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and Adult Education - Administrative Central Off,ce Year Ended June 30, 1994 Adjustments to Prior Yea(s Accounts Receivable Refunds to Grantors Peace OfflCelS Standards and Training Council Reserved Fund Balar,ce Carried OVer from Prior Year as Funds Available FUND BALANCE - JUNE 30 (To Elchiblt "G") "A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION "B" LOTTERY FOR EDUCATION TOTAL 302,348.89 14,065.84 $ $ 316,414.73 $ $ 5,799.90 5,799.90 $ 302,348.89 19,865.74 322,214.63 $ 14,052.42 $ 335,129.81 $ 349,182.23 $ 213.42 $ 213.42 $ 14,265.84 335,129.81 349,395.65 14,065.84 $ 11,201.12 333.45 302,158.32 $ _____3~27~,7~58~~73~$ 5,799.90 $ 19,865.74 11,201.12 333.45 302,158.32 5,799.90 $ ---'333=,558=~63~ 337,838.23 $ ====2=13.,.42==$ ===338===05==1.=65= See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. - 27 - UACQN TfCMNICAI INSTITl ITE COMAIN1NG STATEMENT 9f FUNP$ AVAILABlE ANQ fXPENPffilBfS ~ YEAR ENDER JlJNf3Q 1005 EXHISITT BINQS AYAH AAJ E STATE FUNDS A11atrnent from Georgia Det:,artment d T.chnic:al and Adult Education - AdministratNe Cenbal Office FEllERAl REVENUES OTHER REVENUES RETAINED ...."""""""'laDeporbnenldPubUcSafoly Georgia Peace Officers Standards and Training Council Application ui..,y RegistrationlContinuing Education lnllnSl Eamed Sales and SeMces (Net) Tuition Olhee,Com Olhef" Operating Expenses Equipment Equipment Purchases RfPAIR AND RENQVAJlONS "'"'Com Repairs and Maintenance Total Expenditures Excess ot Funds Available ewer Expenditures See accompanying notes and Independent Accountant's Combined Report on Review ot Financial Statements and SUpplementary Information. 29. ... DEPARTMENT OF TECHNICAL AND ADULT EDUCATION "8" LOTTERY FOR EDUCATION TOTAL 12,012.06 95,275.73 13,110.00 109841.98 2803125.60 12,012.06 95,275.73 13,110.00 109841.98 2803125.60 660.25 i.06 366.85 1546.12 2575.28 oeo.25 2.06 366.85 1546.12 2,575.28 50,340.00 708.88 5,945.16 6,292.56 264.00 63548.40 50,340.00 708.88 5,945.16 6,292.56 264.00 63548.40 39,197.00 558.88 3,747.12 3,966.02 211.00 SI04.75 6.00 17.C.00 1056.91 ...... 39,197.00 3,747.12 3,966.02 211.00 904.75 6.00 17.C.OO 1 056.91 4'182.C..CS 122.76 $ 342108.24 342231.00 S 122.76 3-42108.24 342231.00 _ _ _1=so=.oo~ s _ _ _750=.oo~ 9,032,681.63 S 342,981.00 S 9,375,662.63 335129.81 0.00 335129.81 9367,811.44 S 342981.00 S 9,710792.44 MACON TECHNICAL INSTITUTE COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FIDUCIARY FUND TYPE AGENCY FUNDS YEAR ENDED JUNE 30 1995 EXHIBIT"J" E\!NQ Bibb Foundation DeKalbBookstc