CENTRAL GEO--3I.LTECHNICAL COLLEGE MACON,GEORGIA INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED- UPON PROCEDURES FOR FISCAL YEAR ENDED JUNE 30,2011 Georgia Department of Audits and Accouats Russell W.Hinton Gtate Auditor CENTRAL GEORGIA TECHNICAL COLLEGE - TABLE OF CONTENTS - INDEPENDENTACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES EXH IBlTS A SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT 6 STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BY PROGRAM AND FUNDING SOURCE C STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE Page 1 2 RUSSELLW.HINTON STATE AUDITOR (404) 666-2174 DEPARTMENOTF AUDITSAND ACCOUNTS 270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 December 7,2011 Members of the State Board of the Technical College System of Georgia Members of the Local Board of Directors and Honorable Michael Moye, President Central Georgia Technical College Inde~endenAt ccountant's Report on Applying; Agreed-U~onProcedures Ladies and Gentlemen: We have performed the procedures enumerated below, which were agreed to by the College and the System Office (Oversight Unit) of the Technical College System of Georgia, solely to assist you in assessing the accuracy of the annual financial statement information reported to the System Office by the College for inclusion in the State of Georgia's ComprehensiveAnnual Financial Report (CAFR) and Single Audit ReporS; and to assist you in assessing the accuracy of budget basis information provided in the Summary Budget Comparison and Surplus Analyss Repart; Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source, and the Statement of Changes To Fund Balance By Program and Funding Source which are attached as Exhibits A, B and C, respectively. Central Georgia Technical College's management is responsible for the financial information reported to the System Office of the Technical College System of Georgia. This agreedupon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of the parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. 1. Review selected balance sheet items reported on the annual financial statement worksheets (cash, accounts receivable, accounts payable, deferred revenues, net assets). Confirm that these items have adequate supporting documentation and are properly reconciled to the College's general ledger. We did not note any exceptions as a result of our procedures. 2. Obtain the College's GAAP basis worksheets for Statement of Net Assets and Statement of Revenues, Expenses and Changes in Net Assets (SRECNA) information that was submitted for inclusion in the State's CAFR and Single Audit. Utilizing test scripts, confirm that financial information presented in these worksheets properly support activity reported in the College's accounting records. We did not note any exceptions as a result of our procedures. 3. Obtain the College's Statement of Cash Flows submitted for inclusion in the State's CAFR and Single Audit. Utilizing cash flow worksheets, confirm information reported on Statement of Cash Flows. We did not note any exceptions as a result of our procedures. 4. Obtain the College's worksheets for financial statement note disclosure information submitted for inclusion in the State's CAFR and Single Audit. Utilizing notes worksheets and other supporting documentation confirm that note disclosures related to Cash, Investments, Accounts Receivable, Capital Assets, Long-Term Debt, Lease Obligations and Retirement Plans have been properly reported. The Technical College failed to properly complete the note worksheet for the Defined Contributions note. The prior year amount did not agree to the prior year note by $29,730.13. 5. Review the College's year end GAAP basis journal entries. Obtain documentation for GAAP journal entries and confirm that the entries were posted to the College's annual financial statement worksheets. We noted GAAP entry #4C was incorrectlyposted to Federal Revenue instead of State Revenue in the amount of $6,637.15. 6. Confirm that State Appropriation revenues, receivables and remittances of prior year surplus balances have been properly recorded in the College's financial records. Prior year surplus balances should be netted against State Appropriation revenues in the GAAP basis financial statements; however, prior year surplus balances should be reflected as fund balance adjustments on the Budget basis financial statements. We did not note any exceptions as a result of our procedures. 7. Obtain listing of write-off requests for accounts receivable less than $3,000.00 for fiscal year 2011. Confirm that these write-off requests have been approved by the State Accounting Officer and have been posted to the College's financial statements. We did not note any exceptions as a result of our procedures. 8. Verify that the listing of salaries and travel reported to the Department of Audits is in accordance with O.C.G.A. 50-6-27 reconciles to amounts recorded in the College's financial statements. We did not note any exceptions as a result of our procedures. 9. Review the year end Budgetary Statements including the Summary Budget Comparison and Surplus Analysis Report (Exhibit A), Statement of Funds Avajlable and Expenditures Compared to Budget By Program and Fundjng Source (Exhibit B) and the Statement of Changes To Fund Balance By Program and Funding Source (Exhibit C). Confirm that budget information presented in these statements supports activity reported in the College's accounting records, the legal level of budgetary control (funding source within program) was maintained, and determine if any budget overexpenditures exist. We did not note any exceptions as a result of our procedures. 10. Obtain documentation for Budget basis reserves reported by the College on the Summaty Budget Comparison and Surplus Analysis Report (Exhibit A). Confirm that the reserves are properly documented, valid and appropriate. We did not note any exceptions as a result of our procedures. 11. Review the H.O.P.E. Scholarship Program reconciliation between the College and the Georgia Student Finance Commission. Confirm that information reported to the Georgia Student Finance Commission has been reconciled with H.O.P.E. Scholarship activity reported on the College's financial records. We did not note any exceptions as a result of our procedures. 12. Review the Schedule of Expendituresof Federal Awards information submitted by the College for inclusion in the Statewide Single Audit. Confirm that the information is properly presented and supported by the College's accounting records. We did not note any exceptions as a result of our procedures. 13. Review capital asset records to ensure that (1)subsidiary ledgers are appropriately reconciled to the ledgers, (2) capitalization thresholds are being properly followed, and (3) a complete annual physical equipment inventory is being conducted and that issues noted during the physical inventory are being properly addressed by management. We did not note any exceptions as a result of our procedures. 14. Review bank reconciliations during the year under review to ensure that management is preparing them timely and that reconciling items are being addressed by management timely and in an appropriate manner. We did not note any exceptions as a result of our procedures. These agreed-upon procedures do not constitute an audit of the financial statements or any part thereof, the objective of which is to express an opinion on the financial statements or a part thereof. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the specified users listed above and is not intended to be and should not be used by anyone other than these specified parties. Respectfully submitted, ~ u f i e l lW. Hinton, CPA, CGFM State Auditor EXH IBlTS CENTRAL GEORGIA TECHNICAL COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT YEAR ENDED JUNE 3 0 , 2 0 1 1 REVENUES State Appropriation State General Funds Federal Funds Other Funds Total Revenues ADJUSTMENTSAND PROGRAM TRANSFERS CARRY-OVER FROM PRIOR YEARS Transfers 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 Unreserved Fund Balance (Surplus) Returned From the Technical College Year Ended June 3 0 . 2 0 1 0 Prlor Year Reserved Fund Balance Included in Funds Available FUND BALANCEJUNE 3 0 SUMMARY QF FUND BALANCE Reserved Federal Financ~aAl ssistance Sales and Services Llve Work Projects Prior Year Local Funds Technology Fees Tuitton Total Reserved Unreserved Surplus Total Fund Balance BUDGET ACTUAL VARIANCE - FAVORABLE (UNFAVORABLE) CENTRAL GEORGIA TECHNICAL COLLEGE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURESCOMPARED TO BUDGET BY PROGRAMAND FUNDING SOURCE YEAR ENDEDJUNE 30.2011 Mult Literacy State Appropriation State General Funds Federal Funds Other Funds Total Adult Literacy Economic Development Other Funds Technical Education State Appropriation State General Funds Federal Funds Other Funds Total Technical Education Total Operating Activity Original Appropr~ation Amended Appropriation Flnal Budget Current Year Revenues EXHIBIT 'B" Funds Ava~lableCompared to Budget Prior Year Adjustments and Total Carry-Over Program Transfers Funds Available Variance Positive (Negat~ve) ExpendtturesCompared to Budget Variance Actual Positive (Negative) Excess (Deficiency) of Funds Available Over/(Under) Expenditures Adult Literacy State Approprlatlon State General Funds Federal Funds Other Funds Total Adult Literacy Economic Development Other Funds Technical Education State Appropriation State General Funds Federal Funds Other Funds Total Technical Educat~on Budget Unlt Totals CENTRAL GEORGIA TECHNICAL COLLEGE STATEMENT OF CHANGES TO FUND BALANCE BY PROGRAM AND FUNDING SOURCE YEAR ENDEDJUNE 30,2011 Beginning Fund Balance/(Deficitl July 1 Fund Balance Carried Over from Prior Period as Funds Ava~lable Retum of Fiscal year 2010 Surplus Prior Period Adjustments Other Adjustments Early Return Fiscal Year 2 0 1 1 Surplus Excess (Defic~ency) of Funds Available Over/(Under) Expenditures E n d ~ n gFund Balance/(Deficit) June 30 Analrjis of Ending Fund Balance Resewed Surplus/(Def~cit) Total Summary of EndingFund Balance ReSeNed Federal F~nanciaAl ss~stance Sales and Services Llve Work Projects Prior Year Local Funds Technology Fees Tu~tion Unreserved Surplus Total Ending Fund Balance -June 30