Management report, Middle Georgia Technical Institute, Warner Robins, Georgia, an organizational unit of the state of Georgia, year ended June 30, 1998

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MANAGEMENT REPORT MIDDLE GEORGIA TECHNICAL INSTITUTE
WARNER ROBINS, GEORGIA AN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA
YEAR ENDED JUNE 30, 1998 --------------------_./
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASH I NGTON STREET
ATLANTA, GEORGIA 30334-8400

MIDDLE GEORGIA TECHNICAL INSTITUTE MANAGEMENT REPORT -TABLEOFCONTENTS-

LETTER OF TRANSMITTAL

SECTION I

SELECTED FINANCIAL INFORMATION

EXHIBITS

A ANALYSIS OF CHANGES IN FUND BALANCE

BUDGET FUND

1

B SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES

COMPARED TO BUDGET

BUDGET FUND

"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

2

SECTIONll AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
September 3, 1998

Honorable Zell Miller, 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 Billy Edenfield, President Middle Georgia Technical Institute
Ladies and Gentlemen:
As part of our audit of the statutory basis financial statements of the State of Georgia presented in the Report ofthe State Auditor, the general purpose financial statements of the State of Georgia presented in the State ofGeorgia Comprehensive Annual Financial Report, and the issuance of a Statewide Single Audit Report pursuant to the Single Audit Act Amendments, as of and for the year ended June 30, 1998, we have performed certain audit procedures at Middle Georgia Technical Institute. Accordingly, the financial statements and compliance activities ofMiddle Georgia Technical Institute were examined to the extent considered necessary in order to express an opinion as to the fair presentation of the fmancial statements contained in the foregoing documents and to issue reports on compliance and internal control as required by the Single Audit Act Amendments of 1996.
This Management Report contains information pertinent to the fmancial and compliance activities of Middle Georgia Technical Institute as of and for the year ended June 30, 1998. The particular information provided is enumerated in the Table of Contents.
This report is intended solely for the use of management of Middle Georgia Technical Institute. However, this report is a matter of public record and its distribution is not limited.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:jb

SECTION I SELECTED FINANCIAL INFORMATION

MIDDLE GEORGIA TECHNICAL INSTITUTE ANALYSIS OF CHANGES IN FUND BALANCE
BUDGET FUND YEAR ENDED JUNE 30, 1998

EXHIBIT "A"

FUND BALANCE - JULY 1
Reserved Surplus
ADDITIONS
Adjustments to Prior Year's Accounts Payable Excess of Funds Available over Expenditures
Exhibit "B"
DEDUCTIONS
Unreserved Fund Balance (Surplus) Returned to Georgia Department of Technical and Adult Education - Administrative Central Office Year Ended June 30, 1997
Adjustments to Prior Year's Accounts Receivable Refunds to Grantors
Georgia Department of Technical and Adult Education - Administrative Central Office Federal Financial Assistance
Reserved Fund Balance Carried Over from Prior Year as Funds Available

"A" DEPARTMENT OF
TECHNICAL AND ADULT EDUCATION

liB" LOTTERY FOR
EDUCATION

TOTAL

$

216,488.51

6.17 $

$

216,494.68 $

$ 0.00
0.00 $

216,488.51 6.17
216,494.68

$

6,623.00 $

3,691.67 $

10,314.67

171,408.45

171,408.45

$

178,031.45 $

3,691.67 $ 181,723.12

$

6.17 $

4,694.55

161.78

166,036.01

$

170,898.51 $

0.00 $

6.17 4,694.55

0.00 $

161.78 166,036.01 170,898.51

FUND BALANCE - JUNE 30

$

223,627.62 $

3,691.67 $ 227,319.29

SUMMARY OF FUND BALANCE
Reserved Federal Financial Assistance Inventories Live Work Projects Prior Year Local Funds
Surplus

$

2,512.54

$

2,512.54

50,452.50

50,452.50

39,067.63

39,067.63

131,577.58

131,577.58

17.37 $

3,691.67

3,709.04

$

223,627.62 $.

3,691.67 $ 227,319.29

- 1-

MIDDLE GEORGIA TECHNICAL INSTITUTE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"A" DEPARTMENT OF TECHNICAL AND ADULT EDUCATION YEAR ENDED JUNE 30, 1998

EXHIBIT"B"

FUNDS AVAILABLE REVENUES
State Appropriations Federal Revenues Other Revenues Retained
CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance

BUDGET

ACTUAL

VARIANCE FAVORABLE (UNFAVORABLE)

$ 4,773,710.00 $ 4,773,710.00 $

1,150,812.00

1,057,161.04

2,185,325.00

1,925,673.05

$ 8,109,847.00 $ 7,756,544.09 $

0,00 -93,650.96 -259,651.95
-353,302.91

0.00

166,036.01

166,036.01

$ 8,109,847.00 $ 7,922,580.10 $ _ _---:-1:..::.87.:.2,=.;26:.,:6:.:.,:.9:..=...0

EXPENDITURES
Personal Services-Institutions Operating Expenses-Institutions Adult Literacy Grants

$ 4,926,410.00 $ 4,762,814.61 $

2,468,114.00

2,273,034.04

715,323.00

715,323.00

163,595.39 195,079.96
0.00

$ 8,109,847,00 $ 7,751,171,65 $ _ _-=3:..::.5~8,.::.:67:....:5:.:.,:.3:..=...5

Excess of Funds Available over Expenditures

$ 171,408.45 $===1,;.;7",;1.:.::,4;,;;0,;;,8.::;,4;;;,,5

-2-

SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

MIDDLE GEORGIA TECHNICAL INSTITUTE AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1998

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-836-97-01

Partially Resolved - See Corrective Action/Responses

CORRECTIVE ACTIONIRESPONSES

EMPLOYEE COMPENSATION Salary Overpayment Questioned Cost: $1,224.00 Finding Control Number: FS-836-97-01

During the year under review, Middle Georgia Technical Institute implemented the procedures necessary to strengthen internal controls to ensure no reoccurrence ofthis problem. We have made repeated attempts to secure reimbursement of the overpayment; however, the former employee refuses to refund the money, although they acknowledge the overpayment occurred. The Institute is currently in the process of turning the account over to a collection agency in an attempt to secure reimbursement.

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

836-95-04

Further Action Not Warranted - See Corrective Action/Responses

CORRECTIVE ACTIONIRESPONSES

ALLOWABLE COSTS/COSTS PRINCIPLES Time and Attendance Records Not Utilized Job Training Partnership Act (CFDA No. 17.250) Vocational Education - Basic Grants to States (CFDA No. 84.048) Questioned Cost: $13,951.40 Finding Control Questioned: 836-95-04

During the fiscal years ending June 30, 1996 and 1997, Middle Georgia Technical Institute provided the grantor agencies with time and attendance records that supported the salary charges. We were never contacted about the fmding or received any response to our records and corrective action implemented from the U. S. Department of Education.