MIDDLE GEORGU TECHNICAL COLLEGE WARNER ROBINS, GEORGIA INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED- UPON PROCEDURES FOR FISCAL YEAR ENDED JUNE 30,2010 Georgia Department of Aud ":sand A c c o u n.t, s i* I 'X i s d W.&iton I state' Auditor MIDDLE GEORGIA TECHNICAL COLLEGE - TABLE OF CONTENTS - INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES EXHIBITS A SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT B STATEMENT OF PROGRAM REVENUES AND EXPENDITURES BY FUNDING SOURCE COMPARED TO BUDGET Page RUSSELLW. HINTON STATE AUDITOR (404) 656-2174 DEPARTMEONFTAUDITASND ACCOUNTS 270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 November 12,2010 Members of the State Board of Technical and Adult Education Members of the Local Board of Directors and Honorable Ivan H. Allen, President Middle Georgia Technical College lnde~endenAt ccountant's Report on ADDIv~~AEg!reed-Upon Procedures Ladies and Gentlemen: We have performed the procedures enumerated below, which were agreed to by the Technical 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 Technical College for inclusion in the State of Georgia's Comprehensive Annual Financial Report(CAFR) and Single Audit Report; and to assist you in assessingthe accuracy of budget basis information provided in the Summary Budget Comparison and Surplus Analysis Report and Statement of Program Revenues and Expenditures by Funding Source Compared to Budget, which is attached as Exhibits A and B, respectively. Middle Georgia Technical College's management is responsible for the financial information reported to the System Office of the Technical College System of Georgia. This agreed-upon 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 Technical College's general ledger. Payables related to benefits totaling $10,301.56 were misclassified in Salaries Payable rather than Accounts Payable. 2. Obtain the Technical 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 Technical College's accounting records. We did not note any exceptions as a result of our procedures. 3. Obtain the Technical 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 Technical 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 following note disclosures were not properly reported: (1)The Bank Balances amount reflected in the cash note did not include the correct account balance totals, and (2) the entity included a lease that was incurred after June 30, 2010, in the lease obligation note. Adjustments were made t o correct these errors. 5. Review the Technical College's year end GAAP basis journal entries. Obtain documentation for GAAP journal entries and confirm that the entries were posted to the Technical College's annual financial statement worksheets. We did not note any exceptions as a result of our procedures. 6. Confirm that State Appropriation revenues, receivables and remittances of prior year surplus balances have been properly recorded in the Technical 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 2010. Confirm that these write-off requests have been approved by the State Accounting Officer and have been posted to the Technical College's financial statements. We did not note any exceptions as a result of our procedures. 8. Verify that the listing of salaries, travel, and professional services reported to the Department of Audits is in accordance with O.C.G.A. 50-6-27 reconciles to amounts recorded in the Technical 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) and Statement o f Program Revenues and Expenditures by FundingSource Comparedto Budget(Exhibit B). Confirm that budget information presented in these statements supports activity reported in the Technical 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 Technical College on the Summary Budget Comparison and Surplus Anaksis ReporS (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 Technical 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 Technical College's financial records. We did not note any exceptions as a result of our procedures. 12. Review the Schedule of Expenditures of Federal Awards information submitted by the Technical College for inclusion in the Statewide Single Audit. Confirm that the information is properly presented and supported by the Technical 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 t o 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 t o be and should not be used by anyone other than these specified parties. Respectfully submitted, RUS+II W. Hinton, CPA, CGFM State Auditor EXHIBITS MIDDLE GEORGIA TECHNICAL COLLEGE SUMMARY BUDGET COMPARISON AND SURPLUS ANALYSIS REPORT YEAR ENDED JUNE 30.2010 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 boenditures FUND BALANCE JULY 1 Reserved ADJUSTMENTS Prior Year Payables/Expenditures Refunds to Grantors Federal Financial Assistance Returned to Technical College system of Georg~a Year Ended June 3 0 , 2 0 0 9 Prior Year Reserved Fund Balance Included in Funds Available FUND BALANCEJUNE 3 0 SUMMARY OF FUND BALANCE Resewed Departmental Sales and Services Federal Financial Ass~st-dnCe Live Work Projects Uncollectible Accounts Receivable Inventories Total Fund Balance BUDGET ACTUAL EXHIBIT "A" VARIANCE - FAVORABLE (UNFAVORABLE) Adult Literey State Approprlatlon state General Funds Federal Funds Other Funds Total Adult Lterilw Economic D s w l o o m o n t Other Funds TwhnlWII Eduat~on State Appropr~at~on State General Funds Federal Fundr Amerlcan Recovery and Re~nveflrnenAt ct of 2 W 9 FederalStabll#zatlonFunds Other Federal Funds Other Funds - Grand Tot% All Programs MIDDLE GEORGIATECHNICALCOLLEGE STATEMENTOF PROGRAM RNENUESAND EXPENDITURES BY FUNDING SOURCECOMPARED TO BUDGET YEAR ENDEDJUNE 30 2010 Or(g(na1 Appropnbtlon Final Buwt Current Year Revenues Funds Available Comparedt o Budget Prlor Year Carryaver Total Funds Auallable variance Porlt~ve (Negative) Expendbres Comparedt o Budget Vilrlanse Posnlve Actual (Negaove) Aotual Funds Aua~lable Over/(Undcr) Expendlwrer Prlor Period Aqurvnents Other Adjustments Program Fund Balances Total Program Fund Balances Fund ---- Transfers Reserve Surplus Balance Unexpendable Reserves Uncolledlble Acmunts Rece~vable lnventarles